Segment and Revenue Information

12 Months Ended

Dec. 31, 2019

17) SEGMENT AND REVENUE INFORMATION

The following tables set forth our financial performance by reportable segment. Our operating segments, which are the same as our reportable segments, have been determined in accordance with our internal management structure, which is organized based upon products and services.



Year Ended December 31,	2019			2018			2017
Revenues:
Advertising	$	6,008		$	5,751		$	5,696
Affiliate	2,550			2,082			1,674
Content licensing	3,157			3,006			2,880
Other	209			222			226
TV Entertainment	11,924			11,061			10,476
Advertising	5,129			5,130			4,947
Affiliate	6,052			6,294			6,479
Content licensing	1,268			1,259			1,053
Cable Networks	12,449			12,683			12,479
Theatrical	547			744			716
Home Entertainment	623			617			789
Licensing	1,709			1,493			1,468
Other	111			102			102
Filmed Entertainment	2,990			2,956			3,075
Publishing	814			825			830
Corporate/Eliminations	(365		)	(275		)	(325		)
Total Revenues	$	27,812		$	27,250		$	26,535

Revenues generated between segments primarily reflect advertising and content licensing sales. These transactions are recorded at market value as if the sales were to third parties and are eliminated in consolidation.



Year Ended December 31,	2019		2018		2017
Intercompany Revenues:
TV Entertainment	$	226	$	164	$	189
Cable Networks	53		47		70
Filmed Entertainment	117		95		89
Total Intercompany Revenues	$	396	$	306	$	348

We present operating income (loss) excluding depreciation and amortization, stock-based compensation, costs for restructuring and other corporate matters, programming charges and gain on sale of assets, each where applicable (“Adjusted OIBDA”), as the primary measure of profit and loss for our operating segments in accordance with FASB guidance for segment reporting. We began presenting Adjusted OIBDA as our segment profit measure in the fourth quarter of 2019 in order to align with the primary method used by our management beginning after the Merger to evaluate segment performance and to make decisions regarding the allocation of resources to our segments. We believe the presentation of Adjusted OIBDA is relevant and useful for investors because it allows investors to view segment performance in a manner similar to the primary method used by our management and enhances their ability to understand our operating performance. Stock-based compensation is excluded from our segment measure of profit and loss because it is set and approved by our Board of Directors in consultation with corporate executive management.



Year Ended December 31,	2019			2018			2017
Adjusted OIBDA:
TV Entertainment	$	2,443		$	2,466		$	2,301
Cable Networks	3,515			4,341			4,442
Filmed Entertainment	80			(33		)	(187		)
Publishing	143			153			146
Corporate/Eliminations	(449		)	(433		)	(442		)
Stock-based compensation	(201		)	(205		)	(220		)
Depreciation and amortization	(443		)	(433		)	(443		)
Restructuring and other corporate matters	(775		)	(490		)	(258		)
Programming charges	(589		)	(162		)	(144		)
Gain on sale of assets	549			—			146
Operating income	4,273			5,204			5,341
Interest expense	(962		)	(1,030		)	(1,088		)
Interest income	66			79			87
Gain (loss) on marketable securities	113			(23		)	—
Gain (loss) on early extinguishment of debt	—			18			(38		)
Gain on sale of EPIX	—			—			285
Pension settlement charge	—			—			(352		)
Other items, net	(145		)	(124		)	(115		)
Earnings from continuing operations before income taxes and equity in earnings (loss) of investee companies	3,345			4,124			4,120
Benefit (provision) for income taxes	9			(617		)	(804		)
Equity in earnings (loss) of investee companies, net of tax	(53		)	(47		)	4
Net earnings from continuing operations	3,301			3,460			3,320
Net earnings (loss) from discontinued operations, net of tax	38			32			(947		)
Net earnings (ViacomCBS and noncontrolling interests)	3,339			3,492			2,373
Net earnings attributable to noncontrolling interests	(31		)	(37		)	(52		)
Net earnings attributable to ViacomCBS	$	3,308		$	3,455		$	2,321



Year Ended December 31,	2019		2018		2017
Depreciation and Amortization:
TV Entertainment	$	150	$	160	$	163
Cable Networks	219		194		193
Filmed Entertainment	37		38		42
Publishing	5		6		6
Corporate	32		35		39
Total Depreciation and Amortization	$	443	$	433	$	443



Year Ended December 31,	2019		2018		2017
Capital Expenditures:
TV Entertainment	$	113	$	112	$	134
Cable Networks	166		156		156
Filmed Entertainment	43		52		27
Publishing	8		7		5
Corporate	23		25		34
Total Capital Expenditures	$	353	$	352	$	356



At December 31,	2019		2018
Assets:
TV Entertainment ^(a)	$	19,689	$	17,378
Cable Networks ^(b)	22,109		20,334
Filmed Entertainment	5,477		5,393
Publishing	1,262		1,054
Corporate/Eliminations	967		326
Discontinued Operations	15		12
Total Assets	$	49,519	$	44,497

(a) Includes assets held for sale of $33 million at December 31, 2018.

(b) Includes assets held for sale of $23 million at December 31, 2019 and 2018.

The following table presents our revenues disaggregated into categories based on the nature of such revenues.



Year Ended December 31,	2019		2018		2017
Revenues by Type:
Advertising	$	11,074	$	10,841	$	10,582
Affiliate	8,602		8,376		8,153
Content licensing	6,483		6,163		5,947
Theatrical	547		744		716
Publishing	814		825		830
Other	292		301		307
Total Revenues	$	27,812	$	27,250	$	26,535



Year Ended December 31,	2019		2018		2017
Revenues: ^(a)
United States	$	22,160	$	21,160	$	20,652
International	5,652		6,090		5,883
Total Revenues	$	27,812	$	27,250	$	26,535

(a) Revenue classifications are based on customers’ locations.



At December 31,	2019		2018
Long-lived Assets: ^(a)
United States	$	12,417	$	9,322
International	498		300
Total Long-lived Assets	$	12,915	$	9,622

(a) Reflects total assets less current assets, investments, goodwill, intangible assets, noncurrent receivables and noncurrent deferred tax assets.

Transactions within the Company between the United States and international regions were not significant.