Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 06, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CENTRAL EUROPEAN MEDIA ENTERPRISES LTD. | ||
Entity Central Index Key | 925,645 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 128.1 | ||
Entity Common Stock, Shares Outstanding | 143,450,921 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets | |||
Cash and cash equivalents | $ 43,459 | $ 61,679 | |
Accounts receivable, net (Note 6) | 178,339 | 167,427 | |
Program rights, net (Note 5) | 86,151 | 85,972 | |
Other current assets (Note 7) | 32,471 | 43,206 | |
Total current assets | 340,420 | 358,284 | |
Non-current assets | |||
Property, plant and equipment, net (Note 8) | [1] | 109,089 | 108,522 |
Program rights, net (Note 5) | 179,356 | 169,073 | |
Goodwill (Note 3) | 602,069 | 622,243 | |
Other intangible assets, net (Note 3) | 138,340 | 151,162 | |
Other non-current assets (Note 7) | 21,443 | 31,133 | |
Total non-current assets | 1,050,297 | 1,082,133 | |
Total assets | [2] | 1,390,717 | 1,440,417 |
Current liabilities | |||
Accounts payable and accrued liabilities (Note 9) | 160,981 | 134,705 | |
Current portion of long-term debt and other financing arrangements (Note 4) | 1,494 | 1,155 | |
Other current liabilities (Note 10) | 9,089 | 10,448 | |
Total current liabilities | 171,564 | 146,308 | |
Non-current liabilities | |||
Long-term debt and other financing arrangements (Note 4) | 1,002,028 | 908,521 | |
Other non-current liabilities (Note 10) | 68,758 | 65,749 | |
Total non-current liabilities | 1,070,786 | 974,270 | |
Commitments and contingencies (Note 20) | |||
Temporary Equity [Abstract] | |||
200,000 shares of Series B Convertible Redeemable Preferred Stock of $0.08 each (December 31, 2015 - 200,000) (Note 11) | 254,899 | 241,198 | |
CME Ltd. shareholders’ equity (Note 12): | |||
Additional paid-in capital | 1,910,244 | 1,914,050 | |
Accumulated deficit | (1,785,536) | (1,605,245) | |
Accumulated other comprehensive loss | (243,988) | (242,409) | |
Total CME Ltd. shareholders’ (deficit) / equity | (107,804) | 77,260 | |
Noncontrolling interests | 1,272 | 1,381 | |
Total (deficit) / equity | (106,532) | 78,641 | |
Total liabilities and equity | 1,390,717 | 1,440,417 | |
Series A Preferred Stock [Member] | |||
CME Ltd. shareholders’ equity (Note 12): | |||
One share of Series A Convertible Preferred Stock of $0.08 each (December 31, 2015 – one) | 0 | 0 | |
Class A Common Stock [Member] | |||
CME Ltd. shareholders’ equity (Note 12): | |||
Common stock | 11,476 | 10,864 | |
Class B Common Stock [Member] | |||
CME Ltd. shareholders’ equity (Note 12): | |||
Common stock | $ 0 | $ 0 | |
[1] | Reflects property, plant and equipment. | ||
[2] | Segment assets exclude any intercompany balances. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Series A Preferred Stock [Member] | ||
Preferred Stock, Shares Outstanding | 1 | 1 |
Preferred stock, par value (in dollars per share) | $ 0.08 | $ 0.08 |
Series B Preferred Stock [Member] | ||
Preferred Stock, Shares Outstanding | 200,000 | 200,000 |
Preferred stock, par value (in dollars per share) | $ 0.08 | $ 0.08 |
Common Class A [Member] | ||
Common stock | $ 11,476 | $ 10,864 |
Common stock, shares issued (in shares) | 143,449,913 | 135,804,221 |
Common stock, par value (in dollars per share) | $ 0.08 | $ 0.08 |
Common Class B [Member] | ||
Common stock | $ 0 | $ 0 |
Common stock, shares issued (in shares) | ||
Common stock, par value (in dollars per share) | $ 0.08 | $ 0.08 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net revenues | $ 638,013 | $ 605,841 | $ 680,793 | |
Operating expenses: | ||||
Content costs | 306,013 | 292,602 | 358,379 | |
Other operating costs | 69,353 | 69,727 | 85,478 | |
Depreciation of property, plant and equipment | 30,190 | 27,943 | 32,836 | |
Amortization of intangibles | 8,270 | 12,271 | 12,348 | |
Cost of revenues | 413,826 | 402,543 | 489,041 | |
Selling, general and administrative expenses | 112,598 | 107,001 | 143,616 | |
Restructuring costs | 0 | 1,714 | 9,856 | |
Operating income | 111,589 | 94,583 | 38,280 | |
Interest expense (Note 14) | (132,224) | (171,444) | (142,005) | |
Loss on extinguishment of debt (Note 4) | (150,158) | 0 | (39,203) | |
Nonoperating Income (Expense) | (2,487) | (25,939) | (9,895) | |
Loss before tax | (173,280) | (102,800) | (152,823) | |
(Provision) / credit for income taxes (Note 17) | (7,317) | 515 | 1,358 | |
Loss from continuing operations | (180,597) | (102,285) | (151,465) | |
Loss from discontinued operations, net of tax | 0 | (13,287) | (80,431) | |
Net loss | (180,597) | (115,572) | (231,896) | |
Net loss attributable to noncontrolling interests | 306 | 671 | 4,468 | |
Net loss attributable to CME Ltd. | (180,291) | (114,901) | (227,428) | |
Currency translation adjustment | 1,649 | (89,714) | (156,236) | |
Unrealized loss on derivative instruments (Note 13) | (3,031) | (839) | (581) | |
Total Other Comprehensive Income (Loss), Net of Tax | (1,382) | (90,553) | (156,817) | |
Comprehensive loss | (181,979) | (206,125) | (388,713) | |
Comprehensive loss / (income) attributable to noncontrolling interests | 109 | (712) | 3,505 | |
Comprehensive loss attributable to CME Ltd. | $ (181,870) | $ (206,837) | $ (385,208) | |
PER SHARE DATA (Note 18): | ||||
Continuing operations - Basic (in dollars per share) | $ (1.28) | $ (0.81) | $ (1.11) | |
Continuing operations - Diluted (in dollars per share) | (1.28) | (0.81) | (1.11) | |
Discontinued operations – Basic (in dollars per share) | 0 | (0.09) | (0.55) | |
Discontinued operations - Diluted (in dollars per share) | 0 | (0.09) | (0.55) | |
Net loss per share: | ||||
Net (loss) / income attributable to CME Ltd. – Basic (in dollars per share) | (1.28) | (0.90) | (1.66) | |
Net (loss) / income attributable to CME Ltd. – Diluted (in dollars per share) | $ (1.28) | $ (0.90) | $ (1.66) | |
Weighted average common shares used in computing per share amounts (000’s): | ||||
Basic (in shares) | [1] | 151,017 | 146,866 | 146,509 |
Diluted (in shares) | 151,017 | 146,866 | 146,509 | |
[1] | For the purpose of computing basic earnings per share, the 11,211,449 shares of Class A common stock underlying the Series A Preferred Share are included in the weighted average outstanding shares of common stock - basic, because the holder of the Series A Preferred Share is entitled to receive any dividends payable when dividends are declared by the Board of Directors with respect to any shares of the common stock. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] | Preferred Stock [Member]Preferred Stock [Member] | Common Class A [Member]Common Stock [Member] | Common Class B [Member] | Common Class B [Member]Common Stock [Member] | Warrant [Member]Common Stock [Member] | 2018 Warrants [Member] |
BALANCE at Dec. 31, 2013 | $ 441,001 | $ 1,704,066 | $ (1,262,916) | $ (11,829) | $ 893 | $ 0 | $ 10,787 | $ 0 | |||
BALANCE (in shares) at Dec. 31, 2013 | 1 | ||||||||||
