Exhibit



	Page
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	1
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets	2
Consolidated Statements of Income and Comprehensive Income	3
Consolidated Statements of Cash Flows	4
Consolidated Statements of Partners' Equity	5
Notes to Consolidated Financial Statements	6-15

We have audited the accompanying consolidated balance sheets of Television Food Network, G.P. (the "Company") as of December 31, 2015 and 2014, and the related consolidated statements of income and comprehensive income, partners’ equity, and cash flows for each of the three years in the period ended December 31, 2015. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2015 and 2014, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2015, in conformity with accounting principles generally accepted in the United States of America.

As described in Note 7 to the consolidated financial statements, the accompanying financial statements include portions of certain revenue and expense transactions with affiliated companies, including allocations made from corporate functions, and may not necessarily be indicative of the conditions that would have existed or the results of operations if the Company had been operated as an unaffiliated company.

The accompanying consolidated financial statements for the year ended December 31, 2015 have been prepared assuming that the Company will continue beyond the contractual expiration of the partnership. As discussed in Note 1 to the financial statements, the Company is operated and organized under the terms of a general partnership agreement that specifies a dissolution date of December 31, 2016. If the partnership agreement is not extended or if the partnership is not reconstituted, the Company will be required to limit its activities to winding up, settling debts, liquidating assets and distributing proceeds to the partners in proportion to their partnership interests, which creates substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.



	As of December 31,
	2015			2014
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	—
Accounts receivable (less allowances — 2015, $4,761; 2014, $1,143)	279,417			253,545
Receivable due from related party	285,490			303,257
Programs and program licenses	183,149			151,006
Other current assets	2,369			956
Total current assets	750,425			708,764
INVESTMENTS	16,632			16,611
GOODWILL AND OTHER INTANGIBLE ASSETS:
Goodwill	10,235			10,235
Other intangible assets, net	1,118			1,186
Total goodwill and other intangible assets, net	11,353			11,421
OTHER ASSETS:
Programs and program licenses (less current portion)	141,365			117,205
Other non-current assets	4,163			11,567
Total other assets	145,528			128,772
TOTAL ASSETS	$	923,938		$	865,568
LIABILITIES AND PARTNERS’ EQUITY
CURRENT LIABILITIES:
Accounts and program rights payables	$	29,461		$	21,789
Unearned revenue	31,373			16,366
Other accrued liabilities	26,507			25,102
Total current liabilities	87,341			63,257
DEFERRED INCOME TAXES	541			619
TOTAL LIABILITIES	87,882			63,876
COMMITMENTS AND CONTINGENCIES (Note 6)
PARTNERS’ EQUITY:
Partners’ capital	839,546			802,427
Foreign currency translation adjustment	(3,490		)	(735		)
Total partners’ equity	836,056			801,692
TOTAL LIABILITIES AND PARTNERS’ EQUITY	$	923,938		$	865,568



	For the years ended December 31,
	2015			2014			2013
Operating revenues	$	1,099,307		$	1,070,671		$	1,031,320
COSTS AND EXPENSES:
Costs of services	288,638			273,377			245,963
Selling, general and administrative	261,683			262,750			264,100
Amortization of intangible assets	67			67			315
Total costs and expenses	550,388			536,194			510,378
OPERATING INCOME	548,919			534,477			520,942
OTHER CREDITS (CHARGES):
Equity in earnings of affiliates	15,923			17,345			21,797
Miscellaneous, net	(505		)	645			(202		)
Net other credits (charges)	15,418			17,990			21,595
Income before unincorporated business taxes	564,337			552,467			542,537
Unincorporated business taxes	2,680			3,409			31,302
NET INCOME	561,657			549,058			511,235
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	(2,755		)	(1,559		)	(1,360		)
COMPREHENSIVE INCOME	$	558,902		$	547,499		$	509,875



