Segment Information (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Reconciliation of Segment EBITDA to Income before Income Taxes

The following tables set forth the financial information by operating segment, including a reconciliation of Segment EBITDA to income before income taxes (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Revenue:
U.S. Facilities	$	509,383		$	488,626		$	1,507,156		$	1,432,501
U.K. Facilities		267,868			272,290			820,074			836,394
Corporate and Other		—			—			—			—
	$	777,251		$	760,916		$	2,327,230		$	2,268,895
Segment EBITDA (1):
U.S. Facilities	$	127,087		$	128,537		$	381,491		$	375,663
U.K. Facilities		40,726			40,735			126,617			146,081
Corporate and Other		(21,175	)		(20,348	)		(66,581	)		(62,075	)
	$	146,638		$	148,924		$	441,527		$	459,669

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Segment EBITDA (1)	$	146,638		$	148,924		$	441,527		$	459,669
Less:
Equity-based compensation expense		(4,039	)		(5,225	)		(14,322	)		(19,273	)
Transaction-related expenses		(5,775	)		(2,353	)		(15,308	)		(10,008	)
Debt extinguishment costs		—			—			—			(940	)
Interest expense, net		(46,644	)		(46,651	)		(143,384	)		(137,706	)
Depreciation and amortization		(40,620	)		(39,659	)		(122,277	)		(119,360	)
Income before income taxes	$	49,560		$	55,036		$	146,236		$	172,382

Summary of Assets by Operating Segment

	September 30, 2019		December 31, 2018
Assets (2):
U.S. Facilities	$	4,032,623	$	3,779,040
U.K. Facilities		2,472,274		2,175,809
Corporate and Other		223,228		217,655
	$	6,728,125	$	6,172,504

(1)

Segment EBITDA is defined as income before provision for income taxes, equity-based compensation expense, transaction-related expenses, debt extinguishment costs, interest expense and depreciation and amortization. The Company uses Segment EBITDA as an analytical indicator to measure the performance of the Company’s segments and to develop strategic objectives and operating plans for those segments. Segment EBITDA is commonly used as an analytical indicator within the health care industry, and also serves as a measure of leverage capacity and debt service ability. Segment EBITDA should not be considered as a measure of financial performance under GAAP, and the items excluded from Segment EBITDA are significant components in understanding and assessing financial performance. Because Segment EBITDA is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, Segment EBITDA, as presented, may not be comparable to other similarly titled measures of other companies.

(2)

Assets include property and equipment for the U.S. Facilities of $1.4 billion, U.K. Facilities of $1.6 billion and corporate and other of $57.2 million at September 30, 2019. Assets include property and equipment for the U.S. Facilities of $1.4 billion, U.K. Facilities of $1.7 billion and corporate and other of $44.9 million at December 31, 2018.

Goodwill [Member]

Summary of Assets by Operating Segment

	U.S. Facilities		U.K. Facilities			Corporate and Other		Consolidated
Goodwill:
Balance at January 1, 2019	$	2,044,837	$	351,575		$	—	$	2,396,412
Increase from 2019 acquisitions		36,567		—			—		36,567
Increase from contribution of redeemable noncontrolling interests		3,300		—			—		3,300
Foreign currency translation loss		—		(12,038	)		—		(12,038	)
Balance at September 30, 2019	$	2,084,704	$	339,537		$	—	$	2,424,241