|
|
þ
|
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
|
Delaware
|
27-5403694
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
11 Penn Plaza,
New York, NY
|
10001
|
(Address of principal executive offices)
|
(Zip Code)
|
|
Large accelerated filer
|
þ
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
Class A Common Stock par value $0.01 per share
|
59,915,332
|
Class B Common Stock par value $0.01 per share
|
11,484,408
|
|
Page
|
|
|
|
|
|
|
Item 1.
|
Financial Statements.
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
643,470
|
|
|
$
|
316,321
|
|
Accounts receivable, trade (less allowance for doubtful accounts of
$5,502
and $4,307)
|
726,508
|
|
|
674,611
|
|
||
Amounts due from related parties, net
|
441
|
|
|
4,062
|
|
||
Current portion of program rights, net
|
390,162
|
|
|
453,157
|
|
||
Prepaid expenses and other current assets
|
87,373
|
|
|
72,989
|
|
||
Deferred tax asset, net
|
30,101
|
|
|
16,198
|
|
||
Total current assets
|
1,878,055
|
|
|
1,537,338
|
|
||
Property and equipment, net of accumulated depreciation of
$231,313
and $209,236
|
171,092
|
|
|
163,860
|
|
||
Program rights, net
|
1,123,874
|
|
|
1,027,394
|
|
||
Deferred carriage fees, net
|
51,689
|
|
|
50,069
|
|
||
Intangible assets, net
|
532,263
|
|
|
549,180
|
|
||
Goodwill
|
708,071
|
|
|
736,275
|
|
||
Other assets
|
200,359
|
|
|
200,799
|
|
||
Total assets
|
$
|
4,665,403
|
|
|
$
|
4,264,915
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
89,055
|
|
|
$
|
71,148
|
|
Accrued liabilities
|
235,422
|
|
|
254,086
|
|
||
Current portion of program rights obligations
|
291,243
|
|
|
289,897
|
|
||
Deferred revenue
|
93,275
|
|
|
64,229
|
|
||
Current portion of long-term debt
|
230,551
|
|
|
148,000
|
|
||
Current portion of capital lease obligations
|
4,405
|
|
|
3,561
|
|
||
Total current liabilities
|
943,951
|
|
|
830,921
|
|
||
Program rights obligations
|
385,445
|
|
|
440,591
|
|
||
Long-term debt
|
2,703,031
|
|
|
2,519,808
|
|
||
Capital lease obligations
|
38,189
|
|
|
29,779
|
|
||
Deferred tax liability, net
|
160,597
|
|
|
137,233
|
|
||
Other liabilities
|
104,272
|
|
|
103,530
|
|
||
Total liabilities
|
4,335,485
|
|
|
4,061,862
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
213,856
|
|
|
211,691
|
|
||
Stockholders’ equity (deficiency):
|
|
|
|
||||
Class A Common Stock, $0.01 par value, 360,000,000 shares authorized, 62,407,876 and 62,120,102 shares issued and 60,386,220 and 60,909,831 shares outstanding, respectively
|
624
|
|
|
621
|
|
||
Class B Common Stock, $0.01 par value, 90,000,000 shares authorized, 11,484,408 shares issued and outstanding
|
115
|
|
|
115
|
|
||
Preferred stock, $0.01 par value, 45,000,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Paid-in capital
|
120,802
|
|
|
123,157
|
|
||
Accumulated earnings
|
215,519
|
|
|
24,880
|
|
||
Treasury stock, at cost (2,021,656 and
1,210,271
shares Class A Common Stock, respectively)
|
(100,220
|
)
|
|
(51,993
|
)
|
||
Accumulated other comprehensive loss
|
(151,615
|
)
|
|
(136,057
|
)
|
||
Total AMC Networks stockholders’ equity (deficiency)
|
85,225
|
|
|
(39,277
|
)
|
||
Non-redeemable noncontrolling interests
|
30,837
|
|
|
30,639
|
|
||
Total stockholders’ equity (deficiency)
|
116,062
|
|
|
(8,638
|
)
|
||
Total liabilities and stockholders’ equity (deficiency)
|
$
|
4,665,403
|
|
|
$
|
4,264,915
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues, net (including revenues, net from related parties of $6,200, $6,493, $12,906 and $13,212, respectively)
|
$
|
684,832
|
|
|
$
|
601,138
|
|
|
$
|
1,391,411
|
|
|
$
|
1,269,820
|
|
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Technical and operating (excluding depreciation and amortization)
|
305,492
|
|
|
259,730
|
|
|
576,537
|
|
|
521,903
|
|
||||
Selling, general and administrative (including charges from related parties of $822, $1,269, $1,890 and $2,218, respectively)
|
179,366
|
|
|
158,880
|
|
|
336,644
|
|
|
313,459
|
|
||||
Restructuring expense
|
389
|
|
|
2,654
|
|
|
354
|
|
|
3,310
|
|
||||
Depreciation and amortization
|
21,553
|
|
|
21,040
|
|
|
41,185
|
|
|
41,567
|
|
||||
Total operating expenses
|
506,800
|
|
|
442,304
|
|
|
954,720
|
|
|
880,239
|
|
||||
Operating income
|
178,032
|
|
|
158,834
|
|
|
436,691
|
|
|
389,581
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(32,007
|
)
|
|
(32,571
|
)
|
|
(63,757
|
)
|
|
(65,595
|
)
|
||||
Interest income
|
1,671
|
|
|
792
|
|
|
2,393
|
|
|
1,229
|
|
||||
Loss on extinguishment of debt
|
(9
|
)
|
|
—
|
|
|
(48,343
|
)
|
|
—
|
|
||||
Miscellaneous, net
|
(24,910
|
)
|
|
11,384
|
|
|
(25,599
|
)
|
|
1,154
|
|
||||
Total other income (expense)
|
(55,255
|
)
|
|
(20,395
|
)
|
|
(135,306
|
)
|
|
(63,212
|
)
|
||||
Income from operations before income taxes
|
122,777
|
|
|
138,439
|
|
|
301,385
|
|
|
326,369
|
|
||||
Income tax expense
|
(39,390
|
)
|
|
(50,997
|
)
|
|
(97,933
|
)
|
|
(112,251
|
)
|
||||
Net income including noncontrolling interests
|
83,387
|
|
|
87,442
|
|
|
203,452
|
|
|
214,118
|
|
||||
Net income attributable to noncontrolling interests
|
(6,212
|
)
|
|
(4,433
|
)
|
|
(12,832
|
)
|
|
(10,189
|
)
|
||||
Net income attributable to AMC Networks’ stockholders
|
$
|
77,175
|
|
|
$
|
83,009
|
|
|
$
|
190,620
|
|
|
$
|
203,929
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to AMC Networks’ stockholders:
|
|
|
|
|
|
|
|||||||||
Basic
|
$
|
1.06
|
|
|
$
|
1.15
|
|
|
$
|
2.62
|
|
|
$
|
2.82
|
|
Diluted
|
$
|
1.05
|
|
|
$
|
1.14
|
|
|
$
|
2.60
|
|
|
$
|
2.81
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares:
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares
|
72,729
|
|
|
72,447
|
|
|
72,654
|
|
|
72,327
|
|
||||
Diluted weighted average common shares
|
73,300
|
|
|
73,128
|
|
|
73,287
|
|
|
72,685
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income including noncontrolling interests
|
$
|
83,387
|
|
|
$
|
87,442
|
|
|
$
|
203,452
|
|
|
$
|
214,118
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
(18,389
|
)
|
|
24,119
|
|
|
(3,004
|
)
|
|
(36,706
|
)
|
||||
Unrealized (loss) gain on interest rate swaps
|
(765
|
)
|
|
674
|
|
|
(2,343
|
)
|
|
1,370
|
|
||||
Other comprehensive income (loss), before income taxes
|
(19,154
|
)
|
|
24,793
|
|
|
(5,347
|
)
|
|
(35,336
|
)
|
||||
Income tax (expense) benefit
|
(8,312
|
)
|
|
5,943
|
|
|
(10,211
|
)
|
|
3,664
|
|
||||
Other comprehensive income (loss), net of income taxes
|
(27,466
|
)
|
|
30,736
|
|
|
(15,558
|
)
|
|
(31,672
|
)
|
||||
Comprehensive income
|
55,921
|
|
|
118,178
|
|
|
187,894
|
|
|
182,446
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
(4,424
|
)
|
|
(4,433
|
)
|
|
(11,456
|
)
|
|
(10,189
|
)
|
||||
Comprehensive income attributable to AMC Networks’ stockholders
|
$
|
51,497
|
|
|
$
|
113,745
|
|
|
$
|
176,438
|
|
|
$
|
172,257
|
|
|
Six Months Ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income including noncontrolling interests
|
$
|
203,452
|
|
|
$
|
214,118
|
|
Adjustments to reconcile income from operations to net cash from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
41,185
|
|
|
41,567
|
|
||
Share-based compensation expense related to equity classified awards
|
19,488
|
|
|
16,089
|
|
||
Amortization and write-off of program rights
|
373,491
|
|
|
343,161
|
|
||
Amortization of deferred carriage fees
|
8,187
|
|
|
8,009
|
|
||
Unrealized foreign currency transaction loss (gain)
|
28,366
|
|
|
(8,345
|
)
|
||
Unrealized gain derivative contracts, net
|
1,064
|
|
|
791
|
|
||
Amortization of deferred financing costs and discounts on indebtedness
|
4,638
|
|
|
4,476
|
|
||
Loss on extinguishment of debt
|
48,343
|
|
|
—
|
|
||
Bad debt expense
|
1,449
|
|
|
1,228
|
|
||
Deferred income taxes
|
4,225
|
|
|
10,069
|
|
||
Excess tax benefits from share-based compensation arrangements
|
(781
|
)
|
|
(4,038
|
)
|
||
Other, net
|
(1,930
|
)
|
|
(246
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable, trade (including amounts due from related parties, net)
|
(45,536
|
)
|
|
(18,055
|
)
|
||
Prepaid expenses and other assets
|
(17,090
|
)
|
|
(15,359
|
)
|
||
Program rights and obligations, net
|
(466,288
|
)
|
|
(412,205
|
)
|
||
Income taxes payable
|
13,636
|
|
|
2,696
|
|
||
Deferred revenue
|
29,308
|
|
|
33,779
|
|
||
Deferred carriage fees, net
|
(9,910
|
)
|
|
(17,138
|
)
|
||
Accounts payable, accrued expenses and other liabilities
|
(5,733
|
)
|
|
(10,356
|
)
|
||
Net cash provided by operating activities
|
229,564
|
|
|
190,241
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(24,186
|
)
|
|
(33,124
|
)
|
||
Payments for acquisition of a business, net of cash acquired
|
(354
|
)
|
|
(6,545
|
)
|
||
Purchases of investments
|
—
|
|
|
(24,250
|
)
|
||
Net cash used in investing activities
|
(24,540
|
)
|
|
(63,919
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from the issuance of long-term debt
|
982,500
|
|
|
—
|
|
||
Principal payments on long-term debt
|
(728,449
|
)
|
|
(37,000
|
)
|
||
Payment of Promissory Note
|
—
|
|
|
(40,000
|
)
|
||
Premium and fees paid on extinguishment of debt
|
(39,188
|
)
|
|
—
|
|
||
Payments for financing costs
|
(2,070
|
)
|
|
—
|
|
||
Deemed repurchases of restricted stock/units
|
(10,834
|
)
|
|
(14,320
|
)
|
||
Purchase of treasury stock
|
(48,227
|
)
|
|
—
|
|
||
Proceeds from stock option exercises
|
1,216
|
|
|
1,031
|
|
||
Excess tax benefits from share-based compensation arrangements
|
781
|
|
|
4,038
|
|
||
Principal payments on capital lease obligations
|
(2,075
|
)
|
|
(1,449
|
)
|
||
Distributions to noncontrolling interest
|
(8,977
|
)
|
|
(3,154
|
)
|
||
Contributions from noncontrolling member
|
—
|
|
|
1,373
|
|
||
Net cash provided by (
used in)
financing activities
|
144,677
|
|
|
(89,481
|
)
|
||
Net increase in cash and cash equivalents from operations
|
349,701
|
|
|
36,841
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(22,552
|
)
|
|
2,852
|
|
||
Cash and cash equivalents at beginning of period
|
316,321
|
|
|
201,367
|
|
||
Cash and cash equivalents at end of period
|
$
|
643,470
|
|
|
$
|
241,060
|
|
•
|
National Networks:
Principally includes activities of our programming businesses which include our
five
programming networks distributed in the U.S. and Canada. These programming networks include AMC, WE tv, BBC AMERICA, IFC and SundanceTV in the U.S.; and AMC, IFC, and Sundance Channel in Canada. Our programming businesses within the National Networks segment may also sell rights worldwide to their owned original programming. The National Networks operating segment also includes AMC Networks Broadcasting & Technology, the technical services business, which primarily services most of the programming networks included in the National Networks segment.
