Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Entity Registrant Name | AMC Networks Inc. | |
Entity Central Index Key | 1,514,991 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 45,975,467 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 11,484,408 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 529,200 | $ 558,783 |
Accounts receivable, trade (including amounts due from related parties, net, less allowance for doubtful accounts of $9,687 and $9,691) | 793,275 | 775,891 |
Current portion of program rights, net | 464,921 | 453,450 |
Prepaid expenses and other current assets | 102,058 | 91,726 |
Total current assets | 1,889,454 | 1,879,850 |
Property and equipment, net of accumulated depreciation of $271,443 and $259,919 | 185,440 | 183,514 |
Program rights, net | 1,279,589 | 1,319,279 |
Deferred carriage fees, net | 27,172 | 29,924 |
Intangible assets, net | 452,395 | 457,242 |
Goodwill | 707,654 | 695,158 |
Deferred tax asset, net | 21,731 | 20,081 |
Other assets | 549,932 | 447,937 |
Total assets | 5,113,367 | 5,032,985 |
Current Liabilities: | ||
Accounts payable | 96,816 | 102,197 |
Accrued liabilities | 235,301 | 263,076 |
Current portion of program rights obligations | 326,862 | 327,549 |
Deferred revenue | 51,916 | 46,433 |
Current portion of capital lease obligations | 4,771 | 4,847 |
Total current liabilities | 715,666 | 744,102 |
Program rights obligations | 491,527 | 534,980 |
Long-term debt | 3,101,138 | 3,099,257 |
Capital lease obligations | 25,233 | 26,277 |
Deferred tax liability, net | 145,159 | 109,698 |
Other liabilities | 153,167 | 136,122 |
Total liabilities | 4,631,890 | 4,650,436 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 220,366 | 218,604 |
Stockholders' equity (deficiency): | ||
Preferred stock, $0.01 par value, 45,000 shares authorized; none issued | 0 | 0 |
Paid-in capital | 182,278 | 191,303 |
Accumulated earnings | 936,379 | 766,725 |
Treasury stock, at cost (14,767 and 13,120 shares Class A Common Stock, respectively) | (793,078) | (709,440) |
Accumulated other comprehensive loss | (95,581) | (114,386) |
Total AMC Networks stockholders' equity | 230,744 | 134,944 |
Non-redeemable noncontrolling interests | 30,367 | 29,001 |
Total stockholders' equity | 261,111 | 163,945 |
Total liabilities and stockholders' equity | 5,113,367 | 5,032,985 |
Common Class A [Member] | ||
Stockholders' equity (deficiency): | ||
Common stock | 631 | 627 |
Common Class B [Member] | ||
Stockholders' equity (deficiency): | ||
Common stock | $ 115 | $ 115 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, trade, allowance for doubtful accounts | $ 9,687 | $ 9,691 |
Property and equipment, accumulated depreciation | $ 271,443 | $ 259,919 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 45,000,000 | 45,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 360,000,000 | 360,000,000 |
Common stock shares issued | 63,139,214 | 62,721,145 |
Common stock, shares outstanding | 48,371,796 | 49,601,184 |
Treasury stock, shares | 14,767,418 | 13,119,961 |
Common Class B [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock shares issued | 11,484,408 | 11,484,408 |
Common stock, shares outstanding | 11,484,408 | 11,484,408 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenues, net (including revenues, net from related parties of $1,627 and $1,567, respectively) | $ 740,823 | $ 720,189 |
Operating expenses | ||
Technical and operating (excluding depreciation and amortization) | 320,365 | 298,612 |
Selling, general and administrative (including charges from related parties of $462 and $575, respectively) | 166,449 | 163,709 |
Depreciation and amortization | 20,354 | 23,493 |
Restructuring expense | 0 | 2,704 |
Total operating expenses | 507,168 | 488,518 |
Operating income | 233,655 | 231,671 |
Other income (expense) | ||
Interest expense | (38,205) | (30,500) |
Interest income | 5,019 | 3,493 |
Miscellaneous, net | 16,946 | 11,049 |
Total other income (expense) | (16,240) | (15,958) |
Income from operations before income taxes | 217,415 | 215,713 |
Income tax expense | (56,879) | (73,082) |
Net income including noncontrolling interests | 160,536 | 142,631 |
Net income attributable to noncontrolling interests | (3,666) | (6,414) |
Net income attributable to AMC Networks' stockholders | $ 156,870 | $ 136,217 |
Net income per share attributable to AMC Networks' stockholders: | ||
Basic | $ 2.57 | $ 2 |
Diluted | $ 2.54 | $ 1.98 |
Weighted average common shares | ||
Basic weighted average common shares | 60,967 | 68,020 |
Diluted weighted average common shares | 61,719 | 68,764 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenues, Net From Related Parties | $ 1.6 | $ 1.6 |
Related Party Transaction, Selling, General and Administrative Expenses | $ 0.5 | $ 0.6 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income including noncontrolling interests | $ 160,536 | $ 142,631 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 18,805 | 9,864 |
Unrealized gain on interest rate swaps | 0 | 319 |
Unrealized gain on available for sale securities | 0 | 4,021 |
Other comprehensive income, before income taxes | 18,805 | 14,204 |
Income tax expense | 0 | (1,597) |
Other comprehensive income, net of income taxes | 18,805 | 12,607 |
Comprehensive income | 179,341 | 155,238 |
Comprehensive income attributable to noncontrolling interests | (4,563) | (6,805) |
Comprehensive income attributable to AMC Networks' stockholders | $ 174,778 | $ 148,433 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $ 160,536 | $ 142,631 |
Adjustments to reconcile income from operations to net cash from operating activities: | ||
Depreciation and amortization | 20,354 | 23,493 |
Share-based compensation expense related to equity classified awards | 15,319 | 12,464 |
Amortization and write-off of program rights | 218,626 | 199,517 |
Amortization of deferred carriage fees | 4,401 | 4,401 |
Unrealized foreign currency transaction gain | (4,582) | (754) |
Unrealized gain on derivative contracts, net | (13,984) | (11,486) |
Amortization of deferred financing costs and discounts on indebtedness | 1,881 | 2,282 |
Bad debt expense | 914 | 961 |
Deferred income taxes | 31,800 | 4,061 |
Other, net | (2,348) | 278 |
Changes in assets and liabilities: | ||
Accounts receivable, trade (including amounts due from related parties, net) | (17,877) | (15,980) |
Prepaid expenses and other assets | (5,512) | (18,160) |
Program rights and obligations, net | (248,642) | (211,280) |
Income taxes payable | 15,723 | 57,627 |
Deferred revenue | 4,980 | (11,104) |
Deferred carriage fees, net | (1,610) | (430) |
Accounts payable, accrued liabilities and other liabilities | (63,007) | (33,651) |
Net cash provided by operating activities | 116,972 | 144,870 |
Cash flows from investing activities: | ||
Capital expenditures | (11,942) | (20,206) |
Return of capital from investees | 172 | 0 |
Investment in and loans to investees | (42,318) | (28,000) |
Net cash used in investing activities | (54,088) | (48,206) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | 0 | (55,500) |
Deemed repurchases of restricted stock units | (15,354) | (12,796) |
Purchase of treasury stock | (83,637) | (91,423) |
Principal payments on capital lease obligations | (1,406) | (1,401) |
Distributions to noncontrolling interests | (1,435) | (11,712) |
Net cash used in financing activities | (101,832) | (172,832) |
Net decrease in cash and cash equivalents from operations | (38,948) | (76,168) |
Effect of exchange rate changes on cash and cash equivalents | 9,365 | (1,573) |
Cash and cash equivalents at beginning of period | 558,783 | 481,389 |
Cash and cash equivalents at end of period | $ 529,200 | $ 403,648 |
Description Of Business And Bas
Description Of Business And Basis Of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description Of Business And Basis Of Presentation | Description of Business and Basis of Presentation Description of Business AMC Networks Inc. ("AMC Networks") and its subsidiaries (collectively referred to as the "Company") own and operate entertainment businesses and assets. The Company is comprised of two operating segments: • 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 produces original programming for our programming networks and also licenses such program rights worldwide. AMC Networks Broadcasting & Technology is our technical services business, which primarily services most of the national programming networks. • International and Other : Principally includes AMC Networks International (AMCNI), the Company's international programming businesses consisting of a portfolio of channels in Europe, Latin America, the Middle East and parts of Asia and Africa; IFC Films, the Company's independent film distribution business; and our subscription streaming services, Sundance Now and Shudder. AMCNI – DMC, the broadcast solutions unit of certain networks of AMCNI and third-party networks is included through the date sold, July 12, 2017. Basis of Presentation Principles of Consolidation These unaudited condensed consolidated financial statements include the accounts of AMC Networks and its majority owned or controlled subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Investments in business entities in which the Company lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method of accounting. Unaudited Interim Financial Statements These condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and Article 10 of Regulation S-X of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the Company's consolidated financial statements and notes thereto for the year ended December 31, 2017 contained in the Company's Annual Report on Form 10-K (" 2017 Form 10-K") filed with the SEC. The condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, such financial statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. The results of operations for interim periods are not necessarily indicative of the results that might be expected for future interim periods or for the full year ending December 31, 2018 . Program Rights The Company periodically reviews the programming usefulness of its licensed and owned original program rights based on a series of factors, including expected future revenue generation from airings on the Company's networks and other exploitation opportunities, ratings, type and quality of program material, standards and practices, and fitness for exhibition through various forms of distribution. If it is determined that film or other program rights have limited, or no, future programming usefulness, a write-off of the unamortized cost is included in technical and operating expense. Program rights write-offs were $5.2 million and $0.4 million for the three months ended March 31, 2018 and March 31, 2017 , respectively. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include derivative assets and liabilities, certain stock compensation awards, the useful lives and methodologies used to amortize and assess recoverability of program rights, the estimated useful lives of intangible assets, valuation and recoverability of goodwill and intangible assets and income tax assets and liabilities. Financial Assets and Liabilities The Company adopted Accounting Standards Update ("ASU") No. 2016-01 Financial Instruments-Recognition and Measurement of Financial Assets and Financial Liabilities on January 1, 2018, which requires that investments in equity securities (excluding equity method investments) be measured at fair value with changes in fair value recognized in net earnings. Under prior accounting guidance, changes in fair value of available-for-sale equity securities were recorded in other comprehensive income. The adoption did not have a significant impact to these condensed consolidated financial statements. Adoption of New Revenue Recognition Standard The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) on January 1, 2018, using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results as of and for the three-month period ended March 31, 2018 reflect the application of the new standard, while the reported results for 2017 have not been adjusted to reflect the new standard and were prepared under prior revenue recognition accounting guidance. The adoption of the new standard did not result in significant changes in the way the Company records distribution and advertising revenues. However, as a result of applying the new standard, there are certain components of the Company’s distribution revenues where the new standard generally results in earlier recognition of revenue compared to its historical policies due to: (i) the requirement to estimate and recognize variable consideration prior to such amounts becoming fixed and determinable, (ii) recognition of royalties in the period of usage, and (iii) recognition of certain arrangements with minimum guarantees on a time-based (straight-line) basis. See Note 2 for more information. As a result of adopting Topic 606, the Company recorded an increase to opening retained earnings of approximately $12.8 million , net of tax, as of January 1, 2018. The following table provides changes to the opening balances of current assets, total assets, current liabilities and total liabilities resulting from the adoption of the new guidance. (In thousands) December 31, Impact of January 1, 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 The amount by which each financial statement line item has been affected in the current reporting period by the application of Topic 606 compared to historical policies is not material, therefore, comparative disclosures have been omitted. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases (Topic 842) . ASU 2016-02 requires lessees to record most of their leases on the balance sheet, which will be recognized as a right-of-use asset and a lease liability. The Company will be required to classify each separate lease component as an operating or finance lease at the lease commencement date. Initial measurement of the right-of-use asset and lease liability is the same for operating and finance leases, however expense recognition and amortization of the right-of-use asset differs. Operating leases will reflect lease expense on a straight-line basis similar to current operating leases. The straight-line expense will reflect the interest expense on the lease liability (effective interest method) and amortization of the right-of-use asset, which will be presented as a single line item in the operating expense section of the income statement. Finance leases will reflect a front-loaded expense pattern similar to the pattern for current capital leases. ASU 2016-02 is effective for the first quarter of 2019, with early adoption permitted. The Company is currently determining its implementation approach and assessing the impact the adoption will have on its consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue Recognition Revenue is recognized when, or as, performance obligations under the terms of a contract are satisfied, which generally occurs when, or as, control of the promised products or services is transferred to customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or services to a customer ("transaction price"). To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which the Company expects to be entitled. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available. Amounts collected on behalf of others (including taxes), where the Company is an agent, are excluded from revenue. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying a practical expedient in the new standard, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. Contracts with customers may contain multiple performance obligations. For such arrangements, the transaction price is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price considering available information such as market conditions and internal pricing guidelines related to the performance obligations. Contracts may be modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new or changes existing enforceable rights and obligations. The effect of a contract modification on the transaction price and measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. The Company primarily earns revenue from the distribution of its programming services, including licensing of its programming and other content, and advertising. The Company’s revenue recognition policies that summarize the nature, amount, timing and uncertainty associated with each major source of revenue from contracts with customers is described below. Distribution The majority of the Company’s distribution revenues relate to sales-based and usage-based royalties which are recognized the later of (i) when the subsequent sale or usage occurs and (ii) the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied or partially satisfied. Occasionally, the Company incurs costs to obtain a distribution contract and these costs are amortized over the period of the related distribution contract as a reduction of revenue. Subscription fee revenue: Subscription fees are earned from cable and other multichannel video programming distribution platforms, including direct broadcast satellite ("DBS"), platforms operated by telecommunications providers and virtual multichannel video programming distributors (collectively "distributors"), for the rights to use the Company's network programming under multi-year contracts, commonly referred to as "affiliation agreements." The Company's performance obligations under affiliation agreements are satisfied as the Company provides its programming over the term of the agreement. The transaction price is represented by subscription fees that are generally based upon (i) contractual rates applied to the number of the distributor's subscribers who receive or can receive our programming ("rate-per-subscriber"), or (ii) fixed contractual monthly fees ("fixed fee"). For rate-per-subscriber agreements, the Company applies the sales-based or usage-based royalty guidance, and accordingly, recognizes revenue in the period of the distributor’s usage, based on the subscription fee earned during the period. Fixed fee affiliation agreements are generally billed in monthly installments, and such amounts may vary over the term of the contract. In cases where the invoice amount corresponds directly with the value to the affiliate of the performance to-date, the Company recognizes revenue based on the invoiced amount. In cases where changes in fees during the contract term do not correspond directly to the value of the performance to-date (for example, if the fees vary over the contract term due to a significant financing or credit risk component), the Company recognizes the total amount of fixed transaction price over the contract period using a time-based (e.g., straight-line) measure of progress. Certain of the Company’s fixed fee affiliation agreements contain guaranteed minimum fees that are recoupable during the term of the agreement, and variable fees based on rates-per-subscriber after the guaranteed minimum is recouped. The Company recognizes revenue for the fixed consideration over the minimum guarantee period and recognizes variable fees only when cumulative consideration exceeds the minimum guarantee. Subscription revenue from the Company's direct-to-consumer subscription streaming services is recognized as the streaming service is provided to customers. Content licensing revenue: The Company licenses its original programming content to certain distributors under subscription video on-demand ("SVOD"), pay-per-view ("PPV") and electronic sell-through ("EST") arrangements. Under these arrangements, our performance obligation is to provide the distributor the right to use our programming as it exists at a point in time. For SVOD arrangements, the Company adjusts the transaction price for the time value of money in cases where license fees are paid over several years. SVOD licensing revenue is recognized at the later of the beginning of the license period, or when we provide the programming to the distributor. The Company recognizes a contract asset for the difference between the revenue recognized and the amount we are permitted to invoice. For PPV and EST license fee arrangements, the Company applies the sales-based or usage-based royalty guidance and recognizes revenue in the period of end-customer purchases, based on the fees earned during the period. The Company also licenses trademarks, logos, brands, derivative character copyrights, etc. under multi-year arrangements. Under these arrangements, the Company may receive a non-refundable minimum guarantee that is recoupable against a volume-based royalty throughout the term of the agreement. The Company adjusts the transaction price for the time value of money in cases where license fees are paid over several years. The Company recognizes revenue for the minimum guarantee on a straight-line basis over the term of the agreement, and recognizes variable fees only when cumulative consideration exceeds the minimum guarantee. The Company’s payment terms vary by the type and location of customer. Generally, payment terms are 30-45 days after revenue is earned. In certain limited circumstances, agreements with customers have payment terms in excess of one-year after satisfaction of the performance obligation. Advertising The Company generates revenues from the sale of advertising time on its networks. In such arrangements, the Company generally promises to air a certain number of commercials (spots) and to generate guaranteed viewer ratings for an audience demographic (impressions) over a period that generally does not exceed one year. The promise to deliver impressions by airing spots represents the Company’s performance obligation. Advertising revenues are recognized, net of agency commissions, as commercials are aired, to the extent that guaranteed viewer ratings are achieved. A contract liability is recognized to the extent the guaranteed viewer ratings are not met, and is subsequently recognized as revenue either when the Company provides the required additional advertising or the guarantee obligation contractually expires, which is generally within one year. Generally, payment terms are 30 days after revenue is earned. Transaction Price Allocated to Future Performance Obligations The new standard requires disclosure of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of March 31, 2018 . However, the guidance does not apply to sales-based or usage-based royalty arrangements and also provides certain practical expedients that allow companies to omit this disclosure requirement for (i) contracts with an original expected length of one year or less, (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed and (iii) variable consideration related to a wholly unsatisfied performance obligation. As of March 31, 2018 , other than contracts for which the Company has applied the practical expedients, the aggregate amount of transaction price allocated to remaining performance obligations was not material to our consolidated revenues. Contract Balances from Contracts with Customers The timing of revenue recognition, billings and cash collections results in billed receivables, contract assets and contract liabilities on the Consolidated Balance Sheet. For certain types of contracts with customers, the Company may recognize revenue in advance of the contractual right to invoice the customer, resulting in an amount recorded to contract assets. Once the Company has an unconditional right to consideration under a contract, the contract assets are reclassified to account receivables. When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue when, or as, control of the products or services is transferred to the customer and all revenue recognition criteria have been met. The primary source of the Company’s contract liabilities relates to advertising sales arrangements and content licensing arrangements. As noted above, the Company’s programming networks generally guarantee viewer ratings for its programming. If these guaranteed viewer ratings are not met, the Company is required to provide additional advertising units to the advertiser. For these types of arrangements, a portion of the related revenue is deferred if the guaranteed ratings are not met, representing a contract liability, and is subsequently recognized either when the Company provides the required additional advertising time or the guarantee obligation contractually expires. In certain content licensing arrangements, payment may be received in advance of a distributor's ability to exhibit a program. Such payments are recorded as a contract liability and subsequently recognized when the program becomes available for exhibition. The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers. (In thousands) March 31, 2018 December 31, 2017 (a) Balances from contracts with customers: Accounts receivable (including long-term, included in Other assets) $ 981,266 $ 926,089 Contract assets, short-term (included in Other current assets) 1,891 — Contract assets, long-term (included in Other assets) 14,646 — Contract liabilities (Deferred revenue) 51,916 46,433 (a) As noted above, prior period amounts have not been adjusted under the modified retrospective method. Revenue recognized for the three months ended March 31, 2018 relating to the contract liability at December 31, 2017 was $12.2 million . |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income per Share The following is a reconciliation between basic and diluted weighted average shares outstanding: (In thousands) Three Months Ended March 31, 2018 2017 Basic weighted average common shares outstanding 60,967 68,020 Effect of dilution: Restricted stock units 752 744 Diluted weighted average common shares outstanding 61,719 68,764 For the three months ended March 31, 2018 , there were 388,000 stock options and 170,000 restricted stock units that would have been anti-dilutive to the diluted weighted average common shares outstanding. Approximately 195,000 and 175,000 restricted stock units for the three months ended March 31, 2018 and March 31, 2017 , respectively, have been excluded from diluted weighted average common shares outstanding since a performance condition for these awards was not met in each of the respective periods. The Company did not include performance restricted stock units in the calculation of diluted EPS, since the performance conditions for these awards were not met. Stock Repurchase Program On March 7, 2016, the Company announced that its Board of Directors authorized a program to repurchase up to $500 million of its outstanding shares of common stock (the "2016 Stock Repurchase Program"). On June 6, 2017, the Board of Directors approved an increase of $500 million in the amount authorized for a total of $1.0 billion authorized under the 2016 Stock Repurchase Program. The 2016 Stock Repurchase Program has no pre-established closing date and may be suspended or discontinued at any time. For the three months ended March 31, 2018 , the Company repurchased 1.6 million shares of its Class A common stock at an average purchase price of approximately $50.77 per share. As of March 31, 2018 , the Company has $258.9 million available for repurchase under the 2016 Stock Repurchase Program. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Cost and Equity Method Investments Disclosure | Investments The Company holds several investments and loans in non-consolidated entities. Equity method investments were $81.4 million at March 31, 2018 and $61.3 million at December 31, 2017 . Cost method investments were $71.8 million at March 31, 2018 and $46.8 million at December 31, 2017 . Equity and cost method investments are included in Other assets in the condensed consolidated balance sheet. RLJE On January 5, 2018, a subsidiary of the Company entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") with JH Partners Evergreen Fund, L.P., Forrestal, LLC, JH Investment Partners III, L.P., and JH Investment Partners GP Fund III, LLC (collectively, "JH Partners"). Under the terms of the Stock Purchase Agreement, the Company purchased (i) 678,095 shares of common stock of RLJ Entertainment, Inc., ("RLJE"), (ii) 747,945 warrants to purchase shares of common stock of RLJE with an adjusted exercise price of $1.50 per share issued, and (iii) 7,479.432 shares of Series D-1 preferred stock of RLJE. The total purchase price was $17.2 million . On February 26, 2018, the Company delivered a letter to RLJE pursuant to which the Company proposed to acquire all of the outstanding shares of RLJE not currently owned by the Company or entities affiliated with Robert L. Johnson for a purchase price of $4.25 per share in cash. Through this offer, the Company intends for RLJE to become a majority-owned subsidiary of the Company, with a minority stake held by Mr. Johnson. The board of directors of RLJE has formed a special committee of independent directors to consider the proposal. There can be no assurance that the proposal made by the Company to RLJE will result in a transaction or the terms upon which any transaction may occur. Other Investments On March 5, 2018, the Company made an investment in fuboTV Inc. of $25.0 million , which is accounted for as a cost method investment. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets The carrying amount of goodwill, by operating segment is as follows: (In thousands) National Networks International and Other Total December 31, 2017 $ 239,759 $ 455,399 $ 695,158 Amortization of "second component" goodwill (328 ) — (328 ) Foreign currency translation — 12,824 12,824 March 31, 2018 $ 239,431 $ 468,223 $ 707,654 The reduction of $0.3 million in the carrying amount of goodwill for the National Networks is due to the realization of a tax benefit for the amortization of "second component" goodwill at SundanceTV. Second component goodwill is the amount of tax deductible goodwill in excess of goodwill for financial reporting purposes. In accordance with the authoritative guidance at the time of the SundanceTV acquisition, the tax benefits associated with this excess are applied to first reduce the amount of goodwill, and then other intangible assets for financial reporting purposes, if and when such tax benefits are realized in the Company's tax returns. The following tables summarize information relating to the Company's identifiable intangible assets: (In thousands) March 31, 2018 Gross Accumulated Amortization Net Estimated Useful Lives Amortizable intangible assets: Affiliate and customer relationships $ 532,555 $ (177,019 ) $ 355,536 6 to 25 years Advertiser relationships 46,282 (14,457 ) 31,825 11 years Trade names 55,201 (15,422 ) 39,779 20 years Other amortizable intangible assets 11,704 (6,349 ) 5,355 2 to 15 years Total amortizable intangible assets 645,742 (213,247 ) 432,495 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 665,642 $ (213,247 ) $ 452,395 (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 Aggregate amortization expense for amortizable intangible assets for the three months ended March 31, 2018 and 2017 was $9.3 million and $9.1 million , respectively. Estimated aggregate amortization expense for intangible assets subject to amortization for each of the following five years is: (In thousands) Years Ending December 31, 2018 $ 36,491 2019 36,488 2020 36,102 2021 36,099 2022 36,087 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: (In thousands) March 31, 2018 December 31, 2017 Interest $ 40,093 $ 30,262 Employee related costs 55,181 117,850 Income taxes payable 35,025 19,558 Other accrued expenses 105,002 95,406 Total accrued liabilities $ 235,301 $ 263,076 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt The Company's long-term debt consists of the following: (In thousands) March 31, 2018 December 31, 2017 Senior Secured Credit Facility: (a) 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 Total long-term debt 3,150,000 3,150,000 Unamortized discount (32,663 ) (33,776 ) Unamortized deferred financing costs (16,199 ) (16,967 ) Long-term debt, net $ 3,101,138 $ 3,099,257 (a) The Company's $500 million revolving credit facility remains undrawn at March 31, 2018 . Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: • 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. The following table presents for each of these hierarchy levels, the Company's financial assets and liabilities that are measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017 : (In thousands) Level I Level II Level III Total At March 31, 2018: Assets: Cash equivalents $ 65,955 $ — $ — $ 65,955 Marketable securities 8,457 — — 8,457 Investments 31,632 — — 31,632 Interest rate swap contracts — 1,298 — 1,298 Foreign currency derivatives — 3,027 — 3,027 Other derivatives — 9,712 41,097 50,809 Liabilities: Foreign currency derivatives $ — $ 4,064 $ — $ 4,064 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 The Company's cash equivalents and marketable securities are classified within Level I of the fair value hierarchy because they are valued using quoted market prices. The Company's interest rate swap contracts, foreign currency derivatives and the embedded derivative for the interest on the RLJE Term Loans to be paid in shares of RLJE common stock (see Note 9 ) are classified within Level II of the fair value hierarchy and their fair values are determined based on a market approach valuation technique that uses readily observable market parameters and the consideration of counterparty risk. On October 14, 2016, Digital Entertainment Holdings LLC (“DEH”), a wholly-owned subsidiary of the Company, and RLJE entered into a Credit and Guaranty Agreement pursuant to which DEH provided term loans to RLJE (the “RLJE Term Loans”). In connection with the RLJE Credit and Guaranty Agreement, DEH received warrants to purchase at least 20 million shares of RLJE’s common stock, at a price of $3.00 per share (the “RLJE Warrants”). The RLJE Warrants held by the Company are classified within Level III of the fair value hierarchy and the Company determines the value of the RLJE Warrants using a Black Scholes option pricing model. Inputs to the model are stock price volatility, contractual warrant terms (remaining life of the warrants), exercise price, risk-free interest rate, and the RLJE stock price. The equity volatility used is based on the equity volatility of RLJE with an adjustment for the changes in the capital structure of RLJE. In arriving at the concluded value of the warrants, a discount for the lack of marketability (DLOM) of 32% was applied. The DLOM, which is unobservable, is determined using the Finnerty Average-Strike Put Option Marketability Discount Model (Finnerty Model), which was applied with a security-specific volatility for the warrants. For the three months ended March 31, 2018 and 2017 , the Company recorded a gain of $8.1 million and $8.9 million , respectively, related to the RLJE Warrants which is included in Miscellaneous, net in the condensed consolidated statement of income. At March 31, 2018 , the Company does not have any other assets or liabilities measured at fair value on a recurring basis that would be considered Level III. Fair value measurements are also used in