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SEGMENTS | 12 Months Ended
--- | ---
Dec. 31, 2019
Segment Reporting [Abstract] |
SEGMENTS |
20. | SEGMENTS
The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report asset information by segment because that information is not used to evaluate Company performance or allocate resources between segments. Below is a breakdown of select financial information by reportable operating segment:
|  | Year Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Revenues |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 2,236,237 |  |  | $ | 2,551,719 |  |  | $ | 2,594,246 |
International |  |  | 769,436 |  |  |  | 682,778 |  |  |  | 702,196 |
Eliminations |  |  | (14,126 | ) |  |  | (12,762 | ) |  |  | (13,343 | )
Total revenues |  | $ | 2,991,547 |  |  | $ | 3,221,735 |  |  | $ | 3,283,099 |
Adjusted EBITDA (1) |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 558,182 |  |  | $ | 648,576 |  |  | $ | 615,161 |
International |  |  | 165,576 |  |  |  | 132,941 |  |  |  | 129,884 |
Total Adjusted EBITDA |  | $ | 723,758 |  |  | $ | 781,517 |  |  | $ | 745,045 |
Capital expenditures |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 321,040 |  |  | $ | 270,870 |  |  | $ | 230,561 |
International |  |  | 59,822 |  |  |  | 75,203 |  |  |  | 73,066 |
Total capital expenditures |  | $ | 380,862 |  |  | $ | 346,073 |  |  | $ | 303,627 |
| (1) | Distributions from equity investees are reported entirely within the U.S. operating segment.
The following table sets forth a reconciliation of net income to Adjusted EBITDA:
|  | Year Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Net income |  | $ | 266,019 |  |  | $ | 215,305 |  |  | $ | 193,848 |
Add (deduct): |  |  |  |  |  |  |  |  |  |  |  |
Income taxes |  |  | 79,358 |  |  |  | 95,429 |  |  |  | 79,912 |
Interest expense (1)(2) |  |  | 105,918 |  |  |  | 109,994 |  |  |  | 99,941 |
Loss on debt amendments and refinancing |  |  | 521 |  |  |  | 1,484 |  |  |  | — |
Other income (3) |  |  | (43,127 | ) |  |  | (18,472 | ) |  |  | (22,441 | )
Distributions from DCIP (4) |  |  | 5,864 |  |  |  | 5,799 |  |  |  | 23,696 |
Other cash distributions from equity investees (5) |  |  | 20,109 |  |  |  | 24,344 |  |  |  | 29,670 |
Depreciation and amortization (2) |  |  | 237,513 |  |  |  | 261,162 |  |  |  | 261,155 |
Impairment of long-lived assets |  |  | 15,084 |  |  |  | 32,372 |  |  |  | 57,001 |
Loss on disposal of assets and other |  |  | 22,812 |  |  |  | 38,702 |  |  |  | 12,008 |
Non-cash rent expense (6) |  |  | — |  |  |  | — |  |  |  | (4,360 | )
Deferred lease expenses (2) |  |  | (1,268 | ) |  |  | (1,320 | ) |  |  | — |
Amortization of long-term prepaid rents (2) |  |  | 2,274 |  |  |  | 2,382 |  |  |  | — |
Share based awards compensation expense |  |  | 12,681 |  |  |  | 14,336 |  |  |  | 14,615 |
Adjusted EBITDA (2) |  | $ | 723,758 |  |  | $ | 781,517 |  |  | $ | 745,045 |
| (1) | Includes amortization of debt issue costs.
| (2) | Amounts for the year ended December 31, 2019 were impacted by the adoption of ASC Topic 842 and the resulting change in the classification of certain of the Company’s leases. See Note 3 for further discussion.
| (3) | Includes interest income, foreign currency exchange gain (loss), interest expense – NCM and equity in income of affiliates and excludes distributions from NCM.
| (4) | See discussion of cash distributions from DCIP, which were recorded as a reduction of the Company’s investment in DCIP, at Note 8. These distributions are reported entirely within the U.S. operating segment.
| (5) | Includes cash distributions received from equity investees, other than those from DCIP noted above, that were recorded as a reduction of the respective investment balances (see Notes 7 and 8). These distributions are reported entirely within the U.S. operating segment.
| (6) | The adoption of ASC Topic 842 impacted how the Company amortizes lease related assets and liabilities such as deferred lease expenses, favorable and unfavorable lease intangible assets, long-term prepaid rents and deferred lease incentives. Beginning January 1, 2019, these items are amortized to facility lease expense for theatre operating leases and utilities and other for equipment operating leases. See Note 3 for discussion of the impact of ASC Topic 842.
Financial Information About Geographic Area Below is a breakdown of select financial information by geographic area:
|  | Year Ended December 31, |
|  | 2017 |  |  | 2018 |  |  | 2019 |
Revenues |  |  |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 2,236,237 |  |  | $ | 2,551,719 |  |  | $ | 2,594,246 |
Brazil |  |  | 341,485 |  |  |  | 283,009 |  |  |  | 302,074 |
Other international countries |  |  | 427,951 |  |  |  | 399,769 |  |  |  | 400,122 |
Eliminations |  |  | (14,126 | ) |  |  | (12,762 | ) |  |  | (13,343 | )
Total |  | $ | 2,991,547 |  |  | $ | 3,221,735 |  |  | $ | 3,283,099 |
|  | December 31, 2018 |  |  | December 31, 2019 |
Theatre Properties and Equipment-net |  |  |  |  |  |  |  |
U.S. |  | $ | 1,479,603 |  |  | $ | 1,436,275 |
Brazil |  |  | 140,570 |  |  |  | 118,367 |
Other international countries |  |  | 212,960 |  |  |  | 180,605 |
Total |  | $ | 1,833,133 |  |  | $ | 1,735,247 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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