|
•
|
International and Other:
Principally includes AMC Networks International (“AMCNI”), the Company’s international programming businesses consisting of a portfolio of channels in Europe, Latin America, the Middle East and parts of Asia and Africa; IFC Films, the Company’s independent film distribution business; AMCNI- DMC, the broadcast solutions unit of certain networks of AMCNI and third-party networks, and various developing on-line content distribution initiatives.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Basic weighted average common shares outstanding
|
72,729,000
|
|
|
72,447,000
|
|
|
72,654,000
|
|
|
72,327,000
|
|
Effect of dilution:
|
|
|
|
|
|
|
|
||||
Stock options
|
1,000
|
|
|
164,000
|
|
|
26,000
|
|
|
91,000
|
|
Restricted stock units
|
570,000
|
|
|
517,000
|
|
|
607,000
|
|
|
267,000
|
|
Diluted weighted average common shares outstanding
|
73,300,000
|
|
|
73,128,000
|
|
|
73,287,000
|
|
|
72,685,000
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
National Networks
|
$
|
37
|
|
|
$
|
651
|
|
|
$
|
67
|
|
|
$
|
717
|
|
International & Other
|
352
|
|
|
2,003
|
|
|
287
|
|
|
2,593
|
|
||||
Total restructuring expense
|
$
|
389
|
|
|
$
|
2,654
|
|
|
$
|
354
|
|
|
$
|
3,310
|
|
|
Severance and employee-related costs
|
|
Other exit costs
|
|
Total
|
||||||
December 31, 2015
|
$
|
9,498
|
|
|
$
|
512
|
|
|
$
|
10,010
|
|
Charges
|
22
|
|
|
332
|
|
|
354
|
|
|||
Cash payments
|
(8,628
|
)
|
|
(390
|
)
|
|
(9,018
|
)
|
|||
Currency translation
|
(89
|
)
|
|
5
|
|
|
(84
|
)
|
|||
June 30, 2016
|
$
|
803
|
|
|
$
|
459
|
|
|
$
|
1,262
|
|
|
National Networks
|
|
International
and Other
|
|
Total
|
||||||
December 31, 2015
|
$
|
244,849
|
|
|
$
|
491,426
|
|
|
$
|
736,275
|
|
Purchase accounting adjustments
|
—
|
|
|
(7,246
|
)
|
|
(7,246
|
)
|
|||
Amortization of “second component” goodwill
|
(1,262
|
)
|
|
—
|
|
|
(1,262
|
)
|
|||
Foreign currency translation
|
—
|
|
|
(19,696
|
)
|
|
(19,696
|
)
|
|||
June 30, 2016
|
$
|
243,587
|
|
|
$
|
464,484
|
|
|
$
|
708,071
|
|
|
June 30, 2016
|
|
|
||||||||||
|
Gross
|
|
Accumulated
Amortization
|
|
Net
|
|
Estimated Useful Lives
|
||||||
Amortizable intangible assets:
|
|
|
|
|
|
|
|
||||||
Affiliate and customer relationships
|
$
|
538,202
|
|
|
$
|
(124,771
|
)
|
|
$
|
413,431
|
|
|
11 to 25 years
|
Advertiser relationships
|
46,282
|
|
|
(7,094
|
)
|
|
39,188
|
|
|
11 years
|
|||
Trade names
|
55,324
|
|
|
(5,685
|
)
|
|
49,639
|
|
|
20 years
|
|||
Other amortizable intangible assets
|
10,516
|
|
|
(477
|
)
|
|
10,039
|
|
|
5 years
|
|||
Total amortizable intangible assets
|
650,324
|
|
|
(138,027
|
)
|
|
512,297
|
|
|
|
|||
Indefinite-lived intangible assets:
|
|
|
|
|
|
|
|
||||||
Trademarks
|
19,966
|
|
|
—
|
|
|
19,966
|
|
|
|
|||
Total intangible assets
|
$
|
670,290
|
|
|
$
|
(138,027
|
)
|
|
$
|
532,263
|
|
|
|
|
December 31, 2015
|
|
|
||||||||||
|
Gross
|
|
Accumulated
Amortization
|
|
Net
|
|
|
||||||
Amortizable intangible assets:
|
|
|
|
|
|
|
|
||||||
Affiliate and customer relationships
|
$
|
554,012
|
|
|
$
|
(110,203
|
)
|
|
$
|
443,809
|
|
|
|
Advertiser relationships
|
46,282
|
|
|
(4,990
|
)
|
|
41,292
|
|
|
|
|||
Trade names
|
48,522
|
|
|
(4,353
|
)
|
|
44,169
|
|
|
|
|||
Other amortizable intangible assets
|
15
|
|
|
(5
|
)
|
|
10
|
|
|
|
|||
Total amortizable intangible assets
|
648,831
|
|
|
(119,551
|
)
|
|
529,280
|
|
|
|
|||
Indefinite-lived intangible assets:
|
|
|
|
|
|
|
|
||||||
Trademarks
|
19,900
|
|
|
—
|
|
|
19,900
|
|
|
|
|||
Total intangible assets
|
$
|
668,731
|
|
|
$
|
(119,551
|
)
|
|
$
|
549,180
|
|
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Interest
|
$
|
17,613
|
|
|
$
|
28,246
|
|
Employee related costs
|
87,784
|
|
|
119,931
|
|
||
Income taxes payable
|
14,138
|
|
|
2,112
|
|
||
Other accrued expenses
|
115,887
|
|
|
103,797
|
|
||
Total accrued liabilities
|
$
|
235,422
|
|
|
$
|
254,086
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Senior Secured Credit Facility:
(a)
|
|
|
|
||||
Term Loan A Facility
|
$
|
1,332,000
|
|
|
$
|
1,406,000
|
|
Senior Notes:
|
|
|
|
||||
5.00% Notes due April 2024
|
1,000,000
|
|
|
—
|
|
||
7.75% Notes due July 2021
|
45,551
|
|
|
700,000
|
|
||
4.75% Notes due December 2022
|
600,000
|
|
|
600,000
|
|
||
Total long-term debt
|
2,977,551
|
|
|
2,706,000
|
|
||
Unamortized discount
|
(25,775
|
)
|
|
(17,911
|
)
|
||
Unamortized deferred financing costs
|
(18,194
|
)
|
|
(20,281
|
)
|
||
Long-term debt, net
|
2,933,582
|
|
|
2,667,808
|
|
||
Current portion of long-term debt
|
230,551
|
|
|
148,000
|
|
||
Noncurrent portion of long-term debt
|
$
|
2,703,031
|
|
|
$
|
2,519,808
|
|
(a)
|
The Company’s
$500,000
revolving credit facility remains undrawn at
June 30, 2016
. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company.
|
•
|
Level I - Quoted prices for identical instruments in active markets.
|
•
|
Level II - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
|
•
|
Level III - Instruments whose significant value drivers are unobservable.
|
|
|
Level I
|
|
Level II
|
|
Total
|
||||||
At June 30, 2016:
|
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
||||||
Cash equivalents
|
|
$
|
166,194
|
|
|
$
|
—
|
|
|
$
|
166,194
|
|
Foreign currency derivatives
|
|
—
|
|
|
5,912
|
|
|
5,912
|
|
|||
Liabilities:
|
|
|
|
|
|
|
||||||
Interest rate swap contracts
|
|
$
|
—
|
|
|
$
|
2,513
|
|
|
$
|
2,513
|
|
Foreign currency derivatives
|
|
—
|
|
|
2,971
|
|
|
2,971
|
|
|||
At December 31, 2015:
|
|
|
|
|
|
|
||||||
Assets:
|
|
|
|
|
|
|
||||||
Cash equivalents
|
|
$
|
2,027
|
|
|
$
|
—
|
|
|
$
|
2,027
|
|
Interest rate swap contracts
|
|
—
|
|
|
1,449
|
|
|
1,449
|
|
|||
Foreign currency derivatives
|
|
—
|
|
|
4,421
|
|
|
4,421
|
|
|||
Liabilities:
|
|
|
|
|
|
|
||||||
Interest rate swap contracts
|
|
$
|
—
|
|
|
$
|
2,682
|
|
|
$
|
2,682
|
|
Foreign currency derivatives
|
|
—
|
|
|
3,107
|
|
|
3,107
|
|
|
June 30, 2016
|
||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
||||
Debt instruments:
|
|
|
|
||||
Term Loan A Facility
|
$
|
1,316,063
|
|
|
$
|
1,312,020
|
|
5.00% Notes due April 2024
|
980,927
|
|
|
990,000
|
|
||
7.75% Notes due July 2021
|
45,018
|
|
|
47,373
|
|
||
4.75% Notes due December 2022
|
591,574
|
|
|
595,500
|
|
||
|
$
|
2,933,582
|
|
|
$
|
2,944,893
|
|
|
December 31, 2015
|
||||||
|
Carrying
Amount
|
|
Estimated
Fair Value
|
||||
Debt instruments:
|
|
|
|
||||
Term Loan A Facility
|
$
|
1,386,869
|
|
|
$
|
1,370,850
|
|
7.75% Notes due July 2021
|
689,910
|
|
|
737,625
|
|
||
4.75% Notes due December 2022
|
591,029
|
|
|
600,000
|
|
||
|
$
|
2,667,808
|
|
|
$
|
2,708,475
|
|
|
Balance Sheet
Location
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
||||
Interest rate swap contracts
|
Other assets
|
|
$
|
—
|
|
|
$
|
1,449
|
|
Liabilities:
|
|
|
|
|
|
||||
Interest rate swap contracts
|
Other liabilities
|
|
894
|
|
|
—
|
|
||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
||||
Foreign currency derivatives
|
Prepaid expenses and other current assets
|
|
1,630
|
|
|
1,331
|
|
||
Foreign currency derivatives
|
Other assets
|
|
4,282
|
|
|
3,090
|
|
||
Liabilities:
|
|
|
|
|
|
||||
Interest rate swap contracts
|
Accrued liabilities
|
|
115
|
|
|
660
|
|
||
Interest rate swap contracts
|
Other liabilities
|
|
1,504
|
|
|
2,022
|
|
||
Foreign currency derivatives
|
Accrued liabilities
|
|
1,073
|
|
|
1,429
|
|
||
Foreign currency derivatives
|
Other liabilities
|
|
1,899
|
|
|
1,678
|
|
|
Gain or (Loss) on Derivatives
Recognized in OCI |
|
Location of Gain or (Loss) in Earnings
|
|
Gain or (Loss) Reclassified
from Accumulated OCI
into Earnings (a) |
||||||||||||
|
Three Months Ended June 30,
|
|
|
|
Three Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
||||||||
Derivatives in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
$
|
(934
|
)
|
|
$
|
(197
|
)
|
|
Interest expense
|
|
$
|
(169
|
)
|
|
$
|
(871
|
)
|
(a)
|
There were no gains or losses recognized in earnings related to any ineffective portion of hedging relationships or related to any amount excluded from the assessment of hedge effectiveness for the three months ended
June 30, 2016
and
2015
.
|
|
Gain or (Loss) on Derivatives
Recognized in OCI |
|
Location of Gain or (Loss) in Earnings
|
|
Gain or (Loss) Reclassified
from Accumulated OCI
into Earnings (a) |
||||||||||||
|
Six Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
|
|
2016
|
|
2015
|
||||||||
Derivatives in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
$
|
(2,675
|
)
|
|
$
|
(469
|
)
|
|
Interest expense
|
|
$
|
(332
|
)
|
|
$
|
(1,839
|
)
|
(a)
|
There were no gains or losses recognized in earnings related to any ineffective portion of hedging relationships or related to any amount excluded from the assessment of hedge effectiveness for the
six
months ended
June 30, 2016
and
2015
.
