During the fourth quarter of 2017, as a result of changes in the management of our entertainment storage and services business, we reassessed the composition of our reportable operating segments. As a result of this reassessment, we determined that our entertainment storage and services business in the United States and Canada, which were previously included within our North American Data Management Business segment, were now being managed in conjunction with our entertainment storage and services business in France, Hong Kong, the Netherlands and the United Kingdom (the majority of which were acquired in the third quarter of 2017 as part of the Bonded Transaction) as a component of our Adjacent Businesses operating segment which is included within our Corporate and Other Business reportable operating segment.

Additionally, during the fourth quarter of 2017, we determined that our global data center business was now being managed as a separate operating segment, rather than as a component of our Adjacent Businesses operating segment. We now present our Global Data Center Business operating segment as a separate reportable operating segment.

As a result of the changes noted above, previously reported segment information has been restated to conform to the current presentation.

As of December 31, 2017, our six reportable operating segments are described as follows:

•

North American Records and Information Management Business—provides records and information management services, including the storage of physical records, including media such as microfilm and microfiche, master audio and videotapes, film, X-rays and blueprints, including healthcare information services, vital records services, service and courier operations, and the collection, handling and disposal of sensitive documents for corporate customers (“Records Management”); information destruction services (“Destruction”); and Information Governance and Digital Solutions throughout the United States and Canada; as well as fulfillment services and technology escrow services in the United States.


•	North American Data Management Business—provides storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations (“Data Protection & Recovery”); server and computer backup services; and related services offerings including our Iron Cloud solutions.

•

Western European Business—provides records and information management services, including Records Management, Data Protection & Recovery and Information Governance and Digital Solutions throughout Austria, Belgium, France, Germany, Ireland, the Netherlands, Spain, Switzerland and the United Kingdom (consisting of our operations in England, Northern Ireland and Scotland), as well as Information Governance and Digital Solutions in Sweden (the remainder of our business in Sweden is included in the Other International Business segment described below).

•

Other International Business—provides records and information management services throughout the remaining European countries in which we operate, Latin America, Asia and Africa, including Records Management, Data Protection & Recovery and Information Governance and Digital Solutions. Our European operations included in this segment provide records and information management services, including Records Management, Data Protection & Recovery and Information Governance and Digital Solutions throughout Cyprus, the Czech Republic, Denmark, Finland, Greece, Hungary, Norway, Poland, Romania, Serbia, Slovakia, and Turkey; Records Management and Information Governance and Digital Solutions in Estonia, Latvia and Lithuania; and Records Management in Sweden. Our Latin America operations provide records and information management services, including Records Management, Data Protection & Recovery, Destruction and Information Governance and Digital Solutions throughout Argentina, Brazil, Chile, Colombia, Mexico and Peru. Our Asia operations provide records and information management services, including Records Management, Data Protection & Recovery, Destruction and Information Governance and Digital Solutions throughout Australia and New Zealand, with Records Management and Data Protection & Recovery also provided in certain markets in China (including Taiwan and Macau), Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Thailand and United Arab Emirates. Our African operations provide Records Management, Data Protection & Recovery, and Information Governance and Digital Solutions in South Africa.

•

Global Data Center Business—provides data center facilities to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructures, with secure and reliable colocation and wholesale options. As of December 31, 2017, we have data center operations in five markets in the United States including: Denver, Colorado; Kansas City, Missouri; Boston, Massachusetts; Boyers, Pennsylvania; and Manassas,Virginia.

•

Corporate and Other Business—primarily consists of the storage, safeguarding and electronic or physical delivery of physical media of all types and digital content repository systems to house, distribute, and archive key media assets, primarily for entertainment and media industry clients throughout the United States, Canada, France, Hong Kong, the Netherlands and the United Kingdom, as well as our fine art and consumer storage businesses, the primary product offerings of our Adjacent Businesses operating segment, as well as costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. Our Corporate and Other Business segment also includes stock-based employee compensation expense associated with all Employee Stock-Based Awards.

