|
|
þ
|
Annual 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)
|
Title of each class
|
|
Name of each exchange on which registered
|
Class A Common Stock, par value $0.01 per share
|
|
The NASDAQ Stock Market LLC
|
|
Large accelerated filer
|
þ
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
|
|
|
|
|
|
Emerging growth company
|
¨
|
Class A Common Stock par value $0.01 per share
|
49,239,999
|
|
Class B Common Stock par value $0.01 per share
|
11,484,408
|
|
|
|
|
Page
|
Part I
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Part II
|
|
|
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
||
Part III
|
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
Part IV
|
|
|
Item 15.
|
||
Item 16.
|
||
•
|
market demand, including changes in viewer consumption patterns, for our programming networks, our subscription streaming services, and our programming;
|
•
|
our ability to maintain and renew distribution or affiliation agreements with 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, including the impact of the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018;
|
•
|
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;
|
•
|
uncertainties regarding the financial results of equity method investees and changes in the nature of key strategic relationships with partners and joint ventures;
|
•
|
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
|
•
|
National Networks:
Includes activities of our five national programming networks, AMC Studios operations and AMC Broadcasting & Technology. Our national programming networks are AMC, WE tv, BBC AMERICA, IFC,
|
•
|
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; and our subscription streaming services, Sundance Now and Shudder.
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|||
Nielsen Subscribers (at year-end)
|
90.5
|
|
|
91.2
|
|
|
93.6
|
|
Change from Prior Year-end
|
(1
|
)%
|
|
(3
|
)%
|
|
(1
|
)%
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|||
Nielsen Subscribers (at year-end)
|
86.0
|
|
|
85.9
|
|
|
86.5
|
|
Change from Prior Year-end
|
—
|
%
|
|
(1
|
)%
|
|
1
|
%
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|||
Nielsen Subscribers (at year-end)
|
80.6
|
|
|
79.3
|
|
|
77.1
|
|
Change from Prior Year-end
|
2
|
%
|
|
3
|
%
|
|
(1
|
)%
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|||
Nielsen Subscribers (at year-end)
|
74.2
|
|
|
72.4
|
|
|
71.2
|
|
Change from Prior Year-end
|
2
|
%
|
|
2
|
%
|
|
(3
|
)%
|
(In millions)
|
2017
|
|
2016
|
|
2015
|
|||
Nielsen Subscribers (at year-end)
|
70.6
|
|
|
62.4
|
|
|
59.6
|
|
Change from Prior Year-end
|
13
|
%
|
|
5
|
%
|
|
5
|
%
|
•
|
laws and policies affecting trade and taxes, including laws and policies relating to the repatriation of funds and withholding taxes, and changes in these laws;
|
•
|
changes in local regulatory requirements, including restrictions on content, imposition of local content quotas and restrictions on foreign ownership;
|
•
|
exchange controls, tariffs and other trade barriers;
|
•
|
differing degrees of protection for intellectual property and varying attitudes towards the piracy of intellectual property;
|
•
|
foreign privacy and data protection laws and regulations and changes in these laws;
|
•
|
the instability of foreign economies and governments;
|
•
|
war and acts of terrorism;
|
•
|
anti-corruption laws and regulations such as the Foreign Corrupt Practices Act and the U.K. Bribery Act that impose stringent requirements on how we conduct our foreign operations and changes in these laws and regulations; and
|
•
|
shifting consumer preferences regarding the viewing of video programming.
|
•
|
the difficulty of assimilating the operations and personnel of acquired companies into our operations;
|
•
|
the potential disruption of our ongoing business and distraction of management;
|
•
|
the incurrence of additional operating losses and operating expenses of the businesses we acquired or in which we invested;
|
•
|
the difficulty of integrating acquired technology and rights into our services and unanticipated expenses related to such integration;
|
•
|
the failure to successfully further develop an acquired business or technology and any resulting impairment of amounts currently capitalized as intangible assets;
|
•
|
the failure of strategic investments to perform as expected or to meet financial projections;
|
•
|
the potential for patent and trademark infringement and data privacy and security claims against the acquired companies, or companies in which we have invested;
|
•
|
litigation or other claims in connection with acquisitions, acquired companies, or companies in which we have invested;
|
•
|
the impairment or loss of relationships with customers and partners of the companies we acquired or in which we invested or with our customers and partners as a result of the integration of acquired operations;
|
•
|
the impairment of relationships with, or failure to retain, employees of acquired companies or our existing employees as a result of integration of new personnel;
|
•
|
the difficulty of integrating operations, systems, and controls as a result of cultural, regulatory, systems, and operational differences;
|
•
|
the performance of management of companies in which we invest but do not control;
|
•
|
in the case of foreign acquisitions and investments, the impact of particular economic, tax, currency, political, legal and regulatory risks associated with specific countries; and
|
•
|
the impact of known potential liabilities or liabilities that may be unknown, including as a result of inadequate internal controls, associated with the companies we acquired or in which we invested.
|
•
|
increase our vulnerability to general adverse economic and industry conditions;
|
•
|
require us to dedicate a substantial portion of our cash flow from operations to make interest and principal payments on our debt, thereby limiting the availability of our cash flow to fund future programming investments, capital expenditures, working capital, business activities and other general corporate requirements;
|
•
|
limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
|
•
|
place us at a competitive disadvantage compared with our competitors; and
|
•
|
limit our ability to borrow additional funds, even when necessary to maintain adequate liquidity.
|
•
|
borrow money or guarantee debt;
|
•
|
create liens;
|
•
|
pay dividends on or redeem or repurchase stock;
|
•
|
make specified types of investments;
|
•
|
enter into transactions with affiliates; and
|
•
|
sell assets or merge with other companies.
|
•
|
Class A Common Stock, which is entitled to one vote per share and is entitled collectively to elect 25% of our Board of Directors.
|
•
|
Class B Common Stock, which is generally entitled to ten votes per share and is entitled collectively to elect the remaining 75% of our Board of Directors.
|
•
|
the authorization or issuance of any additional shares of Class B Common Stock, and
|
•
|
any amendment, alteration or repeal of any of the provisions of our certificate of incorporation that adversely affects the powers, preferences or rights of the Class B Common Stock.
|
|
|
INDEXED RETURNS
Period Ended
|
||||||||||
Company Name / Index
|
|
Base Period 12/31/12
|
|
12/31/13
|
|
12/31/14
|
|
12/31/15
|
|
12/31/16
|
|
12/31/17
|
AMC Networks Inc.
|
|
100
|
|
137.60
|
|
128.83
|
|
150.87
|
|
105.74
|
|
109.25
|
S&P MidCap 400 Index
|
|
100
|
|
133.50
|
|
146.54
|
|
143.35
|
|
173.08
|
|
201.20
|
Peer Group
|
|
100
|
|
154.90
|
|
176.82
|
|
158.53
|
|
174.11
|
|
182.62
|
Year Ended December 31, 2017
|
|
High
|
|
Low
|
||||
First Quarter
|
|
$
|
67.61
|
|
|
$
|
52.39
|
|
Second Quarter
|
|
$
|
61.53
|
|
|
$
|
51.51
|
|
Third Quarter
|
|
$
|
67.44
|
|
|
$
|
53.25
|
|
Fourth Quarter
|
|
$
|
60.66
|
|
|
$
|
46.89
|
|
|
|
|
|
|
||||
Year Ended December 31, 2016
|
|
High
|
|
Low
|
||||
First Quarter
|
|
$
|
78.13
|
|
|
$
|
60.30
|
|
Second Quarter
|
|
$
|
70.28
|
|
|
$
|
54.81
|
|
Third Quarter
|
|
$
|
60.80
|
|
|
$
|
49.93
|
|
Fourth Quarter
|
|
$
|
56.27
|
|
|
$
|
46.17
|
|
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
|
||||||
October 1, 2017 to October 31, 2017
|
|
1,033,761
|
|
|
$
|
54.96
|
|
|
1,033,761
|
|
|
$
|
373,614,300
|
|
November 1, 2017 to November 30, 2017
|
|
508,689
|
|
|
$
|
50.11
|
|
|
508,689
|
|
|
$
|
348,125,076
|
|
December 1, 2017 to December 31, 2017
|
|
103,937
|
|
|
$
|
53.61
|
|
|
103,937
|
|
|
$
|
342,552,735
|
|
Total
|
|
1,646,387
|
|
|
$
|
53.37
|
|
|
1,646,387
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2017
(1) (2)
|
|
2016
(1) (2)
|
|
2015
(2)
|
|
2014
(2)
|
|
2013
(3)
|
||||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||||||
Operating Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues, net
|
$
|
2,805,691
|
|
|
$
|
2,755,654
|
|
|
$
|
2,580,935
|
|
|
$
|
2,175,641
|
|
|
$
|
1,591,858
|
|
Operating income
|
722,359
|
|
|
657,556
|
|
|
709,193
|
|
|
546,353
|
|
|
582,167
|
|
|||||
Income from continuing operations
|
489,637
|
|
|
289,963
|
|
|
381,704
|
|
|
267,873
|
|
|
290,160
|
|
|||||
Loss from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,448
|
)
|
|
—
|
|
|||||
Net (income) loss attributable to noncontrolling interests
|
(18,321
|
)
|
|
(19,453
|
)
|
|
(14,916
|
)
|
|
(3,628
|
)
|
|
578
|
|
|||||
Net income attributable to AMC Networks' stockholders
|
$
|
471,316
|
|
|
$
|
270,510
|
|
|
$
|
366,788
|
|
|
$
|
260,797
|
|
|
$
|
290,738
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share attributable to AMC Networks' stockholders:
|
|
|
|
|
|
|
|
|
|||||||||||
Basic
|
$
|
7.26
|
|
|
$
|
3.77
|
|
|
$
|
5.06
|
|
|
$
|
3.67
|
|
|
$
|
4.06
|
|
Diluted
|
$
|
7.18
|
|
|
$
|
3.74
|
|
|
$
|
5.01
|
|
|
$
|
3.63
|
|
|
$
|
4.00
|
|
Balance Sheet Data, at period end:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
558,783
|
|
|
$
|
481,389
|
|
|
$
|
316,321
|
|
|
$
|
201,367
|
|
|
$
|
521,951
|
|
Total assets
|
5,032,985
|
|
|
4,480,595
|
|
|
4,250,609
|
|
|
3,949,826
|
|
|
2,612,641
|
|
|||||
Long-term debt (including capital leases)
|
3,130,381
|
|
|
2,859,129
|
|
|
2,701,148
|
|
|
2,763,144
|
|
|
2,147,240
|
|
|||||
Stockholders' equity (deficiency)
|
$
|
134,944
|
|
|
$
|
(30,082
|
)
|
|
$
|
(39,277
|
)
|
|
$
|
(371,755
|
)
|
|
$
|
(571,519
|
)
|
•
|
National Networks:
Includes activities of our five national programming networks, AMC Studios operations and AMC Broadcasting & Technology. Our national programming networks are AMC, WE tv, BBC AMERICA, IFC, and SundanceTV in the U.S.; and AMC, IFC and Sundance Channel in Canada. Our AMC Studios operations produces original programming for our programming networks and also licenses such program rights worldwide. AMC Networks Broadcasting & Technology is our technical services business, which primarily services most of the national programming networks.
|
•
|
International and Other
: Principally includes AMC Networks International, 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 (the AMCNI – DMC business was sold on July 12, 2017); and our subscription streaming services, Sundance Now and Shudder.
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
2017
|
|
2016
|
|
2015
|
|||||||
Revenues, net
|
|
|
|
|
|
||||||
National Networks
|
$
|
2,367,615
|
|
|
$
|
2,311,040
|
|
|
$
|
2,135,367
|
|
International and Other
|
457,182
|
|
|
459,996
|
|
|
452,578
|
|
|||
Inter-segment eliminations
|
(19,106
|
)
|
|
(15,382
|
)
|
|
(7,010
|
)
|
|||
Consolidated revenues, net
|
$
|
2,805,691
|
|
|
$
|
2,755,654
|
|
|
$
|
2,580,935
|
|
Operating income (loss)
|
|
|
|
|
|
||||||
National Networks
|
$
|
817,566
|
|
|
$
|
784,027
|
|
|
$
|
754,243
|
|
International and Other
|
(88,894
|
)
|
|
(120,914
|
)
|
|
(42,542
|
)
|
|||
Inter-segment eliminations
|
(6,313
|
)
|
|
(5,557
|
)
|
|
(2,508
|
)
|
|||
Consolidated operating income
|
$
|
722,359
|
|
|
$
|
657,556
|
|
|
$
|
709,193
|
|
AOI
|
|
|
|
|
|
||||||
National Networks
|
$
|
894,912
|
|
|
$
|
855,488
|
|
|
$
|
810,993
|
|
International and Other
|
16,219
|
|
|
28,608
|
|
|
29,757
|
|
|||
Inter-segment eliminations
|
(6,313
|
)
|
|
(5,557
|
)
|
|
(2,508
|
)
|
|||
Consolidated AOI
|
$
|
904,818
|
|
|
$
|
878,539
|
|
|
$
|
838,242
|
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
2017
|
|
2016
|
|
2015
|
|||||||
Operating income
|
$
|
722,359
|
|
|
$
|
657,556
|
|
|
$
|
709,193
|
|
Share-based compensation expense
|
53,545
|
|
|
38,897
|
|
|
31,020
|
|
|||
Restructuring expense
|
6,128
|
|
|
29,503
|
|
|
14,998
|
|
|||
Impairment and related charges
|
28,148
|
|
|
67,805
|
|
|
—
|
|
|||
Depreciation and amortization
|
94,638
|
|
|
84,778
|
|
|
83,031
|
|
|||
AOI
|
$
|
904,818
|
|
|
$
|
878,539
|
|
|
$
|
838,242
|
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
|
2017
|
|
2016
|
|
|
|
|
|||||||||||||
(In thousands)
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
2,805,691
|
|
|
100.0
|
%
|
|
$
|
2,755,654
|
|
|
100.0
|
%
|
|
$
|
50,037
|
|
|
1.8
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
1,341,076
|
|
|
47.8
|
|
|
1,279,984
|
|
|
46.4
|
|
|
61,092
|
|
|
4.8
|
|
|||
Selling, general and administrative
|
613,342
|
|
|
21.9
|
|
|
636,028
|
|
|
23.1
|
|
|
(22,686
|
)
|
|
(3.6
|
)
|
|||
Depreciation and amortization
|
94,638
|
|
|
3.4
|
|
|
84,778
|
|
|
3.1
|
|
|
9,860
|
|
|
11.6
|
|
|||
Impairment and related charges
|
28,148
|
|
|
1.0
|
|
|
67,805
|
|
|
2.5
|
|
|
(39,657
|
)
|
|
(58.5
|
)
|
|||
Restructuring expense
|
6,128
|
|
|
0.2
|
|
|
29,503
|
|
|
1.1
|
|
|
(23,375
|
)
|
|
(79.2
|
)
|
|||
Total operating expenses
|
2,083,332
|
|
|
74.3
|
|
|
2,098,098
|
|
|
76.1
|
|
|
(14,766
|
)
|
|
(0.7
|
)
|
|||
Operating income
|
722,359
|
|
|
25.7
|
|
|
657,556
|
|
|
23.9
|
|
|
64,803
|
|
|
9.9
|
%
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense, net
|
(119,297
|
)
|
|
(4.3
|
)
|
|
(118,568
|
)
|
|
(4.3
|
)
|
|
(729
|
)
|
|
0.6
|
|
|||
Loss on extinguishment of debt
|
(3,004
|
)
|
|
(0.1
|
)
|
|
(50,639
|
)
|
|
(1.8
|
)
|
|
47,635
|
|
|
(94.1
|
)
|
|||
Miscellaneous, net
|
40,320
|
|
|
1.4
|
|
|
(33,524
|
)
|
|
(1.2
|
)
|
|
73,844
|
|
|
(220.3
|
)
|
|||
Total other income (expense)
|
(81,981
|
)
|
|
(2.9
|
)
|
|
(202,731
|
)
|
|
(7.4
|
)
|
|
120,750
|
|
|
(59.6
|
)
|
|||
Net income from operations before income taxes
|
640,378
|
|
|
22.8
|
|
|
454,825
|
|
|
16.5
|
|
|
185,553
|
|
|
40.8
|
|
|||
Income tax expense
|
(150,741
|
)
|
|
(5.4
|
)
|
|
(164,862
|
)
|
|
(6.0
|
)
|
|
14,121
|
|
|
(8.6
|
)
|
|||
Net income including noncontrolling interests
|
489,637
|
|
|
17.5
|