|
|
Location of Gain or (Loss) Recognized in Earnings
on Derivatives
|
|
Amount of Gain or (Loss) Recognized in Earnings on Derivatives
|
|
Amount of Gain or (Loss) Recognized in Earnings on Derivatives
|
||||||||||||
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Derivatives not designated as hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
Interest expense
|
|
$
|
(49
|
)
|
|
$
|
(74
|
)
|
|
$
|
(229
|
)
|
|
$
|
(495
|
)
|
Foreign currency derivatives
|
Miscellaneous, net
|
|
2,158
|
|
|
(1,993
|
)
|
|
2,210
|
|
|
(1,500
|
)
|
||||
Total
|
|
|
$
|
2,109
|
|
|
$
|
(2,067
|
)
|
|
$
|
1,981
|
|
|
$
|
(1,995
|
)
|
|
Six Months Ended June 30, 2016
|
||
December 31, 2015
|
$
|
211,691
|
|
Net earnings
|
11,161
|
|
|
Distributions
|
(8,977
|
)
|
|
Other
|
(19
|
)
|
|
June 30, 2016
|
$
|
213,856
|
|
|
Six Months Ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Non-Cash Investing and Financing Activities:
|
|
|
|
||||
Increase in capital lease obligations
|
$
|
10,983
|
|
|
$
|
—
|
|
Capital expenditures incurred but not yet paid
|
2,101
|
|
|
1,957
|
|
||
Supplemental Data:
|
|
|
|
||||
Cash interest paid
|
69,449
|
|
|
61,223
|
|
||
Income taxes paid, net
|
75,450
|
|
|
99,177
|
|
|
Six Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2015
|
||||||||||||||||||||
|
Currency Translation Adjustment
|
|
Gains (Losses) on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Currency Translation Adjustment
|
|
Gains (Losses) on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||||||
Beginning balance
|
$
|
(136,434
|
)
|
|
$
|
377
|
|
|
$
|
(136,057
|
)
|
|
$
|
(77,492
|
)
|
|
$
|
(1,756
|
)
|
|
$
|
(79,248
|
)
|
Other comprehensive (loss) before reclassifications
|
(3,004
|
)
|
|
(2,675
|
)
|
|
(5,679
|
)
|
|
(36,706
|
)
|
|
(469
|
)
|
|
(37,175
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
332
|
|
|
332
|
|
|
—
|
|
|
1,839
|
|
|
1,839
|
|
||||||
Net current-period other comprehensive (loss) income, before income taxes
|
(3,004
|
)
|
|
(2,343
|
)
|
|
(5,347
|
)
|
|
(36,706
|
)
|
|
1,370
|
|
|
(35,336
|
)
|
||||||
Income tax (expense) benefit
|
(11,069
|
)
|
|
858
|
|
|
(10,211
|
)
|
|
4,165
|
|
|
(501
|
)
|
|
3,664
|
|
||||||
Net current-period other comprehensive (loss) income, net of income taxes
|
(14,073
|
)
|
|
(1,485
|
)
|
|
(15,558
|
)
|
|
(32,541
|
)
|
|
869
|
|
|
(31,672
|
)
|
||||||
Ending balance
|
$
|
(150,507
|
)
|
|
$
|
(1,108
|
)
|
|
$
|
(151,615
|
)
|
|
$
|
(110,033
|
)
|
|
$
|
(887
|
)
|
|
$
|
(110,920
|
)
|
|
Three Months Ended June 30, 2016
|
||||||||||||||
|
National
Networks
|
|
International
and Other
|
|
Inter-segment
eliminations
|
|
Consolidated
|
||||||||
Revenues, net
|
|
|
|
|
|
|
|
||||||||
Advertising
|
$
|
239,331
|
|
|
$
|
25,564
|
|
|
$
|
—
|
|
|
$
|
264,895
|
|
Distribution
|
333,302
|
|
|
92,716
|
|
|
(6,081
|
)
|
|
419,937
|
|
||||
Consolidated revenues, net
|
$
|
572,633
|
|
|
$
|
118,280
|
|
|
$
|
(6,081
|
)
|
|
$
|
684,832
|
|
Adjusted operating cash flow
|
$
|
206,328
|
|
|
$
|
8,207
|
|
|
$
|
(3,239
|
)
|
|
$
|
211,296
|
|
Depreciation and amortization
|
(8,053
|
)
|
|
(13,500
|
)
|
|
—
|
|
|
(21,553
|
)
|
||||
Share-based compensation expense
|
(9,148
|
)
|
|
(2,174
|
)
|
|
—
|
|
|
(11,322
|
)
|
||||
Restructuring expense
|
(37
|
)
|
|
(352
|
)
|
|
—
|
|
|
(389
|
)
|
||||
Operating income (loss)
|
$
|
189,090
|
|
|
$
|
(7,819
|
)
|
|
$
|
(3,239
|
)
|
|
$
|
178,032
|
|
|
Three Months Ended June 30, 2015
|
||||||||||||||
|
National
Networks
|
|
International
and Other
|
|
Inter-segment
eliminations
|
|
Consolidated
|
||||||||
Revenues, net
|
|
|
|
|
|
|
|
||||||||
Advertising
|
$
|
185,712
|
|
|
$
|
21,778
|
|
|
$
|
—
|
|
|
$
|
207,490
|
|
Distribution
|
302,896
|
|
|
91,105
|
|
|
(353
|
)
|
|
393,648
|
|
||||
Consolidated revenues, net
|
$
|
488,608
|
|
|
$
|
112,883
|
|
|
$
|
(353
|
)
|
|
$
|
601,138
|
|
Adjusted operating cash flow
|
$
|
182,553
|
|
|
$
|
8,610
|
|
|
$
|
166
|
|
|
$
|
191,329
|
|
Depreciation and amortization
|
(7,212
|
)
|
|
(13,828
|
)
|
|
—
|
|
|
(21,040
|
)
|
||||
Share-based compensation expense
|
(7,043
|
)
|
|
(1,758
|
)
|
|
—
|
|
|
(8,801
|
)
|
||||
Restructuring expense
|
(651
|
)
|
|
(2,003
|
)
|
|
—
|
|
|
(2,654
|
)
|
||||
Operating income (loss)
|
$
|
167,647
|
|
|
$
|
(8,979
|
)
|
|
$
|
166
|
|
|
$
|
158,834
|
|
|
Six Months Ended June 30, 2016
|
||||||||||||||
|
National
Networks
|
|
International
and Other
|
|
Inter-segment
eliminations
|
|
Consolidated
|
||||||||
Revenues, net
|
|
|
|
|
|
|
|
||||||||
Advertising
|
$
|
503,183
|
|
|
$
|
48,413
|
|
|
$
|
—
|
|
|
$
|
551,596
|
|
Distribution
|
668,086
|
|
|
178,915
|
|
|
(7,186
|
)
|
|
839,815
|
|
||||
Consolidated revenues, net
|
$
|
1,171,269
|
|
|
$
|
227,328
|
|
|
$
|
(7,186
|
)
|
|
$
|
1,391,411
|
|
Adjusted operating cash flow
|
$
|
487,282
|
|
|
$
|
13,165
|
|
|
$
|
(2,729
|
)
|
|
$
|
497,718
|
|
Depreciation and amortization
|
(16,022
|
)
|
|
(25,163
|
)
|
|
—
|
|
|
(41,185
|
)
|
||||
Share-based compensation expense
|
(15,370
|
)
|
|
(4,118
|
)
|
|
—
|
|
|
(19,488
|
)
|
||||
Restructuring expense
|
(67
|
)
|
|
(287
|
)
|
|
—
|
|
|
(354
|
)
|
||||
Operating income (loss)
|
$
|
455,823
|
|
|
$
|
(16,403
|
)
|
|
$
|
(2,729
|
)
|
|
$
|
436,691
|
|
Capital expenditures
|
$
|
4,414
|
|
|
$
|
19,772
|
|
|
$
|
—
|
|
|
$
|
24,186
|
|
|
Six Months Ended June 30, 2015
|
||||||||||||||
|
National
Networks
|
|
International
and Other
|
|
Inter-segment
eliminations
|
|
Consolidated
|
||||||||
Revenues, net
|
|
|
|
|
|
|
|
||||||||
Advertising
|
$
|
446,151
|
|
|
$
|
40,581
|
|
|
$
|
—
|
|
|
$
|
486,732
|
|
Distribution
|
605,304
|
|
|
178,658
|
|
|
(874
|
)
|
|
783,088
|
|
||||
Consolidated revenues, net
|
$
|
1,051,455
|
|
|
$
|
219,239
|
|
|
$
|
(874
|
)
|
|
$
|
1,269,820
|
|
Adjusted operating cash flow
|
$
|
435,811
|
|
|
$
|
14,289
|
|
|
$
|
447
|
|
|
$
|
450,547
|
|
Depreciation and amortization
|
(14,574
|
)
|
|
(26,993
|
)
|
|
—
|
|
|
(41,567
|
)
|
||||
Share-based compensation expense
|
(12,453
|
)
|
|
(3,636
|
)
|
|
—
|
|
|
(16,089
|
)
|
||||
Restructuring expense
|
(717
|
)
|
|
(2,593
|
)
|
|
—
|
|
|
(3,310
|
)
|
||||
Operating income (loss)
|
$
|
408,067
|
|
|
$
|
(18,933
|
)
|
|
$
|
447
|
|
|
$
|
389,581
|
|
Capital expenditures
|
$
|
11,484
|
|
|
$
|
21,640
|
|
|
$
|
—
|
|
|
$
|
33,124
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Inter-segment revenues
|
|
|
|
|
|
|
|
||||||||
National Networks
|
$
|
(5,991
|
)
|
|
$
|
(336
|
)
|
|
$
|
(6,936
|
)
|
|
$
|
(788
|
)
|
International and Other
|
(90
|
)
|
|
(17
|
)
|
|
(250
|
)
|
|
(86
|
)
|
||||
|
$
|
(6,081
|
)
|
|
$
|
(353
|
)
|
|
$
|
(7,186
|
)
|
|
$
|
(874
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
542,803
|
|
|
$
|
472,258
|
|
|
$
|
1,117,137
|
|
|
$
|
1,036,083
|
|
Europe
|
103,560
|
|
|
78,056
|
|
|
197,522
|
|
|
153,942
|
|
||||
Other
|
38,469
|
|
|
50,824
|
|
|
76,752
|
|
|
79,795
|
|
||||
|
$
|
684,832
|
|
|
$
|
601,138
|
|
|
$
|
1,391,411
|
|
|
$
|
1,269,820
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Property and equipment, net
|
|
|
|
||||
United States
|
$
|
89,664
|
|
|
$
|
93,951
|
|
Europe
|
60,415
|
|
|
48,043
|
|
||
Other
|
21,013
|
|
|
21,866
|
|
||
|
$
|
171,092
|
|
|
$
|
163,860
|
|
Condensed Consolidating Balance Sheet
|
|||||||||||||||||||
June 30, 2016
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
50,947
|
|
|
$
|
434,974
|
|
|
$
|
157,549
|
|
|
$
|
—
|
|
|
$
|
643,470
|
|
Accounts receivable, trade (less allowance for doubtful accounts)
|
—
|
|
|
550,996
|
|
|
175,512
|
|
|
—
|
|
|
726,508
|
|
|||||
Amounts due from related parties, net
|
—
|
|
|
441
|
|
|
—
|
|
|
—
|
|
|
441
|
|
|||||
Current portion of program rights, net
|
—
|
|
|
273,909
|
|
|
116,253
|
|
|
—
|
|
|
390,162
|
|
|||||
Prepaid expenses, other current assets and intercompany receivable
|
576
|
|
|
163,799
|
|
|
12,939
|
|
|
(89,941
|
)
|
|
87,373
|
|
|||||
Deferred tax asset, net
|
24,651
|
|
|
—
|
|
|
5,450
|
|
|
—
|
|
|
30,101
|
|
|||||
Total current assets
|
76,174
|
|
|
1,424,119
|
|
|
467,703
|
|
|
(89,941
|
)
|
|
1,878,055
|
|
|||||
Property and equipment, net of accumulated depreciation
|
—
|
|
|
88,991
|
|
|
82,101
|
|
|
—
|
|
|
171,092
|
|
|||||
Investment in affiliates
|
3,174,152
|
|
|
818,715
|
|
|
—
|
|
|
(3,992,867
|
)
|
|
—
|
|
|||||
Program rights, net
|
—
|
|
|
983,371
|
|
|
140,503
|
|
|
—
|
|
|
1,123,874
|
|
|||||
Long-term intercompany notes receivable
|
—
|
|
|
412,948
|
|
|
553
|
|
|
(413,501
|
)
|
|
—
|
|
|||||
Deferred carriage fees, net
|
—
|
|
|
49,382
|
|
|
2,307
|
|
|
—
|
|
|
51,689
|
|
|||||
Intangible assets, net
|
—
|
|
|
185,169
|
|
|
347,094
|
|
|
—
|
|
|
532,263
|
|
|||||
Goodwill
|
—
|
|
|
70,438
|
|
|
637,633
|
|
|
—
|
|
|
708,071
|
|
|||||
Other assets
|
—
|
|
|
90,802
|
|
|
109,557
|
|
|
—
|
|
|
200,359
|
|
|||||
Total assets
|
$
|
3,250,326
|
|
|
$
|
4,123,935
|
|
|
$
|
1,787,451
|
|
|
$
|
(4,496,309
|
)
|
|
$
|
4,665,403
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
92
|
|
|
$
|
59,657
|
|
|
$
|
29,306
|
|
|
$
|
—
|
|
|
$
|
89,055
|
|
Accrued liabilities and intercompany payable
|
43,325
|
|
|
148,578
|
|
|
133,460
|
|
|
(89,941
|
)
|
|
235,422
|
|
|||||
Current portion of program rights obligations
|
—
|
|
|
226,588
|
|
|
64,655
|
|
|
—
|
|
|
291,243
|
|
|||||
