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Segment Information
9 Months Ended
Sep. 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 September 30, 2020
National
Networks
International
and Other
Inter-segment
eliminations
Consolidated
Revenues, net
Advertising$164,216 $18,923 $(37)$183,102 
Distribution297,933 180,369 (7,389)470,913 
Consolidated revenues, net$462,149 $199,292 $(7,426)$654,015 
Operating income (loss)$129,842 $11,198 $(1,563)$139,477 
Share-based compensation expense9,922 2,472 — 12,394 
Depreciation and amortization13,422 14,125 — 27,547 
Restructuring and other related charges 5,991 (1,585)— 4,406 
Majority-owned equity investees AOI— 1,667 — 1,667 
Adjusted operating income$159,177 $27,877 $(1,563)$185,491 
(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)Nine Months Ended September 30, 2020
National
Networks
International
and Other
Inter-segment
eliminations
Consolidated
Revenues, net
Advertising$564,876 $53,097 $(38)$617,935 
Distribution960,062 477,668 (20,984)1,416,746 
Consolidated revenues, net$1,524,938 $530,765 $(21,022)$2,034,681 
Operating income (loss)$512,598 $(147,226)$(4,123)$361,249 
Share-based compensation expense34,754 8,387 — 43,141 
Depreciation and amortization30,633 49,549 — 80,182 
Impairment charges— 130,411 — 130,411 
Restructuring and other related charges 8,714 5,165 — 13,879 
Majority-owned equity investees AOI— 4,361 — 4,361 
Adjusted operating income$586,699 $50,647 $(4,123)$633,223 

(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 charges6,776 23,915 (696)29,995 
Majority-owned equity investees AOI— 4,434 — 4,434 
Adjusted operating income$721,569 $35,237 $(12,786)$744,020 
Inter-segment eliminations are primarily licensing revenues recognized between the National Networks and International and Other segments as well as revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment.
(In thousands)Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Inter-segment revenues
National Networks$(7,166)$(18,140)$(17,346)$(29,790)
International and Other(260)(5,094)(3,676)(8,397)
$(7,426)$(23,234)$(21,022)$(38,187)
The table below summarizes revenues based on customer location:
(In thousands)Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Revenues
United States$497,677 $579,913 $1,646,065 $1,847,491 
Europe110,448 108,365 274,763 299,782 
Other45,890 30,319 113,853 127,844 
$654,015 $718,597 $2,034,681 $2,275,117 

The table below summarizes property and equipment based on asset location:
(In thousands)September 30, 2020December 31, 2019
Property and equipment, net
United States$241,541 $244,175 
Europe13,985 25,925 
Other203 13,652 
$255,729 $283,752 
For the nine months ended September 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.