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 19, "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
September 30, 2018
(In thousands)	Parent Company		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	25,127	$	360,124	$	179,466	$	—		$	564,717
Accounts receivable, trade (including amounts due from related parties, net, less allowance for doubtful accounts)	—		544,083		233,867		—			777,950
Current portion of program rights, net	—		308,039		162,215		—			470,254
Prepaid expenses, other current assets and intercompany receivable	2,174		184,253		20,335		(88,193		)	118,569
Total current assets	27,301		1,396,499		595,883		(88,193		)	1,931,490
Property and equipment, net of accumulated depreciation	—		158,651		66,817		—			225,468
Investment in affiliates	3,590,449		1,584,454		—		(5,174,903		)	—
Program rights, net	—		980,299		172,152		—			1,152,451
Long-term intercompany notes receivable	—		45,986		303		(46,289		)	—
Deferred carriage fees, net	—		19,331		860		—			20,191
Intangible assets, net	—		163,886		305,871		—			469,757
Goodwill	—		65,626		639,756		—			705,382
Deferred tax asset, net	—		—		21,677		—			21,677
Other assets	—		167,548		467,993		—			635,541
Total assets	$	3,617,750	$	4,582,280	$	2,271,312	$	(5,309,385	)	$	5,161,957
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	6	$	33,716	$	63,786	$	—		$	97,508
Accrued liabilities and intercompany payable	56,373		153,174		119,538		(88,193		)	240,892
Current portion of program rights obligations	—		291,059		65,098		—			356,157
Deferred revenue	—		32,734		28,555		—			61,289
Current portion of long-term debt	9,375		—		—		—			9,375
Current portion of capital lease obligations	—		2,749		1,900		—			4,649
Total current liabilities	65,754		513,432		278,877		(88,193		)	769,870
Program rights obligations	—		385,640		11,952		—			397,592
Long-term debt, net	3,095,628		—		—		—			3,095,628
Capital lease obligations	—		1,751		20,671		—			22,422
Deferred tax liability, net	142,041		—		12,069		—			154,110
Other liabilities and intercompany notes payable	51,321		91,008		82,120		(46,289		)	178,160
Total liabilities	3,354,744		991,831		405,689		(134,482		)	4,617,782
Commitments and contingencies
Redeemable noncontrolling interests	—		—		252,536		—			252,536
Stockholders' equity:
AMC Networks stockholders' equity	263,006		3,590,449		1,584,454		(5,174,903		)	263,006
Non-redeemable noncontrolling interests	—		—		28,633		—			28,633
Total stockholders' equity	263,006		3,590,449		1,613,087		(5,174,903		)	291,639
Total liabilities and stockholders' equity	$	3,617,750	$	4,582,280	$	2,271,312	$	(5,309,385	)	$	5,161,957



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 September 30, 2018
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	485,737		$	214,150		$	(3,012	)	$	696,875
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			216,253			130,901			(756		)	346,398
Selling, general and administrative	—			106,068			52,431			(2,257		)	156,242
Depreciation and amortization	—			11,297			10,714			—			22,011
Impairment charges	—			—			4,486			—			4,486
Restructuring expense	—			2,275			864			—			3,139
Total operating expenses	—			335,893			199,396			(3,013		)	532,276
Operating income	—			149,844			14,754			1			164,599
Other income (expense):
Interest expense, net	(38,316		)	2,178			3,103			—			(33,035		)
Share of affiliates’ income (loss)	187,659			37,704			—			(225,363		)	—
Miscellaneous, net	(101		)	213			28,651			(1		)	28,762
Total other income (expense)	149,242			40,095			31,754			(225,364		)	(4,273		)
Income from operations before income taxes	149,242			189,939			46,508			(225,363		)	160,326
Income tax expense	(37,985		)	(2,280		)	(3,401		)	—			(43,666		)
Net income including noncontrolling interests	111,257			187,659			43,107			(225,363		)	116,660
Net income attributable to noncontrolling interests	—			—			(5,403		)	—			(5,403		)
Net income attributable to AMC Networks’ stockholders	$	111,257		$	187,659		$	37,704		$	(225,363	)	$	111,257



