XML 63 R30.htm IDEA: XBRL DOCUMENT v3.20.4
Segment Information
 12 Months Ended
Dec. 31, 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 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 a reconciliation of adjusted operating income to operating income, (the closest GAAP measure), below.
(In thousands)Year Ended December 31, 2020
National
Networks
International
and Other
Inter-segment
eliminations
Consolidated
Revenues, net
Advertising$802,332 $74,338 $(854)$875,816 
Distribution and other1,293,837 672,189 (26,886)1,939,140 
Consolidated revenues, net$2,096,169 $746,527 $(27,740)$2,814,956 
Operating income (loss)$656,425 $(224,228)$10,447 $442,644 
Share-based compensation expense42,536 10,372 — 52,908 
Depreciation and amortization40,539 64,067 — 104,606 
Impairment charges— 122,227 — 122,227 
Restructuring and other related charges20,553 14,515 — 35,068 
Cloud computing amortization— 200 — 200 
Majority-owned equity investees AOI— 8,958 — 8,958 
Adjusted operating income$760,053 $(3,889)$10,447 $766,611 
Capital expenditures$11,007 $35,588 $— $46,595 

(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 and other1,464,791 644,484 (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 expense52,977 11,156 — 64,133 
Depreciation and amortization32,674 68,424 — 101,098 
Impairment charges— 106,603 — 106,603 
Restructuring and other related charges13,453 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 and other1,468,650 506,902 (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 expense48,621 12,358 — 60,979 
Depreciation and amortization33,728 57,553 — 91,281 
Impairment charges— 4,486 — 4,486 
Restructuring and other related charges17,160 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 

Distribution revenues, included in the International and Other segment, include revenues related to AMC Networks Streaming Services of approximately $176.7 million, $95.3 million and $20.2 million for the years ended December 31, 2020, 2019 and 2018, respectively.
Inter-segment eliminations are primarily licensing revenues recognized between the National Networks and International and Other segments as well as revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment.
(In thousands)Years Ended December 31,
202020192018
Inter-segment revenues
National Networks$(22,617)$(32,762)$(33,600)
International and Other(5,123)(10,104)(6,102)
$(27,740)$(42,866)$(39,702)

For the year ended December 31, 2020, no one customer accounted for 10% of consolidated revenues, net. One customer within the National Networks segment accounted for approximately 10% and 11% of consolidated revenues, net for the years ended December 31, 2019 and 2018, respectively.
The table below summarizes revenue based on customer location:
Years Ended December 31,
(In thousands)202020192018
Revenue
United States$2,267,754 $2,511,686 $2,389,624 
Europe385,787 382,888 394,235 
Other161,415 165,747 188,070 
$2,814,956 $3,060,321 $2,971,929 
The table below summarizes property and equipment based on asset location:
Years Ended December 31,
(In thousands)20202019
Property and equipment, net
United States$239,387 $244,175 
Europe15,938 25,925 
Other720 13,652 
$256,045 $283,752