Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Segment Reportable Segments, by Segment

The following tables set forth certain information relating to our segments’ operations:



(amounts in thousands)	North America			Europe			Australasia			Total Operating Segments			Corporate and Unallocated Costs			Total Consolidated
Year Ended December 31, 2019
Total net revenues	$	2,535,810		$	1,178,589		$	585,341		$	4,299,740		$	—		$	4,299,740
Intersegment net revenues	(1,474		)	(148		)	(8,357		)	(9,979		)	—			(9,979		)
Net revenues from external customers	$	2,534,336		$	1,178,441		$	576,984		$	4,289,761		$	—		$	4,289,761
Depreciation and amortization	$	81,905		$	28,944		$	17,787		$	128,636		$	5,333		$	133,969
Impairment and restructuring charges	7,301			6,182			7,111			20,594			957			21,551
Adjusted EBITDA	267,335			116,193			74,484			458,012			(42,974		)	415,038
Capital expenditures	46,799			23,611			32,619			103,029			33,163			136,192
Segment assets	$	1,530,135		$	974,076		$	510,845		$	3,015,056		$	366,276		$	3,381,332
Year Ended December 31, 2018
Total net revenues	$	2,462,914		$	1,216,204		$	681,160		$	4,360,278		$	—		$	4,360,278
Intersegment net revenues	(1,281		)	(905		)	(11,245		)	(13,431		)	—			(13,431		)
Net revenues from external customers	$	2,461,633		$	1,215,299		$	669,915		$	4,346,847		$	—		$	4,346,847
Depreciation and amortization	$	71,945		$	31,132		$	17,730		$	120,807		$	4,293		$	125,100
Impairment and restructuring charges	4,933			6,111			7,170			18,214			(886		)	17,328
Adjusted EBITDA	279,526			122,810			90,885			493,221			(34,003		)	459,218
Capital expenditures	57,805			25,369			12,146			95,320			23,380			118,700
Segment assets	$	1,355,101		$	898,901		$	482,493		$	2,736,495		$	311,030		$	3,047,525
Year Ended December 31, 2017
Total net revenues	$	2,159,919		$	1,045,036		$	572,518		$	3,777,473		$	—		$	3,777,473
Intersegment net revenues	(2,021		)	(2,269		)	(9,434		)	(13,724		)	—			(13,724		)
Net revenues from external customers	$	2,157,898		$	1,042,767		$	563,084		$	3,763,749		$	—		$	3,763,749
Depreciation and amortization	$	66,990		$	27,979		$	13,248		$	108,217		$	3,056		$	111,273
Impairment and restructuring charges	8,471			3,592			(49		)	12,014			1,042			13,056
Adjusted EBITDA	273,192			131,200			74,386			478,778			(43,616		)	435,162
Capital expenditures	34,769			14,889			6,019			55,677			7,372			63,049
Segment assets	$	1,206,849		$	918,048		$	447,734		$	2,572,631		$	287,446		$	2,860,077

Reconciliation of Net Income to Adjusted EBITDA

Reconciliations of net income to Adjusted EBITDA are as follows:



	Years Ended December 31,
(amounts in thousands)	2019		2018			2017
Net income	$	62,971	$	141,907		$	8,122
Equity earnings of non-consolidated entities	—		(738		)	(3,639		)
Income tax expense	57,074		(10,058		)	137,818
Depreciation and amortization	133,969		125,100			111,273
Interest expense, net ⁽¹⁾	71,778		70,818			79,034
Impairment and restructuring charges⁽²⁾	22,748		17,328			13,057
Gain on previously held shares of equity investment	—		(20,767		)	—
Loss (gain) on sale of property and equipment	1,959		144			(299		)
Share-based compensation expense	13,315		15,052			19,785
Non-cash foreign exchange transaction/translation (income) loss	3,438		(1,267		)	(1,178		)
Other items⁽³⁾	47,482		117,546			47,000
Other non-cash items ⁽⁴⁾	304		3,859			526
Costs relating to debt restructuring and debt refinancing ⁽⁵⁾	—		294			23,663
Adjusted EBITDA	$	415,038	$	459,218		$	435,162


(1)	Interest expense for the year ended December 31, 2017 includes $6,097 related to the write-off of a portion of the unamortized debt issuance costs and original issue discount associated with the Term Loan Facility.