%
|
|
289,963
|
|
|
10.5
|
%
|
|
199,674
|
|
|
68.9
|
|
|||
Net income attributable to noncontrolling interests
|
(18,321
|
)
|
|
(0.7
|
)%
|
|
(19,453
|
)
|
|
(0.7
|
)%
|
|
1,132
|
|
|
(5.8
|
)
|
|||
Net income attributable to AMC Networks' stockholders
|
$
|
471,316
|
|
|
16.8
|
%
|
|
$
|
270,510
|
|
|
9.8
|
%
|
|
$
|
200,806
|
|
|
74.2
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
|
2017
|
|
2016
|
|
|
|
|
|||||||||||||
(In thousands)
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
2,367,615
|
|
|
100.0
|
%
|
|
$
|
2,311,040
|
|
|
100.0
|
%
|
|
$
|
56,575
|
|
|
2.4
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
1,064,580
|
|
|
45.0
|
|
|
1,011,572
|
|
|
43.8
|
|
|
53,008
|
|
|
5.2
|
|
|||
Selling, general and administrative
|
451,820
|
|
|
19.1
|
|
|
474,549
|
|
|
20.5
|
|
|
(22,729
|
)
|
|
(4.8
|
)
|
|||
Depreciation and amortization
|
33,702
|
|
|
1.4
|
|
|
32,376
|
|
|
1.4
|
|
|
1,326
|
|
|
4.1
|
|
|||
Restructuring (credit) expense
|
(53
|
)
|
|
—
|
|
|
8,516
|
|
|
0.4
|
|
|
(8,569
|
)
|
|
(100.6
|
)
|
|||
Operating income
|
$
|
817,566
|
|
|
34.5
|
%
|
|
$
|
784,027
|
|
|
33.9
|
%
|
|
$
|
33,539
|
|
|
4.3
|
%
|
Share-based compensation expense
|
43,697
|
|
|
1.8
|
|
|
30,569
|
|
|
1.3
|
|
|
13,128
|
|
|
42.9
|
|
|||
Restructuring (credit) expense
|
(53
|
)
|
|
—
|
|
|
8,516
|
|
|
0.4
|
|
|
(8,569
|
)
|
|
(100.6
|
)
|
|||
Depreciation and amortization
|
33,702
|
|
|
1.4
|
|
|
32,376
|
|
|
1.4
|
|
|
1,326
|
|
|
4.1
|
|
|||
AOI
|
$
|
894,912
|
|
|
37.8
|
%
|
|
$
|
855,488
|
|
|
37.0
|
%
|
|
$
|
39,424
|
|
|
4.6
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
|
2017
|
|
2016
|
|
|
|
|
|||||||||||||
(In thousands)
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
457,182
|
|
|
100.0
|
%
|
|
$
|
459,996
|
|
|
100.0
|
%
|
|
$
|
(2,814
|
)
|
|
(0.6
|
)%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
289,238
|
|
|
63.3
|
|
|
277,215
|
|
|
60.3
|
|
|
12,023
|
|
|
4.3
|
|
|||
Selling, general and administrative
|
161,573
|
|
|
35.3
|
|
|
162,501
|
|
|
35.3
|
|
|
(928
|
)
|
|
(0.6
|
)
|
|||
Depreciation and amortization
|
60,936
|
|
|
13.3
|
|
|
52,402
|
|
|
11.4
|
|
|
8,534
|
|
|
16.3
|
|
|||
Impairment and related charges
|
28,148
|
|
|
6.2
|
|
|
67,805
|
|
|
14.7
|
|
|
(39,657
|
)
|
|
(58.5
|
)
|
|||
Restructuring expense
|
6,181
|
|
|
1.4
|
|
|
20,987
|
|
|
4.6
|
|
|
(14,806
|
)
|
|
(70.5
|
)
|
|||
Operating loss
|
$
|
(88,894
|
)
|
|
(19.4
|
)%
|
|
$
|
(120,914
|
)
|
|
(26.3
|
)%
|
|
$
|
32,020
|
|
|
(26.5
|
)%
|
Share-based compensation expense
|
9,848
|
|
|
2.2
|
|
|
8,328
|
|
|
1.8
|
|
|
1,520
|
|
|
18.3
|
|
|||
Restructuring expense
|
6,181
|
|
|
1.4
|
|
|
20,987
|
|
|
4.6
|
|
|
(14,806
|
)
|
|
(70.5
|
)
|
|||
Impairment and related charges
|
28,148
|
|
|
6.2
|
|
|
67,805
|
|
|
14.7
|
|
|
(39,657
|
)
|
|
(58.5
|
)
|
|||
Depreciation and amortization
|
60,936
|
|
|
13.3
|
|
|
52,402
|
|
|
11.4
|
|
|
8,534
|
|
|
16.3
|
|
|||
AOI
|
$
|
16,219
|
|
|
3.5
|
%
|
|
$
|
28,608
|
|
|
6.2
|
%
|
|
$
|
(12,389
|
)
|
|
(43.3
|
)%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
(In thousands)
|
2017
|
|
% of
total
|
|
2016
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
National Networks
|
$
|
2,367,615
|
|
|
84.4
|
%
|
|
$
|
2,311,040
|
|
|
83.9
|
%
|
|
$
|
56,575
|
|
|
2.4
|
%
|
International and Other
|
457,182
|
|
|
16.3
|
|
|
459,996
|
|
|
16.7
|
|
|
(2,814
|
)
|
|
(0.6
|
)
|
|||
Inter-segment eliminations
|
(19,106
|
)
|
|
(0.7
|
)
|
|
(15,382
|
)
|
|
(0.6
|
)
|
|
(3,724
|
)
|
|
24.2
|
|
|||
Consolidated revenues, net
|
$
|
2,805,691
|
|
|
100.0
|
%
|
|
$
|
2,755,654
|
|
|
100.0
|
%
|
|
$
|
50,037
|
|
|
1.8
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
(In thousands)
|
2017
|
|
% of
total
|
|
2016
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
Advertising
|
$
|
959,551
|
|
|
40.5
|
%
|
|
$
|
990,508
|
|
|
42.9
|
%
|
|
$
|
(30,957
|
)
|
|
(3.1
|
)%
|
Distribution
|
1,408,064
|
|
|
59.5
|
|
|
1,320,532
|
|
|
57.1
|
|
|
87,532
|
|
|
6.6
|
|
|||
|
$
|
2,367,615
|
|
|
100.0
|
%
|
|
$
|
2,311,040
|
|
|
100.0
|
%
|
|
$
|
56,575
|
|
|
2.4
|
%
|
•
|
Advertising revenues
decreased
$31.0 million
primarily driven by ratings, partially offset by pricing, with a decrease at AMC, partially offset by increases at BBC AMERICA, Sundance TV, and IFC. 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
$87.5 million
principally due to an increase in subscription revenues of $44.2 million primarily driven by higher rates and $43.3 million from content licensing revenues derived from our original programming, primarily at AMC. Subscription revenues vary based on the impact of distributor agreement renewals and content licensing revenue varies based on the timing of availability of our programming to distributors. Because of these factors, we expect distribution revenues to vary from quarter to quarter.
|
|
Estimated Domestic Subscribers
(1)
|
||||
|
December 31, 2017
|
|
December 31, 2016
|
||
National Programming Networks:
|
|
|
|
||
AMC
|
90,500
|
|
|
91,200
|
|
WE tv
|
86,000
|
|
|
85,900
|
|
BBC AMERICA
|
80,600
|
|
|
79,300
|
|
IFC
|
74,200
|
|
|
72,400
|
|
SundanceTV
|
70,600
|
|
|
62,400
|
|
(1)
|
Estimated U.S. subscribers as measured by Nielsen.
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
(In thousands)
|
2017
|
|
% of
total |
|
2016
|
|
% of
total |
|
$ change
|
|
% change
|
|||||||||
Advertising
|
$
|
89,894
|
|
|
19.7
|
%
|
|
$
|
94,467
|
|
|
20.5
|
%
|
|
$
|
(4,573
|
)
|
|
(4.8
|
)%
|
Distribution
|
367,288
|
|
|
80.3
|
|
|
365,529
|
|
|
79.5
|
|
|
1,759
|
|
|
0.5
|
|
|||
|
$
|
457,182
|
|
|
100.0
|
%
|
|
$
|
459,996
|
|
|
100.0
|
%
|
|
$
|
(2,814
|
)
|
|
(0.6
|
)%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2017
|
|
2016
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
1,064,580
|
|
|
$
|
1,011,572
|
|
|
$
|
53,008
|
|
|
5.2
|
%
|
International and Other
|
289,238
|
|
|
277,215
|
|
|
12,023
|
|
|
4.3
|
|
|||
Inter-segment eliminations
|
(12,742
|
)
|
|
(8,803
|
)
|
|
(3,939
|
)
|
|
44.7
|
|
|||
Total
|
$
|
1,341,076
|
|
|
$
|
1,279,984
|
|
|
$
|
61,092
|
|
|
4.8
|
%
|
Percentage of revenues, net
|
47.8
|
%
|
|
46.4
|
%
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2017
|
|
2016
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
451,820
|
|
|
$
|
474,549
|
|
|
$
|
(22,729
|
)
|
|
(4.8
|
)%
|
International and Other
|
161,573
|
|
|
162,501
|
|
|
(928
|
)
|
|
(0.6
|
)
|
|||
Inter-segment eliminations
|
(51
|
)
|
|
(1,022
|
)
|
|
971
|
|
|
(95.0
|
)
|
|||
Total
|
$
|
613,342
|
|
|
$
|
636,028
|
|
|
$
|
(22,686
|
)
|
|
(3.6
|
)%
|
Percentage of revenues, net
|
21.9
|
%
|
|
23.1
|
%
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2017
|
|
2016
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
33,702
|
|
|
$
|
32,376
|
|
|
$
|
1,326
|
|
|
4.1
|
%
|
International and Other
|
60,936
|
|
|
52,402
|
|
|
8,534
|
|
|
16.3
|
|
|||
|
$
|
94,638
|
|
|
$
|
84,778
|
|
|
$
|
9,860
|
|
|
11.6
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2017
|
|
2016
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
817,566
|
|
|
$
|
784,027
|
|
|
$
|
33,539
|
|
|
4.3
|
%
|
International and Other
|
(88,894
|
)
|
|
(120,914
|
)
|
|
32,020
|
|
|
(26.5
|
)
|
|||
Inter-segment Eliminations
|
(6,313
|
)
|
|
(5,557)
|
|
|
(756
|
)
|
|
13.6
|
|
|||
|
$
|
722,359
|
|
|
$
|
657,556
|
|
|
$
|
64,803
|
|
|
9.9
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2017
|
|
2016
|
|
$ change
|
|
% change
|
|||||||
Operating income
|
$
|
722,359
|
|
|
$
|
657,556
|
|
|
$
|
64,803
|
|
|
9.9
|
%
|
Share-based compensation expense
|
53,545
|
|
|
38,897
|
|
|
14,648
|
|
|
37.7
|
|
|||
Restructuring expense
|
6,128
|
|
|
29,503
|
|
|
(23,375
|
)
|
|
(79.2
|
)
|
|||
Impairment and related charges
|
28,148
|
|
|
67,805
|
|
|
(39,657
|
)
|
|
(58.5
|
)
|
|||
Depreciation and amortization
|
94,638
|
|
|
84,778
|
|
|
9,860
|
|
|
11.6
|
|
|||
Consolidated AOI
|
$
|
904,818
|
|
|
$
|
878,539
|
|
|
$
|
26,279
|
|
|
3.0
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2017
|
|
2016
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
894,912
|
|
|
$
|
855,488
|
|
|
$
|
39,424
|
|
|
4.6
|
%
|
International and Other
|
16,219
|
|
|
28,608
|
|
|
(12,389
|
)
|
|
(43.3
|
)
|
|||
Inter-segment eliminations
|
(6,313
|
)
|
|
(5,557
|
)
|
|
(756
|
)
|
|
13.6
|
|
|||
AOI
|
$
|
904,818
|
|
|
$
|
878,539
|
|
|
$
|
26,279
|
|
|
3.0
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
|||||||||||||
(In thousands)
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
2,755,654
|
|
|
100.0
|
%
|
|
$
|
2,580,935
|
|
|
100.0
|
%
|
|
$
|
174,719
|
|
|
6.8
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
1,279,984
|
|
|
46.4
|
|
|
1,137,133
|
|
|
44.1
|
|
|
142,851
|
|
|
12.6
|
|
|||
Selling, general and administrative
|
636,028
|
|
|
23.1
|
|
|
636,580
|
|
|
24.7
|
|
|
(552
|
)
|
|
(0.1
|
)
|
|||
Depreciation and amortization
|
84,778
|
|
|
3.1
|
|
|
83,031
|
|
|
3.2
|
|
|
1,747
|
|
|
2.1
|
|
|||
Impairment and related charges
|
67,805
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
67,805
|
|
|
n/m
|
|
|||
Restructuring expense
|
29,503
|
|
|
1.1
|
|
|
14,998
|
|
|
0.6
|
|
|
14,505
|
|
|
96.7
|
|
|||
Total operating expenses
|
2,098,098
|
|
|
76.1
|
|
|
1,871,742
|
|
|
72.5
|
|
|
226,356
|
|
|
12.1
|
|
|||
Operating income
|
657,556
|
|
|
23.9
|
|
|
709,193
|
|
|
27.5
|
|
|
(51,637
|
)
|
|
(7.3
|
)%
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
(118,568
|
)
|
|
(4.3
|
)
|
|
(125,708
|
)
|
|
(4.9
|
)
|
|
7,140
|
|
|
(5.7
|
)
|
|||
Loss on extinguishment of debt
|
(50,639
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
(50,639
|
)
|
|
n/m
|
|
|||
Miscellaneous, net
|
(33,524
|
)
|
|
(1.2
|
)
|
|
(691
|
)
|
|
—
|
|
|
(32,833
|
)
|
|
n/m
|
|
|||
Total other income (expense)
|
(202,731
|
)
|
|
(7.4
|
)
|
|
(126,399
|
)
|
|
(4.9
|
)
|
|
(76,332
|
)
|
|
60.4
|
|
|||
Net income from operations before income taxes
|
454,825
|
|
|
16.5
|
|
|
582,794
|
|
|
22.6
|
|
|
(127,969
|
)
|
|
(22.0
|
)
|
|||
Income tax expense
|
(164,862
|
)
|
|
(6.0
|
)
|
|
(201,090
|
)
|
|
(7.8
|
)
|
|
36,228
|
|
|
(18.0
|
)
|
|||
Net income including noncontrolling interests
|
289,963
|
|
|
10.5
|
%
|
|
381,704
|
|
|
14.8
|
%
|
|
(91,741
|
)
|
|
(24.0
|
)
|
|||
Net income attributable to noncontrolling interests
|
(19,453
|
)
|
|
(0.7
|
)%
|
|
(14,916
|
)
|
|
(0.6
|
)%
|
|
(4,537
|
)
|
|
30.4
|
|
|||
Net income attributable to AMC Networks' stockholders
|
$
|
270,510
|
|
|
9.8
|
%
|
|
$
|
366,788
|
|
|
14.2
|
%
|
|
$
|
(96,278
|
)
|
|
(26.2
|
)%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
|||||||||||||
(In thousands)
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
2,311,040
|
|
|
100.0
|
%
|
|
$
|
2,135,367
|
|
|
100.0
|
%
|
|
$
|
175,673
|
|
|
8.2
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Technical and operating (excluding depreciation and amortization)
|
1,011,572
|
|
|
43.8
|
|
|
863,704
|
|
|
40.4
|
|
|
147,868
|
|
|
17.1
|
|
|||
Selling, general and administrative
|
474,549
|
|
|
20.5
|
|
|
484,484
|
|
|
22.7
|
|
|
(9,935
|
)
|
|
(2.1
|
)
|
|||
Depreciation and amortization
|
32,376
|
|
|
1.4
|
|
|
29,742
|
|
|
1.4
|
|
|
2,634
|
|
|
8.9
|
|
|||
Restructuring expense
|
8,516
|
|
|
0.4
|
|
|
3,194
|
|
|
0.1
|
|
|
5,322
|
|
|
166.6
|
|
|||
Operating income
|
$
|
784,027
|
|
|
33.9
|
%
|
|
$
|
754,243
|
|
|
35.3
|
%
|
|
$
|
29,784
|
|
|
3.9
|
%
|
Share-based compensation expense
|
30,569
|
|
|
1.3
|
|
|
23,814
|
|
|
1.1
|
|
|
6,755
|
|
|
28.4
|
|
|||
Restructuring expense
|
8,516
|
|
|
0.4
|
|
|
3,194
|
|
|
0.1
|
|
|
5,322
|
|
|
166.6
|
|
|||
Depreciation and amortization
|
32,376
|
|
|
1.4
|
|
|
29,742
|
|
|
1.4
|
|
|
2,634
|
|
|
8.9
|
|
|||
AOI
|
$
|
855,488
|
|
|
37.0
|
%
|
|
$
|
810,993
|
|
|
38.0
|
%
|
|
$
|
44,495
|
|
|
5.5
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
|
2016
|
|
2015
|
|
|
|
|
|||||||||||||
(In thousands)
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
459,996
|
|
|
100.0
|
%
|
|
$
|
452,578
|
|
|
100.0
|
%
|
|
$
|
7,418
|
|
|
1.6
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
277,215
|
|
|
60.3
|
|
|
277,895
|
|
|
61.4
|
|
|
(680
|
)
|
|
(0.2
|
)
|
|||
Selling, general and administrative
|
162,501
|
|
|
35.3
|
|
|
152,132
|
|
|
33.6
|
|
|
10,369
|
|
|
6.8
|
|
|||
Depreciation and amortization
|
52,402
|
|
|
11.4
|
|
|
53,289
|
|
|
11.8
|
|
|
(887
|
)
|
|
(1.7
|
)
|
|||
Impairment and related charges
|
67,805
|
|
|
14.7
|
|
|
—
|
|
|
—
|
|
|
67,805
|
|
|
n/m
|
|
|||
Restructuring expense
|
20,987
|
|
|
4.6
|
|
|
11,804
|
|
|
2.6
|
|
|
9,183
|
|
|
77.8
|
|
|||
Operating loss
|
$
|
(120,914
|
)
|
|
(26.3
|
)%
|
|
$
|
(42,542
|
)
|
|
(9.4
|
)%
|
|
$
|
(78,372
|
)
|
|
184.2
|
%
|
Share-based compensation expense
|
8,328
|
|
|
1.8
|
|
|
7,206
|
|
|
1.6
|
|
|
1,122
|
|
|
15.6
|
|
|||
Restructuring expense
|
20,987
|
|
|
4.6
|
|
|
11,804
|
|
|
2.6
|
|
|
9,183
|
|
|
77.8
|
|
|||
Impairment and related charges
|
67,805
|
|
|
14.7
|
|
|
—
|
|
|
—
|
|
|
67,805
|
|
|
n/m
|
|
|||
Depreciation and amortization
|
52,402
|
|
|
11.4
|
|
|
53,289
|
|
|
11.8
|
|
|
(887
|
)
|
|
(1.7
|
)
|
|||
AOI
|
$
|
28,608
|
|
|
6.2
|
%
|
|
$
|
29,757
|
|
|
6.6
|
%
|
|
$
|
(1,149
|
)
|
|
(3.9
|
)%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
(In thousands)
|
2016
|
|
% of
total
|
|
2015
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
National Networks
|
$
|
2,311,040
|
|
|
83.9
|
%
|
|
$
|
2,135,367
|
|
|
82.7
|
%
|
|
$
|
175,673
|
|
|
8.2
|
%
|
International and Other
|
459,996
|
|
|
16.7
|
|
|
452,578
|
|
|
17.5
|
|
|
7,418
|
|
|
1.6
|
|
|||
Inter-segment eliminations
|
(15,382
|
)
|
|
(0.6
|
)
|
|
(7,010
|
)
|
|
(0.3
|
)
|
|
(8,372
|
)
|
|
119.4
|
|
|||
Consolidated revenues, net
|
$
|
2,755,654
|
|
|
100.0
|
%
|
|
$
|
2,580,935
|
|
|
100.0
|
%
|
|
$
|
174,719
|
|
|
6.8
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
(In thousands)
|
2016
|
|
% of
total
|
|
2015
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
Advertising
|
$
|
990,508
|
|
|
42.9
|
%
|
|
$
|
945,288
|
|
|
44.3
|
%
|
|
$
|
45,220
|
|
|
4.8
|
%
|
Distribution
|
1,320,532
|
|
|
57.1
|
|
|
1,190,079
|
|
|
55.7
|
|
|
130,453
|
|
|
11.0
|
|
|||
|
$
|
2,311,040
|
|
|
100.0
|
%
|
|
$
|
2,135,367
|
|
|
100.0
|
%
|
|
$
|
175,673
|
|
|
8.2
|
%
|
•
|
Advertising revenues increased
$45.2 million
driven by an increase across substantially all of our national networks due to increased demand by advertisers and higher pricing driven by original programming series and series premieres, partially offset by lower ratings. As previously discussed, 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.
