Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-35106 | |
Entity Registrant Name | AMC Networks Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-5403694 | |
Entity Address, Address Line One | 11 Penn Plaza, | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 212 | |
Local Phone Number | 324-8500 | |
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | |
Trading Symbol | AMCX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001514991 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 31,434,451 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,484,408 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 817,344 | $ 892,221 |
Accounts receivable, trade (less allowance for doubtful accounts of $8,028 and $8,030) | 744,432 | 815,444 |
Current portion of program rights, net | 13,794 | 10,068 |
Prepaid expenses and other current assets | 429,899 | 282,453 |
Total current assets | 2,005,469 | 2,000,186 |
Property and equipment, net of accumulated depreciation of $313,611 and $286,133 | 213,940 | 225,791 |
Program rights, net | 1,941,899 | 1,731,838 |
Intangible assets, net | 374,348 | 399,434 |
Goodwill | 684,236 | 709,344 |
Deferred tax assets, net | 12,280 | 11,334 |
Operating lease right-of-use assets | 111,673 | 125,866 |
Other assets | 449,794 | 545,153 |
Total assets | 5,793,639 | 5,748,946 |
Current Liabilities: | ||
Accounts payable | 153,178 | 173,207 |
Accrued liabilities | 298,807 | 340,407 |
Current portion of program rights obligations | 299,830 | 307,054 |
Deferred revenue | 243,734 | 167,071 |
Current portion of long-term debt | 33,750 | 33,750 |
Current portion of lease obligations | 37,076 | 36,596 |
Total current liabilities | 1,066,375 | 1,058,085 |
Program rights obligations | 187,197 | 218,321 |
Long-term debt, net | 2,791,673 | 2,804,720 |
Lease obligations | 132,548 | 151,839 |
Deferred tax liabilities, net | 197,977 | 163,600 |
Other liabilities | 133,697 | 165,860 |
Total liabilities | 4,509,467 | 4,562,425 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 270,726 | 283,849 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 45,000 shares authorized; none issued | 0 | 0 |
Paid-in capital | 341,403 | 347,971 |
Accumulated earnings | 2,285,664 | 2,098,047 |
Treasury stock, at cost (34,593 and 34,593 shares Class A Common Stock, respectively) | (1,419,882) | (1,419,882) |
Accumulated other comprehensive loss | (243,292) | (175,818) |
Total AMC Networks stockholders' equity | 964,668 | 851,088 |
Non-redeemable noncontrolling interests | 48,778 | 51,584 |
Total stockholders' equity | 1,013,446 | 902,672 |
Total liabilities and stockholders' equity | 5,793,639 | 5,748,946 |
Class A Common Stock | ||
Stockholders' equity: | ||
Common stock | 660 | 655 |
Class B Common Stock | ||
Stockholders' equity: | ||
Common stock | $ 115 | $ 115 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts receivable, trade, allowance for doubtful accounts | $ 8,028 | $ 8,030 |
Property and equipment, accumulated depreciation | $ 313,611 | $ 286,133 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 45,000,000 | 45,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 360,000,000 | 360,000,000 |
Common stock, shares issued (in shares) | 66,027,000 | 65,485,000 |
Common stock, shares outstanding (in shares) | 31,434,000 | 30,892,000 |
Treasury stock (in shares) | 34,593,000 | 34,593,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 11,484,000 | 11,484,000 |
Common stock, shares outstanding (in shares) | 11,484,000 | 11,484,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenues, net | $ 738,025,000 | $ 771,392,000 | $ 1,450,182,000 | $ 1,463,133,000 |
Operating expenses: | ||||
Technical and operating (excluding depreciation and amortization) | 325,772,000 | 338,841,000 | 610,009,000 | 619,413,000 |
Selling, general and administrative | 231,819,000 | 198,618,000 | 462,472,000 | 390,153,000 |
Depreciation and amortization | 27,231,000 | 22,604,000 | 49,821,000 | 47,850,000 |
Impairment and other charges | 0 | 142,918,000 | 0 | 158,973,000 |
Restructuring and other related charges | 0 | 155,000 | 0 | 8,780,000 |
Total operating expenses | 584,822,000 | 703,136,000 | 1,122,302,000 | 1,225,169,000 |
Operating income | 153,203,000 | 68,256,000 | 327,880,000 | 237,964,000 |
Other income (expense): | ||||
Interest expense | (31,980,000) | (31,519,000) | (62,777,000) | (66,261,000) |
Interest income | 2,467,000 | 3,008,000 | 4,927,000 | 5,350,000 |
Loss on extinguishment of debt | 0 | 0 | 0 | (22,074,000) |
Miscellaneous, net | (742,000) | 14,174,000 | 5,086,000 | 19,580,000 |
Total other expense | (30,255,000) | (14,337,000) | (52,764,000) | (63,405,000) |
Income from operations before income taxes | 122,948,000 | 53,919,000 | 275,116,000 | 174,559,000 |
Income tax expense | (33,028,000) | (11,321,000) | (74,662,000) | (37,236,000) |
Net income including noncontrolling interests | 89,920,000 | 42,598,000 | 200,454,000 | 137,323,000 |
Net income attributable to noncontrolling interests | (6,491,000) | (6,713,000) | (12,837,000) | (14,417,000) |
Net income attributable to AMC Networks' stockholders | $ 83,429,000 | $ 35,885,000 | $ 187,617,000 | $ 122,906,000 |
Net income per share attributable to AMC Networks' stockholders: | ||||
Basic (in dollars per share) | $ 1.93 | $ 0.84 | $ 4.36 | $ 2.91 |
Diluted (in dollars per share) | $ 1.91 | $ 0.83 | $ 4.29 | $ 2.84 |
Weighted average common shares: | ||||
Basic (in shares) | 43,192 | 42,481 | 42,987 | 42,207 |
Diluted (in shares) | 43,679 | 43,382 | 43,697 | 43,277 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income including noncontrolling interests | $ 89,920 | $ 42,598 | $ 200,454 | $ 137,323 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (51,740) | 7,675 | (70,333) | (14,349) |
Unrealized gain on interest rate swaps | 0 | 598 | 0 | 1,208 |
Other comprehensive income (loss), before income taxes | (51,740) | 8,273 | (70,333) | (13,141) |
Income tax expense | 0 | (141) | 0 | (284) |
Other comprehensive income (loss), net of income taxes | (51,740) | 8,132 | (70,333) | (13,425) |
Comprehensive income | 38,180 | 50,730 | 130,121 | 123,898 |
Comprehensive income attributable to noncontrolling interests | (4,463) | (6,775) | (9,978) | (14,209) |
Comprehensive income attributable to AMC Networks' stockholders | $ 33,717 | $ 43,955 | $ 120,143 | $ 109,689 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Paid-in Capital | Accumulated Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | AMC Networks Stockholders’ Equity | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2020 | $ 643,101 | $ 646 | $ 115 | $ 323,425 | $ 1,847,451 | $ (1,419,882) | $ (134,950) | $ 616,805 | $ 26,296 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to AMC Networks’ stockholders | 122,906 | 122,906 | 122,906 | |||||||
Net income attributable to non-redeemable noncontrolling interests | 4,278 | 4,278 | ||||||||
Transfer from redeemable noncontrolling interest | 18,367 | 18,367 | ||||||||
Contributions from noncontrolling member | 1,140 | 1,140 | ||||||||
Other comprehensive income (loss) | (13,425) | (13,217) | (13,217) | (208) | ||||||
Share-based compensation expenses | 29,708 | 29,708 | 29,708 | |||||||
Proceeds from the exercise of stock options | 9,795 | 9,795 | 9,795 | |||||||
Net share issuances under employee stock plans | (32,328) | 7 | (32,335) | (32,328) | ||||||
Ending Balance at Jun. 30, 2021 | 783,542 | 653 | 115 | 330,593 | 1,970,357 | (1,419,882) | (148,167) | 733,669 | 49,873 | |
Beginning Balance at Mar. 31, 2021 | 721,561 | 653 | 115 | 314,331 | 1,934,472 | (1,419,882) | (156,237) | 673,452 | 48,109 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to AMC Networks’ stockholders | 35,885 | 35,885 | 35,885 | |||||||
Net income attributable to non-redeemable noncontrolling interests | 3,143 | 3,143 | ||||||||
Distribution to noncontrolling member | (1,441) | (1,441) | ||||||||
Other comprehensive income (loss) | 8,132 | 8,070 | 8,070 | 62 | ||||||
Share-based compensation expenses | 16,262 | 16,262 | 16,262 | |||||||
Ending Balance at Jun. 30, 2021 | 783,542 | 653 | 115 | 330,593 | 1,970,357 | (1,419,882) | (148,167) | 733,669 | 49,873 | |
Beginning Balance at Dec. 31, 2021 | 902,672 | 655 | 115 | 347,971 | 2,098,047 | (1,419,882) | (175,818) | 851,088 | 51,584 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to AMC Networks’ stockholders | 187,617 | 187,617 | 187,617 | |||||||
Net income attributable to non-redeemable noncontrolling interests | 4,309 | 4,309 | ||||||||
Purchase of noncontrolling interests, net of tax | (4,363) | (3,066) | (3,066) | (1,297) | ||||||
Transfer from redeemable noncontrolling interest | 18,400 | |||||||||
Distribution to noncontrolling member | (2,959) | (2,959) | ||||||||
Other comprehensive income (loss) | (70,333) | (67,474) | (67,474) | (2,859) | ||||||
Share-based compensation expenses | 16,812 | 16,812 | 16,812 | |||||||
Net share issuances under employee stock plans | (20,309) | $ 5 | (20,314) | (20,309) | ||||||
Ending Balance at Jun. 30, 2022 | 1,013,446 | 660 | 115 | 341,403 | 2,285,664 | (1,419,882) | (243,292) | 964,668 | 48,778 | |
Beginning Balance at Mar. 31, 2022 | 976,978 | 660 | 115 | 335,803 | 2,202,235 | (1,419,882) | (193,580) | 925,351 | 51,627 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to AMC Networks’ stockholders | 83,429 | 83,429 | 83,429 | |||||||
Net income attributable to non-redeemable noncontrolling interests | 1,870 | 1,870 | ||||||||
Purchase of noncontrolling interests, net of tax | (4,363) | (3,066) | (3,066) | (1,297) | ||||||
Distribution to noncontrolling member | (1,394) | (1,394) | ||||||||
Other comprehensive income (loss) | (51,740) | (49,712) | (49,712) | (2,028) | ||||||
Share-based compensation expenses | 8,683 | 8,683 | 8,683 | |||||||
Net share issuances under employee stock plans | (17) | (17) | (17) | |||||||
Ending Balance at Jun. 30, 2022 | $ 1,013,446 | $ 660 | $ 115 | $ 341,403 | $ 2,285,664 | $ (1,419,882) | $ (243,292) | $ 964,668 | $ 48,778 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $ 200,454 | $ 137,323 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 49,821 | 47,850 |
Impairment and other charges | 0 | 158,973 |
Share-based compensation expenses related to equity classified awards | 16,812 | 29,709 |
Non-cash restructuring and other related charges | 0 | 4,329 |
Amortization of program rights | 396,890 | 333,348 |
Amortization of deferred carriage fees | 16,902 | 7,633 |
Unrealized foreign currency transaction gain | (554) | (10,609) |
Amortization of deferred financing costs and discounts on indebtedness | 3,828 | 3,923 |
Loss on extinguishment of debt | 0 | 22,074 |
Bad debt expense | 1,165 | 3,530 |
Deferred income taxes | 34,115 | 16,487 |
Gain on investments | (4,084) | (4,554) |
Other, net | (4,955) | (7,776) |
Changes in assets and liabilities: | ||
Accounts receivable, trade (including amounts due from related parties, net) | 58,410 | 7,913 |
Prepaid expenses and other assets | (50,853) | (18,233) |
Program rights and obligations, net | (667,492) | (583,480) |
Income taxes payable | 2,241 | (5,472) |
Deferred revenue | 44,874 | 1,203 |
Deferred carriage fees, net | (11,686) | (27,861) |
Accounts payable, accrued liabilities and other liabilities | (68,714) | 14,857 |
Net cash provided by operating activities | 17,174 | 131,167 |
Cash flows from investing activities: | ||
Capital expenditures | (21,554) | (18,849) |
Return of capital from investees | 1,771 | 0 |
Payments for acquisition of a business, net of cash acquired | 0 | (19,072) |
