|
|
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
|
44,730,194
|
|
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, our programming, and our production services;
|
•
|
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 consumer demand for our comedy venues;
|
•
|
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;
|
•
|
the impact of new and proposed federal, state and international laws and regulations relating to data protection, privacy and security, including the E.U. General Data Protection Regulation ("GDPR");
|
•
|
the impact of Brexit, particularly in the event of the U.K.’s departure from the E.U. without an agreement on terms;
|
•
|
our substantial debt and high leverage;
|
•
|
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, issuers of our investments in marketable equity securities and non-marketable equity securities 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, and SundanceTV in the U.S.; and AMC and IFC in Canada. Our AMC Studios operations produce original programming for our programming networks and also license 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 AMCNI, the Company's international programming businesses consisting of a portfolio of channels in over 130 countries and territories around the world; IFC Films, the Company's independent film distribution business; Levity, acquired April 20, 2018, our production services and comedy venues company; RLJE, acquired October 1, 2018, a content distribution company that also includes the subscription streaming services Acorn TV and UMC, and our wholly-owned subscription streaming services, Shudder and Sundance Now.
|
•
|
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 12/31/13
|
|
12/31/14
|
|
12/31/15
|
|
12/31/16
|
|
12/31/17
|
|
12/31/18
|
AMC Networks Inc.
|
|
100
|
|
93.63
|
|
109.65
|
|
76.85
|
|
79.40
|
|
80.58
|
S&P MidCap 400 Index
|
|
100
|
|
109.77
|
|
107.38
|
|
129.65
|
|
150.71
|
|
134.01
|
Peer Group
|
|
100
|
|
108.47
|
|
100.55
|
|
103.84
|
|
110.20
|
|
118.80
|
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, 2018 to October 31, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
November 1, 2018 to November 30, 2018
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
December 1, 2018 to December 31, 2018
|
|
296,585
|
|
|
$
|
53.08
|
|
|
296,585
|
|
|
$
|
559,410,218
|
|
Total
|
|
296,585
|
|
|
$
|
53.08
|
|
|
296,585
|
|
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2018
(1) (2)
|
|
2017
(1) (2)
|
|
2016
(1)
(2)
|
|
2015
(2)
|
|
2014
(2)
|
||||||||||
|
(In thousands, except per share amounts)
|
||||||||||||||||||
Operating Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues, net
|
$
|
2,971,929
|
|
|
$
|
2,805,691
|
|
|
$
|
2,755,654
|
|
|
$
|
2,580,935
|
|
|
$
|
2,175,641
|
|
Operating income
|
726,909
|
|
|
722,359
|
|
|
657,556
|
|
|
709,193
|
|
|
546,353
|
|
|||||
Income from continuing operations
|
463,967
|
|
|
489,637
|
|
|
289,963
|
|
|
381,704
|
|
|
267,873
|
|
|||||
Loss from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,448
|
)
|
|||||
Net income attributable to noncontrolling interests
|
(17,780
|
)
|
|
(18,321
|
)
|
|
(19,453
|
)
|
|
(14,916
|
)
|
|
(3,628
|
)
|
|||||
Net income attributable to AMC Networks' stockholders
|
$
|
446,187
|
|
|
$
|
471,316
|
|
|
$
|
270,510
|
|
|
$
|
366,788
|
|
|
$
|
260,797
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share attributable to AMC Networks' stockholders:
|
|
|
|
|
|
|
|
|
|||||||||||
Basic
|
$
|
7.68
|
|
|
$
|
7.26
|
|
|
$
|
3.77
|
|
|
$
|
5.06
|
|
|
$
|
3.67
|
|
Diluted
|
$
|
7.57
|
|
|
$
|
7.18
|
|
|
$
|
3.74
|
|
|
$
|
5.01
|
|
|
$
|
3.63
|
|
Balance Sheet Data, at period end:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
554,886
|
|
|
$
|
558,783
|
|
|
$
|
481,389
|
|
|
$
|
316,321
|
|
|
$
|
201,367
|
|
Total assets
|
5,278,563
|
|
|
5,032,985
|
|
|
4,480,595
|
|
|
4,250,609
|
|
|
3,949,826
|
|
|||||
Long-term debt (including capital leases)
|
3,136,072
|
|
|
3,130,381
|
|
|
2,859,129
|
|
|
2,701,148
|
|
|
2,763,144
|
|
|||||
Stockholders' equity (deficiency)
|
$
|
316,680
|
|
|
$
|
134,944
|
|
|
$
|
(30,082
|
)
|
|
$
|
(39,277
|
)
|
|
$
|
(371,755
|
)
|
•
|
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 and IFC in Canada. Our AMC Studios operations produce original programming for our programming networks and also license 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 AMCNI, the Company's international programming businesses consisting of a portfolio of channels in over 130 countries and territories around the world; IFC Films, the Company's independent film distribution business; Levity, acquired April 20, 2018, our production services and comedy venues company; RLJE, acquired October 1, 2018, a content distribution company that also includes the subscription streaming services Acorn TV and UMC and our wholly-owned subscription streaming services, Shudder and Sundance Now.
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
2018
|
|
2017
|
|
2016
|
|||||||
Revenues, net
|
|
|
|
|
|
||||||
National Networks
|
$
|
2,413,325
|
|
|
$
|
2,367,615
|
|
|
$
|
2,311,040
|
|
International and Other
|
598,306
|
|
|
457,182
|
|
|
459,996
|
|
|||
Inter-segment eliminations
|
(39,702
|
)
|
|
(19,106
|
)
|
|
(15,382
|
)
|
|||
Consolidated revenues, net
|
$
|
2,971,929
|
|
|
$
|
2,805,691
|
|
|
$
|
2,755,654
|
|
Operating income (loss)
|
|
|
|
|
|
||||||
National Networks
|
$
|
825,770
|
|
|
$
|
817,566
|
|
|
$
|
784,027
|
|
International and Other
|
(93,326
|
)
|
|
(88,894
|
)
|
|
(120,914
|
)
|
|||
Inter-segment eliminations
|
(5,535
|
)
|
|
(6,313
|
)
|
|
(5,557
|
)
|
|||
Consolidated operating income
|
$
|
726,909
|
|
|
$
|
722,359
|
|
|
$
|
657,556
|
|
AOI
|
|
|
|
|
|
||||||
National Networks
|
$
|
925,279
|
|
|
$
|
894,912
|
|
|
$
|
855,488
|
|
International and Other
|
19,303
|
|
|
16,219
|
|
|
28,608
|
|
|||
Inter-segment eliminations
|
(12,037
|
)
|
|
(6,313
|
)
|
|
(5,557
|
)
|
|||
Consolidated AOI
|
$
|
932,545
|
|
|
$
|
904,818
|
|
|
$
|
878,539
|
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
2018
|
|
2017
|
|
2016
|
|||||||
Operating income
|
$
|
726,909
|
|
|
$
|
722,359
|
|
|
$
|
657,556
|
|
Share-based compensation expense
|
60,979
|
|
|
53,545
|
|
|
38,897
|
|
|||
Restructuring expense
|
45,847
|
|
|
6,128
|
|
|
29,503
|
|
|||
Impairment and related charges
|
4,486
|
|
|
28,148
|
|
|
67,805
|
|
|||
Depreciation and amortization
|
91,281
|
|
|
94,638
|
|
|
84,778
|
|
|||
Equity investees (>50% interest) AOI
|
3,043
|
|
|
—
|
|
|
—
|
|
|||
AOI
|
$
|
932,545
|
|
|
$
|
904,818
|
|
|
$
|
878,539
|
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
|||||||||||||
(In thousands)
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
2,971,929
|
|
|
100.0
|
%
|
|
$
|
2,805,691
|
|
|
100.0
|
%
|
|
$
|
166,238
|
|
|
5.9
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
1,445,949
|
|
|
48.7
|
|
|
1,341,076
|
|
|
47.8
|
|
|
104,873
|
|
|
7.8
|
|
|||
Selling, general and administrative
|
657,457
|
|
|
22.1
|
|
|
613,342
|
|
|
21.9
|
|
|
44,115
|
|
|
7.2
|
|
|||
Depreciation and amortization
|
91,281
|
|
|
3.1
|
|
|
94,638
|
|
|
3.4
|
|
|
(3,357
|
)
|
|
(3.5
|
)
|
|||
Impairment and related charges
|
4,486
|
|
|
0.2
|
|
|
28,148
|
|
|
1.0
|
|
|
(23,662
|
)
|
|
(84.1
|
)
|
|||
Restructuring expense
|
45,847
|
|
|
1.5
|
|
|
6,128
|
|
|
0.2
|
|
|
39,719
|
|
|
n/m
|
||||
Total operating expenses
|
2,245,020
|
|
|
75.5
|
|
|
2,083,332
|
|
|
74.3
|
|
|
161,688
|
|
|
7.8
|
|
|||
Operating income
|
726,909
|
|
|
24.5
|
|
|
722,359
|
|
|
25.7
|
|
|
4,550
|
|
|
0.6
|
%
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense, net
|
(135,813
|
)
|
|
(4.6
|
)
|
|
(119,297
|
)
|
|
(4.3
|
)
|
|
(16,516
|
)
|
|
13.8
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
(3,004
|
)
|
|
(0.1
|
)
|
|
3,004
|
|
|
n/m
|
||||
Miscellaneous, net
|
29,177
|
|
|
1.0
|
|
|
40,320
|
|
|
1.4
|
|
|
(11,143
|
)
|
|
(27.6
|
)
|
|||
Total other income (expense)
|
(106,636
|
)
|
|
(3.6
|
)
|
|
(81,981
|
)
|
|
(2.9
|
)
|
|
(24,655
|
)
|
|
30.1
|
|
|||
Net income from operations before income taxes
|
620,273
|
|
|
20.9
|
|
|
640,378
|
|
|
22.8
|
|
|
(20,105
|
)
|
|
(3.1
|
)
|
|||
Income tax expense
|
(156,306
|
)
|
|
(5.3
|
)
|
|
(150,741
|
)
|
|
(5.4
|
)
|
|
(5,565
|
)
|
|
3.7
|
|
|||
Net income including noncontrolling interests
|
463,967
|
|
|
15.6
|
%
|
|
489,637
|
|
|
17.5
|
%
|
|
(25,670
|
)
|
|
(5.2
|
)
|
|||
Net income attributable to noncontrolling interests
|
(17,780
|
)
|
|
(0.6
|
)%
|
|
(18,321
|
)
|
|
(0.7
|
)%
|
|
541
|
|
|
(3.0
|
)
|
|||
Net income attributable to AMC Networks' stockholders
|
$
|
446,187
|
|
|
15.0
|
%
|
|
$