|
•
|
Distribution revenues increased
$130.5 million
principally due to an increase of
$95.6 million
from content licensing revenues derived from our original programming, primarily at AMC and subscription revenues increased
$34.9 million
, driven by increases at AMC due to an increase in rates during the year ended December 31, 2016 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.
|
|
Estimated Domestic Subscribers
(1)
|
||||
|
December 31, 2016
|
|
December 31, 2015
|
||
National Programming Networks:
|
|
|
|
||
AMC
|
91,200
|
|
|
93,600
|
|
WE tv
|
85,900
|
|
|
86,500
|
|
BBC AMERICA
|
79,300
|
|
|
77,100
|
|
IFC
|
72,400
|
|
|
71,200
|
|
SundanceTV
|
62,400
|
|
|
59,600
|
|
(1)
|
Estimated U.S. subscribers as measured by Nielsen.
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
(In thousands)
|
2016
|
|
% of
total
|
|
2015
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
Advertising
|
$
|
94,467
|
|
|
20.5
|
%
|
|
$
|
82,972
|
|
|
18.3
|
%
|
|
$
|
11,495
|
|
|
13.9
|
|
Distribution
|
365,529
|
|
|
79.5
|
|
|
369,606
|
|
|
81.7
|
|
|
(4,077
|
)
|
|
(1.1
|
)
|
|||
|
$
|
459,996
|
|
|
100.0
|
%
|
|
$
|
452,578
|
|
|
100.0
|
%
|
|
$
|
7,418
|
|
|
1.6
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
1,011,572
|
|
|
$
|
863,704
|
|
|
$
|
147,868
|
|
|
17.1
|
%
|
International and Other
|
277,215
|
|
|
277,895
|
|
|
(680
|
)
|
|
(0.2
|
)
|
|||
Inter-segment eliminations
|
(8,803
|
)
|
|
(4,466
|
)
|
|
(4,337
|
)
|
|
97.1
|
|
|||
Total
|
$
|
1,279,984
|
|
|
$
|
1,137,133
|
|
|
$
|
142,851
|
|
|
12.6
|
%
|
Percentage of revenues, net
|
46.4
|
%
|
|
44.1
|
%
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
474,549
|
|
|
$
|
484,484
|
|
|
$
|
(9,935
|
)
|
|
(2.1
|
)%
|
International and Other
|
162,501
|
|
|
152,132
|
|
|
10,369
|
|
|
6.8
|
|
|||
Inter-segment eliminations
|
(1,022
|
)
|
|
(36
|
)
|
|
(986
|
)
|
|
2,738.9
|
|
|||
Total
|
$
|
636,028
|
|
|
$
|
636,580
|
|
|
$
|
(552
|
)
|
|
(0.1
|
)%
|
Percentage of revenues, net
|
23.1
|
%
|
|
24.7
|
%
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
32,376
|
|
|
$
|
29,742
|
|
|
$
|
2,634
|
|
|
8.9
|
%
|
International and Other
|
52,402
|
|
|
53,289
|
|
|
(887
|
)
|
|
(1.7
|
)
|
|||
|
$
|
84,778
|
|
|
$
|
83,031
|
|
|
$
|
1,747
|
|
|
2.1
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
784,027
|
|
|
$
|
754,243
|
|
|
$
|
29,784
|
|
|
3.9
|
%
|
International and Other
|
(120,914
|
)
|
|
(42,542
|
)
|
|
(78,372
|
)
|
|
184.2
|
|
|||
Inter-segment Eliminations
|
(5,557)
|
|
|
(2,508)
|
|
|
(3,049
|
)
|
|
121.6
|
|
|||
|
$
|
657,556
|
|
|
$
|
709,193
|
|
|
$
|
(51,637
|
)
|
|
(7.3
|
)%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
Operating income
|
$
|
657,556
|
|
|
$
|
709,193
|
|
|
$
|
(51,637
|
)
|
|
(7.3
|
)%
|
Share-based compensation expense
|
38,897
|
|
|
31,020
|
|
|
7,877
|
|
|
25.4
|
|
|||
Restructuring expense
|
29,503
|
|
|
14,998
|
|
|
14,505
|
|
|
96.7
|
|
|||
Impairment and related charges
|
67,805
|
|
|
—
|
|
|
67,805
|
|
|
n/m
|
|
|||
Depreciation and amortization
|
84,778
|
|
|
83,031
|
|
|
1,747
|
|
|
2.1
|
|
|||
Consolidated AOI
|
$
|
878,539
|
|
|
$
|
838,242
|
|
|
$
|
40,297
|
|
|
4.8
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2016
|
|
2015
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
855,488
|
|
|
$
|
810,993
|
|
|
$
|
44,495
|
|
|
5.5
|
%
|
International and Other
|
28,608
|
|
|
29,757
|
|
|
(1,149
|
)
|
|
(3.9
|
)
|
|||
Inter-segment eliminations
|
(5,557
|
)
|
|
(2,508
|
)
|
|
(3,049
|
)
|
|
121.6
|
|
|||
AOI
|
$
|
878,539
|
|
|
$
|
838,242
|
|
|
$
|
40,297
|
|
|
4.8
|
%
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flow provided by operating activities
|
$
|
385,729
|
|
|
$
|
514,325
|
|
|
$
|
370,039
|
|
Cash flow used in investing activities
|
(130,602
|
)
|
|
(174,574
|
)
|
|
(116,770
|
)
|
|||
Cash flow used in financing activities
|
(204,210
|
)
|
|
(153,864
|
)
|
|
(127,279
|
)
|
|||
Net increase in cash from operations
|
50,917
|
|
|
185,887
|
|
|
125,990
|
|
(In thousands)
|
Payments due by period
|
||||||||||||||||||
Total
|
|
Year 1
|
|
Years
2 - 3
|
|
Years
4 - 5
|
|
More than
5 years
|
|||||||||||
Debt obligations:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Principal payments
|
$
|
3,150,000
|
|
|
$
|
—
|
|
|
$
|
75,000
|
|
|
$
|
850,000
|
|
|
$
|
2,225,000
|
|
Interest payments (1)
|
919,619
|
|
|
141,078
|
|
|
292,291
|
|
|
284,523
|
|
|
201,727
|
|
|||||
Purchase obligations (2)
|
1,983,967
|
|
|
705,387
|
|
|
621,937
|
|
|
186,377
|
|
|
470,266
|
|
|||||
Operating lease obligations
|
234,741
|
|
|
28,895
|
|
|
52,706
|
|
|
47,987
|
|
|
105,153
|
|
|||||
Guarantees (3)
|
160,024
|
|
|
160,024
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Capital lease obligations (4)
|
44,414
|
|
|
7,901
|
|
|
13,016
|
|
|
9,050
|
|
|
14,447
|
|
|||||
Total
|
$
|
6,492,765
|
|
|
$
|
1,043,285
|
|
|
$
|
1,054,950
|
|
|
$
|
1,377,937
|
|
|
$
|
3,016,593
|
|
(1)
|
Interest on variable rate debt and the variable portion of interest rate swap contracts is estimated based on a LIBOR yield curve as of
December 31, 2017
.
|
(2)
|
Purchase obligations consist primarily of program rights obligations, participations and residuals, and transmission and marketing commitments.
|
(3)
|
Consists primarily of a guarantee of payments to a production service company for certain production related costs.
|
(4)
|
Capital lease obligation amounts include imputed interest.
|
|
December 31, 2017
|
||
National Networks
|
$
|
239,759
|
|
International and Other
|
455,399
|
|
|
|
$
|
695,158
|
|
|
Net Carrying Value at, December 31, 2017
|
|
Estimated Useful
Lives in Years
|
||
Affiliate and customer relationships
|
$
|
359,802
|
|
|
6 to 25 years
|
Advertiser relationships
|
32,877
|
|
|
11 years
|
|
Trade names
|
39,341
|
|
|
20 years
|
|
Other amortizable intangible assets
|
5,322
|
|
|
2 to 15 years
|
|
|
$
|
437,342
|
|
|
|
(1)
|
The financial statements as indicated in the index set forth on page
68
.
|
(2)
|
Financial statement schedule:
|
(3)
|
Exhibits:
|
Exhibit
Number
|
|
Description of Exhibit
|
|
|
|
2.1
|
|
|
|
|
|
2.2
|
|
|
|
|
|
3.1(i)
|
|
|
|
|
|
3.1(ii)
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.3
|
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
|
|
|
|
|
4.6
|
|
|
|
|
|
4.7
|
|
|
|
|
|
4.8
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
10.4
|
|
|
|
|
|
10.5
|
|
|
|
|
|
10.6
|
|
|
|
|
|
10.7
|
|
|
|
|
|
10.8
|
|
|
|
|
|
10.9
|
|
|
|
|
|
10.10
|
|
|
|
|
|
10.11
|
|
|
|
|
|
10.12
|
|
|
|
|
|
10.13
|
|
|
|
|
|
10.14
|
|
|
|
|
|
10.15
|
|
|
|
|
|
10.16
|
|
|
|
|
|
10.17
|
|
|
|
|
|
10.18
|
|
|
|
|
|
10.19
|
|
|
|
|
|
10.20
|
|
|
|
|
|
10.21
|
|
|
|
|
|
10.22
|
|
|
|
|
|
12
|
|
|
|
|
|
21
|
|
|
|
|
|
23
|
|
|
|
|
|
24
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32
|
|
|
|
|
|
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:
|
March 1, 2018
|
|
By:
|
/s/ Sean S. Sullivan
|
|
|
|
|
Sean S. Sullivan
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
Name
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Joshua W. Sapan
|
|
President and Chief Executive Officer
|
|
March 1, 2018
|
Joshua W. Sapan
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ Sean S. Sullivan
|
|
Executive Vice President and Chief Financial Officer
|
|
March 1, 2018
|
Sean S. Sullivan
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Christian B. Wymbs
|
|
Executive Vice President and Chief Accounting Officer
|
|
March 1, 2018
|
Christian B. Wymbs
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
/s/ Charles F. Dolan
|
|
Chairman of the Board of Directors
|
|
March 1, 2018
|
Charles F. Dolan
|
|
|
|
|
|
|
|
|
|
/s/ William J. Bell
|
|
Director
|
|
March 1, 2018
|
William J. Bell
|
|
|
|
|
|
|
|
|
|
/s/ James L. Dolan
|
|
Director
|
|
March 1, 2018
|
James L. Dolan
|
|
|
|
|
|
|
|
|
|
/s/ Kristin A. Dolan
|
|
Director
|
|
March 1, 2018
|
Kristin A. Dolan
|
|
|
|
|
|
|
|
|
|
/s/ Marianne Dolan Weber
|
|
Director
|
|
March 1, 2018
|
Marianne Dolan Weber
|
|
|
|
|
Name
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Patrick F. Dolan
|
|
Director
|
|
March 1, 2018
|
Patrick F. Dolan
|
|
|
|
|
|
|
|
|
|
/s/ Thomas C. Dolan
|
|
Director
|
|
March 1, 2018
|
Thomas C. Dolan
|
|
|
|
|
|
|
|
|
|
/s/ Jonathan F. Miller
|
|
Director
|
|
March 1, 2018
|
Jonathan F. Miller
|
|
|
|
|
|
|
|
|
|
/s/ Brian G. Sweeney
|
|
Director
|
|
March 1, 2018
|
Brian G. Sweeney
|
|
|
|
|
|
|
|
|
|
/s/ Vincent Tese
|
|
Director
|
|
March 1, 2018
|
Vincent Tese
|
|
|
|
|
|
|
|
|
|
/s/ Leonard Tow
|
|
Director
|
|
March 1, 2018
|
Leonard Tow
|
|
|
|
|
|
|
|
|
|
/s/ David E. Van Zandt
|
|
Director
|
|
March 1, 2018
|
David E. Van Zandt
|
|
|
|
|
|
|
|
|
|
/s/ Carl E. Vogel
|
|
Director
|
|
March 1, 2018
|
Carl E. Vogel
|
|
|
|
|
|
|
|
|
|
/s/ Robert C. Wright
|
|
Director
|
|
March 1, 2018
|
Robert C. Wright
|
|
|
|
|
Consolidated Financial Statements as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015
|
|
|
|
|
2017
|
|
2016
|
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
558,783
|
|
|
$
|
481,389
|
|
Accounts receivable, trade (including amounts due from related parties, net,
less allowance for doubtful accounts of $9,691 and $6,064)
|
775,891
|
|
|
701,163
|
|
||
Current portion of program rights, net
|
453,450
|
|
|
441,130
|
|
||
Prepaid expenses and other current assets
|
91,726
|
|
|
72,661
|
|
||
Total current assets
|
1,879,850
|
|
|
1,696,343
|
|
||
Property and equipment, net
|
183,514
|
|
|
166,636
|
|
||
Program rights, net
|
1,319,279
|
|
|
1,108,586
|
|
||
Deferred carriage fees, net
|
29,924
|
|
|
43,886
|
|
||
Intangible assets, net
|
457,242
|
|
|
485,809
|
|
||
Goodwill
|
695,158
|
|
|
657,708
|
|
||
Deferred tax assets, net
|
20,081
|
|
|
8,598
|
|
||
Other assets
|
447,937
|
|
|
313,029
|
|
||
Total assets
|
$
|
5,032,985
|
|
|
$
|
4,480,595
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
102,197
|
|
|
$
|
88,677
|
|
Accrued liabilities
|
263,076
|
|
|
284,429
|
|
||
Current portion of program rights obligations
|
327,549
|
|
|
300,845
|
|
||
Deferred revenue
|
46,433
|
|
|
53,643
|
|
||
Current portion of long-term debt
|
—
|
|
|
222,000
|
|
||
Current portion of capital lease obligations
|
4,847
|
|
|
4,584
|
|
||
Total current liabilities
|
744,102
|
|
|
954,178
|
|
||
Program rights obligations
|
534,980
|
|
|
398,175
|
|
||
Long-term debt, net
|
3,099,257
|
|
|
2,597,263
|
|
||
Capital lease obligations
|
26,277
|
|
|
35,282
|
|
||
Deferred tax liability, net
|
109,698
|
|
|
145,791
|
|
||
Other liabilities
|
136,122
|
|
|
132,219
|
|
||
Total liabilities
|
4,650,436
|
|
|
4,262,908
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
218,604
|
|
|
219,331
|
|
||
Stockholders' equity (deficiency):
|
|
|
|
||||
Class A Common Stock, $0.01 par value, 360,000 shares authorized, 62,721 and 62,409 shares issued and 49,601 and 57,079 shares outstanding, respectively
|
627
|
|
|
624
|
|
||
Class B Common Stock, $0.01 par value, 90,000 shares authorized 11,484 shares issued and outstanding
|
115
|
|
|
115
|
|
||
Preferred stock, $0.01 par value, 45,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Paid-in capital
|
191,303
|
|
|
142,798
|
|
||
Accumulated earnings
|
766,725
|
|
|
295,409
|
|
||
Treasury stock, at cost (13,120 and 5,330 shares Class A Common Stock, respectively)
|
(709,440
|
)
|
|
(275,230
|
)
|
||
Accumulated other comprehensive loss
|
(114,386
|
)
|
|
(193,798
|
)
|
||
Total AMC Networks stockholders' equity (deficiency)
|
134,944
|
|
|
(30,082
|
)
|
||
Non-redeemable noncontrolling interests
|
29,001
|
|
|
28,438
|
|
||
Total stockholders' equity (deficiency)
|
163,945
|
|
|
(1,644
|
)
|
||
Total liabilities and stockholders' equity (deficiency)
|
$
|
5,032,985
|
|
|
$
|
4,480,595
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Revenues, net (including revenues, net from related parties of $6,168, $15,873 and $27,508, respectively)
|
$
|
2,805,691
|
|
|
$
|
2,755,654
|
|
|
$
|
2,580,935
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Technical and operating (excluding depreciation and amortization)
|
1,341,076
|
|
|
1,279,984
|
|
|
1,137,133
|
|
|||
Selling, general and administrative (including charges from related parties of $1,524, $3,086 and $4,903, respectively)
|
613,342
|
|
|
636,028
|
|
|
636,580
|
|
|||
