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Segment Information
 6 Months Ended
Jun. 30, 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 June 30, 2017
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
245,472

 
$
21,373

 
$
—

 
$
266,845

Distribution
359,451

 
89,471

 
(5,222
)
 
443,700

Consolidated revenues, net
$
604,923

 
$
110,844

 
$
(5,222
)
 
$
710,545

Operating income (loss)
$
211,623

 
$
(31,222
)
 
$
(4,611
)
 
$
175,790

Share-based compensation expense
12,211

 
2,921

 
—

 
15,132

Restructuring (credit) expense
(97
)
 
16

 
—

 
(81
)
Impairment charges
—

 
17,112

 
—

 
17,112

Depreciation and amortization
8,430

 
12,176

 
—

 
20,606

Adjusted operating income
$
232,167

 
$
1,003

 
$
(4,611
)
 
$
228,559

(In thousands)
Three Months Ended June 30, 2016
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
239,331

 
$
25,564

 
$
—

 
$
264,895

Distribution
333,302

 
92,716

 
(6,081
)
 
419,937

Consolidated revenues, net
$
572,633

 
$
118,280

 
$
(6,081
)
 
$
684,832

Operating income (loss)
$
189,090

 
$
(7,819
)
 
$
(3,239
)
 
$
178,032

Share-based compensation expense
9,148

 
2,174

 
—

 
11,322

Restructuring expense
37

 
352

 
—

 
389

Depreciation and amortization
8,053

 
13,500

 
—

 
21,553

Adjusted operating income
$
206,328

 
$
8,207

 
$
(3,239
)
 
$
211,296

(In thousands)
Six Months Ended June 30, 2017
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
493,014

 
$
41,443

 
$
—

 
$
534,457

Distribution
727,056

 
176,198

 
(6,977
)
 
896,277

Consolidated revenues, net
$
1,220,070

 
$
217,641

 
$
(6,977
)
 
$
1,430,734

Operating income (loss)
$
461,230

 
$
(50,439
)
 
$
(3,330
)
 
$
407,461

Share-based compensation expense
22,119

 
5,476

 
—

 
27,595

Restructuring (credit) expense
(43
)
 
2,666

 
—

 
2,623

Impairment charges
—

 
17,112

 
—

 
17,112

Depreciation and amortization
16,834

 
27,265

 
—

 
44,099

Adjusted operating income
$
500,140

 
$
2,080

 
$
(3,330
)
 
$
498,890

Capital expenditures
$
8,294

 
$
31,642

 
$
—

 
$
39,936

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Six Months Ended June 30, 2016
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
503,183

 
$
48,413

 
$
—

 
$
551,596

Distribution
668,086

 
178,915

 
(7,186
)
 
839,815

Consolidated revenues, net
$
1,171,269

 
$
227,328

 
$
(7,186
)
 
$
1,391,411

Operating income (loss)
$
455,823

 
$
(16,403
)
 
$
(2,729
)
 
$
436,691

Share-based compensation expense
15,370

 
4,118

 
—

 
19,488

Restructuring expense
67

 
287

 
—

 
354

Depreciation and amortization
16,022

 
25,163

 
—

 
41,185

Adjusted operating income
$
487,282

 
$
13,165

 
$
(2,729
)
 
$
497,718

Capital expenditures
$
4,414

 
$
19,772

 
$
—

 
$
24,186


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 June 30,
 
Six Months Ended June 30,
2017
 
2016
 
2017
 
2016
Inter-segment revenues
 
 
 
 
 
 
 
National Networks
$
(5,142
)
 
$
(5,991
)
 
$
(6,866
)
 
$
(6,936
)
International and Other
(80
)
 
(90
)
 
(111
)
 
(250
)
 
$
(5,222
)
 
$
(6,081
)
 
$
(6,977
)
 
$
(7,186
)

The table below summarizes revenues based on customer location:
(In thousands)
Three Months Ended June 30,
 
Six Months Ended June 30,
2017
 
2016
 
2017
 
2016
Revenues
 
 
 
 
 
 
 
United States
$
548,555

 
$
542,803

 
$
1,148,610

 
$
1,117,137

Europe
108,076

 
103,560

 
186,750

 
197,522

Other
53,914

 
38,469

 
95,374

 
76,752

 
$
710,545

 
$
684,832

 
$
1,430,734

 
$
1,391,411


The table below summarizes property and equipment based on asset location:
(In thousands)
June 30, 2017
 
December 31, 2016
Property and equipment, net
 
 
 
United States
$
112,640

 
$
104,939

Europe
26,329

 
39,976

Other
20,184

 
21,721

 
$
159,153

 
$
166,636