Acquisition of investments | 0 | (28,397) |
Cash paid on distribution of business | 0 | (7,052) |
Principal payment received on loan to investee | 0 | 20,000 |
Proceeds from sale of investments | 9,854 | 95,370 |
Net cash provided by (used in) investing activities | (9,929) | 42,000 |
Cash flows from financing activities: | ||
Proceeds from the issuance of long-term debt | 0 | 984,500 |
Principal payments on long-term debt | (16,875) | (1,015,000) |
Deemed repurchases of restricted stock units | (20,309) | (32,327) |
Proceeds from stock option exercises | 0 | 9,795 |
Principal payments on finance lease obligations | (1,663) | (1,984) |
Contributions from noncontrolling interests | 0 | 2,702 |
Distributions to noncontrolling interests | (25,139) | (11,912) |
Purchase of noncontrolling interests | (2,500) | 0 |
Net cash used in financing activities | (66,486) | (64,226) |
Net increase (decrease) in cash and cash equivalents from operations | (59,241) | 108,941 |
Effect of exchange rate changes on cash and cash equivalents | (15,636) | (16,741) |
Cash and cash equivalents at beginning of period | 892,221 | 888,526 |
Cash and cash equivalents at end of period | $ 817,344 | $ 980,726 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
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," "we," "us," or "our") own and operate entertainment businesses and assets. The Company is comprised of two operating segments: • Domestic Operations: Includes our programming services and AMC Broadcasting & Technology. Our programming services consist of our five national programming networks, our streaming services, our AMC Studios operation and IFC Films. Our national programming networks are AMC, WE tv, BBC AMERICA, IFC, and SundanceTV. Our streaming services consist of our global targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE), AMC+ and other streaming initiatives. Our AMC Studios operation produces original programming for our programming networks and also licenses such programming worldwide and IFC Films is our film distribution business. AMC Networks Broadcasting & Technology, our technical services business, primarily services most of the national programming networks. • International and Other : Includes AMC Networks International ("AMCNI"), our international programming businesses consisting of a portfolio of channels around the world, and 25/7 Media, our production services business. Basis of Presentation Principles of Consolidation The consolidated financial statements include the accounts of AMC Networks and its subsidiaries in which a controlling voting interest is maintained or variable interest entities ("VIEs") in which the Company has determined it is the primary beneficiary. 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, 2021 contained in the Company's Annual Report on Form 10-K ("2021 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, 2022. Risks and Uncertainties The Company continues to monitor the ongoing impact of the COVID-19 pandemic on all aspects of its business. The Company cannot reasonably predict the continuing impact of the COVID-19 pandemic, including the extent of any adverse impact on our business, results of operations and financial condition, which will depend on, among other things, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the effectiveness of actions taken to contain or mitigate the outbreak, the acceptance, safety and efficacy of vaccines, and global economic conditions. The Company does not expect the COVID-19 pandemic and its related economic impact to affect its liquidity position or its ongoing ability to meet the covenants in its debt instruments. 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 the useful lives and methodologies used to amortize and assess recoverability of program rights, the estimated useful lives of intangible assets and the valuation and recoverability of goodwill and intangible assets. Reclassifications Certain reclassifications were made to the prior period amounts to conform to the current period presentation. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Transaction Price Allocated to Future Performance Obligations As of June 30, 2022, other than contracts for which the Company has applied the practical expedients, the aggregate amount of transaction price allocated to future performance obligations was not material to our consolidated revenues. Contract Balances from Contracts with Customers The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers. (In thousands) June 30, 2022 December 31, 2021 Balances from contracts with customers: Accounts receivable (including long-term receivables within Other assets) $ 986,278 $ 1,106,225 Contract assets, short-term (included in Prepaid expenses and other current assets) 169,653 69,351 Contract assets, long-term (included in Other assets) 2,086 29,323 Contract liabilities, short-term (Deferred revenue) 243,734 167,071 Contract liabilities, long-term (Deferred revenue included in Other liabilities) 58 31,832 Revenue recognized for the six months ended June 30, 2022 and 2021 relating to the contract liability at December 31, 2021 and 2020 was $45.7 million and $17.7 million, respectively . |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The following is a reconciliation between basic and diluted weighted average common shares outstanding: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic weighted average common shares outstanding 43,192 42,481 42,987 42,207 Effect of dilution: Stock options — — — 6 Restricted stock units 487 901 710 1,064 Diluted weighted average common shares outstanding 43,679 43,382 43,697 43,277 As of June 30, 2022 and June 30, 2021, 0.8 million and 0.3 million, respectively, of restricted stock units have been excluded from diluted weighted average common shares outstanding, as their impact would have been anti-dilutive. Stock Repurchase Program The Company's Board of Directors previously authorized a program to repurchase up to $1.5 billion of its outstanding shares of common stock (the "Stock Repurchase Program"). The Stock Repurchase Program has no pre-established closing date and may be suspended or discontinued at any time. For the three and six months ended June 30, 2022 and 2021, the Company did not repurchase any shares of its Class A Common Stock. As of June 30, 2022, the Company had $135.3 million of authorization remaining for repurchase under the Stock Repurchase Program. |
Impairment and Other Charges
Impairment and Other Charges | 6 Months Ended |
Jun. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Impairment and Other Charges | Impairment and Other Charges There were no impairment and other charges for the three and six months ended June 30, 2022. Impairment and other charges for the three and six months ended June 30, 2021 were $142.9 million and $159.0 million, respectively. On July 16, 2021, the Company entered into a settlement agreement (the “Settlement Agreement”) with Frank Darabont, Ferenc, Inc., Darkwoods Productions, Inc., and Creative Artists Agency, LLC (together, the "Plaintiffs") in actions brought in connection with Frank Darabont’s rendering services as a writer, director and producer of the television series entitled The Walking Dead . The Settlement Agreement provided for a cash payment of $200 million (the “Settlement Payment”) to the Plaintiffs and future revenue sharing related to certain future streaming exhibition of The Walking Dead and Fear The Walking Dead . With regard to the Settlement Payment, the Company recorded a charge of $143.0 million during the second quarter of 2021, included in Impairment and other charges in consideration for the extinguishment of Plaintiffs’ rights to any compensation in connection with The Walking Dead and any related programs and the dismissal of the actions with prejudice, which amount was net of $57.0 million of ordinary c ourse accrued participations. In March 2021, the Company completed a spin-off of the live comedy venue and talent management businesses ("LiveCo") of Levity Entertainment Group, LLC. In connection with the transaction, the Company effectively exchanged all of its rights and interests in LiveCo for the release of the Company's obligations, principally related to leases. As a result of this divestiture, the Company recognized a loss on the disposal of $16.1 million reflecting the net assets transferred (consisting of property and equipment, lease right-of-use assets and intangibles, partially offset by lease and other obligations), which is included in Impairment and other charges. The Company retained its interest in the production services business of Levity Entertainment Group, LLC, which was renamed 25/7 Media Holdings, LLC ("25/7 Media") following the spin-off. |
Restructuring and Other Related
Restructuring and Other Related Charges | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | Restructuring and Other Related Charges There were no restructuring and other related charges for the three and six months ended June 30, 2022. Restructuring and other related charges of $0.2 million and $8.8 million for the three and six months ended June 30, 2021, respectively, consisted of $0.2 million and $4.3 million of severance costs associated with the restructuring plan announced in November 2020 for the three and six months ended June 30, 2021, respectively, and $4.5 million at AMCNI related to the termination of distribution in certain international territories for the six months ended June 30, 2021. The following table summarizes the restructuring and other related charges recognized by operating segment: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2021 Domestic Operations $ 216 $ 2,643 International and Other (17) 4,473 Corporate / Inter-segment eliminations (44) 1,664 Total restructuring and other related charges $ 155 $ 8,780 |
Program Rights
Program Rights | 6 Months Ended |
Jun. 30, 2022 | |
Film, Disclosures [Abstract] | |
Program Rights | Program Rights Total capitalized produced and licensed content by predominant monetization strategy is as follows: June 30, 2022 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 219,611 $ 301,862 $ 521,473 In-production and in-development 105,010 311,768 416,778 Total owned original program rights, net $ 324,621 $ 613,630 $ 938,251 Licensed program rights, net: Licensed film and acquired series $ 4,932 $ 597,137 $ 602,069 Licensed originals 83,794 208,111 291,905 Advances and content versioning costs — 123,468 123,468 Total licensed program rights, net 88,726 928,716 1,017,442 Program rights, net $ 413,347 $ 1,542,346 $ 1,955,693 Current portion of program rights, net $ 13,794 Program rights, net (long-term) 1,941,899 $ 1,955,693 December 31, 2021 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 185,228 $ 127,470 $ 312,698 In-production and in-development 161,881 264,927 426,808 Total owned original program rights, net $ 347,109 $ 392,397 $ 739,506 Licensed program rights, net: Licensed film and acquired series $ 7,005 $ 620,935 $ 627,940 Licensed originals 61,923 148,063 209,986 Advances and content versioning costs 57,278 107,196 164,474 Total licensed program rights, net 126,206 876,194 1,002,400 Program rights, net $ 473,315 $ 1,268,591 $ 1,741,906 Current portion of program rights, net $ 10,068 Program rights, net (long-term) 1,731,838 $ 1,741,906 Amortization of owned and licensed program rights, included in Technical and operating expenses in the condensed consolidated statements of income, is as follows: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights $ 44,504 $ 30,381 $ 74,885 $ 94,344 $ 47,316 $ 141,660 Licensed program rights 9,633 119,520 129,153 17,241 237,989 255,230 Program rights amortization $ 54,137 $ 149,901 $ 204,038 $ 111,585 $ 285,305 $ 396,890 Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights $ 50,921 $ 7,571 $ 58,492 $ 84,827 $ 12,137 $ 96,964 Licensed program rights 20,865 103,004 123,869 45,885 190,499 236,384 Program rights amortization $ 71,786 $ 110,575 $ 182,361 $ 130,712 $ 202,636 $ 333,348 The Company periodically reviews the programming usefulness of its licensed and owned original program rights based on several factors, including expected future revenue generation from airings on the Company's networks and streaming services 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, the useful life is updated, which generally results in a write-off of the unamortized cost to technical and operating expenses in the consolidated statemen ts of income. There were no significant program rights write-offs included in technical and operating expense f |