	For the years ended December 31,
	2015			2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	561,657		$	549,058		$	511,235
Adjustments to reconcile net income to net cash flows from operating activities:
Program amortization	262,848			243,772			218,302
Amortization of intangible assets	67			67			315
Equity in earnings of affiliates	(15,923		)	(17,345		)	(21,797		)
Amortization of network distribution costs	6,841			4,396			6,425
Program payments	(311,769		)	(249,276		)	(219,059		)
Dividends received from joint ventures, net of withholding tax paid	13,147			17,996			17,983
Changes in assets and liabilities:
Accounts receivable	(24,119		)	7,029			(3,800		)
Accounts payable	292			(131		)	487
Other assets and liabilities	13,730			(32,259		)	22,853
Cash provided by (used in) operating activities	506,771			523,307			532,944
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease (increase) in receivable due from related party	17,767			81,048			(56,835		)
Other, net	—			508			(613		)
Cash provided by (used in) investing activities	17,767			81,556			(57,448		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Capital contributions	—			—			16,990
Capital distributions	(524,538		)	(604,873		)	(492,476		)
Cash provided by (used in) financing activities	(524,538		)	(604,873		)	(475,486		)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			(10		)	10
CASH AND CASH EQUIVALENTS:
Beginning of period	—			10			—
End of period	$	—		$	—		$	10



	Managing Partner			Class A Partners			Class B Partners			Foreign Currency Translation Adjustment			Total Partners’ Equity
Partners’ equity at December 31, 2012	112,529			372,419			337,545			2,184			824,677
Net income	51,124			306,741			153,370			—			511,235
Foreign currency translation adjustment	—			—			—			(1,360		)	(1,360		)
Capital contributions	—			16,990			—			—			16,990
Capital distributions	(49,248		)	(295,485		)	(147,743		)	—			(492,476		)
Partners’ equity at December 31, 2013	114,405			400,665			343,172			824			859,066
Net income	54,906			329,435			164,717			—			549,058
Foreign currency translation adjustment	—			—			—			(1,559		)	(1,559		)
Capital distributions	(60,487		)	(362,924		)	(181,462		)	—			(604,873		)
Partners’ equity at December 31, 2014	108,824			367,176			326,427			(735		)	801,692
Net income	56,166			336,994			168,497			—			561,657
Foreign currency translation adjustment	—			—			—			(2,755		)	(2,755		)
Capital distributions	(52,454		)	(314,723		)	(157,361		)	—			(524,538		)
Partners’ equity at December 31, 2015	$	112,536		$	389,447		$	337,563		$	(3,490	)	$	836,056

Management and Ownership Structure - Food Network is operated and organized under the terms of a general partnership (the “Partnership”). During 2014, the Partnership agreement was extended and specifies a dissolution date of December 31, 2016. If the term of the Partnership is not extended prior to that date, the agreement would permit Scripps Networks Interactive, Inc. (“SNI" or "Scripps Networks”), as the beneficial holder of approximately 80% of the applicable votes, to reconstitute the Partnership and continue its business. If for some reason the Partnership is not continued it will be required to limit its activities to winding up, settling debts, liquidating assets and distributing proceeds to the partners in proportion to their partnership interests. The managing general partner has a 10% “residual” interest in Food Network, that is, except for cash distributions intended to offset the tax liabilities associated with any allocated taxable income, it is entitled to cash distributions only after all loans from partners have been repaid and Class A partners have recovered their capital contributions.

In addition to the managing general partner, there are five Class A partnership units with a 60% residual interest and two Class B partners with a 30% undilutable residual interest. Each Class A partnership unit entitles the holder to one vote on the five-member management committee of Food Network. The managing general partner and the Class B partners are nonvoting partners except that in certain circumstances the managing general partner is allowed a vote in the case of a management committee deadlock. SNI, through its wholly-owned subsidiaries, owns four class A partnership units thereby controlling Food Network.

For income tax purposes, Partnership profits are allocated first to offset previously allocated losses and then to the partners in proportion to their relative Partnership interests. Partnership losses are allocated first to offset previously allocated profits; second, to the extent of cumulative capital contributions; and finally, to Class A partners in proportion to their residual interests.