Deferred revenue
|
—
|
|
|
77,504
|
|
|
15,771
|
|
|
—
|
|
|
93,275
|
|
|||||
Current portion of long-term debt
|
230,551
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
230,551
|
|
|||||
Current portion of capital lease obligations
|
—
|
|
|
2,532
|
|
|
1,873
|
|
|
—
|
|
|
4,405
|
|
|||||
Total current liabilities
|
273,968
|
|
|
514,859
|
|
|
245,065
|
|
|
(89,941
|
)
|
|
943,951
|
|
|||||
Program rights obligations
|
—
|
|
|
366,822
|
|
|
18,623
|
|
|
—
|
|
|
385,445
|
|
|||||
Long-term debt
|
2,703,031
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,703,031
|
|
|||||
Capital lease obligations
|
—
|
|
|
8,028
|
|
|
30,161
|
|
|
—
|
|
|
38,189
|
|
|||||
Deferred tax liability, net
|
151,846
|
|
|
—
|
|
|
8,751
|
|
|
—
|
|
|
160,597
|
|
|||||
Other liabilities and intercompany notes payable
|
36,256
|
|
|
60,074
|
|
|
421,443
|
|
|
(413,501
|
)
|
|
104,272
|
|
|||||
Total liabilities
|
3,165,101
|
|
|
949,783
|
|
|
724,043
|
|
|
(503,442
|
)
|
|
4,335,485
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
213,856
|
|
|
—
|
|
|
213,856
|
|
|||||
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
AMC Networks stockholders’ equity
|
85,225
|
|
|
3,174,152
|
|
|
818,715
|
|
|
(3,992,867
|
)
|
|
85,225
|
|
|||||
Non-redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
30,837
|
|
|
—
|
|
|
30,837
|
|
|||||
Total stockholders’ equity
|
85,225
|
|
|
3,174,152
|
|
|
849,552
|
|
|
(3,992,867
|
)
|
|
116,062
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
3,250,326
|
|
|
$
|
4,123,935
|
|
|
$
|
1,787,451
|
|
|
$
|
(4,496,309
|
)
|
|
$
|
4,665,403
|
|
Condensed Consolidating Balance Sheet
|
|||||||||||||||||||
December 31, 2015
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
434
|
|
|
$
|
148,260
|
|
|
$
|
167,627
|
|
|
$
|
—
|
|
|
$
|
316,321
|
|
Accounts receivable, trade (less allowance for doubtful accounts)
|
—
|
|
|
538,657
|
|
|
135,954
|
|
|
—
|
|
|
674,611
|
|
|||||
Amounts due from related parties, net
|
—
|
|
|
3,818
|
|
|
244
|
|
|
—
|
|
|
4,062
|
|
|||||
Current portion of program rights, net
|
—
|
|
|
352,664
|
|
|
100,493
|
|
|
—
|
|
|
453,157
|
|
|||||
Prepaid expenses, other current assets and intercompany receivable
|
4,158
|
|
|
112,456
|
|
|
12,322
|
|
|
(55,947
|
)
|
|
72,989
|
|
|||||
Deferred tax asset, net
|
14,039
|
|
|
—
|
|
|
2,159
|
|
|
—
|
|
|
16,198
|
|
|||||
Total current assets
|
18,631
|
|
|
1,155,855
|
|
|
418,799
|
|
|
(55,947
|
)
|
|
1,537,338
|
|
|||||
Property and equipment, net
|
—
|
|
|
93,007
|
|
|
70,853
|
|
|
—
|
|
|
163,860
|
|
|||||
Investment in affiliates
|
2,797,938
|
|
|
845,069
|
|
|
—
|
|
|
(3,643,007
|
)
|
|
—
|
|
|||||
Program rights, net
|
—
|
|
|
889,756
|
|
|
137,638
|
|
|
—
|
|
|
1,027,394
|
|
|||||
Long-term intercompany notes receivable
|
—
|
|
|
400,163
|
|
|
676
|
|
|
(400,839
|
)
|
|
—
|
|
|||||
Deferred carriage fees, net
|
—
|
|
|
47,437
|
|
|
2,632
|
|
|
—
|
|
|
50,069
|
|
|||||
Intangible assets, net
|
—
|
|
|
190,041
|
|
|
359,139
|
|
|
—
|
|
|
549,180
|
|
|||||
Goodwill
|
—
|
|
|
71,700
|
|
|
664,575
|
|
|
—
|
|
|
736,275
|
|
|||||
Other assets
|
1,449
|
|
|
100,620
|
|
|
98,730
|
|
|
—
|
|
|
200,799
|
|
|||||
Total assets
|
$
|
2,818,018
|
|
|
$
|
3,793,648
|
|
|
$
|
1,753,042
|
|
|
$
|
(4,099,793
|
)
|
|
$
|
4,264,915
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
6
|
|
|
$
|
44,152
|
|
|
$
|
26,990
|
|
|
$
|
—
|
|
|
$
|
71,148
|
|
Accrued liabilities and intercompany payable
|
30,857
|
|
|
181,377
|
|
|
97,799
|
|
|
(55,947
|
)
|
|
254,086
|
|
|||||
Current portion of program rights obligations
|
—
|
|
|
225,375
|
|
|
64,522
|
|
|
—
|
|
|
289,897
|
|
|||||
Deferred revenue
|
—
|
|
|
54,921
|
|
|
9,308
|
|
|
—
|
|
|
64,229
|
|
|||||
Current portion of long-term debt
|
148,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148,000
|
|
|||||
Current portion of capital lease obligations
|
—
|
|
|
2,393
|
|
|
1,168
|
|
|
—
|
|
|
3,561
|
|
|||||
Total current liabilities
|
178,863
|
|
|
508,218
|
|
|
199,787
|
|
|
(55,947
|
)
|
|
830,921
|
|
|||||
Program rights obligations
|
—
|
|
|
415,419
|
|
|
25,172
|
|
|
—
|
|
|
440,591
|
|
|||||
Long-term debt
|
2,519,808
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,519,808
|
|
|||||
Capital lease obligations
|
—
|
|
|
9,268
|
|
|
20,511
|
|
|
—
|
|
|
29,779
|
|
|||||
Deferred tax liability, net
|
126,415
|
|
|
—
|
|
|
10,818
|
|
|
—
|
|
|
137,233
|
|
|||||
Other liabilities and intercompany notes payable
|
32,209
|
|
|
62,805
|
|
|
409,355
|
|
|
(400,839
|
)
|
|
103,530
|
|
|||||
Total liabilities
|
2,857,295
|
|
|
995,710
|
|
|
665,643
|
|
|
(456,786
|
)
|
|
4,061,862
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
211,691
|
|
|
—
|
|
|
211,691
|
|
|||||
Stockholders’ deficiency:
|
|
|
|
|
|
|
|
|
|
||||||||||
AMC Networks stockholders’ (deficiency) equity
|
(39,277
|
)
|
|
2,797,938
|
|
|
845,069
|
|
|
(3,643,007
|
)
|
|
(39,277
|
)
|
|||||
Non-redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
30,639
|
|
|
—
|
|
|
30,639
|
|
|||||
Total stockholders’ (deficiency) equity
|
(39,277
|
)
|
|
2,797,938
|
|
|
875,708
|
|
|
(3,643,007
|
)
|
|
(8,638
|
)
|
|||||
Total liabilities and stockholders’ (deficiency) equity
|
$
|
2,818,018
|
|
|
$
|
3,793,648
|
|
|
$
|
1,753,042
|
|
|
$
|
(4,099,793
|
)
|
|
$
|
4,264,915
|
|
Condensed Consolidating Statement of Income
|
|||||||||||||||||||
Three Months Ended June 30, 2016
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues, net
|
$
|
—
|
|
|
$
|
519,955
|
|
|
$
|
167,267
|
|
|
$
|
(2,390
|
)
|
|
$
|
684,832
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Technical and operating (excluding depreciation and amortization)
|
—
|
|
|
223,254
|
|
|
82,932
|
|
|
(694
|
)
|
|
305,492
|
|
|||||
Selling, general and administrative
|
—
|
|
|
130,383
|
|
|
50,433
|
|
|
(1,450
|
)
|
|
179,366
|
|
|||||
Restructuring expense
|
—
|
|
|
112
|
|
|
277
|
|
|
—
|
|
|
389
|
|
|||||
Depreciation and amortization
|
—
|
|
|
9,952
|
|
|
11,601
|
|
|
—
|
|
|
21,553
|
|
|||||
Total operating expenses
|
—
|
|
|
363,701
|
|
|
145,243
|
|
|
(2,144
|
)
|
|
506,800
|
|
|||||
Operating income
|
—
|
|
|
156,254
|
|
|
22,024
|
|
|
(246
|
)
|
|
178,032
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
(30,172
|
)
|
|
9,538
|
|
|
(9,702
|
)
|
|
—
|
|
|
(30,336
|
)
|
|||||
Share of affiliates’ income (loss)
|
142,131
|
|
|
(20,997
|
)
|
|
—
|
|
|
(121,134
|
)
|
|
—
|
|
|||||
Loss on extinguishment of debt
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|||||
Miscellaneous, net
|
(170
|
)
|
|
(190
|
)
|
|
(24,796
|
)
|
|
246
|
|
|
(24,910
|
)
|
|||||
Total other income (expense)
|
111,780
|
|
|
(11,649
|
)
|
|
(34,498
|
)
|
|
(120,888
|
)
|
|
(55,255
|
)
|
|||||
Income (loss) from operations before income taxes
|
111,780
|
|
|
144,605
|
|
|
(12,474
|
)
|
|
(121,134
|
)
|
|
122,777
|
|
|||||
Income tax expense
|
(34,605
|
)
|
|
(2,474
|
)
|
|
(2,311
|
)
|
|
—
|
|
|
(39,390
|
)
|
|||||
Net income (loss) including noncontrolling interests
|
77,175
|
|
|
142,131
|
|
|
(14,785
|
)
|
|
(121,134
|
)
|
|
83,387
|
|
|||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(6,212
|
)
|
|
—
|
|
|
(6,212
|
)
|
|||||
Net income (loss) attributable to AMC Networks’ stockholders
|
$
|
77,175
|
|
|
$
|
142,131
|
|
|
$
|
(20,997
|
)
|
|
$
|
(121,134
|
)
|
|
$
|
77,175
|
|
Condensed Consolidating Statement of Income
|
|||||||||||||||||||
Three Months Ended June 30, 2015
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues, net
|
$
|
—
|
|
|
$
|
464,368
|
|
|
$
|
136,948
|
|
|
$
|
(178
|
)
|
|
$
|
601,138
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Technical and operating (excluding depreciation and amortization)
|
—
|
|
|
189,500
|
|
|
70,401
|
|
|
(171
|
)
|
|
259,730
|
|
|||||
Selling, general and administrative
|
—
|
|
|
114,080
|
|
|
44,819
|
|
|
(19
|
)
|
|
158,880
|
|
|||||
Restructuring expense
|
—
|
|
|
557
|
|
|
2,097
|
|
|
—
|
|
|
2,654
|
|
|||||
Depreciation and amortization
|
—
|
|
|
9,203
|
|
|
11,837
|
|
|
—
|
|
|
21,040
|
|
|||||
Total operating expenses
|
—
|
|
|
313,340
|
|
|
129,154
|
|
|
(190
|
)
|
|
442,304
|
|
|||||
Operating income
|
—
|
|
|
151,028
|
|
|
7,794
|
|
|
12
|
|
|
158,834
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
(20,020
|
)
|
|
(2,325
|
)
|
|
(9,434
|
)
|
|
—
|
|
|
(31,779
|
)
|
|||||
Share of affiliates' income
|
126,287
|
|
|
3,368
|
|
|
—
|
|
|
(129,655
|
)
|
|
—
|
|
|||||
Miscellaneous, net
|
23,961
|
|
|
(23,601
|
)
|
|
11,036
|
|
|
(12
|
)
|
|
11,384
|
|
|||||
Total other income (expense)
|
130,228
|
|
|
(22,558
|
)
|
|
1,602
|
|
|
(129,667
|
)
|
|
(20,395
|
)
|
|||||
Income from operations before income taxes
|
130,228
|
|
|
128,470
|
|
|
9,396
|
|
|
(129,655
|
)
|
|
138,439
|
|
|||||
Income tax expense
|
(47,219
|
)
|
|
(2,183
|
)
|
|
(1,595
|
)
|
|
—
|
|
|
(50,997
|
)
|
|||||
Net income including noncontrolling interests
|
83,009
|
|
|
126,287
|
|
|
7,801
|
|
|
(129,655
|
)
|
|
87,442
|
|
|||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(4,433
|
)
|
|
—
|
|
|
(4,433
|
)
|
|||||
Net income attributable to AMC Networks’ stockholders
|
$
|
83,009
|
|
|
$
|
126,287
|
|
|
$
|
3,368
|
|
|
$
|
(129,655
|
)
|
|
$
|
83,009
|
|
Condensed Consolidating Statement of Income
|
|||||||||||||||||||
Six Months Ended June 30, 2016
