Information about QVC's Operating Segments and Geographical Data The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA, gross margin, average sales price per unit, number of units shipped and revenue or sales per subscriber equivalent. For segment reporting purposes, the Company defines Adjusted OIBDA, as net revenue less cost of goods sold, operating expenses, and selling, general and administrative expenses (excluding restructuring, integration and advisory fees incurred by QVC as a result of the acquisition of HSN by Qurate Retail on December 29, 2017, expenses related to the QRG Initiatives (see note 1) and expenses related to the closure of operations in France (collectively, "transaction related costs") and stock-based compensation). The Company believes this measure is an important indicator of the operational strength and performance of its segments by identifying those items that are not directly a reflection of each segment's performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among the Company's businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization, stock-based compensation and transaction related costs that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP. The Company's chief operating decision maker ("CODM") is the Company's Chief Executive Officer who has ultimate responsibility for enterprise decisions. QVC's CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise, QxH, and QVC-International. The segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. QVC's CODM relies on internal management reporting that analyzes enterprise results and segment results to the Adjusted OIBDA level (see below). During the first quarter of 2019, the Company changed its reportable operating segments to combine QVC-U.S. and HSN into one reportable segment called QxH and presented prior period information to conform with this change. As a result of the QRG Initiatives and additional synergies between QVC-U.S. and HSN, the CODM began reviewing the QVC-U.S. and HSN information as one business unit during the first quarter. For the year ended December 31, 2019 , QVC has identified QxH and QVC-International as its two reportable segments. Both operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the Internet and mobile applications in certain markets. QVC allocates certain corporate costs for management reporting purposes from its QxH segment to the QVC-International segment. These management cost allocations are related to certain functions such as merchandising, commerce platforms, information technology, human resources, legal, finance, brand and communications, corporate development and administration that support all of QVCs operations. For the years ended December 31, 2019, 2018 and 2017 , the costs allocated to QVC-International totaled approximately $27 million , $39 million and $36 million respectively. Performance measures Years ended December 31, 2019 2018 2017 (in millions) Net revenue Adjusted OIBDA Net revenue Adjusted OIBDA Net revenue Adjusted OIBDA QxH $ 8,277 1,536 8,544 1,630 6,140 1,455 QVC-International 2,709 446 2,738 429 2,631 451 Consolidated QVC $ 10,986 1,982 11,282 2,059 8,771 1,906 Other information Years ended December 31, 2019 2018 2017 (in millions) Depreciation Amortization Depreciation Amortization Depreciation Amortization QxH $ 113 269 118 227 93 330 QVC-International 73 13 56 10 62 34 Consolidated QVC $ 186 282 174 237 155 364 Years ended December 31, 2019 2018 (in millions) Total assets Capital expenditures Total assets Capital expenditures QxH $ 12,659 257 12,702 161 QVC-International 2,268 34 2,154 67 Consolidated QVC $ 14,927 291 14,856 228 Property and equipment, net of accumulated depreciation, by segment were as follows: December 31, (in millions) 2019 2018 QxH $ 800 712 QVC-International 415 453 Consolidated QVC $ 1,215 1,165 The following table provides a reconciliation of Adjusted OIBDA to income before income taxes: Years ended December 31, (in millions) 2019 2018 2017 Adjusted OIBDA $ 1,982 2,059 1,906 Impairment loss (147 ) (30 )  Transaction related costs (1 ) (60 ) (39 ) Stock-based compensation (39 ) (46 ) (39 ) Depreciation and amortization (468 ) (411 ) (519 ) Operating Income 1,327 1,512 1,309 Equity in losses of investee  (3 ) (3 ) Losses on financial instruments (5 ) (2 )  Interest expense, net (240 ) (243 ) (214 ) Foreign currency loss (3 )  (6 ) Loss on extinguishment of debt  (2 )  Income before income taxes $ 1,079 1,262 1,086 The following table summarizes net revenues based on revenues generated by subsidiaries located within the identified geographic area: Years ended December 31, (in millions) 2019 2018 2017 United States $ 8,277 8,544 6,140 Japan 1,028 947 934 Germany 890 943 899 United Kingdom 640 679 640 Other countries 151 169 158 Consolidated QVC $ 10,986 11,282 8,771 The following table summarizes property and equipment, net of accumulated depreciation, based on physical location: December 31, (in millions) 2019 2018 United States $ 800 712 Germany 154 161 Japan 153 165 United Kingdom 75 77 Other countries 33 50 Consolidated QVC $ 1,215 1,165