Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



Condensed Consolidating Balance Sheet
March 31, 2017
(In thousands)	Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	523	$	262,256	$	140,869		$	—		$	403,648
Accounts receivable, trade (less allowance for doubtful accounts)	—		559,982		156,922			—			716,904
Amounts due from related parties, net	—		536		—			—			536
Current portion of program rights, net	—		322,957		138,048			—			461,005
Prepaid expenses, other current assets and intercompany receivable	16		177,967		16,450			(122,539		)	71,894
Total current assets	539		1,323,698		452,289			(122,539		)	1,653,987
Property and equipment, net of accumulated depreciation	—		108,318		60,905			—			169,223
Investment in affiliates	3,120,330		805,401		—			(3,925,731		)	—
Program rights, net	—		913,013		164,345			—			1,077,358
Long-term intercompany notes receivable	—		431,140		678			(431,818		)	—
Deferred carriage fees, net	—		39,336		1,067			—			40,403
Intangible assets, net	—		177,861		300,899			—			478,760
Goodwill	—		68,518		593,558			—			662,076
Deferred tax asset, net	—		—		8,906			—			8,906
Other assets	1,790		133,612		243,939			—			379,341
Total assets	$	3,122,659	$	4,000,897	$	1,826,586		$	(4,480,088	)	$	4,470,054
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	135	$	55,547	$	41,795		$	—		$	97,477
Accrued liabilities and intercompany payable	143,519		125,579		153,641			(122,539		)	300,200
Current portion of program rights obligations	—		205,501		70,582			—			276,083
Deferred revenue	—		35,935		10,967			—			46,902
Current portion of long-term debt	240,500		—		—			—			240,500
Current portion of capital lease obligations	—		2,713		1,736			—			4,449
Total current liabilities	384,154		425,275		278,721			(122,539		)	965,611
Program rights obligations	—		366,515		31,480			—			397,995
Long-term debt, net	2,525,544		—		—			—			2,525,544
Capital lease obligations	—		5,949		28,212			—			34,161
Deferred tax liability, net	153,594		—		(2,445		)	—			151,149
Other liabilities and intercompany notes payable	27,915		82,828		442,355			(431,818		)	121,280
Total liabilities	3,091,207		880,567		778,323			(554,357		)	4,195,740
Commitments and contingencies
Redeemable noncontrolling interests	—		—		214,998			—			214,998
Stockholders’ equity:
AMC Networks stockholders’ equity	31,452		3,120,330		805,401			(3,925,731		)	31,452
Non-redeemable noncontrolling interests	—		—		27,864			—			27,864
Total stockholders’ equity	31,452		3,120,330		833,265			(3,925,731		)	59,316
Total liabilities and stockholders’ equity	$	3,122,659	$	4,000,897	$	1,826,586		$	(4,480,088	)	$	4,470,054



Condensed Consolidating Balance Sheet
December 31, 2016
(In thousands)	Parent Company		Guarantor Subsidiaries	Non- Guarantor Subsidiaries	Eliminations		Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	565		320,950	159,874	—		481,389
Accounts receivable, trade (less allowance for doubtful accounts)	—		537,751	162,904	—		700,655
Amounts due from related parties, net	—		508	—	—		508
Current portion of program rights, net	—		307,050	134,080	—		441,130
Prepaid expenses, other current assets and intercompany receivable	948		151,175	15,961	(95,423	)	72,661
Total current assets	1,513		1,317,434	472,819	(95,423	)	1,696,343
Property and equipment, net of accumulated depreciation	—		104,272	62,364	—		166,636
Investment in affiliates	3,029,922		784,024	—	(3,813,946	)	—
Program rights, net	—		947,657	160,929	—		1,108,586
Long-term intercompany notes receivable	—		432,099	817	(432,916	)	—
Deferred carriage fees, net	—		42,656	1,230	—		43,886
Intangible assets, net	—		180,297	305,512	—		485,809
Goodwill	—		69,154	588,554	—		657,708
Deferred tax asset, net	—		—	8,598	—		8,598
Other assets	1,471		116,608	194,950	—		313,029
Total assets	3,032,906		3,994,201	1,795,773	(4,342,285	)	4,480,595
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	—		40,033	48,644	—		88,677
Accrued liabilities and intercompany payable	71,680		182,667	125,505	(95,423	)	284,429
Current portion of program rights obligations	—		226,474	74,371	—		300,845
Deferred revenue	—		42,782	10,861	—		53,643
Current portion of long-term debt	222,000		—	—	—		222,000
Current portion of capital lease obligations	—		2,645	1,939	—		4,584
Total current liabilities	293,680		494,601	261,320	(95,423	)	954,178
Program rights obligations	—		365,262	32,913	—		398,175
Long-term debt, net	2,597,263		—	—	—		2,597,263
Capital lease obligations	—		6,647	28,635	—		35,282
Deferred tax liability, net	145,364		—	427	—		145,791
Other liabilities and intercompany notes payable	26,681		97,769	440,685	(432,916	)	132,219
Total liabilities	3,062,988		964,279	763,980	(528,339	)	4,262,908
Commitments and contingencies
Redeemable noncontrolling interests	—		—	219,331	—		219,331
Stockholders’ equity:
AMC Networks stockholders’ (deficiency) equity	(30,082	)	3,029,922	784,024	(3,813,946	)	(30,082	)
Non-redeemable noncontrolling interests	—		—	28,438	—		28,438
Total stockholders’ (deficiency) equity	(30,082	)	3,029,922	812,462	(3,813,946	)	(1,644	)
Total liabilities and stockholders’ (deficiency) equity	3,032,906		3,994,201	1,795,773	(4,342,285	)	4,480,595

