Condensed Consolidating Financial Statements

Debt of AMC Networks includes $600 million of 4.75% senior notes due December 2022, $1 billion of 5.00% senior notes due April 2024 and $800 million of 4.75% senior notes due August 2025. All outstanding senior notes issued by AMC Networks (for purposes of this Note 18, "Parent Company") are guaranteed on a senior unsecured basis by certain of its existing and future domestic restricted subsidiaries (the "Guarantor Subsidiaries"). All Guarantor Subsidiaries are owned 100% by AMC Networks. The outstanding notes are fully and unconditionally guaranteed by the Guarantor Subsidiaries on a joint and several basis.

Set forth below are condensed consolidating financial statements presenting the financial position, results of operations, comprehensive income, and cash flows of (i) the Parent Company, (ii) the Guarantor Subsidiaries on a combined basis (as such guarantees are joint and several), (iii) the direct and indirect non-guarantor subsidiaries of the Parent Company (the "Non-Guarantor Subsidiaries") on a combined basis and (iv) reclassifications and eliminations necessary to arrive at the information for the Company on a consolidated basis.

Basis of Presentation

In presenting the condensed consolidating financial statements, the equity method of accounting has been applied to (i) the Parent Company's interests in the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, and (ii) the Guarantor Subsidiaries' interests in the Non-Guarantor Subsidiaries, even though all such subsidiaries meet the requirements to be consolidated under GAAP. All intercompany balances and transactions between the Parent Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries have been eliminated, as shown in the column "Eliminations."

The accounting basis in all subsidiaries, including goodwill and identified intangible assets, have been allocated to the applicable subsidiaries.



Condensed Consolidating Balance Sheet
June 30, 2018
(In thousands)	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	2,885		$	243,413	$	169,826	$	—		$	416,124
Accounts receivable, trade (including amounts due from related parties, net, less allowance for doubtful accounts)	—			596,408		222,322		—			818,730
Current portion of program rights, net	—			308,628		154,238		—			462,866
Prepaid expenses, other current assets and intercompany receivable	3,075			207,653		19,028		(119,319		)	110,437
Total current assets	5,960			1,356,102		565,414		(119,319		)	1,808,157
Property and equipment, net of accumulated depreciation	—			148,673		65,381		—			214,054
Investment in affiliates	3,496,168			1,493,775		—		(4,989,943		)	—
Program rights, net	—			1,032,302		186,380		—			1,218,682
Long-term intercompany notes receivable	—			46,497		421		(46,918		)	—
Deferred carriage fees, net	—			22,669		1,002		—			23,671
Intangible assets, net	—			165,681		313,482		—			479,163
Goodwill	—			65,954		644,093		—			710,047
Deferred tax asset, net	—			—		27,547		—			27,547
Other assets	—			171,874		420,172					592,046
Total assets	$	3,502,128		$	4,503,527	$	2,223,892	$	(5,156,180	)	$	5,073,367
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	(19	)	$	41,371	$	63,663	$	—		$	105,015
Accrued liabilities and intercompany payable	49,660			140,118		146,022		(119,319		)	216,481
Current portion of program rights obligations	—			276,571		70,505		—			347,076
Deferred revenue	—			29,632		32,559		—			62,191
Current portion of capital lease obligations	—			2,937		1,693		—			4,630
Total current liabilities	49,641			490,629		314,442		(119,319		)	735,393
Program rights obligations	—			428,322		14,343		—			442,665
Long-term debt, net	3,103,056			—		—		—			3,103,056
Capital lease obligations	—			2,298		21,441		—			23,739
Deferred tax liability, net	132,090			—		17,509		—			149,599
Other liabilities and intercompany notes payable	51,442			86,110		83,122		(46,918		)	173,756
Total liabilities	3,336,229			1,007,359		450,857		(166,237		)	4,628,208
Commitments and contingencies
Redeemable noncontrolling interests	—			—		249,739		—			249,739
Stockholders' equity:
AMC Networks stockholders' equity	165,899			3,496,168		1,493,775		(4,989,943		)	165,899
Non-redeemable noncontrolling interests	—			—		29,521		—			29,521
Total stockholders' equity	165,899			3,496,168		1,523,296		(4,989,943		)	195,420
Total liabilities and stockholders' equity	$	3,502,128		$	4,503,527	$	2,223,892	$	(5,156,180	)	$	5,073,367



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 Consolidating Statement of Income
Three Months Ended June 30, 2018
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	549,262		$	216,006		$	(3,883	)	$	761,385
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			248,181			129,742			(1,114		)	376,809
Selling, general and administrative	—			120,463			53,686			(2,773		)	171,376
Depreciation and amortization	—			11,175			10,494			—			21,669
Total operating expenses	—			379,819			193,922			(3,887		)	569,854
Operating income	—			169,443			22,084			4			191,531
Other income (expense):
Interest expense, net	(37,834		)	11,715			(7,814		)	—			(33,933		)
Share of affiliates’ income (loss)	172,233			(4,192		)	—			(168,041		)	—
Miscellaneous, net	259			(2,504		)	(12,470		)	(4		)	(14,719		)
Total other income (expense)	134,658			5,019			(20,284		)	(168,045		)	(48,652		)
Income from operations before income taxes	134,658			174,462			1,800			(168,041		)	142,879
Income tax expense	(28,477		)	(2,229		)	(1,841		)	—			(32,547		)
Net income including noncontrolling interests	106,181			172,233			(41		)	(168,041		)	110,332
Net income attributable to noncontrolling interests	—			—			(4,151		)	—			(4,151		)
Net income attributable to AMC Networks’ stockholders	$	106,181		$	172,233		$	(4,192	)	$	(168,041	)	$	106,181