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues, net
|
$
|
—
|
|
|
$
|
1,074,484
|
|
|
$
|
321,801
|
|
|
$
|
(4,874
|
)
|
|
$
|
1,391,411
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Technical and operating (excluding depreciation and amortization)
|
—
|
|
|
414,032
|
|
|
163,882
|
|
|
(1,377
|
)
|
|
576,537
|
|
|||||
Selling, general and administrative
|
—
|
|
|
245,894
|
|
|
94,004
|
|
|
(3,254
|
)
|
|
336,644
|
|
|||||
Restructuring expense
|
—
|
|
|
42
|
|
|
312
|
|
|
—
|
|
|
354
|
|
|||||
Depreciation and amortization
|
—
|
|
|
20,027
|
|
|
21,158
|
|
|
—
|
|
|
41,185
|
|
|||||
Total operating expenses
|
—
|
|
|
679,995
|
|
|
279,356
|
|
|
(4,631
|
)
|
|
954,720
|
|
|||||
Operating income
|
—
|
|
|
394,489
|
|
|
42,445
|
|
|
(243
|
)
|
|
436,691
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
(60,742
|
)
|
|
18,831
|
|
|
(19,453
|
)
|
|
—
|
|
|
(61,364
|
)
|
|||||
Share of affiliates’ income (loss)
|
388,178
|
|
|
(20,145
|
)
|
|
—
|
|
|
(368,033
|
)
|
|
—
|
|
|||||
Loss on extinguishment of debt
|
(48,343
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48,343
|
)
|
|||||
Miscellaneous, net
|
(251
|
)
|
|
(213
|
)
|
|
(25,378
|
)
|
|
243
|
|
|
(25,599
|
)
|
|||||
Total other income (expense)
|
278,842
|
|
|
(1,527
|
)
|
|
(44,831
|
)
|
|
(367,790
|
)
|
|
(135,306
|
)
|
|||||
Income (loss) from operations before income taxes
|
278,842
|
|
|
392,962
|
|
|
(2,386
|
)
|
|
(368,033
|
)
|
|
301,385
|
|
|||||
Income tax expense
|
(88,222
|
)
|
|
(4,784
|
)
|
|
(4,927
|
)
|
|
—
|
|
|
(97,933
|
)
|
|||||
Net income (loss) including noncontrolling interests
|
190,620
|
|
|
388,178
|
|
|
(7,313
|
)
|
|
(368,033
|
)
|
|
203,452
|
|
|||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(12,832
|
)
|
|
—
|
|
|
(12,832
|
)
|
|||||
Net income (loss) attributable to AMC Networks’ stockholders
|
$
|
190,620
|
|
|
$
|
388,178
|
|
|
$
|
(20,145
|
)
|
|
$
|
(368,033
|
)
|
|
$
|
190,620
|
|
Condensed Consolidating Statement of Income
|
|||||||||||||||||||
Six Months Ended June 30, 2015
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues, net
|
$
|
—
|
|
|
$
|
1,003,811
|
|
|
$
|
266,412
|
|
|
$
|
(403
|
)
|
|
$
|
1,269,820
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Technical and operating (excluding depreciation and amortization)
|
—
|
|
|
386,258
|
|
|
136,022
|
|
|
(377
|
)
|
|
521,903
|
|
|||||
Selling, general and administrative
|
—
|
|
|
232,567
|
|
|
80,910
|
|
|
(18
|
)
|
|
313,459
|
|
|||||
Restructuring expense
|
—
|
|
|
672
|
|
|
2,638
|
|
|
—
|
|
|
3,310
|
|
|||||
Depreciation and amortization
|
—
|
|
|
18,170
|
|
|
23,397
|
|
|
—
|
|
|
41,567
|
|
|||||
Total operating expenses
|
—
|
|
|
637,667
|
|
|
242,967
|
|
|
(395
|
)
|
|
880,239
|
|
|||||
Operating income
|
—
|
|
|
366,144
|
|
|
23,445
|
|
|
(8
|
)
|
|
389,581
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
(40,374
|
)
|
|
(12,790
|
)
|
|
(11,202
|
)
|
|
—
|
|
|
(64,366
|
)
|
|||||
Share of affiliates' income
|
402,272
|
|
|
7,756
|
|
|
—
|
|
|
(410,028
|
)
|
|
—
|
|
|||||
Miscellaneous, net
|
(52,352
|
)
|
|
45,712
|
|
|
7,786
|
|
|
8
|
|
|
1,154
|
|
|||||
Total other income (expense)
|
309,546
|
|
|
40,678
|
|
|
(3,416
|
)
|
|
(410,020
|
)
|
|
(63,212
|
)
|
|||||
Income from operations before income taxes
|
309,546
|
|
|
406,822
|
|
|
20,029
|
|
|
(410,028
|
)
|
|
326,369
|
|
|||||
Income tax expense
|
(105,617
|
)
|
|
(4,550
|
)
|
|
(2,084
|
)
|
|
—
|
|
|
(112,251
|
)
|
|||||
Net income including noncontrolling interests
|
203,929
|
|
|
402,272
|
|
|
17,945
|
|
|
(410,028
|
)
|
|
214,118
|
|
|||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(10,189
|
)
|
|
—
|
|
|
(10,189
|
)
|
|||||
Net income attributable to AMC Networks’ stockholders
|
$
|
203,929
|
|
|
$
|
402,272
|
|
|
$
|
7,756
|
|
|
$
|
(410,028
|
)
|
|
$
|
203,929
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||
Three Months Ended June 30, 2016
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income including noncontrolling interest
|
$
|
77,175
|
|
|
$
|
142,131
|
|
|
$
|
(14,785
|
)
|
|
$
|
(121,134
|
)
|
|
$
|
83,387
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustment
|
(18,389
|
)
|
|
—
|
|
|
(18,389
|
)
|
|
18,389
|
|
|
(18,389
|
)
|
|||||
Unrealized loss on interest rate swaps
|
(765
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(765
|
)
|
|||||
Other comprehensive (loss) income, before income taxes
|
(19,154
|
)
|
|
—
|
|
|
(18,389
|
)
|
|
18,389
|
|
|
(19,154
|
)
|
|||||
Income tax expense
|
(8,312
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,312
|
)
|
|||||
Other comprehensive (loss) income, net of income taxes
|
(27,466
|
)
|
|
—
|
|
|
(18,389
|
)
|
|
18,389
|
|
|
(27,466
|
)
|
|||||
Comprehensive income
|
49,709
|
|
|
142,131
|
|
|
(33,174
|
)
|
|
(102,745
|
)
|
|
55,921
|
|
|||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(4,424
|
)
|
|
—
|
|
|
(4,424
|
)
|
|||||
Comprehensive income attributable to AMC Networks’ stockholders
|
$
|
49,709
|
|
|
$
|
142,131
|
|
|
$
|
(37,598
|
)
|
|
$
|
(102,745
|
)
|
|
$
|
51,497
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||
Three Months Ended June 30, 2015
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income including noncontrolling interest
|
$
|
83,009
|
|
|
$
|
126,287
|
|
|
$
|
7,801
|
|
|
$
|
(129,655
|
)
|
|
$
|
87,442
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustment
|
7,591
|
|
|
7,572
|
|
|
16,528
|
|
|
(7,572
|
)
|
|
24,119
|
|
|||||
Unrealized gain on interest rate swaps
|
674
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
674
|
|
|||||
Other comprehensive income (loss), before income taxes
|
8,265
|
|
|
7,572
|
|
|
16,528
|
|
|
(7,572
|
)
|
|
24,793
|
|
|||||
Income tax benefit
|
5,943
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,943
|
|
|||||
Other comprehensive income, net of income taxes
|
14,208
|
|
|
7,572
|
|
|
16,528
|
|
|
(7,572
|
)
|
|
30,736
|
|
|||||
Comprehensive income
|
97,217
|
|
|
133,859
|
|
|
24,329
|
|
|
(137,227
|
)
|
|
118,178
|
|
|||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(4,433
|
)
|
|
—
|
|
|
(4,433
|
)
|
|||||
Comprehensive income attributable to AMC Networks' stockholders
|
$
|
97,217
|
|
|
$
|
133,859
|
|
|
$
|
19,896
|
|
|
$
|
(137,227
|
)
|
|
$
|
113,745
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||
Six Months Ended June 30, 2016
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income including noncontrolling interest
|
$
|
190,620
|
|
|
$
|
388,178
|
|
|
$
|
(7,313
|
)
|
|
$
|
(368,033
|
)
|
|
$
|
203,452
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustment
|
(3,004
|
)
|
|
—
|
|
|
(3,004
|
)
|
|
3,004
|
|
|
(3,004
|
)
|
|||||
Unrealized loss on interest rate swaps
|
(2,343
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,343
|
)
|
|||||
Other comprehensive (loss) income, before income taxes
|
(5,347
|
)
|
|
—
|
|
|
(3,004
|
)
|
|
3,004
|
|
|
(5,347
|
)
|
|||||
Income tax expense
|
(10,211
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,211
|
)
|
|||||
Other comprehensive (loss) income, net of income taxes
|
(15,558
|
)
|
|
—
|
|
|
(3,004
|
)
|
|
3,004
|
|
|
(15,558
|
)
|
|||||
Comprehensive income (loss)
|
175,062
|
|
|
388,178
|
|
|
(10,317
|
)
|
|
(365,029
|
)
|
|
187,894
|
|
|||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(11,456
|
)
|
|
—
|
|
|
(11,456
|
)
|
|||||
Comprehensive income (loss) attributable to AMC Networks’ stockholders
|
$
|
175,062
|
|
|
$
|
388,178
|
|
|
$
|
(21,773
|
)
|
|
$
|
(365,029
|
)
|
|
$
|
176,438
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||
Six Months Ended June 30, 2015
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income including noncontrolling interest
|
$
|
203,929
|
|
|
$
|
402,272
|
|
|
$
|
17,945
|
|
|
$
|
(410,028
|
)
|
|
$
|
214,118
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustment
|
(64,120
|
)
|
|
(64,120
|
)
|
|
27,414
|
|
|
64,120
|
|
|
(36,706
|
)
|
|||||
Unrealized gain on interest rate swaps
|
1,370
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,370
|
|
|||||
Other comprehensive (loss) income, before income taxes
|
(62,750
|
)
|
|
(64,120
|
)
|
|
27,414
|
|
|
64,120
|
|
|
(35,336
|
)
|
|||||
Income tax benefit
|
3,664
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,664
|
|
|||||
Other comprehensive (loss) income, net of income taxes
|
(59,086
|
)
|
|
(64,120
|
)
|
|
27,414
|
|
|
64,120
|
|
|
(31,672
|
)
|
|||||
Comprehensive income
|
144,843
|
|
|
338,152
|
|
|
45,359
|
|
|
(345,908
|
)
|
|
182,446
|
|
|||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(10,189
|
)
|
|
—
|
|
|
(10,189
|
)
|
|||||
Comprehensive income attributable to AMC Networks' stockholders
|
$
|
144,843
|
|
|
$
|
338,152
|
|
|
$
|
35,170
|
|
|
$
|
(345,908
|
)
|
|
$
|
172,257
|
|
Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||||
Six Months Ended June 30, 2016
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
$
|
277,785
|
|
|
$
|
306,120
|
|
|
$
|
16,349
|
|
|
$
|
(370,690
|
)
|
|
$
|
229,564
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(15,767
|
)
|
|
(8,419
|
)
|
|
—
|
|
|
(24,186
|
)
|
|||||
Payments for acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(354
|
)
|
|
—
|
|
|
(354
|
)
|
|||||
(Increase) decrease to investment in affiliates
|
(359,483
|
)
|
|