BALANCE (in shares) at Dec. 31, 2013 | 134,837,442 | 0 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||||||||
Stock-based compensation | 1,344 | 1,344 | |||||||||
Adjustments to Additional Paid in Capital, Warrant Issued | 239,586 | 239,586 | |||||||||
Preferred dividend paid in kind | (16,036) | (16,036) | |||||||||
Share issuance, stock-based compensation | (40) | $ 40 | |||||||||
Share issuance, stock-based compensation (in shares) | 497,816 | ||||||||||
Net loss | (231,896) | (227,428) | (4,468) | ||||||||
Unrealized loss on derivative instruments (Note 13) | (581) | (581) | |||||||||
Currency translation adjustment | (156,236) | (157,199) | 963 | ||||||||
BALANCE at Dec. 31, 2014 | 277,182 | 1,928,920 | (1,490,344) | (169,609) | (2,612) | $ 0 | $ 10,827 | $ 0 | |||
BALANCE (in shares) at Dec. 31, 2014 | 1 | ||||||||||
BALANCE (in shares) at Dec. 31, 2014 | 135,335,258 | 0 | |||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||||||||
Stock-based compensation | 2,439 | 2,439 | |||||||||
Preferred dividend paid in kind | (17,272) | (17,272) | |||||||||
Share issuance, stock-based compensation | (37) | $ 37 | |||||||||
Share issuance, stock-based compensation (in shares) | 468,963 | ||||||||||
Net loss | (115,572) | (114,901) | (671) | ||||||||
Unrealized loss on derivative instruments (Note 13) | (839) | (839) | |||||||||
Currency translation adjustment | (89,714) | (91,097) | 1,383 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | 22,417 | 19,136 | 3,281 | ||||||||
BALANCE at Dec. 31, 2015 | 78,641 | 1,914,050 | (1,605,245) | (242,409) | 1,381 | $ 0 | $ 10,864 | $ 0 | |||
BALANCE (in shares) at Dec. 31, 2015 | 1 | ||||||||||
BALANCE (in shares) at Dec. 31, 2015 | 135,804,221 | 0 | 0 | ||||||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||||||||||
Stock-based compensation | 3,510 | 3,510 | |||||||||
Number of Warrants Exercised | 6,996,955 | ||||||||||
Stock and Warrants Issued During Period, Value, Preferred Stock and Warrants | $ 560 | ||||||||||
Adjustments to Additional Paid in Capital, Warrant Issued | 6,997 | 6,437 | |||||||||
Preferred dividend paid in kind | (13,701) | (13,701) | |||||||||
Share issuance, stock-based compensation | 0 | (52) | $ 52 | ||||||||
Share issuance, stock-based compensation (in shares) | 648,737 | ||||||||||
Net loss | (180,597) | (180,291) | (306) | ||||||||
Unrealized loss on derivative instruments (Note 13) | (3,031) | (3,031) | |||||||||
Currency translation adjustment | 1,649 | 1,452 | 197 | ||||||||
BALANCE at Dec. 31, 2016 | $ (106,532) | $ 1,910,244 | $ (1,785,536) | $ (243,988) | $ 1,272 | $ 0 | $ 11,476 | $ 0 | |||
BALANCE (in shares) at Dec. 31, 2016 | 1 | ||||||||||
BALANCE (in shares) at Dec. 31, 2016 | 143,449,913 | 0 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (180,597) | $ (115,572) | $ (231,896) |
Adjustments to reconcile net loss to net cash generated from / (used in) continuing operating activities: | |||
Loss from discontinued operations, net of tax | 0 | 13,287 | 80,431 |
Amortization of program rights | 306,013 | 292,602 | 349,819 |
Depreciation and other amortization | 60,557 | 96,928 | 82,619 |
Interest paid in kind | 45,289 | 81,529 | 37,884 |
Loss on extinguishment of debt | 150,158 | 0 | 39,203 |
(Gain) / loss on disposal of fixed assets | (299) | 17,617 | (112) |
Stock-based compensation (Note 16) | 3,510 | 2,439 | 1,344 |
Change in fair value of derivatives (Note 13) | 11,473 | (7,333) | 0 |
Foreign currency exchange (gain) / loss, net | (8,604) | 1,491 | (5,952) |
Net change in (net of effects of disposals of businesses): | |||
Accounts receivable, net | (18,142) | (8,077) | (26,539) |
Accounts payable and accrued liabilities | 2,601 | 6,161 | (10,549) |
Program rights | (317,328) | (303,111) | (388,436) |
Other assets and liabilities | 628 | (7,384) | 721 |
Accrued interest | (27,240) | 14,101 | (9,995) |
Income taxes payable | 5,319 | (303) | 2,948 |
Deferred revenue | (2,000) | 3,913 | (1,012) |
Deferred taxes | 1,494 | (1,671) | (2,206) |
VAT and other taxes payable | 1,085 | (740) | 16,486 |
Net cash generated from / (used in) continuing operating activities | 33,917 | 85,877 | (65,242) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property, plant and equipment | (29,567) | (33,517) | (28,685) |
Disposal of property, plant and equipment | 211 | 3,091 | 137 |
Net Cash Provided by (Used in) Investing Activities | (29,356) | (30,426) | (28,548) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from debt | 533,963 | 253,051 | 550,421 |
Repayments of debt | (540,699) | (261,034) | (712,919) |
Debt transactions costs | (9,541) | (1,541) | (14,206) |
Proceeds from credit facilities | 0 | 0 | 25,000 |
Payment of credit facilities and capital leases | (1,357) | (27,365) | (1,080) |
Issuance of common stock | 0 | 0 | 191,825 |
Settlement of forward currency swaps | (12,106) | 7,983 | 0 |
Proceeds from Warrant Exercises | 6,997 | 0 | 0 |
Other | 0 | 0 | (46) |
Net cash (used in) / provided by continuing financing activities | (22,743) | (28,906) | 38,995 |
Net cash used in discontinued operations - operating activities | 0 | (3,019) | (1,408) |
Net cash provided by / (used in) discontinued operations - investing activities | 1,194 | 6,598 | (228) |
Net cash used in discontinued operations - financing activities | 0 | (76) | (942) |
Impact of exchange rate fluctuations on cash | (1,232) | (2,667) | (10,651) |
Net (decrease) / increase in cash and cash equivalents | (18,220) | 27,381 | (68,024) |
CASH AND CASH EQUIVALENTS, beginning of period | 61,679 | 34,298 | 102,322 |
CASH AND CASH EQUIVALENTS, end of period | 43,459 | 61,679 | 34,298 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for interest (including mandatory cash-pay Guarantee Fees) | 53,982 | 18,457 | 76,154 |
Cash paid / (received) for income taxes, net of refunds | 290 | 805 | (2,234) |
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING AND INVESTING ACTIVITIES: | |||
Accretion on Series B Convertible Redeemable Preferred Stock | 13,701 | 17,272 | 16,036 |
Capital Lease Obligations Incurred | 1,193 | 1,511 | 1,088 |
Guarantee Fee that may be paid in kind [Member] | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for Guarantee Fees that may be paid in kind | 37,440 | ||
