16. SEGMENT AND GEOGRAPHIC INFORMATION

The Company reports its financial performance in three reportable segments based on the geographical locations in which its casinos operate: the United States, Canada and Poland. Operating segments are aggregated within reportable segments based on their similar economic characteristics, types of customers, types of services and products provided, the regulatory environments in which they operate, and their management and reporting structure. The Company’s operations related to Century Casino Bath, its concession, management and consulting agreements and certain other corporate and management operations have not been identified as separate reportable segments; therefore, these operations are included in Corporate and Other in the following segment disclosures to reconcile to consolidated results. All intercompany transactions are eliminated in consolidation.

The table below provides information about the aggregation of the Company’s operating segments into reportable segments:


Reportable Segment	Operating Segment	Reporting Unit
United States	Colorado	Century Casino & Hotel - Central City
		Century Casino & Hotel - Cripple Creek
	West Virginia	Mountaineer Casino, Racetrack & Resort
	Missouri	Century Casino Cape Girardeau
		Century Casino Caruthersville
Canada	Edmonton	Century Casino & Hotel - Edmonton
		Century Casino St. Albert
		Century Mile Racetrack and Casino
	Calgary	Century Casino Calgary
		Century Downs Racetrack and Casino
		Century Bets! Inc.
Poland	Poland	Casinos Poland
Corporate and Other	Corporate and Other	Cruise Ships & Other
		Century Casino Bath
		Corporate Other

The Company’s chief operating decision maker is a management function comprised of two individuals. These two individuals are the Company’s Co-Chief Executive Officers. The Company’s chief operating decision makers and management utilize Adjusted EBITDA as a primary profit measure for its reportable segments. Adjusted EBITDA is a non-GAAP measure defined as net earnings (loss) attributable to Century Casinos, Inc. shareholders before interest expense (income), net, income taxes (benefit), depreciation, amortization, non-controlling interest (earnings) losses and transactions, pre-opening expenses, acquisition costs, non-cash stock-based compensation charges, asset impairment costs, (gain) loss on disposition of fixed assets, discontinued operations, (gain) loss on foreign currency transactions and other, gain on business combination and certain other one-time transactions. Expense related to the Master Lease is included in the interest expense (income), net line item. Intercompany transactions consisting primarily of management and royalty fees and interest, along with their related tax effects, are excluded from the presentation of net earnings (loss) and Adjusted EBITDA reported for each segment. Non-cash stock-based compensation expense is presented under Corporate and Other in the tables below as the expense is not allocated to reportable segments when reviewed by the Company’s chief operating decision makers.

The following tables provide summary information regarding the Company’s segments for the years ended December 31, 2019, 2018 and 2017:


	For the year ended December 31, 2019
Amounts in thousands		United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	49,998	$	80,650	$	81,894	$	5,685	$	218,227

Earnings (loss) before income taxes		$	7,843	$	11,242	$	6,814	$	(37,866)	$	(11,967)

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	5,825	$	6,669	$	3,466	$	(35,115)	$	(19,155)
Interest expense (income), net (2)			1,635		5,312		197		1,085		8,229
Income taxes (benefit)			2,018		3,278		1,617		(2,739)		4,174
Depreciation and amortization			2,330		4,539		3,064		910		10,843
Net earnings (loss) attributable to non-controlling interests			—		1,295		1,731		(12)		3,014
Non-cash stock-based compensation			—		—		—		1,303		1,303
(Gain) loss on foreign currency transactions, cost recovery income and other			—		(439)		(1,096)		16,709		15,174
Loss on disposition of fixed assets			17		20		413		345		795
Acquisition costs			—		—		—		5,366		5,366
Pre-opening expenses			—		538		—		—		538
Adjusted EBITDA		$	11,825	$	21,212	$	9,392	$	(12,148)	$	30,281

Long-lived assets (3)		$	354,468	$	133,343	$	13,765	$	1,964	$	503,540

Capital expenditures (4)		$	1,148	$	17,865	$	4,188	$	837	$	24,038

(1)

Net operating revenue for Corporate and Other primarily relates to CCB and the Company’s cruise ship operations.

