Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

15.  Segment Information

The Company determines its operating segments based upon our management and internal reporting structure. We manage our operations through one reportable operating segment, Lifestyle Media.

Lifestyle Media includes our national television networks, Food Network, HGTV, Travel Channel, DIY Network, Cooking Channel and GAC.  Lifestyle Media also includes websites that are associated with the aforementioned television brands and other Internet-based businesses serving food, home and travel related categories.   The Food Network and Cooking Channel are included in the Food Network partnership of which we own approximately 69%. We also own 65% of Travel Channel.  Each of our networks is distributed by cable and satellite distributors and telecommunication service providers. Lifestyle Media earns revenue primarily from the sale of advertising time and from affiliate fees paid by cable and satellite television systems.

The results of businesses not separately identified as reportable segments are included within our corporate and other caption.  Corporate and other includes the results of the lifestyle-oriented channels we operate in Europe, the Middle East, Africa and Asia, operating results from the international licensing of our national networks' programming, and other interactive and digital business initiatives that are not associated with our Lifestyle Media or international businesses.

Each of our businesses may provide advertising, programming or other services to one another. In addition, certain corporate costs and expenses, including information technology, pensions and other employee benefits, and other shared services, are allocated to our businesses. The allocations are generally amounts agreed upon by management, which may differ from amounts that would be incurred if such services were purchased separately by the business.

Our chief operating decision maker evaluates the operating performance of our businesses and makes decisions about the allocation of resources to the businesses using a measure we call segment profit.  Segment profit excludes interest, income taxes, depreciation and amortization, divested operating units, restructuring activities, investment results and certain other items that are included in net income determined in accordance with accounting principles generally accepted in the United States of America.

Information regarding our segments is as follows:

( in thousands )				Three months ended						Nine months ended
				September 30,						September 30,
	2012			2011			2012			2011
Segment operating revenues:
Lifestyle Media	$	551,917		$	496,257		$	1,671,516		$	1,497,163
Corporate and other/intersegment eliminations		14,269			7,487			31,001			21,396
Total operating revenues	$	566,186		$	503,744		$	1,702,517		$	1,518,559
Segment profit (loss):
Lifestyle Media	$	273,033		$	235,741		$	848,089		$	769,205
Corporate and other		(21,967	)		(17,270	)		(73,107	)		(49,383	)
Total segment profit		251,066			218,471			774,982			719,822
Depreciation and amortization of intangible assets		(28,978	)		(22,736	)		(79,432	)		(66,471	)
Gains (losses) on disposal of property and equipment		(16	)		82			(102	)		63
Interest expense		(12,518	)		(9,157	)		(37,945	)		(26,348	)
Equity in earnings of affiliates		11,240			7,035			46,267			29,717
Miscellaneous, net		1,667			(23,972	)		12,689			(23,504	)
Income from continuing operations before income taxes	$	222,461		$	169,723		$	716,459		$	633,279

( in thousands )			As of
	September 30,		December 31,
	2012		2011
Assets:
Lifestyle Media	$	2,736,795	$	2,794,040
Corporate and other		1,163,178		1,167,630
Total assets	$	3,899,973	$	3,961,670

No single customer provides more than 10% of our total operating revenues.