Restructuring and Other Related Charges

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and other related charges of $40.9 million for the year ended December 31, 2019 related to the management restructuring, which commenced in the third quarter of 2019, and the AMC Networks SVOD organization restructuring, which commenced in the second quarter of 2019. In connection with each of these restructuring initiatives, a number of roles were eliminated to address redundancy at the management level and improve the effectiveness of management while reducing the cost structure of the Company.

In connection with restructuring initiative related to the management team, the Company incurred restructuring charges for severance and other personnel related costs of $26.0 million, of which $13.5 million was attributable to the National

Networks segment and $12.5 million was attributable to the International and Other segment. The Company expects additional restructuring charges in the first quarter of 2020.

In connection with the AMC Networks SVOD restructuring, management made certain organization changes within the owned subscription streaming services businesses. The restructuring combined the owned subscription streaming services under one management team. As a result, the Company incurred restructuring charges of $1.9 million related to severance and other personnel related costs.

In connection with the organization changes in the AMC Networks SVOD business, the Company implemented changes to its strategy for owned subscription streaming services, including programming that will no longer be made available. As a result, the Company incurred other charges of $13.0 million related to the write-off of programming associated with the reorganization and change in strategy.

During the third quarter of 2018, management commenced a restructuring initiative designed to reduce the cost structure of the Company. The restructuring was intended to improve the organizational design of the Company through the elimination of certain roles, a reduction in the grade of certain roles, an increase in the span of responsibilities of certain senior managers, and the re-alignment of certain senior leaders to new or additional responsibilities. This restructuring resulted in a $36.0 million charge for the year ended December 31, 2018 primarily related to severance.

During the fourth quarter of 2018, AMCNI completed a portfolio rationalization review that resulted in the termination of distribution in certain territories, resulting in a $9.9 million charge.

During 2017, the Company incurred restructuring expense related to corporate headquarters severance costs and charges incurred at AMCNI related to costs associated with the termination of distribution in certain territories.

The following table summarizes the restructuring and other related charges recognized by operating segment:


	Years Ended December 31,
(In thousands)	2019		2018		2017
National Networks	$	13,453	$	17,160	$	(53)
International and Other	28,084		35,189		6,181
Inter-segment Eliminations	(623)		(6,502)		—
Total restructuring and other related charges	$	40,914	$	45,847	$	6,128

The following table summarizes the restructuring and other related charges recognized for the three years:


	Years Ended December 31,
(In thousands)	2019		2018		2017
Restructuring charges	$	27,897	$	45,847	$	6,128
Other related charges	13,017		—		—
Total restructuring and other related charges	$	40,914	$	45,847	$	6,128

The following table summarizes the accrued restructuring and other related costs:


(In thousands)	Severance and Employee-Related Costs		Other Exit Costs		Total
Balance at December 31, 2017	$	1,212	$	24	$	1,236
Charges	35,965		9,882		45,847
Other	(137)		(745)		(882)
Cash payments	(3,257)		(297)		(3,554)
Non-cash adjustments	—		(7,440)		(7,440)
Currency translation	(9)		(9)		(18)
Balance at December 31, 2018	33,774		1,415		35,189
Charges	26,132		1,765		27,897
Other	(612)		(1,480)		(2,092)
Cash payments	(31,897)		(414)		(32,311)
Non-cash adjustments	—		(1,081)		(1,081)
Currency translation	10		16		26
Balance at December 31, 2019	$	27,407	$	221	$	27,628

Accrued restructuring and other related costs of $27.6 million are included in accrued liabilities in the consolidated balance sheet at December 31, 2019.