Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

Condensed Consolidating Balance Sheet
September 30, 2014
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	4,698		$	217,434		$	74,490	$	—		$	296,622
Accounts receivable, trade (less allowance for doubtful accounts)	—			359,812			123,788		—			483,600
Amounts due from related parties, net	—			3,569			—		—			3,569
Current portion of program rights, net	—			351,022			55,489		—			406,511
Prepaid expenses, other current assets and intercompany receivable	31,406			67,255			10,906		(39,879		)	69,688
Deferred tax asset, net	30,004			—			3,928		—			33,932
Total current assets	66,108			999,092			268,601		(39,879		)	1,293,922
Property and equipment, net of accumulated depreciation	—			70,421			53,342		—			123,763
Investment in affiliates	1,748,405			911,639			—		(2,660,044		)	—
Program rights, net	—			917,398			47,034		—			964,432
Long-term intercompany receivable	651,405			115,876			—		(767,281		)	—
Deferred carriage fees, net	—			47,025			2,234		—			49,259
Intangible assets, net	—			202,229			295,094		—			497,323
Goodwill	—			74,855			518,025		—			592,880
Other assets	28,393			65,940			47,343		—			141,676
Total assets	$	2,494,311		$	3,404,475		$	1,231,673	$	(3,467,204	)	$	3,663,255
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
Current Liabilities:
Accounts payable	$	298		$	64,822		$	27,063	$	—		$	92,183
Accrued liabilities and intercompany payable	33,523			134,989			54,162		(39,879		)	182,795
Current portion of program rights obligations	—			228,687			33,096		—			261,783
Deferred revenue	—			35,647			3,707		—			39,354
Current portion of long-term debt	55,500			—			—		—			55,500
Current portion of capital lease obligations	—			2,185			705		—			2,890
Total current liabilities	89,321			466,330			118,733		(39,879		)	634,505
Program rights obligations	—			481,993			2,260		—			484,253
Long-term debt	2,703,458			—			—		—			2,703,458
Capital lease obligations	—			12,522			15,692		—			28,214
Deferred tax liability, net	88,515			—			20,775		—			109,290
Other liabilities and intercompany payable	31,081			699,710			128,048		(767,281		)	91,558
Total liabilities	2,912,375			1,660,555			285,508		(807,160		)	4,051,278
Commitments and contingencies
Stockholders’ deficiency:
AMC Networks stockholders’ (deficiency) equity	(418,064		)	1,744,957			915,108		(2,660,044		)	(418,043		)
Total AMC Networks stockholders’ (deficiency) equity	(418,064		)	1,744,957			915,108		(2,660,044		)	(418,043		)
Noncontrolling interests	—			(1,037		)	31,057		—			30,020
Total Stockholders' (deficiency) equity	(418,064		)	1,743,920			946,165		(2,660,044		)	(388,023		)
Total liabilities and stockholders’ (deficiency) equity	$	2,494,311		$	3,404,475		$	1,231,673	$	(3,467,204	)	$	3,663,255

Condensed Income Statement

Condensed Consolidating Statement of Income
Three Months Ended September 30, 2014
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	420,227		$	99,323		$	—		$	519,550
Operating expenses:
Technical and operating	—			196,783			55,773			—			252,556
Selling, general and administrative	—			104,176			28,675			—			132,851
Restructuring expense	—			4,746			873			—			5,619
Depreciation and amortization	—			9,045			9,250			—			18,295
	—			314,750			94,571			—			409,321
Operating income	—			105,477			4,752			—			110,229
Other income (expense):
Interest expense, net	(17,512		)	(11,904		)	(1,900		)	—			(31,316		)
Share of affiliates income	151,603			(1,538		)	—			(150,065		)	—
Miscellaneous, net	(57,230		)	50,264			(4,800		)	—			(11,766		)
	76,861			36,822			(6,700		)	(150,065		)	(43,082		)
Income (loss) from continuing operations before income taxes	76,861			142,299			(1,948		)	(150,065		)	67,147
Income tax (expense) benefit	(23,701		)	8,853			1,770			—			(13,078		)
Income (loss) from continuing operations	53,160			151,152			(178		)	(150,065		)	54,069
Loss from discontinued operations, net of income taxes	—			—			(966		)	—			(966		)
Net income (loss) including noncontrolling interest	53,160			151,152			(1,144		)	(150,065		)	53,103
Net (income) loss attributable to noncontrolling interests	—			451			(394		)	—			57
Net income (loss) attributable to AMC Networks' stockholders	$	53,160		$	151,603		$	(1,538	)	$	(150,065	)	$	53,160

