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Segment Information
 3 Months Ended
Mar. 31, 2019
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)
Three Months Ended March 31, 2019
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
239,089

 
$
21,206

 
$
—

 
$
260,295

Distribution
377,029

 
149,882

 
(2,985
)
 
523,926

Consolidated revenues, net
$
616,118

 
$
171,088

 
$
(2,985
)
 
$
784,221

Operating income (loss)
$
251,502

 
$
(13,748
)
 
$
7,109

 
$
244,863

Share-based compensation expense
16,269

 
3,630

 
—

 
19,899

Restructuring expense
303

 
3,035

 
(696
)
 
2,642

Depreciation and amortization
8,612

 
15,444

 
—

 
24,056

Equity investees (>50% interest) AOI
—

 
1,580

 
—

 
1,580

Adjusted operating income
$
276,686

 
$
9,941

 
$
6,413

 
$
293,040

(In thousands)
Three Months Ended March 31, 2018
National
Networks
 
International
and Other
 
Inter-segment
eliminations
 
Consolidated
Revenues, net
 
 
 
 
 
 
 
Advertising
$
225,730

 
$
22,510

 
$
—

 
$
248,240

Distribution
407,298

 
88,880

 
(3,595
)
 
492,583

Consolidated revenues, net
$
633,028

 
$
111,390

 
$
(3,595
)
 
$
740,823

Operating income (loss)
$
249,852

 
$
(16,814
)
 
$
617

 
$
233,655

Share-based compensation expense
12,527

 
2,792

 
—

 
15,319

Depreciation and amortization
8,495

 
11,859

 
—

 
20,354

Adjusted operating income
$
270,874

 
$
(2,163
)
 
$
617

 
$
269,328


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,
2019
 
2018
Inter-segment revenues
 
 
 
National Networks
$
(1,390
)
 
$
(2,535
)
International and Other
(1,595
)
 
(1,060
)
 
$
(2,985
)
 
$
(3,595
)

The table below summarizes revenues based on customer location:
(In thousands)
Three Months Ended March 31,
2019
 
2018
Revenues
 
 
 
United States
$
662,464

 
$
586,568

Europe
79,434

 
86,264

Other
42,323

 
67,991

 
$
784,221

 
$
740,823


The table below summarizes property and equipment based on asset location:
(In thousands)
March 31, 2019
 
December 31, 2018
Property and equipment, net
 
 
 
United States
$
209,903

 
$
202,833

Europe
26,554

 
27,218

Other
15,384

 
16,211

 
$
251,841

 
$
246,262