Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

Condensed Consolidating Balance Sheet
June 30, 2016
	Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	50,947	$	434,974	$	157,549	$	—		$	643,470
Accounts receivable, trade (less allowance for doubtful accounts)	—		550,996		175,512		—			726,508
Amounts due from related parties, net	—		441		—		—			441
Current portion of program rights, net	—		273,909		116,253		—			390,162
Prepaid expenses, other current assets and intercompany receivable	576		163,799		12,939		(89,941		)	87,373
Deferred tax asset, net	24,651		—		5,450		—			30,101
Total current assets	76,174		1,424,119		467,703		(89,941		)	1,878,055
Property and equipment, net of accumulated depreciation	—		88,991		82,101		—			171,092
Investment in affiliates	3,174,152		818,715		—		(3,992,867		)	—
Program rights, net	—		983,371		140,503		—			1,123,874
Long-term intercompany notes receivable	—		412,948		553		(413,501		)	—
Deferred carriage fees, net	—		49,382		2,307		—			51,689
Intangible assets, net	—		185,169		347,094		—			532,263
Goodwill	—		70,438		637,633		—			708,071
Other assets	—		90,802		109,557		—			200,359
Total assets	$	3,250,326	$	4,123,935	$	1,787,451	$	(4,496,309	)	$	4,665,403
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	92	$	59,657	$	29,306	$	—		$	89,055
Accrued liabilities and intercompany payable	43,325		148,578		133,460		(89,941		)	235,422
Current portion of program rights obligations	—		226,588		64,655		—			291,243
Deferred revenue	—		77,504		15,771		—			93,275
Current portion of long-term debt	230,551		—		—		—			230,551
Current portion of capital lease obligations	—		2,532		1,873		—			4,405
Total current liabilities	273,968		514,859		245,065		(89,941		)	943,951
Program rights obligations	—		366,822		18,623		—			385,445
Long-term debt	2,703,031		—		—		—			2,703,031
Capital lease obligations	—		8,028		30,161		—			38,189
Deferred tax liability, net	151,846		—		8,751		—			160,597
Other liabilities and intercompany notes payable	36,256		60,074		421,443		(413,501		)	104,272
Total liabilities	3,165,101		949,783		724,043		(503,442		)	4,335,485
Commitments and contingencies
Redeemable noncontrolling interests	—		—		213,856		—			213,856
Stockholders’ equity:
AMC Networks stockholders’ equity	85,225		3,174,152		818,715		(3,992,867		)	85,225
Non-redeemable noncontrolling interests	—		—		30,837		—			30,837
Total stockholders’ equity	85,225		3,174,152		849,552		(3,992,867		)	116,062
Total liabilities and stockholders’ equity	$	3,250,326	$	4,123,935	$	1,787,451	$	(4,496,309	)	$	4,665,403

Condensed Consolidating Balance Sheet
December 31, 2015
	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	434		$	148,260	$	167,627	$	—		$	316,321
Accounts receivable, trade (less allowance for doubtful accounts)	—			538,657		135,954		—			674,611
Amounts due from related parties, net	—			3,818		244		—			4,062
Current portion of program rights, net	—			352,664		100,493		—			453,157
Prepaid expenses, other current assets and intercompany receivable	4,158			112,456		12,322		(55,947		)	72,989
Deferred tax asset, net	14,039			—		2,159		—			16,198
Total current assets	18,631			1,155,855		418,799		(55,947		)	1,537,338
Property and equipment, net	—			93,007		70,853		—			163,860
Investment in affiliates	2,797,938			845,069		—		(3,643,007		)	—
Program rights, net	—			889,756		137,638		—			1,027,394
Long-term intercompany notes receivable	—			400,163		676		(400,839		)	—
Deferred carriage fees, net	—			47,437		2,632		—			50,069
Intangible assets, net	—			190,041		359,139		—			549,180
Goodwill	—			71,700		664,575		—			736,275
Other assets	1,449			100,620		98,730		—			200,799
Total assets	$	2,818,018		$	3,793,648	$	1,753,042	$	(4,099,793	)	$	4,264,915
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
Current Liabilities:
Accounts payable	$	6		$	44,152	$	26,990	$	—		$	71,148
Accrued liabilities and intercompany payable	30,857			181,377		97,799		(55,947		)	254,086
Current portion of program rights obligations	—			225,375		64,522		—			289,897
Deferred revenue	—			54,921		9,308		—			64,229
Current portion of long-term debt	148,000			—		—		—			148,000
Current portion of capital lease obligations	—			2,393		1,168		—			3,561
Total current liabilities	178,863			508,218		199,787		(55,947		)	830,921
Program rights obligations	—			415,419		25,172		—			440,591
Long-term debt	2,519,808			—		—		—			2,519,808
Capital lease obligations	—			9,268		20,511		—			29,779
Deferred tax liability, net	126,415			—		10,818		—			137,233
Other liabilities and intercompany notes payable	32,209			62,805		409,355		(400,839		)	103,530
Total liabilities	2,857,295			995,710		665,643		(456,786		)	4,061,862
Commitments and contingencies
Redeemable noncontrolling interests	—			—		211,691		—			211,691
Stockholders’ deficiency:
AMC Networks stockholders’ (deficiency) equity	(39,277		)	2,797,938		845,069		(3,643,007		)	(39,277		)
Non-redeemable noncontrolling interests	—			—		30,639		—			30,639
Total stockholders’ (deficiency) equity	(39,277		)	2,797,938		875,708		(3,643,007		)	(8,638		)
Total liabilities and stockholders’ (deficiency) equity	$	2,818,018		$	3,793,648	$	1,753,042	$	(4,099,793	)	$	4,264,915

