Cash Flows

The Company’s non-cash investing and financing activities and other supplemental data were as follows:



	Nine Months Ended September 30,
	2012			2011
Non-Cash Investing and Financing Activities:
Continuing Operations:
Deemed capital (distribution) contribution related to the utilization of Cablevision tax losses (see Note 4)	$	(1,448	)	$	37,912
Deemed capital (distribution) contribution, net related to adjustments to the liability for uncertain tax positions and net deferred tax assets as a result of the Distribution (see Note 4)	(1,148		)	44,508
Capital distribution for the transfer of a promissory note receivable to Cablevision (see Promissory Note discussion below)	—			(17,113		)
Deemed capital distribution to Cablevision related to employee benefit plans as a result of the Distribution (see Employee Matters Agreement discussion below)	—			(6,602		)
Deemed capital distribution associated with the issuance of debt to Cablevision (see Issuance of Debt to Cablevision discussion below)	—			(1,250,000		)
Deemed capital contribution related to the allocation of Cablevision share-based compensation expense	—			8,343
Leasehold improvements paid by landlord	2,071			150
Increase in capital lease obligations and related assets	1,399			39
Supplemental Data:
Cash interest paid — continuing operations	99,193			64,300
Income taxes paid, net — continuing operations (see Income Taxes Paid, Net discussion below)	19,892			8,289

Promissory Note

In September 2009, RMH and one of its subsidiaries that was transferred by the Company to Cablevision on December 31, 2010 agreed to the terms of a promissory note having an initial principal amount of $0 and increasing from time to time by advances made by RMH, with an interest rate of 8.625%. Interest income recognized by RMH related to this note amounted to $0 and $120 for the three and nine months ended September 30, 2011, respectively. On January 31, 2011, RMH distributed to a subsidiary of Cablevision all of its rights, title and interest in and to the promissory note. This distribution, which amounted to $17,113, including principal and accrued and unpaid interest, is reflected as a non-cash capital distribution for the nine months ended September 30, 2011.

Employee Matters Agreement

In connection with the Distribution, AMC Networks entered into an Employee Matters Agreement with Cablevision which allocated assets, liabilities and responsibilities with respect to certain employee compensation and benefit plans and programs and certain other related matters. As a result of such agreement, as of June 30, 2011, AMC Networks recorded a net receivable from Cablevision of $876, an increase in accrued employee related costs of $7,478 and a capital distribution of $6,602 which decreased additional paid-in capital for the transfer to the Company from Cablevision of the obligations related to the Company’s employees’ participant accounts in the Cablevision Excess Savings Plan $(3,616) and the Cablevision Excess Cash Balance Pension Plan $(3,862) and for the Company’s obligation to Cablevision for the $6,193 unfunded liability associated with Company employee participants in Cablevision’s Cash Balance Pension Plan. In addition, the Company reduced its long-term incentive plan and stock appreciation rights liabilities and increased amounts due to related parties by $6,742 for its obligation to pay Cablevision for its allocated share of the related expense for Cablevision corporate employees through June 30, 2011. As of December 31, 2011, these related party balances were settled.

Issuance of Debt to Cablevision

In connection with the Distribution, as partial consideration for Cablevision’s contribution of the membership interests in RMH to the Company, $1,250,000, net of discount, of AMC Networks debt was issued to CSC Holdings, which was reflected as a deemed capital distribution in the consolidated statement of stockholders’ deficiency for the year ended December 31, 2011.

Income Taxes Paid, Net

Income taxes paid, net increased by $11,603 primarily due to federal estimated tax payments during the nine months ended September 30, 2012, which were based on annualized taxable income after utilization of NOLs.