|
471,316
|
|
|
16.8
|
%
|
|
$
|
(25,129
|
)
|
|
(5.3
|
)%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
|||||||||||||
(In thousands)
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
2,413,325
|
|
|
100.0
|
%
|
|
$
|
2,367,615
|
|
|
100.0
|
%
|
|
$
|
45,710
|
|
|
1.9
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
1,080,732
|
|
|
44.8
|
|
|
1,064,580
|
|
|
45.0
|
|
|
16,152
|
|
|
1.5
|
|
|||
Selling, general and administrative
|
455,935
|
|
|
18.9
|
|
|
451,820
|
|
|
19.1
|
|
|
4,115
|
|
|
0.9
|
|
|||
Depreciation and amortization
|
33,728
|
|
|
1.4
|
|
|
33,702
|
|
|
1.4
|
|
|
26
|
|
|
0.1
|
|
|||
Restructuring expense (credit)
|
17,160
|
|
|
0.7
|
|
|
(53
|
)
|
|
—
|
|
|
17,213
|
|
|
n/m
|
||||
Operating income
|
$
|
825,770
|
|
|
34.2
|
%
|
|
$
|
817,566
|
|
|
34.5
|
%
|
|
$
|
8,204
|
|
|
1.0
|
%
|
Share-based compensation expense
|
48,621
|
|
|
2.0
|
|
|
43,697
|
|
|
1.8
|
|
|
4,924
|
|
|
11.3
|
|
|||
Restructuring expense (credit)
|
17,160
|
|
|
0.7
|
|
|
(53
|
)
|
|
—
|
|
|
17,213
|
|
|
n/m
|
||||
Depreciation and amortization
|
33,728
|
|
|
1.4
|
|
|
33,702
|
|
|
1.4
|
|
|
26
|
|
|
0.1
|
|
|||
AOI
|
$
|
925,279
|
|
|
38.3
|
%
|
|
$
|
894,912
|
|
|
37.8
|
%
|
|
$
|
30,367
|
|
|
3.4
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
|
2018
|
|
2017
|
|
|
|
|
|||||||||||||
(In thousands)
|
Amount
|
|
% of
Revenues,
net
|
|
Amount
|
|
% of
Revenues,
net
|
|
$ change
|
|
% change
|
|||||||||
Revenues, net
|
$
|
598,306
|
|
|
100.0
|
%
|
|
$
|
457,182
|
|
|
100.0
|
%
|
|
$
|
141,124
|
|
|
30.9
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Technical and operating (excluding depreciation and amortization)
|
392,793
|
|
|
65.7
|
|
|
289,238
|
|
|
63.3
|
|
|
103,555
|
|
|
35.8
|
|
|||
Selling, general and administrative
|
201,611
|
|
|
33.7
|
|
|
161,573
|
|
|
35.3
|
|
|
40,038
|
|
|
24.8
|
|
|||
Depreciation and amortization
|
57,553
|
|
|
9.6
|
|
|
60,936
|
|
|
13.3
|
|
|
(3,383
|
)
|
|
(5.6
|
)
|
|||
Impairment and related charges
|
4,486
|
|
|
0.7
|
|
|
28,148
|
|
|
6.2
|
|
|
(23,662
|
)
|
|
(84.1
|
)
|
|||
Restructuring expense
|
35,189
|
|
|
5.9
|
|
|
6,181
|
|
|
1.4
|
|
|
29,008
|
|
|
n/m
|
||||
Operating loss
|
$
|
(93,326
|
)
|
|
(15.6
|
)%
|
|
$
|
(88,894
|
)
|
|
(19.4
|
)%
|
|
$
|
(4,432
|
)
|
|
5.0
|
%
|
Share-based compensation expense
|
12,358
|
|
|
2.1
|
|
|
9,848
|
|
|
2.2
|
|
|
2,510
|
|
|
25.5
|
|
|||
Restructuring expense
|
35,189
|
|
|
5.9
|
|
|
6,181
|
|
|
1.4
|
|
|
29,008
|
|
|
n/m
|
||||
Impairment and related charges
|
4,486
|
|
|
0.7
|
|
|
28,148
|
|
|
6.2
|
|
|
(23,662
|
)
|
|
(84.1
|
)
|
|||
Depreciation and amortization
|
57,553
|
|
|
9.6
|
|
|
60,936
|
|
|
13.3
|
|
|
(3,383
|
)
|
|
(5.6
|
)
|
|||
Equity investees (>50% interest) AOI
|
3,043
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
3,043
|
|
|
n/m
|
|
|||
AOI
|
$
|
19,303
|
|
|
3.2
|
%
|
|
$
|
16,219
|
|
|
3.5
|
%
|
|
$
|
3,084
|
|
|
19.0
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
(In thousands)
|
2018
|
|
% of
total
|
|
2017
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
National Networks
|
$
|
2,413,325
|
|
|
81.2
|
%
|
|
$
|
2,367,615
|
|
|
84.4
|
%
|
|
$
|
45,710
|
|
|
1.9
|
%
|
International and Other
|
598,306
|
|
|
20.1
|
|
|
457,182
|
|
|
16.3
|
|
|
141,124
|
|
|
30.9
|
|
|||
Inter-segment eliminations
|
(39,702
|
)
|
|
(1.3
|
)
|
|
(19,106
|
)
|
|
(0.7
|
)
|
|
(20,596
|
)
|
|
107.8
|
|
|||
Consolidated revenues, net
|
$
|
2,971,929
|
|
|
100.0
|
%
|
|
$
|
2,805,691
|
|
|
100.0
|
%
|
|
$
|
166,238
|
|
|
5.9
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
(In thousands)
|
2018
|
|
% of
total
|
|
2017
|
|
% of
total
|
|
$ change
|
|
% change
|
|||||||||
Advertising
|
$
|
944,675
|
|
|
39.1
|
%
|
|
$
|
959,551
|
|
|
40.5
|
%
|
|
$
|
(14,876
|
)
|
|
(1.6
|
)%
|
Distribution
|
1,468,650
|
|
|
60.9
|
|
|
1,408,064
|
|
|
59.5
|
|
|
60,586
|
|
|
4.3
|
|
|||
|
$
|
2,413,325
|
|
|
100.0
|
%
|
|
$
|
2,367,615
|
|
|
100.0
|
%
|
|
$
|
45,710
|
|
|
1.9
|
%
|
•
|
Advertising revenues
decreased
$14.9 million
driven by a decrease of $47.2 million at AMC due to lower ratings, partially mitigated by pricing. The decrease at AMC was partially offset by increases at our other networks. Most of our advertising revenues vary based on the timing of our original programming series and the popularity of our programming as measured by Nielsen. Due to these factors, we expect advertising revenues to vary from quarter to quarter.
|
•
|
Distribution revenues
increased
$60.6 million
due to an increase in subscription revenues of $52.2 million across all of our networks resulting from an increase in rates, partially offset by a slight decline in total subscribers. Content licensing revenues increased $8.4 million due to an increase in the number of original programs we distributed. Distribution revenues may vary based on the impact of renewals of affiliation agreements and content licensing revenues vary 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, 2018
|
|
December 31, 2017
|
||
National Programming Networks:
|
|
|
|
||
AMC
|
89,000
|
|
|
90,500
|
|
WE tv
|
84,600
|
|
|
86,000
|
|
BBC AMERICA
|
80,900
|
|
|
80,600
|
|
IFC
|
75,100
|
|
|
74,200
|
|
SundanceTV
|
69,900
|
|
|
70,600
|
|
(1)
|
Estimated U.S. subscribers as measured by Nielsen.
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||||||||
(In thousands)
|
2018
|
|
% of
total |
|
2017
|
|
% of
total |
|
$ change
|
|
% change
|
|||||||||
Advertising
|
$
|
91,404
|
|
|
15.3
|
%
|
|
$
|
89,894
|
|
|
19.7
|
%
|
|
$
|
1,510
|
|
|
1.7
|
%
|
Distribution and other
|
506,902
|
|
|
84.7
|
|
|
367,288
|
|
|
80.3
|
|
|
139,614
|
|
|
38.0
|
|
|||
|
$
|
598,306
|
|
|
100.0
|
%
|
|
$
|
457,182
|
|
|
100.0
|
%
|
|
$
|
141,124
|
|
|
30.9
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2018
|
|
2017
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
1,080,732
|
|
|
$
|
1,064,580
|
|
|
$
|
16,152
|
|
|
1.5
|
%
|
International and Other
|
392,793
|
|
|
289,238
|
|
|
103,555
|
|
|
35.8
|
|
|||
Inter-segment eliminations
|
(27,576
|
)
|
|
(12,742
|
)
|
|
(14,834
|
)
|
|
116.4
|
|
|||
Total
|
$
|
1,445,949
|
|
|
$
|
1,341,076
|
|
|
$
|
104,873
|
|
|
7.8
|
%
|
Percentage of revenues, net
|
48.7
|
%
|
|
47.8
|
%
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2018
|
|
2017
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
455,935
|
|
|
$
|
451,820
|
|
|
$
|
4,115
|
|
|
0.9
|
%
|
International and Other
|
201,611
|
|
|
161,573
|
|
|
40,038
|
|
|
24.8
|
|
|||
Inter-segment eliminations
|
(89
|
)
|
|
(51
|
)
|
|
(38
|
)
|
|
74.5
|
|
|||
Total
|
$
|
657,457
|
|
|
$
|
613,342
|
|
|
$
|
44,115
|
|
|
7.2
|
%
|
Percentage of revenues, net
|
22.1
|
%
|
|
21.9
|
%
|
|
|
|
|
|
2018 Restructuring Charge
|
||||||||||
(In thousands)
|
Restructuring
Plan
|
|
Distribution
Exits
|
|
Total
|
||||||
National Networks
|
$
|
17,160
|
|
|
$
|
—
|
|
|
$
|
17,160
|
|
International and Other
(a)
|
18,803
|
|
|
16,386
|
|
|
35,189
|
|
|||
Inter-segment Eliminations
|
—
|
|
|
(6,502)
|
|
|
(6,502
|
)
|
|||
|
$
|
35,963
|
|
|
$
|
9,884
|
|
|
$
|
45,847
|
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2018
|
|
2017
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
825,770
|
|
|
$
|
817,566
|
|
|
$
|
8,204
|
|
|
1.0
|
%
|
International and Other
|
(93,326
|
)
|
|
(88,894
|
)
|
|
(4,432
|
)
|
|
5.0
|
|
|||
Inter-segment Eliminations
|
(5,535
|
)
|
|
(6,313)
|
|
|
778
|
|
|
(12.3
|
)
|
|||
|
$
|
726,909
|
|
|
$
|
722,359
|
|
|
$
|
4,550
|
|
|
0.6
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2018
|
|
2017
|
|
$ change
|
|
% change
|
|||||||
Operating income
|
$
|
726,909
|
|
|
$
|
722,359
|
|
|
$
|
4,550
|
|
|
0.6
|
%
|
Share-based compensation expense
|
60,979
|
|
|
53,545
|
|
|
7,434
|
|
|
13.9
|
|
|||
Restructuring expense
|
45,847
|
|
|
6,128
|
|
|
39,719
|
|
|
648.2
|
|
|||
Impairment and related charges
|
4,486
|
|
|
28,148
|
|
|
(23,662
|
)
|
|
(84.1
|
)
|
|||
Depreciation and amortization
|
91,281
|
|
|
94,638
|
|
|
(3,357
|
)
|
|
(3.5
|
)
|
|||
Equity investees (>50% interest) AOI
|
3,043
|
|
|
—
|
|
|
3,043
|
|
|
n/m
|
|
|||
Consolidated AOI
|
$
|
932,545
|
|
|
$
|
904,818
|
|
|
$
|
27,727
|
|
|
3.1
|
%
|
|
Years Ended December 31,
|
|
|
|
|
|||||||||
(In thousands)
|
2018
|
|
2017
|
|
$ change
|
|
% change
|
|||||||
National Networks
|
$
|
925,279
|
|
|
$
|
894,912
|
|
|
$
|
30,367
|
|
|
3.4
|
%
|
International and Other
|
19,303
|
|
|
16,219
|
|
|
3,084
|
|
|
19.0
|
|
|||
Inter-segment eliminations
|
(12,037
|
)
|
|
(6,313
|
)
|
|
(5,724
|
)
|
|
90.7
|
|
|||
AOI
|
$
|
932,545
|
|
|
$
|
904,818
|
|
|
$
|
27,727
|
|
|
3.1
|
%
|
|
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.