Depreciation and amortization
|
94,638
|
|
|
84,778
|
|
|
83,031
|
|
|||
Impairment and related charges
|
28,148
|
|
|
67,805
|
|
|
—
|
|
|||
Restructuring expense
|
6,128
|
|
|
29,503
|
|
|
14,998
|
|
|||
Total operating expenses
|
2,083,332
|
|
|
2,098,098
|
|
|
1,871,742
|
|
|||
Operating income
|
722,359
|
|
|
657,556
|
|
|
709,193
|
|
|||
Other income (expense):
|
|
|
|
|
|
||||||
Interest expense
|
(134,001
|
)
|
|
(123,632
|
)
|
|
(128,135
|
)
|
|||
Interest income
|
14,704
|
|
|
5,064
|
|
|
2,427
|
|
|||
Loss on extinguishment of debt
|
(3,004
|
)
|
|
(50,639
|
)
|
|
—
|
|
|||
Miscellaneous, net
|
40,320
|
|
|
(33,524
|
)
|
|
(691
|
)
|
|||
Total other income (expense)
|
(81,981
|
)
|
|
(202,731
|
)
|
|
(126,399
|
)
|
|||
Income from operations before income taxes
|
640,378
|
|
|
454,825
|
|
|
582,794
|
|
|||
Income tax expense
|
(150,741
|
)
|
|
(164,862
|
)
|
|
(201,090
|
)
|
|||
Net income including noncontrolling interests
|
489,637
|
|
|
289,963
|
|
|
381,704
|
|
|||
Net income attributable to noncontrolling interests
|
(18,321
|
)
|
|
(19,453
|
)
|
|
(14,916
|
)
|
|||
Net income attributable to AMC Networks' stockholders
|
$
|
471,316
|
|
|
$
|
270,510
|
|
|
$
|
366,788
|
|
|
|
|
|
|
|
||||||
Net income per share attributable to AMC Networks' stockholders:
|
|
|
|
|
|
||||||
Basic
|
$
|
7.26
|
|
|
$
|
3.77
|
|
|
$
|
5.06
|
|
Diluted
|
$
|
7.18
|
|
|
$
|
3.74
|
|
|
$
|
5.01
|
|
|
|
|
|
|
|
||||||
Weighted average common shares:
|
|
|
|
|
|
||||||
Basic
|
64,905
|
|
|
71,746
|
|
|
72,420
|
|
|||
Diluted
|
65,625
|
|
|
72,410
|
|
|
73,190
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net income including noncontrolling interests
|
$
|
489,637
|
|
|
$
|
289,963
|
|
|
$
|
381,704
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Foreign currency translation adjustment
|
76,023
|
|
|
(45,426
|
)
|
|
(55,852
|
)
|
|||
Unrealized (loss) gain on interest rate swaps
|
(35
|
)
|
|
22
|
|
|
3,365
|
|
|||
Unrealized gain on available for sale securities
|
5,398
|
|
|
—
|
|
|
—
|
|
|||
Other comprehensive income (loss), before income taxes
|
81,386
|
|
|
(45,404
|
)
|
|
(52,487
|
)
|
|||
Income tax expense
|
(1,974
|
)
|
|
(12,337
|
)
|
|
(4,322
|
)
|
|||
Other comprehensive income (loss), net of income taxes
|
79,412
|
|
|
(57,741
|
)
|
|
(56,809
|
)
|
|||
Comprehensive income
|
569,049
|
|
|
232,222
|
|
|
324,895
|
|
|||
Comprehensive income attributable to noncontrolling interests
|
(21,430
|
)
|
|
(16,491
|
)
|
|
(13,123
|
)
|
|||
Comprehensive income attributable to AMC Networks' stockholders
|
$
|
547,619
|
|
|
$
|
215,731
|
|
|
$
|
311,772
|
|
|
Class A
Common Stock |
|
Class B
Common Stock |
|
Paid-in
Capital |
|
Accumulated Earnings
(Deficit) |
|
Treasury
Stock |
|
Accumulated
Other Comprehensive Loss |
|
Total AMC Networks Stockholders'
Equity (Deficiency) |
|
Non-redeemable Noncontrolling
Interests |
|
Total Stockholders'
Equity (Deficiency) |
|||||||||
Balance, December 31, 2014
|
618
|
|
|
115
|
|
|
100,642
|
|
|
(341,889
|
)
|
|
(51,993
|
)
|
|
(79,248
|
)
|
|
(371,755
|
)
|
|
19,846
|
|
|
(351,909
|
)
|
Net income attributable to AMC Networks' stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
366,788
|
|
|
—
|
|
|
—
|
|
|
366,788
|
|
|
—
|
|
|
366,788
|
|
Non-redeemable noncontrolling interests changes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,587
|
|
|
6,587
|
|
Net income attributable to non-redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,677
|
|
|
4,677
|
|
Contribution from noncontrolling member
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,322
|
|
|
1,322
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(56,809
|
)
|
|
(56,809
|
)
|
|
(1,793
|
)
|
|
(58,602
|
)
|
Share-based compensation expense
|
—
|
|
|
—
|
|
|
31,020
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,020
|
|
|
—
|
|
|
31,020
|
|
Proceeds from the exercise of stock options
|
1
|
|
|
—
|
|
|
1,339
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,340
|
|
|
—
|
|
|
1,340
|
|
Restricted stock units converted to shares
|
2
|
|
|
—
|
|
|
(14,454
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,452
|
)
|
|
—
|
|
|
(14,452
|
)
|
Excess tax benefits on share-based awards
|
—
|
|
|
—
|
|
|
4,610
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,610
|
|
|
—
|
|
|
4,610
|
|
Balance, December 31, 2015
|
621
|
|
|
115
|
|
|
123,157
|
|
|
24,880
|
|
|
(51,993
|
)
|
|
(136,057
|
)
|
|
(39,277
|
)
|
|
30,639
|
|
|
(8,638
|
)
|
Net income attributable to AMC Networks' stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
270,510
|
|
|
—
|
|
|
—
|
|
|
270,510
|
|
|
—
|
|
|
270,510
|
|
Non-redeemable noncontrolling interests changes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(97
|
)
|
|
(97
|
)
|
Net income attributable to non-redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,784
|
|
|
2,784
|
|
Distribution to noncontrolling member
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,926
|
)
|
|
(1,926
|
)
|
Treasury stock not yet settled and other
|
—
|
|
|
—
|
|
|
(10,454
|
)
|
|
19
|
|
|
—
|
|
|
—
|
|
|
(10,435
|
)
|
|
—
|
|
|
(10,435
|
)
|
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57,741
|
)
|
|
(57,741
|
)
|
|
(2,962
|
)
|
|
(60,703
|
)
|
Share-based compensation expense
|
—
|
|
|
—
|
|
|
38,897
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,897
|
|
|
—
|
|
|
38,897
|
|
Proceeds from the exercise of stock options
|
1
|
|
|
—
|
|
|
1,227
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,228
|
|
|
—
|
|
|
1,228
|
|
Treasury stock acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(223,237
|
)
|
|
—
|
|
|
(223,237
|
)
|
|
—
|
|
|
(223,237
|
)
|
Restricted stock units converted to shares
|
2
|
|
|
—
|
|
|
(10,824
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,822
|
)
|
|
—
|
|
|
(10,822
|
)
|
Excess tax benefits on share-based awards
|
—
|
|
|
—
|
|
|
795
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
795
|
|
|
—
|
|
|
795
|
|
Balance, December 31, 2016
|
624
|
|
|
115
|
|
|
142,798
|
|
|
295,409
|
|
|
(275,230
|
)
|
|
(193,798
|
)
|
|
(30,082
|
)
|
|
28,438
|
|
|
(1,644
|
)
|
Net income attributable to AMC Networks' stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
471,316
|
|
|
—
|
|
|
—
|
|
|
471,316
|
|
|
—
|
|
|
471,316
|
|
Net income attributable to non-redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
524
|
|
|
524
|
|
Distribution to noncontrolling member
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,070
|
)
|
|
(3,070
|
)
|
Treasury stock not yet settled
|
—
|
|
|
—
|
|
|
(995
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(995
|
)
|
|
—
|
|
|
(995
|
)
|
Settlement of treasury stock
|
—
|
|
|
—
|
|
|
10,454
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,454
|
|
|
—
|
|
|
10,454
|
|
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79,412
|
|
|
79,412
|
|
|
3,109
|
|
|
82,521
|
|
Share-based compensation expense
|
—
|
|
|
—
|
|
|
53,545
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,545
|
|
|
—
|
|
|
53,545
|
|
Treasury stock acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(434,210
|
)
|
|
—
|
|
|
(434,210
|
)
|
|
—
|
|
|
(434,210
|
)
|
Restricted stock units converted to shares
|
3
|
|
|
—
|
|
|
(14,499
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,496
|
)
|
|
—
|
|
|
(14,496
|
)
|
Balance, December 31, 2017
|
627
|
|
|
115
|
|
|
191,303
|
|
|
766,725
|
|
|
(709,440
|
)
|
|
(114,386
|
)
|
|
134,944
|
|
|
29,001
|
|
|
163,945
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income including noncontrolling interests
|
$
|
489,637
|
|
|
$
|
289,963
|
|
|
$
|
381,704
|
|
Adjustments to reconcile income from operations to net cash from operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
94,638
|
|
|
84,778
|
|
|
83,031
|
|
|||
Impairment and related charges
|
17,112
|
|
|
67,805
|
|
|
—
|
|
|||
Share-based compensation expense related to equity classified awards
|
53,545
|
|
|
38,897
|
|
|
31,020
|
|
|||
Amortization and write-off of program rights
|
954,238
|
|
|
862,302
|
|
|
748,545
|
|
|||
Amortization of deferred carriage fees
|
17,605
|
|
|
16,990
|
|
|
16,018
|
|
|||
Unrealized foreign currency transaction (gain) loss
|
(15,258
|
)
|
|
37,770
|
|
|
26,775
|
|
|||
Unrealized (gain) loss on derivative contracts, net
|
(27,233
|
)
|
|
(1,920
|
)
|
|
2,015
|
|
|||
Amortization and write-off of deferred financing costs and discounts on indebtedness
|
8,436
|
|
|
9,341
|
|
|
9,003
|
|
|||
Loss on extinguishment of debt
|
3,004
|
|
|
50,639
|
|
|
—
|
|
|||
Provision for doubtful accounts
|
3,567
|
|
|
1,924
|
|
|
1,705
|
|
|||
Deferred income taxes
|
(48,665
|
)
|
|
11,642
|
|
|
19,616
|
|
|||
Excess tax benefits from share-based compensation arrangements
|
—
|
|
|
(789
|
)
|
|
(4,610
|
)
|
|||
Gain on investments
|
—
|
|
|
—
|
|
|
(16,632
|
)
|
|||
Other, net
|
(11,014
|
)
|
|
(6,383
|
)
|
|
857
|
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable, trade (including amounts due from related parties, net)
|
(74,561
|
)
|
|
(26,496
|
)
|
|
(110,964
|
)
|
|||
Prepaid expenses and other assets
|
(59,979
|
)
|
|
(4,981
|
)
|
|
(24,355
|
)
|
|||
Program rights and obligations, net
|
(996,816
|
)
|
|
(973,193
|
)
|
|
(839,123
|
)
|
|||
Income taxes payable
|
(21,966
|
)
|
|
43,153
|
|
|
(4,796
|
)
|
|||
Deferred revenue
|
(11,553
|
)
|
|
(9,836
|
)
|
|
27,495
|
|
|||
Deferred carriage fees, net
|
(4,617
|
)
|
|
(10,396
|
)
|
|
(19,616
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
15,609
|
|
|
33,115
|
|
|
42,351
|
|
|||
Net cash provided by operating activities
|
385,729
|
|
|
514,325
|
|
|
370,039
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Capital expenditures
|
(80,049
|
)
|
|
(79,220
|
)
|
|
(68,321
|
)
|
|||
Return of capital from investees
|
2,447
|
|
|
—
|
|
|
—
|
|
|||
Payments for acquisitions, net of cash acquired
|
—
|
|
|
(354
|
)
|
|
(24,199
|
)
|
|||
Investments in and loans to investees
|
(53,000
|
)
|
|
(95,000
|
)
|
|
(24,250
|
)
|
|||
Net cash used in investing activities
|
(130,602
|
)
|
|
(174,574
|
)
|
|
(116,770
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from the issuance of long-term debt
|
1,536,000
|
|
|
982,500
|
|
|
—
|
|
|||
Repayment of long-term debt
|
(1,257,965
|
)
|
|
(848,000
|
)
|
|
(74,000
|
)
|
|||
Payment of promissory note
|
—
|
|
|
—
|
|
|
(40,000
|
)
|
|||
Premium and fees paid on extinguishment of debt
|
—
|
|
|
(40,954
|
)
|
|
—
|
|
|||
Payments for financing costs
|
(10,405
|
)
|
|
(2,070
|
)
|
|
—
|
|
|||
Deemed repurchase of restricted stock/units
|
(14,496
|
)
|
|
(10,822
|
)
|
|
(14,452
|
)
|
|||
Purchase of treasury stock
|
(434,210
|
)
|
|
(223,237
|
)
|
|
—
|
|
|||
Proceeds from stock option exercises
|
—
|
|
|
1,228
|
|
|
1,340
|
|
|||
Excess tax benefits from share-based compensation arrangements
|
—
|
|
|
789
|
|
|
4,610
|
|
|||
Principal payments on capital lease obligations
|
(4,573
|
)
|
|
(4,288
|
)
|
|
(2,945
|
)
|
|||
Distributions to noncontrolling interest
|
(18,561
|
)
|
|
(9,010
|
)
|
|
(3,154
|
)
|
|||
Contributions from noncontrolling interest
|
—
|
|
|
—
|
|
|
1,322
|
|
|||
Net cash used in financing activities
|
(204,210
|
)
|
|
(153,864
|
)
|
|
(127,279
|
)
|
|||
Net increase in cash and cash equivalents from operations
|
50,917
|
|
|
185,887
|
|
|
125,990
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
26,477
|
|
|
(20,819
|
)
|
|
(11,036
|
)
|
|||
Cash and cash equivalents at beginning of year
|
481,389
|
|
|
316,321
|
|
|
201,367
|
|
|||
Cash and cash equivalents at end of year
|
$
|
558,783
|
|
|
$
|
481,389
|
|
|
$
|
316,321
|
|
•
|
National Networks:
Includes activities of our
five
national programming networks, AMC Studios operations and AMC Broadcasting & Technology. Our national programming networks are AMC, WE tv, BBC AMERICA, IFC, and SundanceTV in the U.S.; and AMC, IFC and Sundance Channel in Canada. Our AMC Studios operations produces original programming for our programming networks and also licenses such program rights worldwide. AMC Networks Broadcasting & Technology is our technical services business, which primarily services most of the national programming networks.
|
•
|
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 (the AMCNI – DMC business was sold on July 12, 2017); and our subscription streaming services, Sundance Now and Shudder.
