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)	Year Ended December 31, 2017
(In thousands)	National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	959,551		$	89,894		$	—		$	1,049,445
Distribution	1,408,064			367,288			(19,106		)	1,756,246
Consolidated revenues, net	$	2,367,615		$	457,182		$	(19,106	)	$	2,805,691
Operating income (loss)	$	817,566		$	(88,894	)	$	(6,313	)	$	722,359
Share-based compensation expense	43,697			9,848			—			53,545
Restructuring (credit) expense	(53		)	6,181			—			6,128
Impairment and related charges	—			28,148			—			28,148
Depreciation and amortization	33,702			60,936			—			94,638
Adjusted operating income	$	894,912		$	16,219		$	(6,313	)	$	904,818
Capital expenditures	$	25,333		$	54,716		$	—		$	80,049



(In thousands)	Year Ended December 31, 2016
(In thousands)	National Networks		International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	990,508	$	94,467		$	(1,000	)	$	1,083,975
Distribution	1,320,532		365,529			(14,382		)	1,671,679
Consolidated revenues, net	$	2,311,040	$	459,996		$	(15,382	)	$	2,755,654
Operating income (loss)	$	784,027	$	(120,914	)	$	(5,557	)	$	657,556
Share-based compensation expense	30,569		8,328			—			38,897
Restructuring expense	8,516		20,987			—			29,503
Impairment and related charges	—		67,805			—			67,805
Depreciation and amortization	32,376		52,402			—			84,778
Adjusted operating income	$	855,488	$	28,608		$	(5,557	)	$	878,539
Capital expenditures	$	15,947	$	63,273		$	—		$	79,220



(In thousands)	Year Ended December 31, 2015
(In thousands)	National Networks		International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	945,288	$	82,972		$	—		$	1,028,260
Distribution	1,190,079		369,606			(7,010		)	1,552,675
Consolidated revenues, net	$	2,135,367	$	452,578		$	(7,010	)	$	2,580,935
Operating income (loss)	$	754,243	$	(42,542	)	$	(2,508	)	$	709,193
Share-based compensation expense	23,814		7,206			—			31,020
Restructuring expense	3,194		11,804			—			14,998
Depreciation and amortization	29,742		53,289			—			83,031
Adjusted operating income	$	810,993	$	29,757		$	(2,508	)	$	838,242
Capital expenditures	$	24,386	$	43,935		$	—		$	68,321

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)	Years Ended December 31,
(In thousands)	2017			2016			2015
Inter-segment revenues
National Networks	$	(17,634	)	$	(14,963	)	$	(6,719	)
International and Other	(1,472		)	(419		)	(291		)
	$	(19,106	)	$	(15,382	)	$	(7,010	)

One customer primarily within the National Networks segment accounted for approximately 11% of consolidated revenues, net for the years ended December 31, 2017 and 2016 . No customers accounted for more than 10% of revenues, net for the year ended December 31, 2015.

The table below summarizes revenue based on customer location:



(In thousands)	Year Ended December 31, 2017		Year Ended December 31, 2016
Revenue
United States	$	2,244,057	$	2,215,430
Europe	369,815		384,234
Other	191,819		155,990
	$	2,805,691	$	2,755,654

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



(In thousands)	December 31, 2017		December 31, 2016
Property and equipment, net
United States	$	136,203	$	104,939
Europe	28,261		39,976
Other	19,050		21,721
	$	183,514	$	166,636