An analysis of our business segment information and reconciliation to the accompanying Consolidated Financial Statements is as follows:



	North American Records and Information Management Business			North American Data Management Business			Western European Business			Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
As of and for the Year Ended December 31, 2015
Total Revenues	$	1,775,365		$	377,305		$	397,513		$	421,360	$	19,065	$	17,368		$	3,007,976
Depreciation and Amortization	183,507			19,530			44,691			57,025		4,302		36,409			345,464
Depreciation	163,647			19,100			38,710			39,439		4,102		36,221			301,219
Amortization	19,860			430			5,981			17,586		200		188			44,245
Adjusted EBITDA	714,639			203,237			120,649			87,341		1,860		(207,721		)	920,005
Total Assets(1)	3,627,843			602,398			871,571			893,530		99,347		255,898			6,350,587
Expenditures for Segment Assets	192,935			21,915			27,278			94,483		22,751		99,556			458,918
Capital Expenditures	141,964			14,873			17,378			64,227		22,751		29,056			290,249
Cash Paid for Acquisitions, Net of Cash Acquired	12,795			(21		)	2,596			27,688		—		70,500			113,558
Acquisitions of Customer Relationships and Customer Inducements	38,176			7,063			7,304			2,568		—		—			55,111
As of and for the Year Ended December 31, 2016
Total Revenues	1,930,699			392,814			454,211			652,516		24,249		56,964			3,511,453
Depreciation and Amortization	215,330			26,629			55,582			100,490		4,827		49,468			452,326
Depreciation	186,467			20,666			42,613			67,310		4,610		43,860			365,526
Amortization	28,863			5,963			12,969			33,180		217		5,608			86,800
Adjusted EBITDA	775,717			224,522			137,506			169,042		6,212		(225,711		)	1,087,288
Total Assets(1)	4,996,216			826,320			1,031,313			2,103,725		167,757		361,469			9,486,800
Expenditures for Segment Assets	145,636			26,054			31,530			365,566		70,060		32,488			671,334
Capital Expenditures	111,062			22,731			31,014			62,315		70,060		31,421			328,603
Cash Paid for Acquisitions, Net of Cash Acquired(2)	(2,591		)	(59		)	(6,878		)	300,451		—		1,042			291,965
Acquisitions of Customer Relationships and Customer Inducements	37,165			3,382			7,394			2,800		—		25			50,766
As of and for the Year Ended December 31, 2017
Total Revenues	2,050,346			401,640			501,742			784,855		37,694		69,301			3,845,578
Depreciation and Amortization	240,524			34,759			64,689			118,764		10,224		53,416			522,376
Depreciation	201,204			24,623			47,907			78,283		8,617		45,649			406,283
Amortization	39,320			10,136			16,782			40,481		1,607		7,767			116,093
Adjusted EBITDA	884,158			223,324			160,024			226,430		11,275		(245,015		)	1,260,196
Total Assets(1)	5,050,240			839,539			923,814			2,388,777		382,198		1,387,834			10,972,402
Expenditures for Segment Assets	205,531			31,279			21,909			166,001		86,543		126,758			638,021
Capital Expenditures	134,785			31,279			19,838			76,664		32,015		48,550			343,131
Cash Paid for Acquisitions, Net of Cash Acquired	6,624			—			—			80,345		54,528		78,208			219,705
Acquisitions of Customer Relationships and Customer Inducements	64,122			—			2,071			8,992		—		—			75,185

_______________________________________________________________________________


(1)	Excludes all intercompany receivables or payables and investment in subsidiary balances.

(2)

Cash paid for acquisitions, net of cash acquired for the Other International Business segment for the year ended December 31, 2016 primarily consists of the cash component of the purchase price for the Recall Transaction, as the IMI entity that made the cash payment was an Australian subsidiary. However, the Recall Transaction also benefited the North American Records and Information Management Business, North American Data Management Business and Western European Business segments.

