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 September 30, 2022 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 349,338 $ 52,765 $ — $ 402,103 Content licensing and other 57,793 29,124 (4,816) 82,101 Distribution and other 407,131 81,889 (4,816) 484,204 Advertising 180,258 17,381 — 197,639 Consolidated revenues, net $ 587,389 $ 99,270 $ (4,816) $ 681,843 Operating income (loss) $ 186,609 $ 8,291 $ (44,223) $ 150,677 Share-based compensation expenses 3,155 537 3,358 7,050 Depreciation and amortization 12,141 4,482 13,112 29,735 Cloud computing amortization 5 — 2,047 2,052 Majority-owned equity investees AOI 4,791 — — 4,791 Adjusted operating income (loss) $ 206,701 $ 13,310 $ (25,706) $ 194,305 (In thousands) Three Months Ended September 30, 2021 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 324,644 $ 62,848 $ — $ 387,492 Content licensing and other 158,120 41,738 (1,920) 197,938 Distribution and other 482,764 104,586 (1,920) 585,430 Advertising 199,982 25,354 — 225,336 Consolidated revenues, net $ 682,746 $ 129,940 $ (1,920) $ 810,766 Operating income (loss) $ 213,299 $ 15,564 $ (40,537) $ 188,326 Share-based compensation expenses 4,174 545 4,736 9,455 Depreciation and amortization 11,589 5,200 6,622 23,411 Restructuring and other related charges (135) 800 89 754 Cloud computing amortization — — 596 596 Majority-owned equity investees AOI 2,149 — — 2,149 Adjusted operating income (loss) $ 231,076 $ 22,109 $ (28,494) $ 224,691 (In thousands) Nine Months Ended September 30, 2022 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 1,040,110 $ 169,879 $ — $ 1,209,989 Content licensing and other 191,473 103,513 (16,901) 278,085 Distribution and other 1,231,583 273,392 (16,901) 1,488,074 Advertising 582,451 61,500 — 643,951 Consolidated revenues, net $ 1,814,034 $ 334,892 $ (16,901) $ 2,132,025 Operating income (loss) $ 573,943 $ 39,733 $ (135,119) $ 478,557 Share-based compensation expenses 10,000 1,758 12,104 23,862 Depreciation and amortization 37,716 14,018 27,822 79,556 Cloud computing amortization 17 — 5,306 5,323 Majority-owned equity investees AOI 13,733 — — 13,733 Adjusted operating income (loss) $ 635,409 $ 55,509 $ (89,887) $ 601,031 (In thousands) Nine Months Ended September 30, 2021 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 986,532 $ 188,800 $ — $ 1,175,332 Content licensing and other 297,792 127,692 (11,215) 414,269 Distribution and other 1,284,324 316,492 (11,215) 1,589,601 Advertising 611,406 72,892 — 684,298 Consolidated revenues, net $ 1,895,730 $ 389,384 $ (11,215) $ 2,273,899 Operating income (loss) $ 517,874 $ 32,365 $ (123,949) $ 426,290 Share-based compensation expenses 17,105 2,689 19,369 39,163 Depreciation and amortization 36,678 14,477 20,106 71,261 Impairment and other charges 143,000 15,973 — 158,973 Restructuring and other related charges 2,508 5,273 1,753 9,534 Cloud computing amortization — — 1,502 1,502 Majority-owned equity investees AOI 6,584 — — 6,584 Adjusted operating income (loss) $ 723,749 $ 70,777 $ (81,219) $ 713,307 Corporate overhead costs not allocated to the segments include 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). Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International and Other segments. (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Inter-segment revenues Domestic Operations $ (3,864) $ (1,641) $ (14,308) $ (8,567) International and Other (952) (279) (2,593) (2,648) $ (4,816) $ (1,920) $ (16,901) $ (11,215) The table below summarizes revenues based on customer location: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues United States $ 569,996 $ 655,427 $ 1,761,430 $ 1,844,901 Europe 70,041 93,869 250,112 295,460 Other 41,806 61,470 120,483 133,538 $ 681,843 $ 810,766 $ 2,132,025 $ 2,273,899 One distributor within the Domestic Operations segment accounted for approximately 10% of consolidated revenues, net for the nine months ended September 30, 2022. The table below summarizes property and equipment based on asset location: (In thousands) September 30, 2022 December 31, 2021 Property and equipment, net United States $ 192,503 $ 210,252 Europe 10,946 14,510 Other 1,240 1,029 $ 204,689 $ 225,791 |