The Company reports information about operating segments in accordance with ASC 280-10, Segment Reporting, which requires financial information to be reported based on the way management organizes segments within a company for making operating decisions and evaluating performance. The Company has identified two reportable segments and reporting units for its theatrical exhibition operations, U.S. markets and International markets. The International markets reportable segment has operations in or partial interest in theatres in the United Kingdom, Germany, Spain, Italy, Ireland, Portugal, Sweden, Finland, Estonia, Latvia, Lithuania, Norway, and Denmark. Operations located in Austria were sold during the first quarter of 2019. Each segment’s revenue is derived from admissions, food and beverage sales and other ancillary revenues, primarily screen advertising, AMC Stubs^® membership fees and other loyalty programs, ticket sales, gift card income and exchange ticket income. 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 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 select financial information by reportable operating segment:

(1)

The Company presents Adjusted EBITDA as a supplemental measure of its performance. The Company defines Adjusted EBITDA as net earnings (loss) plus (i) income tax provision, (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of the Company’s ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in International markets and any cash distributions of earnings from its other equity method investees. The measure of segment profit and loss the Company uses to evaluate performance and allocate its resources is Adjusted EBITDA, which is consistent with how Adjusted EBITDA is defined in the Company’s debt indentures.

(2)

Distributions from NCM are reported entirely within the U.S. markets segment.

Financial information about geographic area is as follows:


	Year Ended
Revenues (In millions)	December 31, 2019		December 31, 2018		December 31, 2017
United States	$	4,023.2	$	4,013.2	$	3,723.5
United Kingdom		500.4		513.5		509.8
Spain		200.3		193.9		187.1
Italy		200.0		178.5		185.5
Sweden		177.5		192.1		154.2
Germany		135.0		114.3		129.7
Finland		103.0		101.7		77.3
Norway		37.9		34.9		17.7
Other foreign countries		93.7		118.7		94.4
Total	$	5,471.0	$	5,460.8	$	5,079.2


	As of		As of
Long-term assets, net (In millions)	December 31, 2019		December 31, 2018
United States	$	9,039.6	$	5,826.5
International		3,963.1		2,888.0
Total long-term assets (1)	$	13,002.7	$	8,714.5

(1)

Long-term assets are comprised of property, operating lease right-of-use assets, intangible assets, goodwill, deferred tax asset, net and other long-term assets.

The following table sets forth a reconciliation of net earnings (loss) to Adjusted EBITDA:


	Year Ended
(In millions)	December 31, 2019		December 31, 2018		December 31, 2017
Net earnings (loss)	$	(149.1)	$	110.1	$	(487.2)
Plus:
Income tax provision (benefit)		(22.5)		13.6		154.1
Interest expense		340.8		342.3		274.0
Depreciation and amortization		450.0		537.8		538.6
Impairment of long-lived assets		84.3		13.8		43.6
Certain operating expenses (1)		14.8		24.0		20.6
Equity in (earnings) loss of non-consolidated entities (2)		(30.6)		(86.7)		185.2
Cash distributions from non-consolidated entities (3)		35.8		35.2		45.4
Attributable EBITDA (4)		5.0		7.3		3.4
Investment income		(16.0)		(6.2)		(22.6)
Other expense (income) (5)		13.3		(108.2)		(1.3)
Non-cash rent - purchase accounting (6)		25.7		—		—
General and administrative — unallocated:
Merger, acquisition and other costs (7)		15.5		31.3		63.0
Stock-based compensation expense (8)		4.4		14.9		5.7
Adjusted EBITDA	$	771.4	$	929.2	$	822.5

(1)

Amounts represent preopening expense related to temporarily closed screens under renovation, theatre and other closure expense for the permanent closure of screens including the related accretion of interest, non-cash deferred digital equipment rent expense, and disposition of assets and other non-operating gains or losses included in operating expenses. The Company has excluded these items as they are non-cash in nature, include components of interest cost for the time value of money or are non-operating in nature.

