Segment Information

3 Months Ended

Mar. 31, 2017

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 within operating expenses 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, 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 (“AOI”), a non-GAAP measure, defined as operating income (loss) before depreciation and amortization, share-based compensation expense or benefit, impairment charges, and restructuring expense or credit. 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.

(In thousands)	Three Months Ended March 31, 2017
	National Networks		International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	247,542	$	20,070		$	—		$	267,612
Distribution	367,605		86,727			(1,755		)	452,577
Consolidated revenues, net	$	615,147	$	106,797		$	(1,755	)	$	720,189
Operating income (loss)	$	249,607	$	(19,217	)	$	1,281		$	231,671
Share-based compensation expense	9,908		2,556			—			12,464
Restructuring expense	54		2,650			—			2,704
Depreciation and amortization	8,404		15,089			—			23,493
Adjusted operating income	$	267,973	$	1,078		$	1,281		$	270,332
Capital expenditures	$	5,135	$	15,071		$	—		$	20,206
(In thousands)	Three Months Ended March 31, 2016
	National Networks		International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	263,852	$	22,825		$	—		$	286,677
Distribution	334,783		86,223			(1,104		)	419,902
Consolidated revenues, net	$	598,635	$	109,048		$	(1,104	)	$	706,579
Operating income (loss)	$	266,732	$	(8,436	)	$	511		$	258,807
Share-based compensation expense	6,221		1,944			—			8,165
Restructuring expense (credit)	30		(65		)	—			(35		)
Depreciation and amortization	7,969		11,663			—			19,632
Adjusted operating income	$	280,952	$	5,106		$	511		$	286,569
Capital expenditures	$	1,980	$	10,407		$	—		$	12,387

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.

(In thousands)	Three Months Ended March 31,
	2017			2016
Inter-segment revenues
National Networks	$	(1,724	)	$	(944	)
International and Other	(31		)	(160		)
	$	(1,755	)	$	(1,104	)

The table below summarizes revenues based on customer location:

(In thousands)	Three Months Ended March 31,
	2017		2016
Revenues
United States	$	600,055	$	574,334
Europe	78,675		93,962
Other	41,459		38,283
	$	720,189	$	706,579

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

(In thousands)	March 31, 2017		December 31, 2016
Property and equipment, net
United States	$	108,890	$	104,939
Europe	39,342		39,976
Other	20,991		21,721
	$	169,223	$	166,636