Segment Information

6 Months Ended

Jun. 30, 2019

Our six reportable operating segments as of December 31, 2018 are described in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report and are as follows:


•	North American Records and Information Management Business


•	North American Data Management Business


•	Western European Business


•	Other International Business


•	Global Data Center Business


•	Corporate and Other Business

There have been no changes made to our reportable operating segments since December 31, 2018, other than the impact of the Consumer Storage Transaction (as defined in Note 9). Prior to the Consumer Storage Transaction, our consumer storage business was a component of our Corporate and Other Business Segment. The previously reported segment information has been restated to conform to the current presentation and reflects the changes to our reportable operating segments that occurred in fourth quarter of 2018 as described in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report. The operations associated with acquisitions completed during the first six months of 2019 have been incorporated into our existing reportable operating segments.

An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements is as follows:



	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
For the Three Months Ended June 30, 2019
Total Revenues	$	539,273	$	96,415	$	127,327	$	199,823	$	62,291	$	41,778		$	1,066,907
Storage Rental	313,355		66,750		78,554		128,898		60,582		21,149			669,288
Service	225,918		29,665		48,773		70,925		1,709		20,629			397,619
Depreciation and Amortization	62,691		10,100		14,328		30,760		32,671		13,781			164,331
Depreciation	46,655		7,818		10,476		17,833		19,027		11,913			113,722
Amortization	16,036		2,282		3,852		12,927		13,644		1,868			50,609
Adjusted EBITDA	245,585		53,068		44,163		58,749		27,641		(78,264		)	350,942
Expenditures for Segment Assets	46,545		5,254		24,334		18,829		102,477		12,805			210,244
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	28,596		5,254		22,724		11,955		101,032		12,805			182,366
Cash Paid for Acquisitions, Net of Cash Acquired	—		—		366		4,862		—		—			5,228
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs and third-party commissions	17,949		—		1,244		2,012		1,445		—			22,650
For the Three Months Ended June 30, 2018
Total Revenues	$	539,080	$	100,031	$	133,440	$	207,527	$	54,895	$	25,850		$	1,060,823
Storage Rental	305,895		68,808		82,439		129,611		51,945		16,741			655,439
Service	233,185		31,223		51,001		77,916		2,950		9,109			405,384
Depreciation and Amortization	60,970		9,538		17,500		30,364		22,503		15,345			156,220
Depreciation	48,252		7,217		11,821		18,199		13,120		12,892			111,501
Amortization	12,718		2,321		5,679		12,165		9,383		2,453			44,719
Adjusted EBITDA	244,861		55,280		46,594		60,452		24,901		(64,533		)	367,555
Expenditures for Segment Assets	41,364		3,643		27,559		30,287		265,173		11,052			379,078
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	25,122		3,643		25,096		13,921		43,162		11,052			121,996
Cash Paid for Acquisitions, Net of Cash Acquired	—		—		—		16,188		221,707		—			237,895
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	16,242		—		2,463		178		304		—			19,187



	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
As of and for the Six Months Ended June 30, 2019
Total Revenues	$	1,066,653	$	193,162	$	256,080	$	400,779	$	123,827	$	80,269		$	2,120,770
Storage Rental	620,341		133,322		159,249		258,371		120,300		40,679			1,332,262
Service	446,312		59,840		96,831		142,408		3,527		39,590			788,508
Depreciation and Amortization	122,693		20,302		29,585		61,359		64,303		28,572			326,814
Depreciation	92,407		15,831		21,423		36,051		38,040		24,581			228,333
Amortization	30,286		4,471		8,162		25,308		26,263		3,991			98,481
Adjusted EBITDA	469,268		103,620		83,372		116,873		53,652		(151,337		)	675,448
Total Assets (1)	5,840,023		877,777		1,406,937		2,703,347		2,330,535		562,363			13,720,982
Expenditures for Segment Assets	102,810		10,886		54,435		50,083		256,182		27,948			502,344
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	57,284		10,886		24,840		27,104		222,589		24,428			367,131
Cash Paid for Acquisitions, Net of Cash Acquired	9,876		—		11,850		19,405		—		3,520			44,651
Acquisitions of Customer Relationships and Customer Inducements and Contract Fulfillment Costs and third-party commissions	35,650		—		17,745		3,574		33,593		—			90,562
As of and for the Six Months Ended June 30, 2018
Total Revenues	$	1,065,923	$	199,995	$	267,515	$	418,294	$	101,498	$	50,056		$	2,103,281
Storage Rental	610,714		138,054		166,391		261,358		97,440		32,631			1,306,588
Service	455,209		61,941		101,124		156,936		4,058		17,425			796,693
Depreciation and Amortization	123,722		19,642		35,056		62,237		44,771		31,370			316,798
Depreciation	97,390		15,240		24,579		37,263		24,500		25,961			224,933
Amortization	26,332		4,402		10,477		24,974		20,271		5,409			91,865
Adjusted EBITDA	470,599		109,132		90,560		121,199		45,691		(134,051		)	703,130
Total Assets (1)	5,010,186		829,682		1,344,699		2,247,071		1,909,088		476,433			11,817,159
Expenditures for Segment Assets	84,545		10,496		35,039		62,447		1,703,185		25,991			1,921,703
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	54,992		10,496		31,143		39,063		56,273		25,634			217,601
Cash Paid for Acquisitions, Net of Cash Acquired	1,551		—		—		19,396		1,645,922		—			1,666,869
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	28,002		—		3,896		3,988		990		357			37,233