Condensed Consolidating Statement of Income
Nine Months Ended September 30, 2014
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	1,293,088		$	273,109		$	—		$	1,566,197
Operating expenses:
Technical and operating	—			553,755			148,016			—			701,771
Selling, general and administrative	—			345,516			74,571			10			420,097
Restructuring expense	—			4,746			2,026			—			6,772
Depreciation and amortization	—			25,765			24,455			—			50,220
	—			929,782			249,068			10			1,178,860
Operating income	—			363,306			24,041			(10		)	387,337
Other income (expense):
Interest expense, net	(59,697		)	(32,489		)	(4,166		)	—			(96,352		)
Share of affiliates income	390,479			4,532			—			(395,011		)	—
Miscellaneous, net	(55,388		)	49,930			(10,559		)	10			(16,007		)
	275,394			21,973			(14,725		)	(395,001		)	(112,359		)
Income from continuing operations before income taxes	275,394			385,279			9,316			(395,011		)	274,978
Income tax (expense) benefit	(92,212		)	3,895			(425		)	—			(88,742		)
Income from continuing operations	183,182			389,174			8,891			(395,011		)	186,236
Loss from discontinued operations, net of income taxes	—			—			(3,448		)	—			(3,448		)
Net income including noncontrolling interest	183,182			389,174			5,443			(395,011		)	182,788
Net (income) loss attributable to noncontrolling interests	—			1,305			(911		)	—			394
Net income attributable to AMC Networks' stockholders	$	183,182		$	390,479		$	4,532		$	(395,011	)	$	183,182

Comprehensive Income (Loss)

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended September 30, 2014
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss) including non controlling interest	$	53,160		$	151,152		$	(1,144	)	$	(150,065	)	$	53,103
Other comprehensive income (loss):
Foreign currency translation adjustment	(57,503		)	(61,207		)	5,322			61,207			(52,181		)
Unrealized gain on interest rate swaps	1,571			—			—			—			1,571
Other comprehensive income (loss), before income taxes	(55,932		)	(61,207		)	5,322			61,207			(50,610		)
Income tax expense	(569		)	—			—			—			(569		)
Other comprehensive (loss) income, net of income taxes	(56,501		)	(61,207		)	5,322			61,207			(51,179		)
Comprehensive (loss) income	(3,341		)	89,945			4,178			(88,858		)	1,924
Comprehensive loss attributable to noncontrolling interests	—			451			2,016			—			2,467
Comprehensive (loss) income attributable to AMC Networks' stockholders	$	(3,341	)	$	90,396		$	6,194		$	(88,858	)	$	4,391

Condensed Consolidating Statement of Comprehensive Income
Nine Months Ended September 30, 2014
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss) including non controlling interest	$	183,182		$	389,174		$	5,443	$	(395,011	)	$	182,788
Other comprehensive income (loss):
Foreign currency translation adjustment	(42,129		)	(45,833		)	—		45,833			(42,129		)
Unrealized gain on interest rate swaps	3,528			—			—		—			3,528
Other comprehensive income (loss), before income taxes	(38,601		)	(45,833		)	—		45,833			(38,601		)
Income tax expense	(1,291		)	—			—		—			(1,291		)
Other comprehensive (loss) income, net of income taxes	(39,892		)	(45,833		)	—		45,833			(39,892		)
Comprehensive income	143,290			343,341			5,443		(349,178		)	142,896
Comprehensive loss attributable to noncontrolling interests	—			1,305			652		—			1,957
Comprehensive income attributable to AMC Networks' stockholders	$	143,290		$	344,646		$	6,095	$	(349,178	)	$	144,853

Condensed Cash Flow Statement

Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2014
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	166,339			292,623			25,668			(222,800		)	261,830
Cash flows from investing activities:
Capital expenditures	(1,426		)	(16,144		)	(6,770		)	—			(24,340		)
Payments for acquisitions, net of cash acquired	—			—			(1,024,427		)	—			(1,024,427		)
Acquisition of investments	—			(3,482		)	(502		)	—			(3,984		)
(Increase) decrease to investment in affiliates	(43,581		)	(133,386		)	—			176,967			—
Proceeds from insurance settlements	—			654			—			—			654
Net cash (used in) provided by investing activities	(45,007		)	(152,358		)	(1,031,699		)	176,967			(1,052,097		)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt	600,000			—			—			—			600,000
Payments for financing costs	(9,266		)	—			—			—			(9,266		)
Deemed repurchases of restricted stock	(17,804		)	—			—			—			(17,804		)
Proceeds from stock option exercises	1,070			—			—			—			1,070
Excess tax benefits from share-based compensation arrangements	5,662			—			—			—			5,662
Principal payments on capital lease obligations	—			(1,382		)	(1,325		)	—			(2,707		)
Long-term intercompany debt	(651,405		)	651,405			—			—			—
Cash contributions from member	—			(1,046,413		)	1,046,413			—			—
Contributions from noncontrolling interest member	—			—			835			—			835
Net cash (used in) provided by financing activities	(71,743		)	(396,390		)	1,045,923			—			577,790
Net increase in cash and cash equivalents from continuing operations	49,589			(256,125		)	39,892			(45,833		)	(212,477		)
Cash flows from discontinued operations:
Net cash used in operating activities	—			—			(2,955		)	—			(2,955		)
Net decrease in cash and cash equivalents from discontinued operations	—			—			(2,955		)	—			(2,955		)
Effect of exchange rate changes on cash and cash equivalents	(45,833		)	(45,833		)	35,936			45,833			(9,897		)
Cash and cash equivalents at beginning of period	942			519,392			1,617			—			521,951
Cash and cash equivalents at end of period	$	4,698		$	217,434		$	74,490		$	—		$	296,622