|
•
|
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.
|
|
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,
|
||||||||||
(In thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flow provided by operating activities
|
$
|
606,547
|
|
|
$
|
385,729
|
|
|
$
|
514,325
|
|
Cash flow used in investing activities
|
(260,184
|
)
|
|
(130,602
|
)
|
|
(174,574
|
)
|
|||
Cash flow used in financing activities
|
(314,607
|
)
|
|
(204,210
|
)
|
|
(153,864
|
)
|
|||
Net increase in cash from operations
|
31,756
|
|
|
50,917
|
|
|
185,887
|
|
(a)
|
The Company's $500 million revolving credit facility remains undrawn at
December 31, 2018
. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company.
|
(In thousands)
|
Payments due by period
|
||||||||||||||||||
Total
|
|
Year 1
|
|
Years
2 - 3
|
|
Years
4 - 5
|
|
More than
5 years
|
|||||||||||
Debt obligations:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Principal payments
|
$
|
3,152,584
|
|
|
$
|
21,334
|
|
|
$
|
831,250
|
|
|
$
|
1,300,000
|
|
|
$
|
1,000,000
|
|
Interest payments (1)
|
773,642
|
|
|
147,141
|
|
|
286,850
|
|
|
238,651
|
|
|
101,000
|
|
|||||
Purchase obligations (2)
|
1,752,139
|
|
|
648,203
|
|
|
531,366
|
|
|
122,747
|
|
|
449,823
|
|
|||||
Operating lease obligations
|
288,864
|
|
|
39,576
|
|
|
67,204
|
|
|
65,411
|
|
|
116,673
|
|
|||||
Capital lease obligations (3)
|
36,643
|
|
|
7,665
|
|
|
10,353
|
|
|
8,928
|
|
|
9,697
|
|
|||||
Total
|
$
|
6,003,872
|
|
|
$
|
863,919
|
|
|
$
|
1,727,023
|
|
|
$
|
1,735,737
|
|
|
$
|
1,677,193
|
|
(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, 2018
.
|
(2)
|
Purchase obligations consist primarily of program rights obligations, participations, residuals, and transmission and marketing commitments.
|
(3)
|
Capital lease obligation amounts include imputed interest.
|
|
Net Carrying Value at, December 31, 2017
|
|
Estimated Useful
Lives in Years
|
||
Affiliate and customer relationships
|
$
|
422,271
|
|
|
6 to 25 years
|
Advertiser relationships
|
28,669
|
|
|
11 years
|
|
Trade names
|
100,801
|
|
|
3 to 20 years
|
|
Other amortizable intangible assets
|
7,266
|
|
|
5 to 15 years
|
|
|
$
|
559,007
|
|
|
|
|
December 31, 2018
|
||
National Networks
|
$
|
238,431
|
|
International and Other
|
559,606
|
|
|
|
$
|
798,037
|
|
(1)
|
The financial statements as indicated in the index set forth on page
64
.
|
(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
|
|
|
|
|
|
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, 2019
|
|
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
|
|
February 28, 2019
|
Joshua W. Sapan
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ Sean S. Sullivan
|
|
Executive Vice President and Chief Financial Officer
|
|
February 28, 2019
|
Sean S. Sullivan
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Christian B. Wymbs
|
|
Executive Vice President and Chief Accounting Officer
|
|
February 28, 2019
|
Christian B. Wymbs
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
/s/ Charles F. Dolan
|
|
Chairman of the Board of Directors
|
|
February 28, 2019
|
Charles F. Dolan
|
|
|
|
|
|
|
|
|
|
/s/ William J. Bell
|
|
Director
|
|
February 28, 2019
|
William J. Bell
|
|
|
|
|
|
|
|
|
|
/s/ Frank J. Biondi, Jr.
|
|
Director
|
|
February 28, 2019
|
Frank J. Biondi, Jr.
|
|
|
|
|
|
|
|
|
|
/s/ James L. Dolan
|
|
Director
|
|
February 28, 2019
|
James L. Dolan
|
|
|
|
|
|
|
|
|
|
/s/ Kristin A. Dolan
|
|
Director
|
|
February 28, 2019
|
Kristin A. Dolan
|
|
|
|
|
Name
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Marianne Dolan Weber
|
|
Director
|
|
February 28, 2019
|
Marianne Dolan Weber
|
|
|
|
|
|
|
|
|
|
/s/ Patrick F. Dolan
|
|
Director
|
|
February 28, 2019
|
Patrick F. Dolan
|
|
|
|
|
|
|
|
|
|
/s/ Thomas C. Dolan
|
|
Director
|
|
February 28, 2019
|
Thomas C. Dolan
|
|
|
|
|
|
|
|
|
|
/s/ Jonathan F. Miller
|
|
Director
|
|
February 28, 2019
|
Jonathan F. Miller
|
|
|
|
|
|
|
|
|
|
/s/ Brian G. Sweeney
|
|
Director
|
|
February 28, 2019
|
Brian G. Sweeney
|
|
|
|
|
|
|
|
|
|
/s/ Vincent Tese
|
|
Director
|
|
February 28, 2019
|
Vincent Tese
|
|
|
|
|
|
|
|
|
|
/s/ Leonard Tow
|
|
Director
|
|
February 28, 2019
|
Leonard Tow
|
|
|
|
|
|
|
|
|
|
/s/ David E. Van Zandt
|
|
Director
|
|
February 28, 2019
|
David E. Van Zandt
|
|
|
|
|
|
|
|
|
|
/s/ Carl E. Vogel
|
|
Director
|
|
February 28, 2019
|
Carl E. Vogel
|
|
|
|
|
|
|
|
|
|
/s/ Robert C. Wright
|
|
Director
|
|
February 28, 2019
|
Robert C. Wright
|
|
|
|
|
Consolidated Financial Statements as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016
|
|
|
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
554,886
|
|
|
$
|
558,783
|
|
Accounts receivable, trade (including amounts due from related parties, net,
less allowance for doubtful accounts of $10,788 and $9,691)
|
835,977
|
|
|
775,891
|
|
||
Current portion of program rights, net
|
440,739
|
|
|
443,604
|
|
||
Prepaid expenses and other current assets
|
131,809
|
|
|
91,726
|
|
||
Total current assets
|
1,963,411
|
|
|
1,870,004
|
|
||
Property and equipment, net
|
246,262
|
|
|
183,514
|
|
||
Program rights, net
|
1,214,051
|
|
|
1,329,125
|
|
||
Deferred carriage fees, net
|
16,831
|
|
|
29,924
|
|
||
Intangible assets, net
|
578,907
|
|
|
457,242
|
|
||
Goodwill
|
798,037
|
|
|
695,158
|
|
||
Deferred tax assets, net
|
19,272
|
|
|
20,081
|
|
||
Other assets
|
441,792
|
|
|
447,937
|
|
||
Total assets
|
$
|
5,278,563
|
|
|
$
|
5,032,985
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
107,066
|
|
|
$
|
102,197
|
|
Accrued liabilities
|
264,918
|
|
|
263,076
|
|
||
Current portion of program rights obligations
|
343,589
|
|
|
327,549
|
|
||
Deferred revenue
|
55,424
|
|
|
46,433
|
|
||
Current portion of long-term debt
|
21,334
|
|
|
—
|
|
||
Current portion of capital lease obligations
|
5,090
|
|
|
4,847
|
|
||
Total current liabilities
|
797,421
|
|
|
744,102
|
|
||
Program rights obligations
|
373,249
|
|
|
534,980
|
|
||
Long-term debt, net
|
3,088,221
|
|
|
3,099,257
|
|
||
Capital lease obligations
|
21,427
|
|
|
26,277
|
|
||
Deferred tax liability, net
|
145,443
|
|
|
109,698
|
|
||
Other liabilities
|
208,036
|
|
|
136,122
|
|
||
Total liabilities
|
4,633,797
|
|
|
4,650,436
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
299,558
|
|
|
218,604
|
|
||
Stockholders' equity:
|
|
|
|
||||
Class A Common Stock, $0.01 par value, 360,000 shares authorized, 63,255 and 62,721 shares issued and 44,749 and 49,601 shares outstanding, respectively
|
633
|
|
|
627
|
|
||
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
|
239,767
|
|
|
191,303
|
|
||
Accumulated earnings
|
1,228,942
|
|
|
766,725
|
|
||
Treasury stock, at cost (18,507 and 13,120 shares Class A Common Stock, respectively)
|
(992,583
|
)
|
|
(709,440
|
)
|
||
Accumulated other comprehensive loss
|
(160,194
|
)
|
|
(114,386
|
)
|
||
Total AMC Networks stockholders' equity
|
316,680
|
|
|
134,944
|
|
||
Non-redeemable noncontrolling interests
|
28,528
|
|
|
29,001
|
|
||
Total stockholders' equity
|
345,208
|
|
|
163,945
|
|
||
Total liabilities and stockholders' equity
|
$
|
5,278,563
|
|
|
$
|
5,032,985
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues, net (including revenues, net from related parties of $5,578, $6,168 and $15,873, respectively)
|
$
|
2,971,929
|
|
|
$
|
2,805,691
|
|
|
$
|
2,755,654
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Technical and operating (excluding depreciation and amortization)
|
1,445,949
|
|
|
1,341,076
|
|
|
1,279,984
|
|
|||
Selling, general and administrative (including charges from related parties of $1,647, $1,524 and $3,086, respectively)
|
657,457
|
|
|
613,342
|
|
|
636,028
|
|
|||
Depreciation and amortization
|
91,281
|
|
|
94,638
|
|
|
84,778
|
|
|||
Impairment and related charges
|
4,486
|
|
|
28,148
|
|
|
67,805
|
|
|||
Restructuring expense
|
45,847
|
|
|
6,128
|
|
|
29,503
|
|
|||
Total operating expenses
|
2,245,020
|
|
|
2,083,332
|
|
|
2,098,098
|
|
|||
Operating income
|
726,909
|
|
|
722,359
|
|
|
657,556
|
|
|||
Other income (expense):
|
|
|
|
|
|
||||||
Interest expense
|
(154,993
|
)
|
|
(134,001
|
)
|
|
(123,632
|
)
|
|||
Interest income
|
19,180
|
|
|
14,704
|
|
|
5,064
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
(3,004
|
)
|
|
(50,639
|
)
|
|||
Miscellaneous, net
|
29,177
|
|
|
40,320
|
|
|
(33,524
|
)
|
|||
Total other income (expense)
|
(106,636
|
)
|
|
(81,981
|
)
|
|
(202,731
|
)
|
|||
Income from operations before income taxes
|
620,273
|
|
|
640,378
|
|
|
454,825
|
|
|||
Income tax expense
|
(156,306
|
)
|
|
(150,741
|
)
|
|
(164,862
|
)
|
|||
Net income including noncontrolling interests
|
463,967
|
|
|
489,637
|
|
|
289,963
|
|
|||
Net income attributable to noncontrolling interests
|
(17,780
|
)
|
|
(18,321
|
)
|
|
(19,453
|
)
|
|||
Net income attributable to AMC Networks' stockholders
|
$
|
446,187
|
|
|
$
|
471,316
|
|
|
$
|
270,510
|
|
|
|
|
|
|
|
||||||
Net income per share attributable to AMC Networks' stockholders:
|
|
|
|
|
|
||||||
Basic
|
$
|
7.68
|
|
|
$
|
7.26
|
|
|
$
|
3.77
|
|
Diluted
|
$
|
7.57
|
|
|
$
|
7.18
|
|
|
$
|
3.74
|
|
|
|
|
|
|
|
||||||
Weighted average common shares:
|
|
|
|
|
|
||||||
Basic
|
58,066
|
|
|
64,905
|
|
|
71,746
|
|
|||
Diluted
|
58,947
|
|
|
65,625
|
|
|
72,410
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income including noncontrolling interests
|
$
|
463,967
|
|
|
$
|
489,637
|
|
|
$
|
289,963
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Foreign currency translation adjustment
|
(41,716
|
)
|
|
76,023