Nature of Operations - We operate two 24-hour television networks, Food Network and Cooking Channel, offering quality television, video, Internet and mobile entertainment and information focusing on food and entertaining. Our business is organized as a single reportable business segment. Programming for our networks is distributed by cable and satellite television systems. We earn revenue primarily from the sale of advertising time on national television networks and interactive platforms and from affiliate fees paid by providers that distribute our content.

The six largest cable television systems and the two largest direct broadcast satellite television systems in the U.S. provide service to more than 91.8% of homes receiving our networks. The loss of distribution of our networks by any of these cable or satellite television systems could adversely affect our business.

Investments in 20%-to-50%-owned companies and partnerships or companies and partnerships in which we exercise significant influence over the operating and financial policies are accounted for using the equity method. The results of companies acquired or disposed of are included in the consolidated financial statements from the effective date of acquisition or up to the date of disposal.

Use of Estimates - The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make a variety of decisions that affect reported amounts and the related disclosures, including the selection of appropriate accounting principles that reflect the economic substance of the underlying transactions and the assumptions on which to base accounting estimates. In reaching such decisions, we apply judgment based on our understanding and analysis of the relevant circumstances, including our historical experience, actuarial studies and other assumptions.

Our consolidated financial statements include estimates, judgment, and assumptions used in accounting for asset impairments, equity method investments, revenue recognition, program assets, depreciation and amortization, pension plans, share-based compensation, income taxes, fair value measurements and contingencies.

Foreign Currency Translation - Food Network Canada (“Food Canada”), in which we hold a 29% interest, uses their local currency as the functional currency. Assets and liabilities of such international subsidiaries are translated using end-of-period exchange rates while results of operations are translated based on the average exchange rates throughout the year. The effects of translating the financial position and results of operations of local functional currency operations into U.S. dollars are included as accumulated comprehensive income (loss) in Partners’ equity.

Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into the functional currency using end-of-period exchange rates. Gains or losses resulting from such remeasurement are recorded in income. Foreign exchange gains and losses are included within miscellaneous, net in the consolidated statements of income and comprehensive income.

Revenue is recognized when persuasive evidence of a sales arrangement exists, delivery occurs or services are rendered, the sales price is fixed or determinable and collectability is reasonably assured. Revenue is reported net of our remittance of sales taxes, value added taxes and other taxes collected from our customers.

Advertising - Advertising revenue is recognized, net of agency commissions, when advertisements are displayed. Internet and mobile advertising includes (i) fixed duration campaigns whereby a banner, text or other advertisement appears for a specified period of time for a fee; (ii) impression-based campaigns where the fee is based upon the number of times an advertisement appears in web pages viewed by a user; and (iii) click-through based campaigns where the fee is based upon the number of users who click on an advertisement and are directed to the advertiser’s website. Advertising revenue from fixed duration campaigns are recognized over the period in which the advertising appears. Internet and mobile advertising revenue that is based upon the number of impressions delivered or the number of click-throughs achieved is recognized as impressions are delivered or click-throughs occur.

advertising time if we do not deliver the guaranteed audience size. If we determine we have not delivered the guaranteed audience, an accrual for “make-good” advertisements is recorded as a reduction of revenue. The estimated make-good accrual is adjusted throughout the term of the advertising contracts.

Network Affiliate Fees - Cable and satellite television operators and telecommunication service providers generally pay a per-subscriber fee (“network affiliate fees”) for the right to distribute our programming under the terms of multi-year distribution contracts. Network affiliate fees are reported net of volume discounts earned by the distributors and incentive costs offered to system operators in exchange for initial multi-year distribution contracts. We recognize network affiliate fees as revenue over the term of the contracts, including any free periods. Network launch incentives are capitalized as assets upon launch of our programming on the cable or satellite television system and amortized against network affiliate fees based upon the ratio of each period’s revenue to expected total revenue over the term of the contracts.