nonrecurring valuations performed in connection with acquisition accounting. These nonrecurring valuations primarily include the valuation of affiliate and customer relationships intangible assets, advertiser relationship intangible assets and property and equipment. All of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level III of the fair value hierarchy. Credit Facility Debt and Senior Notes The fair values of each of the Company's debt instruments are based on quoted market prices for the same or similar issues or on the current rates offered to the Company for instruments of the same remaining maturities. The carrying values and estimated fair values of the Company's financial instruments, excluding those that are carried at fair value in the condensed consolidated balance sheets, are summarized as follows: (In thousands) March 31, 2018 Carrying Amount Estimated Fair Value Debt instruments: Term Loan A Facility $ 737,774 $ 748,125 4.75% Notes due August 2025 785,171 771,000 5.00% Notes due April 2024 984,591 988,750 4.75% Notes due December 2022 593,602 604,500 $ 3,101,138 $ 3,112,375 (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 Fair value estimates related to the Company's debt instruments presented above are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Risk To manage interest rate risk, the Company enters into interest rate swap contracts to adjust the amount of total debt that is subject to variable interest rates. As of March 31, 2018 , the Company had interest rate swap contracts outstanding with notional amounts aggregating $200.0 million that are not designated as hedging instruments. The Company's outstanding interest rate swap contracts mature in October 2018. Foreign Currency Exchange Rate Risk We are exposed to foreign currency risk to the extent that we enter into transactions denominated in currencies other than our or our subsidiaries' respective functional currencies (non-functional currency risk), such as affiliation agreements, programming contracts, certain accounts payable and trade receivables (including intercompany amounts) that are denominated in a currency other than the applicable functional currency. Other Derivatives The RLJE Warrants held by the Company meet the definition of a derivative and are included in Other assets in the consolidated balance sheet. In addition, the interest on the RLJE Term Loans to be paid in shares of RLJE common stock is an embedded derivative. Both the RLJE Warrants and the embedded derivative for the future interest to be paid in shares of RLJE common stock are remeasured at the end of each period with changes in fair value recorded in the consolidated statements of income. For the three months ended March 31, 2018 and 2017 , the Company recorded a gain of $11.7 million and $11.1 million , respectively, related to these derivatives, which is included in Miscellaneous, net in the condensed consolidated statement of income. The fair values of the Company's derivative financial instruments included in the condensed consolidated balance sheets are as follows: (In thousands) Balance Sheet Location March 31, 2018 December 31, 2017 Derivatives not designated as hedging instruments: Assets: Foreign currency derivatives Prepaid expenses and other current assets $ 785 $ 943 Foreign currency derivatives Other assets 2,241 2,858 Interest rate swap contracts Prepaid expenses and other current assets 1,298 1,444 Other derivatives Other assets 50,809 37,065 Liabilities: Foreign currency derivatives Accrued liabilities 1,069 1,223 Foreign currency derivatives Other liabilities 2,995 3,252 The amounts of gains and losses related to the Company's derivative financial instruments designated as hedging instruments are as follows: (In thousands) Gain or (Loss) on Derivatives Location of Gain or (Loss) in Earnings Gain or (Loss) Reclassified from Accumulated OCI Three Months Ended March 31, Three Months Ended March 31, 2018 2017 2018 2017 Derivatives in cash flow hedging relationships: Interest rate swap contracts $ — $ 321 Interest expense $ — $ 2 (a) There were no gains or losses recognized in earnings related to any ineffective portion of hedging relationships or related to any amount excluded from the assessment of hedge effectiveness for the three months ended March 31, 2018 and 2017 . The amounts of gains and losses related to the Company's derivative financial instruments not designated as hedging instruments are as follows: (In thousands) Location of Gain or (Loss) Recognized in Earnings on Derivatives Amount of Gain or (Loss) Recognized in Earnings on Derivatives Three Months Ended March 31, 2018 2017 Derivatives not designated as hedging relationships: Interest rate swap contracts Interest expense $ (146 ) $ 2 Foreign currency derivatives Miscellaneous, net (293 ) (267 ) Other derivatives Miscellaneous, net 11,687 11,117 Total $ 11,248 $ 10,852 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2018 , income tax expense was $56.9 million , representing an effective tax rate of 26% . The effective tax rate differs from the federal statutory rate of 21% due primarily to tax expense of $16.4 million for an increase in valuation allowances for foreign taxes and U.S. foreign tax credits, tax benefit of $8.3 million for the one-time rate change on deferred tax assets and liabilities that resulted from the extension of certain television production cost deductions included in the Bipartisan Budget Act of 2018 (enacted February 9, 2018), tax benefit from foreign subsidiary earnings indefinitely reinvested outside the U.S. of $4.9 million and state income tax expense of $3.8 million . For the three months ended March 31, 2017 , income tax expense was $73.1 million , representing an effective tax rate of 34% . The effective tax rate differs from the federal statutory rate of 35% due primarily to tax benefit from domestic production activities deduction of $5.9 million , tax benefit from foreign subsidiary earnings indefinitely reinvested outside the U.S. of $4.1 million , state income tax expense of $3.4 million and tax expense of $2.3 million for an increase in valuation allowances for foreign taxes. At March 31, 2018 , the Company had foreign tax credit carry forwards of approximately $15.6 million , expiring on various dates from 2024 through 2025. These carryforwards have been reduced by a valuation allowance of $15.6 million as it is more likely than not that these carry forwards will not be realized. For the three months ended March 31, 2018 , $0.3 million relating to amortization of tax deductible second component goodwill was realized as a reduction in tax liability (as determined on a 'with-and-without' approach). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As of March 31, 2018 , the Company's contractual obligations not reflected on the Company's condensed consolidated balance sheet decreased $154.7 million to $1.2 billion . The decrease relates primarily to the expiration of payment guarantees to a production service company for certain production related costs . Legal Matters On December 17, 2013, Frank Darabont ("Darabont"), Ferenc, Inc., Darkwoods Productions, Inc., and Creative Artists Agency, LLC (together, the "2013 Plaintiffs"), filed a complaint in New York Supreme Court in connection with Darabont's rendering services as a writer, director and producer of the television series entitled The Walking Dead and the agreement between the parties related thereto. The Plaintiffs asserted claims for breach of contract, breach of the covenant of good faith and fair dealing, for an accounting and for declaratory relief. On August 19, 2015, Plaintiffs filed their First Amended Complaint (the "Amended Complaint"), in which they retracted their claims for wrongful termination and failure to apply production tax credits in calculating Plaintiffs' contingent compensation. Plaintiffs also added a claim that Darabont is entitled to a larger share, on a percentage basis, of contingent compensation than he is currently being accorded. On September 26, 2016, Plaintiffs filed their note of issue and certificate of readiness for trial, which included a claim for damages of $280 million The parties each filed motions for summary judgment. Oral arguments of the summary judgment motions took place on September 15, 2017. On April 19, the Court granted the Company’s motion for leave to submit supplemental summary judgment briefing, which will be fully submitted by May 21, 2018. A hearing on the supplemental summary judgment submissions will be held on June 13, 2018. The Company has opposed Plaintiffs' claims. The Company believes that the asserted claims are without merit, denies the allegations and continues to defend the case vigorously. At this time, no determination can be made as to the ultimate outcome of this litigation or the potential liability, if any, on the part of the Company. On January 18, 2018, the 2013 Plaintiffs filed a second action in New York Supreme Court in connection with Darabont’s services on The Walking Dead television series and agreements between the parties related thereto. The claims in the action allegedly arise from Plaintiffs' audit of their participation statements covering the accounting period from inception of The Walking Dead through September 30, 2014. Plaintiffs seek no less than $20 million in damages on claims for breach of contract, breach of the covenant of good faith and fair dealing, and declaratory relief. Plaintiffs also seek a judicial determination that their contracts with the Company entitle them to an "actual fair market license fee" in connection with AMC Networks telecasting of The Walking Dead , which they allege is "substantially better than" what they received. The Company file an Answer to the Complaint on April 16, and the parties have agreed to consolidate this action for a joint trial with the action Plaintiffs filed in the New York Supreme Court on December 17, 2013. The Company believes that the asserted claims are without merit, denies the allegations and will defend the case vigorously. At this time, no determination can be made as to the ultimate outcome of this litigation or the potential liability, if any, on the part of the Company. On August 14, 2017, Robert Kirkman, Robert Kirkman, LLC, Glen Mazzara, 44 Strong Productions, Inc., David Alpert, Circle of Confusion Productions, LLC, New Circle of Confusion Productions, Inc., Gale Anne Hurd, and Valhalla Entertainment, Inc. f/k/a Valhalla Motion Pictures, Inc. (together, the "California Plaintiffs") filed a complaint in California Superior Court in connection with California Plaintiffs’ rendering of services as writers and producers of the television series entitled The Walking Dead , as well as Fear the Walking Dead and/or Talking Dead , and the agreements between the parties related thereto (the "California Action"). The California Plaintiffs asserted that the Company has been improperly underpaying the California Plaintiffs under their contracts with the Company and they assert claims for breach of contract, breach of the covenant of good faith and fair dealing, inducing breach of contract, and liability for violation of Cal. Bus. & Prof. Code § 17200. On August 15, 2017, two of the California Plaintiffs, Gale Anne Hurd and David Alpert (and their associated production companies), along with Charles Eglee and his production company, United Bongo Drum, Inc., filed a complaint in New York Supreme Court alleging nearly identical claims as the California Action (the "New York Action"). Hurd, Alpert, and Eglee filed the New York Action in connection with their contract claims involving The Walking Dead because their agreements contained exclusive New York jurisdiction provisions. On October 23, 2017, the parties stipulated to discontinuing the New York Action without prejudice and consolidating all of the claims in the California Action. The California Plaintiffs seek compensatory and punitive damages and restitution. The Company filed an Answer on April 30, 2018 and believes that the asserted claims are without merit and will vigorously defend against them. At this time, no determination can be made as to the ultimate outcome of this litigation or the potential liability, if any, on the part of the Company. The Company is party to various lawsuits and claims in the ordinary course of business, including the matters described above. Although the outcome of these matters cannot be predicted with certainty and while the impact of these matters on the Company's results of operations in any particular subsequent reporting period could be material, management does not believe that the resolution of these matters will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due. |
Equity Plans
Equity Plans | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Plans | Equity Plans In March 2018, AMC Networks granted 684,737 restricted stock units ("RSUs") and 537,403 performance restricted stock units ("PRSUs") to certain executive officers and employees under the AMC Networks Inc. 2016 Employee Stock Plan. The RSUs vest ratably over a three -year period and the vesting criteria for 195,028 RSUs include the achievement of certain performance targets by the Company. The PRSUs vest on the third anniversary of the grant date. The target number of PRSUs granted represents the right to receive a corresponding number of shares, subject to adjustment based on the performance of the Company against target performance criteria for a three -year period. The number of shares issuable at the end of the applicable measurement period ranges from 0% to 200% of the target PRSU award. During the three months ended March 31, 2018 , 707,624 RSUs of AMC Networks Class A Common Stock previously issued to employees of the Company vested. On the vesting date, 289,555 RSUs were surrendered to the Company to cover the required statutory tax withholding obligations and 418,069 new shares of AMC Networks Class A Common Stock were issued in respect of the remaining RSUs. The units surrendered to satisfy the employees' statutory minimum tax withholding obligations for the applicable income and other employment tax had an aggregate value of $15.4 million , which has been reflected as a financing activity in the condensed consolidated statement of cash flows for the three months ended March 31, 2018 . Share-based compensation expense included in selling, general and administrative expense, for the three months ended March 31, 2018 and March 31, 2017 was $15.3 million and $12.5 million , respectively. As of March 31, 2018 , there was $133.8 million of total unrecognized share-based compensation cost related to outstanding unvested share-based awards. The unrecognized compensation cost is expected to be recognized over a weighted-average remaining period of approximately 2.7 years. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests The following table summarizes activity related to redeemable noncontrolling interest for the three months ended March 31, 2018 . (In thousands) Three Months Ended March 31, 2018 December 31, 2017 $ 218,604 Net earnings 3,197 Distributions (1,435 ) March 31, 2018 $ 220,366 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Members of the Dolan Family, for purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended, including trusts for the benefit of the Dolan Family, collectively beneficially own all of the AMC Networks outstanding Class B Common Stock and own approximately 2% of the AMC Networks' outstanding Class A Common Stock. Such shares of the AMC Networks Class A Common Stock and Class B Common Stock, collectively, represent approximately 71% of the aggregate voting power of AMC Networks' outstanding common stock. Members of the Dolan Family are also the controlling stockholders of The Madison Square Garden Company ("MSG") and MSG Networks Inc. ("MSG Networks"). The Company and its related parties routinely enter into transactions with each other in the ordinary course of business. Revenues, net from related parties amounted to $1.6 million for the three months ended March 31, 2018 and 2017 , respectively. Amounts charged to the Company, included in selling, general and administrative expenses, pursuant to transactions with its related parties amounted to $0.5 million and $0.6 million for the three months ended March 31, 2018 and 2017 , respectively. On June 16, 2016, AMC Networks entered into an arrangement with the Dolan Family Office, LLC ("DFO"), MSG and MSG Networks providing for the sharing of certain expenses associated with executive office space which will be available to Charles F. Dolan (the Executive Chairman and a director of the Company and a director of MSG and MSG Networks), James L. Dolan (the Executive Chairman and a director of MSG and MSG Networks and a director of the Company), and the DFO which is controlled by Charles F. Dolan. The Company's share of office expenses is not material. |
Cash Flows
Cash Flows | 3 Months Ended |
Mar. 31, 2018 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |
Cash Flows | Cash Flows The Company's non-cash investing and financing activities and other supplemental data are as follows: (In thousands) Three Months Ended March 31, 2018 2017 Non-Cash Investing and Financing Activities: Treasury stock not yet settled 9,980 5,988 Capital expenditures incurred but not yet paid 6,070 3,362 Supplemental Data: Cash interest paid 25,634 8,605 Income taxes paid, net 6,243 7,498 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company classifies its operations into two operating segments: National Networks and International and Other. These operating segments represent strategic business units that are managed separately. The Company generally allocates all corporate overhead costs within operating expenses to the Company's two operating segments based upon their proportionate estimated usage of services, including such costs as executive salaries and benefits, costs of maintaining corporate headquarters, facilities and common support functions (such as human resources, legal, finance, strategic planning and information technology) as well as sales support functions and creative and production services. The Company evaluates segment performance based on several factors, of which the primary financial measure is operating segment adjusted operating income ("AOI"), a non-GAAP measure, defined as operating income (loss) before depreciation and amortization, share-based compensation expense or benefit, impairment and related charges (including gains or losses on sales or dispositions of businesses), and restructuring expense or credit. The Company has presented the components that reconcile adjusted operating income to operating income, an accepted GAAP measure, and other information as to the continuing operations of the Company's operating segments below. (In thousands) Three Months Ended March 31, 2018 National Networks International and Other Inter-segment eliminations Consolidated Revenues, net Advertising $ 225,730 $ 22,510 $ — $ 248,240 Distribution 407,298 88,880 (3,595 ) 492,583 Consolidated revenues, net $ 633,028 $ 111,390 $ (3,595 ) $ 740,823 Operating income (loss) $ 249,852 $ (16,814 ) $ 617 $ 233,655 Share-based compensation expense 12,527 2,792 — 15,319 Depreciation and amortization 8,495 11,859 — 20,354 Adjusted operating income (loss) $ 270,874 $ (2,163 ) $ 617 $ 269,328 Capital expenditures $ 2,148 $ 9,794 $ — $ 11,942 (In thousands) Three Months Ended March 31, 2017 National Networks International and Other Inter-segment eliminations Consolidated Revenues, net Advertising $ 247,542 $ 20,070 $ — $ 267,612 Distribution 367,605 86,727 (1,755 ) 452,577 Consolidated revenues, net $ 615,147 $ 106,797 $ (1,755 ) $ 720,189 Operating income (loss) $ 249,607 $ (19,217 ) $ 1,281 $ 231,671 Share-based compensation expense 9,908 2,556 — 12,464 Restructuring expense 54 2,650 — 2,704 Depreciation and amortization 8,404 15,089 — 23,493 Adjusted operating income $ 267,973 $ 1,078 $ 1,281 $ 270,332 Capital expenditures $ 5,135 $ 15,071 $ — $ 20,206 Inter-segment eliminations are primarily licensing revenues recognized between the National Networks and International and Other segments as well as revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment. (In thousands) Three Months Ended March 31, 2018 2017 Inter-segment revenues National Networks $ (2,535 ) $ (1,724 ) International and Other (1,060 ) (31 ) $ (3,595 ) $ (1,755 ) The table below summarizes revenues based on customer location: (In thousands) Three Months Ended March 31, 2018 2017 Revenues United States $ 586,568 $ 600,055 Europe 86,264 78,675 Other 67,991 41,459 $ 740,823 $ 720,189 The table below summarizes property and equipment based on asset location: (In thousands) March 31, 2018 December 31, 2017 Property and equipment, net United States $ 138,912 $ 136,203 Europe 28,449 28,261 Other 18,079 19,050 $ 185,440 $ 183,514 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements Debt of AMC Networks includes $600 million of 4.75% senior notes due December 2022, $1 billion of 5.00% senior notes due April 2024 and $800 million of 4.75% senior notes due August 2025. All outstanding senior notes issued by AMC Networks (for purposes of this Note 18, "Parent Company") are guaranteed on a senior unsecured basis by certain of its existing and future domestic restricted subsidiaries (the "Guarantor Subsidiaries"). All Guarantor Subsidiaries are owned 100% by AMC Networks. The outstanding notes are fully and unconditionally guaranteed by the Guarantor Subsidiaries on a joint and several basis. Set forth below are condensed consolidating financial statements presenting the financial position, results of operations, comprehensive income, and cash flows of (i) the Parent Company, (ii) the Guarantor Subsidiaries on a combined basis (as such guarantees are joint and several), (iii) the direct and indirect non-guarantor subsidiaries of the Parent Company (the "Non-Guarantor Subsidiaries") on a combined basis and (iv) reclassifications and eliminations necessary to arrive at the information for the Company on a consolidated basis. Basis of Presentation In presenting the condensed consolidating financial statements, the equity method of accounting has been applied to (i) the Parent Company's interests in the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, and (ii) the Guarantor Subsidiaries' interests in the Non-Guarantor Subsidiaries, even though all such subsidiaries meet the requirements to be consolidated under GAAP. All intercompany balances and transactions between the Parent Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries have been eliminated, as shown in the column "Eliminations." The accounting basis in all subsidiaries, including goodwill and identified intangible assets, have been allocated to the applicable subsidiaries. Condensed Consolidating Balance Sheet March 31, 2018 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 184 $ 354,419 $ 174,597 $ — $ 529,200 Accounts receivable, trade (including amounts due from related parties, net, — 588,633 204,642 — 793,275 Current portion of program rights, net — 315,628 149,293 — 464,921 Prepaid expenses, other current assets and intercompany receivable 1,419 212,382 10,592 (122,335 ) 102,058 Total current assets 1,603 1,471,062 539,124 (122,335 ) 1,889,454 Property and equipment, net of accumulated depreciation — 138,866 46,574 — 185,440 Investment in affiliates 3,616,931 1,013,078 — (4,630,009 ) — Program rights, net — 1,092,691 186,898 — 1,279,589 Long-term intercompany notes receivable — 490,380 343 (490,723 ) — Deferred carriage fees, net — 26,008 1,164 — 27,172 Intangible assets, net — 168,117 284,278 — 452,395 Goodwill — 66,282 641,372 — 707,654 Deferred tax asset, net — — 21,731 — 21,731 Other assets — 173,988 375,944 — 549,932 Total assets $ 3,618,534 $ 4,640,472 $ 2,097,428 $ (5,243,067 ) $ 5,113,367 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 32 $ 47,245 $ 49,539 $ — $ 96,816 Accrued liabilities and intercompany payable 86,500 121,433 149,703 (122,335 ) 235,301 Current portion of program rights obligations — 255,744 71,118 — 326,862 Deferred revenue — 34,738 17,178 — 51,916 Current portion of capital lease obligations — 3,001 1,770 — 4,771 Total current liabilities 86,532 462,161 289,308 (122,335 ) 715,666 Program rights obligations — 470,626 20,901 — 491,527 Long-term debt, net 3,101,138 — — — 3,101,138 Capital lease obligations — 2,963 22,270 — 25,233 Deferred tax liability, net 150,247 — (5,088 ) — 145,159 Other liabilities and intercompany notes payable 49,873 87,791 506,226 (490,723 ) 153,167 Total liabilities 3,387,790 1,023,541 833,617 (613,058 ) 4,631,890 Commitments and contingencies Redeemable noncontrolling interests — — 220,366 — 220,366 Stockholders' equity: AMC Networks stockholders' equity 230,744 3,616,931 1,013,078 (4,630,009 ) 230,744 Non-redeemable noncontrolling interests — — 30,367 — 30,367 Total stockholders' equity 230,744 3,616,931 1,043,445 (4,630,009 ) 261,111 Total liabilities and stockholders' equity $ 3,618,534 $ 4,640,472 $ 2,097,428 $ (5,243,067 ) $ 5,113,367 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, — 581,270 194,621 — 775,891 Current portion of program rights, net — 304,149 149,301 — 453,450 Prepaid expenses, other current assets and intercompany receivable 3,760 183,815 8,540 (104,389 ) 91,726 Total current assets 4,080 1,460,482 519,677 (104,389 ) 1,879,850 Property and equipment, net of accumulated depreciation — 136,032 47,482 — 183,514 Investment in affiliates 3,443,013 934,612 — (4,377,625 ) — Program rights, net — 1,128,021 191,258 — 1,319,279 Long-term intercompany notes receivable — 489,939 436 (490,375 ) — Deferred carriage fees, net — 29,346 578 — 29,924 Intangible assets, net — 170,554 286,688 — 457,242 Goodwill — 66,609 628,549 — 695,158 Deferred tax asset, net — — 20,081 — 20,081 Other assets — 142,115 305,822 447,937 Total assets $ 3,447,093 $ 4,557,710 $ 2,000,571 $ (4,972,389 ) $ 5,032,985 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 350 $ 50,282 $ 51,565 $ — $ 102,197 Accrued liabilities and intercompany payable 51,692 179,003 136,770 (104,389 ) 263,076 Current portion of program rights obligations — 262,004 65,545 — 327,549 Deferred revenue — 27,530 18,903 — 46,433 Current portion of 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' equity: AMC Networks stockholders' equity 134,944 3,443,013 934,612 (4,377,625 ) 134,944 Non-redeemable noncontrolling interests — — 29,001 — 29,001 Total stockholders' equity 134,944 3,443,013 963,613 (4,377,625 ) 163,945 Total liabilities and stockholders' equity $ 3,447,093 $ 4,557,710 $ 2,000,571 $ (4,972,389 ) $ 5,032,985 Condensed Consolidating Statement of Income Three Months Ended March 31, 2018 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues, net $ — $ 574,917 $ 170,386 $ (4,480 ) $ 740,823 Operating expenses: Technical and operating (excluding depreciation and amortization) — 222,621 98,522 (778 ) 320,365 Selling, general and administrative — 122,059 48,089 (3,699 ) 166,449 Depreciation and amortization — 10,804 9,550 — 20,354 Total operating expenses — 355,484 156,161 (4,477 ) 507,168 Operating income — 219,433 14,225 (3 ) 233,655 Other income (expense): Interest expense, net (36,907 ) 11,897 (8,176 ) — (33,186 ) Share of affiliates' income 247,482 17,498 — (264,980 ) — Miscellaneous, net (206 ) 734 16,415 3 16,946 Total other income (expense) 210,369 30,129 8,239 (264,977 ) (16,240 ) Income from operations before income taxes 210,369 249,562 22,464 (264,980 ) 217,415 Income tax expense (53,499 ) (2,080 ) (1,300 ) — (56,879 ) Net income including noncontrolling interests 156,870 247,482 21,164 (264,980 ) 160,536 Net income attributable to noncontrolling interests — — (3,666 ) — (3,666 ) Net income attributable to Parent Company's stockholders $ 156,870 $ 247,482 $ 17,498 $ (264,980 ) $ 156,870 Condensed Consolidating Statement of Income Three Months Ended March 31, 2017 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues, net $ — $ 579,382 $ 143,132 $ (2,325 ) $ 720,189 Operating expenses: Technical and operating (excluding depreciation and amortization) — 221,754 77,617 (759 ) 298,612 Selling, general and administrative — 119,681 45,479 (1,451 ) 163,709 Depreciation and amortization — 10,204 13,289 — 23,493 Restructuring expense — 2,704 — — 2,704 Total operating expenses — 354,343 136,385 (2,210 ) 488,518 Operating income — 225,039 6,747 (115 ) 231,671 Other income (expense): Interest expense, net (29,412 ) 9,823 (7,418 ) — (27,007 ) Share of affiliates' income 235,774 3,145 — (238,919 ) — Miscellaneous, net (112 ) 431 10,615 115 11,049 Total other income (expense) 206,250 13,399 3,197 (238,804 ) (15,958 ) Income from operations before income taxes 206,250 238,438 9,944 (238,919 ) 215,713 Income tax expense (70,033 ) (2,664 ) (385 ) — (73,082 ) Net income including noncontrolling interests 136,217 235,774 9,559 (238,919 ) 142,631 Net income attributable to noncontrolling interests — — (6,414 ) — (6,414 ) Net income attributable to Parent Company's stockholders $ 136,217 $ 235,774 $ 3,145 $ (238,919 ) $ 136,217 Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2018 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income including noncontrolling interest $ 156,870 $ 247,482 $ 21,164 $ (264,980 ) $ 160,536 Other comprehensive income (loss): Foreign currency translation adjustment 18,805 — 18,805 (18,805 ) 18,805 Other comprehensive income, net of income taxes 18,805 — 18,805 (18,805 ) 18,805 Comprehensive income 175,675 247,482 39,969 (283,785 ) 179,341 Comprehensive income attributable to noncontrolling interests — — (4,563 ) — (4,563 ) Comprehensive income attributable to Parent Company's stockholders $ 175,675 $ 247,482 $ 35,406 $ (283,785 ) $ 174,778 Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2017 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income including noncontrolling interest $ 136,217 $ 235,774 $ 9,559 $ (238,919 ) $ 142,631 Other comprehensive income (loss): Foreign currency translation adjustment 9,864 — 9,864 (9,864 ) 9,864 Unrealized gain on interest rate swaps 319 — — — 319 Unrealized gain on available for sale securities 4,021 — — — 4,021 Other comprehensive income, before income taxes 14,204 — 9,864 (9,864 ) 14,204 Income tax expense (1,597 ) — — — (1,597 ) Other comprehensive income, net of income taxes 12,607 — 9,864 (9,864 ) 12,607 Comprehensive income 148,824 235,774 19,423 (248,783 ) 155,238 Comprehensive income attributable to noncontrolling interests — — (6,805 ) — (6,805 ) Comprehensive income attributable to Parent Company's stockholders $ 148,824 $ 235,774 $ 12,618 $ (248,783 ) $ 148,433 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2018 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 234,947 $ 154,495 $ (7,472 ) $ (264,998 ) $ 116,972 Cash flows from investing activities: Capital expenditures — (11,040 ) (902 ) — (11,942 ) Return of capital from investees — — 172 — 172 Investment in investees — — (42,318 ) — (42,318 ) Increase to investment in affiliates (141,109 ) (129,821 ) 67,191 203,739 — Net cash (used in) provided by investing activities (141,109 ) (140,861 ) 24,143 203,739 (54,088 ) Cash flows from financing activities: Deemed repurchases of restricted stock units (15,354 ) — — — (15,354 ) Purchase of treasury stock (83,637 ) — — — (83,637 ) Principal payments on capital lease obligations — (723 ) (683 ) — (1,406 ) Distributions to noncontrolling interests — — (1,435 ) — (1,435 ) Net cash used in financing activities (98,991 ) (723 ) (2,118 ) — (101,832 ) Net (decrease) increase in cash and cash equivalents from operations (5,153 ) 12,911 14,553 (61,259 ) (38,948 ) Effect of exchange rate changes on cash and cash equivalents 5,017 (49,740 ) (7,171 ) 61,259 9,365 Cash and cash equivalents at beginning of period 320 391,248 167,215 — 558,783 Cash and cash equivalents at end of period $ 184 $ 354,419 $ 174,597 $ — $ 529,200 Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2017 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 224,091 $ 138,889 $ 21,097 $ (239,207 ) $ 144,870 Cash flows from investing activities: Capital expenditures — (15,645 ) (4,561 ) — (20,206 ) Investment in and loans to investees — — (28,000 ) — (28,000 ) Increase to investment in affiliates (57,926 ) (36,982 ) — 94,908 — Net cash used in investing activities (57,926 ) (52,627 ) (32,561 ) 94,908 (48,206 ) Cash flows from financing activities: Principal payments on long-term debt (55,500 ) — — — (55,500 ) Deemed repurchases of restricted stock units (12,796 ) — — — (12,796 ) Purchase of treasury stock (91,423 ) — — — (91,423 ) Principal payments on capital lease obligations — (657 ) (744 ) — (1,401 ) Distributions to noncontrolling interests — — (11,712 ) — (11,712 ) Net cash used in financing activities (159,719 ) (657 ) (12,456 ) — (172,832 ) Net increase (decrease) in cash and cash equivalents from operations 6,446 85,605 (23,920 ) (144,299 ) (76,168 ) Effect of exchange rate changes on cash and cash equivalents (6,488 ) (144,299 ) 4,915 144,299 (1,573 ) Cash and cash equivalents at beginning of period 565 320,950 159,874 — 481,389 Cash and cash equivalents at end of period $ 523 $ 262,256 $ 140,869 $ — $ 403,648 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 20, 2018, the Company acquired a majority ownership interest in Levity Entertainment Group LLC ("Levity"), a vertically integrated media company that owns and operates comedy venues as well as produces original content for distribution on multiple platforms, including live, digital and linear, for a total purchase price of $48.5 million . |
Description Of Business And B26
Description Of Business And Basis Of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation, Policy | Principles of Consolidation These unaudited condensed consolidated financial statements include the accounts of AMC Networks and its majority owned or controlled subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Investments in business entities in which the Company lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method of accounting. Unaudited Interim Financial Statements These condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and Article 10 of Regulation S-X of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the Company's consolidated financial statements and notes thereto for the year ended December 31, 2017 contained in the Company's Annual Report on Form 10-K (" 2017 Form 10-K") filed with the SEC. The condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, such financial statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented. The results of operations for interim periods are not necessarily indicative of the results that might be expected for future interim periods or for the full year ending December 31, 2018 . |
Program Rights, Policy | Program Rights The Company periodically reviews the programming usefulness of its licensed and owned original program rights based on a series of factors, including expected future revenue generation from airings on the Company's networks and other exploitation opportunities, ratings, type and quality of program material, standards and practices, and fitness for exhibition through various forms of distribution. If it is determined that film or other program rights have limited, or no, future programming usefulness, a write-off of the unamortized cost is included in technical and operating expense. Program rights write-offs were $5.2 million and $0.4 million for the three months ended March 31, 2018 and March 31, 2017 , respectively. |