|
|
|
(45,426
|
)
|
|||
Unrealized (loss) gain on interest rate swaps
|
(356
|
)
|
|
(35
|
)
|
|
22
|
|
|||
Unrealized gain on available for sale securities
|
—
|
|
|
5,398
|
|
|
—
|
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
(370
|
)
|
|
—
|
|
|
—
|
|
|||
Other comprehensive income (loss), before income taxes
|
(42,442
|
)
|
|
81,386
|
|
|
(45,404
|
)
|
|||
Income tax benefit (expense)
|
45
|
|
|
(1,974
|
)
|
|
(12,337
|
)
|
|||
Other comprehensive income (loss), net of income taxes
|
(42,397
|
)
|
|
79,412
|
|
|
(57,741
|
)
|
|||
Comprehensive income
|
421,570
|
|
|
569,049
|
|
|
232,222
|
|
|||
Comprehensive income attributable to noncontrolling interests
|
(16,044
|
)
|
|
(21,430
|
)
|
|
(16,491
|
)
|
|||
Comprehensive income attributable to AMC Networks' stockholders
|
$
|
405,526
|
|
|
$
|
547,619
|
|
|
$
|
215,731
|
|
|
Class A
Common Stock |
|
Class B
Common Stock |
|
Paid-in
Capital |
|
Accumulated Earnings
|
|
Treasury
Stock |
|
Accumulated
Other Comprehensive Loss |
|
Total AMC Networks Stockholders'
Equity (Deficiency) |
|
Non-redeemable Noncontrolling
Interests |
|
Total Stockholders'
Equity (Deficiency) |
||||||||||||||||||
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
|
|
|||||||||
Net income attributable to AMC Networks’ stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
446,187
|
|
|
—
|
|
|
—
|
|
|
446,187
|
|
|
—
|
|
|
446,187
|
|
|||||||||
Net income attributable to Non-redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,756
|
|
|
2,756
|
|
|||||||||
Distributions to noncontrolling member
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,847
|
)
|
|
(2,847
|
)
|
|||||||||
Noncontrolling interests acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,354
|
|
|
1,354
|
|
|||||||||
Cumulative effects of adoption of accounting standards
|
—
|
|
|
—
|
|
|
—
|
|
|
16,030
|
|
|
—
|
|
|
(3,411
|
)
|
|
12,619
|
|
|
—
|
|
|
12,619
|
|
|||||||||
Treasury stock not yet settled
|
—
|
|
|
—
|
|
|
(986
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(986
|
)
|
|
—
|
|
|
(986
|
)
|
|||||||||
Settlement of treasury stock
|
—
|
|
|
—
|
|
|
996
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
996
|
|
|
—
|
|
|
996
|
|
|||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42,397
|
)
|
|
(42,397
|
)
|
|
(1,736
|
)
|
|
(44,133
|
)
|
|||||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
60,979
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,979
|
|
|
—
|
|
|
60,979
|
|
|||||||||
Proceeds from the exercise of stock options
|
—
|
|
|
—
|
|
|
4,317
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,317
|
|
|
—
|
|
|
4,317
|
|
|||||||||
Treasury stock acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(283,143
|
)
|
|
—
|
|
|
(283,143
|
)
|
|
—
|
|
|
(283,143
|
)
|
|||||||||
Restricted stock units converted to shares
|
6
|
|
|
—
|
|
|
(16,842
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,836
|
)
|
|
—
|
|
|
(16,836
|
)
|
|||||||||
Balance, December 31, 2018
|
$
|
633
|
|
|
$
|
115
|
|
|
$
|
239,767
|
|
|
$
|
1,228,942
|
|
|
$
|
(992,583
|
)
|
|
$
|
(160,194
|
)
|
|
$
|
316,680
|
|
|
$
|
28,528
|
|
|
$
|
345,208
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income including noncontrolling interests
|
$
|
463,967
|
|
|
$
|
489,637
|
|
|
$
|
289,963
|
|
Adjustments to reconcile income from operations to net cash from operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
91,281
|
|
|
94,638
|
|
|
84,778
|
|
|||
Impairment and related charges
|
4,486
|
|
|
17,112
|
|
|
67,805
|
|
|||
Share-based compensation expense related to equity classified awards
|
60,979
|
|
|
53,545
|
|
|
38,897
|
|
|||
Non-cash restructuring charges
|
7,440
|
|
|
—
|
|
|
—
|
|
|||
Amortization and write-off of program rights
|
961,134
|
|
|
954,238
|
|
|
862,302
|
|
|||
Amortization of deferred carriage fees
|
17,342
|
|
|
17,605
|
|
|
16,990
|
|
|||
Unrealized foreign currency transaction (gain) loss
|
2,057
|
|
|
(15,258
|
)
|
|
37,770
|
|
|||
Unrealized (gain) loss on derivative contracts, net
|
(43,476
|
)
|
|
(27,233
|
)
|
|
(1,920
|
)
|
|||
Amortization and write-off of deferred financing costs and discounts on indebtedness
|
7,715
|
|
|
8,436
|
|
|
9,341
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
3,004
|
|
|
50,639
|
|
|||
Bad debt expense
|
7,399
|
|
|
3,567
|
|
|
1,924
|
|
|||
Deferred income taxes
|
33,367
|
|
|
(48,665
|
)
|
|
11,642
|
|
|||
Excess tax benefits from share-based compensation arrangements
|
—
|
|
|
—
|
|
|
(789
|
)
|
|||
Other, net
|
5,311
|
|
|
(11,014
|
)
|
|
(6,383
|
)
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable, trade (including amounts due from related parties, net)
|
(52,106
|
)
|
|
(74,561
|
)
|
|
(26,496
|
)
|
|||
Prepaid expenses and other assets
|
(2,789
|
)
|
|
(59,979
|
)
|
|
(4,981
|
)
|
|||
Program rights and obligations, net
|
(978,763
|
)
|
|
(996,816
|
)
|
|
(973,193
|
)
|
|||
Income taxes payable
|
(17,006
|
)
|
|
(21,966
|
)
|
|
43,153
|
|
|||
Deferred revenue
|
(6,392
|
)
|
|
(11,553
|
)
|
|
(9,836
|
)
|
|||
Deferred carriage fees, net
|
(4,250
|
)
|
|
(4,617
|
)
|
|
(10,396
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
48,851
|
|
|
15,609
|
|
|
33,115
|
|
|||
Net cash provided by operating activities
|
606,547
|
|
|
385,729
|
|
|
514,325
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Capital expenditures
|
(89,802
|
)
|
|
(80,049
|
)
|
|
(79,220
|
)
|
|||
Return of capital from investees
|
4,088
|
|
|
2,447
|
|
|
—
|
|
|||
Payments for acquisitions, net of cash acquired
|
(84,389
|
)
|
|
—
|
|
|
(354
|
)
|
|||
Investments in and loans to investees
|
(90,081
|
)
|
|
(53,000
|
)
|
|
(95,000
|
)
|
|||
Net cash used in investing activities
|
(260,184
|
)
|
|
(130,602
|
)
|
|
(174,574
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from the issuance of long-term debt
|
289
|
|
|
1,536,000
|
|
|
982,500
|
|
|||
Principal payments on long-term debt
|
—
|
|
|
(1,257,965
|
)
|
|
(848,000
|
)
|
|||
Premium and fees paid on extinguishment of debt
|
—
|
|
|
—
|
|
|
(40,954
|
)
|
|||
Payments for financing costs
|
—
|
|
|
(10,405
|
)
|
|
(2,070
|
)
|
|||
Deemed repurchase of restricted stock units
|
(16,836
|
)
|
|
(14,496
|
)
|
|
(10,822
|
)
|
|||
Purchase of treasury stock
|
(283,143
|
)
|
|
(434,210
|
)
|
|
(223,237
|
)
|
|||
Proceeds from stock option exercises
|
4,317
|
|
|
—
|
|
|
1,228
|
|
|||
Excess tax benefits from share-based compensation arrangements
|
—
|
|
|
—
|
|
|
789
|
|
|||
Principal payments on capital lease obligations
|
(4,938
|
)
|
|
(4,573
|
)
|
|
(4,288
|
)
|
|||
Distributions to noncontrolling interest
|
(14,296
|
)
|
|
(18,561
|
)
|
|
(9,010
|
)
|
|||
Net cash used in financing activities
|
(314,607
|
)
|
|
(204,210
|
)
|
|
(153,864
|
)
|
|||
Net increase in cash and cash equivalents from operations
|
31,756
|
|
|
50,917
|
|
|
185,887
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(35,653
|
)
|
|
26,477
|
|
|
(20,819
|
)
|
|||
Cash and cash equivalents at beginning of year
|
558,783
|
|
|
481,389
|
|
|
316,321
|
|
|||
Cash and cash equivalents at end of year
|
$
|
554,886
|
|
|
$
|
558,783
|
|
|
$
|
481,389
|
|
•
|
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 and IFC in Canada. Our AMC Studios operations produce original programming for our programming networks and also license 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 AMCNI, the Company's international programming businesses consisting of a portfolio of channels in over
130
countries and territories around the world; IFC Films, the Company's independent film distribution business; Levity, acquired April 20, 2018, our production services and comedy venues company; RLJE, acquired October 1, 2018, a content distribution company that also includes the subscription streaming services Acorn TV and Urban Movie Channel ("UMC") and our wholly-owned subscription streaming services, Shudder and Sundance Now.
|
(In thousands)
|
|
December 31, 2017
|
|
Impact of
Adoption |
|
January 1, 2018
|
||||||
Current assets
|
|
$
|
1,879,850
|
|
|
$
|
3,658
|
|
|
$
|
1,883,508
|
|
Total assets
|
|
5,032,985
|
|
|
19,899
|
|
|
5,052,884
|
|
|||
Current liabilities
|
|
744,102
|
|
|
835
|
|
|
744,937
|
|
|||
Total liabilities
|
|
4,650,436
|
|
|
7,115
|
|
|
4,657,551
|
|
(In thousands)
|
Years Ended December 31,
|
|||||||
2018
|
|
2017
|
|
2016
|
||||
Basic weighted average shares outstanding
|
58,066
|
|
|
64,905
|
|
|
71,746
|
|
Effect of dilution:
|
|
|
|
|
|
|||
Stock options
|
15
|
|
|
1
|
|
|
13
|
|
Restricted stock units
|
866
|
|
|
719
|
|
|
651
|
|
Diluted weighted average shares outstanding
|
58,947
|
|
|
65,625
|
|
|
72,410
|
|
|
Shares Outstanding
|
||||
(In thousands)
|
Class A
Common Stock
|
|
Class B
Common Stock
|
||
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
|
|
Share repurchases
|
(5,386
|
)
|
|
—
|
|
Employee and non-employee director stock transactions*
|
534
|
|
|
—
|
|
Balance at December 31, 2018
|
44,749
|
|
|
11,484
|
|
(In thousands)
|
|
December 31, 2018
|
|
December 31, 2017
(a)
|
||||
Balances from contracts with customers:
|
|
|
|
|
||||
Accounts receivable (including long-term, included in Other assets)
|
|
$
|
1,018,105
|
|
|
$
|
926,089
|
|
Contract assets, short-term (included in Other current assets)
|
|
9,131
|
|
|
—
|
|
||
Contract assets, long-term (included in Other assets)
|
|
8,136
|
|
|
—
|
|
||
Contract liabilities (Deferred revenue)
|
|
55,424
|
|
|
46,433
|
|
(a)
|
As noted above, prior period amounts have not been adjusted under the modified retrospective method.
