We are the market-leading broadcasters in each of our five operating countries with a combined portfolio of 2730 television channels. Each of our broadcast operationscountry also develops and produces content for their television channels. We generate advertising revenues in our country operations primarily through entering into agreements with advertisers, advertising agencies and sponsors to place advertising on the television channels that we operate. We generate additional revenues by collecting fees from cable, and direct-to-home (“DTH”) and internet protocol television ("IPTV") operators for carriage of our channels. With the exception ofchannels as well as from advertising related to our Bulgarian operations,digital initiatives. Unless otherwise indicated, we own 100% of our broadcast operating and license companies in each country.

We operate one general entertainment channel, BTV, and five other channels, BTV CINEMA, BTV COMEDY, RING, BTV ACTION, BTV LADY and BTV LADY.RING. We own 94.0%94% of CME Bulgaria B.V. ("CME Bulgaria"), the subsidiary that owns our Bulgaria operations.

We operate one general entertainment channel, TV NOVA, (Czech Republic), and seven other channels, NOVA 2, NOVA CINEMA, NOVA SPORT 1, NOVA SPORT 2, NOVA ACTION, NOVA 2, NOVA GOLD and NOVA INTERNATIONAL, a general entertainment channel broadcasting in the Slovak Republic.

We operate one general entertainment channel, PRO TV, and eightsix other channels, PRO 2, (formerly ACASA),PRO X, PRO GOLD, (formerly ACASA GOLD), PRO CINEMA, PRO X (formerly SPORT.RO), MTV ROMANIA, PRO TV INTERNATIONAL, as well as PRO TV CHISINAU, a general entertainment channel broadcasting in Moldova, and ACASA IN MOLDOVA.Moldova.

The terms the “Company”"Company", “we”"we", “us”"us", and “our” are used in this Form 10-Q to refer collectively to the parent company, Central European Media Enterprises Ltd. (“CME Ltd.”), and the subsidiaries through which we operate.our various businesses are conducted. Unless otherwise noted, all statistical and financial information presented in this report has been converted into U.S. dollars using period-end exchange rates. All references to “US$”"US$", “USD”"USD" or “dollars”"dollars" are to U.S. dollars;dollars, all references to “BGN”"BGN" are to the Bulgarian leva;leva, all references to “CZK”"CZK" are to the Czech koruna;koruna, all references to “RON”"RON" are to the New Romanian lei;lei, and all references to “Euro”"Euro" or “EUR”"EUR" are to the European Union Euro. Where applicable, prior period presentation has been modified to conform to current year presentation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Quarterly Report on Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles in the United States of America (“US GAAP”). Amounts as of December 31, 20162018 included in the unaudited condensed consolidated financial statements have been derived from audited consolidated financial statements as of that date. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 20162018 filed with the Securities and Exchange Commission on February 9, 2017.6, 2019. Our significant accounting policies have not changed since December 31, 2016,2018, except as noted below.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring items and changes in US GAAP, necessary for their fair presentation in conformity with US GAAP for complete financial statements. The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.

The unaudited condensed consolidated financial statements include the accounts of CME Ltd. and our subsidiaries, after the elimination of intercompany accounts and transactions. Entities in which we hold less than a majority voting interest but over which we have the ability to exercise significant influence are accounted for using the equity method. Other investments are accounted for using the cost method.

We experience seasonality, with advertising sales tending to be lowest during the third quarter of each calendar year due to the summer holiday period (typically July and August), and highest during the fourth quarter of each calendar year due to the winter holiday season.

In February 2016, the FASB issued guidance to increase transparency and comparability among organizations by recognizing leasing assets and liabilities on the balance sheet and requiring additional disclosures about an entity's leasing arrangements. The guidance requires that a lessee recognize a liability to make lease payments and a right-of-use asset ("ROU"), with an available exception for leases with an initial term shorter than twelve months. Adoption of the guidance significantly changes the accounting for our operating leases while the accounting for our finance leases (previously called capital leases) remains substantially unchanged.

In June 2016, the FASB issued new guidance to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments replace the incurred loss impairment methodology in the current guidance with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for our fiscal year beginning January 1, 2019. We are currently in the process of evaluating the impact of the2020 with early adoption of this guidance on our condensed consolidated financial statements.

In January 2017,March 2019, the FASB issued new guidance which is intended to simplify goodwillthat aligns the accounting for production costs of an episodic television series with the accounting for production costs of films. The guidance further requires that an entity test a film or license agreement for program material for impairment testing by eliminating Step 2,at a film group level and instead recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds theunder a fair value ofmodel when the reporting unit. The guidance also eliminates the requirement to perform a qualitative analysis for reporting unitsfilm or license agreement is predominantly monetized with a negative carrying value. The guidance is effective for annual and interim impairment tests after January 1, 2020, with early adoption permitted for interim and annual impairment tests performed from January 1, 2017. We expect to early adopt the guidance in the fourth quarter of 2017.