(31,090
|
)
|
|
48,542
|
|
|
342,031
|
|
|
—
|
|
|||||
Net cash used in investing activities
|
(359,483
|
)
|
|
(46,857
|
)
|
|
39,769
|
|
|
342,031
|
|
|
(24,540
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from the issuance of long-term debt
|
982,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
982,500
|
|
|||||
Principal payments on long-term debt
|
(728,449
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(728,449
|
)
|
|||||
Premium and fees paid on extinguishment of debt
|
(39,188
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39,188
|
)
|
|||||
Payments for financing costs
|
(2,070
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,070
|
)
|
|||||
Deemed repurchases of restricted stock/units
|
(10,834
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,834
|
)
|
|||||
Purchase of treasury stock
|
(48,227
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48,227
|
)
|
|||||
Proceeds from stock option exercises
|
1,216
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,216
|
|
|||||
Excess tax benefits from share-based compensation arrangements
|
781
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
781
|
|
|||||
Principal payments on capital lease obligations
|
—
|
|
|
(1,208
|
)
|
|
(867
|
)
|
|
—
|
|
|
(2,075
|
)
|
|||||
Distributions to noncontrolling interest
|
—
|
|
|
—
|
|
|
(8,977
|
)
|
|
—
|
|
|
(8,977
|
)
|
|||||
Net cash provided by (used in) financing activities
|
155,729
|
|
|
(1,208
|
)
|
|
(9,844
|
)
|
|
—
|
|
|
144,677
|
|
|||||
Net increase (decrease) in cash and cash equivalents from operations
|
74,031
|
|
|
258,055
|
|
|
46,274
|
|
|
(28,659
|
)
|
|
349,701
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(23,518
|
)
|
|
28,659
|
|
|
(56,352
|
)
|
|
28,659
|
|
|
(22,552
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
434
|
|
|
148,260
|
|
|
167,627
|
|
|
—
|
|
|
316,321
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
50,947
|
|
|
$
|
434,974
|
|
|
$
|
157,549
|
|
|
$
|
—
|
|
|
$
|
643,470
|
|
Condensed Consolidated Statement of Cash Flows
|
|||||||||||||||||||
Six Months Ended June 30, 2015
|
|||||||||||||||||||
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
$
|
238,455
|
|
|
$
|
169
|
|
|
$
|
362,865
|
|
|
$
|
(411,248
|
)
|
|
$
|
190,241
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(3
|
)
|
|
(22,875
|
)
|
|
(10,246
|
)
|
|
—
|
|
|
(33,124
|
)
|
|||||
Payments for acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(6,545
|
)
|
|
—
|
|
|
(6,545
|
)
|
|||||
Purchases of investments
|
—
|
|
|
(369
|
)
|
|
(23,881
|
)
|
|
—
|
|
|
(24,250
|
)
|
|||||
(Increase) decrease to investment in affiliates
|
(134,957
|
)
|
|
127,384
|
|
|
(339,452
|
)
|
|
347,025
|
|
|
—
|
|
|||||
Net cash (used in) provided by investing activities
|
(134,960
|
)
|
|
104,140
|
|
|
(380,124
|
)
|
|
347,025
|
|
|
(63,919
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal payments on long-term debt
|
(37,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37,000
|
)
|
|||||
Payment of Promissory Note
|
—
|
|
|
—
|
|
|
(40,000
|
)
|
|
—
|
|
|
(40,000
|
)
|
|||||
Deemed repurchases of restricted stock/units
|
(14,320
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,320
|
)
|
|||||
Proceeds from stock option exercises
|
1,031
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,031
|
|
|||||
Excess tax benefits from share-based compensation arrangements
|
4,038
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,038
|
|
|||||
Principal payments on capital lease obligations
|
—
|
|
|
(1,097
|
)
|
|
(352
|
)
|
|
—
|
|
|
(1,449
|
)
|
|||||
Distributions to noncontrolling member
|
—
|
|
|
—
|
|
|
(3,154
|
)
|
|
—
|
|
|
(3,154
|
)
|
|||||
Contributions from noncontrolling member
|
—
|
|
|
—
|
|
|
1,373
|
|
|
—
|
|
|
1,373
|
|
|||||
Net cash (used in) provided by financing activities
|
(46,251
|
)
|
|
(1,097
|
)
|
|
(42,133
|
)
|
|
—
|
|
|
(89,481
|
)
|
|||||
Net increase in cash and cash equivalents from operations
|
57,244
|
|
|
103,212
|
|
|
(59,392
|
)
|
|
(64,223
|
)
|
|
36,841
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(57,931
|
)
|
|
(64,223
|
)
|
|
60,783
|
|
|
64,223
|
|
|
2,852
|
|
|||||
Cash and cash equivalents at beginning of period
|
1,581
|
|
|
83,676
|
|
|
116,110
|
|
|
—
|
|
|
201,367
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
894
|
|
|
$
|
122,665
|
|
|
$
|
117,501
|
|
|
$
|
—
|
|
|
$
|
241,060
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
•
|
our ability to maintain and renew distribution or affiliation agreements with video programming distributors;
|
•
|
the cost of, and our ability to obtain or produce, desirable programming content for our networks, other forms of distribution, including digital and licensing in international markets, as well as our independent film distribution businesses;
|
•
|
market demand for our owned original programming and our independent film content;
|
•
|
changes in laws or treaties relating to taxation, or the interpretation thereof, in the U.S. or in the countries in which we operate;
|
•
|
our ability to successfully acquire new businesses and, if acquired, to integrate, and implement our plan with respect to businesses we acquire;
|
•
|
problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire;
|
•
|
financial community and rating agency perceptions of our business, operations, financial condition and the industry in which we operate;
|
•
|
events that are outside our control, such as political unrest in international markets, terrorist attacks, natural disasters and other similar events; and
|
•
|
the factors described under Item 1A, “Risk Factors” in our
2015
Annual Report on Form 10-K (the “
2015
Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”).
|
•
|
National Networks:
Principally includes activities of our programming businesses which include our
five
programming networks distributed in the U.S. and Canada. These programming networks include AMC, WE tv, BBC AMERICA, IFC and SundanceTV in the U.S.; and AMC, IFC, and Sundance Channel in Canada. Our programming businesses within the National Networks segment may also sell rights worldwide to their owned original programming. The National Networks operating segment also includes AMC Networks Broadcasting & Technology, the technical services business, which primarily services most of the programming networks included in the National Networks segment.
|
•
|
International and Other:
Principally includes AMC Networks International (“AMCNI”), the Company’s international programming businesses consisting of a portfolio of channels in Europe, Latin America, the Middle East and parts of Asia and Africa; IFC Films, the Company’s independent film distribution business; AMCNI - DMC, the broadcast solutions unit of certain networks of AMCNI and third-party networks, and various developing on-line content distribution initiatives.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues, net
|
|
|
|
|
|
|
|
||||||||
National Networks
|
$
|
572,633
|
|
|
$
|
488,608
|
|
|
$
|
1,171,269
|
|
|
$
|
1,051,455
|
|
International and Other
|
118,280
|
|
|
112,883
|
|
|
227,328
|
|
|
219,239
|
|
||||
Inter-segment eliminations
|
(6,081
|
)
|
|
(353
|
)
|
|
(7,186
|
)
|
|
(874
|
)
|
||||
Consolidated revenues, net
|
$
|
684,832
|
|
|
$
|
601,138
|
|
|
$
|
1,391,411
|
|
|
$
|
1,269,820
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
||||||||
National Networks
|
$
|
189,090
|
|
|
$
|
167,647
|
|
|
$
|
455,823
|
|
|
$
|
408,067
|
|
International and Other
|
(7,819
|
)
|
|
(8,979
|
)
|
|
(16,403
|
)
|
|
(18,933
|
)
|
||||
Inter-segment eliminations
|
(3,239
|
)
|
|
166
|
|
|
(2,729
|
)
|
|
447
|
|
||||
Consolidated operating income
|
$
|
178,032
|
|
|
$
|
158,834
|
|
|
$
|
436,691
|
|
|
$
|
389,581
|
|
AOCF
|
|
|
|
|
|
|
|
||||||||
National Networks
|
$
|
206,328
|
|
|
$
|
182,553
|
|
|
$
|
487,282
|
|
|
$
|
435,811
|
|
International and Other
|
8,207
|
|
|
8,610
|
|
|
13,165
|
|
|
14,289
|
|
||||
Inter-segment eliminations
|
(3,239
|
)
|
|
166
|
|
|
(2,729
|
)
|
|
447
|
|
||||
Consolidated AOCF
|
$
|
211,296
|
|
|
$
|
191,329
|
|
|
$
|
497,718
|
|
|
$
|
450,547
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Operating income
|
$
|
178,032
|
|
|
$
|
158,834
|
|
|
$
|
436,691
|
|
|
$
|
389,581
|
|
Share-based compensation expense
|
11,322
|
|
|
8,801
|
|
|
19,488
|
|
|
16,089
|
|
||||
Restructuring expense
|
389
|
|
|
2,654
|
|
|
354
|
|
|
3,310
|
|
||||
Depreciation and amortization
|
21,553
|
|
|
21,040
|
|
|
41,185
|
|
|
41,567
|
|
||||
AOCF
|
$
|
211,296
|
|
|
$
|
191,329
|
|
|
$
|
497,718
|
|
|
$
|
450,547
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
|||||||||||||
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
684,832
|
|
|
100.0
|
%
|
|
$
|
601,138
|
|
|
100.0
|
%
|
|
$
|
83,694
|
|
|
13.9
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
305,492
|
|
|
44.6
|
|
|
259,730
|
|
|
43.2
|
|
|
45,762
|
|
|
17.6
|
|
|||
Selling, general and administrative
|
179,366
|
|
|
26.2
|
|
|
158,880
|
|
|
26.4
|
|
|
20,486
|
|
|
12.9
|
|
|||
Restructuring expense
|
389
|
|
|
0.1
|
|
|
2,654
|
|
|
0.4
|
|
|
(2,265
|
)
|
|
(85.3
|
)
|
|||
Depreciation and amortization
|
21,553
|
|
|
3.1
|
|
|
21,040
|
|
|
3.5
|
|
|
513
|
|
|
2.4
|
|
|||