The accounting policies of the reportable segments are the same as those described in Note 2. Adjusted EBITDA for each segment is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes, depreciation and amortization, and also excludes certain items that we believe are not indicative of our core operating results, specifically: (1) loss (gain) on disposal/write-down of property, plant and equipment (excluding real estate), net; (2) intangible impairments; (3) other expense (income), net; (4) gain on sale of real estate, net of tax; and (5) Recall Costs (as defined below). Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocated resources to, our operating segments.

A reconciliation of Adjusted EBITDA to income (loss) from continuing operations on a consolidated basis is as follows:



	Year Ended December 31,
	2015			2016			2017
Adjusted EBITDA	$	920,005		$	1,087,288		$	1,260,196
(Add)/Deduct:
Gain on Sale of Real Estate, Net of Tax	(850		)	(2,180		)	(1,565		)
Provision (Benefit) for Income Taxes	37,713			44,944			25,947
Other Expense, Net	98,590			44,300			79,429
Interest Expense, Net	263,871			310,662			353,575
Loss (Gain) on Disposal/Write-down of Property, Plant and Equipment (Excluding Real Estate), Net	3,000			1,412			799
Depreciation and Amortization	345,464			452,326			522,376
Intangible Impairments	—			—			3,011
Recall Costs(1)	47,014			131,944			84,901
Income (Loss) from Continuing Operations	$	125,203		$	103,880		$	191,723

_______________________________________________________________________________

(1)

Represents operating expenditures associated with the Recall Transaction, including: (i) advisory and professional fees to complete the Recall Transaction; (ii) costs associated with the Divestments required in connection with receipt of regulatory approvals (including transitional services); and (iii) costs to integrate Recall with our existing operations, including moving, severance, facility upgrade, REIT conversion and system upgrade costs, as well as certain costs associated with our shared service center initiative for our finance, human resources and information technology functions ("Recall Costs").

Information as to our operations in different geographical areas is as follows:



	Year Ended December 31,
	2015		2016		2017
Revenues:
United States	$	1,973,872	$	2,173,782	$	2,310,296
United Kingdom	250,123		237,032		246,373
Canada	215,232		230,944		243,625
Australia	64,969		148,175		157,333
Other International	503,780		721,520		887,951
Total Revenues	$	3,007,976	$	3,511,453	$	3,845,578
Long-lived Assets:
United States	$	3,710,301	$	5,238,807	$	5,476,551
United Kingdom	434,461		400,937		529,233
Canada	345,783		463,396		500,396
Australia	102,247		542,055		470,432
Other International	899,883		1,729,498		2,045,475
Total Long-lived Assets	$	5,492,675	$	8,374,693	$	9,022,087

Information as to our revenues by product and service lines is as follows:



	Year Ended December 31,
	2015		2016		2017
Revenues:
Records Management(1)(2)	$	2,255,206	$	2,631,895	$	2,847,691
Data Management(1)(3)	490,196		525,086		574,251
Information Destruction(1)(4)	243,509		330,223		385,942
Data Center(5)	19,065		24,249		37,694
Total Revenues	$	3,007,976	$	3,511,453	$	3,845,578

_______________________________________________________________________________


(1)	Each of the offerings within our product and service lines has a component of revenue that is storage rental related and a component that is service revenues, except the Destruction service offering, which does not have a storage rental component.


(2)	Includes Business Records Management, Compliant Records Management and Consulting Services, Information Governance and Digital Solutions, Fulfillment Services, Health Information Management Solutions, Energy Data Services and Technology Escrow Services.


(3)	Includes Data Protection & Recovery and Entertainment Services.


(4)	Includes Secure Shredding and Compliant Information Destruction.


(5)	Previously included as part of Data Management. Prior periods presented have been restated to conform to the current year presentation.