|
(In thousands)
|
Years Ended December 31,
|
|||||||
2017
|
|
2016
|
|
2015
|
||||
Basic weighted average shares outstanding
|
64,905
|
|
|
71,746
|
|
|
72,420
|
|
Effect of dilution:
|
|
|
|
|
|
|||
Stock options
|
1
|
|
|
13
|
|
|
148
|
|
Restricted stock units
|
719
|
|
|
651
|
|
|
622
|
|
Diluted weighted average shares outstanding
|
65,625
|
|
|
72,410
|
|
|
73,190
|
|
|
Shares Outstanding
|
||||
(In thousands)
|
Class A
Common Stock
|
|
Class B
Common Stock
|
||
Balance at December 31, 2014
|
60,553
|
|
|
11,484
|
|
Employee and non-employee director stock transactions*
|
357
|
|
|
—
|
|
Balance at December 31, 2015
|
60,910
|
|
|
11,484
|
|
Share repurchases
|
(4,120
|
)
|
|
—
|
|
Employee and non-employee director stock transactions*
|
289
|
|
|
—
|
|
Balance at December 31, 2016
|
57,079
|
|
|
11,484
|
|
Share repurchases
|
(7,790
|
)
|
|
—
|
|
Employee and non-employee director stock transactions*
|
312
|
|
|
—
|
|
Balance at December 31, 2017
|
49,601
|
|
|
11,484
|
|
(In thousands)
|
Year Ended December 31, 2017
|
|
Year Ended December 31, 2016
|
|
Year Ended December 31, 2015
|
||||||
National Networks
|
$
|
(53
|
)
|
|
$
|
8,516
|
|
|
$
|
3,194
|
|
International & Other
|
6,181
|
|
|
20,987
|
|
|
11,804
|
|
|||
Total restructuring expense
|
$
|
6,128
|
|
|
$
|
29,503
|
|
|
$
|
14,998
|
|
(In thousands)
|
Severance and Employee-Related Costs
|
|
Other Exit Costs
|
|
Total
|
||||||
Balance at December 31, 2015
|
$
|
9,498
|
|
|
$
|
512
|
|
|
$
|
10,010
|
|
Charges
|
23,557
|
|
|
5,946
|
|
|
29,503
|
|
|||
Cash payments
|
(20,871
|
)
|
|
(935
|
)
|
|
(21,806
|
)
|
|||
Non-cash adjustments
|
12
|
|
|
(5,315
|
)
|
|
(5,303
|
)
|
|||
Currency translation
|
(90
|
)
|
|
(3
|
)
|
|
(93
|
)
|
|||
Balance at December 31, 2016
|
$
|
12,106
|
|
|
$
|
205
|
|
|
$
|
12,311
|
|
Charges
|
2,543
|
|
|
3,585
|
|
|
6,128
|
|
|||
Cash payments
|
(13,440
|
)
|
|
(152
|
)
|
|
(13,592
|
)
|
|||
Non-cash adjustments
|
2
|
|
|
(3,585
|
)
|
|
(3,583
|
)
|
|||
Currency translation
|
1
|
|
|
(29
|
)
|
|
(28
|
)
|
|||
Balance at December 31, 2017
|
$
|
1,212
|
|
|
$
|
24
|
|
|
$
|
1,236
|
|
(In thousands)
|
|
||
Years Ending December 31,
|
|
||
2018
|
$
|
327,549
|
|
2019
|
217,457
|
|
|
2020
|
163,640
|
|
|
2021
|
74,796
|
|
|
2022
|
48,941
|
|
|
Thereafter
|
30,146
|
|
|
|
$
|
862,529
|
|
(In thousands)
|
December 31,
|
|
Estimated
Useful Lives
|
||||||
2017
|
|
2016
|
|
||||||
Program, service and test equipment
|
$
|
212,357
|
|
|
$
|
223,847
|
|
|
2 to 5 years
|
Satellite equipment
|
46,315
|
|
|
51,423
|
|
|
13 years
|
||
Furniture and fixtures
|
21,067
|
|
|
21,471
|
|
|
5 to 8 years
|
||
Transmission equipment
|
56,035
|
|
|
51,954
|
|
|
5 years
|
||
Leasehold improvements
|
107,659
|
|
|
90,089
|
|
|
Term of lease
|
||
Property and equipment
|
443,433
|
|
|
438,784
|
|
|
|
||
Accumulated depreciation and amortization
|
(259,919
|
)
|
|
(272,148
|
)
|
|
|
||
Property and equipment, net
|
$
|
183,514
|
|
|
$
|
166,636
|
|
|
|
(In thousands)
|
December 31,
|
||||||
2017
|
|
2016
|
|||||
Satellite equipment
|
$
|
46,315
|
|
|
$
|
51,423
|
|
Less accumulated amortization
|
(22,783
|
)
|
|
(19,031
|
)
|
||
|
$
|
23,532
|
|
|
$
|
32,392
|
|
(In thousands)
|
National Networks
|
|
International
and Other
|
|
Total
|
||||||
December 31, 2015
|
$
|
244,849
|
|
|
$
|
491,426
|
|
|
$
|
736,275
|
|
Purchase accounting adjustments
|
—
|
|
|
(6,040
|
)
|
|
(6,040
|
)
|
|||
Impairment charges (see Note 3)
|
—
|
|
|
(27,244
|
)
|
|
(27,244
|
)
|
|||
Amortization of "second component" goodwill
|
(2,546
|
)
|
|
—
|
|
|
(2,546
|
)
|
|||
Foreign currency translation
|
—
|
|
|
(42,737
|
)
|
|
(42,737
|
)
|
|||
December 31, 2016
|
$
|
242,303
|
|
|
$
|
415,405
|
|
|
$
|
657,708
|
|
Amortization of "second component" goodwill
|
(2,544
|
)
|
|
—
|
|
|
(2,544
|
)
|
|||
Foreign currency translation
|
—
|
|
|
39,994
|
|
|
39,994
|
|
|||
December 31, 2017
|
$
|
239,759
|
|
|
$
|
455,399
|
|
|
$
|
695,158
|
|
(In thousands)
|
December 31, 2017
|
|
Estimated
Useful Lives
|
||||||||||
Gross
|
|
Accumulated
Amortization
|
|
Net
|
|
||||||||
Amortizable intangible assets:
|
|
|
|
|
|
|
|
||||||
Affiliate and customer relationships
|
$
|
527,713
|
|
|
$
|
(167,911
|
)
|
|
$
|
359,802
|
|
|
6 to 25 years
|
Advertiser relationships
|
46,282
|
|
|
(13,405
|
)
|
|
32,877
|
|
|
11 years
|
|||
Trade names
|
53,761
|
|
|
(14,420
|
)
|
|
39,341
|
|
|
20 years
|
|||
Other amortizable intangible assets
|
11,401
|
|
|
(6,079
|
)
|
|
5,322
|
|
|
2 to 15 years
|
|||
Total amortizable intangible assets
|
639,157
|
|
|
(201,815
|
)
|
|
437,342
|
|
|
|
|||
Indefinite-lived intangible assets:
|
|
|
|
|
|
|
|
||||||
Trademarks
|
19,900
|
|
|
—
|
|
|
19,900
|
|
|
|
|||
Total intangible assets
|
$
|
659,057
|
|
|
$
|
(201,815
|
)
|
|
$
|
457,242
|
|
|
|
(In thousands)
|
December 31, 2016
|
|
|
||||||||||
Gross
|
|
Accumulated
Amortization
|
|
Net
|
|
|
|||||||
Amortizable intangible assets:
|
|
|
|
|
|
|
|
||||||
Affiliate and customer relationships
|
$
|
509,992
|
|
|
$
|
(133,932
|
)
|
|
$
|
376,060
|
|
|
|
Advertiser relationships
|
46,282
|
|
|
(9,198
|
)
|
|
37,084
|
|
|
|
|||
Trade names
|
49,720
|
|
|
(6,307
|
)
|
|
43,413
|
|
|
|
|||
Other amortizable intangible assets
|
10,002
|
|
|
(791
|
)
|
|
9,211
|
|
|
|
|||
Total amortizable intangible assets
|
615,996
|
|
|
(150,228
|
)
|
|
465,768
|
|
|
|
|||
Indefinite-lived intangible assets:
|
|
|
|
|
|
|
|
||||||
Trademarks
|
20,041
|
|
|
—
|
|
|
20,041
|
|
|
|
|||
Total intangible assets
|
$
|
636,037
|
|
|
$
|
(150,228
|
)
|
|
$
|
485,809
|
|
|
|
(In thousands)
|
December 31, 2017
|
|
December 31, 2016
|
||||
Interest
|
$
|
30,262
|
|
|
$
|
15,770
|
|
Employee related costs
|
117,850
|
|
|
122,590
|
|
||
Income taxes payable
|
19,558
|
|
|
43,083
|
|
||
Other accrued expenses
|
95,406
|
|
|
102,986
|
|
||
Total accrued liabilities
|
$
|
263,076
|
|
|
$
|
284,429
|
|
(In thousands)
|
December 31, 2017
|
|
December 31, 2016
|
||||
Senior Secured Credit Facility:
|
|
|
|
||||
Term Loan A Facility
|
$
|
750,000
|
|
|
$
|
1,258,000
|
|
Senior Notes:
|
|
|
|
||||
4.75% Notes due August 2025
|
800,000
|
|
|
—
|
|
||
5.00% Notes due April 2024
|
1,000,000
|
|
|
1,000,000
|
|
||
4.75% Notes due December 2022
|
600,000
|
|
|
600,000
|
|
||
Total long-term debt
|
3,150,000
|
|
|
2,858,000
|
|
||
Unamortized discount
|
(33,776
|
)
|
|
(23,675
|
)
|
||
Unamortized deferred financing costs
|
(16,967
|
)
|
|
(15,062
|
)
|
||
Long-term debt, net
|
3,099,257
|
|
|
2,819,263
|
|
||
Current portion of long-term debt
|
—
|
|
|
222,000
|
|
||
Noncurrent portion of long-term debt
|
$
|
3,099,257
|
|
|
$
|
2,597,263
|
|
(In thousands)
|
|
||
Years Ending December 31,
|
|
||
2018
|
$
|
—
|
|
2019
|
18,750
|
|
|
2020
|
56,250
|
|
|
2021
|
775,000
|
|
|
2022
|
75,000
|
|
|
Thereafter
|
2,225,000
|
|
•
|
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.
|
(In thousands)
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
||||||||
At December 31, 2017:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
|
$
|
100,615
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
100,615
|
|
Available for sale securities
|
|
10,709
|
|
|
—
|
|
|
—
|
|
|
10,709
|
|
||||
Interest rate swap contracts
|
|
—
|
|
|
1,444
|
|
|
—
|
|
|
1,444
|
|
||||
Investments
|
|
9,948
|
|
|
—
|
|
|
—
|
|
|
9,948
|
|
||||
Foreign currency derivatives
|
|
—
|
|
|
3,801
|
|
|
—
|
|
|
3,801
|
|
||||
Other derivatives
|
|
—
|
|
|
6,174
|
|
|
30,891
|
|
|
37,065
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency derivatives
|
|
$
|
—
|
|
|
$
|
4,475
|
|
|
$
|
—
|
|
|
$
|
4,475
|
|
At December 31, 2016:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
|
$
|
65,384
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
65,384
|
|
Interest rate swap contracts
|
|
—
|
|
|
1,471
|
|
|
—
|
|
|
1,471
|
|
||||
Foreign currency derivatives
|
|
—
|
|
|
6,096
|
|
|
—
|
|
|
6,096
|
|
||||
Other derivatives
|
|
—
|
|
|
—
|
|
|
12,308
|
|
|
12,308
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
|
$
|
—
|
|
|
$
|
762
|
|
|
$
|
—
|
|
|
$
|
762
|
|
Foreign currency derivatives
|
|
—
|
|
|
3,147
|
|
|
—
|
|
|
3,147
|
|
(In thousands)
|
December 31, 2017
|
||||||
Carrying
Amount
|
|
Estimated
Fair Value
|
|||||
Debt instruments:
|
|
|
|
||||
Term Loan A Facility
|
$
|
737,140
|
|
|
$
|
748,125
|
|
4.75% Notes due August 2025
|
784,757
|
|
|
793,000
|
|
||
5.00% Notes due April 2024
|
984,056
|
|
|
1,012,500
|
|
||
4.75% Notes due December 2022
|
593,304
|
|
|
612,750
|
|
||
|
$
|
3,099,257
|
|
|
$
|
3,166,375
|
|
(In thousands)
|
December 31, 2016
|
||||||
Carrying
Amount |
|
Estimated
Fair Value |
|||||
Debt instruments:
|
|
|
|
||||
Term loan A facility
|
$
|
1,245,175
|
|
|
$
|
1,254,855
|
|
5.00% Notes due April 2024
|
981,949
|
|
|
1,002,500
|
|
||
4.75% Notes due December 2022
|
592,139
|
|
|
606,000
|
|
||
|
$
|
2,819,263
|
|
|
$
|
2,863,355
|
|
(In thousands)
|
Balance Sheet Location
|
|
December 31,
|
||||||
|
|
2017
|
|
2016
|
|||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
||||
Interest rate swap contracts
|
Other assets
|
|
$
|
—
|
|
|
$
|
1,471
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||||
Assets:
|
|
|
|
|
|
||||
Foreign currency derivatives
|
Prepaid expenses and other current assets
|
|
943
|
|
|
1,684
|
|
||
Foreign currency derivatives
|
Other assets
|
|
2,858
|
|
|
4,412
|
|
||
Interest rate swap contracts
|
Other assets
|
|
1,444
|
|
|
—
|
|
||
Other derivatives
|
Other assets
|
|
37,065
|
|
|
12,308
|
|
||
Liabilities:
|
|
|
|
|
|
||||
Interest rate swap contracts
|
Accrued liabilities
|
|
—
|
|
|
762
|
|
||
Foreign currency derivatives
|
Accrued liabilities
|
|
1,223
|
|
|
952
|
|
||
Foreign currency derivatives
|
Other liabilities
|
|
3,252
|
|
|
2,195
|
|
(In thousands)
|
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) |
||||||||||||
Years Ended December 31,
|
|
|
|
Years Ended December 31,
|
|||||||||||||
2017
|
|
2016
|
|
|
|
2017
|
|
2016
|
|||||||||
Derivatives in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
$
|
565
|
|
|
$
|
(565
|
)
|
|
Interest expense
|
|
$
|
600
|
|
|
$
|
(587
|
)
|
(a)
|
There were no gains or losses recognized in earnings related to any ineffective portion of the hedging relationship or related to any amount excluded from the assessment of hedge effectiveness for the years ended
December 31, 2017
and
2016
.
|
(In thousands)
|
Location of Gain (Loss) Recognized in Earnings on Derivatives
|
|
Amount of Gain (Loss) Recognized in Earnings
on Derivatives
|
||||||
|
|
Years Ended December 31,
|
|||||||
|
|
2017
|
|
2016
|
|||||
Derivatives not designated as hedging relationships:
|
|
|
|
|
|
||||
Interest rate swap contracts
|
Interest expense
|
|
$
|
3
|
|
|
$
|
(238
|
)
|
Foreign currency derivatives
|
Miscellaneous, net
|
|
(2,958
|
)
|
|
3,234
|
|
||
Other derivatives
|
Miscellaneous, net
|
|
24,223
|
|
|
(892
|
)
|
||
Total
|
|
|
$
|
21,268
|
|
|
$
|
2,104
|
|
(In thousands)
|
|
||
2018
|
$
|
7,901
|
|
2019
|
7,033
|
|
|
2020
|
5,983
|
|
|
2021
|
4,511
|
|
|
2022
|
4,539
|
|
|
Thereafter
|
14,447
|
|
|
Total minimum lease payments
|
44,414
|
|
|
Less amount representing interest (at 8.2%-12%)
|
(13,290
|
)
|
|
Present value of net minimum future capital lease payments
|
31,124
|
|
|
Less principal portion of current installments
|
(4,847
|
)
|
|
Long-term portion of obligations under capital leases
|
$
|
26,277
|
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
2017
|
|
2016
|
|
2015
|
|||||||
Domestic
|
$
|
618,955
|
|
|
$
|
500,757
|
|
|
$
|
566,444
|
|
Foreign
|
21,423
|
|
|
(45,932
|
)
|
|
16,350
|
|
|||
Total
|
$
|
640,378
|
|
|
$
|
454,825
|
|
|
$
|
582,794
|
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
2017
|
|
2016
|
|
2015
|
|||||||
Current expense (benefit):
|
|
|
|
|
|
||||||
Federal
|
$
|
162,639
|
|
|
$
|
120,634
|
|
|
$
|
146,915
|
|
State
|
14,301
|
|
|
11,252
|
|
|
15,713
|
|
|||
Foreign
|
17,382
|
|
|
22,946
|
|
|
14,508
|
|
|||
|
194,322
|
|
|
154,832
|
|
|
177,136
|
|
|||
Deferred expense (benefit):
|
|
|
|
|
|
||||||
Federal
|
(38,416
|
)
|
|
12,140
|
|
|
12,563
|
|
|||
State
|
(2,436
|
)
|
|
2,515
|
|
|
1,300
|
|
|||
Foreign
|
(7,813
|
)
|
|
(3,013
|
)
|
|
5,753
|
|
|||
|
(48,665
|
)
|
|
11,642
|
|
|
19,616
|
|
|||
Tax expense (benefit) relating to uncertain tax positions, including accrued interest
|
5,084
|
|
|
(1,612
|
)
|
|
4,338
|
|
|||
Income tax expense
|
$
|
150,741
|
|
|
$
|
164,862
|
|
|
$
|
201,090
|
|
(In thousands)
|
Years Ended December 31,
|
|||||||
2017
|
|
2016
|
|
2015
|
||||
U.S. federal statutory income tax rate
|
35
|
%
|
|
35
|
%
|
|
35
|
%
|
State and local income taxes, net of federal benefit
|
2
|
|
|
2
|
|
|
2
|
|
Effect of foreign operations
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
Effect of rate changes on deferred taxes
|
(11
|
)
|
|
—
|
|
|
—
|
|
Transition tax, net of foreign taxes deemed paid
|
2
|
|
|
—
|
|
|
—
|
|
Nontaxable income attributable to noncontrolling interests
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
Changes in the valuation allowance
|
—
|
|
|
5
|
|
|
1
|
|
Domestic production activity deduction
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
Tax expense relating to uncertain tax positions, including accrued interest, net of deferred tax benefits
|
1
|
|
|
(1
|
)
|
|
1
|
|
Other
|
—
|
|
|
—
|
|
|
1
|
|
Effective income tax rate
|
24
|
%
|
|
36
|
%
|
|
34
|
%
|
(In thousands)
|
December 31,
|
||||||
2017
|
|
2016
|
|||||
Deferred Tax Asset (Liability)
|
|
|
|
||||
Noncurrent
|
|
|
|
||||
NOLs and tax credit carry forwards
|
$
|
69,771
|
|
|
$
|
82,636
|
|
Compensation and benefit plans
|
30,880
|
|
|
49,710
|
|
||
Allowance for doubtful accounts
|
370
|
|
|
421
|
|
||
Fixed assets and intangible assets
|
24,737
|
|
|
46,595
|
|
||
Interest rate swap contracts
|
1,893
|
|
|
2,884
|
|
||
Accrued interest expense
|
13,049
|
|
|
11,567
|
|
||
Other liabilities
|
12,562
|
|
|
20,811
|
|
||
Deferred tax asset
|
153,262
|
|
|
214,624
|
|
||
Valuation allowance
|
(57,121
|
)
|
|
(71,563
|
)
|
||
Net deferred tax asset, noncurrent
|
96,141
|
|
|
143,061
|
|
||
Prepaid liabilities
|
(501
|
)
|
|
(819
|
)
|
||
Fixed assets and intangible assets
|
(61,127
|
)
|
|
(78,616
|
)
|
||
Investments in partnerships
|
(103,474
|
)
|
|
(177,376
|
)
|
||
Other assets
|
(20,657
|
)
|
|
(23,444
|
)
|
||
Deferred tax liability, noncurrent
|
(185,759
|
)
|
|
(280,255
|
)
|
||
Total net deferred tax liability
|
$
|
(89,618
|
)
|
|
$
|
(137,194
|
)
|
(In thousands)
|
Payments due by period
|
||||||||||||||||||
Total
|
|
Year 1
|
|
Years
2 - 3
|
|
Years
4 - 5
|
|
More than
5 years
|
|||||||||||
Purchase obligations (1)
|
$
|
1,983,967
|
|
|
$
|
705,387
|
|
|
$
|
621,937
|
|
|
$
|
186,377
|
|
|
$
|
470,266
|
|
Guarantees (2)
|
160,024
|
|
|
160,024
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
2,143,991
|
|
|
$
|
865,411
|
|
|
$
|
621,937
|
|
|
$
|
186,377
|
|
|
$
|
470,266
|
|
(1)
|
Purchase obligations consist primarily of program rights obligations, participations and residuals, and transmission and marketing commitments.
