Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



Condensed Consolidating Balance Sheet
March 31, 2018
(In thousands)	Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	184	$	354,419	$	174,597		$	—		$	529,200
Accounts receivable, trade (including amounts due from related parties, net, less allowance for doubtful accounts)	—		588,633		204,642			—			793,275
Current portion of program rights, net	—		315,628		149,293			—			464,921
Prepaid expenses, other current assets and intercompany receivable	1,419		212,382		10,592			(122,335		)	102,058
Total current assets	1,603		1,471,062		539,124			(122,335		)	1,889,454
Property and equipment, net of accumulated depreciation	—		138,866		46,574			—			185,440
Investment in affiliates	3,616,931		1,013,078		—			(4,630,009		)	—
Program rights, net	—		1,092,691		186,898			—			1,279,589
Long-term intercompany notes receivable	—		490,380		343			(490,723		)	—
Deferred carriage fees, net	—		26,008		1,164			—			27,172
Intangible assets, net	—		168,117		284,278			—			452,395
Goodwill	—		66,282		641,372			—			707,654
Deferred tax asset, net	—		—		21,731			—			21,731
Other assets	—		173,988		375,944			—			549,932
Total assets	$	3,618,534	$	4,640,472	$	2,097,428		$	(5,243,067	)	$	5,113,367
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	32	$	47,245	$	49,539		$	—		$	96,816
Accrued liabilities and intercompany payable	86,500		121,433		149,703			(122,335		)	235,301
Current portion of program rights obligations	—		255,744		71,118			—			326,862
Deferred revenue	—		34,738		17,178			—			51,916
Current portion of capital lease obligations	—		3,001		1,770			—			4,771
Total current liabilities	86,532		462,161		289,308			(122,335		)	715,666
Program rights obligations	—		470,626		20,901			—			491,527
Long-term debt, net	3,101,138		—		—			—			3,101,138
Capital lease obligations	—		2,963		22,270			—			25,233
Deferred tax liability, net	150,247		—		(5,088		)	—			145,159
Other liabilities and intercompany notes payable	49,873		87,791		506,226			(490,723		)	153,167
Total liabilities	3,387,790		1,023,541		833,617			(613,058		)	4,631,890
Commitments and contingencies
Redeemable noncontrolling interests	—		—		220,366			—			220,366
Stockholders' equity:
AMC Networks stockholders' equity	230,744		3,616,931		1,013,078			(4,630,009		)	230,744
Non-redeemable noncontrolling interests	—		—		30,367			—			30,367
Total stockholders' equity	230,744		3,616,931		1,043,445			(4,630,009		)	261,111
Total liabilities and stockholders' equity	$	3,618,534	$	4,640,472	$	2,097,428		$	(5,243,067	)	$	5,113,367



Condensed Consolidating Balance Sheet
December 31, 2017
(In thousands)	Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	320	$	391,248	$	167,215		$	—		$	558,783
Accounts receivable, trade (including amounts due from related parties, net, less allowance for doubtful accounts)	—		581,270		194,621			—			775,891
Current portion of program rights, net	—		304,149		149,301			—			453,450
Prepaid expenses, other current assets and intercompany receivable	3,760		183,815		8,540			(104,389		)	91,726
Total current assets	4,080		1,460,482		519,677			(104,389		)	1,879,850
Property and equipment, net of accumulated depreciation	—		136,032		47,482			—			183,514
Investment in affiliates	3,443,013		934,612		—			(4,377,625		)	—
Program rights, net	—		1,128,021		191,258			—			1,319,279
Long-term intercompany notes receivable	—		489,939		436			(490,375		)	—
Deferred carriage fees, net	—		29,346		578			—			29,924
Intangible assets, net	—		170,554		286,688			—			457,242
Goodwill	—		66,609		628,549			—			695,158
Deferred tax asset, net	—		—		20,081			—			20,081
Other assets	—		142,115		305,822						447,937
Total assets	$	3,447,093	$	4,557,710	$	2,000,571		$	(4,972,389	)	$	5,032,985
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	350	$	50,282	$	51,565		$	—		$	102,197
Accrued liabilities and intercompany payable	51,692		179,003		136,770			(104,389		)	263,076
Current portion of program rights obligations	—		262,004		65,545			—			327,549
Deferred revenue	—		27,530		18,903			—			46,433
Current portion of long-term debt	—		—		—			—			—
Current portion of capital lease obligations	—		2,939		1,908			—			4,847
Total current liabilities	52,042		521,758		274,691			(104,389		)	744,102
Program rights obligations	—		511,996		22,984			—			534,980
Long-term debt, net	3,099,257		—		—			—			3,099,257
Capital lease obligations	—		3,745		22,532			—			26,277
Deferred tax liability, net	114,717		—		(5,019		)	—			109,698
Other liabilities and intercompany notes payable	46,133		77,198		503,166			(490,375		)	136,122
Total liabilities	3,312,149		1,114,697		818,354			(594,764		)	4,650,436
Commitments and contingencies
Redeemable noncontrolling interests	—		—		218,604			—			218,604
Stockholders' equity:
AMC Networks stockholders' equity	134,944		3,443,013		934,612			(4,377,625		)	134,944
Non-redeemable noncontrolling interests	—		—		29,001			—			29,001
Total stockholders' equity	134,944		3,443,013		963,613			(4,377,625		)	163,945
Total liabilities and stockholders' equity	$	3,447,093	$	4,557,710	$	2,000,571		$	(4,972,389	)	$	5,032,985