Condensed Consolidating Statement of Income
Three Months Ended September 30, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	494,563		$	157,346		$	(3,886	)	$	648,023
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			232,432			91,142			(831		)	322,743
Selling, general and administrative	—			99,481			42,352			(3,145		)	138,688
Depreciation and amortization	—			10,072			10,866			—			20,938
Impairment and related charges	—			—			11,036			—			11,036
Restructuring (credit) expense	—			(10		)	1,274			—			1,264
Total operating expenses	—			341,975			156,670			(3,976		)	494,669
Operating income	—			152,588			676			90			153,354
Other income (expense):
Interest expense, net	(34,403		)	10,543			(7,950		)	—			(31,810		)
Share of affiliates’ income	171,490			10,784			—			(182,274		)	—
Loss on extinguishment of debt	(3,004		)	—			—			—			(3,004		)
Miscellaneous, net	(1,076		)	(244		)	13,830			(90		)	12,420
Total other income (expense)	133,007			21,083			5,880			(182,364		)	(22,394		)
Income from operations before income taxes	133,007			173,671			6,556			(182,274		)	130,960
Income tax (expense) benefit	(46,005		)	(2,181		)	8,062			—			(40,124		)
Net income including noncontrolling interests	87,002			171,490			14,618			(182,274		)	90,836
Net income attributable to noncontrolling interests	—			—			(3,834		)	—			(3,834		)
Net income attributable to AMC Networks’ stockholders	$	87,002		$	171,490		$	10,784		$	(182,274	)	$	87,002



Condensed Consolidating Statement of Income
Nine Months Ended September 30, 2018
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	1,609,916		$	600,542		$	(11,375	)	$	2,199,083
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			687,055			359,165			(2,648		)	1,043,572
Selling, general and administrative	—			348,590			154,206			(8,729		)	494,067
Depreciation and amortization	—			33,276			30,758			—			64,034
Impairment charges	—			—			4,486			—			4,486
Restructuring expense	—			2,275			864			—			3,139
Total operating expenses	—			1,071,196			549,479			(11,377		)	1,609,298
Operating income	—			538,720			51,063			2			589,785
Other income (expense):
Interest expense, net	(113,057		)	25,790			(12,887		)	—			(100,154		)
Share of affiliates' income	607,374			51,010			—			(658,384		)	—
Miscellaneous, net	(48		)	(1,557		)	32,596			(2		)	30,989
Total other income (expense)	494,269			75,243			19,709			(658,386		)	(69,165		)
Income from operations before income taxes	494,269			613,963			70,772			(658,384		)	520,620
Income tax expense	(119,961		)	(6,589		)	(6,542		)	—			(133,092		)
Net income including noncontrolling interests	374,308			607,374			64,230			(658,384		)	387,528
Net income attributable to noncontrolling interests	—			—			(13,220		)	—			(13,220		)
Net income attributable to Parent Company's stockholders	$	374,308		$	607,374		$	51,010		$	(658,384	)	$	374,308



