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Segment Information
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company classifies its operations into two operating segments: Domestic Operations and International and Other. These operating segments represent strategic business units that are managed separately.
The Company evaluates segment performance based on several factors, of which the primary financial measure is operating segment adjusted operating income ("AOI"). The Company defines AOI as operating income (loss) before depreciation and amortization, cloud computing amortization, share-based compensation expenses or benefit, impairment and other 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, and other information as to the continuing operations of the Company's operating segments below.
(In thousands)Year Ended December 31, 2022
Domestic Operations
International
and Other
Corporate / Inter-segment
eliminations
Consolidated
Revenues, net
Subscription$1,395,026 $223,515 $— $1,618,541 
Content licensing and other491,870 135,406 (21,122)606,154 
Distribution and other1,886,896 358,921 (21,122)2,224,695 
Advertising788,246 83,604 — 871,850 
Consolidated revenues, net$2,675,142 $442,525 $(21,122)$3,096,545 
Operating income (loss)$286,517 $3,031 $(202,632)$86,916 
Share-based compensation expenses12,815 3,900 13,271 29,986 
Depreciation and amortization49,588 18,487 39,152 107,227 
Impairment and other charges— 40,717 — 40,717 
Restructuring and other related charges423,205 2,854 22,907 448,966 
Cloud computing amortization23 — 7,319 7,342 
Majority-owned equity investees AOI17,248 — — 17,248 
Adjusted operating income$789,396 $68,989 $(119,983)$738,402 
Capital expenditures$4,572 $6,039 $33,661 $44,272 
(In thousands)Year Ended December 31, 2021
Domestic Operations
International
and Other
Corporate / Inter-segment
eliminations
Consolidated
Revenues, net
Subscription$1,318,732 $249,844 $— $1,568,576 
Content licensing and other416,898 155,805 (14,325)558,378 
Distribution and other1,735,630 405,649 (14,325)2,126,954 
Advertising844,986 105,668 — 950,654 
Consolidated revenues, net$2,580,616 $511,317 $(14,325)$3,077,608 
Operating income (loss)$617,875 $37,167 $(165,120)$489,922 
Share-based compensation expenses22,077 3,627 22,221 47,925 
Depreciation and amortization48,025 19,807 26,049 93,881 
Impairment and other charges143,000 16,610 — 159,610 
Restructuring and other related charges2,516 6,083 1,779 10,378 
Cloud computing amortization— — 2,406 2,406 
Majority-owned equity investees AOI11,948 — — 11,948 
Adjusted operating income$845,441 $83,294 $(112,665)$816,070 
Capital expenditures$9,635 $6,009 $26,928 $42,572 
(In thousands)Year Ended December 31, 2020
Domestic Operations
International
and Other
Corporate / Inter-segment
eliminations
Consolidated
Revenues, net
Subscription$1,145,970 $239,145 $— $1,385,115 
Content licensing and other433,954 139,746 (19,675)554,025 
Distribution and other1,579,924 378,891 (19,675)1,939,140 
Advertising801,477 74,339 — 875,816 
Consolidated revenues, net$2,381,401 $453,230 $(19,675)$2,814,956 
Operating income (loss)$734,871 $(109,365)$(182,862)$442,644 
Share-based compensation expenses10,605 2,988 39,315 52,908 
Depreciation and amortization50,574 26,465 27,567 104,606 
Impairment and other charges— 122,227 — 122,227 
Restructuring and other related charges22,946 6,410 5,712 35,068 
Cloud computing amortization— — 200 200 
Majority-owned equity investees AOI8,958 — — 8,958 
Adjusted operating income$827,954 $48,725 $(110,068)$766,611 
Capital expenditures$12,301 $9,057 $25,237 $46,595 
Subscription revenues in the Domestic Operations segment, include revenues related to the Company's streaming services of approximately $501.9 million, $370.8 million and $185.6 million for the years ended December 31, 2022, 2021 and 2020 respectively.
Corporate overhead costs not allocated to the segments include such costs as executive salaries and benefits, costs of maintaining corporate headquarters, facilities and common support functions (such as human resources, legal, finance, strategic planning and information technology).
Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International and Other segments as well as revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment.
(In thousands)Years Ended December 31,
202220212020
Inter-segment revenues
Domestic Operations$(17,643)$(10,584)$(15,852)
International and Other(3,479)(3,741)(3,823)
$(21,122)$(14,325)$(19,675)
One customer within the Domestic Operations segment accounted for approximately 10% of consolidated revenues, net for the year ended December 31, 2022. For the years ended December 31, 2021 and 2020, no customer accounted for 10% of consolidated revenues, net.
The table below summarizes revenue based on customer location:
Years Ended December 31,
(In thousands)202220212020
Revenue
United States$2,574,504 $2,462,210 $2,267,754 
Europe354,492 432,682 385,787 
Other167,549 182,716 161,415 
$3,096,545 $3,077,608 $2,814,956 
The table below summarizes property and equipment based on asset location:
Years Ended December 31,
(In thousands)20222021
Property and equipment, net
United States$187,833 $210,252 
Europe12,520 14,510 
Other1,681 1,029 
$202,034 $225,791