Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company classifies its operations into two operating segments: Domestic Operations and International. These operating segments represent strategic business units that are managed separately.

In 2024, the Company updated the name of its previously titled "International and Other" operating segment to "International" due to the divestiture of the 25/7 Media business on December 29, 2023, which was the sole component of the operating segment that comprised “Other.” This update does not constitute a change in segment reporting, but rather an update in name only. Prior period segment information contained in this report includes the results of the 25/7 Media business through the date of divestiture.

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, 2024
	Domestic Operations		International		Corporate / Inter-segment Eliminations		Consolidated
Revenues, net
Subscription	$	322,558	$	50,849	$	—	$	373,407
Content licensing and other	61,814		3,232		(3,370)		61,676
Distribution and other	384,372		54,081		(3,370)		435,083
Advertising	139,854		21,524		—		161,378
Consolidated revenues, net	$	524,226	$	75,605	$	(3,370)	$	596,461
Operating income (loss)	$	142,017	$	8,609	$	(40,448)	$	110,178
Share-based compensation expenses	3,230		766		2,079		6,075
Depreciation and amortization	10,027		4,025		11,774		25,826
Cloud computing amortization	3,548		—		—		3,548
Majority-owned equity investees AOI	3,497		—		—		3,497
Adjusted operating income (loss)	$	162,319	$	13,400	$	(26,595)	$	149,124

(In thousands)	Three Months Ended March 31, 2023
	Domestic Operations		International		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

Subscription revenues in the Domestic Operations segment include revenues related to the Company's streaming services of $145.1 million and $140.9 million for the three months ended March 31, 2024 and 2023.

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.

Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International segments.

(In thousands)	Three Months Ended March 31,
	2024		2023
Inter-segment revenues
Domestic Operations	$	(1,845)	$	(2,214)
International	(1,525)		(265)
	$	(3,370)	$	(2,479)

The table below summarizes revenues based on customer location:

(In thousands)	Three Months Ended March 31,
	2024		2023
Revenues
United States	$	484,093	$	606,228
Europe	77,251		73,767
Other	35,117		37,452
	$	596,461	$	717,447

One customer within the Domestic Operations segment accounted for approximately 15% and 13% of consolidated revenues, net for the three months ended March 31, 2024 and 2023, respectively.

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

(In thousands)	March 31, 2024		December 31, 2023
Property and equipment, net
United States	$	135,788	$	146,314
Europe	10,930		11,850
Other	1,254		1,073
	$	147,972	$	159,237