Condensed Consolidating Statement of Income
Nine Months Ended September 30, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	—		$	1,610,247		$	480,153		$	(11,643	)	$	2,078,757
Operating expenses:
Technical and operating (excluding depreciation and amortization)	—			694,336			264,231			(2,367		)	956,200
Selling, general and administrative	—			335,585			138,669			(9,584		)	464,670
Depreciation and amortization	—			30,399			34,638			—			65,037
Impairment and related charges	—			—			28,148			—			28,148
Restructuring expense	—			2,649			1,238			—			3,887
Total operating expenses	—			1,062,969			466,924			(11,951		)	1,517,942
Operating income	—			547,278			13,229			308			560,815
Other income (expense):
Interest expense, net	(93,548		)	30,531			(22,751		)	—			(85,768		)
Share of affiliates’ income	592,012			19,610			—			(611,622		)	—
Loss on extinguishment of debt	(3,004		)	—			—			—			(3,004		)
Miscellaneous, net	(1,419		)	2,085			42,090			(308		)	42,448
Total other income (expense)	494,041			52,226			19,339			(611,930		)	(46,324		)
Income from operations before income taxes	494,041			599,504			32,568			(611,622		)	514,491
Income tax (expense) benefit	(168,225		)	(7,492		)	2,318			—			(173,399		)
Net income including noncontrolling interests	325,816			592,012			34,886			(611,622		)	341,092
Net income attributable to noncontrolling interests	—			—			(15,276		)	—			(15,276		)
Net income attributable to AMC Networks’ stockholders	$	325,816		$	592,012		$	19,610		$	(611,622	)	$	325,816



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended September 30, 2018
(In thousands)	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	111,257		$	187,659	$	43,107		$	(225,363	)	$	116,660
Other comprehensive income (loss):
Foreign currency translation adjustment	(6,094		)	—		(6,094		)	6,094			(6,094		)
Other comprehensive income, net of income taxes	(6,094		)	—		(6,094		)	6,094			(6,094		)
Comprehensive income	105,163			187,659		37,013			(219,269		)	110,566
Comprehensive income attributable to noncontrolling interests	—			—		(5,218		)	—			(5,218		)
Comprehensive income attributable to AMC Networks’ stockholders	$	105,163		$	187,659	$	31,795		$	(219,269	)	$	105,348



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended September 30, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	87,002		$	171,490	$	14,618		$	(182,274	)	$	90,836
Other comprehensive income (loss):
Foreign currency translation adjustment	15,791			—		15,791			(15,791		)	15,791
Unrealized loss on interest rate swaps	(174		)	—		—			—			(174		)
Unrealized gain on available for sale securities	6,596			—		—			—			6,596
Other comprehensive income, before income taxes	22,213			—		15,791			(15,791		)	22,213
Income tax expense	(2,363		)	—		—			—			(2,363		)
Other comprehensive income, net of income taxes	19,850			—		15,791			(15,791		)	19,850
Comprehensive income	106,852			171,490		30,409			(198,065		)	110,686
Comprehensive income attributable to noncontrolling interests	—			—		(4,633		)	—			(4,633		)
Comprehensive income attributable to AMC Networks’ stockholders	$	106,852		$	171,490	$	25,776		$	(198,065	)	$	106,053



Condensed Consolidating Statement of Comprehensive Income
Nine Months Ended September 30, 2018
(In thousands)	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	374,308		$	607,374	$	64,230		$	(658,384	)	$	387,528
Other comprehensive income (loss):
Foreign currency translation adjustment	(32,679		)	—		(32,679		)	32,679			(32,679		)
Other comprehensive income, net of income taxes	(32,679		)	—		(32,679		)	32,679			(32,679		)
Comprehensive income	341,629			607,374		31,551			(625,705		)	354,849
Comprehensive income attributable to noncontrolling interests	—			—		(11,954		)	—			(11,954		)
Comprehensive income attributable to AMC Networks' stockholders	$	341,629		$	607,374	$	19,597		$	(625,705	)	$	342,895



