Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

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,
	2020			2019			2020			2019
Revenue:
U.S. Facilities	$	547,961		$	509,383		$	1,548,653		$	1,507,156
U.K. Facilities		285,343			267,868			817,772			820,074
Corporate and Other		—			—			—			—
	$	833,304		$	777,251		$	2,366,425		$	2,327,230
Segment EBITDA (1):
U.S. Facilities	$	138,401		$	127,087		$	393,356		$	381,491
U.K. Facilities		43,388			40,726			111,195			126,617
Corporate and Other		(22,384	)		(21,175	)		(67,876	)		(66,581	)
	$	159,405		$	146,638		$	436,675		$	441,527

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Segment EBITDA (1)	$	159,405		$	146,638		$	436,675		$	441,527
Less:
Equity-based compensation expense		(5,471	)		(4,039	)		(16,258	)		(14,322	)
Transaction-related expenses		(8,503	)		(5,775	)		(17,293	)		(15,308	)
Loss on impairment		(20,239	)		—			(20,239	)		—
Debt extinguishment costs		—			—			(3,271	)		—
Interest expense, net		(37,553	)		(46,644	)		(119,064	)		(143,384	)
Depreciation and amortization		(42,912	)		(40,620	)		(126,037	)		(122,277	)
Income before income taxes	$	44,727		$	49,560		$	134,513		$	146,236

Summary of Assets by Operating Segment

	September 30, 2020		December 31, 2019
Assets (2):
U.S. Facilities	$	4,166,001	$	4,037,968
U.K. Facilities		2,521,294		2,610,357
Corporate and Other		417,850		230,817
	$	7,105,145	$	6,879,142

(1)

Segment EBITDA is defined as income before provision for income taxes, equity-based compensation expense, loss on impairment, debt extinguishment costs, 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 $1.7 billion and corporate and other of $51.3 million at September 30, 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.

Goodwill [Member]

Summary of Assets by Operating Segment

	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
Increase from contribution of redeemable noncontrolling interests		20,300			—			—		20,300
Prior period purchase price adjustments		(40	)		—			—		(40	)
Foreign currency translation loss		—			(8,669	)		—		(8,669	)
Balance at September 30, 2020
Goodwill		2,105,364			681,233			—		2,786,597
Accumulated impairment loss		—			(325,875	)		—		(325,875	)
Net goodwill at September 30, 2020	$	2,105,364		$	355,358		$	—	$	2,460,722