Use of Estimates, Policy | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include derivative assets and liabilities, certain stock compensation awards, the useful lives and methodologies used to amortize and assess recoverability of program rights, the estimated useful lives of intangible assets, valuation and recoverability of goodwill and intangible assets and income tax assets and liabilities. |
New Accounting Pronouncements, Policy | Adoption of New Revenue Recognition Standard The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) on January 1, 2018, using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results as of and for the three-month period ended March 31, 2018 reflect the application of the new standard, while the reported results for 2017 have not been adjusted to reflect the new standard and were prepared under prior revenue recognition accounting guidance. The adoption of the new standard did not result in significant changes in the way the Company records distribution and advertising revenues. However, as a result of applying the new standard, there are certain components of the Company’s distribution revenues where the new standard generally results in earlier recognition of revenue compared to its historical policies due to: (i) the requirement to estimate and recognize variable consideration prior to such amounts becoming fixed and determinable, (ii) recognition of royalties in the period of usage, and (iii) recognition of certain arrangements with minimum guarantees on a time-based (straight-line) basis. See Note 2 for more information. As a result of adopting Topic 606, the Company recorded an increase to opening retained earnings of approximately $12.8 million , net of tax, as of January 1, 2018. The following table provides changes to the opening balances of current assets, total assets, current liabilities and total liabilities resulting from the adoption of the new guidance. (In thousands) December 31, Impact of January 1, 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 The amount by which each financial statement line item has been affected in the current reporting period by the application of Topic 606 compared to historical policies is not material, therefore, comparative disclosures have been omitted. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases (Topic 842) . ASU 2016-02 requires lessees to record most of their leases on the balance sheet, which will be recognized as a right-of-use asset and a lease liability. The Company will be required to classify each separate lease component as an operating or finance lease at the lease commencement date. Initial measurement of the right-of-use asset and lease liability is the same for operating and finance leases, however expense recognition and amortization of the right-of-use asset differs. Operating leases will reflect lease expense on a straight-line basis similar to current operating leases. The straight-line expense will reflect the interest expense on the lease liability (effective interest method) and amortization of the right-of-use asset, which will be presented as a single line item in the operating expense section of the income statement. Finance leases will reflect a front-loaded expense pattern similar to the pattern for current capital leases. ASU 2016-02 is effective for the first quarter of 2019, with early adoption permitted. The Company is currently determining its implementation approach and assessing the impact the adoption will have on its consolidated financial statements. |
Description Of Business And B27
Description Of Business And Basis Of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table provides changes to the opening balances of current assets, total assets, current liabilities and total liabilities resulting from the adoption of the new guidance. (In thousands) December 31, Impact of January 1, 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 |
Revnue Recognition (Tables)
Revnue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers. (In thousands) March 31, 2018 December 31, 2017 (a) Balances from contracts with customers: Accounts receivable (including long-term, included in Other assets) $ 981,266 $ 926,089 Contract assets, short-term (included in Other current assets) 1,891 — Contract assets, long-term (included in Other assets) 14,646 — Contract liabilities (Deferred revenue) 51,916 46,433 (a) As noted above, prior period amounts have not been adjusted under the modified retrospective method. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following is a reconciliation between basic and diluted weighted average shares outstanding: (In thousands) Three Months Ended March 31, 2018 2017 Basic weighted average common shares outstanding 60,967 68,020 Effect of dilution: Restricted stock units 752 744 Diluted weighted average common shares outstanding 61,719 68,764 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amount of goodwill, by operating segment is as follows: (In thousands) National Networks International and Other Total December 31, 2017 $ 239,759 $ 455,399 $ 695,158 Amortization of "second component" goodwill (328 ) — (328 ) Foreign currency translation — 12,824 12,824 March 31, 2018 $ 239,431 $ 468,223 $ 707,654 |
Schedule of Finite-Lived Intangible Assets | The following tables summarize information relating to the Company's identifiable intangible assets: (In thousands) March 31, 2018 Gross Accumulated Amortization Net Estimated Useful Lives Amortizable intangible assets: Affiliate and customer relationships $ 532,555 $ (177,019 ) $ 355,536 6 to 25 years Advertiser relationships 46,282 (14,457 ) 31,825 11 years Trade names 55,201 (15,422 ) 39,779 20 years Other amortizable intangible assets 11,704 (6,349 ) 5,355 2 to 15 years Total amortizable intangible assets 645,742 (213,247 ) 432,495 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 665,642 $ (213,247 ) $ 452,395 (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 |
Schedule of Indefinite-Lived Intangible Assets | The following tables summarize information relating to the Company's identifiable intangible assets: (In thousands) March 31, 2018 Gross Accumulated Amortization Net Estimated Useful Lives Amortizable intangible assets: Affiliate and customer relationships $ 532,555 $ (177,019 ) $ 355,536 6 to 25 years Advertiser relationships 46,282 (14,457 ) 31,825 11 years Trade names 55,201 (15,422 ) 39,779 20 years Other amortizable intangible assets 11,704 (6,349 ) 5,355 2 to 15 years Total amortizable intangible assets 645,742 (213,247 ) 432,495 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 665,642 $ (213,247 ) $ 452,395 (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 |
Schedule of Estimated Amortization Expense | Estimated aggregate amortization expense for intangible assets subject to amortization for each of the following five years is: (In thousands) Years Ending December 31, 2018 $ 36,491 2019 36,488 2020 36,102 2021 36,099 2022 36,087 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: (In thousands) March 31, 2018 December 31, 2017 Interest $ 40,093 $ 30,262 Employee related costs 55,181 117,850 Income taxes payable 35,025 19,558 Other accrued expenses 105,002 95,406 Total accrued liabilities $ 235,301 $ 263,076 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The Company's long-term debt consists of the following: (In thousands) March 31, 2018 December 31, 2017 Senior Secured Credit Facility: (a) 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 Total long-term debt 3,150,000 3,150,000 Unamortized discount (32,663 ) (33,776 ) Unamortized deferred financing costs (16,199 ) (16,967 ) Long-term debt, net $ 3,101,138 $ 3,099,257 (a) The Company's $500 million revolving credit facility remains undrawn at March 31, 2018 . Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table presents for each of these hierarchy levels, the Company's financial assets and liabilities that are measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017 : (In thousands) Level I Level II Level III Total At March 31, 2018: Assets: Cash equivalents $ 65,955 $ — $ — $ 65,955 Marketable securities 8,457 — — 8,457 Investments 31,632 — — 31,632 Interest rate swap contracts — 1,298 — 1,298 Foreign currency derivatives — 3,027 — 3,027 Other derivatives — 9,712 41,097 50,809 Liabilities: Foreign currency derivatives $ — $ 4,064 $ — $ 4,064 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 |
Carrying Values And Fair Values Of The Company's Financial Instruments | The carrying values and estimated fair values of the Company's financial instruments, excluding those that are carried at fair value in the condensed consolidated balance sheets, are summarized as follows: (In thousands) March 31, 2018 Carrying Amount Estimated Fair Value Debt instruments: Term Loan A Facility $ 737,774 $ 748,125 4.75% Notes due August 2025 785,171 771,000 5.00% Notes due April 2024 984,591 988,750 4.75% Notes due December 2022 593,602 604,500 $ 3,101,138 $ 3,112,375 (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 |
Derivative Financial Instrume34
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments Included In Balance Sheets | The fair values of the Company's derivative financial instruments included in the condensed consolidated balance sheets are as follows: (In thousands) Balance Sheet Location March 31, 2018 December 31, 2017 Derivatives not designated as hedging instruments: Assets: Foreign currency derivatives Prepaid expenses and other current assets $ 785 $ 943 Foreign currency derivatives Other assets 2,241 2,858 Interest rate swap contracts Prepaid expenses and other current assets 1,298 1,444 Other derivatives Other assets 50,809 37,065 Liabilities: Foreign currency derivatives Accrued liabilities 1,069 1,223 Foreign currency derivatives Other liabilities 2,995 3,252 |
Schedule of Gains And Losses Related To Derivative Instruments | The amounts of gains and losses related to the Company's derivative financial instruments designated as hedging instruments are as follows: (In thousands) Gain or (Loss) on Derivatives Location of Gain or (Loss) in Earnings Gain or (Loss) Reclassified from Accumulated OCI Three Months Ended March 31, Three Months Ended March 31, 2018 2017 2018 2017 Derivatives in cash flow hedging relationships: Interest rate swap contracts $ — $ 321 Interest expense $ — $ 2 (a) There were no gains or losses recognized in earnings related to any ineffective portion of hedging relationships or related to any amount excluded from the assessment of hedge effectiveness for the three months ended March 31, 2018 and 2017 . |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The amounts of gains and losses related to the Company's derivative financial instruments not designated as hedging instruments are as follows: (In thousands) Location of Gain or (Loss) Recognized in Earnings on Derivatives Amount of Gain or (Loss) Recognized in Earnings on Derivatives Three Months Ended March 31, 2018 2017 Derivatives not designated as hedging relationships: Interest rate swap contracts Interest expense $ (146 ) $ 2 Foreign currency derivatives Miscellaneous, net (293 ) (267 ) Other derivatives Miscellaneous, net 11,687 11,117 Total $ 11,248 $ 10,852 |
Redeemable Noncontrolling Int35
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The following table summarizes activity related to redeemable noncontrolling interest for the three months ended March 31, 2018 . (In thousands) Three Months Ended March 31, 2018 December 31, 2017 $ 218,604 Net earnings 3,197 Distributions (1,435 ) March 31, 2018 $ 220,366 |
Cash Flows (Tables)
Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |
Summary Of Non-Cash Activities And Other Supplemental Data | The Company's non-cash investing and financing activities and other supplemental data are as follows: (In thousands) Three Months Ended March 31, 2018 2017 Non-Cash Investing and Financing Activities: Treasury stock not yet settled 9,980 5,988 Capital expenditures incurred but not yet paid 6,070 3,362 Supplemental Data: Cash interest paid 25,634 8,605 Income taxes paid, net 6,243 7,498 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Continuing Operations By Reportable Segment | The Company evaluates segment performance based on several factors, of which the primary financial measure is operating segment adjusted operating income ("AOI"), a non-GAAP measure, defined as operating income (loss) before depreciation and amortization, share-based compensation expense or benefit, impairment and related charges (including gains or losses on sales or dispositions of businesses), and restructuring expense or credit. The Company has presented the components that reconcile adjusted operating income to operating income, an accepted GAAP measure, and other information as to the continuing operations of the Company's operating segments below. (In thousands) Three Months Ended March 31, 2018 National Networks International and Other Inter-segment eliminations Consolidated Revenues, net Advertising $ 225,730 $ 22,510 $ — $ 248,240 Distribution 407,298 88,880 (3,595 ) 492,583 Consolidated revenues, net $ 633,028 $ 111,390 $ (3,595 ) $ 740,823 Operating income (loss) $ 249,852 $ (16,814 ) $ 617 $ 233,655 Share-based compensation expense 12,527 2,792 — 15,319 Depreciation and amortization 8,495 11,859 — 20,354 Adjusted operating income (loss) $ 270,874 $ (2,163 ) $ 617 $ 269,328 Capital expenditures $ 2,148 $ 9,794 $ — $ 11,942 (In thousands) Three Months Ended March 31, 2017 National Networks International and Other Inter-segment eliminations Consolidated Revenues, net Advertising $ 247,542 $ 20,070 $ — $ 267,612 Distribution 367,605 86,727 (1,755 ) 452,577 Consolidated revenues, net $ 615,147 $ 106,797 $ (1,755 ) $ 720,189 Operating income (loss) $ 249,607 $ (19,217 ) $ 1,281 $ 231,671 Share-based compensation expense 9,908 2,556 — 12,464 Restructuring expense 54 2,650 — 2,704 Depreciation and amortization 8,404 15,089 — 23,493 Adjusted operating income $ 267,973 $ 1,078 $ 1,281 $ 270,332 Capital expenditures $ 5,135 $ 15,071 $ — $ 20,206 |
Summary of Inter-Segment Eliminations | Inter-segment eliminations are primarily licensing revenues recognized between the National Networks and International and Other segments as well as revenues recognized by AMC Networks Broadcasting & Technology for transmission revenues recognized from the International and Other operating segment. (In thousands) Three Months Ended March 31, 2018 2017 Inter-segment revenues National Networks $ (2,535 ) $ (1,724 ) International and Other (1,060 ) (31 ) $ (3,595 ) $ (1,755 ) |
Schedule of Revenue by Geographic Area | The table below summarizes revenues based on customer location: (In thousands) Three Months Ended March 31, 2018 2017 Revenues United States $ 586,568 $ 600,055 Europe 86,264 78,675 Other 67,991 41,459 $ 740,823 $ 720,189 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets | The table below summarizes property and equipment based on asset location: (In thousands) March 31, 2018 December 31, 2017 Property and equipment, net United States $ 138,912 $ 136,203 Europe 28,449 28,261 Other 18,079 19,050 $ 185,440 $ 183,514 |
Condensed Consolidating Finan38
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Consolidating Balance Sheet March 31, 2018 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 184 $ 354,419 $ 174,597 $ — $ 529,200 Accounts receivable, trade (including amounts due from related parties, net, — 588,633 204,642 — 793,275 Current portion of program rights, net — 315,628 149,293 — 464,921 Prepaid expenses, other current assets and intercompany receivable 1,419 212,382 10,592 (122,335 ) 102,058 Total current assets 1,603 1,471,062 539,124 (122,335 ) 1,889,454 Property and equipment, net of accumulated depreciation — 138,866 46,574 — 185,440 Investment in affiliates 3,616,931 1,013,078 — (4,630,009 ) — Program rights, net — 1,092,691 186,898 — 1,279,589 Long-term intercompany notes receivable — 490,380 343 (490,723 ) — Deferred carriage fees, net — 26,008 1,164 — 27,172 Intangible assets, net — 168,117 284,278 — 452,395 Goodwill — 66,282 641,372 — 707,654 Deferred tax asset, net — — 21,731 — 21,731 Other assets — 173,988 375,944 — 549,932 Total assets $ 3,618,534 $ 4,640,472 $ 2,097,428 $ (5,243,067 ) $ 5,113,367 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 32 $ 47,245 $ 49,539 $ — $ 96,816 Accrued liabilities and intercompany payable 86,500 121,433 149,703 (122,335 ) 235,301 Current portion of program rights obligations — 255,744 71,118 — 326,862 Deferred revenue — 34,738 17,178 — 51,916 Current portion of capital lease obligations — 3,001 1,770 — 4,771 Total current liabilities 86,532 462,161 289,308 (122,335 ) 715,666 Program rights obligations — 470,626 20,901 — 491,527 Long-term debt, net 3,101,138 — — — 3,101,138 Capital lease obligations — 2,963 22,270 — 25,233 Deferred tax liability, net 150,247 — (5,088 ) — 145,159 Other liabilities and intercompany notes payable 49,873 87,791 506,226 (490,723 ) 153,167 Total liabilities 3,387,790 1,023,541 833,617 (613,058 ) 4,631,890 Commitments and contingencies Redeemable noncontrolling interests — — 220,366 — 220,366 Stockholders' equity: AMC Networks stockholders' equity 230,744 3,616,931 1,013,078 (4,630,009 ) 230,744 Non-redeemable noncontrolling interests — — 30,367 — 30,367 Total stockholders' equity 230,744 3,616,931 1,043,445 (4,630,009 ) 261,111 Total liabilities and stockholders' equity $ 3,618,534 $ 4,640,472 $ 2,097,428 $ (5,243,067 ) $ 5,113,367 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, — 581,270 194,621 — 775,891 Current portion of program rights, net — 304,149 149,301 — 453,450 Prepaid expenses, other current assets and intercompany receivable 3,760 183,815 8,540 (104,389 ) 91,726 Total current assets 4,080 1,460,482 519,677 (104,389 ) 1,879,850 Property and equipment, net of accumulated depreciation — 136,032 47,482 — 183,514 Investment in affiliates 3,443,013 934,612 — (4,377,625 ) — Program rights, net — 1,128,021 191,258 — 1,319,279 Long-term intercompany notes receivable — 489,939 436 (490,375 ) — Deferred carriage fees, net — 29,346 578 — 29,924 Intangible assets, net — 170,554 286,688 — 457,242 Goodwill — 66,609 628,549 — 695,158 Deferred tax asset, net — — 20,081 — 20,081 Other assets — 142,115 305,822 447,937 Total assets $ 3,447,093 $ 4,557,710 $ 2,000,571 $ (4,972,389 ) $ 5,032,985 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 350 $ 50,282 $ 51,565 $ — $ 102,197 Accrued liabilities and intercompany payable 51,692 179,003 136,770 (104,389 ) 263,076 Current portion of program rights obligations — 262,004 65,545 — 327,549 Deferred revenue — 27,530 18,903 — 46,433 Current portion of 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' equity: AMC Networks stockholders' equity 134,944 3,443,013 934,612 (4,377,625 ) 134,944 Non-redeemable noncontrolling interests — — 29,001 — 29,001 Total stockholders' equity 134,944 3,443,013 963,613 (4,377,625 ) 163,945 Total liabilities and stockholders' equity $ 3,447,093 $ 4,557,710 $ 2,000,571 $ (4,972,389 ) $ 5,032,985 |