Investments
Investments | 6 Months Ended |
Jun. 30, 2022 | |
Investments [Abstract] | |
Investments | Investments The Company holds several investments in and loans to non-consolidated entities which are included in Other assets in the condensed consolidated balance sheet. Equity method investments were $83.0 million and $93.7 million at June 30, 2022 and December 31, 2021, respectively. Marketable Equity Securities The Company classifies publicly traded investments with readily determinable fair values that are not accounted for under the equity method as marketable equity securities. Marketable equity securities are recorded at cost and adjusted to fair value at each reporting period. The changes in fair value between measurement dates are recorded in miscellaneous, net in the condensed consolidated statement of income. In April 2022, the Company sold its interest in a marketable equity security for $9.9 million. The Company recognized a loss of $0.2 million and a gain of $4.1 million on marketable equity securities for the three and six months ended June 30, 2022, respectively. There were losses of $2.4 million and $7.8 million on marketable equity securities for the three and six months ended June 30, 2021, respectively. There were no investments in marketable equity securities at June 30, 2022 and $5.8 million of investments in marketable equity securities at December 31, 2021. Non-marketable Equity Securities The Company classifies investments without readily determinable fair values that are not accounted for under the equity method as non-marketable equity securities. Investments in non-marketable equity securities were $37.7 million a |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
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) Domestic Operations International Total December 31, 2021 $ 353,470 $ 355,874 $ 709,344 Purchase accounting adjustments (1,086) — (1,086) Amortization of "second component" goodwill (672) — (672) Foreign currency translation — (23,350) (23,350) June 30, 2022 $ 351,712 $ 332,524 $ 684,236 As of June 30, 2022 and December 31, 2021, accumulated impairment charges in the International and Other segment totaled $123.1 million . The purchase accounting adjustments of $1.1 million to the carrying amount of goodwill in Domestic Operations relate to the acquisition of Sentai Holdings, a global supplier of anime content, including its anime-focused HIDIVE subscription streaming service, for which the allocation of goodwill is preliminary and is based on current estimates and currently available information, and is subject to revision based on final allocation of the purchase price to identifiable assets and liabilities acquired. The reduction of $0.7 million in the carrying amount of goodwill for Domestic Operations 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) June 30, 2022 Gross Accumulated Amortization Net Estimated Useful Lives Amortizable intangible assets: Affiliate and customer relationships $ 634,476 $ (358,987) $ 275,489 6 to 25 years Advertiser relationships 46,282 (32,339) 13,943 11 years Trade names and other amortizable intangible assets 108,246 (43,230) 65,016 3 to 20 years Total amortizable intangible assets 789,004 (434,556) 354,448 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 808,904 $ (434,556) $ 374,348 (In thousands) December 31, 2021 Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 649,543 $ (354,673) $ 294,870 Advertiser relationships 46,282 (30,235) 16,047 Trade names and other amortizable intangible assets 111,151 (42,534) 68,617 Total amortizable intangible assets 806,976 (427,442) 379,534 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 826,876 $ (427,442) $ 399,434 Aggregate amortization expense for amortizable intangible assets for the three months ended June 30, 2022 and 2021 was $10.4 million and $9.4 million, respectively, and for the six months ended June 30, 2022 and 2021 was $21.0 million and $18.9 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, 2022 $ 41,600 2023 41,428 2024 41,345 2025 39,654 2026 35,152 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: (In thousands) June 30, 2022 December 31, 2021 Employee related costs 91,101 $ 128,388 Participations and residuals 128,496 133,988 Interest 36,950 36,922 Other accrued expenses 42,260 41,109 Total accrued liabilities $ 298,807 $ 340,407 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt The Company's long-term debt consists of the following: (In thousands) June 30, 2022 December 31, 2021 Senior Secured Credit Facility: (a) Term Loan A Facility $ 658,125 $ 675,000 Senior Notes: 5.00% Notes due April 2024 400,000 400,000 4.75% Notes due August 2025 800,000 800,000 4.25% Notes due February 2029 1,000,000 1,000,000 Total long-term debt 2,858,125 2,875,000 Unamortized discount (20,979) (23,167) Unamortized deferred financing costs (11,723) (13,363) Long-term debt, net 2,825,423 2,838,470 Current portion of long-term debt 33,750 33,750 Noncurrent portion of long-term debt $ 2,791,673 $ 2,804,720 (a) The Company's $500 million revolving credit facility remains undrawn at June 30, 2022. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company. During the six months ended June 30, 2022, the Company repaid a total of $16.9 million of the principal amount of the Term Loan A Facility in accordance with the terms of the agreement. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The following table summarizes the leases included in the condensed consolidated balance sheets as follows: (In thousands) Balance Sheet Location June 30, 2022 December 31, 2021 Assets Operating Operating lease right-of-use assets $ 111,673 $ 125,866 Finance Property and equipment, net 11,531 12,080 Total lease assets $ 123,204 $ 137,946 Liabilities Current: Operating Current portion of lease obligations $ 33,336 $ 32,929 Finance Current portion of lease obligations 3,740 3,667 $ 37,076 $ 36,596 Noncurrent: Operating Lease obligations $ 111,213 128,319 Finance Lease obligations 21,335 23,520 132,548 $ 151,839 Total lease liabilities $ 169,624 $ 188,435 |
Leases | Leases The following table summarizes the leases included in the condensed consolidated balance sheets as follows: (In thousands) Balance Sheet Location June 30, 2022 December 31, 2021 Assets Operating Operating lease right-of-use assets $ 111,673 $ 125,866 Finance Property and equipment, net 11,531 12,080 Total lease assets $ 123,204 $ 137,946 Liabilities Current: Operating Current portion of lease obligations $ 33,336 $ 32,929 Finance Current portion of lease obligations 3,740 3,667 $ 37,076 $ 36,596 Noncurrent: Operating Lease obligations $ 111,213 128,319 Finance Lease obligations 21,335 23,520 132,548 $ 151,839 Total lease liabilities $ 169,624 $ 188,435 |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021: (In thousands) Level I Level II Level III Total At June 30, 2022: Assets Cash equivalents $ 80,013 $ — $ — $ 80,013 Foreign currency derivatives — 366 — 366 Liabilities Foreign currency derivatives — 8,313 — 8,313 At December 31, 2021: Assets Marketable securities $ 5,771 $ — $ — $ 5,771 Foreign currency derivatives — 196 — 196 Liabilities Foreign currency derivatives — 5,911 — 5,911 The Company's cash equivalents (comprised of money market funds) and marketable securities are classified within Level I of the fair value hierarchy because they are valued using quoted market prices. The Company's foreign currency derivatives are classified within Level II of the fair value hierarchy as their fair values are determined based on a market approach valuation technique that uses readily observable market parameters and the consideration of counterparty risk. At June 30, 2022 and December 31, 2021, the Company did not have any material 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 and impairment testing. These nonrecurring valuations primarily include the valuation of program rights, goodwill, 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) June 30, 2022 Carrying Estimated Debt instruments: Term loan A facility $ 649,033 $ 651,544 5.00% Notes due April 2024 398,179 387,500 4.75% Notes due August 2025 793,119 740,000 4.25% Notes due February 2029 985,092 805,000 $ 2,825,423 $ 2,584,044 (In thousands) December 31, 2021 Carrying Estimated Debt instruments: Term loan A facility $ 664,581 $ 670,781 5.00% Notes due April 2024 397,693 403,500 4.75% Notes due August 2025 792,098 818,000 4.25% Notes due February 2029 984,098 997,500 $ 2,838,470 $ 2,889,781 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 | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments 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 one of 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. 