Total operating expenses
|
506,800
|
|
|
74.0
|
|
|
442,304
|
|
|
73.6
|
|
|
64,496
|
|
|
14.6
|
|
|||
Operating income
|
178,032
|
|
|
26.0
|
|
|
158,834
|
|
|
26.4
|
|
|
19,198
|
|
|
12.1
|
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense, net
|
(30,336
|
)
|
|
(4.4
|
)
|
|
(31,779
|
)
|
|
(5.3
|
)
|
|
1,443
|
|
|
(4.5
|
)
|
|||
Loss on extinguishment of debt
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
n/m
|
|
|||
Miscellaneous, net
|
(24,910
|
)
|
|
(3.6
|
)
|
|
11,384
|
|
|
1.9
|
|
|
(36,294
|
)
|
|
(318.8
|
)
|
|||
Total other income (expense)
|
(55,255
|
)
|
|
(8.1
|
)
|
|
(20,395
|
)
|
|
(3.4
|
)
|
|
(34,860
|
)
|
|
170.9
|
|
|||
Net income from operations before income taxes
|
122,777
|
|
|
17.9
|
|
|
138,439
|
|
|
23.0
|
|
|
(15,662
|
)
|
|
(11.3
|
)
|
|||
Income tax expense
|
(39,390
|
)
|
|
(5.8
|
)
|
|
(50,997
|
)
|
|
(8.5
|
)
|
|
11,607
|
|
|
(22.8
|
)
|
|||
Net income including noncontrolling interests
|
83,387
|
|
|
12.2
|
|
|
87,442
|
|
|
14.5
|
|
|
(4,055
|
)
|
|
(4.6
|
)
|
|||
Net income attributable to noncontrolling interests
|
(6,212
|
)
|
|
(0.9
|
)
|
|
(4,433
|
)
|
|
(0.7
|
)
|
|
(1,779
|
)
|
|
40.1
|
|
|||
Net income attributable to AMC Networks’ stockholders
|
$
|
77,175
|
|
|
11.3
|
%
|
|
$
|
83,009
|
|
|
13.8
|
%
|
|
$
|
(5,834
|
)
|
|
(7.0
|
)%
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
|||||||||||||
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
572,633
|
|
|
100.0
|
%
|
|
$
|
488,608
|
|
|
100.0
|
%
|
|
$
|
84,025
|
|
|
17.2
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
240,116
|
|
|
41.9
|
|
|
192,188
|
|
|
39.3
|
|
|
47,928
|
|
|
24.9
|
|
|||
Selling, general and administrative
|
135,337
|
|
|
23.6
|
|
|
120,910
|
|
|
24.7
|
|
|
14,427
|
|
|
11.9
|
|
|||
Restructuring expense
|
37
|
|
|
—
|
|
|
651
|
|
|
0.1
|
|
|
(614
|
)
|
|
(94.3
|
)
|
|||
Depreciation and amortization
|
8,053
|
|
|
1.4
|
|
|
7,212
|
|
|
1.5
|
|
|
841
|
|
|
11.7
|
|
|||
Operating income
|
$
|
189,090
|
|
|
33.0
|
%
|
|
$
|
167,647
|
|
|
34.3
|
%
|
|
$
|
21,443
|
|
|
12.8
|
%
|
Share-based compensation expense
|
9,148
|
|
|
1.6
|
|
|
7,043
|
|
|
1.4
|
|
|
2,105
|
|
|
29.9
|
|
|||
Depreciation and amortization
|
8,053
|
|
|
1.4
|
|
|
7,212
|
|
|
1.5
|
|
|
841
|
|
|
11.7
|
|
|||
Restructuring expense
|
37
|
|
|
—
|
|
|
651
|
|
|
0.1
|
|
|
(614
|
)
|
|
(94.3
|
)
|
|||
AOCF
|
$
|
206,328
|
|
|
36.0
|
%
|
|
$
|
182,553
|
|
|
37.4
|
%
|
|
$
|
23,775
|
|
|
13.0
|
%
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
|||||||||||||
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
118,280
|
|
|
100.0
|
%
|
|
$
|
112,883
|
|
|
100.0
|
%
|
|
$
|
5,397
|
|
|
4.8
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
68,215
|
|
|
57.7
|
|
|
68,057
|
|
|
60.3
|
|
|
158
|
|
|
0.2
|
|
|||
Selling, general and administrative
|
44,032
|
|
|
37.2
|
|
|
37,974
|
|
|
33.6
|
|
|
6,058
|
|
|
16.0
|
|
|||
Restructuring expense
|
352
|
|
|
0.3
|
|
|
2,003
|
|
|
1.8
|
|
|
(1,651
|
)
|
|
(82.4
|
)
|
|||
Depreciation and amortization
|
13,500
|
|
|
11.4
|
|
|
13,828
|
|
|
12.2
|
|
|
(328
|
)
|
|
(2.4
|
)
|
|||
Operating loss
|
$
|
(7,819
|
)
|
|
(6.6
|
)%
|
|
$
|
(8,979
|
)
|
|
(8.0
|
)%
|
|
$
|
1,160
|
|
|
(12.9
|
)%
|
Share-based compensation expense
|
2,174
|
|
|
1.8
|
|
|
1,758
|
|
|
1.6
|
|
|
416
|
|
|
23.7
|
|
|||
Depreciation and amortization
|
13,500
|
|
|
11.4
|
|
|
13,828
|
|
|
12.2
|
|
|
(328
|
)
|
|
(2.4
|
)
|
|||
Restructuring expense
|
352
|
|
|
0.3
|
|
|
2,003
|
|
|
1.8
|
|
|
(1,651
|
)
|
|
(82.4
|
)
|
|||
AOCF
|
$
|
8,207
|
|
|
6.9
|
%
|
|
$
|
8,610
|
|
|
7.6
|
%
|
|
$
|
(403
|
)
|
|
(4.7
|
)%
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
% of
total
|
|
2015
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
National Networks
|
$
|
572,633
|
|
|
83.6
|
%
|
|
$
|
488,608
|
|
|
81.3
|
%
|
|
$
|
84,025
|
|
|
17.2
|
%
|
International and Other
|
118,280
|
|
|
17.3
|
|
|
112,883
|
|
|
18.8
|
|
|
5,397
|
|
|
4.8
|
|
|||
Inter-segment eliminations
|
(6,081
|
)
|
|
(0.9
|
)
|
|
(353
|
)
|
|
(0.1
|
)
|
|
(5,728
|
)
|
|
n/m
|
|
|||
Consolidated revenues, net
|
$
|
684,832
|
|
|
100.0
|
%
|
|
$
|
601,138
|
|
|
100.0
|
%
|
|
$
|
83,694
|
|
|
13.9
|
%
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
% of
total
|
|
2015
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
Advertising
|
$
|
239,331
|
|
|
41.8
|
%
|
|
$
|
185,712
|
|
|
38.0
|
%
|
|
$
|
53,619
|
|
|
28.9
|
%
|
Distribution
|
333,302
|
|
|
58.2
|
|
|
302,896
|
|
|
62.0
|
|
|
30,406
|
|
|
10.0
|
|
|||
|
$
|
572,633
|
|
|
100.0
|
%
|
|
$
|
488,608
|
|
|
100.0
|
%
|
|
$
|
84,025
|
|
|
17.2
|
%
|
•
|
The increase of
$53,619
in advertising revenues was driven primarily by the increase in our original programming at AMC which led to increased demand by advertisers and higher pricing at AMC, in addition to increases at BBC AMERICA, IFC and SundanceTV networks. Most of our advertising revenues vary based on the timing of our original programming series and the popularity of our programming as measured by Nielsen. Due to these factors, we expect advertising revenues to vary from quarter to quarter.
|
•
|
Distribution revenues increased
$30,406
driven by an increase of $19,220 from licensing and digital distribution revenues derived from our original programming, principally at AMC. In addition, affiliation fee revenues increased due to an increase in rates primarily at AMC as compared to the same period in 2015. Distribution revenues vary based on the impact of renewals of affiliation agreements and the timing of availability of our programming to distributors. Because of these factors, we expect distribution revenues to vary from quarter to quarter.
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
% of
total
|
|
2015
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
Advertising
|
$
|
25,564
|
|
|
21.6
|
%
|
|
$
|
21,778
|
|
|
19.3
|
%
|
|
$
|
3,786
|
|
|
17.4
|
%
|
Distribution
|
92,716
|
|
|
78.4
|
|
|
91,105
|
|
|
80.7
|
|
|
1,611
|
|
|
1.8
|
|
|||
|
$
|
118,280
|
|
|
100.0
|
%
|
|
$
|
112,883
|
|
|
100.0
|
%
|
|
$
|
5,397
|
|
|
4.8
|
%
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
240,116
|
|
|
$
|
192,188
|
|
|
$
|
47,928
|
|
|
24.9
|
%
|
International and Other
|
68,215
|
|
|
68,057
|
|
|
158
|
|
|
0.2
|
|
|||
Inter-segment eliminations
|
(2,839
|
)
|
|
(515
|
)
|
|
(2,324
|
)
|
|
n/m
|
|
|||
Total
|
$
|
305,492
|
|
|
$
|
259,730
|
|
|
$
|
45,762
|
|
|
17.6
|
%
|
Percentage of revenues, net
|
44.6
|
%
|
|
43.2
|
%
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
135,337
|
|
|
$
|
120,910
|
|
|
$
|
14,427
|
|
|
11.9
|
%
|
International and Other
|
44,032
|
|
|
37,974
|
|
|
6,058
|
|
|
16.0
|
|
|||
Inter-segment eliminations
|
(3
|
)
|
|
(4
|
)
|
|
1
|
|
|
(25.0
|
)
|
|||
Total
|
$
|
179,366
|
|
|
$
|
158,880
|
|
|
$
|
20,486
|
|
|
12.9
|
%
|
Percentage of revenues, net
|
26.2
|
%
|
|
26.4
|
%
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
8,053
|
|
|
$
|
7,212
|
|
|
$
|
841
|
|
|
11.7
|
%
|
International and Other
|
13,500
|
|
|
13,828
|
|
|
(328
|
)
|
|
(2.4
|
)
|
|||
|
$
|
21,553
|
|
|
$
|
21,040
|
|
|
$
|
513
|
|
|
2.4
|
%
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
Operating income
|
$
|
178,032
|
|
|
$
|
158,834
|
|
|
$
|
19,198
|
|
|
12.1
|
%
|
Share-based compensation expense
|
11,322
|
|
|
8,801
|
|
|
2,521
|
|
|
28.6
|
|
|||
Restructuring expense
|
389
|
|
|
2,654
|
|
|
(2,265
|
)
|
|
(85.3
|
)
|
|||
Depreciation and amortization
|
21,553
|
|
|
21,040
|
|
|
513
|
|
|
2.4
|
|
|||
Consolidated AOCF
|
$
|
211,296
|
|
|
$
|
191,329
|
|
|
$
|
19,967
|
|
|
10.4
|
%
|
|
Three Months Ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
206,328
|
|
|
$
|
182,553
|
|
|
$
|
23,775
|
|
|
13.0
|
%
|
International and Other
|
8,207
|
|
|
8,610
|
|
|
(403
|
)
|
|
(4.7
|
)
|
|||
Inter-segment eliminations
|
(3,239
|
)
|
|
166
|
|
|
(3,405
|
)
|
|
n/m
|
|
|||
AOCF
|
$
|
211,296
|
|
|
$
|
191,329
|
|
|
$
|
19,967
|
|
|
10.4
|
%
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
|||||||||||||
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
1,391,411
|
|
|
100.0
|
%
|
|
$
|
1,269,820
|
|
|
100.0
|
%
|
|
$
|
121,591
|
|
|
9.6
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
576,537
|
|
|
41.4
|
|
|
521,903
|
|
|
41.1
|
|
|
54,634
|
|
|
10.5
|
|
|||
Selling, general and administrative
|
336,644
|
|
|
24.2
|
|
|
313,459
|
|
|
24.7
|
|
|
23,185
|
|
|
7.4
|
|
|||
Restructuring expense
|
354
|
|
|
—
|
|
|
3,310
|
|
|
0.3
|
|
|
(2,956
|
)
|
|
(89.3
|
)
|
|||
Depreciation and amortization
|
41,185
|
|
|
3.0
|
|
|
41,567
|
|
|
3.3
|
|
|
(382
|
)
|
|
(0.9
|
)
|
|||
Total operating expenses
|
954,720
|
|
|
68.6
|
|
|
880,239
|
|
|
69.3
|
|
|
74,481
|
|
|
8.5
|
|
|||
Operating income
|
436,691
|
|
|
31.4
|
|
|
389,581
|
|
|
30.7
|
|
|
47,110
|
|
|
12.1
|
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense, net
|
(61,364
|
)
|
|
(4.4
|
)
|
|
(64,366
|
)
|
|
(5.1
|
)
|
|
3,002
|
|
|
(4.7
|
)
|
|||
Loss on extinguishment of debt
|
(48,343
|
)
|
|
(3.5
|
)
|
|
—
|
|
|
—
|
|
|
(48,343
|
)
|
|
n/m
|
|
|||
Miscellaneous, net
|
(25,599
|
)
|
|
(1.8
|
)
|
|
1,154
|
|
|
0.1
|
|
|
(26,753
|
)
|
|
n/m
|
|
|||
Total other income (expense)
|
(135,306
|
)
|
|
(9.7
|
)
|
|
(63,212
|
)
|
|
(5.0
|
)
|
|
(72,094
|
)
|
|
114.1
