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Segment Information
9 Months Ended
Sep. 30, 2015
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). 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.
 
Three Months Ended September 30, 2015
 
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
210,194

 
$
20,645

 
$

 
$
230,839

Distribution
311,446

 
93,458

 
(3,578
)
 
401,326

Consolidated revenues, net
$
521,640

 
$
114,103

 
$
(3,578
)
 
$
632,165

Adjusted operating cash flow
$
186,574

 
$
6,749

 
$
(2,741
)
 
$
190,582

Depreciation and amortization
(7,337
)
 
(13,525
)
 

 
(20,862
)
Share-based compensation expense
(6,039
)
 
(1,782
)
 

 
(7,821
)
Restructuring expense
(100
)
 
(2,531
)
 

 
(2,631
)
Operating income (loss)
$
173,098

 
$
(11,089
)
 
$
(2,741
)
 
$
159,268

 
 
 
 
 
 
 
 
 
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


 
Nine Months Ended September 30, 2015
 
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
656,345

 
$
61,226

 
$

 
$
717,571

Distribution
916,751

 
272,115

 
(4,452
)
 
1,184,414

Consolidated revenues, net
$
1,573,096

 
$
333,341

 
$
(4,452
)
 
$
1,901,985

Adjusted operating cash flow
$
622,385

 
$
21,038

 
$
(2,294
)
 
$
641,129

Depreciation and amortization
(21,911
)
 
(40,518
)
 

 
(62,429
)
Share-based compensation expense
(18,492
)
 
(5,418
)
 

 
(23,910
)
Restructuring expense
(817
)
 
(5,124
)
 

 
(5,941
)
Operating income (loss)
$
581,165

 
$
(30,022
)
 
$
(2,294
)
 
$
548,849

Capital expenditures
$
17,095

 
$
31,715

 
$

 
$
48,810

 
 
 
 
 
 
 
 
 
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


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 distribution licensing revenues recognized between the National Networks and International and Other segments.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Inter-segment revenues
 
 
 
 
 
 
 
National Networks
$
(3,563
)
 
$
(407
)
 
$
(4,351
)
 
$
(1,397
)
International and Other
(15
)
 
(170
)
 
(101
)
 
(395
)
 
$
(3,578
)
 
$
(577
)
 
$
(4,452
)
 
$
(1,792
)

The table below summarizes revenues based on customer location:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Revenues
 
 
 
 
 
 
 
United States
$
512,062

 
$
399,597

 
$
1,548,145

 
$
1,232,357

Europe
84,415

 
89,088

 
238,357

 
252,724

Other
35,688

 
30,865

 
115,483

 
81,116

 
$
632,165

 
$
519,550

 
$
1,901,985

 
$
1,566,197


The table below summarizes property and equipment based on asset location:
 
September 30, 2015
 
December 31, 2014
Property and equipment, net
 
 
 
United States
$
86,024

 
$
79,832

Europe
39,130

 
33,380

Other
20,063

 
20,632

 
$
145,217

 
$
133,844