Network affiliate fees due to us, net of applicable discounts, are reported to us by cable and satellite television operators. Such information is generally not received until after the close of the reporting period. Therefore, reported network affiliate fee revenues are based upon our estimates of the number of subscribers receiving our programming and the amount of volume-based discounts each cable and satellite television provider and telecommunication provider is entitled to receive. We subsequently adjust these estimated amounts based upon the actual amounts of network affiliate fees received. Such adjustments have not been significant.

Accounts Receivable - We extend credit to customers based upon our assessment of the customer’s financial condition. Collateral is generally not required from customers. Allowances for credit losses are generally based upon trends, economic conditions, review of aging categories and historical experience, and specific identification of customers at risk of default. Allowance for doubtful accounts receivable is as follows:



(in thousands)	Balance Beginning of Period		Additions for Bad Debt Expense		Deductions for Amounts Charged Off		Balance End of Period
Allowances for Doubtful Accounts Receivable
Year Ended December 31:
2015	$	1,143	$	4,343	$	725	$	4,761
2014	2,429		1,054		2,340		1,143
2013	1,950		780		301		2,429

Investments - We have investments that are accounted for using the equity method of accounting. We use the equity method to account for our investments in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. Under the equity method of accounting, investments are initially recorded at cost and subsequently increased or decreased to reflect our proportionate share of net earnings or losses of the equity method investees. Cash payments to equity method investees, such as additional investments, loans, advances and expenses incurred on behalf of investees, as well as dividends from equity method investees, are recorded as adjustments to the investment balances. The entire equity method investment is tested for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.

We regularly review our investments to determine if there has been any other-than-temporary decline in values. These reviews require management judgments that often include estimating the outcome of future events and determining whether factors exist that indicate impairment has occurred. We evaluate, among other factors, the extent to which the investments carrying value exceeds fair value, the duration of the decline in fair value below carrying value and the current cash position, earnings and cash forecasts and near term prospects of the investee. The carrying value of an investment is adjusted when a decline in fair value below cost is determined to be other-than-temporary.

Costs of programs produced include capitalizable direct costs, production overhead, development costs and acquired production costs. Production costs for programs produced are capitalized. Costs to produce live programming that are not expected to be rebroadcast are expensed as incurred. Program licenses generally have fixed terms, limit the number of times we can air the programs and require payments over the terms of the licenses. Licensed program assets and liabilities are recorded when programs become available for broadcast. Program licenses are not discounted for imputed interest. Program assets are amortized over the estimated useful lives of the programs based upon future cash flows and are included within cost of services in the consolidated statements of income and comprehensive income. The amortization of program assets generally results in an accelerated method over the estimated useful lives.

Estimated future cash flows can change based upon market acceptance, advertising and network affiliate fee rates, the number of subscribers receiving our networks and program usage. Accordingly, we periodically review revenue estimates and planned usage and revise our assumptions if necessary. If actual demand or market conditions are less favorable than projected, a write-down to net realizable value may be required. Development costs for programs that we have determined will not be produced are written off.

Program rights liabilities payable within the next twelve months are classified as a current liability within program rights payable on the consolidated balance sheets. Non-current program rights liabilities are included in other non-current liabilities on the consolidated balance sheets. The carrying value of our program rights liabilities approximates fair value.

Impairment of Long-Lived Assets - Long-lived assets, primarily network distribution incentives and finite-lived intangible assets, are reviewed for impairment whenever events or circumstances indicate the carrying amounts of the assets may not be recoverable. Recoverability for long-lived assets is determined by comparing the forecasted undiscounted cash flows of the operation to which the assets relate to the carrying amount of the assets. If the undiscounted cash flows are less than the carrying amount of the assets, then we write down the carrying value of the assets to estimated fair values, which are primarily based upon forecasted discounted cash flows. Fair value of long-lived assets is determined based on a combination of discounted cash flows and market multiples.

Marketing and Advertising Costs - Marketing and advertising costs, which totaled $50,548 thousand in 2015, $53,035 thousand in 2014 and $47,130 thousand in 2013 and are reported within selling, general and administrative in the consolidated statements of income and comprehensive income, include costs incurred to promote our businesses and to attract traffic to our websites. Advertising production costs are deferred and expensed the first time the advertisement is shown. Other marketing and advertising costs are expensed as incurred.