Condensed Income Statement

Condensed Consolidating Statement of Income
Three Months Ended June 30, 2016
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	519,955		$	167,267		$	(2,390	)	$	684,832
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			223,254			82,932			(694		)	305,492
Selling, general and administrative	—			130,383			50,433			(1,450		)	179,366
Restructuring expense	—			112			277			—			389
Depreciation and amortization	—			9,952			11,601			—			21,553
Total operating expenses	—			363,701			145,243			(2,144		)	506,800
Operating income	—			156,254			22,024			(246		)	178,032
Other income (expense):
Interest expense, net	(30,172		)	9,538			(9,702		)	—			(30,336		)
Share of affiliates’ income (loss)	142,131			(20,997		)	—			(121,134		)	—
Loss on extinguishment of debt	(9		)	—			—			—			(9		)
Miscellaneous, net	(170		)	(190		)	(24,796		)	246			(24,910		)
Total other income (expense)	111,780			(11,649		)	(34,498		)	(120,888		)	(55,255		)
Income (loss) from operations before income taxes	111,780			144,605			(12,474		)	(121,134		)	122,777
Income tax expense	(34,605		)	(2,474		)	(2,311		)	—			(39,390		)
Net income (loss) including noncontrolling interests	77,175			142,131			(14,785		)	(121,134		)	83,387
Net income attributable to noncontrolling interests	—			—			(6,212		)	—			(6,212		)
Net income (loss) attributable to AMC Networks’ stockholders	$	77,175		$	142,131		$	(20,997	)	$	(121,134	)	$	77,175

Condensed Consolidating Statement of Income
Three Months Ended June 30, 2015
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	464,368		$	136,948		$	(178	)	$	601,138
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			189,500			70,401			(171		)	259,730
Selling, general and administrative	—			114,080			44,819			(19		)	158,880
Restructuring expense	—			557			2,097			—			2,654
Depreciation and amortization	—			9,203			11,837			—			21,040
Total operating expenses	—			313,340			129,154			(190		)	442,304
Operating income	—			151,028			7,794			12			158,834
Other income (expense):
Interest expense, net	(20,020		)	(2,325		)	(9,434		)	—			(31,779		)
Share of affiliates' income	126,287			3,368			—			(129,655		)	—
Miscellaneous, net	23,961			(23,601		)	11,036			(12		)	11,384
Total other income (expense)	130,228			(22,558		)	1,602			(129,667		)	(20,395		)
Income from operations before income taxes	130,228			128,470			9,396			(129,655		)	138,439
Income tax expense	(47,219		)	(2,183		)	(1,595		)	—			(50,997		)
Net income including noncontrolling interests	83,009			126,287			7,801			(129,655		)	87,442
Net income attributable to noncontrolling interests	—			—			(4,433		)	—			(4,433		)
Net income attributable to AMC Networks’ stockholders	$	83,009		$	126,287		$	3,368		$	(129,655	)	$	83,009

Condensed Consolidating Statement of Income
Six Months Ended June 30, 2016
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	1,074,484		$	321,801		$	(4,874	)	$	1,391,411
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			414,032			163,882			(1,377		)	576,537
Selling, general and administrative	—			245,894			94,004			(3,254		)	336,644
Restructuring expense	—			42			312			—			354
Depreciation and amortization	—			20,027			21,158			—			41,185
Total operating expenses	—			679,995			279,356			(4,631		)	954,720
Operating income	—			394,489			42,445			(243		)	436,691
Other income (expense):
Interest expense, net	(60,742		)	18,831			(19,453		)	—			(61,364		)
Share of affiliates’ income (loss)	388,178			(20,145		)	—			(368,033		)	—
Loss on extinguishment of debt	(48,343		)	—			—			—			(48,343		)
Miscellaneous, net	(251		)	(213		)	(25,378		)	243			(25,599		)
Total other income (expense)	278,842			(1,527		)	(44,831		)	(367,790		)	(135,306		)
Income (loss) from operations before income taxes	278,842			392,962			(2,386		)	(368,033		)	301,385
Income tax expense	(88,222		)	(4,784		)	(4,927		)	—			(97,933		)
Net income (loss) including noncontrolling interests	190,620			388,178			(7,313		)	(368,033		)	203,452
Net income attributable to noncontrolling interests	—			—			(12,832		)	—			(12,832		)
Net income (loss) attributable to AMC Networks’ stockholders	$	190,620		$	388,178		$	(20,145	)	$	(368,033	)	$	190,620