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 June 30, 2022 December 31, 2021 Derivatives not designated as hedging instruments: Assets: Foreign currency derivatives Prepaid expenses and other current assets $ 272 $ 180 Foreign currency derivatives Other assets 94 16 Liabilities: Foreign currency derivatives Accrued liabilities $ 3,106 $ 1,686 Foreign currency derivatives Other liabilities 5,207 4,225 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Foreign currency derivatives Miscellaneous, net $ (3,204) $ (149) $ (3,761) $ (95) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesFor the three and six months ended June 30, 2022, income tax expense was $33.0 million and $74.7 million, respectively, representing an effective tax rate of 27% for both periods. The items resulting in variances from the federal statutory rate of 21% for the three and six months ended June 30, 2022 primarily consist of state and local income tax expense and tax expense for an increase in the valuation allowance for foreign taxes. For the three and six months ended June 30, 2021, income tax expense was $11.3 million and $37.2 million, respectively, representing an effective tax rate of 21% for both periods, which was equal to the federal statutory rate. The effective tax rate for the three months ended June 30, 2021 was impacted by state and local income tax expense and tax expense for an increase in valuation allowances for foreign taxes and U.S. foreign tax, partially offset by a tax benefit from foreign operations. The effective tax rate for the six months ended June 30, 2021 was impacted by a discrete tax benefit for excess tax benefits related to stock compensation, partially offset by state and local income tax expense. At June 30, 2022, the Company had foreign tax credit carry forwards of approximately $42.9 million, expiring on various dates from 2022 through 2032. These carryforwards have been reduced by a valuation allowance of $42.9 million as it is more likely than not that these carry forwards will not be realized. For the six months ended June 30, 2022, $0.5 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 | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As of June 30, 2022, the Company's contractual obligations not reflected on the Company's condensed consolidated balance sheet decreased $76.5 million, as compared to December 31, 2021, to $986.9 million. The decrease primarily relates to payments for program rights. Legal Matters 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 "Plaintiffs") filed a complaint in California Superior Court in connection with 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 "Walking Dead Litigation"). The Plaintiffs asserted that the Company had been improperly underpaying the Plaintiffs under their contracts with the Company and they asserted claims for breach of contract, breach of the implied covenant of good faith and fair dealing, inducing breach of contract, and liability for violation of Cal. Bus. & Prof. Code § 17200. The Plaintiffs sought compensatory and punitive damages and restitution. On August 8, 2019, the judge in the Walking Dead Litigation ordered a trial to resolve certain issues of contract interpretation only. Following eight days of trial in February and March 2020, on July 22, 2020, the judge issued a Statement of Decision finding in the Company's favor on all seven matters of contract interpretation before the court in this first phase trial. On January 20, 2021, the Plaintiffs filed a second amended complaint, eliminating eight named defendants and their claims under Cal. Bus. & Prof. Code § 17200. On May 5, 2021, the Plaintiffs filed a third amended complaint, repleading in part their claims for alleged breach of the implied covenant of good faith and fair dealing, inducing breach of contract, and certain breach of contract claims. On June 2, 2021, the Company filed a demurrer and motion to strike seeking to dismiss the claim for breach of the implied covenant of good faith and fair dealing and certain tort and breach of contract claims asserted in the third amended complaint. On July 27, 2021, the court granted in part and denied in part the Company's motion. On January 12, 2022, the Company filed a motion for summary adjudication of many of the remaining claims. On April 6, 2022, the court granted the Company’s summary adjudication motion in part, dismissing the Plaintiffs’ claims for breach of the implied covenant of good faith and fair dealing and inducing breach of contract. A trial of the two remaining claims is currently scheduled for January 2023. The Company believes the two remaining claims in the case for breach of contract are without merit and is continuing to 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 | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Plans | Equity Plans In June 2022, AMC Networks granted 51,044 restricted stock units ("RSUs") under the 2011 Stock Plan for Non-Employee Directors to non-employee directors that vested on the date of grant. In March 2022, AMC Networks granted 628,508 RSUs to certain executive officers and employees under the AMC Networks Inc. Amended and Restated 2016 Employee Stock Plan. The RSUs vest ratably over a three-year period. During the three months ended June 30, 2022, 1,270 RSUs of AMC Networks Class A Common Stock previously issued to employees of the Company vested. On the vesting dat e, 441 RSUs were surrendered to the Company to cover the required statutory tax withholding obligations an d 829 RSU new shares of AMC Networks Class A Common Stock were issued. During the six months ended June 30, 2022, 616,091 RSUs and 344,157 performance restricted stock units ("PRSUs") of AMC Networks Class A Common Stock previously issued to employees of the Company vested. On the vesting dat e, 262,386 RSUs and 155,103 PRSUs were surrendered to the Company to cover the required statutory tax withholding obligations an d 353,705 RSU and 189,054 PRS U new shares of AMC Networks Class A Common Stock were issued. Units are surrendered to satisfy the employees' statutory minimu m tax withholding obligations for the applicable income and other employment tax. All units surrendered during the six months ended June 30, 2022 h ad an aggregate value of $20.3 million , which has been reflected as a financing activity in the condensed consolidated statement of cash flows for the six months ended June 30, 2022. Share-based compensation expenses included in selling, general and administrative expenses were $8.7 million and $16.8 million for the three and six months ended June 30, 2022, respectively and $16.3 million and $29.7 million for the three and six months ended June 30, 2021, respectively. As of June 30, 2022, there was $35.3 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 2.2 years . |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Redeemable Noncontrolling Interests The following table summarizes activity related to redeemable noncontrolling interest for the six months ended June 30, 2022 and 2021: (In thousands) Six Months Ended June 30, 2022 December 31, 2021 $ 283,849 Net earnings 8,528 Distributions (22,180) Other 529 June 30, 2022 $ 270,726 (In thousands) Six Months Ended June 30, 2021 December 31, 2020 $ 315,649 Net earnings 10,139 Distributions (10,351) Distribution related to spin-off transaction (8,040) Transfer to noncontrolling interest (18,367) June 30, 2021 $ 289,030 In connection with the spin-off of the live comedy venue and talent management businesses of Levity Entertainment Group, LLC (see Note 4), $8.0 million of redeemable noncontrolling interests was distributed to the noncontrolling partners. In addition, as part of the transaction, the preexisting put rights of the noncontrolling interest holders were terminated. Accordingly, the remaining $18.4 million of noncontrolling interests was transferred from Redeemable noncontrolling interests to Noncontrolling interests in the condensed consolidated balance sheet. Non-redeemable Noncontrolling Interests |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions 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 $1.2 million and $1.3 million for the three months ended June 30, 2022 and 2021, respectively, and $2.5 million for the six months ended June 30, 2022 and 2021. Amounts charged to the Company, included in selling, general and administrative expenses, pursuant to transactions with its related parties amounted to $0.7 million and $0.5 million for the three months ended June 30, 2022 and 2021, respectively, and $1.3 million and $1.0 million for the six months ended June 30, 2022 and 2021, respectively. As disclosed in Note 20 of the Company’s 2021 Annual Report on Form 10-K, from time to time the Company enters into arrangements with 605, LLC. James L. Dolan, the Non-Executive Chairman and a director of the Company, and his spouse, Kristin A. Dolan, a director of the Company, own 50% of 605, LLC. Kristin A. Dolan is also the founder and Chief Executive Officer of 605, LLC. 605, LLC provides audience measurement and data analytics services to the Company and its subsidiaries pursuant to a Master Services Agreement dated February 8, 2019 (the “Master Services Agreement"). On August 1, 2022, the Audit Committee authorized the Company to enter into a Statement of Work for Strategic Analytic Services (the “Statement of Work”) with 605, LLC under the Master Services Agreement. The fees payable to 605, LLC by the Company for these services are $10.5 million payable in five installments with the first payment due upon execution of the agreement. The initial term of the Statement of Work is August 1, 2022 to December 31, 2022, which term is automatically extended to June 30, 2023 unless terminated by either party on 30 days’ notice prior to December 31, 2022. |
Cash Flows
Cash Flows | 6 Months Ended |
Jun. 30, 2022 | |
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) Six Months Ended June 30, 2022 2021 Non-Cash Investing and Financing Activities: Capital expenditures incurred but not yet paid $ 6,002 $ 1,758 Contingent consideration for purchase of noncontrolling interests 2,806 — Supplemental Data: Cash interest paid 58,539 54,207 Income taxes paid, net 33,793 45,058 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company classifies its operations into two operating segments: Domestic Operations and International and Other. These operating segments represent strategic business units that are managed separately. The Company evaluates segment performance based on several factors, of which the primary financial measure is operating segment adjusted operating income ("AOI"). The Company defines AOI as operating income (loss) before depreciation and amortization, cloud computing amortization, share-based compensation expenses or benefit, impairment and other charges (including gains or losses on sales or dispositions of businesses), restructuring and other related charges and including the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees. The Company has presented the components that reconcile adjusted operating income to operating income, and other information as to the continuing operations of the Company's operating segments below. (In thousands) Three Months Ended June 30, 2022 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 347,024 $ 56,702 $ — $ 403,726 Content licensing and other 72,426 47,335 (8,848) 110,913 Distribution and other 419,450 104,037 (8,848) 514,639 Advertising 201,652 21,734 — 223,386 Consolidated revenues, net $ 621,102 $ 125,771 $ (8,848) $ 738,025 Operating income (loss) $ 188,812 $ 14,087 $ (49,696) $ 153,203 Share-based compensation expenses 3,172 467 5,044 8,683 Depreciation and amortization 13,439 4,633 9,159 27,231 Cloud computing amortization 5 — 2,359 2,364 Majority-owned equity investees AOI 4,061 — — 4,061 Adjusted operating income (loss) $ 209,489 $ 19,187 $ (33,134) $ 195,542 (In thousands) Three Months Ended June 30, 2021 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 343,056 $ 62,924 $ — 405,980 Content licensing and other 83,677 49,386 (5,900) 127,163 Distribution and other 426,733 112,310 (5,900) 533,143 Advertising 212,282 25,967 — 238,249 Consolidated revenues, net $ 639,015 $ 138,277 $ (5,900) $ 771,392 Operating income (loss) $ 88,116 $ 19,963 $ (39,823) 68,256 Share-based compensation expenses 7,292 913 8,057 16,262 Depreciation and amortization 11,716 4,328 6,560 22,604 Impairment charges 143,000 (82) — 142,918 Restructuring and other related charges 216 (17) (44) 155 Cloud computing amortization — — 642 642 Majority-owned equity investees AOI (200) — — (200) Adjusted operating income (loss) $ 250,140 $ 25,105 $ (24,608) $ 250,637 (In thousands) Six Months Ended June 30, 2022 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 690,772 $ 117,114 $ — $ 807,886 Content licensing and other 133,680 74,389 (12,085) 195,984 Distribution and other 824,452 191,503 (12,085) 1,003,870 Advertising 402,193 44,119 — 446,312 Consolidated revenues, net $ 1,226,645 $ 235,622 $ (12,085) $ 1,450,182 Operating income (loss) $ 387,334 $ 31,442 $ (90,896) $ 327,880 Share-based compensation expenses 6,845 1,221 8,746 16,812 Depreciation and amortization 25,575 9,536 14,710 49,821 Cloud computing amortization 12 — 3,259 3,271 Majority-owned equity investees AOI 8,942 — — 8,942 Adjusted operating income (loss) $ 428,708 $ 42,199 $ (64,181) $ 406,726 (In thousands) Six Months Ended June 30, 2021 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 661,888 $ 125,952 $ — $ 787,840 Content licensing and other 139,672 85,954 (9,295) 216,331 Distribution and other 801,560 $ 211,906 (9,295) $ 1,004,171 Advertising 411,424 47,538 — 458,962 Consolidated revenues, net $ 1,212,984 $ 259,444 $ (9,295) $ 1,463,133 Operating income (loss) $ 304,575 $ 16,801 $ (83,412) $ 237,964 Share-based compensation expenses 12,931 2,144 14,633 29,708 Depreciation and amortization 25,089 9,277 13,484 47,850 Impairment and other charges 143,000 15,973 — 158,973 Restructuring and other related charges 2,643 4,473 1,664 8,780 Cloud computing amortization — — 906 906 Majority-owned equity investees AOI 4,435 — — 4,435 Adjusted operating income (loss) $ 492,673 $ 48,668 $ (52,725) $ 488,616 Corporate overhead costs not allocated to the segments include 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). Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International and Other segments. (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Inter-segment revenues Domestic Operations $ (7,442) $ (6,256) $ (10,444) $ (6,926) International and Other (1,406) 356 (1,641) (2,369) $ (8,848) $ (5,900) $ (12,085) $ (9,295) The table below summarizes revenues based on customer location: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues United States $ 600,226 $ 612,326 $ 1,191,434 $ 1,189,474 Europe 97,146 119,555 180,071 201,591 Other 40,653 39,511 78,677 72,068 $ 738,025 $ 771,392 $ 1,450,182 $ 1,463,133 The table below summarizes property and equipment based on asset location: (In thousands) June 30, 2022 December 31, 2021 Property and equipment, net United States $ 200,586 $ 210,252 Europe 12,242 14,510 Other 1,112 1,029 $ 213,940 $ 225,791 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of AMC Networks and its subsidiaries in which a controlling voting interest is maintained or variable interest entities ("VIEs") in which the Company has determined it is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. |
Unaudited Interim Financial Statements | 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, 2021 contained in the Company's Annual Report on Form 10-K ("2021 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, 2022. |
Use of Estimates | 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 the useful lives and methodologies used to amortize and assess recoverability of program rights, the estimated useful lives of intangible assets and the valuation and recoverability of goodwill and intangible assets. |
Reclassifications | Reclassifications Certain reclassifications were made to the prior period amounts to conform to the current period presentation. |
Program Rights | 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, the useful life is updated, which generally results in a write-off of the unamortized cost to technical and operating expenses in the consolidated statements of income. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers. (In thousands) June 30, 2022 December 31, 2021 Balances from contracts with customers: Accounts receivable (including long-term receivables within Other assets) $ 986,278 $ 1,106,225 Contract assets, short-term (included in Prepaid expenses and other current assets) 169,653 69,351 Contract assets, long-term (included in Other assets) 2,086 29,323 Contract liabilities, short-term (Deferred revenue) 243,734 167,071 Contract liabilities, long-term (Deferred revenue included in Other liabilities) 58 31,832 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following is a reconciliation between basic and diluted weighted average common shares outstanding: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic weighted average common shares outstanding 43,192 42,481 42,987 42,207 Effect of dilution: Stock options — — — 6 Restricted stock units 487 901 710 1,064 Diluted weighted average common shares outstanding 43,679 43,382 43,697 43,277 |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Summary of Accrued Restructuring Costs | The following table summarizes the restructuring and other related charges recognized by operating segment: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2021 Domestic Operations $ 216 $ 2,643 International and Other (17) 4,473 Corporate / Inter-segment eliminations (44) 1,664 Total restructuring and other related charges $ 155 $ 8,780 |
Program Rights (Tables)
Program Rights (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Film, Disclosures [Abstract] | |
Schedule of Program Rights by Predominant Monetization Strategy | Total capitalized produced and licensed content by predominant monetization strategy is as follows: June 30, 2022 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 219,611 $ 301,862 $ 521,473 In-production and in-development 105,010 311,768 416,778 Total owned original program rights, net $ 324,621 $ 613,630 $ 938,251 Licensed program rights, net: Licensed film and acquired series $ 4,932 $ 597,137 $ 602,069 Licensed originals 83,794 208,111 291,905 Advances and content versioning costs — 123,468 123,468 Total licensed program rights, net 88,726 928,716 1,017,442 Program rights, net $ 413,347 $ 1,542,346 $ 1,955,693 Current portion of program rights, net $ 13,794 Program rights, net (long-term) 1,941,899 $ 1,955,693 December 31, 2021 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 185,228 $ 127,470 $ 312,698 In-production and in-development 161,881 264,927 426,808 Total owned original program rights, net $ 347,109 $ 392,397 $ 739,506 Licensed program rights, net: Licensed film and acquired series $ 7,005 $ 620,935 $ 627,940 Licensed originals 61,923 148,063 209,986 Advances and content versioning costs 57,278 107,196 164,474 Total licensed program rights, net 126,206 876,194 1,002,400 Program rights, net $ 473,315 $ 1,268,591 $ 1,741,906 Current portion of program rights, net $ 10,068 Program rights, net (long-term) 1,731,838 $ 1,741,906 |
Schedule of Amortization of Owned and Licensed Program Rights | Amortization of owned and licensed program rights, included in Technical and operating expenses in the condensed consolidated statements of income, is as follows: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights $ 44,504 $ 30,381 $ 74,885 $ 94,344 $ 47,316 $ 141,660 Licensed program rights 9,633 119,520 129,153 17,241 237,989 255,230 Program rights amortization $ 54,137 $ 149,901 $ 204,038 $ 111,585 $ 285,305 $ 396,890 Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights $ 50,921 $ 7,571 $ 58,492 $ 84,827 $ 12,137 $ 96,964 Licensed program rights 20,865 103,004 123,869 45,885 190,499 236,384 Program rights amortization $ 71,786 $ 110,575 $ 182,361 $ 130,712 $ 202,636 $ 333,348 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amount of goodwill, by operating segment is as follows: (In thousands) Domestic Operations International Total December 31, 2021 $ 353,470 $ 355,874 $ 709,344 Purchase accounting adjustments (1,086) — (1,086) Amortization of "second component" goodwill (672) — (672) Foreign currency translation — (23,350) (23,350) June 30, 2022 $ 351,712 $ 332,524 $ 684,236 |
Schedule of Finite-Lived Intangible Assets | The following tables summarize information relating to the Company's identifiable intangible assets: (In thousands) June 30, 2022 Gross Accumulated Amortization Net Estimated Useful Lives Amortizable intangible assets: Affiliate and customer relationships $ 634,476 $ (358,987) $ 275,489 6 to 25 years Advertiser relationships 46,282 (32,339) 13,943 11 years Trade names and other amortizable intangible assets 108,246 (43,230) 65,016 3 to 20 years Total amortizable intangible assets 789,004 (434,556) 354,448 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 808,904 $ (434,556) $ 374,348 (In thousands) December 31, 2021 Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 649,543 $ (354,673) $ 294,870 Advertiser relationships 46,282 (30,235) 16,047 Trade names and other amortizable intangible assets 111,151 (42,534) 68,617 Total amortizable intangible assets 806,976 (427,442) 379,534 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 826,876 $ (427,442) $ 399,434 |
Schedule of Indefinite-Lived Intangible Assets | The following tables summarize information relating to the Company's identifiable intangible assets: (In thousands) June 30, 2022 Gross Accumulated Amortization Net Estimated Useful Lives Amortizable intangible assets: Affiliate and customer relationships $ 634,476 $ (358,987) $ 275,489 6 to 25 years Advertiser relationships 46,282 (32,339) 13,943 11 years Trade names and other amortizable intangible assets 108,246 (43,230) 65,016 3 to 20 years Total amortizable intangible assets 789,004 (434,556) 354,448 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 808,904 $ (434,556) $ 374,348 (In thousands) December 31, 2021 Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 649,543 $ (354,673) $ 294,870 Advertiser relationships 46,282 (30,235) 16,047 Trade names and other amortizable intangible assets 111,151 (42,534) 68,617 Total amortizable intangible assets 806,976 (427,442) 379,534 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 826,876 $ (427,442) $ 399,434 |
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, 2022 $ 41,600 2023 41,428 2024 41,345 2025 39,654 2026 35,152 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: (In thousands) June 30, 2022 December 31, 2021 Employee related costs 91,101 $ 128,388 Participations and residuals 128,496 133,988 Interest 36,950 36,922 Other accrued expenses 42,260 41,109 Total accrued liabilities $ 298,807 $ 340,407 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The Company's long-term debt consists of the following: (In thousands) June 30, 2022 December 31, 2021 Senior Secured Credit Facility: (a) Term Loan A Facility $ 658,125 $ 675,000 Senior Notes: 5.00% Notes due April 2024 400,000 400,000 4.75% Notes due August 2025 800,000 800,000 4.25% Notes due February 2029 1,000,000 1,000,000 Total long-term debt 2,858,125 2,875,000 Unamortized discount (20,979) (23,167) Unamortized deferred financing costs (11,723) (13,363) Long-term debt, net 2,825,423 2,838,470 Current portion of long-term debt 33,750 33,750 Noncurrent portion of long-term debt $ 2,791,673 $ 2,804,720 (a) The Company's $500 million revolving credit facility remains undrawn at June 30, 2022. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Summary of Leases Included in the Consolidated Balance Sheets | The following table summarizes the leases included in the condensed consolidated balance sheets as follows: (In thousands) Balance Sheet Location June 30, 2022 December 31, 2021 Assets Operating Operating lease right-of-use assets $ 111,673 $ 125,866 Finance Property and equipment, net 11,531 12,080 Total lease assets $ 123,204 $ 137,946 Liabilities Current: Operating Current portion of lease obligations $ 33,336 $ 32,929 Finance Current portion of lease obligations 3,740 3,667 $ 37,076 $ 36,596 Noncurrent: Operating Lease obligations $ 111,213 128,319 Finance Lease obligations 21,335 23,520 132,548 $ 151,839 Total lease liabilities $ 169,624 $ 188,435 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 June 30, 2022 and December 31, 2021: (In thousands) Level I Level II Level III Total At June 30, 2022: Assets Cash equivalents $ 80,013 $ — $ — $ 80,013 Foreign currency derivatives — 366 — 366 Liabilities Foreign currency derivatives — 8,313 — 8,313 At December 31, 2021: Assets Marketable securities $ 5,771 $ — $ — $ 5,771 Foreign currency derivatives — 196 — 196 Liabilities Foreign currency derivatives — 5,911 — 5,911 |