|
(2)
|
Consists primarily of a guarantee of payments to a production service company for certain production related costs.
|
(In thousands)
|
Redeemable Noncontrolling Interest
|
||
December 31, 2015
|
$
|
211,691
|
|
Net earnings
|
16,669
|
|
|
Distributions
|
(9,010
|
)
|
|
Other
|
(19
|
)
|
|
December 31, 2016
|
$
|
219,331
|
|
Net earnings
|
17,797
|
|
|
Distributions
|
(18,561
|
)
|
|
Other
|
37
|
|
|
December 31, 2017
|
$
|
218,604
|
|
|
Number of
Restricted
Stock Units
|
|
Number of
Performance
Restricted
Stock Units
|
|
Weighted Average
Fair Value Per Stock Unit at Date of Grant
|
||||
Unvested award balance, December 31, 2015
|
853,386
|
|
|
683,393
|
|
|
$
|
70.07
|
|
Granted
|
493,659
|
|
|
767,693
|
|
|
$
|
60.73
|
|
Released/Vested
|
(257,114
|
)
|
|
(79,321
|
)
|
|
$
|
61.28
|
|
Canceled/Forfeited
|
(107,633
|
)
|
|
(17,304
|
)
|
|
$
|
71.19
|
|
Unvested award balance, December 31, 2016
|
982,298
|
|
|
1,354,461
|
|
|
$
|
66.23
|
|
Granted
|
586,600
|
|
|
642,139
|
|
|
$
|
59.78
|
|
Released/Vested
|
(392,892
|
)
|
|
(164,926
|
)
|
|
$
|
71.48
|
|
Canceled/Forfeited
|
(55,965
|
)
|
|
(15,527
|
)
|
|
$
|
68.15
|
|
Unvested award balance, December 31, 2017
|
1,120,041
|
|
|
1,816,147
|
|
|
$
|
62.53
|
|
|
Number of
Restricted
Stock Units
|
|
Weighted Average
Fair Value Per Stock Unit at Date of Grant |
|||
Vested award balance, December 31, 2015
|
127,555
|
|
|
$
|
51.33
|
|
Granted
|
27,066
|
|
|
$
|
61.69
|
|
Released/Vested
|
—
|
|
|
$
|
—
|
|
Vested award balance, December 31, 2016
|
154,621
|
|
|
$
|
53.15
|
|
Granted
|
32,825
|
|
|
$
|
53.48
|
|
Released/Vested
|
—
|
|
|
$
|
—
|
|
Vested award balance, December 31, 2017
|
187,446
|
|
|
$
|
53.20
|
|
|
Shares Under Option
|
|
Weighted
Average
Exercise Price
Per Share
|
|
Weighted
Average
Contractual
Term
(in years)
|
|
Aggregate
Intrinsic
Value(a)
|
|||||
|
Time
Vesting
Options
|
|
||||||||||
Balance, December 31, 2015
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
Granted
|
388,385
|
|
|
$
|
48.26
|
|
|
|
|
|
||
Balance, December 31, 2016
|
388,385
|
|
|
$
|
48.26
|
|
|
9.79
|
|
$
|
1,585
|
|
Granted
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||
Balance, December 31, 2017
|
388,385
|
|
|
$
|
48.26
|
|
|
8.79
|
|
$
|
2,260
|
|
Options exercisable at December 31, 2017
|
129,462
|
|
|
$
|
48.26
|
|
|
8.79
|
|
$
|
753
|
|
Options expected to vest in the future
|
258,923
|
|
|
$
|
48.26
|
|
|
8.79
|
|
$
|
1,507
|
|
(a)
|
The aggregate intrinsic value is calculated as the difference between (i) the exercise price of the underlying award and (ii) the quoted price of AMC Networks Class A Common Stock on
December 31, 2017
or
December 31, 2016
, as indicated.
|
(In thousands)
|
Years Ended December 31,
|
|||||||
2017
|
|
2016
|
|
2015
|
||||
Non-Cash Investing and Financing Activities:
|
|
|
|
|
|
|||
Continuing Operations:
|
|
|
|
|
|
|||
Increase in capital lease obligations
|
—
|
|
|
10,982
|
|
|
6,191
|
|
Treasury stock not yet settled
|
995
|
|
|
10,454
|
|
|
—
|
|
Exercise of RLJE Warrants
|
5,001
|
|
|
—
|
|
|
—
|
|
Capital expenditures incurred but not yet paid
|
5,889
|
|
|
6,988
|
|
|
6,423
|
|
Supplemental Data:
|
|
|
|
|
|
|||
Cash interest paid—continuing operations
|
110,650
|
|
|
128,319
|
|
|
120,394
|
|
Income taxes paid, net—continuing operations
|
219,425
|
|
|
106,476
|
|
|
186,725
|
|
(In thousands)
|
Year Ended December 31, 2017
|
||||||||||||||
Currency Translation Adjustment
|
|
Gains (Losses) on Cash Flow Hedges
|
|
Gains (Losses) on Available for Sale Investments
|
|
Accumulated Other Comprehensive Loss
|
|||||||||
Beginning Balance
|
$
|
(194,189
|
)
|
|
$
|
391
|
|
|
$
|
—
|
|
|
$
|
(193,798
|
)
|
Other comprehensive loss before reclassifications
|
76,023
|
|
|
565
|
|
|
5,398
|
|
|
81,986
|
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
(600
|
)
|
|
—
|
|
|
(600
|
)
|
||||
Net current-period other comprehensive (loss) income, before income taxes
|
76,023
|
|
|
(35
|
)
|
|
5,398
|
|
|
81,386
|
|
||||
Income tax expense
|
—
|
|
|
13
|
|
|
(1,987
|
)
|
|
(1,974
|
)
|
||||
Net current-period other comprehensive (loss) income, net of income taxes
|
76,023
|
|
|
(22
|
)
|
|
3,411
|
|
|
79,412
|
|
||||
Ending Balance
|
$
|
(118,166
|
)
|
|
$
|
369
|
|
|
$
|
3,411
|
|
|
$
|
(114,386
|
)
|
(In thousands)
|
Year Ended December 31, 2016
|
||||||||||
Currency Translation Adjustment
|
|
Gains (Losses) on Cash Flow Hedges
|
|
Accumulated Other Comprehensive Loss
|
|||||||
Beginning Balance
|
$
|
(136,434
|
)
|
|
$
|
377
|
|
|
$
|
(136,057
|
)
|
Other comprehensive loss before reclassifications
|
(45,426
|
)
|
|
(565
|
)
|
|
(45,991
|
)
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
587
|
|
|
587
|
|
|||
Net current-period other comprehensive (loss) income, before income taxes
|
(45,426
|
)
|
|
22
|
|
|
(45,404
|
)
|
|||
Income tax expense
|
(12,329
|
)
|
|
(8
|
)
|
|
(12,337
|
)
|
|||
Net current-period other comprehensive (loss) income, net of income taxes
|
(57,755
|
)
|
|
14
|
|
|
(57,741
|
)
|
|||
Ending Balance
|
$
|
(194,189
|
)
|
|
$
|
391
|
|
|
$
|
(193,798
|
)
|
(In thousands)
|
Year Ended December 31, 2017
|
||||||||||||||
National
Networks
|
|
International
and Other
|
|
Inter-segment
eliminations
|
|
Consolidated
|
|||||||||
Revenues, net
|
|
|
|
|
|
|
|
||||||||
Advertising
|
$
|
959,551
|
|
|
$
|
89,894
|
|
|
$
|
—
|
|
|
$
|
1,049,445
|
|
Distribution
|
1,408,064
|
|
|
367,288
|
|
|
(19,106
|
)
|
|
1,756,246
|
|
||||
Consolidated revenues, net
|
$
|
2,367,615
|
|
|
$
|
457,182
|
|
|
$
|
(19,106
|
)
|
|
$
|
2,805,691
|
|
Operating income (loss)
|
$
|
817,566
|
|
|
$
|
(88,894
|
)
|
|
$
|
(6,313
|
)
|
|
$
|
722,359
|
|
Share-based compensation expense
|
43,697
|
|
|
9,848
|
|
|
—
|
|
|
53,545
|
|
||||
Restructuring (credit) expense
|
(53
|
)
|
|
6,181
|
|
|
—
|
|
|
6,128
|
|
||||
Impairment and related charges
|
—
|
|
|
28,148
|
|
|
—
|
|
|
28,148
|
|
||||
Depreciation and amortization
|
33,702
|
|
|
60,936
|
|
|
—
|
|
|
94,638
|
|
||||
Adjusted operating income
|
$
|
894,912
|
|
|
$
|
16,219
|
|
|
$
|
(6,313
|
)
|
|
$
|
904,818
|
|
Capital expenditures
|
$
|
25,333
|
|
|
$
|
54,716
|
|
|
$
|
—
|
|
|
$
|
80,049
|
|
(In thousands)
|
Year Ended December 31, 2016
|
||||||||||||||
National
Networks
|
|
International
and Other
|
|
Inter-segment
eliminations
|
|
Consolidated
|
|||||||||
Revenues, net
|
|
|
|
|
|
|
|
||||||||
Advertising
|
$
|
990,508
|
|
|
$
|
94,467
|
|
|
$
|
(1,000
|
)
|
|
$
|
1,083,975
|
|
Distribution
|
1,320,532
|
|
|
365,529
|
|
|
(14,382
|
)
|
|
1,671,679
|
|
||||
Consolidated revenues, net
|
$
|
2,311,040
|
|
|
$
|
459,996
|
|
|
$
|
(15,382
|
)
|
|
$
|
2,755,654
|
|
Operating income (loss)
|
$
|
784,027
|
|
|
$
|
(120,914
|
)
|
|
$
|
(5,557
|
)
|
|
$
|
657,556
|
|
Share-based compensation expense
|
30,569
|
|
|
8,328
|
|
|
—
|
|
|
38,897
|
|
||||
Restructuring expense
|
8,516
|
|
|
20,987
|
|
|
—
|
|
|
29,503
|
|
||||
Impairment and related charges
|
—
|
|
|
67,805
|
|
|
—
|
|
|
67,805
|
|
||||
Depreciation and amortization
|
32,376
|
|
|
52,402
|
|
|
—
|
|
|
84,778
|
|
||||
Adjusted operating income
|
$
|
855,488
|
|
|
$
|
28,608
|
|
|
$
|
(5,557
|
)
|
|
$
|
878,539
|
|
Capital expenditures
|
$
|
15,947
|
|
|
$
|
63,273
|
|
|
$
|
—
|
|
|
$
|
79,220
|
|
(In thousands)
|
Year Ended December 31, 2015
|
||||||||||||||
National
Networks
|
|
International
and Other
|
|
Inter-segment
eliminations
|
|
Consolidated
|
|||||||||
Revenues, net
|
|
|
|
|
|
|
|
||||||||
Advertising
|
$
|
945,288
|
|
|
$
|
82,972
|
|
|
$
|
—
|
|
|
$
|
1,028,260
|
|
Distribution
|
1,190,079
|
|
|
369,606
|
|
|
(7,010
|
)
|
|
1,552,675
|
|
||||
Consolidated revenues, net
|
$
|
2,135,367
|
|
|
$
|
452,578
|
|
|
$
|
(7,010
|
)
|
|
$
|
2,580,935
|
|
Operating income (loss)
|
$
|
754,243
|
|
|
$
|
(42,542
|
)
|
|
$
|
(2,508
|
)
|
|
$
|
709,193
|
|
Share-based compensation expense
|
23,814
|
|
|
7,206
|
|
|
—
|
|
|
31,020
|
|
||||
Restructuring expense
|
3,194
|
|
|
11,804
|
|
|
—
|
|
|
14,998
|
|
||||
Depreciation and amortization
|
29,742
|
|
|
53,289
|
|
|
—
|
|
|
83,031
|
|
||||
Adjusted operating income
|
$
|
810,993
|
|
|
$
|
29,757
|
|
|
$
|
(2,508
|
)
|
|
$
|
838,242
|
|
Capital expenditures
|
$
|
24,386
|
|
|
$
|
43,935
|
|
|
$
|
—
|
|
|
$
|
68,321
|
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
2017
|
|
2016
|
|
2015
|
|||||||
Inter-segment revenues
|
|
|
|
|
|
||||||
National Networks
|
$
|
(17,634
|
)
|
|
$
|
(14,963
|
)
|
|
$
|
(6,719
|
)
|
International and Other
|
(1,472
|
)
|
|
(419
|
)
|
|
(291
|
)
|
|||
|
$
|
(19,106
|
)
|
|
$
|
(15,382
|
)
|
|
$
|
(7,010
|
)
|
(In thousands)
|
Year Ended December 31, 2017
|
|
Year Ended December 31, 2016
|
||||
Revenue
|
|
|
|
||||
United States
|
$
|
2,244,057
|
|
|
$
|
2,215,430
|
|
Europe
|
369,815
|
|
|
384,234
|
|
||
Other
|
191,819
|
|
|
155,990
|
|
||
|
$
|
2,805,691
|
|
|
$
|
2,755,654
|
|
Condensed Consolidating Balance Sheet
|
|||||||||||||||||||
December 31, 2017
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
320
|
|
|
$
|
391,248
|
|
|
$
|
167,215
|
|
|
$
|
—
|
|
|
$
|
558,783
|
|
Accounts receivable, trade
|
—
|
|
|
581,270
|
|
|
194,621
|
|
|
—
|
|
|
775,891
|
|
|||||
Current portion of program rights, net
|
—
|
|
|
304,149
|
|
|
149,301
|
|
|
—
|
|
|
453,450
|
|
|||||
Prepaid expenses, other current assets and intercompany receivable
|
3,760
|
|
|
183,815
|
|
|
8,540
|
|
|
(104,389
|
)
|
|
91,726
|
|
|||||
Total current assets
|
4,080
|
|
|
1,460,482
|
|
|
519,677
|
|
|
(104,389
|
)
|
|
1,879,850
|
|
|||||
Property and equipment, net
|
—
|
|
|
136,032
|
|
|
47,482
|
|
|
—
|
|
|
183,514
|
|
|||||
Investment in affiliates
|
3,443,013
|
|
|
934,612
|
|
|
—
|
|
|
(4,377,625
|
)
|
|
—
|
|
|||||
Program rights, net
|
—
|
|
|
1,128,021
|
|
|
191,258
|
|
|
—
|
|
|
1,319,279
|
|
|||||
Long-term intercompany notes receivable
|
—
|
|
|
489,939
|
|
|
436
|
|
|
(490,375
|
)
|
|
—
|
|
|||||
Deferred carriage fees, net
|
—
|
|
|
29,346
|
|
|
578
|
|
|
—
|
|
|
29,924
|
|
|||||
Intangible assets, net
|
—
|
|
|
170,554
|
|
|
286,688
|
|
|
—
|
|
|
457,242
|
|
|||||
Goodwill
|
—
|
|
|
66,609
|
|
|
628,549
|
|
|
—
|
|
|
695,158
|
|
|||||
Deferred tax asset, net
|
—
|
|
|
—
|
|
|
20,081
|
|
|
—
|
|
|
20,081
|
|
|||||
Other assets
|
—
|
|
|
142,115
|
|
|
305,822
|
|
|
|
|
447,937
|
|
||||||
Total assets
|
$
|
3,447,093
|
|
|
$
|
4,557,710
|
|
|
$
|
2,000,571
|
|
|
$
|
(4,972,389
|
)
|
|
$
|
5,032,985
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
350
|
|
|
$
|
50,282
|
|
|
$
|
51,565
|
|
|
$
|
—
|
|
|
$
|
102,197
|
|
Accrued liabilities and intercompany payable
|
51,692
|
|
|
179,003
|
|
|
136,770
|
|
|
(104,389
|
)
|
|
263,076
|
|
|||||
Current portion of program rights obligations
|
—
|
|
|
262,004
|
|
|
65,545
|
|
|
—
|
|
|
327,549
|
|
|||||
Deferred revenue
|
—
|
|
|
27,530
|
|
|
18,903
|
|
|
—
|
|
|
46,433
|
|
|||||
Current portion of capital lease obligations
|
—
|
|
|
2,939
|
|
|
1,908
|
|
|
—
|
|
|
4,847
|
|
|||||
Total current liabilities
|
52,042
|
|
|
521,758
|
|
|
274,691
|
|
|
(104,389
|
)
|
|
744,102
|
|
|||||
Program rights obligations
|
—
|
|
|
511,996
|
|
|
22,984
|
|
|
—
|
|
|
534,980
|
|
|||||
Long-term debt, net
|
3,099,257
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,099,257
|
|
|||||
Capital lease obligations
|
—
|
|
|
3,745
|
|
|
22,532
|
|
|
—
|
|
|
26,277
|
|
|||||
Deferred tax liability, net
|
114,717
|
|
|
—
|
|
|
(5,019
|
)
|
|
—
|
|
|
109,698
|
|
|||||
Other liabilities and intercompany notes payable
|
46,133
|
|
|
77,198
|
|
|
503,166
|
|
|
(490,375
|
)
|
|
136,122
|
|
|||||
Total liabilities
|
3,312,149
|
|
|
1,114,697
|
|
|
818,354
|
|
|
(594,764
|
)
|
|
4,650,436
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
218,604
|
|
|
—
|
|
|
218,604
|
|
|||||
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
AMC Networks stockholders' equity
|
134,944
|
|
|
3,443,013
|
|
|
934,612
|
|
|
(4,377,625
|
)
|
|
134,944
|
|
|||||
Non-redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
29,001
|
|
|
—
|
|
|
29,001
|
|
|||||
Total stockholders' equity
|
134,944
|
|
|
3,443,013
|
|
|
963,613
|
|
|
(4,377,625
|
)
|
|
163,945
|
|
|||||
Total liabilities and stockholders' equity
|
$
|
3,447,093
|
|
|
$
|
4,557,710
|
|
|
$
|
2,000,571
|
|
|
$
|
(4,972,389
|
)
|
|
$
|
5,032,985
|
|
Condensed Consolidating Balance Sheet
|
|||||||||||||||||||
December 31, 2016
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
565
|
|
|
$
|
320,950
|
|
|
$
|
159,874
|
|
|
$
|
—
|
|
|
$
|
481,389
|
|
Accounts receivable, trade
|
—
|
|
|
538,259
|
|
|
162,904
|
|
|
—
|
|
|
701,163
|
|
|||||
Current portion of program rights, net
|
—
|
|
|
307,050
|
|
|
134,080
|
|
|
—
|
|
|
441,130
|
|
|||||
Prepaid expenses, other current assets and intercompany receivable
|
948
|
|
|
151,175
|
|
|
15,961
|
|
|
(95,423
|
)
|
|
72,661
|
|
|||||
Total current assets
|
1,513
|
|
|
1,317,434
|
|
|
472,819
|
|
|
(95,423
|
)
|
|
1,696,343
|
|
|||||
Property and equipment, net
|
—
|
|
|
104,272
|
|
|
62,364
|
|
|
—
|
|
|
166,636
|
|
|||||
Investment in affiliates
|
3,029,922
|
|
|
784,024
|
|
|
—
|
|
|
(3,813,946
|
)
|
|
—
|
|
|||||
Program rights, net
|
—
|
|
|
947,657
|
|
|
160,929
|
|
|
—
|
|
|
1,108,586
|
|
|||||
Long-term intercompany notes receivable
|
—
|
|
|
432,099
|
|
|
817
|
|
