Segment Information

9 Months Ended

Sep. 30, 2019

Our six reportable operating segments as of December 31, 2018 are described in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report and are 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

There have been no changes made to our reportable operating segments since December 31, 2018, other than the impact of the Consumer Storage Transaction (as defined in Note 10). Prior to the Consumer Storage Transaction, our consumer storage business was a component of our Corporate and Other Business Segment. The previously reported segment information has been restated to conform to the current presentation and reflects the changes to our reportable operating segments that occurred in fourth quarter of 2018 as described in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report. The operations associated with acquisitions completed during the first nine months of 2019 have been incorporated into our existing reportable operating segments.

An analysis of our business segment information and reconciliation to the accompanying Condensed 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
For the Three Months Ended September 30, 2019
Total Revenues	$	542,044	$	96,552	$	121,437	$	197,728	$	64,418	$	40,045		$	1,062,224
Storage Rental	317,820		66,497		78,009		128,715		62,001		20,276			673,318
Service	224,224		30,055		43,428		69,013		2,417		19,769			388,906
Depreciation and Amortization	58,801		6,709		13,257		30,008		34,067		14,719			157,561
Depreciation	45,394		4,620		9,137		17,512		20,193		11,296			108,152
Amortization	13,407		2,089		4,120		12,496		13,874		3,423			49,409
Adjusted EBITDA	246,415		54,378		38,639		62,120		32,261		(58,112		)	375,701
Expenditures for Segment Assets	64,098		2,822		18,125		43,290		58,060		14,883			201,278
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	46,376		2,822		16,191		28,944		57,267		14,883			166,483
Cash Paid for Acquisitions, Net of Cash Acquired	—		—		—		11,848		—		—			11,848
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs and third-party commissions	17,722		—		1,934		2,498		793		—			22,947
For the Three Months Ended September 30, 2018
Total Revenues	$	539,603	$	97,477	$	126,354	$	200,639	$	63,380	$	33,538		$	1,060,991
Storage Rental	306,633		67,779		79,492		124,920		60,039		18,110			656,973
Service	232,970		29,698		46,862		75,719		3,341		15,428			404,018
Depreciation and Amortization	59,869		9,472		14,316		31,487		27,965		14,688			157,797
Depreciation	46,756		7,277		9,996		19,272		16,431		13,258			112,990
Amortization	13,113		2,195		4,320		12,215		11,534		1,430			44,807
Adjusted EBITDA	248,600		53,484		40,817		60,106		27,299		(67,976		)	362,330
Expenditures for Segment Assets	53,665		5,033		2,774		49,330		42,585		29,435			182,822
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	31,373		5,033		551		21,929		41,896		11,570			112,352
Cash Paid for Acquisitions, Net of Cash Acquired	—		—		—		26,277		—		17,865			44,142
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	22,292		—		2,223		1,124		689		—			26,328



	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 Nine Months Ended September 30, 2019
Total Revenues	$	1,608,697	$	289,714	$	377,517	$	598,507	$	188,245	$	120,314		$	3,182,994
Storage Rental	938,161		199,819		237,258		387,086		182,301		60,955			2,005,580
Service	670,536		89,895		140,259		211,421		5,944		59,359			1,177,414
Depreciation and Amortization	181,494		27,011		42,842		91,367		98,370		43,291			484,375
Depreciation	137,801		20,451		30,560		53,563		58,233		35,877			336,485
Amortization	43,693		6,560		12,282		37,804		40,137		7,414			147,890
Adjusted EBITDA	715,683		157,998		122,011		178,993		85,913		(209,449		)	1,051,149
Total Assets(1)	5,742,593		860,101		1,319,442		2,620,709		2,349,917		684,405			13,577,167
Expenditures for Segment Assets	166,908		13,708		72,560		93,373		314,242		42,831			703,622
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	103,660		13,708		41,031		56,048		279,856		39,311			533,614
Cash Paid for Acquisitions, Net of Cash Acquired	9,876		—		11,850		31,253		—		3,520			56,499
Acquisitions of Customer Relationships and Customer Inducements and Contract Fulfillment Costs and third-party commissions	53,372		—		19,679		6,072		34,386		—			113,509
As of and for the Nine Months Ended September 30, 2018
Total Revenues	$	1,605,526	$	297,472	$	393,869	$	618,933	$	164,878	$	83,594		$	3,164,272
Storage Rental	917,347		205,833		245,883		386,278		157,479		50,741			1,963,561
Service	688,179		91,639		147,986		232,655		7,399		32,853			1,200,711
Depreciation and Amortization	183,591		29,114		49,372		93,724		72,736		46,058			474,595
Depreciation	144,146		22,517		34,575		56,535		40,931		39,219			337,923
Amortization	39,445		6,597		14,797		37,189		31,805		6,839			136,672
Adjusted EBITDA	719,199		162,616		131,377		181,305		72,990		(202,027		)	1,065,460
Total Assets(1)	4,961,149		823,868		1,104,221		2,328,574		2,159,955		433,103			11,810,870
Expenditures for Segment Assets	138,210		15,529		37,813		111,777		1,745,770		55,426			2,104,525
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	86,365		15,529		31,694		60,992		98,169		37,204			329,953
Cash Paid for Acquisitions, Net of Cash Acquired	1,551		—		—		45,673		1,645,922		17,865			1,711,011
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	50,294		—		6,119		5,112		1,679		357			63,561

