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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 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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