17. Segments

The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, and Bolivia. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues, primarily screen advertising. The measure of segment profit and loss the Company uses to evaluate performance and allocate its resources is Adjusted EBITDA, as defined in the reconciliation table below. The Company does not report total asset information by segment because that information is not used to evaluate the performance of or allocate resources between segments.

Below is a breakdown of selected financial information by reportable operating segment:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues
U.S.	$	463,854		$	529,426		$	1,433,259		$	1,412,898
International		186,428			231,771			543,501			627,843
Eliminations		(3,379	)		(3,631	)		(9,714	)		(9,780	)

Total revenues	$	646,903		$	757,566		$	1,967,046		$	2,030,961

Adjusted EBITDA
U.S. ⁽¹⁾	$	99,519		$	132,803		$	313,930		$	341,579
International		42,220			57,370			125,719			142,874

Total Adjusted EBITDA	$	141,739		$	190,173		$	439,649		$	484,453

Capital expenditures
U.S.	$	36,325		$	35,746		$	97,120		$	71,533
International		17,280			33,354			59,048			87,955

Total capital expenditures	$	53,605		$	69,100		$	156,168		$	159,488

⁽¹⁾	Distributions from NCM are reported entirely within the U.S. operating segment.

The following table sets forth a reconciliation of net income to Adjusted EBITDA:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Net income	$	38,532		$	80,745		$	146,362		$	134,644
Add (deduct):
Income taxes		25,534			43,386			70,477			62,726
Interest expense ⁽¹⁾		28,335			29,478			85,101			96,542
Loss on early retirement of debt		—			—			—			72,302
Other income ⁽²⁾		(6,636	)		(12,795	)		(20,777	)		(17,958	)
Depreciation and amortization		44,731			42,399			131,108			120,165
Impairment of long-lived assets		4,510			131			5,294			2,076
(Gain) loss on sale of assets and other		2,590			611			8,719			(2,532	)
Deferred lease expenses		168			1,935			2,016			4,038
Amortization of long-term prepaid rents		1,000			725			1,785			2,104
Share based awards compensation expense		2,975			3,558			9,564			10,346

Adjusted EBITDA	$	141,739		$	190,173		$	439,649		$	484,453

⁽¹⁾	Includes amortization of debt issue costs.

⁽²⁾	Includes interest income, foreign currency exchange loss and equity in income of affiliates and excludes distributions from NCM.

Financial Information About Geographic Areas

Below is a breakdown of selected financial information by geographic area:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Revenues
U.S.	$	463,854		$	529,426		$	1,433,259		$	1,412,898
Brazil		83,521			87,028			256,421			251,831
Other international countries		102,907			144,743			287,080			376,012
Eliminations		(3,379	)		(3,631	)		(9,714	)		(9,780	)

Total	$	646,903		$	757,566		$	1,967,046		$	2,030,961


Theatre Properties and Equipment-net	September 30, 2014		December 31, 2013
U.S.	$	1,065,964	$	1,062,471
Brazil		211,072		201,492
Other international countries		150,751		163,227

Total	$	1,427,787	$	1,427,190