Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $0.01 per share | |
Trading Symbol | AMCX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001514991 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 32,558,862 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,484,408 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 690,522 | $ 570,576 |
Accounts receivable, trade (less allowance for doubtful accounts of $9,627 and $9,488) | 629,073 | 664,396 |
Current portion of program rights, net | 13,881 | 7,880 |
Prepaid expenses and other current assets | 316,925 | 380,518 |
Total current assets | 1,650,401 | 1,623,370 |
Property and equipment, net of accumulated depreciation of $418,046 and $403,708 | 147,972 | 159,237 |
Program rights, net | 1,753,270 | 1,802,653 |
Intangible assets, net | 258,913 | 268,558 |
Goodwill | 622,190 | 626,496 |
Deferred tax assets, net | 11,748 | 11,456 |
Operating lease right-of-use assets | 68,786 | 71,163 |
Other assets | 398,276 | 406,854 |
Total assets | 4,911,556 | 4,969,787 |
Current Liabilities: | ||
Accounts payable | 90,594 | 89,469 |
Accrued liabilities | 351,280 | 385,838 |
Current portion of program rights obligations | 286,870 | 301,221 |
Deferred revenue | 61,252 | 65,736 |
Current portion of long-term debt | 67,500 | 67,500 |
Current portion of lease obligations | 32,773 | 33,659 |
Total current liabilities | 890,269 | 943,423 |
Program rights obligations | 133,119 | 150,943 |
Long-term debt, net | 2,279,086 | 2,294,249 |
Lease obligations | 82,269 | 87,240 |
Deferred tax liabilities, net | 156,858 | 160,383 |
Other liabilities | 65,680 | 74,306 |
Total liabilities | 3,607,281 | 3,710,544 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 197,370 | 185,297 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 45,000 shares authorized; none issued | 0 | 0 |
Paid-in capital | 369,877 | 378,877 |
Accumulated earnings | 2,365,524 | 2,321,105 |
Treasury stock, at cost (34,172 and 34,593 shares Class A Common Stock, respectively) | (1,410,105) | (1,419,882) |
Accumulated other comprehensive loss | (245,803) | (232,831) |
Total AMC Networks stockholders' equity | 1,080,275 | 1,048,051 |
Non-redeemable noncontrolling interests | 26,630 | 25,895 |
Total stockholders' equity | 1,106,905 | 1,073,946 |
Total liabilities and stockholders' equity | 4,911,556 | 4,969,787 |
Class A Common Stock | ||
Stockholders' equity: | ||
Common stock | 667 | 667 |
Class B Common Stock | ||
Stockholders' equity: | ||
Common stock | $ 115 | $ 115 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts receivable, trade, allowance for doubtful accounts | $ 9,627 | $ 9,488 |
Property and equipment, accumulated depreciation | $ 418,046 | $ 403,708 |
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) | 66,730,000 | 66,670,000 |
Common stock, shares outstanding (in shares) | 32,559,000 | 32,077,000 |
Treasury stock (in shares) | 34,172,000 | 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, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenues, net | $ 596,461 | $ 717,447 |
Operating expenses: | ||
Technical and operating (excluding depreciation and amortization) | 271,576 | 326,729 |
Selling, general and administrative | 188,881 | 185,606 |
Depreciation and amortization | 25,826 | 25,875 |
Restructuring and other related charges | 0 | 5,933 |
Total operating expenses | 486,283 | 544,143 |
Operating income | 110,178 | 173,304 |
Other income (expense): | ||
Interest expense | (32,841) | (37,617) |
Interest income | 8,885 | 7,916 |
Miscellaneous, net | (5,190) | 4,589 |
Total other expense | (29,146) | (25,112) |
Income from operations before income taxes | 81,032 | 148,192 |
Income tax expense | (23,649) | (36,899) |
Net income including noncontrolling interests | 57,383 | 111,293 |
Net income attributable to noncontrolling interests | (11,580) | (7,683) |
Net income attributable to AMC Networks' stockholders | $ 45,803 | $ 103,610 |
Net income per share attributable to AMC Networks' stockholders: | ||
Basic (in dollars per share) | $ 1.04 | $ 2.37 |
Diluted (in dollars per share) | $ 1.03 | $ 2.36 |
Weighted average common shares: | ||
Basic (in shares) | 44,068 | 43,628 |
Diluted (in shares) | 44,600 | 43,837 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income including noncontrolling interests | $ 57,383 | $ 111,293 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (13,297) | 11,818 |
Comprehensive income | 44,086 | 123,111 |
Comprehensive income attributable to noncontrolling interests | (11,255) | (8,173) |
Comprehensive income attributable to AMC Networks' stockholders | $ 32,831 | $ 114,938 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock Class A Common Stock | Common Stock Class B Common Stock | Paid-in Capital | Accumulated Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total AMC Networks Stockholders’ Equity | Non-redeemable Noncontrolling Interests |
Beginning Balance at Dec. 31, 2022 | $ 853,813 | $ 661 | $ 115 | $ 360,251 | $ 2,105,641 | $ (1,419,882) | $ (239,798) | $ 806,988 | $ 46,825 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income attributable to AMC Networks’ stockholders | 103,610 | 103,610 | 103,610 | ||||||
Net income attributable to non-redeemable noncontrolling interests | 1,413 | 1,413 | |||||||
Distribution to noncontrolling member | (1,482) | (1,482) | |||||||
Other comprehensive income (loss) | 11,818 | 11,328 | 11,328 | 490 | |||||
Share-based compensation expenses | 5,882 | 5,882 | 5,882 | ||||||
Tax withholding associated with shares issued under employee stock plans | (6,012) | 4 | (6,016) | (6,012) | |||||
Ending Balance at Mar. 31, 2023 | 969,042 | 665 | 115 | 360,117 | 2,209,251 | (1,419,882) | (228,470) | 921,796 | 47,246 |
Beginning Balance at Dec. 31, 2023 | 1,073,946 | 667 | 115 | 378,877 | 2,321,105 | (1,419,882) | (232,831) | 1,048,051 | 25,895 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income attributable to AMC Networks’ stockholders | 45,803 | 45,803 | 45,803 | ||||||
Net income attributable to non-redeemable noncontrolling interests | 1,060 | 1,060 | |||||||
Redeemable noncontrolling interest adjustment to redemption fair value | (2,721) | (2,721) | (2,721) | ||||||
Other comprehensive income (loss) | (13,297) | (12,972) | (12,972) | (325) | |||||
Share-based compensation expenses | 6,075 | 6,075 | 6,075 | ||||||
Common stock issued under employee stock plans | 0 | (8,393) | (1,384) | 9,777 | |||||
Tax withholding associated with shares issued under employee stock plans | (3,961) | (3,961) | (3,961) | ||||||
Ending Balance at Mar. 31, 2024 | $ 1,106,905 | $ 667 | $ 115 | $ 369,877 | $ 2,365,524 | $ (1,410,105) | $ (245,803) | $ 1,080,275 | $ 26,630 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $ 57,383 | $ 111,293 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 25,826 | 25,875 |
Share-based compensation expenses related to equity classified awards | 6,075 | 5,645 |
Amortization and write-off of program rights | 202,552 | 187,073 |
Amortization of deferred carriage fees | 4,920 | 5,100 |
Unrealized foreign currency transaction loss | 2,504 | 1,626 |
Amortization of deferred financing costs and discounts on indebtedness | 1,750 | 1,938 |
Deferred income taxes | (4,011) | (6,269) |
Other, net | (2,230) | 103 |
Changes in assets and liabilities: | ||
Accounts receivable, trade (including amounts due from related parties, net) | 30,704 | 15,893 |
Prepaid expenses and other assets | 63,606 | 76,032 |
Program rights and obligations, net | (193,006) | (370,304) |
Deferred revenue | (4,575) | (64,702) |
Accounts payable, accrued liabilities and other liabilities | (40,629) | (121,822) |
Net cash provided by (used in) operating activities | 150,869 | (132,519) |
Cash flows from investing activities: | ||
Capital expenditures | (6,720) | (11,498) |
Proceeds from sale of investments | 0 | 4,493 |
Other investing activities, net | 3,936 | 0 |
Net cash used in investing activities | (2,784) | (7,005) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | (16,875) | (8,438) |
Deemed repurchases of restricted stock units | (3,961) | (6,012) |
Principal payments on finance lease obligations | (1,129) | (1,015) |
Distributions to noncontrolling interests | (1,168) | (11,502) |
Purchase of noncontrolling interests | 0 | (1,343) |
Net cash used in financing activities | (23,133) | (28,310) |
Net increase (decrease) in cash and cash equivalents from operations | 124,952 | (167,834) |
Effect of exchange rate changes on cash and cash equivalents | (5,006) | 1,764 |
Cash and cash equivalents at beginning of period | 570,576 | 930,002 |
Cash and cash equivalents at end of period | $ 690,522 | $ 763,932 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 five national programming networks, our streaming services, our AMC Studios operation and our film distribution business. Our programming networks are AMC, WE tv, BBC AMERICA, IFC, and SundanceTV. Our streaming services consist of AMC+ and our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE). Our AMC Studios operation produces original programming for our programming services and third parties and also licenses programming worldwide. Our film distribution business includes IFC Films, RLJ Entertainment Films and Shudder. The operating segment also includes AMC Networks Broadcasting & Technology, our technical services business, which primarily services the programming networks. • International : AMC Networks International ("AMCNI"), our international programming businesses consisting of a portfolio of channels distributed around the world. In 2024, the Company updated the name of its previously titled "International and Other" operating segment to "International" due to the divestiture of the 25/7 Media business on December 29, 2023, which was the sole component of the operating segment that comprised “Other.” This update does not constitute a change in segment reporting, but rather an update in name only. Prior period segment information contained in this report includes the results of the 25/7 Media business through the date of divestiture. Principles of Consolidation The consolidated financial statements include the accounts of AMC Networks and its subsidiaries in which a controlling financial 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, 2023 contained in the Company's Annual Report on Form 10-K (our "2023 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, 2024. Use of Estimates The preparation of financial statements in conformity with U.S. 