Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



Condensed Consolidating Balance Sheet
June 30, 2017
(In thousands)	Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	116	$	42,368	$	146,995		$	—		$	189,479
Accounts receivable, trade (less allowance for doubtful accounts)	—		559,893		184,754			—			744,647
Amounts due from related parties, net	—		488		—			—			488
Current portion of program rights, net	—		301,511		148,579			—			450,090
Prepaid expenses, other current assets and intercompany receivable	501		170,958		13,235			(107,082		)	77,612
Assets held for sale	—		—		16,433			—			16,433
Total current assets	617		1,075,218		509,996			(107,082		)	1,478,749
Property and equipment, net of accumulated depreciation	—		112,189		46,964			—			159,153
Investment in affiliates	2,998,053		882,052		—			(3,880,105		)	—
Program rights, net	—		1,046,405		175,511			—			1,221,916
Long-term intercompany notes receivable	—		463,048		564			(463,612		)	—
Deferred carriage fees, net	—		35,972		1,654			—			37,626
Intangible assets, net	—		175,425		303,754			—			479,179
Goodwill	—		67,881		612,353			—			680,234
Deferred tax asset, net	—		—		9,079			—			9,079
Other assets	1,610		129,289		281,333			—			412,232
Total assets	$	3,000,280	$	3,987,479	$	1,941,208		$	(4,450,799	)	$	4,478,168
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	16	$	45,877	$	45,000		$	—		$	90,893
Accrued liabilities and intercompany payable	53,622		149,307		138,647			(107,082		)	234,494
Current portion of program rights obligations	—		228,419		73,108			—			301,527
Deferred revenue	—		32,787		15,047			—			47,834
Current portion of long-term debt	259,000		—		—			—			259,000
Current portion of capital lease obligations	—		2,703		1,550			—			4,253
Liabilities held for sale	—		—		16,433			—			16,433
Total current liabilities	312,638		459,093		289,785			(107,082		)	954,434
Program rights obligations	—		457,105		28,778			—			485,883
Long-term debt, net	2,453,814		—		—			—			2,453,814
Capital lease obligations	—		5,325		23,016			—			28,341
Deferred tax liability, net	163,924		—		(3,928		)	—			159,996
Other liabilities and intercompany notes payable	40,227		67,903		476,372			(463,612		)	120,890
Total liabilities	2,970,603		989,426		814,023			(570,694		)	4,203,358
Commitments and contingencies
Redeemable noncontrolling interests	—		—		217,149			—			217,149
Stockholders’ equity:
AMC Networks stockholders’ equity	29,677		2,998,053		882,052			(3,880,105		)	29,677
Non-redeemable noncontrolling interests	—		—		27,984			—			27,984
Total stockholders’ equity	29,677		2,998,053		910,036			(3,880,105		)	57,661
Total liabilities and stockholders’ equity	$	3,000,280	$	3,987,479	$	1,941,208		$	(4,450,799	)	$	4,478,168



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 Consolidating Income Statements



Condensed Consolidating Statement of Income
Three Months Ended June 30, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	536,302		$	179,675		$	(5,432	)	$	710,545
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			240,150			95,472			(777		)	334,845
Selling, general and administrative	—			116,423			50,838			(4,988		)	162,273
Depreciation and amortization	—			10,123			10,483			—			20,606
Impairment charges	—			—			17,112			—			17,112
Restructuring credit	—			(45		)	(36		)	—			(81		)
Total operating expenses	—			366,651			173,869			(5,765		)	534,755
Operating income	—			169,651			5,806			333			175,790
Other income (expense):
Interest expense, net	(29,733		)	10,165			(7,383		)	—			(26,951		)
Share of affiliates’ income	184,748			5,681			—			(190,429		)	—
Miscellaneous, net	(230		)	1,898			17,645			(333		)	18,980
Total other income (expense)	154,785			17,744			10,262			(190,762		)	(7,971		)
Income from operations before income taxes	154,785			187,395			16,068			(190,429		)	167,819
Income tax expense	(52,187		)	(2,647		)	(5,359		)	—			(60,193		)
Net income including noncontrolling interests	102,598			184,748			10,709			(190,429		)	107,626
Net income attributable to noncontrolling interests	—			—			(5,028		)	—			(5,028		)
Net income attributable to AMC Networks’ stockholders	$	102,598		$	184,748		$	5,681		$	(190,429	)	$	102,598



