Segment Information

3 Months Ended

Mar. 31, 2023

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)	Three Months Ended March 31, 2023
	Domestic Operations		International and Other		Corporate / Inter-segment Eliminations		Consolidated
Revenues, net
Subscription	$	347,530	$	56,690	$	—	$	404,220
Content licensing and other	103,263		32,860		(2,479)		133,644
Distribution and other	450,793		89,550		(2,479)		537,864
Advertising	161,061		18,522		—		179,583
Consolidated revenues, net	$	611,854	$	108,072	$	(2,479)	$	717,447
Operating income (loss)	$	199,488	$	14,142	$	(40,326)	$	173,304
Share-based compensation expenses	4,447		839		359		5,645
Depreciation and amortization	11,854		4,771		9,250		25,875
Restructuring and other related charges	818		1,385		3,730		5,933
Cloud computing amortization	5		—		2,225		2,230
Majority-owned equity investees AOI	2,776		—		—		2,776
Adjusted operating income (loss)	$	219,388	$	21,137	$	(24,762)	$	215,763

(In thousands)	Three Months Ended March 31, 2022
	Domestic Operations		International and Other		Corporate / Inter-segment Eliminations		Consolidated
Revenues, net
Subscription	$	343,748	$	60,412	$	—	$	404,160
Content licensing and other	61,254		27,054		(3,237)		85,071
Distribution and other	405,002		87,466		(3,237)		489,231
Advertising	200,541		22,385		—		222,926
Consolidated revenues, net	$	605,543	$	109,851	$	(3,237)	$	712,157
Operating income (loss)	$	198,522	$	17,355	$	(41,200)	$	174,677
Share-based compensation expenses	3,673		754		3,702		8,129
Depreciation and amortization	12,136		4,903		5,551		22,590
Cloud computing amortization	7		—		900		907
Majority-owned equity investees AOI	4,881		—		—		4,881
Adjusted operating income (loss)	$	219,219	$	23,012	$	(31,047)	$	211,184

Subscription revenues in the Domestic Operations segment include revenues related to the Company's streaming services of $140.9 million and $109.6 million for the three months ended March 31, 2023 and 2022, respectively.

Corporate overhead costs not allocated to the segments include costs such as executive salaries and benefits and 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.

(In thousands)	Three Months Ended March 31,
	2023		2022
Inter-segment revenues
Domestic Operations	$	(2,214)	$	(3,002)
International and Other	(265)		(235)
	$	(2,479)	$	(3,237)

The table below summarizes revenues based on customer location:

(In thousands)	Three Months Ended March 31,
	2023		2022
Revenues
United States	$	606,228	$	591,208
Europe	73,767		82,925
Other	37,452		38,024
	$	717,447	$	712,157

One customer within the Domestic Operations segment accounted for approximately 13% of consolidated revenues, net for the three months ended March 31, 2023. For the three months ended March 31, 2022, no customer accounted for 10% or more of consolidated revenues, net.

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

(In thousands)	March 31, 2023		December 31, 2022
Property and equipment, net
United States	$	182,124	$	187,833
Europe	12,184		12,520
Other	1,509		1,681
	$	195,817	$	202,034