XML 18 R26.htm IDEA: XBRL DOCUMENT v3.19.3
Segment Information
 9 Months Ended
Sep. 30, 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 and other related charges and the Company's proportionate share of adjusted operating income (loss) from majority-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 September 30, 2019  
National
Networks		International
and Other		Inter-segment
eliminations		Consolidated
Revenues, net
Advertising$194,452  $18,872  $(24) $213,300  
Distribution364,540  163,967  (23,210) 505,297  
Consolidated revenues, net$558,992  $182,839  $(23,234) $718,597  
Operating income (loss)$182,479  $(11,501) $(2,540) $168,438  
Share-based compensation expense11,684  2,157  —  13,841  
Depreciation and amortization8,048  17,571  —  25,619  
Restructuring and other related charges 6,199  3,992  —  10,191  
Majority-owned equity investees AOI—  1,246  —  1,246  
Adjusted operating income$208,410  $13,465  $(2,540) $219,335  
(In thousands)Three Months Ended September 30, 2018
National
Networks		International
and Other		Inter-segment
eliminations		Consolidated
Revenues, net
Advertising$199,714  $20,128  $—  219,842  
Distribution360,607  131,644  (15,218) 477,033  
Consolidated revenues, net$560,321  $151,772  $(15,218) $696,875  
Operating income (loss)$188,107  $(16,749) $(6,759) 164,599  
Share-based compensation expense13,860  3,074  —  16,934  
Depreciation and amortization8,450  13,561  —  22,011  
Restructuring and other related charges —  3,139  —  3,139  
Impairment and related charges—  4,486  —  4,486  
Adjusted operating income$210,417  $7,511  $(6,759) $211,169  

(In thousands)Nine Months Ended September 30, 2019
National
Networks		International
and Other		Inter-segment
eliminations		Consolidated
Revenues, net
Advertising$653,031  $63,613  $(75) $716,569  
Distribution1,126,819  469,841  (38,112) 1,558,548  
Consolidated revenues, net$1,779,850  $533,454  $(38,187) $2,275,117  
Operating income (loss)$648,180  $(52,532) $(12,090) $583,558  
Share-based compensation expense41,774  8,691  —  50,465  
Depreciation and amortization24,839  50,729  —  75,568  
Restructuring and other related charges 6,776  23,915  (696) 29,995  
Majority-owned equity investees AOI—  4,434  —  4,434  
Adjusted operating income$721,569  $35,237  $(12,786) $744,020  

(In thousands)Nine Months Ended September 30, 2018
National
Networks		International
and Other		Inter-segment
eliminations		Consolidated
Revenues, net
Advertising$672,273  $66,071  $—  $738,344  
Distribution1,148,365  343,802  (31,428) 1,460,739  
Consolidated revenues, net$1,820,638  $409,873  $(31,428) $2,199,083  
Operating income (loss)$647,965  $(44,899) $(13,281) $589,785  
Share-based compensation expense42,647  9,359  —  52,006  
Depreciation and amortization25,358  38,676  —  64,034  
Restructuring and other related charges—  3,139  —  3,139  
Impairment and related charges—  4,486  —  4,486  
Adjusted operating income$715,970  $10,761  $(13,281) $713,450  
Inter-segment eliminations are primarily licensing revenues recognized between the National Networks and International and Other segments as well as revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment.
(In thousands)Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
Inter-segment revenues
National Networks$(18,140) $(10,304) $(29,790) $(25,454) 
International and Other(5,094) (4,914) (8,397) (5,974) 
$(23,234) $(15,218) $(38,187) $(31,428) 
The table below summarizes revenues based on customer location:
(In thousands)Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
Revenues
United States$579,913  $550,573  $1,847,491  $1,737,336  
Europe108,365  108,607  299,782  311,294  
Other30,319  37,695  127,844  150,453  
$718,597  $696,875  $2,275,117  $2,199,083  
The table below summarizes property and equipment based on asset location:
(In thousands)September 30, 2019December 31, 2018
Property and equipment, net
United States$230,869  $202,833  
Europe24,314  27,218  
Other14,104  16,211  
$269,287  $246,262