Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

Note 9.     Segment Information

The Company classifies its operations into two reportable segments: National Networks, and International and Other. These reportable segments are strategic business units that are managed separately.

The Company generally allocates all corporate overhead costs, and includes such costs as executive salaries and benefits, costs of maintaining corporate headquarters, facilities and common support functions (such as human resources, legal, finance, tax, accounting, audit, treasury, risk management, strategic planning and information technology) as well as sales support functions and creative and production services to the Company's two reportable segments.

The Company evaluates segment performance based on several factors, of which the primary financial measure is business segment adjusted operating cash flow (defined as operating income (loss) before depreciation and amortization, share-based compensation expense or benefit and restructuring expense or credit), a non-GAAP measure. The Company has presented the components that reconcile adjusted operating cash flow to operating income, an accepted GAAP measure. Information as to the operations of the Company's reportable segments is set forth below.

		00000000			00000000			00000000			00000000
	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Revenues, net from continuing operations
National Networks	$	266,728		$	241,397		$	518,573		$	473,433
International and Other		30,226			23,341			55,607			43,223
Inter-segment eliminations		(4,989	)		(4,725	)		(9,312	)		(8,271	)
Total	$	291,965		$	260,013		$	564,868		$	508,385

Inter-segment eliminations are primarily revenues recognized by the International and Other segment for the licensing of its program rights by the national programming networks and transmission revenues recognized by AMC Networks Broadcasting & Technology.

		00000000			00000000			00000000			00000000
	Three Months Ended June  30,						Six Months Ended June 30,
	2011			2010			2011			2010
Inter-segment revenues
National Networks	$	(185	)	$	(230	)	$	(255	)	$	(325	)
International and Other		(4,804	)		(4,495	)		(9,057	)		(7,946	)
	$	(4,989	)	$	(4,725	)	$	(9,312	)	$	(8,271	)

Reconciliation (by Segment and in Total) of Adjusted Operating Cash Flow to Operating Income (Loss) from Continuing Operations

		00000000			00000000			00000000			00000000
	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Adjusted operating cash flow (deficit) from continuing operations
National Networks	$	116,892		$	108,790		$	223,248		$	209,062
International and Other		(4,758	)		(6,010	)		(11,862	)		(15,549	)
Inter-segment eliminations		(103	)		(212	)		193			402
	$	112,031		$	102,568		$	211,579		$	193,915
	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Depreciation and amortization included in continuing operations
National Networks	$	(21,741	)	$	(23,179	)	$	(43,052	)	$	(46,362	)
International and Other		(3,518	)		(3,485	)		(7,133	)		(6,992	)
	$	(25,259	)	$	(26,664	)	$	(50,185	)	$	(53,354	)

		000000000			000000000			000000000			000000000
	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Share-based compensation expense included in continuing operations
National Networks	$	(3,635	)	$	(3,471	)	$	(6,785	)	$	(6,556	)
International and Other		(878	)		(843	)		(1,705	)		(1,602	)
	$	(4,513	)	$	(4,314	)	$	(8,490	)	$	(8,158	)

		000000000		000000000		000000000		000000000
	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Restructuring credit included in continuing operations
National Networks	$	—	$	—	$	—	$	—
International and Other		15		48		49		260
	$	15	$	48	$	49	$	260

		000000000			000000000			000000000			000000000
	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Operating income (loss) from continuing operations
National Networks	$	91,516		$	82,140		$	173,411		$	156,144
International and Other		(9,139	)		(10,290	)		(20,651	)		(23,883	)
Inter-segment eliminations		(103	)		(212	)		193			402
	$	82,274		$	71,638		$	152,953		$	132,663

A reconciliation of reportable segment amounts to the Company's consolidated balances is as follows:

		0000000			0000000			0000000			0000000
	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Income from continuing operations before income taxes
Total operating income for reportable segments	$	82,274		$	71,638		$	152,953		$	132,663
Items excluded from operating income:
Interest expense		(15,353	)		(18,761	)		(33,703	)		(38,427	)
Interest income		163			557			620			1,107
Write-off of deferred financing costs		(5,703	)		—			(5,703	)		—
Loss on extinguishment of debt		(14,518	)		—			(14,518	)		—
Miscellaneous, net		7			(185	)		79			(159	)
Income from continuing operations before income taxes	$	46,870		$	53,249		$	99,728		$	95,184

The following table summarizes the Company's capital expenditures by reportable segment for the six months ended June 30:

	2011		2010
Capital expenditures
National Networks	$	1,850	$	450
International and Other		2,490		1,746
	$	4,340	$	2,196

Substantially all revenues and assets of the Company are attributed to or located in the U.S.