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Segment Information
6 Months Ended
Jun. 30, 2020
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, cloud computing amortization, share-based compensation expense or benefit, impairment 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)Three Months Ended June 30, 2020
National
Networks
International
and Other
Inter-segment
eliminations
Consolidated
Revenues, net
Advertising$187,434  $14,810  $—  $202,244  
Distribution308,416  146,170  (10,539) 444,047  
Consolidated revenues, net$495,850  $160,980  $(10,539) $646,291  
Operating income (loss)$187,532  $(138,973) $243  $48,802  
Share-based compensation expense12,366  2,869  —  15,235  
Depreciation and amortization8,822  17,083  —  25,905  
Impairment charges—  130,411  —  130,411  
Restructuring and other related charges 1,214  2,293  —  3,507  
Majority-owned equity investees AOI—  1,418  —  1,418  
Adjusted operating income$209,934  $15,101  $243  $225,278  
(In thousands)Three Months Ended June 30, 2019
National
Networks
International
and Other
Inter-segment
eliminations
Consolidated
Revenues, net
Advertising$219,490  $23,535  $(49) 242,976  
Distribution385,249  155,991  (11,917) 529,323  
Consolidated revenues, net$604,739  $179,526  $(11,966) $772,299  
Operating income (loss)$214,198  $(27,284) $(16,657) 170,257  
Share-based compensation expense13,821  2,904  —  16,725  
Depreciation and amortization8,179  17,714  —  25,893  
Restructuring and other related charges 274  16,888  —  17,162  
Majority-owned equity investees AOI—  1,608  —  1,608  
Adjusted operating income$236,472  $11,830  $(16,657) $231,645  

(In thousands)Six Months Ended June 30, 2020
National
Networks
International
and Other
Inter-segment
eliminations
Consolidated
Revenues, net
Advertising$400,660  $34,174  $(1) $434,833  
Distribution662,129  297,299  (13,595) 945,833  
Consolidated revenues, net$1,062,789  $331,473  $(13,596) $1,380,666  
Operating income (loss)$382,756  $(158,424) $(2,560) $221,772  
Share-based compensation expense24,832  5,915  —  30,747  
Depreciation and amortization17,211  35,424  —  52,635  
Impairment charges—  130,411  —  130,411  
Restructuring and other related charges 2,723  6,750  —  9,473  
Majority-owned equity investees AOI—  2,694  —  2,694  
Adjusted operating income$427,522  $22,770  $(2,560) $447,732  

(In thousands)Six Months Ended June 30, 2019
National
Networks
International
and Other
Inter-segment
eliminations
Consolidated
Revenues, net
Advertising$458,579  $44,741  $(51) $503,269  
Distribution762,279  305,874  (14,902) 1,053,251  
Consolidated revenues, net$1,220,858  $350,615  $(14,953) $1,556,520  
Operating income (loss)$465,702  $(41,031) $(9,551) $415,120  
Share-based compensation expense30,090  6,534  —  36,624  
Depreciation and amortization16,791  33,158  —  49,949  
Restructuring and other related charges576  19,923  (695) 19,804  
Majority-owned equity investees AOI—  3,188  —  3,188  
Adjusted operating income$513,159  $21,772  $(10,246) $524,685  
Inter-segment eliminations are primarily licensing revenues recognized between the National Networks and International and Other segments as well as revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment.
(In thousands)Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Inter-segment revenues
National Networks$(8,111) $(10,260) $(10,180) $(11,650) 
International and Other(2,428) (1,706) (3,416) (3,303) 
$(10,539) $(11,966) $(13,596) $(14,953) 
The table below summarizes revenues based on customer location:
(In thousands)Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Revenues
United States$523,395  $605,114  $1,148,388  $1,267,578  
Europe91,836  111,983  164,315  191,417  
Other31,060  55,202  67,963  97,525  
$646,291  $772,299  $1,380,666  $1,556,520  
The table below summarizes property and equipment based on asset location:
(In thousands)June 30, 2020December 31, 2019
Property and equipment, net
United States$246,786  $244,175  
Europe12,911  25,925  
Other86  13,652  
$259,783  $283,752  
For the six months ended June 30, 2020, impairment charges were recorded related to certain property and equipment in Europe and Other. See Note 7 for additional details regarding the impairment test of long-lived assets.