Guarantee Fee [Member] | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for Guarantee Fees that may be paid in kind | $ 48,600 | $ 0 | $ 0 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS | ORGANIZATION AND BUSINESS Central European Media Enterprises Ltd., a Bermuda company limited by shares, is a media and entertainment company operating in Central and Eastern Europe. Our assets are held through a series of Dutch and Curaçao holding companies. We manage our business on a geographical basis, with six operating segments, Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia, which are also our reportable segments and our main operating countries. See Note 19, "Segment Data" for financial information by segment. We have market leading broadcast operations in six countries in Central and Eastern Europe broadcasting a total of 36 television channels. Each country also develops and produces content for their television channels. We generate advertising revenues in our country operations primarily through entering into agreements with advertisers, advertising agencies and sponsors to place advertising on the television channels that we operate. We generate additional revenues by collecting fees from cable, direct-to-home (“DTH”) and IPTV operators for carriage of our channels. Unless otherwise indicated, we own 100% of our broadcast operating and license companies in each country. Bulgaria We operate one general entertainment channel, BTV, and five other channels, BTV CINEMA, BTV COMEDY, RING, BTV ACTION and BTV LADY. We own 94% of CME Bulgaria B.V. ("CME Bulgaria"), the subsidiary that owns our Bulgaria operations. Croatia We operate one general entertainment channel, NOVA TV (Croatia) and three other channels, DOMA (Croatia), NOVA WORLD and MINI TV. Czech Republic We operate one general entertainment channel, TV NOVA (Czech Republic), and seven other channels, NOVA CINEMA, NOVA SPORT 1, NOVA SPORT 2, NOVA ACTION (formerly FANDA), NOVA 2 (formerly SMICHOV), NOVA GOLD (formerly TELKA) and NOVA INTERNATIONAL, a general entertainment channel broadcasting in the Slovak Republic. Romania We operate one general entertainment channel, PRO TV, and eight other channels, ACASA, ACASA GOLD, PRO CINEMA, SPORT.RO, MTV ROMANIA, PRO TV INTERNATIONAL, PRO TV CHISINAU, a general entertainment channel broadcasting in Moldova, and ACASA IN MOLDOVA. Slovak Republic We operate one general entertainment channel, TV MARKIZA, and three other channels, DOMA (Slovak Republic), DAJTO, and MARKIZA INTERNATIONAL, a general entertainment channel broadcasting in the Czech Republic. Slovenia We operate two general entertainment channels, POP TV and KANAL A, and three other channels, KINO, BRIO and OTO. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The terms the “Company”, “we”, “us”, and “our” are used in this Form 10-K to refer collectively to the parent company, Central European Media Enterprises Ltd. (“CME Ltd.”), and the subsidiaries through which our various businesses are conducted. Unless otherwise noted, all statistical and financial information presented in this report has been converted into U.S. dollars using period-end exchange rates. All references to “US$”, “USD” or “dollars” are to U.S. dollars, all references to “BGN” are to Bulgarian leva, all references to “HRK” are to Croatian kuna, all references to “CZK” are to Czech koruna, all references to “RON” are to the New Romanian lei and all references to “Euro” or “EUR” are to the European Union Euro. Basis of Consolidation The consolidated financial statements include the accounts of CME Ltd. and our subsidiaries, after the elimination of intercompany accounts and transactions. Entities in which we hold less than a majority voting interest but over which we have the ability to exercise significant influence are accounted for using the equity method. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. Summary of Critical and Significant Accounting Policies The following is a discussion of each of the Company’s critical accounting policies, including information and analysis of estimates and assumptions involved in their application, and other significant accounting policies. Revenue Recognition Revenue is recognized when there is persuasive evidence of an arrangement, delivery of products has occurred or services have been rendered, the price is fixed or determinable and collectibility is reasonably assured. A bad debt provision is maintained for estimated losses resulting from our customers' subsequent inability to make payments. Revenues are recognized net of discounts and customer sales incentives. Our principal revenue streams and their respective accounting treatments are discussed below: Advertising revenue Revenues primarily result from the sale of advertising time. Television advertising revenue is recognized as the commercials are aired. In many countries, we commit to provide advertisers with certain rating levels in connection with their advertising. Revenue is recorded net of estimated shortfalls, which are usually settled by providing the advertiser additional advertising time. Discounts and agency commissions are recognized at the point when the advertising is broadcast and are reflected as a reduction to gross revenue. Display advertising on our websites is recognized as impressions are delivered. Impressions are delivered when an advertisement appears in pages viewed by users. Carriage fees and subscription revenues Carriage fees from cable operators and direct-to-home broadcasters are recognized as revenue over the period for which the channels are provided and to which the fees relate. Subscriber revenue is recognized as contracted, based upon the number of subscribers. Barter transactions We enter into barter transactions which represent advertising time or other services exchanged for non-cash goods and/or other services, such as promotional items, advertising, supplies and equipment. Revenue from barter transactions is recognized as income when the services have been provided. Expenses are recognized when goods or services are received or used. We record barter transactions at the fair value of goods or services received or advertising surrendered, whichever is more readily determinable. Barter revenue amounted to US$ 2.0 million , US$ 1.5 million and US$ 1.5 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Cash that is subject to restrictions is classified as restricted cash, if applicable. Program Rights Purchased program rights Purchased program rights and the related liabilities are recorded at their gross value when the license period begins and the programs are available for broadcast. Purchased program rights are classified as current or non-current assets based on anticipated usage, while the related program rights liability is classified as current or non-current according to the payment terms of the license agreement. Program rights are evaluated to determine if expected revenues are sufficient to cover the unamortized portion of the program. To the extent that expected revenues are insufficient, the program rights are written down to their expected net realizable value. These programming impairment charges, along with programming impairment charges related to own-produced content, are presented as a component of content costs in our consolidated statements of operations and comprehensive income / loss. The costs incurred to acquire program rights are capitalized and amortized over their expected useful lives in a manner which reflects the pattern we expect to use and benefit from