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Segment Information | 9 Months Ended
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Sep. 30, 2017
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 all 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, defined as operating income (loss) before depreciation and amortization, share-based compensation expense or benefit, impairment and related charges (including gains or losses on sales or dispositions of businesses), and restructuring expense or credit. The Company has presented the components that reconcile adjusted operating income to operating income, an accepted GAAP measure, and other information as to the continuing operations of the Company’s operating segments below.
(In thousands) | Three Months Ended September 30, 2017
National Networks |  | International and Other |  | Inter-segment eliminations |  | Consolidated
Revenues, net |  |  |  |  |  |  |
Advertising | $ | 197,891 |  |  | $ | 20,691 |  |  | $ | — |  |  | $ | 218,582 |
Distribution | 343,551 |  |  | 92,069 |  |  | (6,179 | ) |  | 429,441 |
Consolidated revenues, net | $ | 541,442 |  |  | $ | 112,760 |  |  | $ | (6,179 | ) |  | $ | 648,023 |
Operating income (loss) | $ | 179,624 |  |  | $ | (18,782 | ) |  | $ | (7,488 | ) |  | $ | 153,354 |
Share-based compensation expense | 11,598 |  |  | 2,219 |  |  | — |  |  | 13,817 |
Restructuring (credit) expense | (10 | ) |  | 1,274 |  |  | — |  |  | 1,264 |
Impairment and related charges | — |  |  | 11,036 |  |  | — |  |  | 11,036 |
Depreciation and amortization | 8,482 |  |  | 12,456 |  |  | — |  |  | 20,938 |
Adjusted operating income | $ | 199,694 |  |  | $ | 8,203 |  |  | $ | (7,488 | ) |  | $ | 200,409 |
(In thousands) | Three Months Ended September 30, 2016
National Networks |  | International and Other |  | Inter-segment eliminations |  | Consolidated
Revenues, net |  |  |  |  |  |  |
Advertising | $ | 189,300 |  |  | $ | 21,424 |  |  | $ | — |  |  | $ | 210,724 |
Distribution | 336,413 |  |  | 92,596 |  |  | (5,087 | ) |  | 423,922 |
Consolidated revenues, net | $ | 525,713 |  |  | $ | 114,020 |  |  | $ | (5,087 | ) |  | $ | 634,646 |
Operating income (loss) | $ | 139,148 |  |  | $ | (16,668 | ) |  | $ | (5,343 | ) |  | $ | 117,137 |
Share-based compensation expense | 7,212 |  |  | 2,170 |  |  | — |  |  | 9,382 |
Restructuring expense | 8,103 |  |  | 11,209 |  |  | — |  |  | 19,312 |
Depreciation and amortization | 8,040 |  |  | 14,242 |  |  | — |  |  | 22,282 |
Adjusted operating income | $ | 162,503 |  |  | $ | 10,953 |  |  | $ | (5,343 | ) |  | $ | 168,113 |
(In thousands) | Nine Months Ended September 30, 2017
National Networks |  | International and Other |  | Inter-segment eliminations |  | Consolidated
Revenues, net |  |  |  |  |  |  |
Advertising | $ | 690,906 |  |  | $ | 62,134 |  |  | $ | — |  |  | $ | 753,040 |
Distribution | 1,070,606 |  |  | 268,267 |  |  | (13,156 | ) |  | 1,325,717 |
Consolidated revenues, net | $ | 1,761,512 |  |  | $ | 330,401 |  |  | $ | (13,156 | ) |  | $ | 2,078,757 |
Operating income (loss) | $ | 640,855 |  |  | $ | (69,222 | ) |  | $ | (10,818 | ) |  | $ | 560,815 |
Share-based compensation expense | 33,717 |  |  | 7,695 |  |  | — |  |  | 41,412 |
Restructuring (credit) expense | (53 | ) |  | 3,940 |  |  | — |  |  | 3,887 |
Impairment and related charges | — |  |  | 28,148 |  |  | — |  |  | 28,148 |
Depreciation and amortization | 25,315 |  |  | 39,722 |  |  | — |  |  | 65,037 |
Adjusted operating income | $ | 699,834 |  |  | $ | 10,283 |  |  | $ | (10,818 | ) |  | $ | 699,299 |
Capital expenditures | $ | 20,311 |  |  | $ | 41,483 |  |  | $ | — |  |  | $ | 61,794 |
(In thousands) | Nine Months Ended September 30, 2016
National Networks |  | International and Other |  | Inter-segment eliminations |  | Consolidated
Revenues, net |  |  |  |  |  |  |
Advertising | $ | 692,483 |  |  | $ | 69,837 |  |  | $ | — |  |  | $ | 762,320 |
Distribution | 1,004,499 |  |  | 271,511 |  |  | (12,273 | ) |  | 1,263,737 |
Consolidated revenues, net | $ | 1,696,982 |  |  | $ | 341,348 |  |  | $ | (12,273 | ) |  | $ | 2,026,057 |
Operating income (loss) | $ | 594,969 |  |  | $ | (33,071 | ) |  | $ | (8,070 | ) |  | $ | 553,828 |
Share-based compensation expense | 22,581 |  |  | 6,288 |  |  | — |  |  | 28,869 |
Restructuring expense | 8,170 |  |  | 11,496 |  |  | — |  |  | 19,666 |
Depreciation and amortization | 24,062 |  |  | 39,405 |  |  | — |  |  | 63,467 |
Adjusted operating income | $ | 649,782 |  |  | $ | 24,118 |  |  | $ | (8,070 | ) |  | $ | 665,830 |
Capital expenditures | $ | 10,165 |  |  | $ | 34,340 |  |  | $ | — |  |  | $ | 44,505 |
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) | Three Months Ended September 30, |  | Nine Months Ended September 30,
2017 |  | 2016 |  | 2017 |  | 2016
Inter-segment revenues |  |  |  |  |  |  |
National Networks | $ | (6,179 | ) |  | $ | (5,079 | ) |  | $ | (13,045 | ) |  | $ | (12,015 | )
International and Other | — |  |  | (8 | ) |  | (111 | ) |  | (258 | )
| $ | (6,179 | ) |  | $ | (5,087 | ) |  | $ | (13,156 | ) |  | $ | (12,273 | )
The table below summarizes revenues based on customer location:
(In thousands) | Three Months Ended September 30, |  | Nine Months Ended September 30,
2017 |  | 2016 |  | 2017 |  | 2016
Revenues |  |  |  |  |  |  |
United States | $ | 504,732 |  |  | $ | 499,316 |  |  | $ | 1,653,342 |  |  | $ | 1,616,453 |
Europe | 91,447 |  |  | 93,356 |  |  | 278,198 |  |  | 290,879 |
Other | 51,844 |  |  | 41,974 |  |  | 147,217 |  |  | 118,725 |
| $ | 648,023 |  |  | $ | 634,646 |  |  | $ | 2,078,757 |  |  | $ | 2,026,057 |
The table below summarizes property and equipment based on asset location:
(In thousands) | September 30, 2017 |  | December 31, 2016
Property and equipment, net |  |  |
United States | $ | 126,050 |  |  | $ | 104,939 |
Europe | 27,001 |  |  | 39,976 |
Other | 19,570 |  |  | 21,721 |
| $ | 172,621 |  |  | $ | 166,636 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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