|
|
2018 Restructuring Charges
|
||||||||||
(In thousands)
|
Restructuring
Plan
|
|
Distribution
Exits
|
|
Total
|
||||||
National Networks
|
$
|
17,160
|
|
|
$
|
—
|
|
|
$
|
17,160
|
|
International and Other
|
18,803
|
|
|
16,386
|
|
|
35,189
|
|
|||
Inter-segment Eliminations
|
—
|
|
|
(6,502)
|
|
|
(6,502
|
)
|
|||
|
$
|
35,963
|
|
|
$
|
9,884
|
|
|
$
|
45,847
|
|
(In thousands)
|
Year Ended December 31, 2018
|
|
Year Ended December 31, 2017
|
|
Year Ended December 31, 2016
|
||||||
National Networks
|
$
|
17,160
|
|
|
$
|
(53
|
)
|
|
$
|
8,516
|
|
International & Other
(1)
|
35,189
|
|
|
6,181
|
|
|
20,987
|
|
|||
Inter-segment eliminations
|
(6,502
|
)
|
|
—
|
|
|
—
|
|
|||
Total restructuring expense
|
$
|
45,847
|
|
|
$
|
6,128
|
|
|
$
|
29,503
|
|
(In thousands)
|
Severance and Employee-Related Costs
|
|
Other Exit Costs
|
|
Total
|
||||||
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
|
|
Charges
|
35,965
|
|
|
9,882
|
|
|
45,847
|
|
|||
Other
|
(137
|
)
|
|
(745
|
)
|
|
(882
|
)
|
|||
Cash payments
|
(3,257
|
)
|
|
(297
|
)
|
|
(3,554
|
)
|
|||
Non-cash adjustments
|
—
|
|
|
(7,440
|
)
|
|
(7,440
|
)
|
|||
Currency translation
|
(9
|
)
|
|
(9
|
)
|
|
(18
|
)
|
|||
Balance at December 31, 2018
|
$
|
33,774
|
|
|
$
|
1,415
|
|
|
$
|
35,189
|
|
(In thousands)
|
|
||
Years Ending December 31,
|
|
||
2019
|
$
|
343,589
|
|
2020
|
192,847
|
|
|
2021
|
93,604
|
|
|
2022
|
51,952
|
|
|
2023
|
18,586
|
|
|
Thereafter
|
16,260
|
|
|
|
$
|
716,838
|
|
Fair value of consideration transferred
|
$
|
41,513
|
|
Fair value of previously held interest
|
118,978
|
|
|
Fair value of redeemable noncontrolling interest
|
115,619
|
|
|
|
$
|
276,110
|
|
Allocation to net assets acquired:
|
|
||
Cash
|
3,360
|
|
|
Accounts receivable
|
16,316
|
|
|
Prepaid expenses and other current assets
|
963
|
|
|
Programming rights
|
69,775
|
|
|
Property and equipment
|
2,841
|
|
|
Other assets (equity method investments)
|
36,700
|
|
|
Intangible assets
|
125,100
|
|
|
Accounts payable
|
(12,008
|
)
|
|
Accrued liabilities
|
(41,401
|
)
|
|
Debt
|
(25,187
|
)
|
|
|
176,459
|
|
|
Goodwill
|
99,651
|
|
|
|
$
|
276,110
|
|
Cash paid for controlling interest
|
$
|
48,350
|
|
Redeemable noncontrolling interest
|
30,573
|
|
|
|
$
|
78,923
|
|
Allocation to net assets acquired:
|
|
||
Cash
|
13,471
|
|
|
Other current assets
|
17,251
|
|
|
Property and equipment
|
20,663
|
|
|
Intangible assets
|
46,413
|
|
|
Other noncurrent assets
|
3,306
|
|
|
Current liabilities
|
(23,647
|
)
|
|
Noncurrent liabilities
|
(21,394
|
)
|
|
Noncontrolling interests acquired
|
(1,354
|
)
|
|
Fair value of net assets acquired
|
54,709
|
|
|
Goodwill
|
24,214
|
|
|
|
$
|
78,923
|
|
(In thousands, except per share data)
|
Pro Forma Financial Information
For the Years Ended December 31,
|
||||||
2018
|
|
2017
|
|||||
Revenues, net
|
$
|
3,087
|
|
|
$
|
3,033
|
|
Income from operations, net of income taxes
|
$
|
426
|
|
|
$
|
459
|
|
Net income per share, basic
|
$
|
7.34
|
|
|
$
|
7.06
|
|
Net income per share, diluted
|
$
|
7.23
|
|
|
$
|
6.99
|
|
(In thousands)
|
December 31,
|
|
Estimated
Useful Lives
|
||||||
2018
|
|
2017
|
|
||||||
Program, service and test equipment
|
$
|
250,328
|
|
|
$
|
212,357
|
|
|
2 to 5 years
|
Satellite equipment
|
46,368
|
|
|
46,315
|
|
|
13 years
|
||
Furniture and fixtures
|
29,421
|
|
|
21,067
|
|
|
5 to 8 years
|
||
Transmission equipment
|
58,710
|
|
|
56,035
|
|
|
5 years
|
||
Leasehold improvements
|
155,353
|
|
|
107,659
|
|
|
Term of lease
|
||
Property and equipment
|
540,180
|
|
|
443,433
|
|
|
|
||
Accumulated depreciation and amortization
|
(293,918
|
)
|
|
(259,919
|
)
|
|
|
||
Property and equipment, net
|
$
|
246,262
|
|
|
$
|
183,514
|
|
|
|
(In thousands)
|
December 31,
|
||||||
2018
|
|
2017
|
|||||
Satellite equipment
|
$
|
46,368
|
|
|
$
|
46,315
|
|
Less accumulated amortization
|
(26,808
|
)
|
|
(22,783
|
)
|
||
|
$
|
19,560
|
|
|
$
|
23,532
|
|
(In thousands)
|
National Networks
|
|
International
and Other
|
|
Total
|
||||||
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
|
|
Additions
|
—
|
|
|
123,865
|
|
|
123,865
|
|
|||
Amortization of "second component" goodwill
|
(1,328
|
)
|
|
—
|
|
|
(1,328
|
)
|
|||
Foreign currency translation
|
—
|
|
|
(19,658
|
)
|
|
(19,658
|
)
|
|||
December 31, 2018
|
$
|
238,431
|
|
|
$
|
559,606
|
|
|
$
|
798,037
|
|
(In thousands)
|
December 31, 2018
|
|
Estimated
Useful Lives
|
||||||||||
Gross
|
|
Accumulated
Amortization
|
|
Net
|
|
||||||||
Amortizable intangible assets:
|
|
|
|
|
|
|
|
||||||
Affiliate and customer relationships
|
$
|
620,771
|
|
|
$
|
(198,500
|
)
|
|
$
|
422,271
|
|
|
6 to 25 years
|
Advertiser relationships
|
46,282
|
|
|
(17,613
|
)
|
|
28,669
|
|
|
11 years
|
|||
Trade names
|
118,772
|
|
|
(17,971
|
)
|
|
100,801
|
|
|
3 to 20 years
|
|||
Other amortizable intangible assets
|
13,643
|
|
|
(6,377
|
)
|
|
7,266
|
|
|
5 to 15 years
|
|||
Total amortizable intangible assets
|
799,468
|
|
|
(240,461
|
)
|
|
559,007
|
|
|
|
|||
Indefinite-lived intangible assets:
|
|
|
|
|
|
|
|
||||||
Trademarks
|
19,900
|
|
|
—
|
|
|
19,900
|
|
|
|
|||
Total intangible assets
|
$
|
819,368
|
|
|
$
|
(240,461
|
)
|
|
$
|
578,907
|
|
|
|
(In thousands)
|
December 31, 2017
|
|
|
||||||||||
Gross
|
|
Accumulated
Amortization
|
|
Net
|
|
|
|||||||
Amortizable intangible assets:
|
|
|
|
|
|
|
|
||||||
Affiliate and customer relationships
|
$
|
527,713
|
|
|
$
|
(167,911
|
)
|
|
$
|
359,802
|
|
|
|
Advertiser relationships
|
46,282
|
|
|
(13,405
|
)
|
|
32,877
|
|
|
|
|||
Trade names
|
53,761
|
|
|
(14,420
|
)
|
|
39,341
|
|
|
|
|||
Other amortizable intangible assets
|
11,401
|
|
|
(6,079
|
)
|
|
5,322
|
|
|
|
|||
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, 2018
|
|
December 31, 2017
|
||||
Interest
|
$
|
30,018
|
|
|
$
|
30,262
|
|
Employee related costs
|
100,729
|
|
|
117,850
|
|
||
Income taxes payable
|
1,527
|
|
|
19,558
|
|
||
Other accrued expenses
|
132,644
|
|
|
95,406
|
|
||
Total accrued liabilities
|
$
|
264,918
|
|
|
$
|
263,076
|
|
(In thousands)
|
December 31, 2018
|
|
December 31, 2017
|
||||
Senior Secured Credit Facility:
|
|
|
|
||||
Term Loan A Facility
|
$
|
750,000
|
|
|
$
|
750,000
|
|
Senior Notes:
|
|
|
|
||||
4.75% Notes due August 2025
|
800,000
|
|
|
800,000
|
|
||
5.00% Notes due April 2024
|
1,000,000
|
|
|
1,000,000
|
|
||
4.75% Notes due December 2022
|
600,000
|
|
|
600,000
|
|
||
Other debt
|
2,584
|
|
|
—
|
|
||
Total long-term debt
|
3,152,584
|
|
|
3,150,000
|
|
||
Unamortized discount
|
(29,181
|
)
|
|
(33,776
|
)
|
||
Unamortized deferred financing costs
|
(13,848
|
)
|
|
(16,967
|
)
|
||
Long-term debt, net
|
3,109,555
|
|
|
3,099,257
|
|
||
Current portion of long-term debt
|
21,334
|
|
|
—
|
|
||
Noncurrent portion of long-term debt
|
$
|
3,088,221
|
|
|
$
|
3,099,257
|
|
•
|
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, 2018:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
|
$
|
68,498
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
68,498
|
|
Marketable securities
|
|
1,173
|
|
|
—
|
|
|
—
|
|
|
1,173
|
|
||||
Foreign currency derivatives
|
|
—
|
|
|
3,509
|
|
|
—
|
|
|
3,509
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
|
—
|
|
|
356
|
|
|
—
|
|
|
356
|
|
||||
Foreign currency derivatives
|
|
$
|
—
|
|
|
$
|
3,121
|
|
|
$
|
—
|
|
|
$
|
3,121
|
|
At December 31, 2017:
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
|
$
|
100,615
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
100,615
|
|
Marketable securities
|
|
10,709
|
|
|
—
|
|
|
—
|
|
|
10,709
|
|
||||
Investments
|
|
9,948
|
|
|
—
|
|
|
—
|
|
|
9,948
|
|
||||
Interest rate swap contracts
|
|
—
|
|
|
1,444
|
|
|
—
|
|
|
1,444
|
|
||||
Foreign currency derivatives
|
|
—
|
|
|
3,801
|
|
|
—
|
|
|
3,801
|
|
||||
Other derivatives
|
|
—
|
|
|
6,174
|
|
|
30,891
|
|
|
37,065
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency derivatives
|
|
$
|
—
|
|
|
$
|
4,475
|
|
|
$
|
—
|
|
|
$
|
4,475
|
|
(In thousands)
|
December 31, 2018
|
||||||
Carrying
Amount
|
|
Estimated
Fair Value
|
|||||
Debt instruments:
|
|
|
|
||||
Term Loan A Facility
|
$
|
739,710
|
|
|
$
|
738,750
|
|
4.75% Notes due August 2025
|
786,458
|
|
|
720,000
|
|
||
5.00% Notes due April 2024
|
986,275
|
|
|
947,500
|
|
||
4.75% Notes due December 2022
|
594,528
|
|
|
580,500
|
|
||
Other debt
|
2,584
|
|
|
2,584
|
|
||
|
$
|
3,109,555
|
|
|
$
|
2,989,334
|
|
(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)
|
Balance Sheet Location
|
|
December 31,
|
||||
|
|
2018
|
|
2017
|
|||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
||
Interest rate swap contracts
|
Accrued liabilities
|
|
356
|
|
|
—
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
||
Assets:
|
|
|
|
|
|
||
Foreign currency derivatives
|
Prepaid expenses and other current assets
|
|
1,452
|
|
|
943
|
|
Foreign currency derivatives
|
Other assets
|
|
2,057
|
|
|
2,858
|
|
Interest rate swap contracts
|
Prepaid expenses and other current assets
|
|
—
|
|
|
1,444
|
|
Other derivatives
|
Other assets
|
|
—
|
|
|
37,065
|
|
Liabilities:
|
|
|
|
|
|
||
Foreign currency derivatives
|
Accrued liabilities
|
|
700
|
|
|
1,223
|
|
Foreign currency derivatives
|
Other liabilities
|
|
2,421
|
|
|
3,252
|
|
(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,
|
|||||||||||||
2018
|
|
2017
|
|
|
|
2018
|
|
2017
|
|||||||||
Derivatives in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swap contracts
|
$
|
(356
|
)
|
|
$
|
565
|
|
|
Interest expense
|
|
$
|
—
|
|
|
$
|
600
|
|
(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, 2018
and
2017
.