(2)

During the years ended December 31, 2019 and December 31, 2018, the Company recorded $25.4 million and $29.1 million, respectively, in earnings from DCIP. During the year ended December 31, 2018, the Company recorded equity in earnings related to AMC’s sale of all remaining NCM units of $28.9 million

and a gain of $30.1 million related to the Screenvision merger. Equity in earnings of non-consolidated entities also includes loss on the surrender (disposition) of a portion of AMC’s investment in NCM of $1.1 million and a lower of carrying value or fair value impairment loss of the held-for sale portion of the Company’s investment in NCM of $16.0 million for the year ended December 31, 2018. During the year ended December 31, 2017, equity in (earnings) loss of non-consolidated entities includes an other-than-temporary impairment charge of $208.0 million to reduce the carrying value of the Company’s investment in NCM to Level 1 fair value. An other-than-temporary impairment charge of $204.5 million was recorded on the Company’s units and shares at the publicly quoted per share price on June 30, 2017 of $7.42 and an other-than-temporary impairment charge of $3.5 million was recorded on the Company’s units and shares at the publicly quoted per share price on December 31, 2017 of $6.86, based on the Company’s determination that the decline in the price per share during the respective quarters was other than temporary. Equity in (earnings) loss of non-consolidated entities includes loss on the sale of a portion of the Company’s investment in NCM of $22.2 million during the year ended December 31, 2017.

(3)

Includes U.S. non-theatre distributions from equity method investments and International non-theatre distributions from equity method investments to the extent received. The Company believes including cash distributions is an appropriate reflection of the contribution of these investments to the Company’s operations.

(4)

Attributable EBITDA includes the EBITDA from equity investments in theatre operators in certain International markets. See below for a reconciliation of the Company’s equity in (earnings) loss of non-consolidated entities to attributable EBITDA. Because these equity investments are in theatre operators in regions where the Company holds a significant market share, the Company believes attributable EBITDA is more indicative of the performance of these equity investments and management uses this measure to monitor and evaluate these equity investments. The Company also provides services to these theatre operators including information technology systems, certain on-screen advertising services and the Company’s gift card and package ticket program. As these investments relate only to the Company’s Nordic acquisition, the second quarter of 2017 represents the first time the Company has made this adjustment and does not impact prior historical presentations of Adjusted EBITDA.


	Year Ended
(In millions)	December 31, 2019		December 31, 2018		December 31, 2017
Equity in (earnings) loss of non-consolidated entities	$	(30.6)	$	(86.7)	$	185.2
Less:
Equity in (earnings) loss of non-consolidated entities excluding International theatre joint ventures		(29.2)		(81.9)		187.0
Equity in earnings of International theatre joint ventures		1.4		4.8		1.8
Income tax provision		0.4		0.4		—
Investment income		(0.7)		(0.5)		—
Depreciation and amortization		3.4		2.6		1.6
Other expense		0.5		—		—
Attributable EBITDA	$	5.0	$	7.3	$	3.4

(5)

Other expense (income) for the year ended December 31, 2019 was primarily due to expense related to the repayment of indebtedness of $16.6 million, foreign currency transaction losses of $1.5 million, non-operating net periodic benefit cost of $1.2 million, and the decrease in fair value of the Company’s derivative asset for the contingent call option related to the Class B common stock purchase and cancellation agreement of $17.7 million, partially offset by a decrease in fair value of the Company’s derivative liability for the embedded conversion feature in its Convertible Notes due 2024 of $23.5 million. During the year ended December 31, 2018, the Company recorded a gain of $111.4 million as a result of a decrease in fair value of its derivative liability and an increase in fair value of the derivative asset for the Convertible Notes due 2024, partially offset by financing losses and financing related foreign currency transaction losses. Other expense (income) for the year ended December 31, 2017 includes $3.0 million financing related foreign currency transaction gains, partially offset by $1.3 million in fees relating to third-

party fees related to the Third Amendment to the Company’s Senior Secured Credit Agreement, and a $0.4 million loss on the redemption of the Bridge Loan Facility.

(6)

Reflects amortization of certain intangible assets reclassified from depreciation and amortization to rent expense, due to the adoption of ASC 842.

(7)

Merger, acquisition and other costs are excluded as they are non-operating in nature.

(8)

Non-cash or non-recurring expense included in general and administrative: other.