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. Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company will incorporate the required disclosure updates for the 2025 annual financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Transaction Price Allocated to Future Performance Obligations As of March 31, 2024, 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) March 31, 2024 December 31, 2023 Balances from contracts with customers: Accounts receivable (including long-term receivables within Other assets) $ 719,746 $ 750,390 Contract assets, short-term (included in Prepaid expenses and other current assets) 2,364 2,364 Contract liabilities, short-term (Deferred revenue) 61,252 65,736 Revenue recognized for the three months ended March 31, 2024 and 2023 relating to the contract liabilities at December 31, 2023 and 2022 was $24.7 million and $82.6 million, respectively . In October 2023, the Company entered into an agreement enabling it to sell certain customer receivables to a financial institution on a recurring basis for cash. The transferred receivables will be fully guaranteed by a bankruptcy-remote entity and the financial institution that purchases the receivables will have no recourse to the Company's other assets in the event of non-payment by the customers. The Company can sell an indefinite amount of customer receivables under the agreement on a revolving basis, but the outstanding balance of unpaid customer receivables to the financial institution cannot exceed the initial program limit of $125.0 million at any given time. As of March 31, 2024, the Company had not yet sold any customer receivables under this agreement. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Basic weighted average common shares outstanding 44,068 43,628 Effect of dilution: Restricted stock units 532 209 Diluted weighted average common shares outstanding 44,600 43,837 As of March 31, 2024 and March 31, 2023, 0.2 million and 0.8 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 months ended March 31, 2024 and 2023, the Company did not repurchase any shares of its Class A Common Stock. As of March 31, 2024, the Company had $135.3 million of authorization remaining for repurchase under the Stock Repurchase Program. |
Restructuring and Other Related
Restructuring and Other Related Charges | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | Restructuring and Other Related Charges There were no restructuring and other related charges for t he three months ended March 31, 2024. Restructuring and other related charges were $5.9 million for t he three months ended March 31, 2023 , consisting primarily of severance and other personnel costs related to a restructuring plan (the "Plan") that commenced on November 28, 2022. The Plan was designed to achieve significant cost reductions in light of “cord cutting” and the related impacts being felt across the media industry as well as the broader economic outlook. The Plan encompassed initiatives that included, among other things, strategic programming assessments and organizational restructuring costs . The Plan was intended to improve the organizational design of the Company through the elimination of certain roles and centralization of certain functional areas of the Company. The programming assessments pertained to a broad mix of owned and licensed content, including legacy television series and films that will no longer be in active rotation on the Company’s linear or streaming platforms. The following table summarizes the restructuring and other related charges recognized by operating segment: (In thousands) Three Months Ended March 31, 2023 Domestic Operations $ 818 International 1,385 Corporate / Inter-segment eliminations 3,730 Total restructuring and other related charges $ 5,933 The following table summarizes the accrued restructuring and other related costs: (In thousands) Severance and Employee-Related Costs Content Impairments and Other Exit Costs Total Balance at December 31, 2023 $ 8,726 $ 5,008 $ 13,734 Cash payments (3,488) (1,333) (4,821) Other (882) (128) (1,010) Balance at March 31, 2024 $ 4,356 $ 3,547 $ 7,903 |
Program Rights
Program Rights | 3 Months Ended |
Mar. 31, 2024 | |
Film, Disclosures [Abstract] | |
Program Rights | Program Rights Total capitalized produced and licensed content by predominant monetization strategy is as follows: March 31, 2024 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 114,384 $ 587,345 $ 701,729 In-production and in-development — 246,276 246,276 Total owned original program rights, net $ 114,384 $ 833,621 $ 948,005 Licensed program rights, net: Licensed film and acquired series $ 732 $ 572,597 $ 573,329 Licensed originals — 162,587 162,587 Advances and other production costs — 83,230 83,230 Total licensed program rights, net 732 818,414 819,146 Program rights, net $ 115,116 $ 1,652,035 $ 1,767,151 Current portion of program rights, net $ 13,881 Program rights, net (long-term) 1,753,270 $ 1,767,151 December 31, 2023 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 139,363 $ 532,839 $ 672,202 In-production and in-development — 284,455 284,455 Total owned original program rights, net $ 139,363 $ 817,294 $ 956,657 Licensed program rights, net: Licensed film and acquired series $ 973 $ 599,607 $ 600,580 Licensed originals 1,555 169,489 171,044 Advances and other production costs — 82,252 82,252 Total licensed program rights, net 2,528 851,348 853,876 Program rights, net $ 141,891 $ 1,668,642 $ 1,810,533 Current portion of program rights, net $ 7,880 Program rights, net (long-term) 1,802,653 $ 1,810,533 Amortization, including write-offs, 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 March 31, 2024 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights $ 24,852 $ 60,106 $ 84,958 Licensed program rights 1,631 115,963 117,594 Program rights amortization $ 26,483 $ 176,069 $ 202,552 Three Months Ended March 31, 2023 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights $ 21,303 $ 44,936 $ 66,239 Licensed program rights 1,664 119,170 120,834 Program rights amortization $ 22,967 $ 164,106 $ 187,073 For programming rights predominantly monetized individually or as a group, the Company periodically reviews the programming usefulness of 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 events or changes in circumstances indicate that the fair value of a film predominantly monetized individually or a film group is less than its unamortized cost, the Company will write off the excess to technical and operating expenses in the condensed consolidated statements of income. Program rights with no future programming usefulness are substantively abandoned resulting in the write-off of remaining unamortized cost. There were no significant program rights write-offs included in technical and operating expenses f or the three months ended March 31, 2024 or 2023. In the normal course of business, the Company may qualify for tax incentives through eligible investments in productions. Receivables related to tax incentives earned on production spend as of March 31, 2024 consisted of $235.9 million recorded in Prepaid expenses and other current assets and $45.9 million recorded in Other assets. Receivables related to tax incentives earned on production spend as of December 31, 2023 consisted of $230.3 million recorded in Prepaid expenses and other current assets and $49.9 million recorded in Other assets. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
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 Equity method investments were $83.6 million and $83.1 million at March 31, 2024 and December 31, 2023, respectively. Non-marketable Equity Securities Investments in non-marketable equity securities were $42.6 million and $41.6 million a t March 31, 2024 and December 31, 2023, respectively. No gains or losses were recorded on non-marketable equity securities for the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company recognized an impairment charge of $1.2 million on an investment, which is included in Miscellaneous, net in the condensed consolidated statements of income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 $ 348,732 $ 277,764 $ 626,496 Foreign currency translation — (4,306) (4,306) March 31, 2024 $ 348,732 $ 273,458 $ 622,190 As of March 31, 2024 and December 31, 2023, accumulated impairment charges in the International segment totaled $185.5 million. The following tables summarize information relating to the Company's identifiable intangible assets: (In thousands) March 31, 2024 Gross Accumulated Amortization Net Estimated Useful Lives Amortizable intangible assets: Affiliate and customer relationships $ 615,455 $ (426,361) $ 189,094 6 to 25 years Advertiser relationships 46,282 (43,280) 3,002 11 years Trade names and other amortizable intangible assets 90,474 (43,557) 46,917 3 to 20 years Total amortizable intangible assets 752,211 (513,198) 239,013 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 772,111 $ (513,198) $ 258,913 (In thousands) December 31, 2023 Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 618,778 $ (421,968) $ 196,810 Advertiser relationships 46,282 (42,806) 3,476 Trade names and other amortizable intangible assets 91,134 (42,762) 48,372 Total amortizable intangible assets 756,194 (507,536) 248,658 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 776,094 $ (507,536) $ 268,558 Aggregate amortization expense for amortizable intangible assets for the three months ended March 31, 2024 and 2023 was $8.6 million and $10.4 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, 2024 $ 36,332 2025 35,061 2026 32,539 2027 27,835 2028 25,695 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: (In thousands) March 31, 2024 December 31, 2023 Employee related costs $ 92,063 $ 93,866 Participations and residuals 165,784 164,375 Interest 12,027 31,749 Restructuring and other related charges 7,903 12,149 Other accrued expenses 73,503 83,699 Total accrued liabilities $ 351,280 $ 385,838 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt The following table summarizes the Company's long-term debt included in the condensed consolidated balance sheet as follows: (In thousands) March 31, 2024 December 31, 2023 Senior Secured Credit Facility: (a) Term Loan A Facility $ 590,625 $ 607,500 Senior Notes: 4.75% Notes due August 2025 774,729 774,729 4.25% Notes due February 2029 1,000,000 1,000,000 Total long-term debt 2,365,354 2,382,229 Unamortized discount (12,875) (13,873) Unamortized deferred financing costs (5,893) (6,607) Long-term debt, net 2,346,586 2,361,749 Current portion of long-term debt 67,500 67,500 Noncurrent portion of long-term debt $ 2,279,086 $ 2,294,249 (a) The Company's revolving credit facility remained undrawn at March 31, 2024. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company. During the three months ended March 31, 2024, 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. Amendment to Credit Agreement On April 9, 2024, AMC Networks entered into Amendment No. 3 ("Amendment No. 3") to the Second Amended and Restated Credit Agreement, dated as of July 28, 2017 (as amended to date and by Amendment No. 3, the “Credit Agreement”), among AMC Networks and its subsidiary, AMC Network Entertainment LLC (“AMC Network Entertainment”), as the initial borrowers, certain of AMC Networks' subsidiaries, as restricted subsidiaries, Bank of America, N.A., as an L/C Issuer, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, Collateral Agent and an L/C Issuer. In connection with Amendment No. 3, AMC Networks made a partial prepayment of the Term Loan A facility under the Credit Agreement (the “Term Loan A Facility”), bringing the total principal amount outstanding under the Term Loan A Facility to $425 million, and reduced the revolving credit facility under the Credit Agreement (the “Revolving Credit Facility”) to $175 million. In addition, pursuant to Amendment No. 3, the maturity date of $325 million principal amount of loans under the Term Loan A Facility as well as all of the commitments under the Revolving Credit Facility has been extended to April 9, 2028. The maturity date of the remaining $100 million principal amount of loans under the Term Loan A Facility continues to be February 8, 2026. Amendment No. 3 also includes certain other modifications to covenants and other provisions of the Credit Agreement. Senior Secured Notes Offering On April 9, 2024, AMC Networks issued $875 million aggregate principal amount of 10.25% Senior Secured Notes due January 15, 2029 (the “Secured Notes”). AMC Networks received net proceeds of $863 million, after deducting underwriting discounts. The Secured Notes are guaranteed by AMC Network Entertainment and AMC Networks' subsidiaries that guarantee the Credit Agreement (the "Guarantors"). The Secured Notes were issued pursuant to an Indenture, dated as of April 9, 2024 (the “Indenture”), among AMC Networks, the Guarantors and U.S. Bank Trust Company, National Association, as Trustee. The Secured Notes accrue interest at a rate of 10.25% per annum and mature on January 15, 2029. Interest is payable semiannually on January 15 and July 15 of each year, commencing on July 15, 2024. The Secured Notes are AMC Networks’ general senior secured obligations, secured on a first-priority basis by substantially all of AMC Networks’ and the Guarantors’ assets and property, subject to certain liens permitted under the Indenture, and rank equally with all of AMC Networks’ existing and future senior indebtedness, senior in right of payment to AMC Networks’ future subordinated indebtedness and effectively senior to any of AMC Networks’ existing and future unsecured indebtedness or indebtedness that is secured by a lien ranking junior to the lien securing the Notes, in each case, to the extent of the value of the collateral. On or after January 15, 2026, AMC Networks may redeem the Secured Notes, at its option, in whole or in part, at any time and from time to time, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest thereon, to the applicable redemption date, if redeemed during the twelve month period beginning on January 15 of the years indicated below: Year Percentage 2026 105.125% 2027 102.563% 2028 and thereafter 100.000% In addition to the optional redemption of the Secured Notes described above, at any time prior to January 15, 2026, AMC Networks may redeem up to 40% of the aggregate principal amount of the Secured Notes at a redemption price equal to 110.250% of the principal amount thereof, plus accrued and unpaid interest and additional interest, if any, using the net proceeds of certain equity offerings. At any time prior to January 15, 2026, AMC Networks may also redeem up to 10% of the aggregate principal amount of the Secured Notes during any twelve month period at a redemption price equal to 103.000% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon to, but excluding, the redemption date. Finally, at any time prior to January 15, 2026, AMC Networks may redeem the Secured Notes, at its option in whole or in part, at any time, at a redemption price equal to 100% of the principal amount thereof to be redeemed plus the “Applicable Premium” calculated as described in the Indenture at the Treasury rate + 50 basis points, and accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. Tender Offer and Redemption of Senior Notes due August 2025 On April 22, 2024, AMC Networks completed a cash tender offer (the "Offer") to purchase any and all outstanding 4.75% Senior Notes due 2025 and redeemed all 4.75% Senior Notes due 2025 that remained outstanding after completion of the Offer at a price of 100.000% of their principal amount, plus accrued and unpaid interest to, but not including, the redemption date. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The following table summarizes the leases included in the condensed consolidated balance sheets as follows: (In thousands) Balance Sheet Location March 31, 2024 December 31, 2023 Assets Operating Operating lease right-of-use assets $ 68,786 $ 71,163 Finance Property and equipment, net 9,609 9,884 Total lease assets $ 78,395 $ 81,047 Liabilities Current: Operating Current portion of lease obligations $ 28,004 $ 28,971 Finance Current portion of lease obligations 4,769 4,688 $ 32,773 $ 33,659 Noncurrent: Operating Lease obligations $ 69,105 $ 72,797 Finance Lease obligations 13,164 14,443 $ 82,269 $ 87,240 Total lease liabilities $ 115,042 $ 120,899 |
Leases | Leases The following table summarizes the leases included in the condensed consolidated balance sheets as follows: (In thousands) Balance Sheet Location March 31, 2024 December 31, 2023 Assets Operating Operating lease right-of-use assets $ 68,786 $ 71,163 Finance Property and equipment, net 9,609 9,884 Total lease assets $ 78,395 $ 81,047 Liabilities Current: Operating Current portion of lease obligations $ 28,004 $ 28,971 Finance Current portion of lease obligations 4,769 4,688 $ 32,773 $ 33,659 Noncurrent: Operating Lease obligations $ 69,105 $ 72,797 Finance Lease obligations 13,164 14,443 $ 82,269 $ 87,240 Total lease liabilities $ 115,042 $ 120,899 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: • Level I - Quoted prices for identical instruments in active markets. • Level II - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level III - Instruments whose significant value drivers are unobservable. The following table presents for each of these hierarchy levels, the Company's financial assets and liabilities that are measured at fair value on a recurring basis at March 31, 2024 and December 31, 2023: (In thousands) Level I Level II Level III Total At March 31, 2024: Assets Cash equivalents $ 61,894 $ — $ — $ 61,894 Foreign currency derivatives — 4,198 — 4,198 Liabilities Foreign currency derivatives — 3,221 — 3,221 At December 31, 2023: Assets Foreign currency derivatives $ — $ 8,277 $ — $ 8,277 Liabilities Foreign currency derivatives — 2,295 — 2,295 The Company's cash equivalents (comprised of money market mutual funds) 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 March 31, 2024 and December 31, 2023, 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) March 31, 2024 Carrying Estimated Debt instruments: Term loan A facility $ 586,259 $ 574,383 4.75% Notes due August 2025 771,617 770,855 4.25% Notes due February 2029 988,710 707,500 $ 2,346,586 $ 2,052,738 (In thousands) December 31, 2023 Carrying Estimated Debt instruments: Term loan A facility $ 602,551 $ 577,884 4.75% Notes due August 2025 771,013 745,677 4.25% Notes due February 2029 988,185 780,670 $ 2,361,749 $ 2,104,231 Fair value estimates related to the Company's debt instruments presented above are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
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 trade receivables and accounts payable (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 March 31, 2024 December 31, 2023 Derivatives not designated as hedging instruments: Assets: Foreign currency derivatives Prepaid expenses and other current assets $ 689 $ 378 Foreign currency derivatives Other assets 3,509 7,899 Liabilities: Foreign currency derivatives Accrued liabilities $ 989 $ 1,065 Foreign currency derivatives Current portion of program rights obligations — 8 Foreign currency derivatives Other liabilities 2,232 1,222 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 (Loss) Recognized in Earnings on Derivatives Amount of Gain (Loss) Recognized in Earnings on Derivatives Three Months Ended March 31, 2024 2023 Foreign currency derivatives Miscellaneous, net $ (5,030) $ 4,905 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2024, income tax expense was $23.6 million, representing an effective rate of 29%, as compared to the federal statutory rate of 21%. The effective rate differs from the federal statutory rate due primarily to state and local income tax expense, tax expense related to non-deductible compensation, tax expense for shortfalls related to share-based compensation and tax expense for an increase in the valuation allowance for foreign taxes. For the three months ended March 31, 2023, income tax expense was $36.9 million, representing an effective rate of 25%, as compared to the federal statutory rate of 21%. The effective rate differs from the federal statutory rate due primarily to state and local income tax expense and tax expense for shortfalls related to share-based compensation. At March 31, 2024, the Company had foreign tax credit carry forwards of approximately $50.3 million, expiring on various dates from 2024 through 2034. These carryforwards have been reduced to zero by a valuation allowance of $50.3 million as it is more likely than not that these carry forwards will not be realized. As of March 31, 2024, the Company's consolidated cash and cash equivalents balance of $690.5 million included approximately $132.1 million held by foreign subsidiaries. Of this amount, approximately $20.0 million is expected to be repatriated to the United States with the remaining amount continuing to be reinvested in foreign operations. Tax expense related to the expected repatriation amount has been accrued in prior periods and the Company does not expect to incur any significant, additional taxes related to the remaining balance. In December 2021, the Organization for Economic Co-operation and Development (OECD) released the Pillar Two Model Rules, which aim to reform international corporate taxation rules, including the implementation of a global minimum tax rate. The Company began the phased implementation of the Pillar Two Model Rules in the first quarter of 2024 and as of March 31, 2024, the Pillar Two minimum tax requirement is not expected to have a material impact upon the Company's full year results of operations or financial position. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As of March 31, 2024, the Company's contractual obligations not reflected on the Company's condensed consolidated balance sheet increased $6.9 million, as compared to December 31, 2023, to $880.5 million. The increase was primarily driven by additional program rights commitments, partially offset by 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. On January 26, 2023, the Plaintiffs filed a notice of appeal of the court’s post-trial, demurrer, and summary adjudication decisions. The parties entered into an agreement to resolve through confidential binding arbitration the remaining claims in the litigation (consisting mainly of ordinary course profit participation audit claims), and as a result, the court formally dismissed the case. The arbitration to resolve the two remaining claims for breach of contract was held between October 16 through October 20, 2023. On March 12, 2024, the arbitral panel issued a decision awarding the Plaintiffs the sum of approximately $7.8 million. The arbitral panel's decision did not have a material impact on the Company's financial condition or results of operations. On November 14, 2022, the Plaintiffs filed a separate complaint in California Superior Court (the “MFN Litigation”) in connection with the Company’s July 16, 2021 settlement agreement with Frank Darabont (“Darabont”), Ferenc, Inc., Darkwoods Productions, Inc., and Creative Artists Agency, LLC (the “Darabont Parties”), which resolved litigations the Darabont Parties had brought in connection with Darabont's rendering services as a writer, director and producer of the television series entitled The Walking Dead and the agreement between the parties related thereto (the “Darabont Settlement”). Plaintiffs assert claims for breach of contract, alleging that the Company breached the most favored nations (“MFN”) provisions of Plaintiffs’ contracts with the Company by failing to pay them additional contingent compensation as a result of the Darabont Settlement (the “MFN Litigation”). Plaintiffs claim in the MFN Litigation that they are entitled to actual and compensatory damages in excess of $200 million. The Plaintiffs also brought a cause of action to enjoin an arbitration the Company commenced in May 2022 concerning the same dispute. On December 15, 2022, the Company removed the MFN Litigation to the United States District Court for the Central District of California. On January 13, 2023, the Company filed a motion to dismiss the MFN Litigation and informed the court that the Company had withdrawn the arbitration Plaintiffs sought to enjoin. On March 25, 2024, the Court issued a ruling denying the Company’s motion to dismiss and the matter is proceeding to discovery. The trial for this matter, previously scheduled for September 17, 2024, has been rescheduled to May 6, 2025 . The Company believes that the asserted claims are without merit and will vigorously defend against them if they are not dismissed. 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 actions and claims arising from alleged violations of the federal Video Privacy Protection Act (the “VPPA”) and analogous state laws. In addition to certain putative class actions currently pending, the Company is facing a series of arbitration claims managed by multiple plaintiffs’ law firms. The class action complaints and the arbitration claims all allege that the Company’s use of a Meta Platforms, Inc. pixel on the websites for certain of its subscription video services, including AMC+ and Shudder, violated the privacy protection provisions of the VPPA and its state law analogues. On October 27, 2023, the Company reached a settlement with multiple plaintiffs relating to their pending class actions alleging violations of the VPPA and analogous state laws. On January 10, 2024, the class action settlement was preliminarily approved by the United States District Court for the Southern District of New York. The Company has also reached settlements to resolve the arbitration claims. All of the settlements reached by the Company in connection with these matters are expected to be reimbursed by the Company’s insurance carriers. The Company is party to various lawsuits and claims in the ordinary course of business, including the matters described above, as well as other lawsuits and claims relating to employment, intellectual property, and privacy and data protection matters. Although the outcome of these matters cannot be predicted with certainty and while the impact of these matters on the Company's results of operations in any particular subsequent reporting period could be material, management does not believe that the resolution of these matters will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due. |
Equity Plans
Equity Plans | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Plans | Equity Plans During the first quarter of 2024, AMC Networks granted 2,016,192 restricted stock units ("RSUs") to certain executive officers and employees under the AMC Networks Inc. Amended and Restated 2016 Employee Stock Plan, which vest ratably over a three-year period. During the three months ended March 31, 2024, 813,111 RSUs of AMC Networks Class A Common Stock previously issued to employees of the Company vested. On the vesting dat e, 331,383 RSUs were surrendered to AMC Networks to cover the required statutory tax withholding obligations an d 481,728 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. The units surrendered during the three months ended March 31, 2024 h ad an aggregate value of $4.0 million , which has been reflected as a financing activity in the condensed consolidated statement of cash flows for the three months ended March 31, 2024. The Company recorded share-based compensation expenses of $6.1 million and $5.9 million (including $0.3 million recorded as part of Restructuring and other related charges) for the three months ended March 31, 2024 and 2023, respectively. Share-based compensation expenses are recognized in the condensed consolidated statements of income as part of Selling, general and administrative expenses. As of March 31, 2024, there was $41.9 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 2.4 years . |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2024 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests In connection with the Company's previous acquisitions of New Video Channel America L.L.C (owner of the cable channel BBC America) and RLJ Entertainment, the terms of the acquisition agreements provide the noncontrolling members with a right to put all of their noncontrolling interest to subsidiaries of the Company at a future time. Since the exercise of these put rights is outside the Company's control, the noncontrolling interest in each entity is presented as a redeemable noncontrolling interest outside of stockholders' equity on the Company's condensed consolidated balance sheet. The following tables summarize activity related to redeemable noncontrolling interest for the three months ended March 31, 2024 and 2023: (In thousands) Three Months Ended March 31, 2024 December 31, 2023 $ 185,297 Net earnings 10,520 Distributions (1,168) Adjustment to redemption fair value 2,721 March 31, 2024 $ 197,370 (In thousands) Three Months Ended March 31, 2023 December 31, 2022 $ 253,669 Net earnings 6,270 Distributions (10,020) March 31, 2023 $ 249,919 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company and its related parties enter into transactions with each other in the ordinary course of business. Revenues, net from related parties amounted to $1.3 million and $1.3 million for the three months ended March 31, 2024 and 2023, respectively. Amounts charged to the Company, included in Selling, general and administrative expenses, pursuant to transactions with its related parties amounted to $0.4 million and $3.3 million for the three months ended March 31, 2024 and 2023, respectively. |
Cash Flows
Cash Flows | 3 Months Ended |
Mar. 31, 2024 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |
Cash Flows | Cash Flows The following table details the Company's non-cash investing and financing activities and other supplemental data: (In thousands) Three Months Ended March 31, 2024 2023 Non-Cash Investing and Financing Activities: Operating lease additions $ 2,971 $ — Capital expenditures incurred but not yet paid 660 5,606 Supplemental Data: Cash interest paid 50,801 50,791 Income tax (refunds) payments, net (27,738) 6,507 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company classifies its operations into two operating segments: Domestic Operations and International. These operating segments represent strategic business units that are managed separately. In 2024, the Company updated the name of its previously titled "International and Other" operating segment to "International" due to the divestiture of the 25/7 Media business on December 29, 2023, which was the sole component of the operating segment that comprised “Other.” This update does not constitute a change in segment reporting, but rather an update in name only. Prior period segment information contained in this report includes the results of the 25/7 Media business through the date of divestiture. 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 March 31, 2024 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 322,558 $ 50,849 $ — $ 373,407 Content licensing and other 61,814 3,232 (3,370) 61,676 Distribution and other 384,372 54,081 (3,370) 435,083 Advertising 139,854 21,524 — 161,378 Consolidated revenues, net $ 524,226 $ 75,605 $ (3,370) $ 596,461 Operating income (loss) $ 142,017 $ 8,609 $ (40,448) $ 110,178 Share-based compensation expenses 3,230 766 2,079 6,075 Depreciation and amortization 10,027 4,025 11,774 25,826 Cloud computing amortization 3,548 — — 3,548 Majority-owned equity investees AOI 3,497 — — 3,497 Adjusted operating income (loss) $ 162,319 $ 13,400 $ (26,595) $ 149,124 (In thousands) Three Months Ended March 31, 2023 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 347,530 $ 56,690 $ — $ 404,220 Content licensing and other 103,263 32,860 (2,479) 133,644 Distribution and other 450,793 89,550 (2,479) 537,864 Advertising 161,061 18,522 — 179,583 Consolidated revenues, net $ 611,854 $ 108,072 $ (2,479) $ 717,447 Operating income (loss) $ 199,488 $ 14,142 $ (40,326) $ 173,304 Share-based compensation expenses 4,447 839 359 5,645 Depreciation and amortization 11,854 4,771 9,250 25,875 Restructuring and other related charges 818 1,385 3,730 5,933 Cloud computing amortization 5 — 2,225 2,230 Majority-owned equity investees AOI 2,776 — — 2,776 Adjusted operating income (loss) $ 219,388 $ 21,137 $ (24,762) $ 215,763 Subscription revenues in the Domestic Operations segment include revenues related to the Company's streaming services of $145.1 million and $140.9 million for the three months ended March 31, 2024 and 2023. Corporate overhead costs not allocated to the segments include costs such as executive salaries and benefits and costs of maintaining corporate headquarters, facilities and common support functions. Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International segments. (In thousands) Three Months Ended March 31, 2024 2023 Inter-segment revenues Domestic Operations $ (1,845) $ (2,214) International (1,525) (265) $ (3,370) $ (2,479) The table below summarizes revenues based on customer location: (In thousands) Three Months Ended March 31, 2024 2023 Revenues United States $ 484,093 $ 606,228 Europe 77,251 73,767 Other 35,117 37,452 $ 596,461 $ 717,447 One customer within the Domestic Operations segment accounted for approximately 15% and 13% of consolidated revenues, net for the three months ended March 31, 2024 and 2023, respectively. The table below summarizes property and equipment based on asset location: (In thousands) March 31, 2024 December 31, 2023 Property and equipment, net United States $ 135,788 $ 146,314 Europe 10,930 11,850 Other 1,254 1,073 $ 147,972 $ 159,237 |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 financial 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, 2023 contained in the Company's Annual Report on Form 10-K (our "2023 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, 2024. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. 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. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company will incorporate the required disclosure updates for the 2025 annual financial statements. |
Program Rights | For programming rights predominantly monetized individually or as a group, the Company periodically reviews the programming usefulness of 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 events or changes in circumstances indicate that the fair value of a film predominantly monetized individually or a film group is less than its unamortized cost, the Company will write off the excess to technical and operating expenses in the condensed consolidated statements of income. Program rights with no future programming usefulness are substantively abandoned resulting in the write-off of remaining unamortized cost. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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) March 31, 2024 December 31, 2023 Balances from contracts with customers: Accounts receivable (including long-term receivables within Other assets) $ 719,746 $ 750,390 Contract assets, short-term (included in Prepaid expenses and other current assets) 2,364 2,364 Contract liabilities, short-term (Deferred revenue) 61,252 65,736 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Basic weighted average common shares outstanding 44,068 43,628 Effect of dilution: Restricted stock units 532 209 Diluted weighted average common shares outstanding 44,600 43,837 |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2023 Domestic Operations $ 818 International 1,385 Corporate / Inter-segment eliminations 3,730 Total restructuring and other related charges $ 5,933 The following table summarizes the accrued restructuring and other related costs: (In thousands) Severance and Employee-Related Costs Content Impairments and Other Exit Costs Total Balance at December 31, 2023 $ 8,726 $ 5,008 $ 13,734 Cash payments (3,488) (1,333) (4,821) Other (882) (128) (1,010) Balance at March 31, 2024 $ 4,356 $ 3,547 $ 7,903 |
Program Rights (Tables)
Program Rights (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Film, Disclosures [Abstract] | |
Schedule of Program Rights by Predominant Monetization Strategy | Total capitalized produced and licensed content by predominant monetization strategy is as follows: March 31, 2024 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 114,384 $ 587,345 $ 701,729 In-production and in-development — 246,276 246,276 Total owned original program rights, net $ 114,384 $ 833,621 $ 948,005 Licensed program rights, net: Licensed film and acquired series $ 732 $ 572,597 $ 573,329 Licensed originals — 162,587 162,587 Advances and other production costs — 83,230 83,230 Total licensed program rights, net 732 818,414 819,146 Program rights, net $ 115,116 $ 1,652,035 $ 1,767,151 Current portion of program rights, net $ 13,881 Program rights, net (long-term) 1,753,270 $ 1,767,151 December 31, 2023 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights, net: Completed $ 139,363 $ 532,839 $ 672,202 In-production and in-development — 284,455 284,455 Total owned original program rights, net $ 139,363 $ 817,294 $ 956,657 Licensed program rights, net: Licensed film and acquired series $ 973 $ 599,607 $ 600,580 Licensed originals 1,555 169,489 171,044 Advances and other production costs — 82,252 82,252 Total licensed program rights, net 2,528 851,348 853,876 Program rights, net $ 141,891 $ 1,668,642 $ 1,810,533 Current portion of program rights, net $ 7,880 Program rights, net (long-term) 1,802,653 $ 1,810,533 |
Schedule of Amortization of Owned and Licensed Program Rights | Amortization, including write-offs, 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 March 31, 2024 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights $ 24,852 $ 60,106 $ 84,958 Licensed program rights 1,631 115,963 117,594 Program rights amortization $ 26,483 $ 176,069 $ 202,552 Three Months Ended March 31, 2023 (In thousands) Predominantly Monetized Individually Predominantly Monetized as a Group Total Owned original program rights $ 21,303 $ 44,936 $ 66,239 Licensed program rights 1,664 119,170 120,834 Program rights amortization $ 22,967 $ 164,106 $ 187,073 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 $ 348,732 $ 277,764 $ 626,496 Foreign currency translation — (4,306) (4,306) March 31, 2024 $ 348,732 $ 273,458 $ 622,190 |
Schedule of Finite-Lived Intangible Assets | The following tables summarize information relating to the Company's identifiable intangible assets: (In thousands) March 31, 2024 Gross Accumulated Amortization Net Estimated Useful Lives Amortizable intangible assets: Affiliate and customer relationships $ 615,455 $ (426,361) $ 189,094 6 to 25 years Advertiser relationships 46,282 (43,280) 3,002 11 years Trade names and other amortizable intangible assets 90,474 (43,557) 46,917 3 to 20 years Total amortizable intangible assets 752,211 (513,198) 239,013 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 772,111 $ (513,198) $ 258,913 (In thousands) December 31, 2023 Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 618,778 $ (421,968) $ 196,810 Advertiser relationships 46,282 (42,806) 3,476 Trade names and other amortizable intangible assets 91,134 (42,762) 48,372 Total amortizable intangible assets 756,194 (507,536) 248,658 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 776,094 $ (507,536) $ 268,558 |
Schedule of Indefinite-Lived Intangible Assets | The following tables summarize information relating to the Company's identifiable intangible assets: (In thousands) March 31, 2024 Gross Accumulated Amortization Net Estimated Useful Lives Amortizable intangible assets: Affiliate and customer relationships $ 615,455 $ (426,361) $ 189,094 6 to 25 years Advertiser relationships 46,282 (43,280) 3,002 11 years Trade names and other amortizable intangible assets 90,474 (43,557) 46,917 3 to 20 years Total amortizable intangible assets 752,211 (513,198) 239,013 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 772,111 $ (513,198) $ 258,913 (In thousands) December 31, 2023 Gross Accumulated Amortization Net Amortizable intangible assets: Affiliate and customer relationships $ 618,778 $ (421,968) $ 196,810 Advertiser relationships 46,282 (42,806) 3,476 Trade names and other amortizable intangible assets 91,134 (42,762) 48,372 Total amortizable intangible assets 756,194 (507,536) 248,658 Indefinite-lived intangible assets: Trademarks 19,900 — 19,900 Total intangible assets $ 776,094 $ (507,536) $ 268,558 |