Total long-term debt and credit facilities comprised the following at September 30, 2017:March 31, 2019:

Our long-term debt comprised the "2018 Euro Term Loan") outstanding was EUR 200.8 million (approximately US$ 237.1 million). On August 1, 2017, we elected to repay EUR 50.0 million (approximately US$ 59.1 millionfollowing at August 1, 2017 rates) of the outstanding principal balance of that loan on which we recognized a loss on extinguishment of US$ 0.1 million.

The fair values of the 2018 Euro Term LoanLoans (as defined below) as at September 30, 2017March 31, 2019 and December 31, 20162018 were determined based on comparable instruments that trade in active markets, plus an applicable spread.bond yield curves based on equivalent credit ratings. This measurement of estimated fair value uses Level 2 inputs as described in Note 12, "Financial Instruments and Fair Value Measurements". Certain derivative instruments, including contingent event of default and change of control put options, have been identified as being embedded in each of the 2018 Euro Term Loan.Loans. The embedded derivatives are considered clearly and closely related to the 2018their respective Euro Term Loan, and as such are not required to be accounted for separately.

As at September 30, 2017,March 31, 2019, the principal amount of our floating rate senior unsecured term credit facility (the "2019"2021 Euro Term Loan") outstanding was EUR 235.3150.3 million (approximately US$ 277.8168.9 million). The 20192021 Euro Term Loan bears interest at three-month EURIBOR (fixed pursuant to customary hedging arrangements (see Note 12, "Financial Instruments and Fair Value Measurements")) plus a margin of between 1.1% and 1.9% depending on the credit rating of Time Warner. The all-in borrowing rate including the Guarantee Fee ranges from 8.5% to 5.0% per annum based on our net leverage (see the table below under the heading "Reimbursement Agreement and Guarantee Fees").Warner Media. As at September 30, 2017,March 31, 2019, the all-in borrowing rate on amounts outstanding under the 20192021 Euro Term Loan was 7.25%3.25%, the components of which are shown in the table below under the heading "Interest Rate Summary".

Interest on the 20192021 Euro Term Loan is payable quarterly in arrears on each February 13, May 13, August 13 and November 13. The 20192021 Euro Term Loan matures on November 1, 20192021 and may currently be prepaid at our option, in whole or in part, without premium or penalty.penalty from cash generated from our operations. From April 26, 2020, the 2021 Euro Loan may be refinanced at our option. The 20192021 Euro Term Loan is a senior unsecured obligation of CME Ltd., and is unconditionally guaranteed by CME BV and by Time Warner Media and certain of its subsidiaries.

As at September 30, 2017,March 31, 2019, the principal amount of our floating rate senior unsecured term credit facility (the "2021"2023 Euro Term Loan") outstanding was EUR 468.8 million (approximately US$ 553.5526.7 million). The 20212023 Euro Term Loan bears interest at three-month EURIBOR (fixed pursuant to customary hedging arrangements (see Note 12, "Financial Instruments and Fair Value Measurements")) plus a margin of between 1.1% and 1.9% depending on the credit rating of Time Warner. The all-in borrowing rate including the Guarantee Fee ranges from 8.5% to 5.0% per annum based on our net leverage (see the table below under the heading "Reimbursement Agreement and Guarantee Fees").Warner Media. As at September 30, 2017,March 31, 2019, the all-in borrowing rate on amounts outstanding under the 20212023 Euro Term Loan was 7.25%3.75%, the components of which are shown in the table below under the heading "Interest Rate Summary".

Interest on the 20212023 Euro Term Loan is payable quarterly in arrears on each January 7, April 7, July 7 and October 7. The 20212023 Euro Term Loan matures on February 19, 2021April 26, 2023 and may be prepaid at our option, in whole or in part, without premium or penalty uponfrom cash generated from our operations. From April 26, 2020, the earlier of the occurrence of certain events, including if2023 Euro Loan may be refinanced at our net leverage (as defined in the Reimbursement Agreement) decreases to below five times for two consecutive quarters, or at any time from February 19, 2020.option. The 20212023 Euro Term Loan is a senior unsecured obligation of CME BV and is unconditionally guaranteed by CME Ltd. and by Time Warner Media and certain of its subsidiaries.

