Restructuring and Other Related Charges

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

The Company recorded restructuring and other related charges of $35.1 million for the year ended December 31, 2020. On November 18, 2020, the Company commenced a restructuring plan (the “2020 Plan”) designed to streamline the Company’s operations through a reduction of its domestic workforce. The 2020 Plan is intended to improve the organizational design of the Company through the elimination of certain roles and centralization of certain functional areas of the Company. Restructuring and other related charges associated with the 2020 Plan, recorded in 2020, were primarily for severance and other personnel costs of $21.2 million, of which $11.8 million was attributable to the National Networks segment and $9.4 million was attributable to the International and Other segment. Additional restructuring and other related charges for the year ended December 31, 2020 were $13.9 million, which related to costs associated with the termination of distribution in certain territories, as well as severance and other personnel related costs associated with previously disclosed restructuring activities.

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 Streaming Services 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.

In connection with the AMC Networks Streaming Services 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 Streaming Services 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 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. Additionally, AMCNI completed a portfolio rationalization review that resulted in the termination of distribution in certain territories, resulting in a $9.9 million charge.

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


	Years Ended December 31,
(In thousands)	2020		2019		2018
National Networks	$	20,553	$	13,453	$	17,160
International and Other	14,515		28,084		35,189
Inter-segment Eliminations	—		(623)		(6,502)
Total restructuring and other related charges	$	35,068	$	40,914	$	45,847

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


	Years Ended December 31,
(In thousands)	2020		2019		2018
Restructuring charges	$	35,068	$	27,897	$	45,847
Other related charges	—		13,017		—
Total restructuring and other related charges	$	35,068	$	40,914	$	45,847

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, 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
Charges	30,752		4,316		35,068

Cash payments	(31,545)		(191)		(31,736)
Non-cash adjustments	(1,043)		(4,316)		(5,359)
Currency translation	—		1		1
Balance at December 31, 2020	$	25,571	$	31	$	25,602

Accrued restructuring and other related costs of $25.6 million are included in accrued liabilities in the consolidated balance sheet at December 31, 2020.