Condensed Consolidating Statement of Income
Three Months Ended June 30, 2016
(In thousands)	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
Depreciation and amortization	—			9,952			11,601			—			21,553
Restructuring expense	—			112			277			—			389
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
Six Months Ended June 30, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	1,115,684		$	322,807		$	(7,757	)	$	1,430,734
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			461,904			173,089			(1,536		)	633,457
Selling, general and administrative	—			236,104			96,317			(6,439		)	325,982
Depreciation and amortization	—			20,327			23,772			—			44,099
Impairment charges	—			—			17,112			—			17,112
Restructuring expense	—			2,659			(36		)	—			2,623
Total operating expenses	—			720,994			310,254			(7,975		)	1,023,273
Operating income	—			394,690			12,553			218			407,461
Other income (expense):
Interest expense, net	(59,145		)	19,988			(14,801		)	—			(53,958		)
Share of affiliates’ income	420,522			8,826			—			(429,348		)	—
Miscellaneous, net	(343		)	2,329			28,260			(218		)	30,028
Total other income (expense)	361,034			31,143			13,459			(429,566		)	(23,930		)
Income from operations before income taxes	361,034			425,833			26,012			(429,348		)	383,531
Income tax expense	(122,220		)	(5,311		)	(5,744		)	—			(133,275		)
Net income including noncontrolling interests	238,814			420,522			20,268			(429,348		)	250,256
Net income attributable to noncontrolling interests	—			—			(11,442		)	—			(11,442		)
Net income attributable to AMC Networks’ stockholders	$	238,814		$	420,522		$	8,826		$	(429,348	)	$	238,814



Condensed Consolidating Statement of Income
Six Months Ended June 30, 2016
(In thousands)	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
Depreciation and amortization	—			20,027			21,158			—			41,185
Restructuring expense	—			42			312			—			354
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 Comprehensive Income (Loss)



Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	238,814		$	420,522	$	20,268		$	(429,348	)	$	250,256
Other comprehensive income (loss):
Foreign currency translation adjustment	47,684			—		47,684			(47,684		)	47,684
Unrealized (loss) gain on interest rate swaps	139			—		—			—			139
Unrealized (loss) gain on available for sale securities	2,938			—		—			—			2,938
Other comprehensive income, before income taxes	50,761			—		47,684			(47,684		)	50,761
Income tax expense	(1,132		)	—		—			—			(1,132		)
Other comprehensive income, net of income taxes	49,629			—		47,684			(47,684		)	49,629
Comprehensive income	288,443			420,522		67,952			(477,032		)	299,885
Comprehensive income attributable to noncontrolling interests	—			—		(13,364		)	—			(13,364		)
Comprehensive income attributable to AMC Networks’ stockholders	$	288,443		$	420,522	$	54,588		$	(477,032	)	$	286,521



Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2016
(In thousands)	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)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) gain 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 Cash Flows Statements



Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	258,037		$	322,282		$	15,279		$	(429,621	)	$	165,977
Cash flows from investing activities:
Capital expenditures	—			(27,480		)	(12,456		)	—			(39,936		)
Investment in and loans to investees	—			—			(43,000		)	—			(43,000		)
Increase to investment in affiliates	102,285			(127,727		)	40,148			(14,706		)	—
Net cash provided by (used in) investing activities	102,285			(155,207		)	(15,308		)	(14,706		)	(82,936		)
Cash flows from financing activities:
Principal payments on long-term debt	(111,000		)	—			35			—			(110,965		)
Deemed repurchases of restricted stock units	(13,373		)	—			—			—			(13,373		)
Purchase of treasury stock	(244,374		)	—			—			—			(244,374		)
Principal payments on capital lease obligations	—			(1,330		)	(1,196		)	—			(2,526		)
Distributions to noncontrolling interests	—			—			(12,930		)	—			(12,930		)
Net cash used in financing activities	(368,747		)	(1,330		)	(14,091		)	—			(384,168		)
Net increase (decrease) in cash and cash equivalents from operations	(8,425		)	165,745			(14,120		)	(444,327		)	(301,127		)
Effect of exchange rate changes on cash and cash equivalents	7,976			(444,327		)	1,241			444,327			9,217
Cash and cash equivalents at beginning of period	565			320,950			159,874			—			481,389
Cash and cash equivalents at end of period	$	116		$	42,368		$	146,995		$	—		$	189,479



Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2016
(In thousands)	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 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