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, 2024 $ 36,332 2025 35,061 2026 32,539 2027 27,835 2028 25,695 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: (In thousands) March 31, 2024 December 31, 2023 Employee related costs $ 92,063 $ 93,866 Participations and residuals 165,784 164,375 Interest 12,027 31,749 Restructuring and other related charges 7,903 12,149 Other accrued expenses 73,503 83,699 Total accrued liabilities $ 351,280 $ 385,838 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The following table summarizes the Company's long-term debt included in the condensed consolidated balance sheet as follows: (In thousands) March 31, 2024 December 31, 2023 Senior Secured Credit Facility: (a) Term Loan A Facility $ 590,625 $ 607,500 Senior Notes: 4.75% Notes due August 2025 774,729 774,729 4.25% Notes due February 2029 1,000,000 1,000,000 Total long-term debt 2,365,354 2,382,229 Unamortized discount (12,875) (13,873) Unamortized deferred financing costs (5,893) (6,607) Long-term debt, net 2,346,586 2,361,749 Current portion of long-term debt 67,500 67,500 Noncurrent portion of long-term debt $ 2,279,086 $ 2,294,249 (a) |
Schedule of Redeemed Percentage | On or after January 15, 2026, AMC Networks may redeem the Secured Notes, at its option, in whole or in part, at any time and from time to time, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest thereon, to the applicable redemption date, if redeemed during the twelve month period beginning on January 15 of the years indicated below: Year Percentage 2026 105.125% 2027 102.563% 2028 and thereafter 100.000% |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 December 31, 2023 Assets Operating Operating lease right-of-use assets $ 68,786 $ 71,163 Finance Property and equipment, net 9,609 9,884 Total lease assets $ 78,395 $ 81,047 Liabilities Current: Operating Current portion of lease obligations $ 28,004 $ 28,971 Finance Current portion of lease obligations 4,769 4,688 $ 32,773 $ 33,659 Noncurrent: Operating Lease obligations $ 69,105 $ 72,797 Finance Lease obligations 13,164 14,443 $ 82,269 $ 87,240 Total lease liabilities $ 115,042 $ 120,899 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023: (In thousands) Level I Level II Level III Total At March 31, 2024: Assets Cash equivalents $ 61,894 $ — $ — $ 61,894 Foreign currency derivatives — 4,198 — 4,198 Liabilities Foreign currency derivatives — 3,221 — 3,221 At December 31, 2023: Assets Foreign currency derivatives $ — $ 8,277 $ — $ 8,277 Liabilities Foreign currency derivatives — 2,295 — 2,295 |
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) March 31, 2024 Carrying Estimated Debt instruments: Term loan A facility $ 586,259 $ 574,383 4.75% Notes due August 2025 771,617 770,855 4.25% Notes due February 2029 988,710 707,500 $ 2,346,586 $ 2,052,738 (In thousands) December 31, 2023 Carrying Estimated Debt instruments: Term loan A facility $ 602,551 $ 577,884 4.75% Notes due August 2025 771,013 745,677 4.25% Notes due February 2029 988,185 780,670 $ 2,361,749 $ 2,104,231 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 December 31, 2023 Derivatives not designated as hedging instruments: Assets: Foreign currency derivatives Prepaid expenses and other current assets $ 689 $ 378 Foreign currency derivatives Other assets 3,509 7,899 Liabilities: Foreign currency derivatives Accrued liabilities $ 989 $ 1,065 Foreign currency derivatives Current portion of program rights obligations — 8 Foreign currency derivatives Other liabilities 2,232 1,222 |
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 (Loss) Recognized in Earnings on Derivatives Amount of Gain (Loss) Recognized in Earnings on Derivatives Three Months Ended March 31, 2024 2023 Foreign currency derivatives Miscellaneous, net $ (5,030) $ 4,905 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Noncontrolling Interest [Abstract] | |
Schedule of Redeemable Noncontrolling Interest | The following tables summarize activity related to redeemable noncontrolling interest for the three months ended March 31, 2024 and 2023: (In thousands) Three Months Ended March 31, 2024 December 31, 2023 $ 185,297 Net earnings 10,520 Distributions (1,168) Adjustment to redemption fair value 2,721 March 31, 2024 $ 197,370 (In thousands) Three Months Ended March 31, 2023 December 31, 2022 $ 253,669 Net earnings 6,270 Distributions (10,020) March 31, 2023 $ 249,919 |
Cash Flows (Tables)
Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |
Schedule of Summary of Non-Cash Activities and Other Supplemental Data | The following table details the Company's non-cash investing and financing activities and other supplemental data: (In thousands) Three Months Ended March 31, 2024 2023 Non-Cash Investing and Financing Activities: Operating lease additions $ 2,971 $ — Capital expenditures incurred but not yet paid 660 5,606 Supplemental Data: Cash interest paid 50,801 50,791 Income tax (refunds) payments, net (27,738) 6,507 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Summary of Continuing Operations by Reportable Segment | below. (In thousands) Three Months Ended March 31, 2024 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 322,558 $ 50,849 $ — $ 373,407 Content licensing and other 61,814 3,232 (3,370) 61,676 Distribution and other 384,372 54,081 (3,370) 435,083 Advertising 139,854 21,524 — 161,378 Consolidated revenues, net $ 524,226 $ 75,605 $ (3,370) $ 596,461 Operating income (loss) $ 142,017 $ 8,609 $ (40,448) $ 110,178 Share-based compensation expenses 3,230 766 2,079 6,075 Depreciation and amortization 10,027 4,025 11,774 25,826 Cloud computing amortization 3,548 — — 3,548 Majority-owned equity investees AOI 3,497 — — 3,497 Adjusted operating income (loss) $ 162,319 $ 13,400 $ (26,595) $ 149,124 (In thousands) Three Months Ended March 31, 2023 Domestic Operations International Corporate / Inter-segment Consolidated Revenues, net Subscription $ 347,530 $ 56,690 $ — $ 404,220 Content licensing and other 103,263 32,860 (2,479) 133,644 Distribution and other 450,793 89,550 (2,479) 537,864 Advertising 161,061 18,522 — 179,583 Consolidated revenues, net $ 611,854 $ 108,072 $ (2,479) $ 717,447 Operating income (loss) $ 199,488 $ 14,142 $ (40,326) $ 173,304 Share-based compensation expenses 4,447 839 359 5,645 Depreciation and amortization 11,854 4,771 9,250 25,875 Restructuring and other related charges 818 1,385 3,730 5,933 Cloud computing amortization 5 — 2,225 2,230 Majority-owned equity investees AOI 2,776 — — 2,776 Adjusted operating income (loss) $ 219,388 $ 21,137 $ (24,762) $ 215,763 |
Schedule of Summary of Inter-Segment Eliminations | Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International segments. (In thousands) Three Months Ended March 31, 2024 2023 Inter-segment revenues Domestic Operations $ (1,845) $ (2,214) International (1,525) (265) $ (3,370) $ (2,479) |
Schedule of Revenue by Geographic Area | The table below summarizes revenues based on customer location: (In thousands) Three Months Ended March 31, 2024 2023 Revenues United States $ 484,093 $ 606,228 Europe 77,251 73,767 Other 35,117 37,452 $ 596,461 $ 717,447 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets | The table below summarizes property and equipment based on asset location: (In thousands) March 31, 2024 December 31, 2023 Property and equipment, net United States $ 135,788 $ 146,314 Europe 10,930 11,850 Other 1,254 1,073 $ 147,972 $ 159,237 |
Description of Business and B_3
Description of Business and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2024 network segment | |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable (including long-term receivables within Other assets) | $ 719,746 | $ 750,390 |
Contract assets, short-term (included in Prepaid expenses and other current assets) | 2,364 | 2,364 |
Contract liabilities, short-term (Deferred revenue) | $ 61,252 | $ 65,736 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized | $ 24.7 | $ 82.6 | |
Maximum limit of unpaid customer receivables | $ 125 |
Net Income per Share (Reconcili
Net Income per Share (Reconciliation Between Basic and Diluted Weighted Average Shares Outstanding) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Basic weighted average common shares outstanding (in shares) | 44,068 | 43,628 |
Effect of dilution: | ||
Diluted weighted average common shares outstanding (in shares) | 44,600 | 43,837 |
Restricted stock units | ||
Effect of dilution: | ||
Effect of dilution (in shares) | 532 | 209 |
Net Income per Share (Narrative
Net Income per Share (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from EPS (in shares) | 200,000 | 800,000 |
Amount authorized under stock repurchase program | $ 1,500,000,000 | |
Available for repurchase under the stock repurchase program | $ 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 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 0 | $ 5,933,000 | |
Accrued restructuring costs | 7,903,000 | $ 13,734,000 | |
Accrued liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring costs | 7,900,000 | 12,100,000 | |
Other Noncurrent Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring costs | $ 1,600,000 | ||
2022 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other related charges | $ 0 | $ 5,900,000 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges (Restructuring and Related Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other related charges | $ 0 | $ 5,933 |
Operating Segments | Domestic Operations | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other related charges | 818 | |
Operating Segments | International | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other related charges | 1,385 | |
Corporate / Inter-segment eliminations | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other related charges | $ 3,730 |
Restructuring and Other Relat_5
Restructuring and Other Related Charges (Summary of Accrued Restructuring and Other Related Costs) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 13,734 |
Cash payments | (4,821) |
Other | (1,010) |
Ending Balance | 7,903 |
Severance and Employee-Related Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 8,726 |
Cash payments | (3,488) |
Other | (882) |
Ending Balance | 4,356 |
Content Impairments and Other Exit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 5,008 |
Cash payments | (1,333) |
Other | (128) |
Ending Balance | $ 3,547 |
Program Rights (Program Rights
Program Rights (Program Rights by Predominant Monetization Strategy) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Predominantly Monetized Individually | ||
Completed | $ 114,384 | $ 139,363 |
In-production and in-development | 0 | 0 |