Condensed Consolidating Statement of Comprehensive Income
Nine Months Ended September 30, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income including noncontrolling interest	$	325,816		$	592,012	$	34,886		$	(611,622	)	$	341,092
Other comprehensive income (loss):
Foreign currency translation adjustment	63,475			—		63,475			(63,475		)	63,475
Unrealized loss on interest rate swaps	(35		)	—		—			—			(35		)
Unrealized gain on available for sale securities	9,534			—		—			—			9,534
Other comprehensive income, before income taxes	72,974			—		63,475			(63,475		)	72,974
Income tax expense	(3,495		)	—		—			—			(3,495		)
Other comprehensive income, net of income taxes	69,479			—		63,475			(63,475		)	69,479
Comprehensive income	395,295			592,012		98,361			(675,097		)	410,571
Comprehensive income attributable to noncontrolling interests	—			—		(17,997		)	—			(17,997		)
Comprehensive income attributable to AMC Networks’ stockholders	$	395,295		$	592,012	$	80,364		$	(675,097	)	$	392,574



Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 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	$	426,876		$	1,180,996		$	(477,659	)	$	(658,401	)	$	471,812
Cash flows from investing activities:
Capital expenditures	—			(51,695		)	(9,079		)	—			(60,774		)
Return of capital from investees	—			—			523			—			523
Investment in and loans to investees	—			—			(90,080		)	—			(90,080		)
Payments for acquisition of a business, net of cash acquired	—			(675		)	(34,879		)	—			(35,554		)
Increase (decrease) to investment in affiliates	(129,968		)	(1,798,987		)	1,040,871			888,084			—
Net cash (used in) provided by investing activities	(129,968		)	(1,851,357		)	907,356			888,084			(185,885		)
Cash flows from financing activities:
Deemed repurchases of restricted stock units	(15,734		)	—			—			—			(15,734		)
Purchase of treasury stock	(267,400		)	—			—			—			(267,400		)
Proceeds from stock option exercises	4,317			—			—			—			4,317
Principal payments on capital lease obligations	—			(2,223		)	(1,655		)	—			(3,878		)
Distributions to noncontrolling interests	—			—			(9,333		)	—			(9,333		)
Net cash used in financing activities	(278,817		)	(2,223		)	(10,988		)	—			(292,028		)
Net increase (decrease) in cash and cash equivalents from operations	18,091			(672,584		)	418,709			229,683			(6,101		)
Effect of exchange rate changes on cash and cash equivalents	6,716			641,460			(406,458		)	(229,683		)	12,035
Cash and cash equivalents at beginning of period	320			391,248			167,215			—			558,783
Cash and cash equivalents at end of period	$	25,127		$	360,124		$	179,466		$	—		$	564,717



Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2017
(In thousands)	Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by operating activities	$	374,873		$	498,874		$	11,714		$	(611,888	)	$	273,573
Cash flows from investing activities:
Capital expenditures	—			(47,811		)	(13,983		)	—			(61,794		)
Investment in and loans to investees	—			—			(43,000		)	—			(43,000		)
Increase (decrease) to investment in affiliates	(289,891		)	(394,117		)	254,014			429,994			—
Net cash (used in) provided by investing activities	(289,891		)	(441,928		)	197,031			429,994			(104,794		)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt	1,536,000			—			—			—			1,536,000
Principal payments on long-term debt	(1,257,965		)	—			—			—			(1,257,965		)
Payments for financing costs	(10,405		)	—			—			—			(10,405		)
Deemed repurchases of restricted stock units	(13,373		)	—			—			—			(13,373		)
Purchase of treasury stock	(347,334		)	—			—			—			(347,334		)
Principal payments on capital lease obligations	—			(2,019		)	(1,409		)	—			(3,428		)
Distributions to noncontrolling interests	—			—			(16,110		)	—			(16,110		)
Net cash used in financing activities	(93,077		)	(2,019		)	(17,519		)	—			(112,615		)
Net increase (decrease) in cash and cash equivalents from operations	(8,095		)	54,927			191,226			(181,894		)	56,164
Effect of exchange rate changes on cash and cash equivalents	7,798			26,885			(201,841		)	181,894			14,736
Cash and cash equivalents at beginning of period	565			320,950			159,874			—			481,389
Cash and cash equivalents at end of period	$	268		$	402,762		$	149,259		$	—		$	552,289