(2)

Impairment and restructuring charges consist of (i) impairment and restructuring charges that are included in our consolidated statements of operations plus (ii) additional charges relating to inventory and/or manufacturing of our products that are included in cost of sales in the accompanying consolidated statements of operations in the amount of $1,197, $0, and $1 for the years ended December 31, 2019, 2018, and 2017, respectively. For further explanation of impairment and restructuring charges that are included in our consolidated statements of operations, see Note 24 - Impairment and Restructuring Charges in our financial statements.

(3)

Other non-recurring items not core to ongoing business activity include: (i) in the year ended December 31, 2019 (1) $19,147 in facility closure and consolidation costs related to our facility footprint rationalization program, (2) $14,963 in acquisition and integration costs including $7,077 related to purchase price structured by the former owners as retention payments for key employees of a recent acquisition, (3) $12,860 in legal cost and professional fees relating primarily to litigation, (4) $(3,053) of realized gains on hedges of intercompany notes, (5) $1,998 in other miscellaneous costs, (6) $731 in equity compensation to employees in our Australasia region, and (7) $725 in costs related to the departure of former executives.; (ii) in the year ended December 31, 2018, (1) $76,500 in litigation contingency accruals, (2) $26,529 in legal and professional fees relating primarily to litigation, (3) $10,324 in acquisition and integration costs, (4) $(5,396) of realized gains on hedges of intercompany notes, (4) $3,856 in costs related to the departure of former executives, (5) $2,901 in entity consolidation and reorganization costs, (6) $2,347 in miscellaneous costs, and (7) $485 in stock compensation payroll taxes; (iii) in the year ended December 31, 2017, (1) $34,178 in legal costs, (2) $4,176 in realized loss on hedges relating to intercompany notes, (3) $3,484 in acquisition and integration costs, (4) $(2,247) gain on settlement of contract escrow, (5) $2,202 in secondary offering costs, (6) $754 in tax consulting fee, (7) $678 in legal entity consolidation costs, (8) $649 in stock compensation payroll taxes, and (9) $578 in facility ramp down cost.


(4)	Other non-cash items include: (i) derivative losses of $235 in the year ended December 31, 2019; (ii) charges of $3,740 for the fair value of inventory acquired as part of our Domoferm acquisitions in the year ended December 31, 2018; and (iii) charges of $439 for the fair value adjustment to the inventory acquired as part of our Mattiovi acquisition in the year ended December 31, 2017.

(5)

Included in the year ended December 31, 2017 is a loss on debt extinguishment of $23,262 associated with the refinancing of our term loan.

Net Revenues by Locality

Net revenues by locality are as follows for the years ended December 31,:



(amounts in thousands)	2019		2018		2017
Net revenues by location of external customer
Canada	$	187,095	$	201,134	$	219,877
U.S.	2,327,186		2,228,748		1,904,754
South America (including Mexico)	29,637		34,422		35,280
Europe	1,195,207		1,239,732		1,063,344
Australia	544,140		634,976		530,521
Africa and other	6,496		7,835		9,973
Total	$	4,289,761	$	4,346,847	$	3,763,749

Property, Plant and Equipment by Geographic Area

Geographic information regarding property, plant, and equipment which exceed 10% of consolidated property, plant, and equipment used in continuing operations is as follows for the years ended December 31,



(amounts in thousands)	2019		2018		2017
North America:
U.S.	$	485,278	$	459,506	$	402,338
Other	28,096		24,911		25,876
	513,374		484,417		428,214

Europe	181,390		181,038		153,492

Australasia:
Australia	115,335		113,922		118,568
Other	28,786		10,297		7,818
	144,121		124,219		126,386
Corporate:
U.S.	25,490		53,729		48,619
Total property and equipment, net	$	864,375	$	843,403	$	756,711