Total owned original program rights, net | 114,384 | 139,363 |
Licensed film and acquired series | 732 | 973 |
Licensed originals | 0 | 1,555 |
Advances and other production costs | 0 | 0 |
Total licensed program rights, net | 732 | 2,528 |
Program rights, net | 115,116 | 141,891 |
Predominantly Monetized as a Group | ||
Completed | 587,345 | 532,839 |
In-production and in-development | 246,276 | 284,455 |
Total owned original program rights, net | 833,621 | 817,294 |
Licensed film and acquired series | 572,597 | 599,607 |
Licensed originals | 162,587 | 169,489 |
Advances and other production costs | 83,230 | 82,252 |
Total licensed program rights, net | 818,414 | 851,348 |
Program rights, net | 1,652,035 | 1,668,642 |
Total | ||
Completed | 701,729 | 672,202 |
In-production and in-development | 246,276 | 284,455 |
Total owned original program rights, net | 948,005 | 956,657 |
Licensed film and acquired series | 573,329 | 600,580 |
Licensed originals | 162,587 | 171,044 |
Advances and other production costs | 83,230 | 82,252 |
Total licensed program rights, net | 819,146 | 853,876 |
Program rights, net | 1,767,151 | 1,810,533 |
Current portion of program rights, net | 13,881 | 7,880 |
Program rights, net (long-term) | $ 1,753,270 | $ 1,802,653 |
Program Rights (Amortization of
Program Rights (Amortization of Owned and Licensed Program Rights) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Owned original program rights | ||
Predominantly Monetized Individually | $ 24,852 | $ 21,303 |
Predominantly Monetized as a Group | 60,106 | 44,936 |
Total | 84,958 | 66,239 |
Licensed program rights | ||
Predominantly Monetized Individually | 1,631 | 1,664 |
Predominantly Monetized as a Group | 115,963 | 119,170 |
Total | 117,594 | 120,834 |
Predominantly Monetized Individually | 26,483 | 22,967 |
Predominantly Monetized as a Group | 176,069 | 164,106 |
Total | $ 202,552 | $ 187,073 |
Program Rights (Narrative) (Det
Program Rights (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Film Disclosure [Line Items] | |||
Program rights write-offs | $ 0 | $ 0 | |
Prepaid expenses and other current assets | |||
Film Disclosure [Line Items] | |||
Income tax receivable, program rights | 235.9 | $ 230.3 | |
Other noncurrent assets | |||
Film Disclosure [Line Items] | |||
Income tax receivable, program rights | $ 45.9 | $ 49.9 |
Investments (Details)
Investments (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Investments [Abstract] | |||
Equity method investments | $ 83,600,000 | $ 83,100,000 | |
Investments in non-marketable equity securities | 42,600,000 | $ 41,600,000 | |
Gain on non-marketable equity securities | 0 | ||
Loss on non-marketable equity securities | $ 0 | ||
Impairment charge on non-marketable equity security | $ 1,200,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 626,496 |
Foreign currency translation | (4,306) |
Ending balance | 622,190 |
Domestic Operations | |
Goodwill [Roll Forward] | |
Beginning balance | 348,732 |
Foreign currency translation | 0 |
Ending balance | 348,732 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 277,764 |
Foreign currency translation | (4,306) |
Ending balance | $ 273,458 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate amortization expense for amortizable intangible assets | $ 8.6 | $ 10.4 | |
International | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated impairment charges | $ 185.5 | $ 185.5 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Schedule of Finite and Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 752,211 | $ 756,194 |
Accumulated Amortization | (513,198) | (507,536) |
Net | 239,013 | 248,658 |
Trademarks | 19,900 | 19,900 |
Total intangible assets, gross | 772,111 | 776,094 |
Total intangible assets, net | 258,913 | 268,558 |
Affiliate and customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 615,455 | 618,778 |
Accumulated Amortization | (426,361) | (421,968) |
Net | $ 189,094 | 196,810 |
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 | (43,280) | (42,806) |
Net | $ 3,002 | 3,476 |
Estimated useful lives (in years) | 11 years | |
Trade names and other amortizable intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 90,474 | 91,134 |
Accumulated Amortization | (43,557) | (42,762) |
Net | $ 46,917 | $ 48,372 |
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 | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 36,332 |
2025 | 35,061 |
2026 | 32,539 |
2027 | 27,835 |
2028 | $ 25,695 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accrued Liabilities, Current [Abstract] | ||
Employee related costs | $ 92,063 | $ 93,866 |
Participations and residuals | 165,784 | 164,375 |
Interest | 12,027 | 31,749 |
Restructuring and other related charges | 7,903 | 12,149 |
Other accrued expenses | 73,503 | 83,699 |
Total accrued liabilities | $ 351,280 | $ 385,838 |
Long-term Debt (Summary of Long
Long-term Debt (Summary of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,365,354 | $ 2,382,229 |
Unamortized discount | (12,875) | (13,873) |
Unamortized deferred financing costs | (5,893) | (6,607) |
Long-term debt, net | 2,346,586 | 2,361,749 |
Current portion of long-term debt | 67,500 | 67,500 |
Noncurrent portion of long-term debt | $ 2,279,086 | 2,294,249 |
Senior Notes | 4.75% Senior Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.75% | |
Long-term debt | $ 774,729 | $ 774,729 |
Senior Notes | 4.25% Notes due February 2029 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.25% | 4.25% |
Long-term debt | $ 1,000,000 | $ 1,000,000 |
Secured debt | Term Loan A Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 590,625 | $ 607,500 |
Long-term Debt (Redeemed Percen
Long-term Debt (Redeemed Percentage) (Details) - 10.25% Senior Secured Notes Due 2029 - Senior Notes - Subsequent Event | Apr. 09, 2024 |
2026 | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 105.125% |
2027 | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 102.563% |
2028 and thereafter | |
Debt Instrument [Line Items] | |
Redemption price (as a percentage) | 100% |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Apr. 22, 2024 | Apr. 09, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 2,365,354,000 | $ 2,382,229,000 | ||
Revolving credit facility | Credit facilities | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Line of credit | $ 175,000,000 | |||
Term Loan A Facility | Secured debt | ||||
Debt Instrument [Line Items] | ||||
Repayment of line of credit | 16,900,000 | |||
Long-term debt | 590,625,000 | 607,500,000 | ||
Term Loan A Facility | Secured debt | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 425,000,000 | |||
Term Loan A Facility Maturity on April 9, 2028 | Secured debt | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 325,000,000 | |||
Term Loan A Facility Maturity on February 8, 2026 | Secured debt | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 100,000,000 | |||
10.25% Senior Secured Notes Due 2029 | Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 875,000,000 | |||
Interest rate | 10.25% | |||
Net proceeds | $ 863,000,000 | |||
10.25% Senior Secured Notes Due 2029 | Senior Notes | Any time prior to January 15, 2026 | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Redeemed percentage | 40% | |||
Redemption price (as a percentage) | 110.25% | |||
10.25% Senior Secured Notes Due 2029 | Senior Notes | Any time prior to January 15, 2026 | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Redeemed percentage | 10% | |||
Redemption price (as a percentage) | 103% | |||
10.25% Senior Secured Notes Due 2029 | Senior Notes | Any time prior to January 15, 2026 | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Redemption price (as a percentage) | 100% | |||
10.25% Senior Secured Notes Due 2029 | Senior Notes | Any time prior to January 15, 2026 | US Treasury (UST) Interest Rate | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Basis spread | 0.50% | |||
4.75% Senior Notes Due 2025 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 774,729,000 | $ 774,729,000 | ||
Interest rate | 4.75% | |||
4.75% Senior Notes Due 2025 | Senior Notes | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.75% | |||
Redemption price (as a percentage) | 100% |
Leases (Summary of Lease Assets
Leases (Summary of Lease Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease asset | $ 68,786 | $ 71,163 |
Finance lease asset | 9,609 | 9,884 |
Total lease assets | 78,395 | 81,047 |
Operating lease liability, current | 28,004 | 28,971 |
Finance lease liability, current | 4,769 | 4,688 |
Total lease liabilities, current | 32,773 | 33,659 |
Operating lease liability, noncurrent | 69,105 | 72,797 |
Finance lease liability, noncurrent | 13,164 | 14,443 |
Total lease liabilities, noncurrent | 82,269 | 87,240 |
Total lease liabilities | $ 115,042 | $ 120,899 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net of accumulated depreciation of $418,046 and $403,708 | Property and equipment, net of accumulated depreciation of $418,046 and $403,708 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of lease obligations | Current portion of lease obligations |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of lease obligations | Current portion of lease obligations |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total lease liabilities, noncurrent | Total lease liabilities, noncurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total lease liabilities, noncurrent | Total lease liabilities, noncurrent |
Fair Value Measurement (Financi
Fair Value Measurement (Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash equivalents | $ 61,894 | |
Foreign currency derivatives | ||
Assets | ||
Foreign currency derivatives | 4,198 | $ 8,277 |
Liabilities | ||
Foreign currency derivatives | 3,221 | 2,295 |
Level I | ||
Assets | ||
Cash equivalents | 61,894 | |
Level I | Foreign currency derivatives | ||
Assets | ||
Foreign currency derivatives | 0 | 0 |
Liabilities | ||
Foreign currency derivatives | 0 | 0 |
Level II | ||
Assets | ||
Cash equivalents | 0 | |
Level II | Foreign currency derivatives | ||
Assets | ||
Foreign currency derivatives | 4,198 | 8,277 |
Liabilities | ||
Foreign currency derivatives | 3,221 | 2,295 |
Level III | ||
Assets | ||
Cash equivalents | 0 | |
Level III | Foreign currency derivatives | ||
Assets | ||
