Segment Information

9 Months Ended

Sep. 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 prior periods has been recast to reflect these changes.

	Three Months Ended September 30, 2014
	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	137,993		$	15,991		$	—		$	153,984
Distribution	259,422			106,721			(577		)	365,566
Consolidated revenues, net	$	397,415		$	122,712		$	(577	)	$	519,550
Adjusted operating cash flow	$	128,582		$	12,875		$	416		$	141,873
Depreciation and amortization	(5,205		)	(13,090		)	—			(18,295		)
Share-based compensation expense	(5,661		)	(2,069		)	—			(7,730		)
Restructuring expense	$	(2,462	)	$	(3,157	)	$	—		$	(5,619	)
Operating income (loss)	$	115,254		$	(5,441	)	$	416		$	110,229
	Three Months Ended September 30, 2013
	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	146,467		$	—		$	—		$	146,467
Distribution	234,680			14,183			(2		)	248,861
Consolidated revenues, net	$	381,147		$	14,183		$	(2	)	$	395,328
Adjusted operating cash flow (deficit)	$	150,387		$	(14,006	)	$	1,049		$	137,430
Depreciation and amortization	(6,635		)	(3,300		)	—			(9,935		)
Share-based compensation expense	(4,463		)	(645		)	—			(5,108		)
Operating income (loss)	$	139,289		$	(17,951	)	$	1,049		$	122,387

	Nine Months Ended September 30, 2014
	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	509,733		$	40,481		$	—		$	550,214
Distribution	734,366			283,409			(1,792		)	1,015,983
Consolidated revenues, net	$	1,244,099		$	323,890		$	(1,792	)	$	1,566,197
Adjusted operating cash flow	$	443,246		$	21,363		$	1,289		$	465,898
Depreciation and amortization	(15,158		)	(35,062		)	—			(50,220		)
Share-based compensation expense	(16,450		)	(5,119		)	—			(21,569		)
Restructuring expense	$	(2,462	)	$	(4,310	)	$	—		$	(6,772	)
Operating income (loss)	$	409,176		$	(23,128	)	$	1,289		$	387,337
Capital expenditures	$	7,744		$	16,596		$	—		$	24,340
	Nine Months Ended September 30, 2013
	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	457,670		$	—		$	—		$	457,670
Distribution	661,142			37,994			(195		)	698,941
Consolidated revenues, net	$	1,118,812		$	37,994		$	(195	)	$	1,156,611
Adjusted operating cash flow (deficit)	$	466,176		$	(43,376	)	$	3,088		$	425,888
Depreciation and amortization	(37,111		)	(9,477		)	—			(46,588		)
Share-based compensation expense	(13,198		)	(1,851		)	—			(15,049		)
Litigation settlement gain	$	—		$	132,944		$	—		$	132,944
Operating income	$	415,867		$	78,240		$	3,088		$	497,195
Capital expenditures	$	6,978		$	11,358		$	—		$	18,336

Inter-segment eliminations are primarily revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment as well as licensing revenues recognized between the National Networks and International and Other segments.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Inter-segment revenues
National Networks	$	(407	)	$	—		$	(1,397	)	$	(80	)
International and Other	(170		)	(2		)	(395		)	(115		)
	$	(577	)	$	(2	)	$	(1,792	)	$	(195	)

The table below summarizes revenue based on customer location:

	Three Months Ended September 30, 2014		Nine Months Ended September 30, 2014
Revenue
United States	$	399,597	$	1,232,357
Europe	89,088		252,724
Other	30,865		81,116
	$	519,550	$	1,566,197

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

	September 30, 2014
Property and Equipment, net
United States	$	70,126
Europe	33,913
Other	19,724
	$	123,763

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