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Segment Information
12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Information

15. Segment Information

The Company operates in one line of business, which is operating acute inpatient psychiatric facilities, specialty treatment facilities, residential treatment centers and facilities providing outpatient behavioral healthcare services. As management reviews the operating results of its facilities in the United States (the “U.S. Facilities”) and its facilities in the United Kingdom (the “U.K. Facilities”) separately to assess performance and make decisions, the Company’s operating segments include its U.S. Facilities and U.K. Facilities. At December 31, 2016, the U.S. Facilities included 208 behavioral healthcare facilities with approximately 8,500 beds in 39 states and Puerto Rico, and the U.K. Facilities included 365 behavioral healthcare facilities with approximately 8,600 beds in the U.K.

 

The following tables set forth the financial information by operating segment, including a reconciliation of Segment EBITDA to income from continuing operations before income taxes (in thousands):

 

     Year Ended December 31,  
     2016      2015      2014  

Revenue:

        

U.S. Facilities

   $ 1,698,525      $ 1,426,205      $ 850,625  

U.K. Facilities

     1,110,361        360,698        151,127  

Corporate and Other

     2,028        7,589        2,849  
  

 

 

    

 

 

    

 

 

 
   $ 2,810,914      $ 1,794,492      $ 1,004,601  
  

 

 

    

 

 

    

 

 

 

Segment EBITDA (1):

        

U.S. Facilities

   $ 443,341      $ 377,587      $ 209,668  

U.K. Facilities

     245,046        90,035        39,832  

Corporate and Other

     (79,797      (62,790      (34,012
  

 

 

    

 

 

    

 

 

 
   $ 608,590      $ 404,832      $ 215,488  
  

 

 

    

 

 

    

 

 

 

 

     Year Ended December 31,  
     2016      2015      2014  

Segment EBITDA (1)

   $ 608,590      $ 404,832      $ 215,488  

Plus (less):

        

Equity-based compensation expense

     (28,345      (20,472      (10,058

Debt extinguishment costs

     (4,253      (10,818      —    

Loss on divestiture

     (178,809      —          —    

Gain (loss) on foreign currency derivatives

     523        (1,926      15,262  

Transaction-related expenses

     (48,323      (36,571      (13,650

Interest expense, net

     (181,325      (106,742      (48,221

Depreciation and amortization

     (135,103      (63,550      (32,667
  

 

 

    

 

 

    

 

 

 

Income from continuing operations before income taxes

   $ 32,955      $ 164,753      $ 126,154  
  

 

 

    

 

 

    

 

 

 

 

     U.S. Facilities      U.K. Facilities      Corporate and
Other
     Consolidated  

Goodwill:

           

Balance at January 1, 2016

   $ 1,941,873      $ 186,342      $ —        $ 2,128,215  

Increase from 2016 acquisitions

     95,645        686,149        —          781,794  

Foreign currency translation loss

     —          (127,020      —          (127,020

Loss on divestiture

     (85      (106,852      —          (106,937

Prior year purchase price adjustments

     4,362        774        —          5,136  
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance at December 31, 2016

   $ 2,041,795      $ 639,393      $ —        $ 2,681,188  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     December 31,  
     2016      2015  

Assets (2):

     

U.S. Facilities

   $ 3,382,167      $ 3,061,519  

U.K. Facilities

     2,441,018        1,045,922  

Corporate and Other

     201,541        171,767  
  

 

 

    

 

 

 
   $ 6,024,726      $ 4,279,208  
  

 

 

    

 

 

 

 

(1)

Segment EBITDA is defined as income from continuing operations before provision for income taxes, equity-based compensation expense, debt extinguishment costs, gain on foreign currency derivatives, 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 generally accepted accounting principles, 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 generally accepted accounting principles 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 $1.0 billion, U.K. Facilities of $1.7 billion and corporate and other of $27.1 million at December 31, 2016. Assets include property and equipment for the U.S. Facilities of $832.2 million, U.K. Facilities of $824.4 million and corporate and other of $52.4 million at December 31, 2015.