Income Taxes - Food Network is organized as a general partnership. Accordingly, the Company is not subject to federal and state income taxes as the respective partners are responsible for income taxes applicable to their share of the taxable income of Food Network. However, the Company is subject to a 4.0% New York City unincorporated business tax (“UBT”).

amounts of existing assets and liabilities, and their respective tax basis by applying statutory tax rates. The measurement of deferred tax assets is reduced by a valuation allowance if, based upon available evidence, it is more likely than not, that some or all of the deferred tax asset will not be realized.

Financial Instruments and Risk Management Contracts - Financial instruments consist of cash, accounts receivable, accounts payable, must-carry rights payable and program rights liabilities. The carrying amounts of these financial instruments approximate their fair value. We held no derivative financial instruments in 2015, 2014, and 2013.

Recently Issued Accounting Standards Update - In May 2014, the FASB issued ASC 606, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASC will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new ASC is effective for us on January 1, 2017. Early application is not permitted. The ASC permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements and related disclosures.

In November 2015, the FASB issued new accounting guidance related to the classification of deferred taxes, Balance Sheet Classification of Deferred Taxes, which requires that an entity classify deferred tax liabilities and assets as non-current amounts. The guidance requires that entities within a particular tax jurisdiction offset all deferred tax liabilities and assets, as well as any related valuation allowances, and present the amounts as a single non-current amount. The update is effective for us in 2016 and requires retrospective application at the time of implementation. The adoption of the update is not expected to have a material effect on our consolidated financial statements.

Going Concern - The Partnership is set to expire on December 31, 2016. If the term of the Partnership is not extended prior to that date, the Partnership agreement permits SNI, as holder of 80% of the applicable votes, to reconstitute the Partnership and continue its business. If for some reason the Partnership is not continued, activities will be limited to winding up, settling debts, liquidating assets and distributing proceeds to the partners in proportion to their partnership interests.



(in thousands)

Balance as of December 31, 2013	$	19,328
Equity in earnings of affiliates	17,345
Dividends received from joint ventures, net of withholding tax paid	(18,504		)
Foreign currency translation adjustment	(1,558		)
Balance as of December 31, 2014	16,611
Equity in earnings of affiliates	15,923
Dividends received from joint ventures, net of withholding tax paid	(13,147		)
Foreign currency translation adjustment	(2,755		)
Balance as of December 31, 2015	$	16,632

Investments accounted for using the equity method include the Company’s investments in Food Canada (29% owned) and Food Network Magazine JV (50% owned). We regularly review our investments to determine if there have been any other-than-temporary declines in value. These reviews require management judgments that often include estimating the outcome of future events and determining whether factors exist that indicate impairment has occurred. We evaluate among other factors, the extent to which the investment’s carrying value exceed fair value, the duration of the decline in fair value below carrying value, and the current cash position, earnings and cash forecasts and near term prospects of the investee. No impairments were recognized on any of our equity method investments in 2015, 2014 or 2013.



(in thousands)	As of December 31,
	2015		2014
Cost of programs available for broadcast	$	932,841	$	849,055
Accumulated amortization	668,939		614,095
Total	263,902		234,960
Progress payments on programs not yet available for broadcast	60,612		33,251
Total programs and program licenses	$	324,514	$	268,211

In addition to the programs owned or licensed by us included in the table above, we have commitments to license certain programming that is not yet available for broadcast. These contracts may require progress payments or deposits prior to the program becoming available for broadcast. Remaining obligations under contracts to purchase or license programs not yet available for broadcast totaled approximately $74,841 thousand at December 31, 2015. If the programs are not produced, our commitment to license would generally expire without obligation.

Programs and program license expense, which consist of program amortization and program impairments, is included within costs of services in our consolidated statements of income and comprehensive income. Program impairments totaled $21,132 thousand in 2015, $20,371 thousand in 2014 and $15,226 thousand in 2013.

