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Segment Information
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
Segment Information
Segment Information
The Company classifies its operations into two operating segments: National Networks and International and Other. These operating segments represent strategic business units that are managed separately.
The Company generally allocates all corporate overhead costs to the Company’s two operating segments based upon their proportionate estimated usage of services, including 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.
The Company evaluates segment performance based on several factors, of which the primary financial measure is operating segment adjusted operating cash flow (defined as operating income (loss) before depreciation and amortization, share-based compensation expense or benefit, restructuring expense or credit and the litigation settlement gain recorded in connection with the settlement with DISH Network), a non-GAAP measure. The Company does not consider the one-time litigation settlement gain with DISH Network to be indicative of its ongoing operating performance. The Company has presented the components that reconcile adjusted operating cash flow to operating income, an accepted GAAP measure and other information as to the continuing operations of the Company’s operating segments below.
 
Year Ended December 31, 2013
 
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
662,789

 
$
—

 
$
—

 
$
662,789

Distribution
822,227

 
122,429

 
(15,587
)
 
929,069

Consolidated revenues, net
$
1,485,016

 
$
122,429

 
$
(15,587
)
 
$
1,591,858

Adjusted operating cash flow (deficit)
$
555,911

 
$
(35,466
)
 
$
3,744

 
$
524,189

Depreciation and amortization
(37,873
)
 
(16,794
)
 
—

 
(54,667
)
Share-based compensation expense
(16,213
)
 
(4,086
)
 
—

 
(20,299
)
Litigation settlement gain
—

 
132,944

 
—

 
132,944

Operating income
$
501,825

 
$
76,598

 
$
3,744

 
$
582,167

Capital expenditures
$
5,093

 
$
19,210

 
$
—

 
$
24,303

 
Year Ended December 31, 2012
 
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
522,917

 
$
147

 
$
—

 
$
523,064

Distribution
731,269

 
114,394

 
(16,150
)
 
829,513

Consolidated revenues, net
$
1,254,186

 
$
114,541

 
$
(16,150
)
 
$
1,352,577

Adjusted operating cash flow (deficit)
$
492,129

 
$
(30,040
)
 
$
3,328

 
$
465,417

Depreciation and amortization
(70,436
)
 
(14,944
)
 
—

 
(85,380
)
Share-based compensation expense
(13,576
)
 
(3,626
)
 
—

 
(17,202
)
Restructuring credit
—

 
3

 
—

 
3

Operating income (loss)
$
408,117

 
$
(48,607
)
 
$
3,328

 
$
362,838

Capital expenditures
$
5,541

 
$
13,016

 
$
—

 
$
18,557

 
Year Ended December 31, 2011
 
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
447,449

 
$
177

 
$
(454
)
 
$
447,172

Distribution
634,909

 
125,396

 
(19,736
)
 
740,569

Consolidated revenues, net
$
1,082,358

 
$
125,573

 
$
(20,190
)
 
$
1,187,741

Adjusted operating cash flow (deficit)
$
447,555

 
$
(4,976
)
 
$
(866
)
 
$
441,713

Depreciation and amortization
(85,701
)
 
(14,147
)
 
—

 
(99,848
)
Share-based compensation expense
(12,582
)
 
(3,007
)
 
—

 
(15,589
)
Restructuring credit
—

 
240

 
—

 
240

Operating income (loss)
$
349,272

 
$
(21,890
)
 
$
(866
)
 
$
326,516

Capital expenditures
$
2,817

 
$
12,554

 
$
—

 
$
15,371


Inter-segment eliminations are primarily revenues recognized by the International and Other segment for transmission revenues recognized by AMC Networks Broadcasting & Technology.
 
Years Ended December 31,
 
2013
 
2012
 
2011
Inter-segment revenues
 
 
 
 
 
National Networks
$
(184
)
 
$
(569
)
 
$
(454
)
International and Other
(15,403
)
 
(15,581
)
 
(19,736
)
 
$
(15,587
)
 
$
(16,150
)
 
$
(20,190
)

One customer accounted for 10% and 11% of the consolidated revenues, net for the years ended December 31, 2013 and 2012. Two customers accounted for 10% and 12% of consolidated revenues, net for the year ended December 31, 2011.
Failure to renew affiliation agreements with the Company’s largest customers, or renewal on less favorable terms, or the termination of those agreements could have a material adverse effect on the Company’s business. A reduced distribution of the Company’s programming networks would adversely affect the Company’s affiliation fee revenues, and impact the Company’s ability to sell advertising or the rates the Company charges for such advertising.
Substantially all revenues and assets of the Company are attributed to or located in the U.S.