|
(In thousands)
|
Location of Gain (Loss) Recognized in Earnings on Derivatives
|
|
Amount of Gain (Loss) Recognized in Earnings
on Derivatives
|
||||||
|
|
Years Ended December 31,
|
|||||||
|
|
2018
|
|
2017
|
|||||
Derivatives not designated as hedging relationships:
|
|
|
|
|
|
||||
Interest rate swap contracts
|
Interest expense
|
|
$
|
(1,444
|
)
|
|
$
|
3
|
|
Foreign currency derivatives
|
Miscellaneous, net
|
|
1,279
|
|
|
(2,958
|
)
|
||
Other derivatives
|
Miscellaneous, net
|
|
42,092
|
|
|
24,223
|
|
||
Total
|
|
|
$
|
41,927
|
|
|
$
|
21,268
|
|
(In thousands)
|
|
||
2019
|
$
|
7,665
|
|
2020
|
5,924
|
|
|
2021
|
4,429
|
|
|
2022
|
4,451
|
|
|
2023
|
4,477
|
|
|
Thereafter
|
9,697
|
|
|
Total minimum lease payments
|
36,643
|
|
|
Less amount representing interest (at 9%-10%)
|
(10,126
|
)
|
|
Present value of net minimum future capital lease payments
|
26,517
|
|
|
Less principal portion of current installments
|
(5,090
|
)
|
|
Long-term portion of obligations under capital leases
|
$
|
21,427
|
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
2018
|
|
2017
|
|
2016
|
|||||||
Domestic
|
$
|
587,346
|
|
|
$
|
618,955
|
|
|
$
|
500,757
|
|
Foreign
|
32,927
|
|
|
21,423
|
|
|
(45,932
|
)
|
|||
Total
|
$
|
620,273
|
|
|
$
|
640,378
|
|
|
$
|
454,825
|
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
2018
|
|
2017
|
|
2016
|
|||||||
Current expense (benefit):
|
|
|
|
|
|
||||||
Federal
|
$
|
80,360
|
|
|
$
|
162,639
|
|
|
$
|
120,634
|
|
State
|
13,663
|
|
|
14,301
|
|
|
11,252
|
|
|||
Foreign
|
25,001
|
|
|
17,382
|
|
|
22,946
|
|
|||
|
119,024
|
|
|
194,322
|
|
|
154,832
|
|
|||
Deferred expense (benefit):
|
|
|
|
|
|
||||||
Federal
|
34,636
|
|
|
(38,416
|
)
|
|
12,140
|
|
|||
State
|
3,627
|
|
|
(2,436
|
)
|
|
2,515
|
|
|||
Foreign
|
(4,896
|
)
|
|
(7,813
|
)
|
|
(3,013
|
)
|
|||
|
33,367
|
|
|
(48,665
|
)
|
|
11,642
|
|
|||
Tax expense (benefit) relating to uncertain tax positions, including accrued interest
|
3,915
|
|
|
5,084
|
|
|
(1,612
|
)
|
|||
Income tax expense
|
$
|
156,306
|
|
|
$
|
150,741
|
|
|
$
|
164,862
|
|
(In thousands)
|
Years Ended December 31,
|
|||||||
2018
|
|
2017
|
|
2016
|
||||
U.S. federal statutory income tax rate
|
21
|
%
|
|
35
|
%
|
|
35
|
%
|
State and local income taxes, net of federal benefit
|
2
|
|
|
2
|
|
|
2
|
|
Effect of foreign operations
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
Effect of rate changes on deferred taxes
|
(2
|
)
|
|
(11
|
)
|
|
—
|
|
Transition tax, net of foreign taxes deemed paid
|
—
|
|
|
2
|
|
|
—
|
|
Nontaxable income attributable to noncontrolling interests
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
Changes in the valuation allowance
|
3
|
|
|
—
|
|
|
5
|
|
Domestic production activity deduction
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
Tax expense relating to uncertain tax positions, including accrued interest, net of deferred tax benefits
|
—
|
|
|
1
|
|
|
(1
|
)
|
Other
|
2
|
|
|
—
|
|
|
—
|
|
Effective income tax rate
|
25
|
%
|
|
24
|
%
|
|
36
|
%
|
(In thousands)
|
December 31,
|
||||||
2018
|
|
2017
|
|||||
Deferred Tax Asset (Liability)
|
|
|
|
||||
Noncurrent
|
|
|
|
||||
NOLs and tax credit carry forwards
|
$
|
123,487
|
|
|
$
|
69,771
|
|
Compensation and benefit plans
|
29,294
|
|
|
30,880
|
|
||
Allowance for doubtful accounts
|
981
|
|
|
370
|
|
||
Fixed assets and intangible assets
|
24,150
|
|
|
24,737
|
|
||
Interest rate swap contracts
|
—
|
|
|
1,893
|
|
||
Accrued interest expense
|
8,832
|
|
|
13,049
|
|
||
Other liabilities
|
24,594
|
|
|
12,562
|
|
||
Deferred tax asset
|
211,338
|
|
|
153,262
|
|
||
Valuation allowance
|
(95,185
|
)
|
|
(57,121
|
)
|
||
Net deferred tax asset, noncurrent
|
116,153
|
|
|
96,141
|
|
||
Prepaid liabilities
|
(514
|
)
|
|
(501
|
)
|
||
Fixed assets and intangible assets
|
(90,960
|
)
|
|
(61,127
|
)
|
||
Investments in partnerships
|
(121,156
|
)
|
|
(103,474
|
)
|
||
Other assets
|
(29,694
|
)
|
|
(20,657
|
)
|
||
Deferred tax liability, noncurrent
|
(242,324
|
)
|
|
(185,759
|
)
|
||
Total net deferred tax liability
|
$
|
(126,171
|
)
|
|
$
|
(89,618
|
)
|
(In thousands)
|
|
||
Balance at December 31, 2017
|
$
|
21,797
|
|
Increases related to current year tax positions
|
4,038
|
|
|
Increases related to prior year tax positions
|
—
|
|
|
Decreases related to prior year tax positions
|
(1,085
|
)
|
|
Decreases due to settlements/payments
|
(1,581
|
)
|
|
Balance at December 31, 2018
|
$
|
23,169
|
|
(In thousands)
|
Payments due by period
|
||||||||||||||||||
Total
|
|
Year 1
|
|
Years
2 - 3
|
|
Years
4 - 5
|
|
More than
5 years
|
|||||||||||
Purchase obligations (1)
|
$
|
1,752,139
|
|
|
$
|
648,203
|
|
|
$
|
531,366
|
|
|
$
|
122,747
|
|
|
$
|
449,823
|
|
Total
|
$
|
1,752,139
|
|
|
$
|
648,203
|
|
|
$
|
531,366
|
|
|
$
|
122,747
|
|
|
$
|
449,823
|
|
(1)
|
Purchase obligations consist primarily of program rights obligations, participations, residuals, and transmission and marketing commitments.
|
(In thousands)
|
Redeemable Noncontrolling Interest
|
||
December 31, 2016
|
$
|
219,331
|
|
Net earnings
|
17,797
|
|
|
Distributions
|
(18,561
|
)
|
|
Other
|
37
|
|
|
December 31, 2017
|
$
|
218,604
|
|
Net earnings
|
15,026
|
|
|
Distributions
|
(11,450
|
)
|
|
Additions from acquisitions
|
77,378
|
|
|
December 31, 2018
|
$
|
299,558
|
|
|
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, 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
|
|
Granted
|
587,471
|
|
|
887,807
|
|
|
$
|
52.76
|
|
Released/Vested
|
(531,655
|
)
|
|
(227,852
|
)
|
|
$
|
66.58
|
|
Canceled/Forfeited
|
(294,380
|
)
|
|
(91,335
|
)
|
|
$
|
59.80
|
|
Unvested award balance, December 31, 2018
|
881,477
|
|
|
2,384,767
|
|
|
$
|
57.49
|
|
|
Number of
Restricted
Stock Units
|
|
Weighted Average
Fair Value Per Stock Unit at Date of Grant |
|||
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
|
|
Granted
|
32,210
|
|
|
$
|
61.38
|
|
Released/Vested
|
—
|
|
|
$
|
—
|
|
Vested award balance, December 31, 2018
|
219,656
|
|
|
$
|
54.40
|
|
|
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, 2016
|
388,385
|
|
|
$
|
48.26
|
|
|
9.79
|
|
$
|
1,585
|
|
Granted
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||
Balance, December 31, 2017
|
388,385
|
|
|
$
|
48.26
|
|
|
8.79
|
|
$
|
2,260
|
|
Exercised
|
(89,462
|
)
|
|
$
|
—
|
|
|
|
|
|
||
Balance, December 31, 2018
|
298,923
|
|
|
$
|
48.26
|
|
|
7.79
|
|
$
|
1,979
|
|
Options exercisable at December 31, 2018
|
169,462
|
|
|
$
|
48.26
|
|
|
7.79
|
|
$
|
1,122
|
|
Options expected to vest in the future
|
129,461
|
|
|
$
|
48.26
|
|
|
7.79
|
|
$
|
857
|
|
(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 the reporting date, as indicated.