the programming. If the initial airing of content allowed by a license is expected to provide more value than subsequent airings, we apply an accelerated method of amortization. These accelerated methods of amortization depend on the estimated number of runs the content is expected to receive, and are determined based on a study of historical results for similar programming. For programming that is not advertising supported, each program's costs are amortized on a straight-line basis over the license period. For content that is expected to be aired only once, the entire cost is recognized as expense on the first run. Produced program rights Program rights that are produced by us consist of deferred film and television costs including direct costs, production overhead and development costs. The costs are stated at the lower of cost, net of accumulated amortization, or fair value. The amount of capitalized production costs recognized as cost of revenues for a given production as it is exhibited in various markets is determined using the film forecast method. The proportion of costs recognized is equal to the proportion of the revenue recognized compared to the total revenue expected to be generated throughout the product's life cycle (the “ultimate revenues”). Our process for evaluating ultimate revenues is tailored to the potential we believe a title has for generating multiple revenues. The majority of our production is intended primarily for exploitation by our own broadcasters. In such cases, we consider mainly the free television window in our calculation of the ultimate revenues. Changes in estimates of ultimate revenues from period to period affect the amount of film costs amortized in a given period and, therefore, could have an impact on our results for that period. Produced program rights are amortized on an individual production basis using the ratio of the current period's gross revenues to estimated remaining total ultimate revenues from such programs. Produced program rights are evaluated to determine if expected revenues, less additional costs to be incurred (including exploitation costs) are sufficient to cover the unamortized portion of the program. To the extent that expected revenues are insufficient, the program rights are written down to their fair value. Property, Plant and Equipment Property, plant and equipment is carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives assigned to each major asset category as below: Asset category Estimated useful life Land Indefinite Buildings 25 years Machinery, fixtures and equipment 4 - 8 years Other equipment 3 - 8 years Software 3 - 5 years Construction-in-progress is not depreciated until put into use. Capital leases are depreciated on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. Leasehold improvements are depreciated over the shorter of the related lease term or the life of the asset. Assets to be disposed of are reported at the lower of carrying amount or fair value, less expected costs of disposal. Long-Lived Assets Including Intangible Assets with Finite Lives Long-lived assets include property, plant, equipment and intangible assets with finite lives. We evaluate the remaining useful life of intangible assets with finite lives each reporting period. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are evaluated at the asset group level when there is an indication that they may be impaired. The carrying amounts of long-lived assets are considered impaired when the anticipated undiscounted cash flows from such assets are less than their carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value. Goodwill and Indefinite-Lived Intangible Assets Historically, we have assessed the carrying amount of our goodwill and other indefinite-lived intangibles for impairment annually as of December 31, or more frequently if events or changes in circumstances indicate that such carrying amount may not be recoverable. During the third quarter of 2016, we elected to change the date of our assessment for all of our reporting units from December 31 to October 1. We believe this change will more closely align the assessment with our long- and short-range business planning and forecasting process. The voluntary change in accounting principle related to the annual testing date will not delay, accelerate or avoid an impairment charge. This change was not applied retrospectively as it was impracticable to do so because retrospective application would require application of significant estimates and assumptions with the use of hindsight. Accordingly, the change was applied prospectively. We evaluate goodwill and indefinite-lived intangible assets for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Such events and changes in circumstances include: • under-performance of operating segments or changes in projected results; • changes in the manner of utilization of an asset; • severe and sustained declines in the trading price of shares of our Class A common stock that are not attributable to factors other than the underlying value of our assets; • negative market conditions or economic trends; and • specific events, such as new legislation, new market entrants, changes in technology or adverse legal judgments that we believe could have a negative impact on our business. Goodwill is evaluated at the reporting unit level, which we have determined is each of our six operating segments. We have elected to bypass the qualitative assessment for all of our reporting units in 2016 and proceed directly to performing the first step of the goodwill impairment test. The fair value of our reporting units is determined based on estimates of future cash flows discounted at appropriate rates and on publicly available information, where appropriate. In the assessment of discounted future cash flows the following data is used: management's long-term plan, a terminal value at the end of the forecasted periods assuming an inflationary perpetual growth rate, and a discount rate selected with reference to the relevant cost of capital. An impairment exists when the carrying amount of a reporting unit (including its goodwill), exceeds its fair value after adjusting for any impairments of long-lived assets or indefinite-lived intangible assets. We evaluate the remaining useful life of each indefinite-lived intangible asset each reporting period. Each indefinite-lived intangible asset is evaluated for impairment individually. The fair value of our indefinite-lived intangible assets are determined using the relief from royalty method. An impairment loss is recognized if the carrying amount of an indefinite-lived intangible asset exceeds its fair value. Income Taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. In evaluating the realizability of our deferred tax assets, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. We recognize in the consolidated financial statements