Condensed Income Statement



Condensed Consolidating Statement of Income
Three Months Ended March 31, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	579,382		$	143,132		$	(2,325	)	$	720,189
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			221,754			77,617			(759		)	298,612
Selling, general and administrative	—			119,681			45,479			(1,451		)	163,709
Depreciation and amortization	—			10,204			13,289			—			23,493
Restructuring expense	—			2,704			—			—			2,704
Total operating expenses	—			354,343			136,385			(2,210		)	488,518
Operating income	—			225,039			6,747			(115		)	231,671
Other income (expense):
Interest expense, net	(29,412		)	9,823			(7,418		)	—			(27,007		)
Share of affiliates’ income	235,774			3,145			—			(238,919		)	—
Miscellaneous, net	(112		)	431			10,615			115			11,049
Total other income (expense)	206,250			13,399			3,197			(238,804		)	(15,958		)
Income from operations before income taxes	206,250			238,438			9,944			(238,919		)	215,713
Income tax expense	(70,033		)	(2,664		)	(385		)	—			(73,082		)
Net income including noncontrolling interests	136,217			235,774			9,559			(238,919		)	142,631
Net income attributable to noncontrolling interests	—			—			(6,414		)	—			(6,414		)
Net income attributable to AMC Networks’ stockholders	$	136,217		$	235,774		$	3,145		$	(238,919	)	$	136,217



Condensed Consolidating Statement of Income
Three Months Ended March 31, 2016
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	554,326		$	154,737		$	(2,484	)	$	706,579
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			190,110			84,847			(683		)	274,274
Selling, general and administrative	—			114,357			41,348			(1,804		)	153,901
Depreciation and amortization	—			10,075			9,557			—			19,632
Restructuring expense (credit)	—			(70		)	35			—			(35		)
Total operating expenses	—			314,472			135,787			(2,487		)	447,772
Operating income	—			239,854			18,950			3			258,807
Other income (expense):
Interest expense, net	(30,572		)	9,293			(9,750		)	—			(31,029		)
Share of affiliates’ income (loss)	246,047			(770		)	—			(245,277		)	—
Loss on extinguishment of debt	(48,334		)	—			—			—			(48,334		)
Miscellaneous, net	(79		)	(21		)	(734		)	(3		)	(837		)
Total other income (expense)	167,062			8,502			(10,484		)	(245,280		)	(80,200		)
Income from operations before income taxes	167,062			248,356			8,466			(245,277		)	178,607
Income tax expense	(53,618		)	(2,309		)	(2,616		)	—			(58,543		)
Net income including noncontrolling interests	113,444			246,047			5,850			(245,277		)	120,064
Net income attributable to noncontrolling interests	—			—			(6,620		)	—			(6,620		)
Net income (loss) attributable to AMC Networks’ stockholders	$	113,444		$	246,047		$	(770	)	$	(245,277	)	$	113,444

Comprehensive Income (Loss)



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended March 31, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	136,217		$	235,774	$	9,559		$	(238,919	)	$	142,631
Other comprehensive income (loss):
Foreign currency translation adjustment	9,864			—		9,864			(9,864		)	9,864
Unrealized gain on interest rate swaps	319			—		—			—			319
Unrealized gain on available for sale securities	4,021			—		—			—			4,021
Other comprehensive income, before income taxes	14,204			—		9,864			(9,864		)	14,204
Income tax expense	(1,597		)	—		—			—			(1,597		)
Other comprehensive income, net of income taxes	12,607			—		9,864			(9,864		)	12,607
Comprehensive income	148,824			235,774		19,423			(248,783		)	155,238
Comprehensive income attributable to noncontrolling interests	—			—		(6,805		)	—			(6,805		)
Comprehensive income attributable to AMC Networks’ stockholders	$	148,824		$	235,774	$	12,618		$	(248,783	)	$	148,433