|
(In thousands)
|
Years Ended December 31,
|
|||||||
2018
|
|
2017
|
|
2016
|
||||
Non-Cash Investing and Financing Activities:
|
|
|
|
|
|
|||
Continuing Operations:
|
|
|
|
|
|
|||
Increase in capital lease obligations
|
628
|
|
|
—
|
|
|
10,982
|
|
Treasury stock not yet settled
|
985
|
|
|
995
|
|
|
10,454
|
|
Exercise of RLJE Warrants
|
20,086
|
|
|
5,001
|
|
|
—
|
|
Capital expenditures incurred but not yet paid
|
5,081
|
|
|
5,889
|
|
|
6,988
|
|
Supplemental Data:
|
|
|
|
|
|
|||
Cash interest paid—continuing operations
|
147,710
|
|
|
110,650
|
|
|
128,319
|
|
Income taxes paid, net—continuing operations
|
138,433
|
|
|
219,425
|
|
|
106,476
|
|
(In thousands)
|
Year Ended December 31, 2018
|
||||||||||||||
Currency Translation Adjustment
|
|
Gains (Losses) on Cash Flow Hedges
|
|
Gains (Losses) on Available for Sale Investments
|
|
Accumulated Other Comprehensive Loss
|
|||||||||
Beginning Balance
|
$
|
(118,166
|
)
|
|
$
|
369
|
|
|
$
|
3,411
|
|
|
$
|
(114,386
|
)
|
Other comprehensive loss before reclassifications
|
(41,716
|
)
|
|
(356
|
)
|
|
—
|
|
|
(42,072
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
(a)
|
—
|
|
|
(370
|
)
|
|
—
|
|
|
(370
|
)
|
||||
Net current-period other comprehensive (loss), before income taxes
|
(41,716
|
)
|
|
(726
|
)
|
|
—
|
|
|
(42,442
|
)
|
||||
Income tax expense (benefit)
|
(38
|
)
|
|
83
|
|
|
—
|
|
|
45
|
|
||||
Net current-period other comprehensive (loss), net of income taxes
|
(41,754
|
)
|
|
(643
|
)
|
|
—
|
|
|
(42,397
|
)
|
||||
Cumulative effect of adoption of accounting standard
(a)
|
—
|
|
|
—
|
|
|
(3,411
|
)
|
|
(3,411
|
)
|
||||
Ending Balance
|
$
|
(159,920
|
)
|
|
$
|
(274
|
)
|
|
$
|
—
|
|
|
$
|
(160,194
|
)
|
(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 income before reclassifications
|
76,023
|
|
|
565
|
|
|
5,398
|
|
|
81,986
|
|
||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
|
|
(600
|
)
|
|
—
|
|
|
(600
|
)
|
||||
Net current-period other comprehensive income (loss), before income taxes
|
76,023
|
|
|
(35
|
)
|
|
5,398
|
|
|
81,386
|
|
||||
Income tax expense (benefit)
|
—
|
|
|
13
|
|
|
(1,987
|
)
|
|
(1,974
|
)
|
||||
Net current-period other comprehensive income (loss), 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, 2018
|
||||||||||||||
National
Networks
|
|
International
and Other
|
|
Inter-segment
eliminations
|
|
Consolidated
|
|||||||||
Revenues, net
|
|
|
|
|
|
|
|
||||||||
Advertising
|
$
|
944,675
|
|
|
$
|
91,404
|
|
|
$
|
—
|
|
|
$
|
1,036,079
|
|
Distribution
|
1,468,650
|
|
|
506,902
|
|
|
(39,702
|
)
|
|
1,935,850
|
|
||||
Consolidated revenues, net
|
$
|
2,413,325
|
|
|
$
|
598,306
|
|
|
$
|
(39,702
|
)
|
|
$
|
2,971,929
|
|
Operating income (loss)
|
$
|
825,770
|
|
|
$
|
(93,326
|
)
|
|
$
|
(5,535
|
)
|
|
$
|
726,909
|
|
Share-based compensation expense
|
48,621
|
|
|
12,358
|
|
|
—
|
|
|
60,979
|
|
||||
Restructuring expense (credit)
|
17,160
|
|
|
35,189
|
|
|
(6,502
|
)
|
|
45,847
|
|
||||
Impairment and related charges
|
—
|
|
|
4,486
|
|
|
—
|
|
|
4,486
|
|
||||
Depreciation and amortization
|
33,728
|
|
|
57,553
|
|
|
—
|
|
|
91,281
|
|
||||
Equity investees (>50% interest) AOI
|
—
|
|
|
3,043
|
|
|
—
|
|
|
3,043
|
|
||||
Adjusted operating income
|
$
|
925,279
|
|
|
$
|
19,303
|
|
|
$
|
(12,037
|
)
|
|
$
|
932,545
|
|
Capital expenditures
|
$
|
16,316
|
|
|
$
|
73,486
|
|
|
$
|
—
|
|
|
$
|
89,802
|
|
(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 expense (credit)
|
(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)
|
Years Ended December 31,
|
||||||||||
2018
|
|
2017
|
|
2016
|
|||||||
Inter-segment revenues
|
|
|
|
|
|
||||||
National Networks
|
$
|
(33,600
|
)
|
|
$
|
(17,634
|
)
|
|
$
|
(14,963
|
)
|
International and Other
|
(6,102
|
)
|
|
(1,472
|
)
|
|
(419
|
)
|
|||
|
$
|
(39,702
|
)
|
|
$
|
(19,106
|
)
|
|
$
|
(15,382
|
)
|
(In thousands)
|
Year Ended December 31, 2018
|
|
Year Ended December 31, 2017
|
||||
Revenue
|
|
|
|
||||
United States
|
$
|
2,389,624
|
|
|
$
|
2,244,057
|
|
Europe
|
394,235
|
|
|
369,815
|
|
||
Other
|
188,070
|
|
|
191,819
|
|
||
|
$
|
2,971,929
|
|
|
$
|
2,805,691
|
|
Condensed Consolidating Balance Sheet
|
|||||||||||||||||||
December 31, 2018
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
121
|
|
|
$
|
368,151
|
|
|
$
|
186,614
|
|
|
$
|
—
|
|
|
$
|
554,886
|
|
Accounts receivable, trade (including amounts due from
related parties, net,
less allowance for doubtful accounts)
|
16
|
|
|
600,121
|
|
|
235,840
|
|
|
—
|
|
|
835,977
|
|
|||||
Current portion of program rights, net
|
—
|
|
|
292,002
|
|
|
148,955
|
|
|
(218
|
)
|
|
440,739
|
|
|||||
Prepaid expenses, other current assets and intercompany receivable
|
6,543
|
|
|
158,936
|
|
|
23,549
|
|
|
(57,219
|
)
|
|
131,809
|
|
|||||
Total current assets
|
6,680
|
|
|
1,419,210
|
|
|
594,958
|
|
|
(57,437
|
)
|
|
1,963,411
|
|
|||||
Property and equipment, net
|
—
|
|
|
175,040
|
|
|
71,222
|
|
|
—
|
|
|
246,262
|
|
|||||
Investment in affiliates
|
3,656,003
|
|
|
1,655,083
|
|
|
—
|
|
|
(5,311,086
|
)
|
|
—
|
|
|||||
Program rights, net
|
—
|
|
|
969,802
|
|
|
245,862
|
|
|
(1,613
|
)
|
|
1,214,051
|
|
|||||
Long-term intercompany notes receivable
|
—
|
|
|
—
|
|
|
190
|
|
|
(190
|
)
|
|
—
|
|
|||||
Deferred carriage fees, net
|
—
|
|
|
15,993
|
|
|
838
|
|
|
—
|
|
|
16,831
|
|
|||||
Intangible assets, net
|
—
|
|
|
161,417
|
|
|
417,490
|
|
|
—
|
|
|
578,907
|
|
|||||
Goodwill
|
—
|
|
|
65,282
|
|
|
732,755
|
|
|
—
|
|
|
798,037
|
|
|||||
Deferred tax asset, net
|
—
|
|
|
—
|
|
|
19,272
|
|
|
—
|
|
|
19,272
|
|
|||||
Other assets
|
—
|
|
|
149,724
|
|
|
292,068
|
|
|
—
|
|
|
441,792
|
|
|||||
Total assets
|
$
|
3,662,683
|
|
|
$
|
4,611,551
|
|
|
$
|
2,374,655
|
|
|
$
|
(5,370,326
|
)
|
|
$
|
5,278,563
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
34,630
|
|
|
$
|
72,436
|
|
|
$
|
—
|
|
|
$
|
107,066
|
|
Accrued liabilities and intercompany payable
|
35,189
|
|
|
173,836
|
|
|
114,943
|
|
|
(59,050
|
)
|
|
264,918
|
|
|||||
Current portion of program rights obligations
|
—
|
|
|
259,414
|
|
|
84,175
|
|
|
—
|
|
|
343,589
|
|
|||||
Deferred revenue
|
—
|
|
|
34,608
|
|
|
20,816
|
|
|
—
|
|
|
55,424
|
|
|||||
Current portion of long-term debt
|
18,750
|
|
|
—
|
|
|
2,584
|
|
|
—
|
|
|
21,334
|
|
|||||
Current portion of capital lease obligations
|
—
|
|
|
2,941
|
|
|
2,149
|
|
|
—
|
|
|
5,090
|
|
|||||
Total current liabilities
|
53,939
|
|
|
505,429
|
|
|
297,103
|
|
|
(59,050
|
)
|
|
797,421
|
|
|||||
Program rights obligations
|
—
|
|
|
349,814
|
|
|
23,435
|
|
|
—
|
|
|
373,249
|
|
|||||
Long-term debt, net
|
3,088,221
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,088,221
|
|
|||||
Capital lease obligations
|
—
|
|
|
1,420
|
|
|
20,007
|
|
|
—
|
|
|
21,427
|
|
|||||
Deferred tax liability, net
|
140,474
|
|
|
—
|
|
|
4,969
|
|
|
—
|
|
|
145,443
|
|
|||||
Other liabilities and intercompany notes payable
|
63,369
|
|
|
98,885
|
|
|
45,972
|
|
|
(190
|
)
|
|
208,036
|
|
|||||
Total liabilities
|
3,346,003
|
|
|
955,548
|
|
|
391,486
|
|
|
(59,240
|
)
|
|
4,633,797
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
299,558
|
|
|
—
|
|
|
299,558
|
|
|||||
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
AMC Networks stockholders' equity
|
316,680
|
|
|
3,656,003
|
|
|
1,655,083
|
|
|
(5,311,086
|
)
|
|
316,680
|
|
|||||
Non-redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
28,528
|
|
|
—
|
|
|
28,528
|
|
|||||
Total stockholders' equity
|
316,680
|
|
|
3,656,003
|
|
|
1,683,611
|
|
|
(5,311,086
|
)
|
|
345,208
|
|
|||||
Total liabilities and stockholders' equity
|
$
|
3,662,683
|
|
|
$
|
4,611,551
|
|
|
$
|
2,374,655
|
|
|
$
|
(5,370,326
|
)
|
|
$
|
5,278,563
|
|
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 (including amounts due from
related parties, net,
less allowance for doubtful accounts)
|
—
|
|
|
581,270
|
|
|
194,621
|
|
|
—
|
|
|
775,891
|
|
|||||
Current portion of program rights, net
|
—
|
|
|
294,303
|
|
|
149,301
|
|
|
—
|
|
|
443,604
|
|
|||||
Prepaid expenses, other current assets and intercompany receivable
|
3,760
|
|
|
183,815
|
|
|
8,540
|
|
|
(104,389
|
)
|
|
91,726
|
|
|||||
Total current assets
|
4,080
|
|
|
1,450,636
|
|
|
519,677
|
|
|
(104,389
|
)
|
|
1,870,004
|
|
|||||
Property and equipment, net
|
—
|
|
|
136,032
|
|
|
47,482
|
|
|
—
|
|
|
183,514
|
|
|||||
Investment in affiliates
|
3,443,013
|
|
|
934,612
|
|
|
—
|
|
|
(4,377,625
|
)
|
|
—
|
|
|||||
Program rights, net
|
—
|
|
|
1,137,867
|
|
|
191,258
|
|
|
—
|
|
|
1,329,125
|
|
|||||
