13. 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 added Century Mile Racetrack and Casino to its operating segments based on the characteristics that the property will have once operational. 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. The Company concluded that CCB did not meet the materiality threshold to create a separate reportable segment as of December 31, 2018. The Company will continue to evaluate CCB for this purpose. 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
Canada	Century Casino & Hotel - Edmonton
Canada	Century Casino St. Albert
Canada	Century Casino Calgary
Canada	Century Downs Racetrack and Casino
Canada	Century Bets!
Canada	Century Mile Racetrack and Casino
United States	Century Casino & Hotel – Central City
United States	Century Casino & Hotel – Cripple Creek
Poland	Casinos Poland
Corporate and Other	Cruise Ships & Other
Corporate and Other	Century Casino Bath
Corporate and Other	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. 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, 2018, 2017 and 2016:


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

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

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	7,715	$	4,373	$	(153)	$	(8,541)	$	3,394
Interest expense (income), net			3,895		1		206		12		4,114
Income taxes (benefit)			2,536		1,508		595		(2,722)		1,917
Depreciation and amortization			3,211		2,178		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			10		1		1,054		25		1,090
Pre-opening expenses			1,668		—		626		350		2,644
Adjusted EBITDA		$	19,522	$	8,061	$	4,890	$	(9,096)	$	23,377

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

Capital expenditures (2)		$	42,029	$	1,183	$	5,134	$	8,428	$	56,774

(1)

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

(2)

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		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	57,732	$	32,154	$	59,796	$	4,387	$	154,069

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

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	7,681	$	3,469	$	1,280	$	(6,171)	$	6,259
Interest expense (income), net			3,487		2		105		(25)		3,569
Income taxes (benefit)			3,008		2,128		1,388		(1,964)		4,560
Depreciation and amortization			3,427		2,405		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			83		1		535		3		622
Acquisition costs			28		—		—		327		355
Pre-opening expenses			25		—		537		275		837
Adjusted EBITDA		$	18,171	$	8,005	$	6,406	$	(6,496)	$	26,086

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

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

(1)

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

(2)

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.


	For the year ended December 31, 2016
Amounts in thousands		Canada		United States		Poland		Corporate and Other		Total
Net operating revenue (1)		$	50,237	$	30,135	$	54,890	$	3,972	$	139,234

Earnings before income taxes		$	12,381	$	4,705	$	5,647	$	(7,133)	$	15,600

Net earnings (loss) attributable to Century Casinos, Inc. shareholders		$	8,448	$	2,890	$	2,921	$	(5,044)	$	9,215
Interest expense (income), net			3,037		2		71		(22)		3,088
Income taxes (benefit)			796		1,815		1,265		(2,089)		1,787
Depreciation and amortization			3,049		2,488		2,430		382		8,349
Net earnings attributable to non-controlling interests			3,137		—		1,461		—		4,598
Non-cash stock-based compensation			—		—		—		759		759
(Gain) loss on foreign currency transactions, cost recovery income and other			(2,232)		—		(310)		19		(2,523)
Loss on disposition of fixed assets			27		2		301		—		330
Acquisition costs			—		—		—		159		159
Adjusted EBITDA		$	16,262	$	7,197	$	8,139	$	(5,836)	$	25,762

Long-lived assets		$	77,015	$	51,142	$	10,612	$	1,994	$	140,763

Capital expenditures (2)		$	13,536	$	1,165	$	1,334	$	611	$	16,646

(1)

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

(2)

Capital expenditures for Canada in 2016 included purchases of property and equipment of $9.5 million related to the acquisition of Century Casino St. Albert.