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Segment Information
 12 Months Ended
Dec. 31, 2018
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. The Company defines AOI 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), restructuring expense or credit and the Company’s proportionate share of adjusted operating income (loss) from greater than 50% owned equity method investees. 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, 2018
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
944,675

 
$
91,404

 
$
—

 
$
1,036,079

Distribution
1,468,650

 
506,902

 
(39,702
)
 
1,935,850

Consolidated revenues, net
$
2,413,325

 
$
598,306

 
$
(39,702
)
 
$
2,971,929

Operating income (loss)
$
825,770

 
$
(93,326
)
 
$
(5,535
)
 
$
726,909

Share-based compensation expense
48,621

 
12,358

 
—

 
60,979

Restructuring expense (credit)
17,160

 
35,189

 
(6,502
)
 
45,847

Impairment and related charges
—

 
4,486

 
—

 
4,486

Depreciation and amortization
33,728

 
57,553

 
—

 
91,281

Equity investees (>50% interest) AOI
—

 
3,043

 
—

 
3,043

Adjusted operating income
$
925,279

 
$
19,303

 
$
(12,037
)
 
$
932,545

Capital expenditures
$
16,316

 
$
73,486

 
$
—

 
$
89,802

(In thousands)
Year Ended December 31, 2017
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 expense (credit)
(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
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


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,
2018
 
2017
 
2016
Inter-segment revenues
 
 
 
 
 
National Networks
$
(33,600
)
 
$
(17,634
)
 
$
(14,963
)
International and Other
(6,102
)
 
(1,472
)
 
(419
)
 
$
(39,702
)
 
$
(19,106
)
 
$
(15,382
)

One customer primarily within the National Networks segment accounted for approximately 10% revenues, net for the year ended December 31, 2018 and 11% of consolidated revenues, net for the years ended December 31, 2017 and 2016, respectively.
The table below summarizes revenue based on customer location:
(In thousands)
Year Ended December 31, 2018
 
Year Ended December 31, 2017
Revenue
 
 
 
United States
$
2,389,624

 
$
2,244,057

Europe
394,235

 
369,815

Other
188,070

 
191,819

 
$
2,971,929

 
$
2,805,691


The table below summarizes property and equipment based on asset location:
(In thousands)
December 31, 2018
 
December 31, 2017
Property and equipment, net
 
 
 
United States
$
202,833

 
$
136,203

Europe
27,218

 
28,261

Other
16,211

 
19,050

 
$
246,262

 
$
183,514