In 2013, the New York City Department of Finance completed an audit of our Unincorporated Business Tax Returns for the years 2003 through 2005 and we reached agreement on adjustments that increased the amount of Unincorporated Business Taxable Income ("UBTI") apportioned to operations in New York City. Upon settling this audit, SNI also filed amended Unincorporated Business Tax returns for the Partnership for the years 2006 through 2011, and filed a 2012 Unincorporated Business Tax return for the Partnership that reflected the settlement items agreed to from the audit. Accordingly, our UBT expense amount in 2013 reflects approximately $28,000 thousand of additional taxes and interest for the tax years 2003-2012.

In 2015, the New York City Department of Finance completed an audit of our Unincorporated Business Tax Returns for the years 2006 through 2011 and we reached agreement on adjustments that increased the amount of Unincorporated Business Taxable Income ("UBTI") apportioned to operations in New York City. Accordingly, our UBT expense amount in 2015 reflects approximately $423 thousand of additional taxes for the tax years 2006-2011.



(in thousands)	As of December 31,
	2015			2014
Deferred tax assets:
Unearned revenue	$	(121	)	$	(66	)
Other temporary differences	(207		)	(158		)
	(328		)	(224		)
Deferred tax liabilities:
Programs and program licenses	469			582
Other temporary differences	72			37
	541			619
Net deferred tax liability	$	213		$	395

As of December 31, 2015 and 2014, we do not believe we have any uncertain tax positions that would require either recognition or disclosure in the accompanying consolidated financial statements. Our New York City unincorporated business taxes remain subject to examination for tax years 2012 and forward.

In the ordinary course of business, Food Network enters into long-term contracts to lease office space and equipment, to secure on-air talent, to obtain satellite transmission of network programming, and to purchase other goods and services. Minimum payments for such non-cancellable services as of December 31, 2015, are expected to be as follows:

SNI manages our daily flow of cash. We also participate in SNI’s controlled disbursement system. The bank sends SNI daily notifications of checks presented for payment, and SNI transfers funds from other sources to cover the checks. Our cash balance held by SNI is reduced as checks are issued. We receive interest income on positive cash balances, and are charged interest expense on negative cash balances. In determining whether we are to receive interest or to be charged interest, the balance is reduced by our share of the net book value of shared property and equipment.

Positive cash account balances due from SNI are reported as receivable due from related party in our consolidated balance sheets. The receivable due from SNI was $285,490 thousand at December 31, 2015 and $303,257 thousand at December 31, 2014, which earns interest at money market rates.

Food Network is also subject to the terms and conditions of variable rate credit agreements with each partner. Our variable rate credit agreement with SNI permits aggregate borrowings up to $150,000 thousand and our variable rate credit agreement with Tribune Company permits aggregate borrowings up to $12,500 thousand. Interest on each agreement is charged at the prime rate plus two percent. There were no outstanding borrowings under these agreements at December 31, 2015 and 2014.

We are party to an agreement with Shaw Media Inc. that provides us a 29% ownership interest in Food Canada. Pursuant to the terms of the agreement, we grant Food Canada an exclusive right to use the Food Network trademark and provide Food Canada with Food Network programming. Revenue recognized from the licensing of the Food Network trademark was $1,218 thousand in 2015, $693 thousand in 2014 and $365 thousand in 2013. Revenues from program sales to Food Canada were $5,645 thousand in 2015, $2,284 thousand in 2014 and $1,707 thousand in 2013.

We may provide Food Network programming to other Scripps Networks cable networks or companies controlled by SNI. Revenue recognized from the programming provided to other Scripps Networks cable networks or SNI controlled entities totaled $11,659 thousand in 2015, $6,808 thousand in 2014 and $5,613 thousand in 2013.

We may purchase advertising units from the other cable networks controlled by Scripps Networks and use the additional spots to satisfy “make good” audience deficiency accruals we have recorded in our consolidated financial statements. Consideration paid to Scripps Networks affiliated entities for these advertising spots totaled approximately $0 in 2015, $5 thousand in 2014 and $8,502 thousand in 2013.

