Equity Plans

9 Months Ended

Sep. 30, 2011

Equity Plans [Abstract]

Equity Plans

Note 13.                 Equity Plans

Treatment of Share-Based Payment Awards After the AMC Networks Distribution

In connection with the Distribution and as provided for in Cablevision's equity plans, each stock option and SAR outstanding at the effective date of the Distribution became two options or two SARs, as the case may be: (i) one with respect to Cablevision's CNYG Class A common stock and (ii) one with respect to the Company's Class A common stock. The existing exercise price of each option/SAR was allocated between the existing Cablevision option/SAR and the Company's new option/SAR based on the weighted average trading price of Cablevision's and the Company's common shares, respectively, for the 10 trading days subsequent to the Distribution and the underlying share amount took into account the 1:4 distribution ratio. As a result of this adjustment, approximately 73.59% of the pre-Distribution exercise price of options/SARs was allocated to the Cablevision options/SARs and approximately 26.41% was allocated to the Company's new options/SARs.

Stock Option Award Activity

The following table summarizes activity relating to Company employees who held AMC Networks stock options for the period from July 1, 2011 (the day following the Distribution) to September 30, 2011:

				Weighted
	Shares Under Option		Weighted Average	Average Remaining
	Time Vesting Options	Performance Vesting Options	Exercise Price Per Share	Contractual Term (in years)	Aggregate Intrinsic Value(a)
Balance, July 1, 2011	149,147	2,500	$10.81	3.43	$  4,404
Exercised	(3,496)	-	11.91
Balance, September 30, 2011	145,651	2,500	$10.78	3.19	$  3,136
Options exercisable at September 30, 2011...	114,333	2,500	$11.27	3.25	$  2,416
Options expected to vest in the future	31,318	-	$  8.95	2.93	$     720

_________________

 (a)      The aggregate intrinsic value is calculated as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of AMC Networks Class A common stock on September 30, 2011 or July 1, 2011, as indicated, and September 30, 2011 in the case of the options expected to vest in the future.

In addition, the following table summarizes activity relating to Cablevision and The Madison Square Garden Company and its subsidiaries ("MSG") employees who held AMC Networks stock options from July 1, 2011 (the day following the Distribution) to September 30, 2011:

				Weighted
	Shares Under Option		Weighted Average	Average Remaining
	Time Vesting Options	Performance Vesting Options	Exercise Price Per Share	Contractual Term (in years)	Aggregate Intrinsic Value(a)
Balance, July 1, 2011	1,503,558	106,400	$11.77	3.74	$45,206
Exercised	(162,140)	(28,000)	12.72
Forfeited/Expired	(20,708)	-	8.95
Balance, September 30, 2011	1,320,710	78,400	$11.68	3.46	$28,354
Options exercisable at September 30, 2011...	913,867	78,400	$11.69	2.38	$20,106
Options expected to vest in the future	406,843	-	$11.68	3.74	$  8,248

_________________

 (a)      The aggregate intrinsic value is calculated as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of AMC Networks Class A common stock on September 30, 2011 or July 1, 2011, as indicated, and September 30, 2011 in the case of the options expected to vest in the future.

The Company does not record any share-based compensation expense for AMC Networks stock options held by Cablevision and MSG employees, however such stock options do have a dilutive effect on the Company's net income per share. The Company records share-based compensation expense for Cablevision and MSG stock options held by the Company's employees.

Restricted Share Award Activity

The following table summarizes activity relating to Company employees who held AMC Networks restricted shares from July 1, 2011 (the day following the Distribution) to September 30, 2011:

	Number of Restricted Shares	Number of Performance Restricted Shares	Weighted Average Fair Value Per Share at Date of Grant
Unvested award balance, July 1, 2011	435,150	19,022	$20.67
Granted	227,304	53,006	$43.50
Forfeited	(6,676)	-	$23.24
Unvested award balance, September 30, 2011	655,778	72,028	$29.44

The following table summarizes activity relating to Cablevision and MSG employees who held AMC Networks restricted shares from July 1, 2011 (the day following the Distribution) to September 30, 2011:

	Number of Restricted Shares	Number of Performance Restricted Shares	Weighted Average Fair Value Per Share at Date of Grant
Unvested award balance, July 1, 2011	1,526,412	205,975	$18.95
Vested	(4,217)	-	$12.87
Forfeited	(28,113)	(14,375)	$20.34
Unvested award balance, September 30, 2011	1,494,082	191,600	$18.93

During the three months ended September 30, 2011, 4,217 shares of AMC Networks Class A common stock previously issued to employees of Cablevision and MSG vested. In connection with the employees' satisfaction of the statutory minimum tax withholding obligations for the applicable income and other employment taxes, 2,258 of these shares, with an aggregate value of $82, were surrendered to the Company. These acquired shares, as well as 49,164 forfeited unvested restricted shares have been classified as treasury stock.

AMC Networks recognizes share-based compensation expense for restricted shares issued to its employees based on the grant date price of Class A common stock using a straight-line amortization method, over the service period. The Company does not record any share-based compensation expense for AMC Networks restricted shares held by Cablevision and MSG employees, however such restricted shares do have a dilutive effect on the Company's net income per share. The Company records share-based compensation expense for Cablevision and MSG restricted shares held by the Company's employees.

In August 2011, the Company granted 38,951 restricted share units to non-employee directors.

Share-based compensation expense included in continuing operations, a component of selling, general and administrative expense, for the three and nine months ended September 30, 2011 was $4,320 and $12,663, respectively, related to equity classified awards.  For the three and nine months ended September 30, 2010, share-based compensation expense was $4,218 and $12,053, respectively, related to equity classified awards.  Share-based compensation expense (credit) included in continuing operations for liability classified awards (SARs) was $(623) and $(476) for the three and nine months ended September 30, 2011, respectively, and $168 and $491 for the three and nine months ended September 30, 2010, respectively.  For periods prior to the Distribution, the Company's share-based compensation includes amounts related to Company employees participating in the Cablevision equity awards programs, as well as amounts related to Cablevision corporate employees and non-employee directors to the extent allocated to the Company. For periods after the Distribution, the Company no longer receives an allocation of share-based compensation expense for Cablevision corporate employees and non-employee directors, including expense related to the Company's Executive Chairman with respect to his participation in the Cablevision equity awards program (since he remained an executive officer of Cablevision).