Schedule of 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) June 30, 2022 Carrying Estimated Debt instruments: Term loan A facility $ 649,033 $ 651,544 5.00% Notes due April 2024 398,179 387,500 4.75% Notes due August 2025 793,119 740,000 4.25% Notes due February 2029 985,092 805,000 $ 2,825,423 $ 2,584,044 (In thousands) December 31, 2021 Carrying Estimated Debt instruments: Term loan A facility $ 664,581 $ 670,781 5.00% Notes due April 2024 397,693 403,500 4.75% Notes due August 2025 792,098 818,000 4.25% Notes due February 2029 984,098 997,500 $ 2,838,470 $ 2,889,781 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of 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 June 30, 2022 December 31, 2021 Derivatives not designated as hedging instruments: Assets: Foreign currency derivatives Prepaid expenses and other current assets $ 272 $ 180 Foreign currency derivatives Other assets 94 16 Liabilities: Foreign currency derivatives Accrued liabilities $ 3,106 $ 1,686 Foreign currency derivatives Other liabilities 5,207 4,225 |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Foreign currency derivatives Miscellaneous, net $ (3,204) $ (149) $ (3,761) $ (95) |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The following table summarizes activity related to redeemable noncontrolling interest for the six months ended June 30, 2022 and 2021: (In thousands) Six Months Ended June 30, 2022 December 31, 2021 $ 283,849 Net earnings 8,528 Distributions (22,180) Other 529 June 30, 2022 $ 270,726 (In thousands) Six Months Ended June 30, 2021 December 31, 2020 $ 315,649 Net earnings 10,139 Distributions (10,351) Distribution related to spin-off transaction (8,040) Transfer to noncontrolling interest (18,367) June 30, 2021 $ 289,030 |
Cash Flows (Tables)
Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |
Schedule of 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) Six Months Ended June 30, 2022 2021 Non-Cash Investing and Financing Activities: Capital expenditures incurred but not yet paid $ 6,002 $ 1,758 Contingent consideration for purchase of noncontrolling interests 2,806 — Supplemental Data: Cash interest paid 58,539 54,207 Income taxes paid, net 33,793 45,058 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Summary of Continuing Operations by Reportable Segment | The Company has presented the components that reconcile adjusted operating income to operating income, and other information as to the continuing operations of the Company's operating segments below. (In thousands) Three Months Ended June 30, 2022 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 347,024 $ 56,702 $ — $ 403,726 Content licensing and other 72,426 47,335 (8,848) 110,913 Distribution and other 419,450 104,037 (8,848) 514,639 Advertising 201,652 21,734 — 223,386 Consolidated revenues, net $ 621,102 $ 125,771 $ (8,848) $ 738,025 Operating income (loss) $ 188,812 $ 14,087 $ (49,696) $ 153,203 Share-based compensation expenses 3,172 467 5,044 8,683 Depreciation and amortization 13,439 4,633 9,159 27,231 Cloud computing amortization 5 — 2,359 2,364 Majority-owned equity investees AOI 4,061 — — 4,061 Adjusted operating income (loss) $ 209,489 $ 19,187 $ (33,134) $ 195,542 (In thousands) Three Months Ended June 30, 2021 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 343,056 $ 62,924 $ — 405,980 Content licensing and other 83,677 49,386 (5,900) 127,163 Distribution and other 426,733 112,310 (5,900) 533,143 Advertising 212,282 25,967 — 238,249 Consolidated revenues, net $ 639,015 $ 138,277 $ (5,900) $ 771,392 Operating income (loss) $ 88,116 $ 19,963 $ (39,823) 68,256 Share-based compensation expenses 7,292 913 8,057 16,262 Depreciation and amortization 11,716 4,328 6,560 22,604 Impairment charges 143,000 (82) — 142,918 Restructuring and other related charges 216 (17) (44) 155 Cloud computing amortization — — 642 642 Majority-owned equity investees AOI (200) — — (200) Adjusted operating income (loss) $ 250,140 $ 25,105 $ (24,608) $ 250,637 (In thousands) Six Months Ended June 30, 2022 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 690,772 $ 117,114 $ — $ 807,886 Content licensing and other 133,680 74,389 (12,085) 195,984 Distribution and other 824,452 191,503 (12,085) 1,003,870 Advertising 402,193 44,119 — 446,312 Consolidated revenues, net $ 1,226,645 $ 235,622 $ (12,085) $ 1,450,182 Operating income (loss) $ 387,334 $ 31,442 $ (90,896) $ 327,880 Share-based compensation expenses 6,845 1,221 8,746 16,812 Depreciation and amortization 25,575 9,536 14,710 49,821 Cloud computing amortization 12 — 3,259 3,271 Majority-owned equity investees AOI 8,942 — — 8,942 Adjusted operating income (loss) $ 428,708 $ 42,199 $ (64,181) $ 406,726 (In thousands) Six Months Ended June 30, 2021 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 661,888 $ 125,952 $ — $ 787,840 Content licensing and other 139,672 85,954 (9,295) 216,331 Distribution and other 801,560 $ 211,906 (9,295) $ 1,004,171 Advertising 411,424 47,538 — 458,962 Consolidated revenues, net $ 1,212,984 $ 259,444 $ (9,295) $ 1,463,133 Operating income (loss) $ 304,575 $ 16,801 $ (83,412) $ 237,964 Share-based compensation expenses 12,931 2,144 14,633 29,708 Depreciation and amortization 25,089 9,277 13,484 47,850 Impairment and other charges 143,000 15,973 — 158,973 Restructuring and other related charges 2,643 4,473 1,664 8,780 Cloud computing amortization — — 906 906 Majority-owned equity investees AOI 4,435 — — 4,435 Adjusted operating income (loss) $ 492,673 $ 48,668 $ (52,725) $ 488,616 |
Schedule of Summary of Inter-Segment Eliminations | Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International and Other segments. (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Inter-segment revenues Domestic Operations $ (7,442) $ (6,256) $ (10,444) $ (6,926) International and Other (1,406) 356 (1,641) (2,369) $ (8,848) $ (5,900) $ (12,085) $ (9,295) |
Schedule of Revenue by Geographic Area | The table below summarizes revenues based on customer location: (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues United States $ 600,226 $ 612,326 $ 1,191,434 $ 1,189,474 Europe 97,146 119,555 180,071 201,591 Other 40,653 39,511 78,677 72,068 $ 738,025 $ 771,392 $ 1,450,182 $ 1,463,133 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets | The table below summarizes property and equipment based on asset location: (In thousands) June 30, 2022 December 31, 2021 Property and equipment, net United States $ 200,586 $ 210,252 Europe 12,242 14,510 Other 1,112 1,029 $ 213,940 $ 225,791 |
Description of Business and B_3
Description of Business and Basis of Presentation (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2022 segment network | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | segment | 2 |
Number of national programming networks | network | 5 |
Revenue Recognition (Contract w
Revenue Recognition (Contract with Customer, Asset and Liability) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable (including long-term receivables within Other assets) | $ 986,278 | $ 1,106,225 |
Contract assets, short-term (included in Prepaid expenses and other current assets) | 169,653 | 69,351 |
Contract assets, long-term (included in Other assets) | 2,086 | 29,323 |
Contract liabilities, short-term (Deferred revenue) | 243,734 | 167,071 |
Contract liabilities, long-term (Deferred revenue included in Other liabilities) | $ 58 | $ 31,832 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 45.7 | $ 17.7 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Basic weighted average common shares outstanding (in shares) | 43,192 | 42,481 | 42,987 | 42,207 |
Effect of dilution: | ||||
Diluted weighted average common shares outstanding (in shares) | 43,679 | 43,382 | 43,697 | 43,277 |
Stock options | ||||
Effect of dilution: | ||||
Effect of dilution (in shares) | 0 | 0 | 0 | 6 |
Restricted stock units | ||||
Effect of dilution: | ||||
Effect of dilution (in shares) | 487 | 901 | 710 | 1,064 |
Net Income per Share (Narrative
Net Income per Share (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from EPS (in shares) | 800,000 | 300,000 | ||
Amount authorized under stock repurchase program | $ 1,500,000,000 | $ 1,500,000,000 | ||
Available for repurchase under the stock repurchase program | $ 135,300,000 | $ 135,300,000 | ||
Class A Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares repurchased (in shares) | 0 | 0 | 0 | 0 |
Impairment and Other Charges (D
Impairment and Other Charges (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 16, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative [Line Items] | ||||||
Impairment and other charges | $ 0 | $ 142,918 | $ 0 | $ 158,973 | ||
Plaintiffs | ||||||
Derivative [Line Items] | ||||||
Loss contingency, damages awarded, value | $ 200,000 | |||||
Litigation settlement, expense | $ 143,000 | |||||
Loss contingency accrual | $ 57,000 | |||||
Spinoff | ||||||
Derivative [Line Items] | ||||||
Loss on disposal | $ 16,100 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges | $ 0 | $ 155,000 | $ 0 | $ 8,780,000 |
Management Changes | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges | 200,000 | 8,800,000 | ||
Management Changes | A M C N I Reporting Unit | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges | 4,500,000 | |||
Management Changes | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other related charges | $ 200,000 | $ 4,300,000 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges (Restructuring and Related Costs) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related charges | $ 0 | $ 155,000 | $ 0 | $ 8,780,000 |
Operating Segments | Domestic Operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related charges | 216,000 | 2,643,000 | ||
Operating Segments | International and Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related charges | (17,000) | 4,473,000 | ||
Corporate / Inter-segment eliminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other related charges | $ (44,000) | $ 1,664,000 |
Program Rights (Program Rights
Program Rights (Program Rights by Predominant Monetization Strategy) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Predominantly Monetized Individually | ||
Completed | $ 219,611 | $ 185,228 |
In-production and in-development | 105,010 | 161,881 |
Total owned original program rights, net | 324,621 | 347,109 |
Licensed film and acquired series | 4,932 | 7,005 |
Licensed originals | 83,794 | 61,923 |
Advances and content versioning costs | 0 | 57,278 |
Total licensed program rights, net | 88,726 | 126,206 |
Program rights, net | 413,347 | 473,315 |
Predominantly Monetized as a Group | ||
Completed | 301,862 | 127,470 |
In-production and in-development | 311,768 | 264,927 |
Total owned original program rights, net | 613,630 | 392,397 |
Licensed film and acquired series | 597,137 | 620,935 |
Licensed originals | 208,111 | 148,063 |
Advances and content versioning costs | 123,468 | 107,196 |
Total licensed program rights, net | 928,716 | 876,194 |
Program rights, net | 1,542,346 | 1,268,591 |