In connection with Time Warner’sWarner Media’s guarantees of the 2021 Euro Term Loans,Loan and 2023 Euro Loan (collectively, the "Euro Loans"), we entered into a reimbursement agreement (as amended, the “Reimbursement Agreement") with Time Warner.Warner Media. The Reimbursement Agreement provides for the payment of guarantee fees (collectively, the "Guarantee Fees") to Time Warner Media as consideration for those guarantees, and the reimbursement to Time Warner Media of any amounts paid by them under any guarantee or through any loan purchase right exercised by it. The loan purchase right allows Time Warner Media to purchase any amount outstanding under the Euro Term Loans from the lenders following an event of default under the Euro Term Loans or the Reimbursement Agreement. The Reimbursement Agreement is jointly and severally guaranteed by both our 100% owned subsidiary Central European Media Enterprises N.V. ("CME NV") and CME BV and is secured by a pledge over 100% of the outstanding shares of each of CME NV and CME BV. The covenants and events of default under the Reimbursement Agreement are substantially the same as under the 20212023 Revolving Credit Facility (described below).

We pay Guarantee Fees to Time Warner Media based on the amounts outstanding on the Euro Term Loans calculated on a per annum basis and on our consolidated net leverage (as defined in the Reimbursement Agreement) as shown in the tabletables below:

Our consolidated net leverage as at September 30, 2017March 31, 2019 and December 31, 20162018 was 5.8x3.0x and 6.9x,3.5x, respectively. For the three and nine months ended September 30, 2017March 31, 2019 and 2016,2018, we recognized US$ 11.83.7 million and US$ 36.3 million and US$ 16.5 million and US$ 37.7 million,10.8, respectively, of Guarantee Fees as interest expense in our condensed consolidated statements of operations and comprehensive income / loss.

The Guarantee Fees relating to the 20182021 Euro Term Loan and the 2019 Euro Term Loan are payable semi-annually in arrears on each May 1 and November 1, in cash or in kind, by adding such semi-annual Guarantee Fees to any such amount then outstanding.1. The Guarantee Fees relating to the 20212023 Euro Term Loan are payable semi-annually in arrears on each June 1 and December 1. The first 5.0% of the all-in rate for each facility (including the base rate and the rate paid pursuant to the hedging arrangements) must be paid in cash and the remainder is payable at our election in cash or in kind.

The Guarantee Fees on the 2023 Euro Loan that were previously paid in kind are presented as a component of other non-current liabilities (see Note 11,10, "Other Liabilities") and bear interest per annum at their respectivethe applicable Guarantee Fee rate (as set forth in the table below). Guarantee Fees paid in cash are included in cash flows from operating activities in our condensed consolidated statements of cash flows.

As at September 30, 2017, weWe had no balance outstanding under the US$ 115.075.0 million revolving credit facility (the “2021"2023 Revolving Credit Facility”Facility"), all of which was available to be drawn. The aggregate principal amount available decreases to US$ 50.0 million with effect from January 1, 2018 or, if earlier, upon the repayment of amounts owing in respect of the 2018 Euro Term Loan with the expected proceeds from the sale of our Croatia and Slovenia operations (see Note 3, "Discontinued Operations and Assets Held for Sale"). as at March 31, 2019.

The 20212023 Revolving Credit Facility bears interest at a rate per annum based on, at our option, an alternativealternate base rate ("ABR Loans" as defined in the 2023 Revolving Credit Facility Agreement) plus 7.0%the spread applicable to ABR Loans based on our consolidated net leverage or an amount equal to the greater of (i) an adjusted LIBORLIBO rate and (ii) 1.0%, plus in each case, 8.0%, with the first 5.0% payable in cash and the remainder payable at our election in cash or in kind by adding such accrued interestspread applicable to the applicable principal amount outstanding underEurodollar Loans (as defined in the 2021 Revolving Credit Facility. The interest rate on the 20212023 Revolving Credit Facility is determinedAgreement) based on the basis of our consolidated net leverage ratio (as defined in the Reimbursement Agreement) and ranges from LIBOR (subject to a floor of 1.0%) plus 9.0% (if our net leverage is greater than or equal to seven times) to 7.0% per annum (if our net leverage ratio is less than five times)., with all amounts payable in cash. The maturity date of the 20212023 Revolving Credit Facility is February 19, 2021.April 26, 2023. When drawn, the 20212023 Revolving Credit Facility permits prepayment at our option in whole or in part without penalty.

The 20212023 Revolving Credit Facility is jointly and severally guaranteed by CME NV and CME BV and is secured by a pledge over 100% of the outstanding shares of each of CME NV and CME BV. The 20212023 Revolving Credit Facility agreement contains limitations on ourCME’s ability to incur indebtedness, incur guarantees, grant liens, pay dividends or make other distributions, enter into certain affiliate transactions, consolidate, merge or effect a corporate reconstruction, make certain investments acquisitions and loans, and conduct certain asset sales. The agreement also contains maintenance covenants in respect of interest cover cash flow cover and total leverage ratios, and has covenants in respect of incurring indebtedness, the provision of guarantees, making investments and disposals, granting security and certain events of defaults.