(2)

Expense of $1.6 million related to the Company’s Master Lease is included in interest expense (income), net in the United States segment. Expense of $2.2 million related to the Company’s CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Company’s Master Lease and CDR land lease were $3.8 million and $2.0 million, respectively, for the period presented.

(3)

Long-lived assets in the United States segment include $306.7 million related to the Acquired Casinos.

(4)

Capital expenditures in 2019 included construction costs of $15.0 million related to Century Mile in the Canada segment.


	For the year ended December 31, 2018
Amounts in thousands		United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	33,483	$	61,361	$	68,209	$	5,885	$	168,938

Earnings (loss) before income taxes		$	5,881	$	10,973	$	367	$	(11,298)	$	5,923

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	4,373	$	7,715	$	(153)	$	(8,541)	$	3,394
Interest expense (income), net (2)			1		3,895		206		12		4,114
Income taxes (benefit)			1,508		2,536		595		(2,722)		1,917
Depreciation and amortization			2,178		3,211		3,065		945		9,399
Net earnings (loss) attributable to non-controlling interests			—		722		(75)		(35)		612
Non-cash stock-based compensation			—		—		—		868		868
(Gain) loss on foreign currency transactions, cost recovery income and other			—		(235)		(428)		2		(661)
Loss on disposition of fixed assets			1		10		1,054		25		1,090
Pre-opening expenses			—		1,668		626		350		2,644
Adjusted EBITDA		$	8,061	$	19,522	$	4,890	$	(9,096)	$	23,377

Long-lived assets		$	48,381	$	115,861	$	12,465	$	10,310	$	187,017

Capital expenditures (3)		$	1,183	$	42,029	$	5,134	$	8,428	$	56,774

(1)

Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations.

(2)

Expense of $2.1 million related to the Company’s CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Company’s CDR land lease were $2.1 million for the period presented.

(3)

Capital expenditures in 2018 included construction costs of $40.0 million related to Century Mile in the Canada segment.


	For the year ended December 31, 2017
Amounts in thousands		United States		Canada		Poland		Corporate and Other		Total
Net operating revenue (1)		$	32,154	$	57,732	$	59,796	$	4,387	$	154,069

Earnings (loss) before income taxes		$	5,597	$	11,685	$	3,304	$	(8,135)	$	12,451

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	3,469	$	7,681	$	1,280	$	(6,171)	$	6,259
Interest expense (income), net (2)			2		3,487		105		(25)		3,569
Income taxes (benefit)			2,128		3,008		1,388		(1,964)		4,560
Depreciation and amortization			2,405		3,427		2,747		366		8,945
Net earnings attributable to non-controlling interests			—		996		636		—		1,632
Non-cash stock-based compensation			—		—		—		669		669
(Gain) loss on foreign currency transactions, cost recovery income and other			—		(564)		(822)		24		(1,362)
Loss on disposition of fixed assets			1		83		535		3		622
Acquisition costs			—		28		—		327		355
Pre-opening expenses			—		25		537		275		837
Adjusted EBITDA		$	8,005	$	18,171	$	6,406	$	(6,496)	$	26,086

Long-lived assets		$	49,403	$	86,361	$	12,512	$	4,502	$	152,778

Capital expenditures (3)		$	672	$	6,476	$	2,186	$	1,793	$	11,127

(1)

Net operating revenue for Corporate and Other primarily relates to the Company’s cruise ship operations.

(2)

Expense of $2.0 million related to the Company’s CDR land lease is included in interest expense (income), net in the Canada segment. Cash payments related to the Company’s CDR land lease were $1.8 million for the period presented.

(3)

Capital expenditures in 2017 included purchases of property and equipment of $4.6 million related to Century Mile in the Canada segment and $1.5 million related to CCB in the Corporate and Other segment.