Total | ||
Completed | 521,473 | 312,698 |
In-production and in-development | 416,778 | 426,808 |
Total owned original program rights, net | 938,251 | 739,506 |
Licensed film and acquired series | 602,069 | 627,940 |
Licensed originals | 291,905 | 209,986 |
Advances and content versioning costs | 123,468 | 164,474 |
Total licensed program rights, net | 1,017,442 | 1,002,400 |
Program rights, net | 1,955,693 | 1,741,906 |
Current portion of program rights, net | 13,794 | 10,068 |
Program rights, net (long-term) | $ 1,941,899 | $ 1,731,838 |
Program Rights (Amortization of
Program Rights (Amortization of Owned and Licensed Program Rights) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Owned original program rights | ||||
Predominantly Monetized Individually | $ 44,504 | $ 50,921 | $ 94,344 | $ 84,827 |
Predominantly Monetized as a Group | 30,381 | 7,571 | 47,316 | 12,137 |
Total | 74,885 | 58,492 | 141,660 | 96,964 |
Licensed program rights | ||||
Predominantly Monetized Individually | 9,633 | 20,865 | 17,241 | 45,885 |
Predominantly Monetized as a Group | 119,520 | 103,004 | 237,989 | 190,499 |
Total | 129,153 | 123,869 | 255,230 | 236,384 |
Predominantly Monetized Individually | 54,137 | 71,786 | 111,585 | 130,712 |
Predominantly Monetized as a Group | 149,901 | 110,575 | 285,305 | 202,636 |
Total | $ 204,038 | $ 182,361 | $ 396,890 | $ 333,348 |
Program Rights (Narrative) (Det
Program Rights (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Film, Disclosures [Abstract] | ||||
Program rights write-offs | $ 0 | $ 0 | $ 0 | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Investments [Abstract] | ||||||
Equity method investments | $ 83 | $ 83 | $ 93.7 | |||
Company sold its interest in a marketable equity security | $ 9.9 | |||||
Gain (loss) on marketable equity securities | (0.2) | $ (2.4) | 4.1 | $ (7.8) | ||
Investments in marketable equity securities | 0 | 0 | 5.8 | |||
Investments in non-marketable equity securities | $ 37.7 | $ 37.7 | $ 37.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 709,344 |
Purchase accounting adjustments | (1,086) |
Amortization of "second component" goodwill | (672) |
Foreign currency translation | (23,350) |
Ending balance | 684,236 |
Domestic Operations | |
Goodwill [Roll Forward] | |
Beginning balance | 353,470 |
Purchase accounting adjustments | (1,086) |
Amortization of "second component" goodwill | (672) |
Foreign currency translation | 0 |
Ending balance | 351,712 |
International and Other | |
Goodwill [Roll Forward] | |
Beginning balance | 355,874 |
Purchase accounting adjustments | 0 |
Amortization of "second component" goodwill | 0 |
Foreign currency translation | (23,350) |
Ending balance | $ 332,524 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Purchase accounting adjustments | $ (1,086) | ||||
Reduction in carrying amount of goodwill | 672 | ||||
Aggregate amortization expense for amortizable intangible assets | $ 10,400 | $ 9,400 | 21,000 | $ 18,900 | |
International and Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated impairment charges | $ 123,100 | 123,100 | $ 123,100 | ||
Purchase accounting adjustments | 0 | ||||
Reduction in carrying amount of goodwill | 0 | ||||
Domestic Operations | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Purchase accounting adjustments | (1,086) | ||||
Reduction in carrying amount of goodwill | $ 672 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Schedule of Finite and Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 789,004 | $ 806,976 |
Accumulated Amortization | (434,556) | (427,442) |
Net | 354,448 | 379,534 |
Trademarks | 19,900 | 19,900 |
Total intangible assets, gross | 808,904 | 826,876 |
Total intangible assets, net | 374,348 | 399,434 |
Affiliate and customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 634,476 | 649,543 |
Accumulated Amortization | (358,987) | (354,673) |
Net | $ 275,489 | 294,870 |
Affiliate and customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives (in years) | 6 years | |
Affiliate and customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives (in years) | 25 years | |
Advertiser relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 46,282 | 46,282 |
Accumulated Amortization | (32,339) | (30,235) |
Net | $ 13,943 | 16,047 |
Estimated useful lives (in years) | 11 years | |
Trade names and other amortizable intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 108,246 | 111,151 |
Accumulated Amortization | (43,230) | (42,534) |
Net | $ 65,016 | $ 68,617 |
Trade names and other amortizable intangible assets | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives (in years) | 3 years | |
Trade names and other amortizable intangible assets | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives (in years) | 20 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Schedule of Estimated Amortization Expense) (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 41,600 |
2023 | 41,428 |
2024 | 41,345 |
2025 | 39,654 |
2026 | $ 35,152 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Employee related costs | $ 91,101 | $ 128,388 |
Participations and residuals | 128,496 | 133,988 |
Interest | 36,950 | 36,922 |
Other accrued expenses | 42,260 | 41,109 |
Total accrued liabilities | $ 298,807 | $ 340,407 |
Long-term Debt (Summary of Long
Long-term Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,858,125 | $ 2,875,000 |
Unamortized discount | (20,979) | (23,167) |
Unamortized deferred financing costs | (11,723) | (13,363) |
Long-term debt, net | 2,825,423 | 2,838,470 |
Current portion of long-term debt | 33,750 | 33,750 |
Noncurrent portion of long-term debt | 2,791,673 | 2,804,720 |
Senior Notes | 5.00% Notes due April 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 400,000 | $ 400,000 |
Interest rate | 5% | 5% |
Senior Notes | 4.75% Notes due August 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 800,000 | $ 800,000 |
Interest rate | 4.75% | 4.75% |
Senior Notes | 4.25% Notes due February 2029 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,000,000 | $ 1,000,000 |
Interest rate | 4.25% | 4.25% |
Secured debt | Term Loan A Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 658,125 | $ 675,000 |
Repayment of line of credit | 16,900 | |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Remaining undrawn capacity | $ 500,000 |
Leases (Summary of Lease Assets
Leases (Summary of Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease asset | $ 111,673 | $ 125,866 |
Finance lease asset | 11,531 | 12,080 |
Total lease assets | 123,204 | 137,946 |
Operating lease liability, current | 33,336 | 32,929 |
Finance lease liability, current | 3,740 | 3,667 |
Total lease liabilities, current | 37,076 | 36,596 |
Operating lease liability, noncurrent | 111,213 | 128,319 |
Finance lease liability, noncurrent | 21,335 | 23,520 |
Total lease liabilities, noncurrent | 132,548 | 151,839 |
Total lease liabilities | $ 169,624 | $ 188,435 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net of accumulated depreciation of $313,611 and $286,133 | Property and equipment, net of accumulated depreciation of $313,611 and $286,133 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Operating and Finance Lease, Liability, Current | Operating and Finance Lease, Liability, Current |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Operating and Finance Lease, Liability, Current | Operating and Finance Lease, Liability, Current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total lease liabilities, noncurrent | Total lease liabilities, noncurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total lease liabilities, noncurrent | Total lease liabilities, noncurrent |
Fair Value Measurement (Financi
Fair Value Measurement (Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash equivalents | $ 80,013 | |
Marketable securities | $ 5,771 | |
Foreign currency derivatives | 366 | 196 |
Foreign currency derivatives | ||
Liabilities | ||
Foreign currency derivatives | 8,313 | 5,911 |
Level I | ||
Assets | ||
Cash equivalents | 80,013 | |
Marketable securities | 5,771 | |
Foreign currency derivatives | 0 | 0 |
Level I | Foreign currency derivatives | ||
Liabilities | ||
Foreign currency derivatives | 0 | 0 |
Level II | ||
Assets | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Foreign currency derivatives | 366 | 196 |
Level II | Foreign currency derivatives | ||
Liabilities | ||
Foreign currency derivatives | 8,313 | 5,911 |
Level III | ||
Assets | ||
Cash equivalents | 0 | |
Marketable securities | 0 | |
Foreign currency derivatives | 0 | 0 |
Level III | Foreign currency derivatives | ||
Liabilities | ||
Foreign currency derivatives | $ 0 | $ 0 |
Fair Value Measurement (Carryin
Fair Value Measurement (Carrying Values and Fair Values of the Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
5.00% Notes due April 2024 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate | 5% | 5% |
4.75% Notes due August 2025 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate | 4.75% | 4.75% |
4.25% Notes due February 2029 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate | 4.25% | 4.25% |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 2,825,423 | $ 2,838,470 |
Carrying Amount | Term Loan A Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 649,033 | 664,581 |
Carrying Amount | 5.00% Notes due April 2024 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 398,179 | 397,693 |
Carrying Amount | 4.75% Notes due August 2025 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 793,119 | 792,098 |
Carrying Amount | 4.25% Notes due February 2029 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 985,092 | 984,098 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 2,584,044 | 2,889,781 |
Estimated Fair Value | Term Loan A Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 651,544 | 670,781 |
Estimated Fair Value | 5.00% Notes due April 2024 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 387,500 | 403,500 |
Estimated Fair Value | 4.75% Notes due August 2025 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 740,000 | 818,000 |
Estimated Fair Value | 4.25% Notes due February 2029 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 805,000 | $ 997,500 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Fair Value of Derivative Instruments Included in Balance Sheets) (Details) - Derivatives not designated as hedging instruments - Foreign currency derivatives - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Prepaid expenses and other current assets | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative assets | $ 272 | $ 180 |
Other assets | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative assets | 94 | 16 |
Accrued liabilities | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative liabilities | 3,106 | 1,686 |
Other liabilities | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative liabilities | $ 5,207 | $ 4,225 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Other Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Foreign currency derivatives | Miscellaneous, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | $ (3,204) | $ (149) | $ (3,761) | $ (95) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 33,028 | $ 11,321 | $ 74,662 | $ 37,236 |
Effective tax rate | 27% | 21% | 27% | 21% |
Foreign tax credit carry forwards | $ 42,900 | $ 42,900 | ||
Valuation allowance | 42,900 | 42,900 | ||
