Segment Information

6 Months Ended

Jun. 30, 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, restructuring expense or credit and the litigation settlement gain recorded in connection with the settlement with DISH Network). 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 reportable segments below.

As of 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 AMC Networks International 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 June 30, 2014
	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	163,836		$	16,475		$	—		$	180,311
Distribution	234,168			108,125			(511		)	341,782
Consolidated revenues, net	$	398,004		$	124,600		$	(511	)	$	522,093
Adjusted operating cash flow	$	136,918		$	19,537		$	464		$	156,919
Depreciation and amortization	(5,046		)	(12,485		)	—			(17,531		)
Share-based compensation expense	(6,624		)	(2,136		)	—			(8,760		)
Restructuring expense	$	—		$	(1,153	)	$	—		$	(1,153	)
Operating income	$	125,248		$	3,763		$	464		$	129,475
	Three Months Ended June 30, 2013
	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	147,243		$	—		$	—		$	147,243
Distribution	218,752			13,389			(62		)	232,079
Consolidated revenues, net	$	365,995		$	13,389		$	(62	)	$	379,322
Adjusted operating cash flow (deficit)	$	151,195		$	(13,976	)	$	1,073		$	138,292
Depreciation and amortization	(15,177		)	(3,131		)	—			(18,308		)
Share-based compensation expense	(4,951		)	(653		)	—			(5,604		)
Litigation settlement gain	$	—		$	132,944		$	—		$	132,944
Operating income	$	131,067		$	115,184		$	1,073		$	247,324

	Six Months Ended June 30, 2014
	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	371,739		$	24,489		$	—		$	396,228
Distribution	474,945			176,689			(1,215		)	650,419
Consolidated revenues, net	$	846,684		$	201,178		$	(1,215	)	$	1,046,647
Adjusted operating cash flow	$	314,664		$	8,488		$	873		$	324,025
Depreciation and amortization	(9,953		)	(21,972		)	—			(31,925		)
Share-based compensation expense	(10,789		)	(3,050		)	—			(13,839		)
Restructuring expense	$	—		$	(1,153	)	$	—		$	(1,153	)
Operating income	$	293,922		$	(17,687	)	$	873		$	277,108
Capital expenditures	$	7,204		$	11,551		$	—		$	18,755
	Six Months Ended June 30, 2013
	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	311,203		$	—		$	—		$	311,203
Distribution	426,463			23,810			(193		)	450,080
Consolidated revenues, net	$	737,666		$	23,810		$	(193	)	$	761,283
Adjusted operating cash flow (deficit)	$	315,790		$	(29,372	)	$	2,040		$	288,458
Depreciation and amortization	(30,476		)	(6,177		)	—			(36,653		)
Share-based compensation expense	(8,735		)	(1,206		)	—			(9,941		)
Litigation settlement gain	$	—		$	132,944		$	—		$	132,944
Operating income	$	276,579		$	96,189		$	2,040		$	374,808
Capital expenditures	$	4,698		$	8,972		$	—		$	13,670

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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Inter-segment revenues
National Networks	$	(316	)	$	(80	)	$	(990	)	$	(80	)
International and Other	(195		)	18			(225		)	(113		)
	$	(511	)	$	(62	)	$	(1,215	)	$	(193	)

The table below summarizes revenue based on customer location:

	Three Months Ended June 30, 2014		Six Months Ended June 30, 2014
Revenue
United States	$	383,610	$	832,760
Europe	107,231		157,014
Other	31,252		56,873
	$	522,093	$	1,046,647

The table below summarizes property and equipment based on asset location:

	June 30, 2014
Property and Equipment
United States	$	72,765
Europe	36,924
Other	20,351
	$	130,040

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