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
Six Months Ended June 30, 2018
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	1,124,179		$	386,392		$	(8,363	)	$	1,502,208
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			470,802			228,264			(1,892		)	697,174
Selling, general and administrative	—			242,522			101,775			(6,472		)	337,825
Depreciation and amortization	—			21,979			20,044			—			42,023
Total operating expenses	—			735,303			350,083			(8,364		)	1,077,022
Operating income	—			388,876			36,309			1			425,186
Other income (expense):
Interest expense, net	(74,741		)	23,612			(15,990		)	—			(67,119		)
Share of affiliates' income	419,715			13,306			—			(433,021		)	—
Miscellaneous, net	53			(1,770		)	3,945			(1		)	2,227
Total other income (expense)	345,027			35,148			(12,045		)	(433,022		)	(64,892		)
Income from operations before income taxes	345,027			424,024			24,264			(433,021		)	360,294
Income tax expense	(81,976		)	(4,309		)	(3,141		)	—			(89,426		)
Net income including noncontrolling interests	263,051			419,715			21,123			(433,021		)	270,868
Net income attributable to noncontrolling interests	—			—			(7,817		)	—			(7,817		)
Net income attributable to Parent Company's stockholders	$	263,051		$	419,715		$	13,306		$	(433,021	)	$	263,051



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 and related charges	—			—			17,112			—			17,112
Restructuring expense (credit)	—			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 Comprehensive Income
Three Months Ended June 30, 2018
(In thousands)	Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss) including noncontrolling interest	$	106,181	$	172,233	$	(41	)	$	(168,041	)	$	110,332
Other comprehensive income (loss):
Foreign currency translation adjustment	7,780		—		7,780			(7,780		)	7,780
Other comprehensive income, net of income taxes	7,780		—		7,780			(7,780		)	7,780
Comprehensive income	113,961		172,233		7,739			(175,821		)	118,112
Comprehensive income attributable to noncontrolling interests	—		—		(2,173		)	—			(2,173		)
Comprehensive income attributable to AMC Networks’ stockholders	$	113,961	$	172,233	$	5,566		$	(175,821	)	$	115,939



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended June 30, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	102,598		$	184,748	$	10,709		$	(190,429	)	$	107,626
Other comprehensive income (loss):
Foreign currency translation adjustment	37,820			—		37,820			(37,820		)	37,820
Unrealized loss on interest rate swaps	(180		)	—		—			—			(180		)
Unrealized (loss) gain on available for sale securities	(1,083		)	—		—			—			(1,083		)
Other comprehensive income, before income taxes	36,557			—		37,820			(37,820		)	36,557
Income tax benefit	465			—		—			—			465
Other comprehensive income, net of income taxes	37,022			—		37,820			(37,820		)	37,022
Comprehensive income	139,620			184,748		48,529			(228,249		)	144,648
Comprehensive income attributable to noncontrolling interests	—			—		(6,559		)	—			(6,559		)
Comprehensive income attributable to AMC Networks’ stockholders	$	139,620		$	184,748	$	41,970		$	(228,249	)	$	138,089



Condensed Consolidating Statement of Comprehensive Income
Six Months Ended June 30, 2018
(In thousands)	Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	263,051	$	419,715	$	21,123		$	(433,021	)	$	270,868
Other comprehensive income (loss):
Foreign currency translation adjustment	26,585		—		26,585			(26,585		)	26,585
Other comprehensive income, net of income taxes	26,585		—		26,585			(26,585		)	26,585
Comprehensive income	289,636		419,715		47,708			(459,606		)	297,453
Comprehensive income attributable to noncontrolling interests	—		—		(6,736		)	—			(6,736		)
Comprehensive income attributable to AMC Networks' stockholders	$	289,636	$	419,715	$	40,972		$	(459,606	)	$	290,717



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 gain on interest rate swaps	139			—		—			—			139
Unrealized 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 Cash Flows
Six Months Ended June 30, 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	$	296,928		$	852,314		$	(437,627	)	$	(433,038	)	$	278,577
Cash flows from investing activities:
Capital expenditures	—			(32,827		)	(4,575		)	—			(37,402		)
Return of capital from investees	—			—			347			—			347
Investment in investees	—			—			(87,488		)	—			(87,488		)
Payments for acquisition of a business, net of cash acquired	—			—			(34,879		)	—			(34,879		)
Increase to investment in affiliates	(46,945		)	(1,550,189		)	896,005			701,129			—
Net cash (used in) provided by investing activities	(46,945		)	(1,583,016		)	769,410			701,129			(159,422		)
Cash flows from financing activities:
Deemed repurchases of restricted stock units	(15,734		)	—			—			—			(15,734		)
Purchase of treasury stock	(242,409		)	—			—			—			(242,409		)
Proceeds from stock option exercises	4,317			—			—			—			4,317
Principal payments on capital lease obligations	—			(1,464		)	(1,161		)	—			(2,625		)
Distributions to noncontrolling interests	—			—			(6,967		)	—			(6,967		)
Net cash used in financing activities	(253,826		)	(1,464		)	(8,128		)	—			(263,418		)
Net (decrease) increase in cash and cash equivalents from operations	(3,843		)	(732,166		)	323,655			268,091			(144,263		)
Effect of exchange rate changes on cash and cash equivalents	6,408			584,331			(321,044		)	(268,091		)	1,604
Cash and cash equivalents at beginning of period	320			391,248			167,215			—			558,783
Cash and cash equivalents at end of period	$	2,885		$	243,413		$	169,826		$	—		$	416,124



Condensed Consolidated 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 (decrease) 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 (decrease) increase 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