Scripps Networks provides services covering affiliates sales, advertising sales, transmission and quality control, information technology functions, and other corporate functions related to executive management, corporate finance and accounting, legal, tax and human resources. Services provided by Scripps Networks for affiliate sales includes marketing, such as advertising campaigns, programming promotion, targeted sales presentations and managing tradeshow strategies and talent appearances; negotiating agreements with existing and new affiliates; billing and collection services; and providing channel affiliate reports. For advertising sales, Scripps Networks provides services that include selling television and internet advertising spots, advertising sales planning and marketing, rate card management services, sales positioning data, research support, related billing and collections and any necessary software and data services.

The total amount charged for these services is calculated by applying a Consumer Price Index escalator to the previous year’s allocated amount. These costs totaling $146,538 thousand in 2015, $144,089 thousand in 2014 and $141,959 thousand in 2013 are recorded within the selling, general and administrative caption in our consolidated statements of income and comprehensive income.

Scripps Networks may also negotiate affiliate agreements with cable and satellite television systems and telecommunication service providers on behalf of more than one, or all, of its networks in the aggregate, including our networks. The value of aggregate rights acquired from these providers are allocated to each network benefited based upon their relative fair values.

The Company has a retransmission consent compensation agreement (the “Retransmission Agreement”) with The E. W. Scripps Company (“EWS”) as a result of the spin-off from EWS in 2008. Members of the Scripps family who are parties to the Scripps Family Amended and Restated Agreement (the “Scripps Family Agreement”) hold a controlling interest in EWS, therefore EWS is a related party of the company. Under the Retransmission Agreement, Food Network made payments to EWS totaling $3,525 thousand in 2015, $8,684 thousand in 2014 and $8,332 thousand in 2013. These amounts are included in selling, general and administrative in the consolidated statements of income and comprehensive income.

Scripps Networks may incur costs that are attributable to one or all of their networks. Scripps Networks incurs the license fee costs on the contracts providing music rights for our programming. These costs are allocated to us using a percentage of revenues factor. While Food Network does not issue stock compensation to its employees, certain employees of Food Network participated in the SNI Amended Long-Term Incentive Plan. The cost of awards to Food Network employees are charged directly to Food Network. Substantially all Food Network employees received health, retirement and other benefits during 2015, 2014, and 2013 that were provided under SNI sponsored plans, including a defined benefit pension plan and a defined contribution plan. Health and life insurance costs are allocated based upon employee coverage elections and historical claims experience. Pension costs are allocated based upon past funding and an actuarial study of the covered employee groups. Benefits are based on the employees’ compensation and years of service. The funding of the plan is based on the requirements of the plan and applicable federal laws. Related to the defined contribution plan, a portion of the employees’ voluntary contributions were matched by SNI. The costs of the defined contribution plan are charged to us based upon those employee contributions.



(in thousands)	For the years ended December 31,
	2015	2014	2013
Music rights fees	2,381	2,262	2,250
Stock-based compensation costs	2,559	3,176	4,178
Health and life insurance	2,378	2,046	1,920
Defined benefit pension costs	324	451	745
Defined contribution costs	2,421	2,768	2,500
Other	6,843	6,259	5,526



(in thousands)	Programs Available for Broadcast		Programs Not Yet Available for Broadcast		Total
2016	$	152,080	$	69,927	$	222,007
2017	70,374		31,839		102,213
2018	31,929		16,944		48,873
2019	9,519		13,658		23,177
2020	—		3,085		3,085
Total	$	263,902	$	135,453	$	399,355



(in thousands)	Rent Commitments		Talent Contract Commitments
2016	$	10,351	$	10,436
2017	10,682		10,525
2018	10,896		6,530
2019	11,114		—
2020	11,336		—
Later years	10,102		—
Total	$	64,481	$	27,491


•	Fees for programming services (“network affiliate fees”).