those tax positions determined to be “more likely than not” of being sustained upon examination, based on the technical merits of the positions and we recognize, when applicable, both accrued interest and penalties related to uncertain tax positions in income tax expense in the accompanying consolidated statements of operations and comprehensive income / loss. Foreign Currency Functional Currency Following the refinancing of the remaining outstanding dollar-denominated debt with Euro-denominated debt in April 2016, CME Ltd.'s income and expenses are primarily denominated in Euro. It is anticipated that CME Ltd.'s cash flows will primarily be in Euro. Accordingly, management has determined that CME Ltd.'s functional currency is the Euro with effect from April 1, 2016. As a result of this change, we recognized a loss of US$ 4.2 million of currency translation adjustment in the second quarter of 2016 due to the translation of non-monetary assets into Euro as of the date of the change. Our reporting currency continues to be the U.S. dollar. Translation of financial statements Our reporting currency is the dollar. The financial statements of our operations whose functional currency is other than the dollar are translated from such functional currency to dollars at the exchange rates in effect at the balance sheet date for assets and liabilities, and at weighted average rates for the period for revenues and expenses, including gains and losses. Translational gains and losses are charged or credited to accumulated other comprehensive income / loss, a component of equity. Certain of our intercompany loans to our subsidiaries are of a long-term investment nature. We recorded a gain of US$ 8.8 million and losses of US$ 89.0 million and US$ 164.4 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively, on the retranslation of these intercompany loans as an adjustment to accumulated other comprehensive income / loss, a component of shareholders' equity, as settlement of these loans is not planned or anticipated in the foreseeable future. Transactions in foreign currencies Gains and losses from foreign currency transactions are included in foreign currency exchange gain / loss, net in the consolidated statements of operations and comprehensive income / loss in the period during which they arise. Leases Leases are classified as either capital or operating. Those leases that transfer substantially all benefits and risks of ownership of the property to us are accounted for as capital leases. All other leases are accounted for as operating leases. Capital leases are accounted for as assets and are depreciated on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. Commitments to repay the principal amounts arising under capital lease obligations are included in current liabilities to the extent that the amount is repayable within one year; otherwise the principal is included in non-current liabilities. The capitalized lease obligation reflects the present value of future lease payments. The financing element of the lease payments is charged to interest expense over the term of the lease. Operating lease costs are expensed on a straight-line basis over the term of the lease. Financial Instruments Fair value of financial instruments The carrying amount of financial instruments, including cash, accounts receivable, and accounts payable and accrued liabilities, approximate their fair value due to the short-term nature of these items. The fair value of our long-term (as defined hereinafter) is included in Note 4, "Long-term Debt and Other Financing Arrangements" . Fair value is the price an asset or liability could be exchanged in an arm’s-length orderly transaction between knowledgeable, able and willing parties that is not a forced sale or liquidation. US GAAP requires significant management estimates in determining fair value. The extent of management’s judgments is highly dependent on the valuation model employed and the observability of inputs to the fair value model. The level of management judgment required in establishing fair value of financial instruments is more significant where there is no active market in which the instrument is traded. For financial instruments that are not remeasured through net income, we estimate fair value at issuance and account for the instrument at amortized cost. For financial instruments that are remeasured through net income, we assess the fair value of the instrument at each period end or earlier when events occur or circumstances change that would so require (see Note 13, "Financial Instruments and Fair Value Measurements" ). Derivative financial instruments We use derivative financial instruments for the purpose of mitigating currency and interest rate risks, which exist as part of ongoing business operations and financing activities. As a policy, we do not engage in speculative or leveraged transactions, nor do we hold or issue derivative financial instruments for trading purposes. Forward exchange contracts and currency swaps are used to mitigate exposures to currency fluctuations on certain short-term transactions generally denominated in currencies other than our functional currency. These contracts are marked to market at the balance sheet date, and the resultant unrealized gains and losses are recorded in the consolidated statements of operations and comprehensive income / loss, together with realized gains and losses arising on settlement of these contracts. Interest rate swaps and other instruments may be used to mitigate exposures to interest rate fluctuations on certain of our long-term debt instruments with variable interest rates. These contracts are marked to market at the balance sheet date, and the resultant unrealized gains and losses are recorded in the consolidated statements of operations and comprehensive income / loss, together with realized gains and losses arising on settlement of these contracts. From time to time, we may designate certain of these instruments as hedges and apply hedge accounting as discussed in Note 13, "Financial Instruments and Fair Value Measurements" . Stock-Based Compensation Stock-based compensation is recognized at fair value. We calculate the fair value of stock option awards using the Black-Scholes option pricing model on the grant date. The grant date fair value of restricted stock units ("RSUs") is calculated as the closing price of our Class A common stock on the date of grant. Stock-based compensation expense is recognized on a straight-line basis over the vesting period of the award. Stock-based compensation awards are accounted for as equity-settled transactions. Contingencies The estimated loss from a loss contingency such as a legal proceeding or other claim is recorded in the consolidated statements of operations and comprehensive income / loss if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. Disclosure of a loss contingency