Second component of tax deductible goodwill, net of tax | $ 500 | $ 500 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Apr. 06, 2022 claim | Jan. 20, 2021 defendant | Jul. 22, 2020 legal_matter | |
Loss Contingencies [Line Items] | ||||
Increase (decrease) in contractual obligations not reflected in the balance sheet | $ (76.5) | |||
Contractual obligation | $ 986.9 | |||
California Action | ||||
Loss Contingencies [Line Items] | ||||
Number of legal matters | legal_matter | 7 | |||
Number of defendants eliminated | defendant | 8 | |||
Number of remaining claims | claim | 2 |
Equity Plans (Narrative) (Detai
Equity Plans (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Deemed repurchases of restricted stock units | $ 20,309 | $ 32,327 | ||||
Share-based compensation expenses | $ 8,683 | $ 16,262 | $ 16,812 | $ 29,708 | ||
Total unrecognized share-based compensation costs, remaining period of recognition | 2 years 2 months 12 days | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares surrendered to the company for tax withholding (in shares) | 441 | 262,386 | ||||
Total unrecognized share-based compensation costs | $ 35,300 | $ 35,300 | $ 35,300 | |||
RSUs | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares vested in period (in shares) | 1,270 | 616,091 | ||||
New shares of company's class A common stock issued (in shares) | 829 | 353,705 | ||||
PRSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares surrendered to the company for tax withholding (in shares) | 155,103 | |||||
PRSUs | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares vested in period (in shares) | 344,157 | |||||
New shares of company's class A common stock issued (in shares) | 189,054 | |||||
2011 Stock Plan | RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted in period (in shares) | 51,044 | |||||
2016 Employee Stock Plan | RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted in period (in shares) | 628,508 | |||||
Vesting period (in years) | 3 years |
Noncontrolling Interests Activi
Noncontrolling Interests Activity - (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Beginning balance | $ 283,849 | $ 315,649 |
Net earnings | 8,528 | 10,139 |
Distributions | (22,180) | (10,351) |
Other | 529 | |
Distribution related to spin-off transaction | (8,000) | (8,040) |
Transfer to noncontrolling interest | (18,367) | |
Ending balance | $ 270,726 | $ 289,030 |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Apr. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Noncontrolling Interest [Line Items] | |||
Other | $ 8,000 | $ 8,040 | |
Transfer from redeemable noncontrolling interests | 18,400 | 18,367 | |
Payments to noncontrolling interests | 2,500 | 0 | |
Contingent consideration for purchase of noncontrolling interests | 2,806 | $ 0 | |
25/7 Media | |||
Noncontrolling Interest [Line Items] | |||
Percentage of interest acquired | 50% | ||
Consideration transferred | $ 7,100 | ||
Payments to noncontrolling interests | 2,500 | ||
Contingent consideration for purchase of noncontrolling interests | $ 4,600 | ||
Consideration transferred, fair value, net | 4,400 | ||
Consideration transferred, tax | $ 900 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2022 USD ($) installment | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Related Party Transaction [Line Items] | |||||
Net revenues from related parties | $ 1.2 | $ 1.3 | $ 2.5 | $ 2.5 | |
Selling, general and administrative charges from related parties | $ 0.7 | $ 0.5 | $ 1.3 | $ 1 | |
Affiliated Entity | 605, LLC | Subsequent Event | |||||
Related Party Transaction [Line Items] | |||||
Fees payable due to related party | $ 10.5 | ||||
Related party, number of installments due | installment | 5 | ||||
Related party, contract termination, notice term required | 30 days | ||||
Affiliated Entity | Director | 605, LLC | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 50% |
Cash Flows (Summary of Non-Cash
Cash Flows (Summary of Non-Cash Activities and Other Supplemental Data) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Non-Cash Investing and Financing Activities: | ||
Capital expenditures incurred but not yet paid | $ 6,002 | $ 1,758 |
Contingent consideration for purchase of noncontrolling interests | 2,806 | 0 |
Supplemental Data: | ||
Cash interest paid | 58,539 | 54,207 |
Income taxes paid, net | $ 33,793 | $ 45,058 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information (Summary of
Segment Information (Summary of Continuing Operations by Reportable Segment) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues, net | $ 738,025,000 | $ 771,392,000 | $ 1,450,182,000 | $ 1,463,133,000 |
Operating income | 153,203,000 | 68,256,000 | 327,880,000 | 237,964,000 |
Share-based compensation expenses | 8,683,000 | 16,262,000 | 16,812,000 | 29,708,000 |
Depreciation and amortization | 27,231,000 | 22,604,000 | 49,821,000 | 47,850,000 |
Impairment and other charges | 0 | 142,918,000 | 0 | 158,973,000 |
Restructuring and other related charges | 0 | 155,000 | 0 | 8,780,000 |
Cloud computing amortization | 2,364,000 | 642,000 | 3,271,000 | 906,000 |
Majority-owned equity investees AOI | 4,061,000 | (200,000) | 8,942,000 | 4,435,000 |
Adjusted operating income (loss) | 195,542,000 | 250,637,000 | 406,726,000 | 488,616,000 |
Operating Segments | Domestic Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 621,102,000 | 639,015,000 | 1,226,645,000 | 1,212,984,000 |
Operating income | 188,812,000 | 88,116,000 | 387,334,000 | 304,575,000 |
Share-based compensation expenses | 3,172,000 | 7,292,000 | 6,845,000 | 12,931,000 |
Depreciation and amortization | 13,439,000 | 11,716,000 | 25,575,000 | 25,089,000 |
Impairment and other charges | 143,000,000 | 143,000,000 | ||
Restructuring and other related charges | 216,000 | 2,643,000 | ||
Cloud computing amortization | 5,000 | 0 | 12,000 | 0 |
Majority-owned equity investees AOI | 4,061,000 | (200,000) | 8,942,000 | 4,435,000 |
Adjusted operating income (loss) | 209,489,000 | 250,140,000 | 428,708,000 | 492,673,000 |
Operating Segments | International and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 125,771,000 | 138,277,000 | 235,622,000 | 259,444,000 |
Operating income | 14,087,000 | 19,963,000 | 31,442,000 | 16,801,000 |
Share-based compensation expenses | 467,000 | 913,000 | 1,221,000 | 2,144,000 |
Depreciation and amortization | 4,633,000 | 4,328,000 | 9,536,000 | 9,277,000 |
Impairment and other charges | (82,000) | 15,973,000 | ||
Restructuring and other related charges | (17,000) | 4,473,000 | ||
Cloud computing amortization | 0 | 0 | 0 | 0 |
Majority-owned equity investees AOI | 0 | 0 | 0 | 0 |
Adjusted operating income (loss) | 19,187,000 | 25,105,000 | 42,199,000 | 48,668,000 |
Corporate / Inter-segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | (8,848,000) | (5,900,000) | (12,085,000) | (9,295,000) |
Operating income | (49,696,000) | (39,823,000) | (90,896,000) | (83,412,000) |
Share-based compensation expenses | 5,044,000 | 8,057,000 | 8,746,000 | 14,633,000 |
Depreciation and amortization | 9,159,000 | 6,560,000 | 14,710,000 | 13,484,000 |
Impairment and other charges | 0 | 0 | ||
Restructuring and other related charges | (44,000) | 1,664,000 | ||
Cloud computing amortization | 2,359,000 | 642,000 | 3,259,000 | 906,000 |
Majority-owned equity investees AOI | 0 | 0 | 0 | 0 |
Adjusted operating income (loss) | (33,134,000) | (24,608,000) | (64,181,000) | (52,725,000) |
Corporate / Inter-segment Eliminations | Domestic Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | (7,442,000) | (6,256,000) | (10,444,000) | (6,926,000) |
Corporate / Inter-segment Eliminations | International and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | (1,406,000) | 356,000 | (1,641,000) | (2,369,000) |
Subscription | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 403,726,000 | 405,980,000 | 807,886,000 | 787,840,000 |
Subscription | Operating Segments | Domestic Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 347,024,000 | 343,056,000 | 690,772,000 | 661,888,000 |
Subscription | Operating Segments | International and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 56,702,000 | 62,924,000 | 117,114,000 | 125,952,000 |
Subscription | Corporate / Inter-segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 0 | 0 | 0 | 0 |
Content licensing and other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 110,913,000 | 127,163,000 | 195,984,000 | 216,331,000 |
Content licensing and other | Operating Segments | Domestic Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 72,426,000 | 83,677,000 | 133,680,000 | 139,672,000 |
Content licensing and other | Operating Segments | International and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 47,335,000 | 49,386,000 | 74,389,000 | 85,954,000 |
Content licensing and other | Corporate / Inter-segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | (8,848,000) | (5,900,000) | (12,085,000) | (9,295,000) |
Distribution and other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 514,639,000 | 533,143,000 | 1,003,870,000 | 1,004,171,000 |
Distribution and other | Operating Segments | Domestic Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 419,450,000 | 426,733,000 | 824,452,000 | 801,560,000 |
Distribution and other | Operating Segments | International and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 104,037,000 | 112,310,000 | 191,503,000 | 211,906,000 |
Distribution and other | Corporate / Inter-segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | (8,848,000) | (5,900,000) | (12,085,000) | (9,295,000) |
Advertising | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 223,386,000 | 238,249,000 | 446,312,000 | 458,962,000 |
Advertising | Operating Segments | Domestic Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 201,652,000 | 212,282,000 | 402,193,000 | 411,424,000 |
Advertising | Operating Segments | International and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 21,734,000 | 25,967,000 | 44,119,000 | 47,538,000 |
Advertising | Corporate / Inter-segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information (Summary _2
Segment Information (Summary of Inter-Segment Eliminations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues, net | $ 738,025 | $ 771,392 | $ 1,450,182 | $ 1,463,133 |
Corporate / Inter-segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | (8,848) | (5,900) | (12,085) | (9,295) |
Corporate / Inter-segment Eliminations | Domestic Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | (7,442) | (6,256) | (10,444) | (6,926) |
Corporate / Inter-segment Eliminations | International and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | $ (1,406) | $ 356 | $ (1,641) | $ (2,369) |
Segment Information (Schedule o
Segment Information (Schedule of Revenues by Geographic Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues, net | $ 738,025 | $ 771,392 | $ 1,450,182 | $ 1,463,133 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 600,226 | 612,326 | 1,191,434 | 1,189,474 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | 97,146 | 119,555 | 180,071 | 201,591 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, net | $ 40,653 | $ 39,511 | $ 78,677 | $ 72,068 |
Segment Information (Long-lived
Segment Information (Long-lived Assets by Geographic Location) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 213,940 | $ 225,791 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 200,586 | 210,252 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 12,242 | 14,510 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 1,112 | $ 1,029 |