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(1)	Excludes all intercompany receivables or payables and investment in subsidiary balances. Total assets as of September 30, 2019 reflects the adoption of ASU 2016-02.

The accounting policies of the reportable operating segments are the same as those described in Note 2 and in Note 2 to Notes to Consolidated Financial Statements included in our Annual Report. 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: (i) (gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (ii) intangible impairments; (iii) other (income) expense, net (which includes foreign currency transaction (gains) losses, net); and (iv) Significant Acquisition Costs (as defined below). Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments.

A reconciliation of Adjusted EBITDA to income (loss) from continuing operations on a consolidated basis for the three and nine months ended September 30, 2019 and 2018 is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Adjusted EBITDA	$	375,701		$	362,330		$	1,051,149		$	1,065,460
(Add)/Deduct:
Provision (Benefit) for Income Taxes	21,928			14,023			43,127			39,957
Other (Income) Expense, Net	(13,415		)	325			(13,397		)	1,420
Interest Expense, Net	106,677			103,938			314,427			303,836
(Gain) Loss on disposal/write-down of property, plant and equipment, net	(9,284		)	(388		)	(17,087		)	(2,064		)
Depreciation and amortization	157,561			157,797			484,375			474,595
Significant Acquisition Costs(1)	3,950			9,286			8,597			38,715
Income (Loss) from Continuing Operations	$	108,284		$	77,349		$	231,107		$	209,001

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(1)	As defined in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report.

Information as to our revenues by product and service lines by segment for the three and nine months ended September 30, 2019 and 2018 are 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
For the Three Months Ended September 30, 2019
Records Management(1)	$	452,336	$	—	$	103,683	$	169,748	$	—	$	23,837	$	749,604
Data Management(1)	—		93,016		17,551		18,884		—		16,208		145,659
Information Destruction(1)(2)	89,708		3,536		203		9,096		—		—		102,543
Data Center	—		—		—		—		64,418		—		64,418
Total Revenues	$	542,044	$	96,552	$	121,437	$	197,728	$	64,418	$	40,045	$	1,062,224
For the Three Months Ended September 30, 2018
Records Management(1)	$	441,102	$	—	$	107,388	$	173,426	$	—	$	19,183	$	741,099
Data Management(1)	—		94,917		18,914		18,541		—		14,355		146,727
Information Destruction(1)(2)	98,501		2,560		52		8,672		—		—		109,785
Data Center	—		—		—		—		63,380		—		63,380
Total Revenues	$	539,603	$	97,477	$	126,354	$	200,639	$	63,380	$	33,538	$	1,060,991
For the Nine Months Ended September 30, 2019
Records Management(1)	$	1,322,488	$	—	$	321,759	$	515,158	$	—	$	74,377	$	2,233,782
Data Management(1)	—		280,157		54,345		56,898		—		45,937		437,337
Information Destruction(1)(2)	286,209		9,557		1,413		26,451		—		—		323,630
Data Center	—		—		—		—		188,245		—		188,245
Total Revenues	$	1,608,697	$	289,714	$	377,517	$	598,507	$	188,245	$	120,314	$	3,182,994
For the Nine Months Ended September 30, 2018
Records Management(1)	$	1,317,505	$	—	$	335,072	$	533,950	$	—	$	41,388	$	2,227,915
Data Management(1)	—		290,279		58,526		58,246		—		42,206		449,257
Information Destruction(1)(2)	288,021		7,193		271		26,737		—		—		322,222
Data Center	—		—		—		—		164,878		—		164,878
Total Revenues	$	1,605,526	$	297,472	$	393,869	$	618,933	$	164,878	$	83,594	$	3,164,272

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(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 for information destruction, which does not have a storage rental component.

(2)

Includes secure shredding services.