Net Income Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Abstract]

Net Income Per Share

Net Income per Share

The consolidated statements of income present basic and diluted net income per share (“EPS”). Basic EPS is based upon net income divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the dilutive effects of AMC Networks stock options (including those held by directors and employees of related parties of the Company) and AMC Networks restricted shares/units (including those held by employees of related parties of the Company).

The following is a reconciliation between basic and diluted weighted average shares outstanding:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2012	2011	2012	2011
Basic weighted average shares outstanding	70,506,000	69,284,000	70,286,000	69,203,000
Effect of dilution:
Stock options	821,000	1,083,000	847,000	365,000
Restricted shares/units	938,000	1,901,000	1,061,000	641,000
Diluted weighted average shares outstanding	72,265,000	72,268,000	72,194,000	70,209,000

The number of shares used to compute basic and diluted EPS includes the number of shares of AMC Networks common stock issued to Cablevision shareholders on the Distribution date, and excludes unvested outstanding restricted shares, based on a distribution ratio of one share of AMC Networks common stock for every four shares of Cablevision common stock outstanding. The dilutive effect of the Company’s share-based awards that were issued in connection with the adjustment or conversion of Cablevision’s share-based awards upon the Distribution (including Cablevision stock options and restricted share awards granted prior to the Distribution) and subsequent Company grants, are included in the computation of diluted EPS in periods subsequent to the Distribution.

Approximately 231,000 restricted shares/units for the three and nine months ended September 30, 2012 and approximately 149,000 restricted shares/units for the three and nine months ended September 30, 2011 have been excluded from diluted weighted average common shares outstanding since the performance criteria on these awards has not yet been satisfied.