Segment Information

12 Months Ended

Dec. 31, 2019

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 including 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)	Year Ended December 31, 2019
			National Networks			International and Other			Inter-segment eliminations			Consolidated
Revenues, net
Advertising	$	904,253		$	89,659		$	(79)		$	993,833
Distribution	1,464,791			644,484			(42,787)			2,066,488
Consolidated revenues, net	$	2,369,044		$	734,143		$	(42,866)		$	3,060,321
Operating income (loss)	$	804,422		$	(170,039)		$	(9,106)		$	625,277
Share-based compensation expense	52,977			11,156			—			64,133
Depreciation and amortization	32,674			68,424			—			101,098
Impairment and related charges	—			106,603			—			106,603
Restructuring and other related charges	13,453			28,084			(623)			40,914
Majority-owned equity investees AOI	—			5,965			—			5,965
Adjusted operating income	$	903,526		$	50,193		$	(9,729)		$	943,990
Capital expenditures	$	36,199		$	55,405		$	—		$	91,604


(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
Depreciation and amortization	33,728			57,553			—			91,281
Impairment and related charges	—			4,486			—			4,486
Restructuring and other related charges	17,160			35,189			(6,502)			45,847
Majority-owned equity investees 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
Depreciation and amortization	33,702			60,936			—			94,638
Impairment and related charges	—			28,148			—			28,148
Restructuring and other related charges	(53)			6,181			—			6,128
Adjusted operating income	$	894,912		$	16,219		$	(6,313)		$	904,818
Capital expenditures	$	25,333		$	54,716		$	—		$	80,049

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,
			2019			2018			2017
Inter-segment revenues
National Networks	$	(32,762)		$	(33,600)		$	(17,634)
International and Other	(10,104)			(6,102)			(1,472)
	$	(42,866)		$	(39,702)		$	(19,106)

One customer within the National Networks segment accounted for approximately 10% revenues, net for the years ended December 31, 2019 and 2018, respectively, and 11% of consolidated revenues, net for the year ended December 31, 2017.

The table below summarizes revenue based on customer location:


	Years Ended December 31,
(In thousands)	2019		2018		2017
Revenue
United States	$	2,511,686	$	2,389,624	$	2,244,057
Europe	382,888		394,235		369,815
Other	165,747		188,070		191,819
	$	3,060,321	$	2,971,929	$	2,805,691

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


	Years Ended December 31,
(In thousands)	2019		2018
Property and equipment, net
United States	$	244,175	$	202,833
Europe	25,925		27,218
Other	13,652		16,211
	$	283,752	$	246,262