|
(432,916
|
)
|
|
—
|
|
|||||
Deferred carriage fees, net
|
—
|
|
|
42,656
|
|
|
1,230
|
|
|
—
|
|
|
43,886
|
|
|||||
Intangible assets, net
|
—
|
|
|
180,297
|
|
|
305,512
|
|
|
—
|
|
|
485,809
|
|
|||||
Goodwill
|
—
|
|
|
69,154
|
|
|
588,554
|
|
|
—
|
|
|
657,708
|
|
|||||
Deferred tax asset, net
|
—
|
|
|
—
|
|
|
8,598
|
|
|
—
|
|
|
8,598
|
|
|||||
Other assets
|
1,471
|
|
|
116,608
|
|
|
194,950
|
|
|
—
|
|
|
313,029
|
|
|||||
Total assets
|
$
|
3,032,906
|
|
|
$
|
3,994,201
|
|
|
$
|
1,795,773
|
|
|
$
|
(4,342,285
|
)
|
|
$
|
4,480,595
|
|
LIABILITIES AND STOCKHOLDERS' (DEFICIENCY) EQUITY
|
|
|
|
|
|
|
|
|
|||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
40,033
|
|
|
$
|
48,644
|
|
|
$
|
—
|
|
|
$
|
88,677
|
|
Accrued liabilities and intercompany payable
|
71,680
|
|
|
182,667
|
|
|
125,505
|
|
|
(95,423
|
)
|
|
284,429
|
|
|||||
Current portion of program rights obligations
|
—
|
|
|
226,474
|
|
|
74,371
|
|
|
—
|
|
|
300,845
|
|
|||||
Deferred revenue
|
—
|
|
|
42,782
|
|
|
10,861
|
|
|
—
|
|
|
53,643
|
|
|||||
Current portion of long-term debt
|
222,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
222,000
|
|
|||||
Current portion of capital lease obligations
|
—
|
|
|
2,645
|
|
|
1,939
|
|
|
—
|
|
|
4,584
|
|
|||||
Total current liabilities
|
293,680
|
|
|
494,601
|
|
|
261,320
|
|
|
(95,423
|
)
|
|
954,178
|
|
|||||
Program rights obligations
|
—
|
|
|
365,262
|
|
|
32,913
|
|
|
—
|
|
|
398,175
|
|
|||||
Long-term debt, net
|
2,597,263
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,597,263
|
|
|||||
Capital lease obligations
|
—
|
|
|
6,647
|
|
|
28,635
|
|
|
—
|
|
|
35,282
|
|
|||||
Deferred tax liability, net
|
145,364
|
|
|
—
|
|
|
427
|
|
|
—
|
|
|
145,791
|
|
|||||
Other liabilities and intercompany notes payable
|
26,681
|
|
|
97,769
|
|
|
440,685
|
|
|
(432,916
|
)
|
|
132,219
|
|
|||||
Total liabilities
|
3,062,988
|
|
|
964,279
|
|
|
763,980
|
|
|
(528,339
|
)
|
|
4,262,908
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
219,331
|
|
|
—
|
|
|
219,331
|
|
|||||
Stockholders' deficiency:
|
|
|
|
|
|
|
|
|
|
||||||||||
AMC Networks stockholders' (deficiency) equity
|
(30,082
|
)
|
|
3,029,922
|
|
|
784,024
|
|
|
(3,813,946
|
)
|
|
(30,082
|
)
|
|||||
Non-redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
28,438
|
|
|
—
|
|
|
28,438
|
|
|||||
Total stockholders' (deficiency) equity
|
(30,082
|
)
|
|
3,029,922
|
|
|
812,462
|
|
|
(3,813,946
|
)
|
|
(1,644
|
)
|
|||||
Total liabilities and stockholders' equity
|
$
|
3,032,906
|
|
|
$
|
3,994,201
|
|
|
$
|
1,795,773
|
|
|
$
|
(4,342,285
|
)
|
|
$
|
4,480,595
|
|
Condensed Consolidating Statement of Income
|
|||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues, net
|
$
|
—
|
|
|
$
|
2,182,867
|
|
|
$
|
637,823
|
|
|
$
|
(14,999
|
)
|
|
$
|
2,805,691
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Technical and operating (excluding depreciation and amortization)
|
—
|
|
|
991,476
|
|
|
352,788
|
|
|
(3,188
|
)
|
|
1,341,076
|
|
|||||
Selling, general and administrative
|
—
|
|
|
447,118
|
|
|
178,332
|
|
|
(12,108
|
)
|
|
613,342
|
|
|||||
Depreciation and amortization
|
—
|
|
|
40,923
|
|
|
53,715
|
|
|
—
|
|
|
94,638
|
|
|||||
Impairment and related charges
|
—
|
|
|
—
|
|
|
28,148
|
|
|
—
|
|
|
28,148
|
|
|||||
Restructuring expense
|
—
|
|
|
2,566
|
|
|
3,562
|
|
|
—
|
|
|
6,128
|
|
|||||
Total operating expenses
|
—
|
|
|
1,482,083
|
|
|
616,545
|
|
|
(15,296
|
)
|
|
2,083,332
|
|
|||||
Operating income
|
—
|
|
|
700,784
|
|
|
21,278
|
|
|
297
|
|
|
722,359
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
(129,971
|
)
|
|
41,934
|
|
|
(31,260
|
)
|
|
—
|
|
|
(119,297
|
)
|
|||||
Share of affiliates' income (loss)
|
748,430
|
|
|
13,360
|
|
|
—
|
|
|
(761,790
|
)
|
|
—
|
|
|||||
Loss on extinguishment of debt
|
(3,004
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,004
|
)
|
|||||
Miscellaneous, net
|
(1,530
|
)
|
|
2,484
|
|
|
39,663
|
|
|
(297
|
)
|
|
40,320
|
|
|||||
Total other income (expense)
|
613,925
|
|
|
57,778
|
|
|
8,403
|
|
|
(762,087
|
)
|
|
(81,981
|
)
|
|||||
Income from operations before income taxes
|
613,925
|
|
|
758,562
|
|
|
29,681
|
|
|
(761,790
|
)
|
|
640,378
|
|
|||||
Income tax (expense) benefit
|
(142,609
|
)
|
|
(10,132
|
)
|
|
2,000
|
|
|
—
|
|
|
(150,741
|
)
|
|||||
Net income including noncontrolling interests
|
471,316
|
|
|
748,430
|
|
|
31,681
|
|
|
(761,790
|
)
|
|
489,637
|
|
|||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(18,321
|
)
|
|
—
|
|
|
(18,321
|
)
|
|||||
Net income attributable to AMC Networks' stockholders
|
$
|
471,316
|
|
|
$
|
748,430
|
|
|
$
|
13,360
|
|
|
$
|
(761,790
|
)
|
|
$
|
471,316
|
|
Condensed Consolidating Statement of Income
|
|||||||||||||||||||
Year Ended December 31, 2016
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues, net
|
$
|
—
|
|
|
$
|
2,142,325
|
|
|
$
|
623,892
|
|
|
$
|
(10,563
|
)
|
|
$
|
2,755,654
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Technical and operating (excluding depreciation and amortization)
|
—
|
|
|
947,707
|
|
|
334,888
|
|
|
(2,611
|
)
|
|
1,279,984
|
|
|||||
Selling, general and administrative
|
—
|
|
|
460,150
|
|
|
183,597
|
|
|
(7,719
|
)
|
|
636,028
|
|
|||||
Depreciation and amortization
|
—
|
|
|
40,230
|
|
|
44,548
|
|
|
—
|
|
|
84,778
|
|
|||||
Impairment and related charges
|
—
|
|
|
—
|
|
|
67,805
|
|
|
—
|
|
|
67,805
|
|
|||||
Restructuring expense
|
—
|
|
|
24,950
|
|
|
4,553
|
|
|
—
|
|
|
29,503
|
|
|||||
Total operating expenses
|
—
|
|
|
1,473,037
|
|
|
635,391
|
|
|
(10,330
|
)
|
|
2,098,098
|
|
|||||
Operating income (loss)
|
—
|
|
|
669,288
|
|
|
(11,499
|
)
|
|
(233
|
)
|
|
657,556
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
(119,192
|
)
|
|
38,137
|
|
|
(37,513
|
)
|
|
—
|
|
|
(118,568
|
)
|
|||||
Share of affiliates' income (loss)
|
591,395
|
|
|
(103,464
|
)
|
|
—
|
|
|
(487,931
|
)
|
|
—
|
|
|||||
Loss on extinguishment of debt
|
(50,639
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50,639
|
)
|
|||||
Miscellaneous, net
|
(273
|
)
|
|
(2,892
|
)
|
|
(30,592
|
)
|
|
233
|
|
|
(33,524
|
)
|
|||||
Total other income (expense)
|
421,291
|
|
|
(68,219
|
)
|
|
(68,105
|
)
|
|
(487,698
|
)
|
|
(202,731
|
)
|
|||||
Income (loss) from operations before income taxes
|
421,291
|
|
|
601,069
|
|
|
(79,604
|
)
|
|
(487,931
|
)
|
|
454,825
|
|
|||||
Income tax expense
|
(150,781
|
)
|
|
(9,674
|
)
|
|
(4,407
|
)
|
|
—
|
|
|
(164,862
|
)
|
|||||
Net income (loss) including noncontrolling interests
|
270,510
|
|
|
591,395
|
|
|
(84,011
|
)
|
|
(487,931
|
)
|
|
289,963
|
|
|||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(19,453
|
)
|
|
—
|
|
|
(19,453
|
)
|
|||||
Net income (loss) attributable to AMC Networks' stockholders
|
$
|
270,510
|
|
|
$
|
591,395
|
|
|
$
|
(103,464
|
)
|
|
$
|
(487,931
|
)
|
|
$
|
270,510
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income including noncontrolling interest
|
$
|
471,316
|
|
|
$
|
748,430
|
|
|
$
|
31,681
|
|
|
$
|
(761,790
|
)
|
|
$
|
489,637
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustment
|
76,023
|
|
|
—
|
|
|
76,023
|
|
|
(76,023
|
)
|
|
76,023
|
|
|||||
Unrealized loss on interest rate swaps
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|||||
Unrealized gain on available for sale securities
|
5,398
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,398
|
|
|||||
Other comprehensive income, before income taxes
|
81,386
|
|
|
—
|
|
|
76,023
|
|
|
(76,023
|
)
|
|
81,386
|
|
|||||
Income tax expense
|
(1,974
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,974
|
)
|
|||||
Other comprehensive income, net of income taxes
|
79,412
|
|
|
—
|
|
|
76,023
|
|
|
(76,023
|
)
|
|
79,412
|
|
|||||
Comprehensive income
|
550,728
|
|
|
748,430
|
|
|
107,704
|
|
|
(837,813
|
)
|
|
569,049
|
|
|||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(21,430
|
)
|
|
—
|
|
|
(21,430
|
)
|
|||||
Comprehensive income attributable to AMC Networks' stockholders
|
$
|
550,728
|
|
|
$
|
748,430
|
|
|
$
|
86,274
|
|
|
$
|
(837,813
|
)
|
|
$
|
547,619
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||
Year Ended December 31, 2016
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income (loss) including noncontrolling interest
|
$
|
270,510
|
|
|
$
|
591,395
|
|
|
$
|
(84,011
|
)
|
|
$
|
(487,931
|
)
|
|
$
|
289,963
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustment
|
(45,426
|
)
|
|
—
|
|
|
(45,426
|
)
|
|
45,426
|
|
|
(45,426
|
)
|
|||||
Unrealized gain on interest rate swaps
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||
Other comprehensive loss, before income taxes
|
(45,404
|
)
|
|
—
|
|
|
(45,426
|
)
|
|
45,426
|
|
|
(45,404
|
)
|
|||||
Income tax expense
|
(12,337
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,337
|
)
|
|||||
Other comprehensive (loss) income, net of income taxes
|
(57,741
|
)
|
|
—
|
|
|
(45,426
|
)
|
|
45,426
|
|
|
(57,741
|
)
|
|||||
Comprehensive income (loss)
|
212,769
|
|
|
591,395
|
|
|
(129,437
|
)
|
|
(442,505
|
)
|
|
232,222
|
|
|||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(16,491
|
)
|
|
—
|
|
|
(16,491
|
)
|
|||||
Comprehensive income (loss) attributable to AMC Networks' stockholders
|
$
|
212,769
|
|
|
$
|
591,395
|
|
|
$
|
(145,928
|
)
|
|
$
|
(442,505
|
)
|
|
$
|
215,731
|
|
Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
$
|
454,539
|
|
|
$
|
662,123
|
|
|
$
|
31,157
|
|
|
$
|
(762,090
|
)
|
|
$
|
385,729
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(63,925
|
)
|
|
(16,124
|
)
|
|
—
|
|
|
(80,049
|
)
|
|||||
Return of capital from investees
|
—
|
|
|
1,868
|
|
|
579
|
|
|
—
|
|
|
2,447
|
|
|||||
Investments in and loans to investees
|
—
|
|
|
—
|
|
|
(53,000
|
)
|
|
—
|
|
|
(53,000
|
)
|
|||||
(Increase) decrease to investment in affiliates
|
(282,424
|
)
|
|
(2,234,682
|
)
|
|
2,082,401
|
|
|
434,705
|
|
|
—
|
|
|||||
Net cash used in investing activities
|
(282,424
|
)
|
|
(2,296,739
|
)
|
|
2,013,856
|
|
|
434,705
|
|
|
(130,602
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Proceeds from the issuance of long-term debt
|
1,536,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,536,000
|
|
|||||
Repayment of long-term debt
|
(1,257,965
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,257,965
|
)
|
|||||
Payments for financing costs
|
(10,405
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,405
|
)
|
|||||
Deemed repurchases of restricted stock/units
|
(14,496
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,496
|
)
|
|||||
Purchase of treasury stock
|
(434,210
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(434,210
|
)
|
|||||
Principal payments on capital lease obligations
|
—
|
|
|
(2,725
|
)
|
|
(1,848
|
)
|
|
—
|
|
|
(4,573
|
)
|
|||||
Distributions to noncontrolling interest
|
—
|
|
|
—
|
|
|
(18,561
|
)
|
|
—
|
|
|
(18,561
|
)
|
|||||
Net cash used in financing activities
|
(181,076
|
)
|
|
(2,725
|
)
|
|
(20,409
|
)
|
|
—
|
|
|
(204,210
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents from operations
|
(8,961
|
)
|
|
(1,637,341
|
)
|
|
2,024,604
|
|
|
(327,385
|
)
|
|
50,917
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
8,716
|
|
|
1,707,639
|
|
|
(2,017,263
|
)
|
|
327,385
|
|
|
26,477
|
|
|||||
Cash and cash equivalents at beginning of period
|
565
|
|
|
320,950
|
|
|
159,874
|
|
|
—
|
|
|
481,389
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
320
|
|
|
$
|
391,248
|
|
|
$
|
167,215
|
|
|
$
|
—
|
|
|
$
|
558,783
|
|
Condensed Consolidating Statement of Cash Flows
|
|||||||||||||||||||
Year Ended December 31, 2016
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
$
|
401,179
|
|
|
$
|
548,381
|
|
|
$
|
55,450
|
|
|
$
|
(490,685
|
)
|
|
$
|
514,325
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(42,064
|
)
|
|
(37,156
|
)
|
|
—
|
|
|
(79,220
|
)
|
|||||
Payments for acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(354
|
)
|
|
—
|
|
|
(354
|
)
|
|||||
Investments in and loans to investees
|
—
|
|
|
—
|
|
|
(95,000
|
)
|
|
—
|
|
|
(95,000
|
)
|
|||||
(Increase) decrease to investment in affiliates
|
(159,533
|
)
|
|
(69,231
|
)
|
|
—
|
|
|
228,764
|
|
|
—
|
|
|||||
Net cash used in investing activities
|
(159,533
|
)
|
|
(111,295
|
)
|
|
(132,510
|
)
|
|
228,764
|
|
|
(174,574
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from the issuance of long-term debt
|
982,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
982,500
|
|
|||||
Repayment of long-term debt
|
(848,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(848,000
|
)
|
|||||
Premium and fees paid on extinguishment of debt
|
(40,954
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40,954
|
)
|
|||||
Payments for financing costs
|
(2,070
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,070
|
)
|
|||||
Deemed repurchases of restricted stock/units
|
(10,822
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,822
|
)
|
|||||
Purchase of treasury stock
|
(223,237
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(223,237
|
)
|
|||||
Proceeds from stock option exercises
|
1,228
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,228
|
|
|||||
Excess tax benefits from share-based compensation arrangements
|
789
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
789