is made if there is at least a reasonable possibility that a loss has been incurred. Advertising Costs Advertising costs are expensed as incurred. Advertising expense incurred for the years ended December 31, 2016 , 2015 and 2014 totaled US$ 5.4 million , US$ 3.0 million and US$ 3.7 million , respectively. Earnings Per Share Basic and diluted net income / loss per share is calculated using the two-class method. Under the two-class method, basic net income / loss per common share is computed by dividing the net income available to common shareholders after deducting contractual amounts of accretion on our Series B Preferred Shares by the weighted-average number of common shares outstanding during the period. Diluted net income / loss per share is computed by dividing the adjusted net income by the weighted-average number of dilutive shares outstanding during the period. Recent Accounting Pronouncements Accounting Pronouncements Adopted On January 1, 2016 we adopted the following guidance issued by the Financial Accounting Standards Board (the “FASB”): In November 2014, the FASB issued guidance which standardizes the method used in the accounting for hybrid financial instruments issued in the form of a share. The guidance requires an entity to consider all relevant terms and features in evaluating the nature of the host contract in a hybrid financial instrument, including the embedded derivative feature being evaluated for bifurcation. The adoption of this guidance did not have a material impact on our consolidated financial statements. In April 2015, the FASB issued guidance which simplifies the balance sheet presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction of the carrying amount of that liability. The retrospective adoption of this guidance decreased our other non-current assets as at December 31, 2015 by US$ 13.8 million , with a corresponding decrease in our long-term debt and other financing arrangements in our consolidated balance sheet, with no impact to our consolidated statements of operations and comprehensive income / loss or consolidated statements of cash flows. In November 2015, the FASB issued guidance which requires that deferred tax balances be classified as non-current in our consolidated balance sheet. The prospective adoption of this guidance did not have any effect on our net deferred income tax liability. Prior period amounts have not been adjusted. In the third quarter of 2016, we adopted the FASB guidance issued in March 2016 intended to simplify accounting for share-based payment transactions, specifically with regard to accounting for forfeitures, income taxes, the classification as either equity or liabilities and the presentation in the statement of cash flows. We have made a policy election to account for forfeitures as they occur. The cumulative-effect adjustment to equity as a result of adopting this guidance was not material. The adoption of this guidance did not have any other material impacts on our consolidated financial statements or disclosures. Recent Accounting Pronouncements Issued In May 2014, the FASB issued new guidance which is intended to improve the comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance supersedes existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for our fiscal year beginning January 1, 2018. We are currently in the process of evaluating the impact of the adoption of this guidance on our consolidated financial statements. In February 2016, the FASB issued new guidance to increase transparency and comparability among organizations by recognizing leasing assets and liabilities on the balance sheet and requiring additional disclosures about an entity's leasing arrangements. The guidance requires that a lessee recognize a liability to make lease payments and a right-of-use asset, with an available exception for leases shorter than twelve months. The guidance is effective for our fiscal year beginning January 1, 2019. We are currently in the process of evaluating the impact of the adoption of this guidance on our consolidated financial statements. In August 2016, the FASB issued new guidance which is intended to reduce the existing diversity in practice related to specific cash flow issues. As applicable to CME, the guidance requires that cash flows at the settlement of zero-coupon debt instruments or debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing be bifurcated between cash outflows for operating activities for the portion attributable to accrued interest, and cash outflows for financing activities for the portion attributable to the principal. The guidance requires a retrospective transition method and is effective for our fiscal year beginning January 1, 2018, with early adoption permitted. We expect to adopt this guidance as of January 1, 2018. Upon adoption, our net cash flows generated from / used in continuing operating activities will decrease by US$ 110.7 million and US$ 1.1 million for the years ended December 31, 2016 and 2015, respectively, with a corresponding increase in net cash used in / provided by continuing financing activities. In October 2016, the FASB issued new guidance which is intended to improve the accounting for the income tax consequences of intercompany transfers of assets other than inventory. The guidance would require an entity to recognize the income tax consequences of such transfers in the period in which the transfer occurs, rather than defer recognition of current and deferred income taxes for the transfer until the asset is sold to a third party. The guidance requires a modified retrospective transition method through a cumulative-effect adjustment to retained earnings. The guidance is effective for our fiscal year beginning January 1, 2018, with early adoption permitted. The cumulative-effect adjustment to equity as a result of early adopting this guidance as of January 1, 2017 will not have a material impact on our consolidated financial statements. In January 2017, the FASB issued new guidance which is intended to simplify goodwill impairment testing by eliminating Step 2, and instead recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds the fair value of the reporting unit. The guidance also eliminates the requirement to perform a qualitative analysis for reporting units with a negative carrying value. The guidance is effective for us for annual and interim impairment tests after January 1, 2020, with early adoption permitted for interim and annual impairment tests performed from January 1, 2017. We are currently in the process of evaluating the impact of the adoption of this guidance on our consolidated financial statements and whether we will early adopt. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 3. GOODWILL AND INTANGIBLE ASSETS Goodwill: Goodwill by reporting unit as at December 31, 2016 and December 31, 2015 is summarized as follows: Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia Total Gross Balance, December 31, 2014 $ 175,494 $ 11,065 $ 800,640 $ 94,777 $ 53,088 $ 19,400 $ 1,154,464 Accumulated impairment losses (144,639 ) (10,454 ) (287,545 ) (11,028 ) — (19,400 ) (473,066 ) Balance, December 31, 2014 30,855 611 513,095 83,749 53,088 — 681,398 Foreign currency (3,129 ) (60 ) (41,149 ) (9,334 ) (5,483 ) — (59,155 ) Balance, December 31, 2015 27,726 551 471,946 74,415 47,605 — 622,243 Accumulated impairment losses (144,639 ) (10,454 ) (287,545 ) (11,028 ) — (19,400 ) (473,066 ) Gross Balance, December 31, 2015 $ 172,365 $ 11,005 $ 759,491 $ 85,443 $ 47,605 $ 19,400 $ 1,095,309 Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia Total Gross Balance, December 31, 2015 $ 172,365 $ 11,005 $ 759,491 $ 85,443 $ 47,605 $ 19,400 $ 1,095,309 Accumulated impairment losses (144,639 ) (10,454 ) (287,545 ) (11,028 ) — (19,400 ) (473,066 ) Balance, December 31, 2015 27,726 551 471,946 74,415 47,605 — 622,243 Foreign currency (976 ) (17 ) (15,008 ) (2,657 ) (1,516 ) — (20,174 ) Balance, December 31, 2016 26,750 534 456,938 71,758 46,089 — 602,069 Accumulated impairment losses (144,639 ) (10,454 ) (287,545 ) (11,028 ) — (19,400 ) (473,066 ) Gross Balance, December 31, 2016 $ 171,389 $ 10,988 $ 744,483 $ 82,786 $ 46,089 $ 19,400 $ 1,075,135 Other intangible assets: Changes in the net book value of our other intangible assets as at December 31, 2016 and December 31, 2015 is summarized as follows: December 31, 2016 December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Indefinite-lived: Trademarks $ 80,324 $ — $ 80,324 $ 83,188 $ — $ 83,188 Amortized: Broadcast licenses 185,686 (130,325 ) 55,361 191,860 (127,613 ) 64,247 Trademarks 591 (591 ) — 614 (614 ) — Customer relationships 51,338 (48,997 ) 2,341 53,120 (49,672 ) 3,448 Other 1,522 (1,208 ) 314 2,138 (1,859 ) 279 Total $ 319,461 $ (181,121 ) $ 138,340 $ 330,920 $ (179,758 ) $ 151,162 Broadcast licenses consist of our TV NOVA license in the Czech Republic, which is amortized on a straight-line basis through the expiration date of the license in 2025. Our customer relationships are deemed to have an economic useful life of, and are amortized on a straight-line basis, over five years to fifteen years . The estimated amortization expense for our intangible assets with finite lives as of December 31, 2016 is as follows: 2017 $ 7,777 2018 7,703 2019 7,240 2020 7,020 2021 6,960 Impairment of goodwill and other intangible assets: As discussed in Note 2, "Basis of Presentation and Summary of Significant Accounting Policies" , we elected to change the date of our assessment for all of our reporting units from December 31 to October 1, with effect from October 1, 2016. Upon conclusion of this assessment, we determined that the fair values of our goodwill were substantially in excess of their respective carrying values. We did not recognize any impairment charges in respect of goodwill and other intangible assets during the years ended December 31, 2016, 2015 or 2014. |
LONG-TERM DEBT AND OTHER FINANC
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS | LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Summary December 31, 2016 December 31, 2015 Long-term debt $ 999,209 $ 906,028 Other credit facilities and capital leases 4,313 3,648 Total long-term debt and other financing arrangements 1,003,522 909,676 Less: current maturities (1,494 ) (1,155 ) Total non-current long-term debt and other financing arrangements $ 1,002,028 $ 908,521 Financing Transactions On April 7, 2016, we drew the EUR 468.8 million (approximately US$ 534.0 million as at the transaction date) 2021 Euro Term Loan in full, the proceeds of which, together with cash on hand, were applied toward the repayment of the outstanding US$ 38.2 million of the 15.0% term loan facility due 2017 (the "2017 Term Loan"), plus US$ 1.5 million of accrued and unpaid interest thereon, and toward the redemption and discharge of the outstanding US$ 502.5 million of the 15.0% Senior Secured Notes due 2017 (the "2017 PIK Notes"), plus US$ 26.6 million of accrued and unpaid interest thereon. Also on April 7, 2016, we extended the maturity date of the 2018 Euro Term Loan by one year to November 1, 2018. In addition, we extended the maturity date of the 2021 Revolving Credit Facility to February 19, 2021, with the borrowing capacity reduced from US$ 115.0 million to US$ 50.0 million from January 1, 2018. We also amended the 2021 Revolving Credit Facility such that interest is determined on the basis of our net leverage ratio (as defined in the Reimbursement Agreement) and ranges from LIBOR (subject to a floor of 1.0% ) plus 9.0% if our net leverage ratio is greater than or equal to seven times, to LIBOR (subject to a floor of 1.0% ) plus 6.0% per annum if our net leverage ratio is less than five times. The modifications of the 2018 Euro Term Loan and the 2019 Euro Term Loan were accounted for in the same manner as a debt extinguishment. As a result of the above transactions, we recognized a loss on extinguishment of debt of US$ 150.2 million in the second quarter of 2016. During the year ended December 31, 2016 , we paid US$ 48.6 million of Guarantee Fees (as defined below) related to the 2018 Euro Term Loan and the 2021 Euro Term Loan. The Guarantee Fee payments are presented as cash outflows from operating activities in our consolidated statements of cash flows. Overview Total long-term debt and credit facilities comprised the following at December 31, 2016 : Principal Amount of Liability Component Debt Issuance Costs (1) Net Carrying Amount 2018 Euro Term Loan 264,368 (634 ) 263,734 2019 Euro Term Loan 248,067 (473 ) 247,594 2021 Euro Term Loan 494,162 (6,281 ) 487,881 2021 Revolving Credit Facility — — — Total long-term debt and credit facilities $ 1,006,597 $ (7,388 ) $ 999,209 (1) Debt issuance costs related to the 2018 Euro Term Loan, 2019 Euro Term Loan and 2021 Euro Term Loan are being amortized on a straight-line basis, which approximates the effective interest method, over the life of the respective instruments. Debt issuance costs related to the 2021 Revolving Credit Facility are classified as non-current assets in our consolidated balance sheet and are being amortized on a straight-line basis over the life of the 2021 Revolving Credit Facility. Long-term Debt Our long-term debt comprised the following at December 31, 2016 and December 31, 2015 : Carrying Amount December 31, 2016 December 31, 2015 2017 PIK Notes — 359,789 2017 Term Loan — 27,592 2018 Euro Term Loan 263,734 272,189 2019 Euro Term Loan 247,594 246,458 2021 Euro Term Loan 487,881 — $ 999,209 $ 906,028 2018 Euro Term Loan As at December 31, 2016 , the principal amount of our floating rate senior unsecured term credit facility (as amended, the "2018 Euro Term Loan") outstanding was EUR 250.8 million (approximately US$ 264.4 million ). The 2018 Euro Term Loan bears interest at three-month EURIBOR (fixed