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Segment Information | 3 Months Ended
--- | ---
Mar. 31, 2020
Segment Reporting [Abstract] |
Segment Information |
1 8. | Segment Information
The Company operates in one line of business, which is operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As management reviews the operating results of its U.S. Facilities and its U.K. Facilities separately to assess performance and make decisions, the Company’s operating segments include our U.S. Facilities and U.K. Facilities. At March 31, 2020, the U.S. Facilities segment included 228 behavioral healthcare facilities with approximately 9,600 beds in 40 states and Puerto Rico, and the U.K. Facilities segment included 360 behavioral healthcare facilities with approximately 8,700 beds in the U.K. 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 March 31, |
|  | 2020 |  |  | 2019 |
Revenue: |  |  |  |  |  |  |  |
U.S. Facilities |  | $ | 509,217 |  |  | $ | 487,960 |
U.K. Facilities |  |  | 273,593 |  |  |  | 272,657 |
Corporate and Other |  |  | — |  |  |  | — |
|  | $ | 782,810 |  |  | $ | 760,617 |
Segment EBITDA (1): |  |  |  |  |  |  |  |
U.S. Facilities |  | $ | 120,074 |  |  | $ | 119,008 |
U.K. Facilities |  |  | 36,168 |  |  |  | 40,056 |
Corporate and Other |  |  | (23,393 | ) |  |  | (23,061 | )
|  | $ | 132,849 |  |  | $ | 136,003 |
|  | Three Months Ended March 31, |
|  | 2020 |  |  | 2019 |
Segment EBITDA (1) |  | $ | 132,849 |  |  | $ | 136,003 |
Less: |  |  |  |  |  |  |  |
Equity-based compensation expense |  |  | (4,979 | ) |  |  | (6,101 | )
Transaction-related expenses |  |  | (3,549 | ) |  |  | (4,321 | )
Interest expense, net |  |  | (42,785 | ) |  |  | (48,130 | )
Depreciation and amortization |  |  | (41,680 | ) |  |  | (40,580 | )
Income before income taxes |  | $ | 39,856 |  |  | $ | 36,871 |
|  | U.S. Facilities |  |  | U.K. Facilities |  |  | Corporate and Other |  |  | Consolidated |
Goodwill: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 2,085,104 |  |  | $ | 689,902 |  |  | $ | — |  |  | $ | 2,775,006 |
Accumulated impairment loss |  |  | — |  |  |  | (325,875 | ) |  |  | — |  |  |  | (325,875 | )
Net goodwill at January 1, 2020 |  |  | 2,085,104 |  |  |  | 364,027 |  |  |  | — |  |  |  | 2,449,131 |
Prior period purchase price adjustments |  |  | (13 | ) |  |  | — |  |  |  | — |  |  |  | (13 | )
Foreign currency translation gain |  |  | — |  |  |  | (22,418 | ) |  |  | — |  |  |  | (22,418 | )
Balance at March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 2,085,091 |  |  |  | 667,484 |  |  |  | — |  |  |  | 2,752,575 |
Accumulated impairment loss |  |  | — |  |  |  | (325,875 | ) |  |  | — |  |  |  | (325,875 | )
Net goodwill at March 31, 2020 |  | $ | 2,085,091 |  |  | $ | 341,609 |  |  | $ | — |  |  | $ | 2,426,700 |
|  | March 31, 2020 |  |  | December 31, 2019 |
Assets (2): |  |  |  |  |  |  |  |
U.S. Facilities |  | $ | 4,083,825 |  |  | $ | 4,037,968 |
U.K. Facilities |  |  | 2,443,498 |  |  |  | 2,610,357 |
Corporate and Other |  |  | 190,672 |  |  |  | 230,817 |
|  | $ | 6,717,995 |  |  | $ | 6,879,142 |
(1) | Segment EBITDA is defined as income before provision for income taxes, equity-based compensation expense, transaction-related expenses, 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 $1.5 billion, U.K. Facilities of $1.6 billion and corporate and other of $57.3 million at March 31, 2020. 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 $50.9 million at December 31, 2019.

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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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