v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 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 September 30, 2024
Domestic OperationsInternationalCorporate / Inter-segment
Eliminations		Consolidated
Revenues, net
Subscription$316,002 $48,510 $— $364,512 
Content licensing and other81,102 2,742 (4,335)79,509 
Distribution and other397,104 51,252 (4,335)444,021 
Advertising133,139 22,454 — 155,593 
Consolidated revenues, net$530,243 $73,706 $(4,335)$599,614 
Operating income (loss)$129,978 $8,702 $(45,027)$93,653 
Share-based compensation expenses2,608 775 2,393 5,776 
Depreciation and amortization8,695 4,065 10,337 23,097 
Restructuring and other related charges 3,454 — 42 3,496 
Cloud computing amortization3,272 — — 3,272 
Majority-owned equity investees AOI2,182 — — 2,182 
Adjusted operating income (loss)$150,189 $13,542 $(32,255)$131,476 

(In thousands)Three Months Ended September 30, 2023
Domestic OperationsInternationalCorporate / Inter-segment
Eliminations		Consolidated
Revenues, net
Subscription$332,135 $56,173 $— $388,308 
Content licensing and other61,916 22,150 (1,842)82,224 
Distribution and other394,051 78,323 (1,842)470,532 
Advertising147,147 19,275 — 166,422 
Consolidated revenues, net$541,198 $97,598 $(1,842)$636,954 
Operating income (loss)$161,627 $7,985 $(48,762)$120,850 
Share-based compensation expenses3,494 815 2,069 6,378 
Depreciation and amortization11,536 4,271 12,202 28,009 
Impairment and other charges5,400 — — 5,400 
Restructuring and other related charges (credits)(783)(4)11,350 10,563 
Cloud computing amortization5 — 2,331 2,336 
Majority-owned equity investees AOI3,732 — — 3,732 
Adjusted operating income (loss)$185,011 $13,067 $(20,810)$177,268 
(In thousands)Nine Months Ended September 30, 2024
Domestic OperationsInternationalCorporate / Inter-segment
Eliminations		Consolidated
Revenues, net
Subscription$961,136 $148,963 $— $1,110,099 
Content licensing and other209,431 8,942 (10,157)208,216 
   Distribution and other1,170,567 157,905 (10,157)1,318,315 
   Advertising422,193 81,501 — 503,694 
Consolidated revenues, net$1,592,760 $239,406 $(10,157)$1,822,009 
Operating income (loss)$374,730 $(26,484)$(133,627)$214,619 
Share-based compensation expenses8,586 2,446 9,276 20,308 
Depreciation and amortization29,522 12,241 33,653 75,416 
Impairment and other charges28,815 68,004 — 96,819 
Restructuring and other related charges 6,385 — 42 6,427 
Cloud computing amortization10,103 — — 10,103 
Majority-owned equity investees AOI9,715 — — 9,715 
Adjusted operating income (loss)$467,856 $56,207 $(90,656)$433,407 

(In thousands)Nine Months Ended September 30, 2023
Domestic OperationsInternationalCorporate / Inter-segment
Eliminations		Consolidated
Revenues, net
Subscription$1,013,419 $170,143 $— $1,183,562 
Content licensing and other246,093 76,668 (6,816)315,945 
   Distribution and other1,259,512 246,811 (6,816)1,499,507 
   Advertising475,359 58,163 — 533,522 
Consolidated revenues, net$1,734,871 $304,974 $(6,816)$2,033,029 
Operating income (loss)$523,645 $10,422 $(134,212)$399,855 
Share-based compensation expenses10,133 2,500 7,038 19,671 
Depreciation and amortization35,053 13,944 30,632 79,629 
Impairment and other charges5,400 24,882 — 30,282 
Restructuring and other related charges3,940 1,642 16,955 22,537 
Cloud computing amortization15 — 6,800 6,815 
Majority-owned equity investees AOI11,019 — — 11,019 
Adjusted operating income (loss)$589,205 $53,390 $(72,787)$569,808 
Subscription revenues in the Domestic Operations segment include revenues related to the Company's streaming services of $152.0 million and $142.5 million for the three months ended September 30, 2024 and 2023, respectively, and $447.3 million and $420.8 million for the nine months ended September 30, 2024 and 2023, respectively.
Corporate overhead costs not allocated to the segments include costs such as executive salaries and benefits and costs of maintaining corporate headquarters, facilities and common support functions.
Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International segments.
(In thousands)Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Inter-segment revenues
Domestic Operations$(3,737)$(1,825)$(7,025)$(6,451)
International(598)(17)(3,132)(365)
$(4,335)$(1,842)$(10,157)$(6,816)
The table below summarizes revenues based on customer location:
(In thousands)Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenues
United States$481,390 $524,044 $1,452,897 $1,681,909 
Europe80,492 76,332 260,618 233,817 
Other37,732 36,578 108,494 117,303 
$599,614 $636,954 $1,822,009 $2,033,029 
One customer within the Domestic Operations segment accounted for approximately 16% and 15% of consolidated revenues, net for the three and nine months ended September 30, 2024, respectively. For the three and nine months ended September 30, 2023, one customer within the Domestic Operations segment accounted for approximately 12% and 13%, respectively, of consolidated revenues.
The table below summarizes property and equipment based on asset location:
(In thousands)September 30, 2024December 31, 2023
Property and equipment, net
United States$122,607 $146,314 
Europe11,035 11,850 
Other1,442 1,073 
$135,084 $159,237