Condensed Income Statement | Condensed Consolidating Statement of Income Three Months Ended March 31, 2018 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues, net $ — $ 574,917 $ 170,386 $ (4,480 ) $ 740,823 Operating expenses: Technical and operating (excluding depreciation and amortization) — 222,621 98,522 (778 ) 320,365 Selling, general and administrative — 122,059 48,089 (3,699 ) 166,449 Depreciation and amortization — 10,804 9,550 — 20,354 Total operating expenses — 355,484 156,161 (4,477 ) 507,168 Operating income — 219,433 14,225 (3 ) 233,655 Other income (expense): Interest expense, net (36,907 ) 11,897 (8,176 ) — (33,186 ) Share of affiliates' income 247,482 17,498 — (264,980 ) — Miscellaneous, net (206 ) 734 16,415 3 16,946 Total other income (expense) 210,369 30,129 8,239 (264,977 ) (16,240 ) Income from operations before income taxes 210,369 249,562 22,464 (264,980 ) 217,415 Income tax expense (53,499 ) (2,080 ) (1,300 ) — (56,879 ) Net income including noncontrolling interests 156,870 247,482 21,164 (264,980 ) 160,536 Net income attributable to noncontrolling interests — — (3,666 ) — (3,666 ) Net income attributable to Parent Company's stockholders $ 156,870 $ 247,482 $ 17,498 $ (264,980 ) $ 156,870 Condensed Consolidating Statement of Income Three Months Ended March 31, 2017 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues, net $ — $ 579,382 $ 143,132 $ (2,325 ) $ 720,189 Operating expenses: Technical and operating (excluding depreciation and amortization) — 221,754 77,617 (759 ) 298,612 Selling, general and administrative — 119,681 45,479 (1,451 ) 163,709 Depreciation and amortization — 10,204 13,289 — 23,493 Restructuring expense — 2,704 — — 2,704 Total operating expenses — 354,343 136,385 (2,210 ) 488,518 Operating income — 225,039 6,747 (115 ) 231,671 Other income (expense): Interest expense, net (29,412 ) 9,823 (7,418 ) — (27,007 ) Share of affiliates' income 235,774 3,145 — (238,919 ) — Miscellaneous, net (112 ) 431 10,615 115 11,049 Total other income (expense) 206,250 13,399 3,197 (238,804 ) (15,958 ) Income from operations before income taxes 206,250 238,438 9,944 (238,919 ) 215,713 Income tax expense (70,033 ) (2,664 ) (385 ) — (73,082 ) Net income including noncontrolling interests 136,217 235,774 9,559 (238,919 ) 142,631 Net income attributable to noncontrolling interests — — (6,414 ) — (6,414 ) Net income attributable to Parent Company's stockholders $ 136,217 $ 235,774 $ 3,145 $ (238,919 ) $ 136,217 |
Condensed Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2018 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income including noncontrolling interest $ 156,870 $ 247,482 $ 21,164 $ (264,980 ) $ 160,536 Other comprehensive income (loss): Foreign currency translation adjustment 18,805 — 18,805 (18,805 ) 18,805 Other comprehensive income, net of income taxes 18,805 — 18,805 (18,805 ) 18,805 Comprehensive income 175,675 247,482 39,969 (283,785 ) 179,341 Comprehensive income attributable to noncontrolling interests — — (4,563 ) — (4,563 ) Comprehensive income attributable to Parent Company's stockholders $ 175,675 $ 247,482 $ 35,406 $ (283,785 ) $ 174,778 Condensed Consolidating Statement of Comprehensive Income Three Months Ended March 31, 2017 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income including noncontrolling interest $ 136,217 $ 235,774 $ 9,559 $ (238,919 ) $ 142,631 Other comprehensive income (loss): Foreign currency translation adjustment 9,864 — 9,864 (9,864 ) 9,864 Unrealized gain on interest rate swaps 319 — — — 319 Unrealized gain on available for sale securities 4,021 — — — 4,021 Other comprehensive income, before income taxes 14,204 — 9,864 (9,864 ) 14,204 Income tax expense (1,597 ) — — — (1,597 ) Other comprehensive income, net of income taxes 12,607 — 9,864 (9,864 ) 12,607 Comprehensive income 148,824 235,774 19,423 (248,783 ) 155,238 Comprehensive income attributable to noncontrolling interests — — (6,805 ) — (6,805 ) Comprehensive income attributable to Parent Company's stockholders $ 148,824 $ 235,774 $ 12,618 $ (248,783 ) $ 148,433 |
Condensed Cash Flow Statement | Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2018 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 234,947 $ 154,495 $ (7,472 ) $ (264,998 ) $ 116,972 Cash flows from investing activities: Capital expenditures — (11,040 ) (902 ) — (11,942 ) Return of capital from investees — — 172 — 172 Investment in investees — — (42,318 ) — (42,318 ) Increase to investment in affiliates (141,109 ) (129,821 ) 67,191 203,739 — Net cash (used in) provided by investing activities (141,109 ) (140,861 ) 24,143 203,739 (54,088 ) Cash flows from financing activities: Deemed repurchases of restricted stock units (15,354 ) — — — (15,354 ) Purchase of treasury stock (83,637 ) — — — (83,637 ) Principal payments on capital lease obligations — (723 ) (683 ) — (1,406 ) Distributions to noncontrolling interests — — (1,435 ) — (1,435 ) Net cash used in financing activities (98,991 ) (723 ) (2,118 ) — (101,832 ) Net (decrease) increase in cash and cash equivalents from operations (5,153 ) 12,911 14,553 (61,259 ) (38,948 ) Effect of exchange rate changes on cash and cash equivalents 5,017 (49,740 ) (7,171 ) 61,259 9,365 Cash and cash equivalents at beginning of period 320 391,248 167,215 — 558,783 Cash and cash equivalents at end of period $ 184 $ 354,419 $ 174,597 $ — $ 529,200 Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2017 (In thousands) Parent Company Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 224,091 $ 138,889 $ 21,097 $ (239,207 ) $ 144,870 Cash flows from investing activities: Capital expenditures — (15,645 ) (4,561 ) — (20,206 ) Investment in and loans to investees — — (28,000 ) — (28,000 ) Increase to investment in affiliates (57,926 ) (36,982 ) — 94,908 — Net cash used in investing activities (57,926 ) (52,627 ) (32,561 ) 94,908 (48,206 ) Cash flows from financing activities: Principal payments on long-term debt (55,500 ) — — — (55,500 ) Deemed repurchases of restricted stock units (12,796 ) — — — (12,796 ) Purchase of treasury stock (91,423 ) — — — (91,423 ) Principal payments on capital lease obligations — (657 ) (744 ) — (1,401 ) Distributions to noncontrolling interests — — (11,712 ) — (11,712 ) Net cash used in financing activities (159,719 ) (657 ) (12,456 ) — (172,832 ) Net increase (decrease) in cash and cash equivalents from operations 6,446 85,605 (23,920 ) (144,299 ) (76,168 ) Effect of exchange rate changes on cash and cash equivalents (6,488 ) (144,299 ) 4,915 144,299 (1,573 ) Cash and cash equivalents at beginning of period 565 320,950 159,874 — 481,389 Cash and cash equivalents at end of period $ 523 $ 262,256 $ 140,869 $ — $ 403,648 |
Description Of Business And B39
Description Of Business And Basis Of Presentation (Narrative) (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018USD ($)segmentnetwork | Mar. 31, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated earnings | $ 936,379 | $ 766,725 | ||
Number of Operating Segments | segment | 2 | |||
Number of Nationally Distributed Programming Networks | network | 5 | |||
Program Rights Write Offs | $ 5,200 | $ 400 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Accumulated earnings | $ 12,800 |
Description Of Business And B40
Description Of Business And Basis Of Presentation (Schedule of New Accounting Pronouncements) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Current assets | $ 1,889,454 | $ 1,883,508 | $ 1,879,850 |
Total assets | 5,113,367 | 5,052,884 | 5,032,985 |
Current liabilities | 715,666 | 744,937 | 744,102 |
Total liabilities | $ 4,631,890 | 4,657,551 | 4,650,436 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Current assets | 1,879,850 | ||
Total assets | 5,032,985 | ||
Current liabilities | 744,102 | ||
Total liabilities | $ 4,650,436 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Current assets | 3,658 | ||
Total assets | 19,899 | ||
Current liabilities | 835 | ||
Total liabilities | $ 7,115 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liability, Revenue Recognized | $ 12.2 |
Revenue Recognition (Contract w
Revenue Recognition (Contract with Customer, Asset and Liability) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Accounts Receivable, Net | $ 981,266 | $ 926,089 |
Contract with Customer, Asset, Net, Noncurrent | 14,646 | 0 |
Contract with Customer, Asset, Net, Current | 1,891 | 0 |
Contract with Customer, Liability, Current | $ 51,916 | $ 46,433 |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jun. 06, 2017 | Mar. 07, 2016 | |
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 500 | $ 500 | |
Treasury Stock Acquired, Average Cost Per Share | $ 50.77 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 258.9 | |||
Common Class A [Member] | ||||
Treasury Stock, Shares, Acquired | 1,600,000 | |||
Employee Stock Option [Member] | ||||
Antidilutive securities excluded from EPS | 388,000 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive securities excluded from EPS | 170,000 | |||
Performance Shares [Member] | ||||
Antidilutive securities excluded from EPS | 195,000 | 175,000 |
Net Income Per Share (Reconcili
Net Income Per Share (Reconciliation Between Basic And Diluted Weighted Average Shares Outstanding) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Basic weighted average shares outstanding | 60,967 | 68,020 |
Diluted weighted average shares outstanding | 61,719 | 68,764 |
Restricted Stock Units (RSUs) [Member] | ||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||
Incremental Common Shares Attributable to Share-based Payment Arrangements | 752 | 744 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018 | Feb. 26, 2018 | Jan. 05, 2018 | Dec. 31, 2017 | |
Investments [Line Items] | ||||
Equity Method Investments | $ 81.4 | $ 61.3 | ||
Cost Method Investments | $ 71.8 | $ 46.8 | ||
RLJE Stock Purchase Agreement [Member] | ||||
Investments [Line Items] | ||||
Warrants Received per RLJE Investment Agreement | 747,945 | |||
Investment Warrants, Exercise Price | $ 1.50 | |||
Business Acquisition, Transaction Costs | $ 17.2 | |||
RLJE [Member] | ||||
Investments [Line Items] | ||||
Investment Warrants, Exercise Price | $ 3 | |||
Business Acquisition, Share Price | $ 4.25 | |||
fuboTV [Member] | ||||
Investments [Line Items] | ||||
Cost Method Investments | $ 25 | |||
Common Class A [Member] | RLJE Stock Purchase Agreement [Member] | ||||
Investments [Line Items] | ||||
Common Stock Of RLJE Acquired, Number Of Shares | 678,095 | |||
Convertible Preferred Stock [Member] | RLJE Stock Purchase Agreement [Member] | ||||
Investments [Line Items] | ||||
Common Stock Of RLJE Acquired, Number Of Shares | 7,479.432 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Subsequent Recognition of Deferred Tax Asset | $ 328 | |
Finite-Lived Intangible Assets, Amortization Expense | 9,300 | $ 9,100 |
National Networks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Subsequent Recognition of Deferred Tax Asset | $ 328 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets (Schedule Of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2017 | $ 695,158 |
Amortization of second component goodwill | (328) |
Foreign currency translation | 12,824 |
March 31, 2018 | 707,654 |
National Networks [Member] | |
Goodwill [Roll Forward] | |
December 31, 2017 | 239,759 |
Amortization of second component goodwill | (328) |
Foreign currency translation | 0 |
March 31, 2018 | 239,431 |
International And Other [Member] | |
Goodwill [Roll Forward] | |
December 31, 2017 | 455,399 |
Amortization of second component goodwill | 0 |
Foreign currency translation | 12,824 |
March 31, 2018 | $ 468,223 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets (Schedule Of Finite and Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Gross Carrying Amount of Amortizable Intangible Assets | $ 645,742 | $ 639,157 |
Accumulated amortization | (213,247) | (201,815) |
Amortizable intangible assets, net of accumulated amortization | 432,495 | 437,342 |
Trademarks | 19,900 | 19,900 |
Intangible Assets, Gross, Excluding Goodwill | 665,642 | 659,057 |
Total intangible assets, net | 452,395 | 457,242 |
Affiliate and Customer Relationships [Member] | ||
Gross Carrying Amount of Amortizable Intangible Assets | 532,555 | 527,713 |
Accumulated amortization | (177,019) | (167,911) |
Amortizable intangible assets, net of accumulated amortization | $ 355,536 | 359,802 |
Advertiser Relationships [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 11 years | |
Gross Carrying Amount of Amortizable Intangible Assets | $ 46,282 | 46,282 |
Accumulated amortization | (14,457) | (13,405) |
Amortizable intangible assets, net of accumulated amortization | $ 31,825 | 32,877 |
Trade Names [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Gross Carrying Amount of Amortizable Intangible Assets | $ 55,201 | 53,761 |
Accumulated amortization | (15,422) | (14,420) |
Amortizable intangible assets, net of accumulated amortization | 39,779 | 39,341 |
Other Amortizable Intangible Assets [Member] | ||
Gross Carrying Amount of Amortizable Intangible Assets | 11,704 | 11,401 |
Accumulated amortization | (6,349) | (6,079) |
Amortizable intangible assets, net of accumulated amortization | $ 5,355 | $ 5,322 |
Minimum [Member] | Affiliate and Customer Relationships [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Minimum [Member] | Other Amortizable Intangible Assets [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Maximum [Member] | Affiliate and Customer Relationships [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 25 years | |
Maximum [Member] | Other Amortizable Intangible Assets [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets (Schedule Of Estimated Amortization Expense) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 36,491 |
2,019 | 36,488 |
2,020 | 36,102 |
2,021 | 36,099 |
2,022 | $ 36,087 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities, Current [Abstract] | ||
Interest | $ 40,093 | $ 30,262 |
Employee related costs | 55,181 | 117,850 |
Income taxes payable | 35,025 | 19,558 |
Other accrued expenses | 105,002 | 95,406 |
Total accrued liabilities | $ 235,301 | $ 263,076 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 |
Long-term Debt (Summary of Long
Long-term Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 3,150,000 | $ 3,150,000 |
Unamortized discount | (32,663) | (33,776) |
Unamortized deferred financing costs | (16,199) | (16,967) |
Long-term debt, net | 3,101,138 | 3,099,257 |
Term-A Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | 737,774 | 737,140 |
5.00% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | $ 984,591 | $ 984,056 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% |
4.75% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | $ 593,602 | $ 593,304 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% |
4.75% Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, net | $ 785,171 | $ 784,757 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% |
Senior Notes [Member] | 5.00% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,000,000 | $ 1,000,000 |
Senior Notes [Member] | 4.75% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 600,000 | 600,000 |
Senior Notes [Member] | 4.75% Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 800,000 | 800,000 |
Secured Debt [Member] | Term-A Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 750,000 | $ 750,000 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Oct. 14, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 11,248 | $ 10,852 | |
RLJE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment Warrants, Exercise Price | $ 3 | ||
Other Contract [Member] | Other Nonoperating Income (Expense) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 11,687 | 11,117 | |
Other Contract [Member] | Other Nonoperating Income (Expense) [Member] | RLJE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 8,100 | $ 8,900 | |
