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Segment Information
 9 Months Ended
Sep. 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 and related charges (including gains or losses on sales or dispositions of businesses), 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 September 30, 2017
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
197,891

 
$
20,691

 
$
—

 
$
218,582

Distribution
343,551

 
92,069

 
(6,179
)
 
429,441

Consolidated revenues, net
$
541,442

 
$
112,760

 
$
(6,179
)
 
$
648,023

Operating income (loss)
$
179,624

 
$
(18,782
)
 
$
(7,488
)
 
$
153,354

Share-based compensation expense
11,598

 
2,219

 
—

 
13,817

Restructuring (credit) expense
(10
)
 
1,274

 
—

 
1,264

Impairment and related charges
—

 
11,036

 
—

 
11,036

Depreciation and amortization
8,482

 
12,456

 
—

 
20,938

Adjusted operating income
$
199,694

 
$
8,203

 
$
(7,488
)
 
$
200,409

(In thousands)
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

Operating income (loss)
$
139,148

 
$
(16,668
)
 
$
(5,343
)
 
$
117,137

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

Adjusted operating income
$
162,503

 
$
10,953

 
$
(5,343
)
 
$
168,113

(In thousands)
Nine Months Ended September 30, 2017
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
690,906

 
$
62,134

 
$
—

 
$
753,040

Distribution
1,070,606

 
268,267

 
(13,156
)
 
1,325,717

Consolidated revenues, net
$
1,761,512

 
$
330,401

 
$
(13,156
)
 
$
2,078,757

Operating income (loss)
$
640,855

 
$
(69,222
)
 
$
(10,818
)
 
$
560,815

Share-based compensation expense
33,717

 
7,695

 
—

 
41,412

Restructuring (credit) expense
(53
)
 
3,940

 
—

 
3,887

Impairment and related charges
—

 
28,148

 
—

 
28,148

Depreciation and amortization
25,315

 
39,722

 
—

 
65,037

Adjusted operating income
$
699,834

 
$
10,283

 
$
(10,818
)
 
$
699,299

Capital expenditures
$
20,311

 
$
41,483

 
$
—

 
$
61,794

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
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

Operating income (loss)
$
594,969

 
$
(33,071
)
 
$
(8,070
)
 
$
553,828

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

Adjusted operating income
$
649,782

 
$
24,118

 
$
(8,070
)
 
$
665,830

Capital expenditures
$
10,165

 
$
34,340

 
$
—

 
$
44,505


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 September 30,
 
Nine Months Ended September 30,
2017
 
2016
 
2017
 
2016
Inter-segment revenues
 
 
 
 
 
 
 
National Networks
$
(6,179
)
 
$
(5,079
)
 
$
(13,045
)
 
$
(12,015
)
International and Other
—

 
(8
)
 
(111
)
 
(258
)
 
$
(6,179
)
 
$
(5,087
)
 
$
(13,156
)
 
$
(12,273
)

The table below summarizes revenues based on customer location:
(In thousands)
Three Months Ended September 30,
 
Nine Months Ended September 30,
2017
 
2016
 
2017
 
2016
Revenues
 
 
 
 
 
 
 
United States
$
504,732

 
$
499,316

 
$
1,653,342

 
$
1,616,453

Europe
91,447

 
93,356

 
278,198

 
290,879

Other
51,844

 
41,974

 
147,217

 
118,725

 
$
648,023

 
$
634,646

 
$
2,078,757

 
$
2,026,057


The table below summarizes property and equipment based on asset location:
(In thousands)
September 30, 2017
 
December 31, 2016
Property and equipment, net
 
 
 
United States
$
126,050

 
$
104,939

Europe
27,001

 
39,976

Other
19,570

 
21,721

 
$
172,621

 
$
166,636