Condensed Income Statement



Condensed Consolidating Statement of Income
Three Months Ended March 31, 2018
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	574,917		$	170,386		$	(4,480	)	$	740,823
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			222,621			98,522			(778		)	320,365
Selling, general and administrative	—			122,059			48,089			(3,699		)	166,449
Depreciation and amortization	—			10,804			9,550			—			20,354
Total operating expenses	—			355,484			156,161			(4,477		)	507,168
Operating income	—			219,433			14,225			(3		)	233,655
Other income (expense):
Interest expense, net	(36,907		)	11,897			(8,176		)	—			(33,186		)
Share of affiliates' income	247,482			17,498			—			(264,980		)	—
Miscellaneous, net	(206		)	734			16,415			3			16,946
Total other income (expense)	210,369			30,129			8,239			(264,977		)	(16,240		)
Income from operations before income taxes	210,369			249,562			22,464			(264,980		)	217,415
Income tax expense	(53,499		)	(2,080		)	(1,300		)	—			(56,879		)
Net income including noncontrolling interests	156,870			247,482			21,164			(264,980		)	160,536
Net income attributable to noncontrolling interests	—			—			(3,666		)	—			(3,666		)
Net income attributable to Parent Company's stockholders	$	156,870		$	247,482		$	17,498		$	(264,980	)	$	156,870



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 Parent Company's stockholders	$	136,217		$	235,774		$	3,145		$	(238,919	)	$	136,217

Condensed Statement of Comprehensive Income



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended March 31, 2018
(In thousands)	Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	156,870	$	247,482	$	21,164		$	(264,980	)	$	160,536
Other comprehensive income (loss):
Foreign currency translation adjustment	18,805		—		18,805			(18,805		)	18,805
Other comprehensive income, net of income taxes	18,805		—		18,805			(18,805		)	18,805
Comprehensive income	175,675		247,482		39,969			(283,785		)	179,341
Comprehensive income attributable to noncontrolling interests	—		—		(4,563		)	—			(4,563		)
Comprehensive income attributable to Parent Company's stockholders	$	175,675	$	247,482	$	35,406		$	(283,785	)	$	174,778



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 Parent Company's stockholders	$	148,824		$	235,774	$	12,618		$	(248,783	)	$	148,433

Condensed Cash Flow Statement



Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2018
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	234,947		$	154,495		$	(7,472	)	$	(264,998	)	$	116,972
Cash flows from investing activities:
Capital expenditures	—			(11,040		)	(902		)	—			(11,942		)
Return of capital from investees	—			—			172			—			172
Investment in investees	—			—			(42,318		)	—			(42,318		)
Increase to investment in affiliates	(141,109		)	(129,821		)	67,191			203,739			—
Net cash (used in) provided by investing activities	(141,109		)	(140,861		)	24,143			203,739			(54,088		)
Cash flows from financing activities:
Deemed repurchases of restricted stock units	(15,354		)	—			—			—			(15,354		)
Purchase of treasury stock	(83,637		)	—			—			—			(83,637		)
Principal payments on capital lease obligations	—			(723		)	(683		)	—			(1,406		)
Distributions to noncontrolling interests	—			—			(1,435		)	—			(1,435		)
Net cash used in financing activities	(98,991		)	(723		)	(2,118		)	—			(101,832		)
Net (decrease) increase in cash and cash equivalents from operations	(5,153		)	12,911			14,553			(61,259		)	(38,948		)
Effect of exchange rate changes on cash and cash equivalents	5,017			(49,740		)	(7,171		)	61,259			9,365
Cash and cash equivalents at beginning of period	320			391,248			167,215			—			558,783
Cash and cash equivalents at end of period	$	184		$	354,419		$	174,597		$	—		$	529,200



Condensed Consolidated 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