Level III [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Inputs, Discount for Lack of Marketability | 32.00% | ||
Minimum [Member] | RLJE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrants Received per RLJE Investment Agreement | 20 |
Fair Value Measurement (Financi
Fair Value Measurement (Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | $ 65,955 | $ 100,615 |
Marketable securities | 8,457 | 10,709 |
Investments, Fair Value Disclosure | 31,632 | 9,948 |
Interest Rate Swap [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swap contracts | 1,298 | 1,444 |
Foreign Exchange Forward [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Foreign currency derivatives | 3,027 | 3,801 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Foreign currency derivatives | 4,064 | 4,475 |
Other Contract [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other derivatives | 50,809 | 37,065 |
Level I [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 65,955 | 100,615 |
Marketable securities | 8,457 | 10,709 |
Investments, Fair Value Disclosure | 31,632 | 9,948 |
Level II [Member] | Interest Rate Swap [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate swap contracts | 1,298 | 1,444 |
Level II [Member] | Foreign Exchange Forward [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Foreign currency derivatives | 3,027 | 3,801 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Foreign currency derivatives | 4,064 | 4,475 |
Level II [Member] | Other Contract [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other derivatives | 9,712 | 6,174 |
Level III [Member] | Other Contract [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other derivatives | $ 41,097 | $ 30,891 |
Fair Value Measurement (Carryin
Fair Value Measurement (Carrying Values And Fair Values Of The Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 3,101,138 | $ 3,099,257 |
Long-term Debt, Fair Value | 3,112,375 | 3,166,375 |
Term-A Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 737,774 | 737,140 |
Long-term Debt, Fair Value | 748,125 | 748,125 |
4.75% Senior Notes Due 2025 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 785,171 | 784,757 |
Long-term Debt, Fair Value | 771,000 | 793,000 |
5.00% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 984,591 | 984,056 |
Long-term Debt, Fair Value | 988,750 | 1,012,500 |
4.75% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 593,602 | 593,304 |
Long-term Debt, Fair Value | $ 604,500 | $ 612,750 |
Derivative Financial Instrume56
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 11,248 | $ 10,852 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 200,000 | |
Other Contract [Member] | Other Nonoperating Income (Expense) [Member] | ||
Derivative [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 11,687 | $ 11,117 |
Derivative Financial Instrume57
Derivative Financial Instruments (Fair Value Of Derivative Instruments Included In Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Foreign Exchange Forward [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | $ 785 | $ 943 |
Foreign Exchange Forward [Member] | Other Assets [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 2,241 | 2,858 |
Foreign Exchange Forward [Member] | Accrued Liabilities [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 1,069 | 1,223 |
Foreign Exchange Forward [Member] | Other Liabilities [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 2,995 | 3,252 |
Interest Rate Swap [Member] | Other Assets [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 1,298 | 1,444 |
Other Contract [Member] | Other Assets [Member] | ||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | $ 50,809 | $ 37,065 |
Derivative Financial Instrume58
Derivative Financial Instruments (Schedule Of Gains And Losses Related To Derivative Instruments) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest Expense [Member] | ||
Derivative [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ 2 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 0 | $ 321 |
Derivative Financial Instrume59
Derivative Financial Instruments (Schedule of Other Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 11,248 | $ 10,852 |
Interest Rate Swap [Member] | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (146) | 2 |
Foreign Exchange Forward [Member] | Other Nonoperating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (293) | (267) |
Other Contract [Member] | Other Nonoperating Income (Expense) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 11,687 | $ 11,117 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 56,879 | $ 73,082 |
Effective tax rate | 26.00% | 34.00% |
Federal statutory rate | 21.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 16,400 | $ 2,300 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 8,300 | |
Undistributed Earnings of Foreign Subsidiaries | (4,900) | (4,100) |
State income tax expense | 3,800 | 3,400 |
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Amount | $ 5,900 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 15,600 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (15,600) | |
Second component of tax deductible goodwill, net of tax | $ 300 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Increase (decrease) in contractual obligations not reflected in the balance sheet | $ (154.7) |
Contractual Obligation | 1,212 |
Loss Contingency, Damages Sought, Value | 280 |
Threatened Litigation [Member] | Minimum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Damages Sought, Value | $ 20 |
Equity Plans (Narrative) (Detai
Equity Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deemed repurchases of restricted stock/units | $ 15,354 | $ 12,796 |
Share-based compensation expense | $ 15,319 | $ 12,464 |
Total unrecognized share-based compensation costs, remaining period of recognition (in years) | 2 years 8 months | |
Common Class A [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
New shares of Company's Class A common stock issued | 418,069 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares surrendered to the Company for tax withholding | 289,555 | |
Total unrecognized share-based compensation costs | $ 133,800 | |
Restricted Stock Units (RSUs) [Member] | Common Class A [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares vested in period | 707,624 | |
2016 Employee Stock Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 684,737 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
2016 Employee Stock Plan [Member] | Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 195,028 | |
2016 Employee Stock Plan [Member] | Performance Vesting Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 537,403 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
2016 Employee Stock Plan [Member] | Performance Vesting Options [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |
2016 Employee Stock Plan [Member] | Performance Vesting Options [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% |
Redeemable Noncontrolling Int63
Redeemable Noncontrolling Interests Activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
December 31, 2017 | $ 218,604 |
Net earnings | 3,197 |
Distributions | (1,435) |
March 31, 2018 | $ 220,366 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transactions [Line Items] | ||
Aggregate voting power held by related party | 71.00% | |
Net revenues from related parties | $ 1.6 | $ 1.6 |
Related Party Transaction, Selling, General and Administrative Expenses | $ 0.5 | $ 0.6 |
Common Class A [Member] | ||
Related Party Transactions [Line Items] | ||
Percentage of common stock owned by related party | 2.00% |
Cash Flows (Summary Of Non-Cash
Cash Flows (Summary Of Non-Cash Activities And Other Supplemental Data) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Noncash Investing and Financing Items [Abstract] | ||
Treasury stock not yet settled | $ 9,980 | $ 5,988 |
Capital expenditures incurred but not yet paid | 6,070 | 3,362 |
Cash interest paid | 25,634 | 8,605 |
Income taxes paid, net | $ 6,243 | $ 7,498 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 2 |
Segment Information (Summary Of
Segment Information (Summary Of Continuing Operations By Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Advertising | $ 248,240 | $ 267,612 |
Distribution | 492,583 | 452,577 |
Consolidated revenues, net | 740,823 | 720,189 |
Operating income | 233,655 | 231,671 |
Share-based compensation expense | 15,319 | 12,464 |
Restructuring expense | 0 | 2,704 |
Depreciation and amortization | 20,354 | 23,493 |
Adjusted operating income (loss) | 269,328 | 270,332 |
Capital expenditures | 11,942 | 20,206 |
Operating Segments [Member] | National Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Advertising | 225,730 | 247,542 |
Distribution | 407,298 | 367,605 |
Consolidated revenues, net | 633,028 | 615,147 |
Operating income | 249,852 | 249,607 |
Share-based compensation expense | 12,527 | 9,908 |
Restructuring expense | 54 | |
Depreciation and amortization | 8,495 | 8,404 |
Adjusted operating income (loss) | 270,874 | 267,973 |
Capital expenditures | 2,148 | 5,135 |
Operating Segments [Member] | International And Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Advertising | 22,510 | 20,070 |
Distribution | 88,880 | 86,727 |
Consolidated revenues, net | 111,390 | 106,797 |
Operating income | (16,814) | (19,217) |
Share-based compensation expense | 2,792 | 2,556 |
Restructuring expense | 2,650 | |
Depreciation and amortization | 11,859 | 15,089 |
Adjusted operating income (loss) | (2,163) | 1,078 |
Capital expenditures | 9,794 | 15,071 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Advertising | 0 | 0 |
Distribution | (3,595) | (1,755) |
Consolidated revenues, net | (3,595) | (1,755) |
Operating income | 617 | 1,281 |
Share-based compensation expense | 0 | 0 |
Restructuring expense | 0 | |
Depreciation and amortization | 0 | 0 |
Adjusted operating income (loss) | 617 | 1,281 |
Capital expenditures | 0 | 0 |
Intersegment Eliminations [Member] | National Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated revenues, net | (2,535) | (1,724) |
Intersegment Eliminations [Member] | International And Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Consolidated revenues, net | $ (1,060) | $ (31) |
Segment Information (Summary 68
Segment Information (Summary Of Inter-Segment Eliminations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenues, net | $ 740,823 | $ 720,189 |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | (3,595) | (1,755) |
Intersegment Eliminations [Member] | National Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | (2,535) | (1,724) |
Intersegment Eliminations [Member] | International And Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | $ (1,060) | $ (31) |
Segment Information (Revenues b
Segment Information (Revenues by geographic region) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenues, net | $ 740,823 | $ 720,189 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 586,568 | 600,055 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 86,264 | 78,675 |
Other Geographic Locations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | $ 67,991 | $ 41,459 |
Segment Information (Long-lived
Segment Information (Long-lived assets by Geographic Location) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation | $ 185,440 | $ 183,514 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation | 138,912 | 136,203 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation | 28,449 | 28,261 |
Other Geographic Locations | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net of accumulated depreciation | $ 18,079 | $ 19,050 |
Condensed Consolidating Finan71
Condensed Consolidating Financial Statements (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 3,150,000 | $ 3,150,000 |
Parent Percentage of Ownership in Guarantor Subsidiaries | 100.00% | |
4.75% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% |
5.00% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% |
4.75% Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% |
Senior Notes [Member] | 4.75% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 600,000 | $ 600,000 |
Senior Notes [Member] | 5.00% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,000,000 | 1,000,000 |
Senior Notes [Member] | 4.75% Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 800,000 | $ 800,000 |
Condensed Consolidating Finan72
Condensed Consolidating Financial Statements (Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets: | |||||
Cash and cash equivalents | $ 529,200 | $ 558,783 | $ 403,648 | $ 481,389 | |
Accounts receivable, trade (including amounts due from related parties, net, less allowance for doubtful accounts) | 793,275 | 775,891 | |||
Current portion of program rights, net | 464,921 | 453,450 | |||
Prepaid expenses and other current assets | 102,058 | 91,726 | |||
Total current assets | 1,889,454 | $ 1,883,508 | 1,879,850 | ||
Property and equipment, net of accumulated depreciation | 185,440 | 183,514 | |||
Investment in affiliates | 0 | 0 | |||
Program rights, net | 1,279,589 | 1,319,279 | |||
Long-term intercompany notes receivable | 0 | 0 | |||
Deferred carriage fees, net | 27,172 | 29,924 | |||
Intangible assets, net | 452,395 | 457,242 | |||
Goodwill | 707,654 | 695,158 | |||
Deferred tax asset, net | 21,731 | 20,081 | |||
Other assets | 549,932 | 447,937 | |||
Total assets | 5,113,367 | 5,052,884 | 5,032,985 | ||
Current Liabilities: | |||||
Accounts payable | 96,816 | 102,197 | |||
Accrued liabilities and intercompany payable | 235,301 | 263,076 | |||
Current portion of program rights obligations | 326,862 | 327,549 | |||
Deferred revenue | 51,916 | 46,433 | |||
Current portion of long-term debt | 0 | ||||
Current portion of capital lease obligations | 4,771 | 4,847 | |||
Total current liabilities | 715,666 | 744,937 | 744,102 | ||
Program rights obligations | 491,527 | 534,980 | |||
Long-term debt | 3,101,138 | 3,099,257 | |||
Capital lease obligations | 25,233 | 26,277 | |||
Deferred tax liability, net | 145,159 | 109,698 | |||
Other liabilities and intercompany notes payable | 153,167 | 136,122 | |||
Total liabilities | 4,631,890 | $ 4,657,551 | 4,650,436 | ||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 220,366 | 218,604 | |||
Stockholders' equity (deficiency): | |||||
AMC Networks stockholders' equity | 230,744 | 134,944 | |||
Non-redeemable noncontrolling interests | 30,367 | 29,001 | |||
Total stockholders' equity | 261,111 | 163,945 | |||
Total liabilities and stockholders' equity | 5,113,367 | 5,032,985 | |||
Consolidation, Eliminations [Member] | |||||
Current Assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Accounts receivable, trade (including amounts due from related parties, net, less allowance for doubtful accounts) | 0 | 0 | |||
Current portion of program rights, net | 0 | 0 | |||
Prepaid expenses and other current assets | (122,335) | (104,389) | |||
Total current assets | (122,335) | (104,389) | |||
Property and equipment, net of accumulated depreciation | 0 | 0 | |||
Investment in affiliates | (4,630,009) | (4,377,625) | |||
Program rights, net | 0 | 0 | |||
Long-term intercompany notes receivable | (490,723) | (490,375) | |||
Deferred carriage fees, net | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Deferred tax asset, net | 0 | 0 | |||
Other assets | 0 | ||||
Total assets | (5,243,067) | (4,972,389) | |||
Current Liabilities: | |||||
Accounts payable | 0 | 0 | |||
Accrued liabilities and intercompany payable | (122,335) | (104,389) | |||
Current portion of program rights obligations | 0 | 0 | |||
Deferred revenue | 0 | 0 | |||
Current portion of long-term debt | 0 | ||||
Current portion of capital lease obligations | 0 | 0 | |||
Total current liabilities | (122,335) | (104,389) | |||
Program rights obligations | 0 | 0 | |||
Long-term debt | 0 | 0 | |||
Capital lease obligations | 0 | 0 | |||
Deferred tax liability, net | 0 | 0 | |||
Other liabilities and intercompany notes payable | (490,723) | (490,375) | |||
Total liabilities | (613,058) | (594,764) | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 0 | 0 | |||
Stockholders' equity (deficiency): | |||||
AMC Networks stockholders' equity | (4,630,009) | (4,377,625) | |||
Non-redeemable noncontrolling interests | 0 | 0 | |||
Total stockholders' equity | (4,630,009) | (4,377,625) | |||
Total liabilities and stockholders' equity | (5,243,067) | (4,972,389) | |||
Parent Company [Member] | |||||
Current Assets: | |||||
Cash and cash equivalents | 184 | 320 | 523 | 565 | |
Accounts receivable, trade (including amounts due from related parties, net, less allowance for doubtful accounts) | 0 | 0 | |||
Current portion of program rights, net | 0 | 0 | |||
Prepaid expenses and other current assets | 1,419 | 3,760 | |||
Total current assets | 1,603 | 4,080 | |||
Property and equipment, net of accumulated depreciation | 0 | 0 | |||
Investment in affiliates | 3,616,931 | 3,443,013 | |||
Program rights, net | 0 | 0 | |||
Long-term intercompany notes receivable | 0 | 0 | |||
Deferred carriage fees, net | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Deferred tax asset, net | 0 | 0 | |||
Other assets | 0 | 0 | |||
Total assets | 3,618,534 | 3,447,093 | |||
Current Liabilities: | |||||
Accounts payable | 32 | 350 | |||
Accrued liabilities and intercompany payable | 86,500 | 51,692 | |||
Current portion of program rights obligations | 0 | 0 | |||
Deferred revenue | 0 | 0 | |||
Current portion of long-term debt | 0 | ||||
Current portion of capital lease obligations | 0 | 0 | |||
Total current liabilities | 86,532 | 52,042 | |||
Program rights obligations | 0 | 0 | |||