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' (DEFICIENCY) 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 long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
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' deficiency:
|
|
|
|
|
|
|
|
|
|
||||||||||
AMC Networks stockholders' (deficiency) equity
|
134,944
|
|
|
3,443,013
|
|
|
934,612
|
|
|
(4,377,625
|
)
|
|
134,944
|
|
|||||
Non-redeemable noncontrolling interests
|
—
|
|
|
—
|
|
|
29,001
|
|
|
—
|
|
|
29,001
|
|
|||||
Total stockholders' (deficiency) 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 Statement of Income
|
|||||||||||||||||||
Year Ended December 31, 2018
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenues, net
|
$
|
—
|
|
|
$
|
2,166,686
|
|
|
$
|
820,532
|
|
|
$
|
(15,289
|
)
|
|
$
|
2,971,929
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Technical and operating (excluding depreciation and amortization)
|
—
|
|
|
956,272
|
|
|
493,751
|
|
|
(4,074
|
)
|
|
1,445,949
|
|
|||||
Selling, general and administrative
|
—
|
|
|
450,880
|
|
|
216,608
|
|
|
(10,031
|
)
|
|
657,457
|
|
|||||
Depreciation and amortization
|
—
|
|
|
45,204
|
|
|
46,077
|
|
|
—
|
|
|
91,281
|
|
|||||
Impairment and related charges
|
—
|
|
|
—
|
|
|
4,486
|
|
|
|
|
4,486
|
|
||||||
Restructuring expense
|
—
|
|
|
29,277
|
|
|
16,570
|
|
|
—
|
|
|
45,847
|
|
|||||
Total operating expenses
|
—
|
|
|
1,481,633
|
|
|
777,492
|
|
|
(14,105
|
)
|
|
2,245,020
|
|
|||||
Operating income
|
—
|
|
|
685,053
|
|
|
43,040
|
|
|
(1,184
|
)
|
|
726,909
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
(151,751
|
)
|
|
28,460
|
|
|
(12,522
|
)
|
|
—
|
|
|
(135,813
|
)
|
|||||
Share of affiliates' income (loss)
|
734,472
|
|
|
32,874
|
|
|
—
|
|
|
(767,346
|
)
|
|
—
|
|
|||||
Miscellaneous, net
|
(151
|
)
|
|
(1,876
|
)
|
|
30,020
|
|
|
1,184
|
|
|
29,177
|
|
|||||
Total other income (expense)
|
582,570
|
|
|
59,458
|
|
|
17,498
|
|
|
(766,162
|
)
|
|
(106,636
|
)
|
|||||
Income from operations before income taxes
|
582,570
|
|
|
744,511
|
|
|
60,538
|
|
|
(767,346
|
)
|
|
620,273
|
|
|||||
Income tax expense
|
(136,383
|
)
|
|
(10,039
|
)
|
|
(9,884
|
)
|
|
—
|
|
|
(156,306
|
)
|
|||||
Net income including noncontrolling interests
|
446,187
|
|
|
734,472
|
|
|
50,654
|
|
|
(767,346
|
)
|
|
463,967
|
|
|||||
Net income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(17,780
|
)
|
|
—
|
|
|
(17,780
|
)
|
|||||
Net income attributable to AMC Networks' stockholders
|
$
|
446,187
|
|
|
$
|
734,472
|
|
|
$
|
32,874
|
|
|
$
|
(767,346
|
)
|
|
$
|
446,187
|
|
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 Comprehensive Income
|
|||||||||||||||||||
Year Ended December 31, 2018
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income including noncontrolling interest
|
$
|
446,187
|
|
|
$
|
734,472
|
|
|
$
|
50,654
|
|
|
$
|
(767,346
|
)
|
|
$
|
463,967
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustment
|
(41,716
|
)
|
|
—
|
|
|
(41,716
|
)
|
|
41,716
|
|
|
(41,716
|
)
|
|||||
Unrealized loss on interest rate swaps
|
(356
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(356
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive loss
|
(370
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(370
|
)
|
|||||
Other comprehensive (loss) income, before income taxes
|
(42,442
|
)
|
|
—
|
|
|
(41,716
|
)
|
|
41,716
|
|
|
(42,442
|
)
|
|||||
Income tax expense
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|||||
Other comprehensive (loss) income, net of income taxes
|
(42,397
|
)
|
|
—
|
|
|
(41,716
|
)
|
|
41,716
|
|
|
(42,397
|
)
|
|||||
Comprehensive income
|
403,790
|
|
|
734,472
|
|
|
8,938
|
|
|
(725,630
|
)
|
|
421,570
|
|
|||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(16,044
|
)
|
|
—
|
|
|
(16,044
|
)
|
|||||
Comprehensive income (loss) attributable to AMC Networks' stockholders
|
$
|
403,790
|
|
|
$
|
734,472
|
|
|
$
|
(7,106
|
)
|
|
$
|
(725,630
|
)
|
|
$
|
405,526
|
|
Condensed Consolidating Statement of Comprehensive Income
|
|||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income (loss) 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 Cash Flows
|
|||||||||||||||||||
Year Ended December 31, 2018
|
|||||||||||||||||||
(In thousands)
|
Parent Company
|
|
Guarantor Subsidiaries
|
|
Non- Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
$
|
503,796
|
|
|
$
|
1,351,256
|
|
|
$
|
(476,129
|
)
|
|
$
|
(772,376
|
)
|
|
$
|
606,547
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(74,710
|
)
|
|
(15,092
|
)
|
|
—
|
|
|
(89,802
|
)
|
|||||
Return of capital from investees
|
—
|
|
|
—
|
|
|
4,088
|
|
|
—
|
|
|
4,088
|
|
|||||
Payments for acquisitions, net of cash acquired
|
—
|
|
|
(675
|
)
|
|
(83,714
|
)
|
|
—
|
|
|
(84,389
|
)
|
|||||
Investments in and loans to investees
|
—
|
|
|
—
|
|
|
(90,081
|
)
|
|
—
|
|
|
(90,081
|
)
|
|||||
(Increase) decrease to investment in affiliates
|
(215,862
|
)
|
|
(2,646,335
|
)
|
|
1,813,007
|
|
|
1,049,190
|
|
|
—
|
|
|||||
Net cash (used in) provided by investing activities
|
(215,862
|
)
|
|
(2,721,720
|
)
|
|
1,628,208
|
|
|
1,049,190
|
|
|
(260,184
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Proceeds from the issuance of long-term debt
|
289
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
289
|
|
|||||
Deemed repurchases of restricted stock/units
|
(16,836
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,836
|
)
|
|||||
Purchase of treasury stock
|
(283,143
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(283,143
|
)
|
|||||
Proceeds from stock option exercises
|
4,317
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,317
|
|
|||||
Principal payments on capital lease obligations
|
—
|
|
|
(3,000
|
)
|
|
(1,938
|
)
|
|
—
|
|
|
(4,938
|
)
|
|||||
Distributions to noncontrolling interest
|
—
|
|
|
—
|
|
|
(14,296
|
)
|
|
—
|
|
|
(14,296
|
)
|
|||||
Net cash used in financing activities
|
(295,373
|
)
|
|
(3,000
|
)
|
|
(16,234
|
)
|
|
—
|
|
|
(314,607
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents from operations
|
(7,439
|
)
|
|
(1,373,464
|
)
|
|
1,135,845
|
|
|
276,814
|
|
|
31,756
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
7,240
|
|
|
1,350,367
|
|
|
(1,116,446
|
)
|
|
(276,814
|
)
|
|
(35,653
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
320
|
|
|
391,248
|
|
|
167,215
|
|
|
—
|
|
|
558,783
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
121
|
|
|
$
|
368,151
|
|
|
$
|
186,614
|
|
|
$
|
—
|
|
|
$
|
554,886
|
|
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 increase (decrease) 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
|
|
(In thousands)
|
For the three months ended,
|
|
|
||||||||||||||||
2018:
|
March 31,
2018 |
|
June 30,
2018 |
|
September 30,
2018 |
|
December 31,
2018 |
|
2018
|
||||||||||
Revenues, net
|
$
|
740,823
|
|
|
$
|
761,385
|
|
|
$
|
696,875
|
|
|
$
|
772,846
|
|
|
$
|
2,971,929
|
|
Operating expenses
|
(507,168
|
)
|
|
(569,854
|
)
|
|
(532,276
|
)
|
|
(635,722
|
)
|
|
(2,245,020
|
)
|
|||||
Operating income
|
$
|
233,655
|
|
|
$
|
191,531
|
|
|
$
|
164,599
|
|
|
$
|
137,124
|
|
|
$
|
726,909
|
|
Net income including noncontrolling interests
|
$
|
160,536
|
|
|
$
|
110,332
|
|
|
$
|
116,660
|
|
|
$
|
76,439
|
|
|
$
|
463,967
|
|
Net income attributable to AMC Networks' stockholders
|
$
|
156,870
|
|
|
$
|
106,181
|
|
|
$
|
111,257
|
|
|
$
|
71,879
|
|
|
$
|
446,187
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income per share attributable to AMC Networks' stockholders:
|
|
|
|
|
|
|
|||||||||||||
Basic
|
$
|
2.57
|
|
|
$
|
1.84
|
|
|
$
|
1.96
|
|
|
$
|
1.27
|
|
|
$
|
7.68
|
|
Diluted
|
$
|
2.54
|
|
|
$
|
1.82
|
|
|
$
|
1.93
|
|
|
$
|
1.24
|
|
|
$
|
7.57
|
|
(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)
|
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, 2018
|
|
|
|
|
|
|
|
||||||||
Allowance for doubtful accounts
|
$
|
9,691
|
|
|
$
|
7,399
|
|
|
$
|
(6,302
|
)
|
|
$
|
10,788
|
|
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
|
|
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, 2019
|
|
By:
|
/s/ Joshua W. Sapan
|
|
|
|
|
Joshua W. Sapan
|
|
|
|
|
President and Chief Executive Officer
|
Date:
|
March 1, 2019
|
|
By:
|
/s/ Sean S. Sullivan
|
|
|
|
|
Sean S. Sullivan
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
Date:
|
March 1, 2019
|
|
By:
|
/s/ Joshua W. Sapan
|
|
|
|
|
Joshua W. Sapan
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
March 1, 2019
|
|
By:
|
/s/ Sean S. Sullivan
|
|
|
|
|
Sean S. Sullivan
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|