|
|
|||
Net income from operations before income taxes
|
301,385
|
|
|
21.7
|
|
|
326,369
|
|
|
25.7
|
|
|
(24,984
|
)
|
|
(7.7
|
)
|
|||
Income tax expense
|
(97,933
|
)
|
|
(7.0
|
)
|
|
(112,251
|
)
|
|
(8.8
|
)
|
|
14,318
|
|
|
(12.8
|
)
|
|||
Net income including noncontrolling interests
|
203,452
|
|
|
14.6
|
|
|
214,118
|
|
|
16.9
|
|
|
(10,666
|
)
|
|
(5.0
|
)
|
|||
Net income attributable to noncontrolling interests
|
(12,832
|
)
|
|
(0.9
|
)
|
|
(10,189
|
)
|
|
(0.8
|
)
|
|
(2,643
|
)
|
|
25.9
|
|
|||
Net income attributable to AMC Networks’ stockholders
|
$
|
190,620
|
|
|
13.7
|
%
|
|
$
|
203,929
|
|
|
16.1
|
%
|
|
$
|
(13,309
|
)
|
|
(6.5
|
)%
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
|||||||||||||
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
1,171,269
|
|
|
100.0
|
%
|
|
$
|
1,051,455
|
|
|
100.0
|
%
|
|
$
|
119,814
|
|
|
11.4
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
446,255
|
|
|
38.1
|
|
|
389,112
|
|
|
37.0
|
|
|
57,143
|
|
|
14.7
|
|
|||
Selling, general and administrative
|
253,102
|
|
|
21.6
|
|
|
238,985
|
|
|
22.7
|
|
|
14,117
|
|
|
5.9
|
|
|||
Restructuring expense
|
67
|
|
|
—
|
|
|
717
|
|
|
0.1
|
|
|
(650
|
)
|
|
(90.7
|
)
|
|||
Depreciation and amortization
|
16,022
|
|
|
1.4
|
|
|
14,574
|
|
|
1.4
|
|
|
1,448
|
|
|
9.9
|
|
|||
Operating income
|
$
|
455,823
|
|
|
38.9
|
%
|
|
$
|
408,067
|
|
|
38.8
|
%
|
|
$
|
47,756
|
|
|
11.7
|
%
|
Share-based compensation expense
|
15,370
|
|
|
1.3
|
|
|
12,453
|
|
|
1.2
|
|
|
2,917
|
|
|
23.4
|
|
|||
Depreciation and amortization
|
16,022
|
|
|
1.4
|
|
|
14,574
|
|
|
1.4
|
|
|
1,448
|
|
|
9.9
|
|
|||
Restructuring expense
|
67
|
|
|
—
|
|
|
717
|
|
|
0.1
|
|
|
(650
|
)
|
|
(90.7
|
)
|
|||
AOCF
|
$
|
487,282
|
|
|
41.6
|
%
|
|
$
|
435,811
|
|
|
41.4
|
%
|
|
$
|
51,471
|
|
|
11.8
|
%
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
|||||||||||||
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
227,328
|
|
|
100.0
|
%
|
|
$
|
219,239
|
|
|
100.0
|
%
|
|
$
|
8,089
|
|
|
3.7
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
134,731
|
|
|
59.3
|
|
|
134,096
|
|
|
61.2
|
|
|
635
|
|
|
0.5
|
|
|||
Selling, general and administrative
|
83,550
|
|
|
36.8
|
|
|
74,490
|
|
|
34.0
|
|
|
9,060
|
|
|
12.2
|
|
|||
Restructuring expense
|
287
|
|
|
0.1
|
|
|
2,593
|
|
|
1.2
|
|
|
(2,306
|
)
|
|
(88.9
|
)
|
|||
Depreciation and amortization
|
25,163
|
|
|
11.1
|
|
|
26,993
|
|
|
12.3
|
|
|
(1,830
|
)
|
|
(6.8
|
)
|
|||
Operating loss
|
$
|
(16,403
|
)
|
|
(7.2
|
)%
|
|
$
|
(18,933
|
)
|
|
(8.6
|
)%
|
|
$
|
2,530
|
|
|
(13.4
|
)%
|
Share-based compensation expense
|
4,118
|
|
|
1.8
|
|
|
3,636
|
|
|
1.7
|
|
|
482
|
|
|
13.3
|
|
|||
Depreciation and amortization
|
25,163
|
|
|
11.1
|
|
|
26,993
|
|
|
12.3
|
|
|
(1,830
|
)
|
|
(6.8
|
)
|
|||
Restructuring expense
|
287
|
|
|
0.1
|
|
|
2,593
|
|
|
1.2
|
|
|
(2,306
|
)
|
|
(88.9
|
)
|
|||
AOCF
|
$
|
13,165
|
|
|
5.8
|
%
|
|
$
|
14,289
|
|
|
6.5
|
%
|
|
$
|
(1,124
|
)
|
|
(7.9
|
)%
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
% of
total
|
|
2015
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
National Networks
|
$
|
1,171,269
|
|
|
84.2
|
%
|
|
$
|
1,051,455
|
|
|
82.8
|
%
|
|
$
|
119,814
|
|
|
11.4
|
%
|
International and Other
|
227,328
|
|
|
16.3
|
|
|
219,239
|
|
|
17.3
|
|
|
8,089
|
|
|
3.7
|
|
|||
Inter-segment eliminations
|
(7,186
|
)
|
|
(0.5
|
)
|
|
(874
|
)
|
|
(0.1
|
)
|
|
(6,312
|
)
|
|
n/m
|
|
|||
Consolidated revenues, net
|
$
|
1,391,411
|
|
|
100.0
|
%
|
|
$
|
1,269,820
|
|
|
100.0
|
%
|
|
$
|
121,591
|
|
|
9.6
|
%
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
% of
total
|
|
2015
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
Advertising
|
$
|
503,183
|
|
|
43.0
|
%
|
|
$
|
446,151
|
|
|
42.4
|
%
|
|
$
|
57,032
|
|
|
12.8
|
%
|
Distribution
|
668,086
|
|
|
57.0
|
|
|
605,304
|
|
|
57.6
|
|
|
62,782
|
|
|
10.4
|
|
|||
|
$
|
1,171,269
|
|
|
100.0
|
%
|
|
$
|
1,051,455
|
|
|
100.0
|
%
|
|
$
|
119,814
|
|
|
11.4
|
%
|
•
|
The increase of
$57,032
in advertising revenues was driven by the timing of airing our original programming which led to increased demand by advertisers and higher pricing across all of our networks, with the largest increase at AMC due to the number of original programming series and series premieres. Most of our advertising revenues vary based on the timing of our original programming series and the popularity of our programming as measured by Nielsen. Due to these factors, we expect advertising revenues to vary from quarter to quarter.
|
•
|
Distribution revenues increased
$62,782
due to an increase of $41,983 principally from digital distribution and licensing revenues derived from our original programming, principally at AMC. In addition, affiliation fee revenues increased due to an increase in rates, primarily at AMC, as compared to the same period in 2015. Distribution revenues vary based on the impact of renewals of affiliation agreements and the timing of availability of our programming to distributors. Because of these factors, we expect distribution revenues to vary from quarter to quarter.
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
% of
total
|
|
2015
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
Advertising
|
$
|
48,413
|
|
|
21.3
|
%
|
|
$
|
40,581
|
|
|
18.5
|
%
|
|
$
|
7,832
|
|
|
19.3
|
%
|
Distribution
|
178,915
|
|
|
78.7
|
|
|
178,658
|
|
|
81.5
|
|
|
257
|
|
|
0.1
|
|
|||
|
$
|
227,328
|
|
|
100.0
|
%
|
|
$
|
219,239
|
|
|
100.0
|
%
|
|
$
|
8,089
|
|
|
3.7
|
%
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
446,255
|
|
|
$
|
389,112
|
|
|
$
|
57,143
|
|
|
14.7
|
%
|
International and Other
|
134,731
|
|
|
134,096
|
|
|
635
|
|
|
0.5
|
|
|||
Inter-segment eliminations
|
(4,449
|
)
|
|
(1,305
|
)
|
|
(3,144
|
)
|
|
n/m
|
|
|||
Total
|
$
|
576,537
|
|
|
$
|
521,903
|
|
|
$
|
54,634
|
|
|
10.5
|
%
|
Percentage of revenues, net
|
41.4
|
%
|
|
41.1
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
253,102
|
|
|
$
|
238,985
|
|
|
$
|
14,117
|
|
|
5.9
|
%
|
International and Other
|
83,550
|
|
|
74,490
|
|
|
9,060
|
|
|
12.2
|
|
|||
Inter-segment eliminations
|
(8
|
)
|
|
(16
|
)
|
|
8
|
|
|
(50.0
|
)
|
|||
Total
|
$
|
336,644
|
|
|
$
|
313,459
|
|
|
$
|
23,185
|
|
|
7.4
|
%
|
Percentage of revenues, net
|
24.2
|
%
|
|
24.7
|
%
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
Operating income
|
$
|
436,691
|
|
|
$
|
389,581
|
|
|
$
|
47,110
|
|
|
12.1
|
%
|
Share-based compensation expense
|
19,488
|
|
|
16,089
|
|
|
3,399
|
|
|
21.1
|
|
|||
Restructuring expense
|
354
|
|
|
3,310
|
|
|
(2,956
|
)
|
|
(89.3
|
)
|
|||
Depreciation and amortization
|
41,185
|
|
|
41,567
|
|
|
(382
|
)
|
|
(0.9
|
)
|
|||
Consolidated AOCF
|
$
|
497,718
|
|
|
$
|
450,547
|
|
|
$
|
47,171
|
|
|
10.5
|
%
|
|
Six Months Ended June 30,
|
|
|
|
|
|||||||||
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
487,282
|
|
|
$
|
435,811
|
|
|
$
|
51,471
|
|
|
11.8
|
%
|
International and Other
|
13,165
|
|
|
14,289
|
|
|
(1,124
|
)
|
|
(7.9
|
)
|
|||
Inter-segment eliminations
|
(2,729
|
)
|
|
447
|
|
|
(3,176
|
)
|
|
n/m
|
|
|||
AOCF
|
$
|
497,718
|
|
|
$
|
450,547
|
|
|
$
|
47,171
|
|
|
10.5
|
%
|
|
2016
|
|
2015
|
||||
Cash provided by operating activities
|
$
|
229,564
|
|
|
$
|
190,241
|
|
Cash used in investing activities
|
(24,540
|
)
|
|
(63,919
|
)
|
||
Cash provided by (used in) financing activities
|
144,677
|
|
|
(89,481
|
)
|
||
Net increase in cash and cash equivalents
|
349,701
|
|
|
36,841
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 4.
|
Controls and Procedures.
|
Item 1.
|
Legal Proceedings.
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
|
Total Number of Shares
(or Units) Purchased
|
|
Average Price Paid per Share (or Unit)
|
|
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
|
||||||
April 1, 2016 to April 30, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
500,000,000
|
|
May 1, 2016 to May 31, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
500,000,000
|
|
June 1, 2016 to June 30, 2016
|
|
811,385
|
|
|
$
|
59.44
|
|
|
811,385
|
|
|
$
|
451,773,000
|
|
Total
|
|
811,385
|
|
|
$
|
59.44
|
|
|
811,385
|
|
|
$
|
451,773,000
|
|
Item 6.
|
Exhibits.
|
(a)
|
Index to Exhibits.
|
10.1
|
Shared Executive Space Cost Sharing Arrangement
|
|
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
32
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.
|
|
|
101.INS
|
XBRL Instance Document.
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase.
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
|
AMC Networks Inc.
|
|
|
|
|
|
Date:
|
August 4, 2016
|
|
By:
|
/s/ Sean S. Sullivan
|
|
|
|
|
Sean S. Sullivan
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
Date:
|
August 4, 2016
|
|
By:
|
/s/ Joshua W. Sapan
|
|
|
|
|
Joshua W. Sapan
|
|
|
|
|
President and Chief Executive Officer
|
Date:
|
August 4, 2016
|
|
By:
|
/s/ Sean S. Sullivan
|
|
|
|
|
Sean S. Sullivan
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
Date:
|
August 4, 2016
|
|
By:
|
/s/ Joshua W. Sapan
|
|
|
|
|
Joshua W. Sapan
|
|
|
|
|
President and Chief Executive Officer
|
Date:
|
August 4, 2016
|
|
By:
|
/s/ Sean S. Sullivan
|
|
|
|
|
Sean S. Sullivan
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|