Long-term debt | 3,101,138 | 3,099,257 | |||
Capital lease obligations | 0 | 0 | |||
Deferred tax liability, net | 150,247 | 114,717 | |||
Other liabilities and intercompany notes payable | 49,873 | 46,133 | |||
Total liabilities | 3,387,790 | 3,312,149 | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 0 | 0 | |||
Stockholders' equity (deficiency): | |||||
AMC Networks stockholders' equity | 230,744 | 134,944 | |||
Non-redeemable noncontrolling interests | 0 | 0 | |||
Total stockholders' equity | 230,744 | 134,944 | |||
Total liabilities and stockholders' equity | 3,618,534 | 3,447,093 | |||
Guarantor Subsidiaries [Member] | |||||
Current Assets: | |||||
Cash and cash equivalents | 354,419 | 391,248 | 262,256 | 320,950 | |
Accounts receivable, trade (including amounts due from related parties, net, less allowance for doubtful accounts) | 588,633 | 581,270 | |||
Current portion of program rights, net | 315,628 | 304,149 | |||
Prepaid expenses and other current assets | 212,382 | 183,815 | |||
Total current assets | 1,471,062 | 1,460,482 | |||
Property and equipment, net of accumulated depreciation | 138,866 | 136,032 | |||
Investment in affiliates | 1,013,078 | 934,612 | |||
Program rights, net | 1,092,691 | 1,128,021 | |||
Long-term intercompany notes receivable | 490,380 | 489,939 | |||
Deferred carriage fees, net | 26,008 | 29,346 | |||
Intangible assets, net | 168,117 | 170,554 | |||
Goodwill | 66,282 | 66,609 | |||
Deferred tax asset, net | 0 | 0 | |||
Other assets | 173,988 | 142,115 | |||
Total assets | 4,640,472 | 4,557,710 | |||
Current Liabilities: | |||||
Accounts payable | 47,245 | 50,282 | |||
Accrued liabilities and intercompany payable | 121,433 | 179,003 | |||
Current portion of program rights obligations | 255,744 | 262,004 | |||
Deferred revenue | 34,738 | 27,530 | |||
Current portion of long-term debt | 0 | ||||
Current portion of capital lease obligations | 3,001 | 2,939 | |||
Total current liabilities | 462,161 | 521,758 | |||
Program rights obligations | 470,626 | 511,996 | |||
Long-term debt | 0 | 0 | |||
Capital lease obligations | 2,963 | 3,745 | |||
Deferred tax liability, net | 0 | 0 | |||
Other liabilities and intercompany notes payable | 87,791 | 77,198 | |||
Total liabilities | 1,023,541 | 1,114,697 | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 0 | 0 | |||
Stockholders' equity (deficiency): | |||||
AMC Networks stockholders' equity | 3,616,931 | 3,443,013 | |||
Non-redeemable noncontrolling interests | 0 | 0 | |||
Total stockholders' equity | 3,616,931 | 3,443,013 | |||
Total liabilities and stockholders' equity | 4,640,472 | 4,557,710 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Current Assets: | |||||
Cash and cash equivalents | 174,597 | 167,215 | $ 140,869 | $ 159,874 | |
Accounts receivable, trade (including amounts due from related parties, net, less allowance for doubtful accounts) | 204,642 | 194,621 | |||
Current portion of program rights, net | 149,293 | 149,301 | |||
Prepaid expenses and other current assets | 10,592 | 8,540 | |||
Total current assets | 539,124 | 519,677 | |||
Property and equipment, net of accumulated depreciation | 46,574 | 47,482 | |||
Investment in affiliates | 0 | 0 | |||
Program rights, net | 186,898 | 191,258 | |||
Long-term intercompany notes receivable | 343 | 436 | |||
Deferred carriage fees, net | 1,164 | 578 | |||
Intangible assets, net | 284,278 | 286,688 | |||
Goodwill | 641,372 | 628,549 | |||
Deferred tax asset, net | 21,731 | 20,081 | |||
Other assets | 375,944 | 305,822 | |||
Total assets | 2,097,428 | 2,000,571 | |||
Current Liabilities: | |||||
Accounts payable | 49,539 | 51,565 | |||
Accrued liabilities and intercompany payable | 149,703 | 136,770 | |||
Current portion of program rights obligations | 71,118 | 65,545 | |||
Deferred revenue | 17,178 | 18,903 | |||
Current portion of long-term debt | 0 | ||||
Current portion of capital lease obligations | 1,770 | 1,908 | |||
Total current liabilities | 289,308 | 274,691 | |||
Program rights obligations | 20,901 | 22,984 | |||
Long-term debt | 0 | 0 | |||
Capital lease obligations | 22,270 | 22,532 | |||
Deferred tax liability, net | (5,088) | (5,019) | |||
Other liabilities and intercompany notes payable | 506,226 | 503,166 | |||
Total liabilities | 833,617 | 818,354 | |||
Commitments and contingencies | |||||
Redeemable noncontrolling interests | 220,366 | 218,604 | |||
Stockholders' equity (deficiency): | |||||
AMC Networks stockholders' equity | 1,013,078 | 934,612 | |||
Non-redeemable noncontrolling interests | 30,367 | 29,001 | |||
Total stockholders' equity | 1,043,445 | 963,613 | |||
Total liabilities and stockholders' equity | $ 2,097,428 | $ 2,000,571 |
Condensed Consolidating Finan73
Condensed Consolidating Financial Statements (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||
Revenues, net | $ 740,823 | $ 720,189 |
Operating expenses | ||
Technical and operating (excluding depreciation and amortization) | 320,365 | 298,612 |
Selling, general and administrative | 166,449 | 163,709 |
Restructuring expense | 0 | 2,704 |
Depreciation and amortization | 20,354 | 23,493 |
Total operating expenses | 507,168 | 488,518 |
Operating income | 233,655 | 231,671 |
Other income (expense) | ||
Interest expense, net | (33,186) | (27,007) |
Share of affiliates' income | 0 | 0 |
Miscellaneous, net | 16,946 | 11,049 |
Nonoperating Income (Expense) | (16,240) | (15,958) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 217,415 | 215,713 |
Income tax expense | (56,879) | (73,082) |
Net income including noncontrolling interests | 160,536 | 142,631 |
Net Income (Loss) Attributable to Noncontrolling Interest | (3,666) | (6,414) |
Net Income (Loss) Attributable to Parent | 156,870 | 136,217 |
Consolidation, Eliminations [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues, net | (4,480) | (2,325) |
Operating expenses | ||
Technical and operating (excluding depreciation and amortization) | (778) | (759) |
Selling, general and administrative | (3,699) | (1,451) |
Restructuring expense | 0 | |
Depreciation and amortization | 0 | 0 |
Total operating expenses | (4,477) | (2,210) |
Operating income | (3) | (115) |
Other income (expense) | ||
Interest expense, net | 0 | 0 |
Share of affiliates' income | (264,980) | (238,919) |
Miscellaneous, net | 3 | 115 |
Nonoperating Income (Expense) | (264,977) | (238,804) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (264,980) | (238,919) |
Income tax expense | 0 | 0 |
Net income including noncontrolling interests | (264,980) | (238,919) |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 |
Net Income (Loss) Attributable to Parent | (264,980) | (238,919) |
Parent Company [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues, net | 0 | 0 |
Operating expenses | ||
Technical and operating (excluding depreciation and amortization) | 0 | 0 |
Selling, general and administrative | 0 | 0 |
Restructuring expense | 0 | |
Depreciation and amortization | 0 | 0 |
Total operating expenses | 0 | 0 |
Operating income | 0 | 0 |
Other income (expense) | ||
Interest expense, net | (36,907) | (29,412) |
Share of affiliates' income | 247,482 | 235,774 |
Miscellaneous, net | (206) | (112) |
Nonoperating Income (Expense) | 210,369 | 206,250 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 210,369 | 206,250 |
Income tax expense | (53,499) | (70,033) |
Net income including noncontrolling interests | 156,870 | 136,217 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 |
Net Income (Loss) Attributable to Parent | 156,870 | 136,217 |
Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues, net | 574,917 | 579,382 |
Operating expenses | ||
Technical and operating (excluding depreciation and amortization) | 222,621 | 221,754 |
Selling, general and administrative | 122,059 | 119,681 |
Restructuring expense | 2,704 | |
Depreciation and amortization | 10,804 | 10,204 |
Total operating expenses | 355,484 | 354,343 |
Operating income | 219,433 | 225,039 |
Other income (expense) | ||
Interest expense, net | 11,897 | 9,823 |
Share of affiliates' income | 17,498 | 3,145 |
Miscellaneous, net | 734 | 431 |
Nonoperating Income (Expense) | 30,129 | 13,399 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 249,562 | 238,438 |
Income tax expense | (2,080) | (2,664) |
Net income including noncontrolling interests | 247,482 | 235,774 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 |
Net Income (Loss) Attributable to Parent | 247,482 | 235,774 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Revenues, net | 170,386 | 143,132 |
Operating expenses | ||
Technical and operating (excluding depreciation and amortization) | 98,522 | 77,617 |
Selling, general and administrative | 48,089 | 45,479 |
Restructuring expense | 0 | |
Depreciation and amortization | 9,550 | 13,289 |
Total operating expenses | 156,161 | 136,385 |
Operating income | 14,225 | 6,747 |
Other income (expense) | ||
Interest expense, net | (8,176) | (7,418) |
Share of affiliates' income | 0 | 0 |
Miscellaneous, net | 16,415 | 10,615 |
Nonoperating Income (Expense) | 8,239 | 3,197 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 22,464 | 9,944 |
Income tax expense | (1,300) | (385) |
Net income including noncontrolling interests | 21,164 | 9,559 |
Net Income (Loss) Attributable to Noncontrolling Interest | (3,666) | (6,414) |
Net Income (Loss) Attributable to Parent | $ 17,498 | $ 3,145 |
Condensed Consolidating Finan74
Condensed Consolidating Financial Statements (Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net income (loss) including noncontrolling interest | $ 160,536 | $ 142,631 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 18,805 | 9,864 |
Unrealized gain on interest rate swaps | 0 | 319 |
Unrealized gain on available for sale securities | 0 | 4,021 |
Other comprehensive income, before income taxes | 18,805 | 14,204 |
Income tax expense | 0 | (1,597) |
Other comprehensive income, net of income taxes | 18,805 | 12,607 |
Comprehensive income | 179,341 | 155,238 |
Comprehensive income attributable to noncontrolling interests | (4,563) | (6,805) |
Comprehensive income attributable to AMC Networks' stockholders | 174,778 | 148,433 |
Consolidation, Eliminations [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income (loss) including noncontrolling interest | (264,980) | (238,919) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (18,805) | (9,864) |
Unrealized gain on interest rate swaps | 0 | |
Unrealized gain on available for sale securities | 0 | |
Other comprehensive income, before income taxes | (9,864) | |
Income tax expense | 0 | |
Other comprehensive income, net of income taxes | (18,805) | (9,864) |
Comprehensive income | (283,785) | (248,783) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to AMC Networks' stockholders | (283,785) | (248,783) |
Parent Company [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income (loss) including noncontrolling interest | 156,870 | 136,217 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 18,805 | 9,864 |
Unrealized gain on interest rate swaps | 319 | |
Unrealized gain on available for sale securities | 4,021 | |
Other comprehensive income, before income taxes | 14,204 | |
Income tax expense | (1,597) | |
Other comprehensive income, net of income taxes | 18,805 | 12,607 |
Comprehensive income | 175,675 | 148,824 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to AMC Networks' stockholders | 175,675 | 148,824 |
Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income (loss) including noncontrolling interest | 247,482 | 235,774 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 0 | 0 |
Unrealized gain on interest rate swaps | 0 | |
Unrealized gain on available for sale securities | 0 | |
Other comprehensive income, before income taxes | 0 | |
Income tax expense | 0 | |
Other comprehensive income, net of income taxes | 0 | 0 |
Comprehensive income | 247,482 | 235,774 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to AMC Networks' stockholders | 247,482 | 235,774 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net income (loss) including noncontrolling interest | 21,164 | 9,559 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 18,805 | 9,864 |
Unrealized gain on interest rate swaps | 0 | |
Unrealized gain on available for sale securities | 0 | |
Other comprehensive income, before income taxes | 9,864 | |
Income tax expense | 0 | |
Other comprehensive income, net of income taxes | 18,805 | 9,864 |
Comprehensive income | 39,969 | 19,423 |
Comprehensive income attributable to noncontrolling interests | (4,563) | (6,805) |
Comprehensive income attributable to AMC Networks' stockholders | $ 35,406 | $ 12,618 |
Condensed Consolidating Finan75
Condensed Consolidating Financial Statements (Cash Flow) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net cash provided by operating activities | $ 116,972 | $ 144,870 |
Cash flows from investing activities: | ||
Capital expenditures | (11,942) | (20,206) |
Return of capital from investees | 172 | 0 |
Investment in and loans to investees | (42,318) | (28,000) |
Increase to investment in affiliates | 0 | 0 |
Net cash used in investing activities | (54,088) | (48,206) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | 0 | (55,500) |
Deemed repurchases of restricted stock units | (15,354) | (12,796) |
Purchase of treasury stock | (83,637) | (91,423) |
Principal payments on capital lease obligations | (1,406) | (1,401) |
Distributions to noncontrolling interests | (1,435) | (11,712) |
Net cash used in financing activities | (101,832) | (172,832) |
Net decrease in cash and cash equivalents from operations | (38,948) | (76,168) |
Effect of exchange rate changes on cash and cash equivalents | 9,365 | (1,573) |
Cash and cash equivalents at end of period | 529,200 | 403,648 |
Consolidation, Eliminations [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by operating activities | (264,998) | (239,207) |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Return of capital from investees | 0 | |
Investment in and loans to investees | 0 | 0 |
Increase to investment in affiliates | 203,739 | 94,908 |
Net cash used in investing activities | 203,739 | 94,908 |
Cash flows from financing activities: | ||
Principal payments on long-term debt | 0 | |
Deemed repurchases of restricted stock units | 0 | 0 |
Purchase of treasury stock | 0 | 0 |
Principal payments on capital lease obligations | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Net cash used in financing activities | 0 | 0 |
Net decrease in cash and cash equivalents from operations | (61,259) | (144,299) |
Effect of exchange rate changes on cash and cash equivalents | 61,259 | 144,299 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by operating activities | 234,947 | 224,091 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Return of capital from investees | 0 | |
Investment in and loans to investees | 0 | 0 |
Increase to investment in affiliates | (141,109) | (57,926) |
Net cash used in investing activities | (141,109) | (57,926) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | (55,500) | |
Deemed repurchases of restricted stock units | (15,354) | (12,796) |
Purchase of treasury stock | (83,637) | (91,423) |
Principal payments on capital lease obligations | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Net cash used in financing activities | (98,991) | (159,719) |
Net decrease in cash and cash equivalents from operations | (5,153) | 6,446 |
Effect of exchange rate changes on cash and cash equivalents | 5,017 | (6,488) |
Cash and cash equivalents at end of period | 184 | 523 |
Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by operating activities | 154,495 | 138,889 |
Cash flows from investing activities: | ||
Capital expenditures | (11,040) | (15,645) |
Return of capital from investees | 0 | |
Investment in and loans to investees | 0 | 0 |
Increase to investment in affiliates | (129,821) | (36,982) |
Net cash used in investing activities | (140,861) | (52,627) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | 0 | |
Deemed repurchases of restricted stock units | 0 | 0 |
Purchase of treasury stock | 0 | 0 |
Principal payments on capital lease obligations | (723) | (657) |
Distributions to noncontrolling interests | 0 | 0 |
Net cash used in financing activities | (723) | (657) |
Net decrease in cash and cash equivalents from operations | 12,911 | 85,605 |
Effect of exchange rate changes on cash and cash equivalents | (49,740) | (144,299) |
Cash and cash equivalents at end of period | 354,419 | 262,256 |
Non-Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by operating activities | (7,472) | 21,097 |
Cash flows from investing activities: | ||
Capital expenditures | (902) | (4,561) |
Return of capital from investees | 172 | |
Investment in and loans to investees | (42,318) | (28,000) |
Increase to investment in affiliates | 67,191 | 0 |
Net cash used in investing activities | 24,143 | (32,561) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | 0 | |
Deemed repurchases of restricted stock units | 0 | 0 |
Purchase of treasury stock | 0 | 0 |
Principal payments on capital lease obligations | (683) | (744) |
Distributions to noncontrolling interests | (1,435) | (11,712) |
Net cash used in financing activities | (2,118) | (12,456) |
Net decrease in cash and cash equivalents from operations | 14,553 | (23,920) |
Effect of exchange rate changes on cash and cash equivalents | (7,171) | 4,915 |
Cash and cash equivalents at end of period | $ 174,597 | $ 140,869 |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) $ in Millions | Apr. 20, 2018USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Business Acquisition, Transaction Costs | $ 48.5 |