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended March 31, 2016
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	113,444		$	246,047		$	5,850		$	(245,277	)	$	120,064
Other comprehensive income (loss):
Foreign currency translation adjustment	(2,845		)	(2,845		)	18,230			2,845			15,385
Unrealized loss on interest rate swaps	(1,578		)	—			—			—			(1,578		)
Other comprehensive (loss) income, before income taxes	(4,423		)	(2,845		)	18,230			2,845			13,807
Income tax expense	(1,899		)	—			—			—			(1,899		)
Other comprehensive (loss) income, net of income taxes	(6,322		)	(2,845		)	18,230			2,845			11,908
Comprehensive income	107,122			243,202			24,080			(242,432		)	131,972
Comprehensive income attributable to noncontrolling interests	—			—			(7,032		)	—			(7,032		)
Comprehensive income attributable to AMC Networks’ stockholders	$	107,122		$	243,202		$	17,048		$	(242,432	)	$	124,940

Condensed Cash Flow Statement



Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	224,091		$	138,889		$	21,097		$	(239,207	)	$	144,870
Cash flows from investing activities:
Capital expenditures	—			(15,645		)	(4,561		)	—			(20,206		)
Investment in and loans to investees	—			—			(28,000		)	—			(28,000		)
Increase to investment in affiliates	(57,926		)	(36,982		)	—			94,908			—
Net cash used in investing activities	(57,926		)	(52,627		)	(32,561		)	94,908			(48,206		)
Cash flows from financing activities:
Principal payments on long-term debt	(55,500		)	—			—			—			(55,500		)
Deemed repurchases of restricted stock units	(12,796		)	—			—			—			(12,796		)
Purchase of treasury stock	(91,423		)	—			—			—			(91,423		)
Principal payments on capital lease obligations	—			(657		)	(744		)	—			(1,401		)
Distributions to noncontrolling interests	—			—			(11,712		)	—			(11,712		)
Net cash used in financing activities	(159,719		)	(657		)	(12,456		)	—			(172,832		)
Net increase (decrease) in cash and cash equivalents from operations	6,446			85,605			(23,920		)	(144,299		)	(76,168		)
Effect of exchange rate changes on cash and cash equivalents	(6,488		)	(144,299		)	4,915			144,299			(1,573		)
Cash and cash equivalents at beginning of period	565			320,950			159,874			—			481,389
Cash and cash equivalents at end of period	$	523		$	262,256		$	140,869		$	—		$	403,648



Condensed Consolidated Statement of Cash Flows
Three Months Ended March 31, 2016
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	204,100		$	193,453		$	19,383		$	(249,552	)	$	167,384
Cash flows from investing activities:
Capital expenditures	2			(8,151		)	(4,238		)	—			(12,387		)
Increase to investment in affiliates	(160,665		)	(72,411		)	(13,181		)	246,257			—
Net cash used in investing activities	(160,663		)	(80,562		)	(17,419		)	246,257			(12,387		)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt	982,500			—			—			—			982,500
Principal payments on long-term debt	(691,449		)	—			—			—			(691,449		)
Premium and fees paid on extinguishment of debt	(39,179		)	—			—			—			(39,179		)
Payments for financing costs	(2,070		)	—			—			—			(2,070		)
Deemed repurchases of restricted stock units	(10,413		)	—			—			—			(10,413		)
Proceeds from stock option exercises	1,200			—			—			—			1,200
Excess tax benefits from share-based compensation arrangements	852			—			—			—			852
Principal payments on capital lease obligations	—			(597		)	(489		)	—			(1,086		)
Distributions to noncontrolling interest	—			—			(8,968		)	—			(8,968		)
Net cash provided by (used in) financing activities	241,441			(597		)	(9,457		)	—			231,387
Net increase (decrease) in cash and cash equivalents from operations	284,878			112,294			(7,493		)	(3,295		)	386,384
Effect of exchange rate changes on cash and cash equivalents	(5,844		)	(3,295		)	5,939			3,295			95
Cash and cash equivalents at beginning of period	434			148,260			167,627			—			316,321
Cash and cash equivalents at end of period	$	279,468		$	257,259		$	166,073		$	—		$	702,800