|
|
|||||
Principal payments on capital lease obligations
|
—
|
|
|
(2,475
|
)
|
|
(1,813
|
)
|
|
—
|
|
|
(4,288
|
)
|
|||||
Distributions to noncontrolling interest
|
—
|
|
|
—
|
|
|
(9,010
|
)
|
|
—
|
|
|
(9,010
|
)
|
|||||
Net cash used in financing activities
|
(140,566
|
)
|
|
(2,475
|
)
|
|
(10,823
|
)
|
|
—
|
|
|
(153,864
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents from operations
|
101,080
|
|
|
434,611
|
|
|
(87,883
|
)
|
|
(261,921
|
)
|
|
185,887
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(100,949
|
)
|
|
(261,921
|
)
|
|
80,130
|
|
|
261,921
|
|
|
(20,819
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
434
|
|
|
148,260
|
|
|
167,627
|
|
|
—
|
|
|
316,321
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
565
|
|
|
$
|
320,950
|
|
|
$
|
159,874
|
|
|
$
|
—
|
|
|
$
|
481,389
|
|
(In thousands)
|
For the three months ended,
|
|
|
||||||||||||||||
2017:
|
March 31,
2017 |
|
June 30,
2017 |
|
September 30,
2017 |
|
December 31,
2017 |
|
2017
|
||||||||||
Revenues, net
|
$
|
720,189
|
|
|
$
|
710,545
|
|
|
$
|
648,023
|
|
|
$
|
726,934
|
|
|
$
|
2,805,691
|
|
Operating expenses
|
(488,518
|
)
|
|
(534,755
|
)
|
|
(494,669
|
)
|
|
(565,390
|
)
|
|
(2,083,332
|
)
|
|||||
Operating income
|
$
|
231,671
|
|
|
$
|
175,790
|
|
|
$
|
153,354
|
|
|
$
|
161,544
|
|
|
$
|
722,359
|
|
Net income including noncontrolling interests
|
$
|
142,631
|
|
|
$
|
107,626
|
|
|
$
|
90,836
|
|
|
$
|
148,544
|
|
|
$
|
489,637
|
|
Net income attributable to AMC Networks' stockholders
|
$
|
136,217
|
|
|
$
|
102,598
|
|
|
$
|
87,002
|
|
|
$
|
145,499
|
|
|
$
|
471,316
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share attributable to AMC Networks' stockholders:
|
|
|
|
|
|
|
|||||||||||||
Basic
|
$
|
2.00
|
|
|
$
|
1.55
|
|
|
$
|
1.37
|
|
|
$
|
2.36
|
|
|
$
|
7.26
|
|
Diluted
|
$
|
1.98
|
|
|
$
|
1.54
|
|
|
$
|
1.35
|
|
|
$
|
2.33
|
|
|
$
|
7.18
|
|
(In thousands)
|
For the three months ended,
|
|
|
||||||||||||||||
2016:
|
March 31,
2016 |
|
June 30,
2016 |
|
September 30,
2016 |
|
December 31,
2016 |
|
2016
|
||||||||||
Revenues, net
|
$
|
706,579
|
|
|
$
|
684,832
|
|
|
$
|
634,646
|
|
|
$
|
729,597
|
|
|
$
|
2,755,654
|
|
Operating expenses
|
(447,920
|
)
|
|
(506,800
|
)
|
|
(517,509
|
)
|
|
(625,869
|
)
|
|
(2,098,098
|
)
|
|||||
Operating income
|
$
|
258,659
|
|
|
$
|
178,032
|
|
|
$
|
117,137
|
|
|
$
|
103,728
|
|
|
$
|
657,556
|
|
Net income including noncontrolling interests
|
$
|
120,064
|
|
|
$
|
83,387
|
|
|
$
|
67,469
|
|
|
$
|
19,043
|
|
|
$
|
289,963
|
|
Net income attributable to AMC Networks' stockholders
|
$
|
113,444
|
|
|
$
|
77,175
|
|
|
$
|
65,393
|
|
|
$
|
14,498
|
|
|
$
|
270,510
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share attributable to AMC Networks' stockholders:
|
|
|
|
|
|
|
|||||||||||||
Basic
|
$
|
1.56
|
|
|
$
|
1.06
|
|
|
$
|
0.91
|
|
|
$
|
0.21
|
|
|
$
|
3.77
|
|
Diluted
|
$
|
1.55
|
|
|
$
|
1.05
|
|
|
$
|
0.91
|
|
|
$
|
0.20
|
|
|
$
|
3.74
|
|
(In thousands)
|
Balance at
Beginning
of Period
|
|
Provision for (Recovery of) Bad Debt
|
|
Deductions/ Write-Offs and Other Charges, Net
|
|
Balance at
End of Period
|
||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful accounts
|
$
|
6,064
|
|
|
$
|
3,567
|
|
|
$
|
60
|
|
|
$
|
9,691
|
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful accounts
|
$
|
4,307
|
|
|
$
|
1,924
|
|
|
$
|
(167
|
)
|
|
$
|
6,064
|
|
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful accounts
|
$
|
4,276
|
|
|
$
|
1,705
|
|
|
$
|
(1,674
|
)
|
|
$
|
4,307
|
|
|
|
AMC NETWORKS INC.
|
|
By:
|
Name: Joshua Sapan
Title: President and CEO
|
1.
|
Going Private Transaction
. In the event of a “going private transaction,” as defined below, your entitlement to the Award shall be as follows:
|
A.
|
The Committee shall, no later than the effective date of the transaction which results in a going private transaction, deem
the Objectives to be satisfied at the target level and convert your Target Award into an amount of cash equal to (a) the number of your unvested units multiplied by (b) the “offer price per share,” the “acquisition price per share” or the “merger price per share,” each as defined below, whichever of such amounts is applicable.
|
B.
|
Provided that you remain continuously employed with the Company, the Surviving Entity or one of the AMC Subsidiaries, the cash award provided for in Paragraph 1(A) shall become payable to you (or your estate) at the earlier of (a) the date on which your Award would otherwise have vested had it continued in effect, (b) the date of your death or (c) the date on which your employment with the Company, the Surviving Entity or one of the AMC Subsidiaries is terminated (i) by the Company, the Surviving Entity or one of the AMC Subsidiaries other than for Cause or (ii) by you for “good reason,” as defined below. The amount payable in cash shall be payable together with interest from the effective date of the going private transaction until the date of payment at (a) the weighted average cost of capital of the Company immediately prior to the effectiveness of the going private transaction, or (b) if the Company (or the Surviving Entity) sets aside the funds in a trust or other funding arrangement, the actual earnings of such trust or other funding arrangement. Notwithstanding the foregoing, if you become entitled to payment of the Target Award by virtue of a termination in accordance with (c)(i) or (c)(ii) of this Section 1(B) and are determined by the Company to be a “specified employee” within the meaning of Section 409A, the Target Award shall be paid to you on the earliest of: (i) January 1, 2021, (ii) the date that is six months from your date of employment termination and (iii) any other date on which such payment or any portion thereof would be a permissible distribution under Section 409A. In the event of such a determination, the Company shall promptly following the date of your employment termination set aside such amount for your benefit in a “rabbi trust” that satisfies the requirements of Revenue Procedure 92-64, and on a monthly basis shall deposit into such trust interest in arrears (compounded quarterly at the rate provided below) until such time as such amount, together with all accrued interest thereon, is paid to you in full pursuant to the previous sentence;
provided
, that no payment will be made to such rabbi trust if it would be contrary to law or cause you to incur additional tax under Section 409A. The initial interest rate shall be the average of the one-year LIBOR fixed rate equivalent for the ten business days prior to the date of your employment termination.
|
2.
|
Change of Control
. Notwithstanding anything to the contrary contained in this Agreement but subject to the subsections of this Section 2, if at any time a Change of Control (as defined below) of the Company occurs and immediately prior to such transaction you are employed by the Company or one of the AMC Subsidiaries, you will be entitled to the payment of the Target Award whether or not the Objectives have been attained.
|
A.
|
If the actual Change of Control:
|
i.
|
is a permissible distribution event under Section 409A or payment of the Award promptly upon such event is otherwise permissible under Section 409A (including, for the avoidance of doubt, by reason of the inapplicability of Section 409A to the Award), then the Target Award shall be paid to you by the Company promptly following the Change of Control; or
|
ii.
|
is not a permissible distribution event under Section 409A and payment of the Award promptly upon such event is not otherwise permissible under Section 409A, then:
|
a.
|
(1) if the Company or the Surviving Entity has shares of common stock (or partnership units) traded on a national stock exchange or on the over-the-counter market as reported on NASDAQ or any other stock exchange, then the Committee shall, no later than the effective date of the Change of Control, either (A) convert your Target Award into an amount of cash equal to the amount calculated as per Paragraph 1(A) above or (B) arrange to have the Surviving Entity grant to you an award of restricted stock units (or partnership units) for shares of the Surviving Entity on the same terms and with a value equivalent to your unvested units which will, in the good faith determination of the Committee, provide you with an equivalent profit potential, or
|
b.
|
any cash award or any substitute restricted stock unit award of the Surviving Entity provided in Paragraph 2(A)(ii)(a) will be fully vested and will be paid to you (or your estate) at the earliest of (a) any subsequent date on which you are no longer employed by the Company, the Surviving Entity or any of the AMC Subsidiaries for any reason other than termination of your employment by one of such entities for Cause (provided that if you are determined by the Company to be a “specified employee” within the meaning of
|
B.
|
Upon any Change of Control, to the extent any amounts are due to be paid to you at a later date pursuant to Section 2(A)(ii) above, the Company shall promptly following the Change of Control set aside such amount for your benefit in a “rabbi trust” that satisfies the requirements of Revenue Procedure 92-64, and on a monthly basis shall deposit into such trust interest in arrears (compounded quarterly at the rate provided below) until such time as such amount, together with all accrued interest thereon, is paid to you in full pursuant to Section 2(A)(ii) above);
provided
, that no payment will be made to such rabbi trust if it would be contrary to law or cause you to incur additional tax under Section 409A. The initial interest rate shall be the average of the one-year LIBOR fixed rate equivalent for the ten business days prior to the date of the Change of Control and shall adjust annually based on the average of such rate for the ten business days prior to each anniversary of the Change of Control.
|
C.
|
If and to the extent that any payment under this Section 2 is determined by the Company to constitute “non-qualified deferred compensation” subject to Section 409A and is payable to you by reason of your termination of employment, then such payment shall be made to you only upon a “separation from service” as defined for purposes of Section 409A under applicable regulations.
|
3.
|
As used herein,
|
AMC NETWORKS INC.
|
|
By:
|
Name: Joshua Sapan
Title: President and CEO
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Earnings:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations before income taxes
|
$
|
640,378
|
|
|
$
|
454,825
|
|
|
$
|
582,794
|
|
|
$
|
397,028
|
|
|
$
|
469,001
|
|
Fixed charges
|
144,582
|
|
|
133,437
|
|
|
136,748
|
|
|
137,890
|
|
|
121,073
|
|
|||||
Total earnings as adjusted
|
$
|
784,960
|
|
|
$
|
588,262
|
|
|
$
|
719,542
|
|
|
$
|
534,918
|
|
|
$
|
590,074
|
|
Fixed Charges:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest Expense (*)
|
$
|
134,001
|
|
|
$
|
123,632
|
|
|
$
|
128,135
|
|
|
$
|
130,262
|
|
|
$
|
115,860
|
|
Portion of rents representative of an interest factor
|
10,581
|
|
|
9,805
|
|
|
8,613
|
|
|
7,628
|
|
|
5,213
|
|
|||||
Total fixed charges
|
$
|
144,582
|
|
|
$
|
133,437
|
|
|
$
|
136,748
|
|
|
$
|
137,890
|
|
|
$
|
121,073
|
|
Ratio of Earnings to Fixed Charges
|
5.4
|
|
|
4.4
|
|
|
5.3
|
|
|
3.9
|
|
|
4.9
|
|
(*)
|
Interest expense includes the amortized premiums, discounts and capitalized expenses related to indebtedness.
|
Subsidiary
|
|
Jurisdiction of Formation
|
|
Percent Owned
|
AMC Network Entertainment LLC
|
|
New York
|
|
100%
|
AMC Networks International LLC
|
|
Delaware
|
|
100%
|
Chello Zone Holdings Limited
|
|
United Kingdom
|
|
100%
|
IFC TV LLC
|
|
Delaware
|
|
100%
|
Rainbow Media Holdings LLC
|
|
Delaware
|
|
100%
|
Rainbow Programming Holdings LLC
|
|
Delaware
|
|
100%
|
SundanceTV LLC
|
|
Delaware
|
|
100%
|
WE tv LLC
|
|
Delaware
|
|
100%
|
Date:
|
March 1, 2018
|
|
By:
|
/s/ Joshua W. Sapan
|
|
|
|
|
Joshua W. Sapan
|
|
|
|
|
President and Chief Executive Officer
|
Date:
|
March 1, 2018
|
|
By:
|
/s/ Sean S. Sullivan
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Sean S. Sullivan
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Executive Vice President and Chief Financial Officer
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Date:
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March 1, 2018
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By:
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/s/ Joshua W. Sapan
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Joshua W. Sapan
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President and Chief Executive Officer
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Date:
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March 1, 2018
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By:
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/s/ Sean S. Sullivan
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Sean S. Sullivan
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Executive Vice President and Chief Financial Officer
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