Foreign currency derivatives | 0 | 0 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
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 | $ 2,346,586 | $ 2,361,749 |
Carrying Amount | Term loan A facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 586,259 | 602,551 |
Carrying Amount | 4.75% Notes due August 2025 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 771,617 | 771,013 |
Carrying Amount | 4.25% Notes due February 2029 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 988,710 | 988,185 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 2,052,738 | 2,104,231 |
Estimated Fair Value | Term loan A facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 574,383 | 577,884 |
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 | 770,855 | 745,677 |
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 | $ 707,500 | $ 780,670 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Prepaid expenses and other current assets | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative assets | $ 689 | $ 378 |
Other assets | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative assets | 3,509 | 7,899 |
Accrued liabilities | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative liabilities | 989 | 1,065 |
Current portion of program rights obligations | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative liabilities | 0 | 8 |
Other liabilities | ||
Derivatives not designated as hedging instruments: | ||
Foreign currency derivative liabilities | $ 2,232 | $ 1,222 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Other Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Foreign currency derivatives | Miscellaneous, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $ (5,030) | $ 4,905 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Contingency [Line Items] | |||
Income tax expense | $ 23,649 | $ 36,899 | |
Effective tax rate | 29% | 25% | |
Cash and cash equivalents | $ 690,522 | $ 570,576 | |
Foreign subsidiaries | 132,100 | ||
Foreign earnings expected to be repatriated | 20,000 | ||
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward, amount | 50,300 | ||
Valuation allowance | $ 50,300 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | |||||
Mar. 12, 2024 USD ($) | Nov. 14, 2022 USD ($) | Mar. 31, 2024 USD ($) | Jan. 26, 2023 claim | Jan. 20, 2021 defendant | Jul. 22, 2020 legal_matter | |
Loss Contingencies [Line Items] | ||||||
Increase in contractual obligations not reflected in the balance sheet | $ 6.9 | |||||
Contractual obligation | $ 880.5 | |||||
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 | |||||
Damages awarded, value | $ 7.8 | |||||
MFN Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Claim for damages | $ 200 |
Equity Plans (Details)
Equity Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Tax withholding associated with shares issued under employee stock plans | $ 3,961 | $ 6,012 |
Share-based payment arrangement, noncash expense including restructuring and other related charges | 6,100 | 5,900 |
Share-based compensation expense, related to restructuring and other related charges | 6,075 | 5,645 |
Total unrecognized share-based compensation costs | $ 41,900 | |
Total unrecognized share-based compensation costs, remaining period of recognition | 2 years 4 months 24 days | |
Restructuring Charges | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense, related to restructuring and other related charges | $ 300 | $ 300 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted in period (in shares) | 2,016,192 | |
Vesting period (in years) | 3 years | |
Shares surrendered to the company for tax withholding (in shares) | 331,383 | |
RSUs | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
New shares of company's class A common stock issued (in shares) | 481,728 | |
RSUs | Executive Officer | Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares vested in period (in shares) | 813,111 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests (Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Beginning balance | $ 185,297 | $ 253,669 |
Net earnings | 10,520 | 6,270 |
Distributions | (1,168) | (10,020) |
Redeemable noncontrolling interest adjustment to redemption fair value | 2,721 | |
Ending balance | $ 197,370 | $ 249,919 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Net revenues from related parties | $ 596,461 | $ 717,447 |
Selling, general and administrative charges from related parties | 188,881 | 185,606 |
Related Party | ||
Related Party Transaction [Line Items] | ||
Net revenues from related parties | 1,300 | 1,300 |
Selling, general and administrative charges from related parties | $ 400 | $ 3,300 |
Cash Flows (Summary of Non-Cash
Cash Flows (Summary of Non-Cash Activities and Other Supplemental Data) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Non-Cash Investing and Financing Activities: | ||
Operating lease additions | $ 2,971 | $ 0 |
Capital expenditures incurred but not yet paid | 660 | 5,606 |
Supplemental Data: | ||
Cash interest paid | 50,801 | 50,791 |
Income tax (refunds) payments, net | $ (27,738) | $ 6,507 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 2 | |
Revenues, net | $ 596,461 | $ 717,447 |
SVOD Services | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | $ 145,100 | $ 140,900 |
Customer One | Revenue Benchmark | Customer Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 15% | 13% |
Segment Information (Summary of
Segment Information (Summary of Continuing Operations by Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues, net | $ 596,461 | $ 717,447 |
Operating income | 110,178 | 173,304 |
Share-based compensation expenses | 6,075 | 5,645 |
Depreciation and amortization | 25,826 | 25,875 |
Cloud computing amortization | 3,548 | 2,230 |
Majority-owned equity investees AOI | 3,497 | 2,776 |
Adjusted operating income (loss) | 149,124 | 215,763 |
Operating Segments | Domestic Operations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 524,226 | 611,854 |
Operating income | 142,017 | 199,488 |
Share-based compensation expenses | 3,230 | 4,447 |
Depreciation and amortization | 10,027 | 11,854 |
Cloud computing amortization | 3,548 | 5 |
Majority-owned equity investees AOI | 3,497 | 2,776 |
Adjusted operating income (loss) | 162,319 | 219,388 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 75,605 | 108,072 |
Operating income | 8,609 | 14,142 |
Share-based compensation expenses | 766 | 839 |
Depreciation and amortization | 4,025 | 4,771 |
Cloud computing amortization | 0 | 0 |
Majority-owned equity investees AOI | 0 | 0 |
Adjusted operating income (loss) | 13,400 | 21,137 |
Corporate / Inter-segment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | (3,370) | (2,479) |
Operating income | (40,448) | (40,326) |
Share-based compensation expenses | 2,079 | 359 |
Depreciation and amortization | 11,774 | 9,250 |
Cloud computing amortization | 0 | 2,225 |
Majority-owned equity investees AOI | 0 | 0 |
Adjusted operating income (loss) | (26,595) | (24,762) |
Corporate / Inter-segment Eliminations | Domestic Operations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | (1,845) | (2,214) |
Corporate / Inter-segment Eliminations | International | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | (1,525) | (265) |
Subscription | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 373,407 | 404,220 |
Subscription | Operating Segments | Domestic Operations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 322,558 | 347,530 |
Subscription | Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 50,849 | 56,690 |
Subscription | Corporate / Inter-segment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 0 | 0 |
Content licensing and other | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 61,676 | 133,644 |
Content licensing and other | Operating Segments | Domestic Operations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 61,814 | 103,263 |
Content licensing and other | Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 3,232 | 32,860 |
Content licensing and other | Corporate / Inter-segment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | (3,370) | (2,479) |
Distribution and other | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 435,083 | 537,864 |
Distribution and other | Operating Segments | Domestic Operations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 384,372 | 450,793 |
Distribution and other | Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 54,081 | 89,550 |
Distribution and other | Corporate / Inter-segment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | (3,370) | (2,479) |
Advertising | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 161,378 | 179,583 |
Advertising | Operating Segments | Domestic Operations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 139,854 | 161,061 |
Advertising | Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 21,524 | 18,522 |
Advertising | Corporate / Inter-segment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | $ 0 | $ 0 |
Segment Information (Summary _2
Segment Information (Summary of Inter-Segment Eliminations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues, net | $ 596,461 | $ 717,447 |
Corporate / Inter-segment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | (3,370) | (2,479) |
Corporate / Inter-segment Eliminations | Domestic Operations | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | (1,845) | (2,214) |
Corporate / Inter-segment Eliminations | International | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | $ (1,525) | $ (265) |
Segment Information (Schedule o
Segment Information (Schedule of Revenues by Geographic Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues, net | $ 596,461 | $ 717,447 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 484,093 | 606,228 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | 77,251 | 73,767 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenues, net | $ 35,117 | $ 37,452 |
Segment Information (Long-lived
Segment Information (Long-lived Assets by Geographic Location) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 147,972 | $ 159,237 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 135,788 | 146,314 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 10,930 | 11,850 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 1,254 | $ 1,073 |