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Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
The Company classifies its operations into two operating segments: National Networks and International and Other. These reportable 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 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 and other information as to the continuing operations of the Company’s operating segments below.
During the three months ended March 31, 2014, following the Chellomedia acquisition on January 31, 2014 (see Note 2), the manner in which the President and Chief Executive Officer, who is the chief operating decision maker, evaluates performance and makes decisions about how to allocate resources changed, resulting in the reorganization of the Company's operating segments. The National Networks operating segment now includes the results of AMC and Sundance Channel in Canada and AMC Networks Broadcasting & Technology, the Company's network technical services business, which primarily services the nationally distributed programming networks of the Company. Previously, the results of these operations were included in the International and Other operating segment. The results of Chellomedia are included in the International and Other operating segment. Operating segment information for the prior period has been recast to reflect these changes.

 
Three Months Ended March 31, 2014
 
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
207,903

 
$
8,015

 
$
—

 
$
215,918

Distribution
240,777

 
68,563

 
(704
)
 
308,636

Consolidated revenues, net
$
448,680

 
$
76,578

 
$
(704
)
 
$
524,554

Adjusted operating cash flow (deficit)
$
177,745

 
$
(11,047
)
 
$
409

 
$
167,107

Depreciation and amortization
(4,907
)
 
(9,487
)
 
—

 
(14,394
)
Share-based compensation expense
(4,167
)
 
(913
)
 
—

 
(5,080
)
Operating income
$
168,671

 
$
(21,447
)
 
$
409

 
$
147,633

Capital expenditures
$
1,177

 
$
5,012

 
$
—

 
$
6,189

 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2013
 
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
163,960

 
$
—

 
$
—

 
$
163,960

Distribution
207,710

 
10,422

 
(131
)
 
218,001

Consolidated revenues, net
$
371,670

 
$
10,422

 
$
(131
)
 
$
381,961

Adjusted operating cash flow (deficit)
$
164,594

 
$
(15,394
)
 
$
966

 
$
150,166

Depreciation and amortization
(15,299
)
 
(3,046
)
 
—

 
(18,345
)
Share-based compensation expense
(3,784
)
 
(553
)
 
—

 
(4,337
)
Operating income (loss)
$
145,511

 
$
(18,993
)
 
$
966

 
$
127,484

Capital expenditures
$
2,203

 
$
5,800

 
$
—

 
$
8,003


Inter-segment eliminations are primarily revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment.
 
Three Months Ended March 31,
 
2014
 
2013
Inter-segment revenues
 
 
 
National Networks
$
(674
)
 
$
(131
)
International and Other
(30
)
 
—

 
$
(704
)
 
$
(131
)

The table below summarizes revenue based on customer location:
 
Three Months Ended March 31, 2014
Revenue
 
United States
$
449,150

Europe
49,782

Other
25,622

 
$
524,554


Prior to the acquisition of Chellomedia, substantially all revenues and assets of the Company were attributed to or located in the U.S.