Segment Information

9 Months Ended

Sep. 30, 2016

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 income (a non-GAAP measure) defined as operating income (loss) before depreciation and amortization, share-based compensation expense or benefit, and restructuring expense or credit). We renamed this non-GAAP performance measure to adjusted operating income (“AOI”), formerly referred to as adjusted operating cash flow (“AOCF”). Other than the title, there is no change to the definition of this non-GAAP measure.

The Company has presented the components that reconcile adjusted operating income to operating income, an accepted GAAP measure, and other information as to the continuing operations of the Company’s operating segments below.

	Three Months Ended September 30, 2016
	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	189,300		$	21,424		$	—		$	210,724
Distribution	336,413			92,596			(5,087		)	423,922
Consolidated revenues, net	$	525,713		$	114,020		$	(5,087	)	$	634,646
Adjusted operating income	$	162,503		$	10,953		$	(5,343	)	$	168,113
Share-based compensation expense	(7,212		)	(2,170		)	—			(9,382		)
Restructuring expense	(8,103		)	(11,209		)	—			(19,312		)
Depreciation and amortization	(8,040		)	(14,242		)	—			(22,282		)
Operating income (loss)	$	139,148		$	(16,668	)	$	(5,343	)	$	117,137
	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 income	$	186,574		$	6,749		$	(2,741	)	$	190,582
Share-based compensation expense	(6,039		)	(1,782		)	—			(7,821		)
Restructuring expense	(100		)	(2,531		)	—			(2,631		)
Depreciation and amortization	(7,337		)	(13,525		)	—			(20,862		)
Operating income (loss)	$	173,098		$	(11,089	)	$	(2,741	)	$	159,268

	Nine Months Ended September 30, 2016
	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	692,483		$	69,837		$	—		$	762,320
Distribution	1,004,499			271,511			(12,273		)	1,263,737
Consolidated revenues, net	$	1,696,982		$	341,348		$	(12,273	)	$	2,026,057
Adjusted operating income	$	649,782		$	24,118		$	(8,070	)	$	665,830
Share-based compensation expense	(22,581		)	(6,288		)	—			(28,869		)
Restructuring expense	(8,170		)	(11,496		)	—			(19,666		)
Depreciation and amortization	(24,062		)	(39,405		)	—			(63,467		)
Operating income (loss)	$	594,969		$	(33,071	)	$	(8,070	)	$	553,828
Capital expenditures	$	10,165		$	34,340		$	—		$	44,505
	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 income	$	622,385		$	21,038		$	(2,294	)	$	641,129
Share-based compensation expense	(18,492		)	(5,418		)	—			(23,910		)
Restructuring expense	(817		)	(5,124		)	—			(5,941		)
Depreciation and amortization	(21,911		)	(40,518		)	—			(62,429		)
Operating income (loss)	$	581,165		$	(30,022	)	$	(2,294	)	$	548,849
Capital expenditures	$	17,095		$	31,715		$	—		$	48,810

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Inter-segment revenues
National Networks	$	(5,079	)	$	(3,563	)	$	(12,015	)	$	(4,351	)
International and Other	(8		)	(15		)	(258		)	(101		)
	$	(5,087	)	$	(3,578	)	$	(12,273	)	$	(4,452	)

The table below summarizes revenues based on customer location:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Revenues
United States	$	499,316	$	512,062	$	1,616,453	$	1,548,145
Europe	93,356		84,415		290,879		238,357
Other	41,974		35,688		118,725		115,483
	$	634,646	$	632,165	$	2,026,057	$	1,901,985

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

	September 30, 2016		December 31, 2015
Property and equipment, net
United States	$	95,589	$	93,951
Europe	61,914		48,043
Other	20,191		21,866
	$	177,694	$	163,860