Condensed Consolidating Statement of Income
Six Months Ended June 30, 2015
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	1,003,811		$	266,412		$	(403	)	$	1,269,820
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			386,258			136,022			(377		)	521,903
Selling, general and administrative	—			232,567			80,910			(18		)	313,459
Restructuring expense	—			672			2,638			—			3,310
Depreciation and amortization	—			18,170			23,397			—			41,567
Total operating expenses	—			637,667			242,967			(395		)	880,239
Operating income	—			366,144			23,445			(8		)	389,581
Other income (expense):
Interest expense, net	(40,374		)	(12,790		)	(11,202		)	—			(64,366		)
Share of affiliates' income	402,272			7,756			—			(410,028		)	—
Miscellaneous, net	(52,352		)	45,712			7,786			8			1,154
Total other income (expense)	309,546			40,678			(3,416		)	(410,020		)	(63,212		)
Income from operations before income taxes	309,546			406,822			20,029			(410,028		)	326,369
Income tax expense	(105,617		)	(4,550		)	(2,084		)	—			(112,251		)
Net income including noncontrolling interests	203,929			402,272			17,945			(410,028		)	214,118
Net income attributable to noncontrolling interests	—			—			(10,189		)	—			(10,189		)
Net income attributable to AMC Networks’ stockholders	$	203,929		$	402,272		$	7,756		$	(410,028	)	$	203,929

Comprehensive Income (Loss)

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended June 30, 2016
	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	77,175		$	142,131	$	(14,785	)	$	(121,134	)	$	83,387
Other comprehensive income (loss):
Foreign currency translation adjustment	(18,389		)	—		(18,389		)	18,389			(18,389		)
Unrealized loss on interest rate swaps	(765		)	—		—			—			(765		)
Other comprehensive (loss) income, before income taxes	(19,154		)	—		(18,389		)	18,389			(19,154		)
Income tax expense	(8,312		)	—		—			—			(8,312		)
Other comprehensive (loss) income, net of income taxes	(27,466		)	—		(18,389		)	18,389			(27,466		)
Comprehensive income	49,709			142,131		(33,174		)	(102,745		)	55,921
Comprehensive income attributable to noncontrolling interests	—			—		(4,424		)	—			(4,424		)
Comprehensive income attributable to AMC Networks’ stockholders	$	49,709		$	142,131	$	(37,598	)	$	(102,745	)	$	51,497

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended June 30, 2015
	Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	83,009	$	126,287	$	7,801		$	(129,655	)	$	87,442
Other comprehensive income (loss):
Foreign currency translation adjustment	7,591		7,572		16,528			(7,572		)	24,119
Unrealized gain on interest rate swaps	674		—		—			—			674
Other comprehensive income (loss), before income taxes	8,265		7,572		16,528			(7,572		)	24,793
Income tax benefit	5,943		—		—			—			5,943
Other comprehensive income, net of income taxes	14,208		7,572		16,528			(7,572		)	30,736
Comprehensive income	97,217		133,859		24,329			(137,227		)	118,178
Comprehensive income attributable to noncontrolling interests	—		—		(4,433		)	—			(4,433		)
Comprehensive income attributable to AMC Networks' stockholders	$	97,217	$	133,859	$	19,896		$	(137,227	)	$	113,745

Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2016
	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	190,620		$	388,178	$	(7,313	)	$	(368,033	)	$	203,452
Other comprehensive income (loss):
Foreign currency translation adjustment	(3,004		)	—		(3,004		)	3,004			(3,004		)
Unrealized loss on interest rate swaps	(2,343		)	—		—			—			(2,343		)
Other comprehensive (loss) income, before income taxes	(5,347		)	—		(3,004		)	3,004			(5,347		)
Income tax expense	(10,211		)	—		—			—			(10,211		)
Other comprehensive (loss) income, net of income taxes	(15,558		)	—		(3,004		)	3,004			(15,558		)
Comprehensive income (loss)	175,062			388,178		(10,317		)	(365,029		)	187,894
Comprehensive income attributable to noncontrolling interests	—			—		(11,456		)	—			(11,456		)
Comprehensive income (loss) attributable to AMC Networks’ stockholders	$	175,062		$	388,178	$	(21,773	)	$	(365,029	)	$	176,438

Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2015
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	203,929		$	402,272		$	17,945		$	(410,028	)	$	214,118
Other comprehensive income (loss):
Foreign currency translation adjustment	(64,120		)	(64,120		)	27,414			64,120			(36,706		)
Unrealized gain on interest rate swaps	1,370			—			—			—			1,370
Other comprehensive (loss) income, before income taxes	(62,750		)	(64,120		)	27,414			64,120			(35,336		)
Income tax benefit	3,664			—			—			—			3,664
Other comprehensive (loss) income, net of income taxes	(59,086		)	(64,120		)	27,414			64,120			(31,672		)
Comprehensive income	144,843			338,152			45,359			(345,908		)	182,446
Comprehensive income attributable to noncontrolling interests	—			—			(10,189		)	—			(10,189		)
Comprehensive income attributable to AMC Networks' stockholders	$	144,843		$	338,152		$	35,170		$	(345,908	)	$	172,257

Condensed Cash Flow Statement

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	277,785		$	306,120		$	16,349		$	(370,690	)	$	229,564
Cash flows from investing activities:
Capital expenditures	—			(15,767		)	(8,419		)	—			(24,186		)
Payments for acquisitions, net of cash acquired	—			—			(354		)	—			(354		)
(Increase) decrease to investment in affiliates	(359,483		)	(31,090		)	48,542			342,031			—
Net cash used in investing activities	(359,483		)	(46,857		)	39,769			342,031			(24,540		)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt	982,500			—			—			—			982,500
Principal payments on long-term debt	(728,449		)	—			—			—			(728,449		)
Premium and fees paid on extinguishment of debt	(39,188		)	—			—			—			(39,188		)
Payments for financing costs	(2,070		)	—			—			—			(2,070		)
Deemed repurchases of restricted stock/units	(10,834		)	—			—			—			(10,834		)
Purchase of treasury stock	(48,227		)	—			—			—			(48,227		)
Proceeds from stock option exercises	1,216			—			—			—			1,216
Excess tax benefits from share-based compensation arrangements	781			—			—			—			781
Principal payments on capital lease obligations	—			(1,208		)	(867		)	—			(2,075		)
Distributions to noncontrolling interest	—			—			(8,977		)	—			(8,977		)
Net cash provided by (used in) financing activities	155,729			(1,208		)	(9,844		)	—			144,677
Net increase (decrease) in cash and cash equivalents from operations	74,031			258,055			46,274			(28,659		)	349,701
Effect of exchange rate changes on cash and cash equivalents	(23,518		)	28,659			(56,352		)	28,659			(22,552		)
Cash and cash equivalents at beginning of period	434			148,260			167,627			—			316,321
Cash and cash equivalents at end of period	$	50,947		$	434,974		$	157,549		$	—		$	643,470

Condensed Consolidated Statement of Cash Flows
Six Months Ended June 30, 2015
	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	238,455		$	169		$	362,865		$	(411,248	)	$	190,241
Cash flows from investing activities:
Capital expenditures	(3		)	(22,875		)	(10,246		)	—			(33,124		)
Payments for acquisitions, net of cash acquired	—			—			(6,545		)	—			(6,545		)
Purchases of investments	—			(369		)	(23,881		)	—			(24,250		)
(Increase) decrease to investment in affiliates	(134,957		)	127,384			(339,452		)	347,025			—
Net cash (used in) provided by investing activities	(134,960		)	104,140			(380,124		)	347,025			(63,919		)
Cash flows from financing activities:
Principal payments on long-term debt	(37,000		)	—			—			—			(37,000		)
Payment of Promissory Note	—			—			(40,000		)	—			(40,000		)
Deemed repurchases of restricted stock/units	(14,320		)	—			—			—			(14,320		)
Proceeds from stock option exercises	1,031			—			—			—			1,031
Excess tax benefits from share-based compensation arrangements	4,038			—			—			—			4,038
Principal payments on capital lease obligations	—			(1,097		)	(352		)	—			(1,449		)
Distributions to noncontrolling member	—			—			(3,154		)	—			(3,154		)
Contributions from noncontrolling member	—			—			1,373			—			1,373
Net cash (used in) provided by financing activities	(46,251		)	(1,097		)	(42,133		)	—			(89,481		)
Net increase in cash and cash equivalents from operations	57,244			103,212			(59,392		)	(64,223		)	36,841
Effect of exchange rate changes on cash and cash equivalents	(57,931		)	(64,223		)	60,783			64,223			2,852
Cash and cash equivalents at beginning of period	1,581			83,676			116,110			—			201,367
Cash and cash equivalents at end of period	$	894		$	122,665		$	117,501		$	—		$	241,060