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(1)	Excludes all intercompany receivables or payables and investment in subsidiary balances. Total assets as of June 30, 2019 reflects the adoption of ASU 2016-02.

The accounting policies of the reportable operating segments are the same as those described in Note 2 and in Note 2 to Notes to Consolidated Financial Statements included in our Annual Report. Adjusted EBITDA for each segment is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes, depreciation and amortization, and also excludes certain items that we believe are not indicative of our core operating results, specifically: (i) (gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (ii) intangible impairments; (iii) other expense (income), net (which includes foreign currency transaction (gains) losses, net); and (iv) Significant Acquisition Costs (as defined below). Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments.

A reconciliation of Adjusted EBITDA to income (loss) from continuing operations on a consolidated basis for the three and six months ended June 30, 2019 and 2018 is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Adjusted EBITDA	$	350,942		$	367,555		$	675,448		$	703,130
(Add)/Deduct:
Provision (Benefit) for Income Taxes	10,646			26,057			21,199			25,934
Other (Income) Expense, Net	(15,192		)	(19,056		)	18			1,095
Interest Expense, Net	105,314			102,196			207,750			199,898
(Gain) loss on disposal/write-down of property, plant and equipment, net	(8,405		)	(546		)	(7,803		)	(1,676		)
Depreciation and Amortization	164,331			156,220			326,814			316,798
Significant Acquisition Costs(1)	1,901			10,421			4,647			29,429
Income (Loss) from Continuing Operations	$	92,347		$	92,263		$	122,823		$	131,652

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(1)	As defined in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report.

Information as to our revenues by product and service lines by segment for the three and six months ended June 30, 2019 and 2018 are as follows:



	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business		Total Consolidated
For the Three Months Ended June 30, 2019
Records Management(1)	$	442,785	$	—	$	109,369	$	172,433	$	—	$	26,195	$	750,782
Data Management(1)	—		93,152		16,908		18,787		—		15,583		144,430
Information Destruction(1)(2)	96,488		3,263		1,050		8,603		—		—		109,404
Data Center	—		—		—		—		62,291		—		62,291
Total Revenues	$	539,273	$	96,415	$	127,327	$	199,823	$	62,291	$	41,778	$	1,066,907
For the Three Months Ended June 30, 2018
Records Management(1)	$	441,401	$	—	$	113,925	$	179,194	$	—	$	11,801	$	746,321
Data Management(1)	—		97,768		19,393		19,227		—		14,049		150,437
Information Destruction(1)(2)	97,679		2,263		122		9,106		—		—		109,170
Data Center	—		—		—		—		54,895		—		54,895
Total Revenues	$	539,080	$	100,031	$	133,440	$	207,527	$	54,895	$	25,850	$	1,060,823
For the Six Months Ended June 30, 2019
Records Management(1)	$	870,152	$	—	$	218,076	$	345,410	$	—	$	50,540	$	1,484,178
Data Management(1)	—		187,141		36,794		38,014		—		29,729		291,678
Information Destruction(1)(2)	196,501		6,021		1,210		17,355		—		—		221,087
Data Center	—		—		—		—		123,827		—		123,827
Total Revenues	$	1,066,653	$	193,162	$	256,080	$	400,779	$	123,827	$	80,269	$	2,120,770
For the Six Months Ended June 30, 2018
Records Management(1)	$	876,403	$	—	$	227,684	$	360,524	$	—	$	22,205	$	1,486,816
Data Management(1)	—		195,362		39,612		39,705		—		27,851		302,530
Information Destruction(1)(2)	189,520		4,633		219		18,065		—		—		212,437
Data Center	—		—		—		—		101,498		—		101,498
Total Revenues	$	1,065,923	$	199,995	$	267,515	$	418,294	$	101,498	$	50,056	$	2,103,281

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(1)	Each of the offerings within our product and service lines has a component of revenue that is storage rental related and a component that is service revenues, except for information destruction, which does not have a storage rental component.

(2)

Includes secure shredding services.