pursuant to customary hedging arrangements (see Note 13, "Financial Instruments and Fair Value Measurements" )) plus a margin of between 1.1% and 1.9% depending on the credit rating of Time Warner Inc. ("Time Warner"). As at December 31, 2016 , the all-in borrowing rate on amounts outstanding under the 2018 Euro Term Loan was 8.5% (the components of which are shown in the table below under the heading "Interest Rate Summary"). Interest on the 2018 Euro Term Loan is payable quarterly in arrears on each March 12, June 12, September 12 and December 12. The 2018 Euro Term Loan matures on November 1, 2018 and may be prepaid at our option, in whole or in part, without premium or penalty, upon the occurrence of certain events, including if our net leverage (as defined in the Reimbursement Agreement) decreases to below five times for two consecutive quarters, or at any time from November 1, 2017. The 2018 Euro Term Loan is a senior unsecured obligation of CME Ltd., and is unconditionally guaranteed by our 100% owned subsidiary CME Media Enterprises B.V. ("CME BV") and by Time Warner and certain of its subsidiaries. The fair values of the 2018 Euro Term Loan of US$ 233.3 million and US$ 273.0 million as at December 31, 2016 and December 31, 2015 , respectively, were determined based on comparable instruments that trade in active markets. This measurement of estimated fair value uses Level 2 inputs as described in Note 13, "Financial Instruments and Fair Value Measurements" . Certain derivative instruments, including contingent event of default and change of control put options, have been identified as being embedded in the 2018 Euro Term Loan. The embedded derivatives are considered clearly and closely related to the 2018 Euro Term Loan, and as such are not required to be accounted for separately. 2019 Euro Term Loan As at December 31, 2016 , the principal amount of our floating rate senior unsecured term credit facility (the "2019 Euro Term Loan") outstanding was EUR 235.3 million (approximately US$ 248.1 million ). The 2019 Euro Term Loan bears interest at three-month EURIBOR (fixed pursuant to customary hedging arrangements (see Note 13, "Financial Instruments and Fair Value Measurements" )) plus a margin of between 1.1% and 1.9% depending on the credit rating of Time Warner. As at December 31, 2016 , the all-in borrowing rate on amounts outstanding under the 2019 Euro Term Loan was 8.5% (the components of which are shown in the table below under the heading "Interest Rate Summary"). Interest on the 2019 Euro Term Loan is payable quarterly in arrears on each February 13, May 13, August 13 and November 13. The 2019 Euro Term Loan matures on November 1, 2019 and may currently be prepaid at our option, in whole or in part, without premium or penalty. The 2019 Euro Term Loan is a senior unsecured obligation of CME Ltd., and is unconditionally guaranteed by CME BV and by Time Warner and certain of its subsidiaries. The fair values of the 2019 Euro Term Loan of US$ 203.3 million and US$ 256.2 million as at December 31, 2016 and December 31, 2015 , respectively, were determined based on comparable instruments that trade in active markets, plus an applicable spread. This measurement of estimated fair value uses Level 2 inputs as described in Note 13, "Financial Instruments and Fair Value Measurements" . Certain derivative instruments, including contingent event of default and change of control put options, have been identified as being embedded in the 2019 Euro Term Loan. The embedded derivatives are considered clearly and closely related to the 2019 Euro Term Loan, and as such are not required to be accounted for separately. 2021 Euro Term Loan As at December 31, 2016 , the principal amount of our floating rate senior unsecured term credit facility (the "2021 Euro Term Loan") outstanding was EUR 468.8 million (approximately US$ 494.2 million ). The 2021 Euro Term Loan bears interest at three-month EURIBOR (fixed pursuant to customary hedging arrangements (see Note 13, "Financial Instruments and Fair Value Measurements" )) plus a margin of between 1.1% and 1.9% depending on the credit rating of Time Warner. The all-in borrowing rate including the Guarantee Fee ranges from 10.5% (if our net leverage ratio is greater than or equal to eight times) to 7.0% per annum (if our net leverage ratio is less than five times). As at December 31, 2016 , the all-in borrowing rate on amounts outstanding under the 2021 Euro Term Loan was 9.0% (the components of which are shown in the table below under the heading "Interest Rate Summary"). Interest on the 2021 Euro Term Loan is payable quarterly in arrears on each April 7, July 7, October 7 and January 7. The 2021 Euro Term Loan matures on February 19, 2021 and may be prepaid at our option, in whole or in part, without premium or penalty, upon the earlier of the occurrence of certain events, including if our net leverage (as defined in the Reimbursement Agreement) decreases to below five times for two consecutive quarters, or at any time from February 19, 2020. The 2021 Euro Term Loan is a senior unsecured obligation of CME BV, and is unconditionally guaranteed by CME Ltd. and by Time Warner and certain of its subsidiaries. The fair value of the 2021 Euro Term Loan of US$ 369.7 million as at December 31, 2016 was determined based on comparable instruments that trade in active markets, plus an applicable spread. This measurement of estimated fair value uses Level 2 inputs as described in Note 13, "Financial Instruments and Fair Value Measurements" . Certain derivative instruments, including contingent event of default and change of control put options, have been identified as being embedded in the 2021 Euro Term Loan. The embedded derivatives are considered clearly and closely related to the 2021 Euro Term Loan, and as such are not required to be accounted for separately. Reimbursement Agreement and Guarantee Fees In connection with Time Warner’s guarantees of the 2018 Euro Term Loan, 2019 Euro Term Loan and 2021 Euro Term Loan (collectively, the “Euro Term Loans”), we entered into a reimbursement agreement (as amended and restated, the “Reimbursement Agreement") with Time Warner which provides for the payment of guarantee fees (collectively, the "Guarantee Fees") to Time Warner as consideration for those guarantees, and that we will reimburse Time Warner for any amounts paid by them under any guarantee or through any loan purchase right exercised by Time Warner. The loan purchase right allows Time Warner to purchase any amount outstanding under the Euro Term Loans from the lenders following an event of default under the Euro Term Loans or the Reimbursement Agreement. The Reimbursement Agreement is jointly and severally guaranteed by both our 100% owned subsidiaries Central European Media Enterprises N.V. ("CME NV") and CME BV and is secured by a pledge over 100% of the outstanding shares of each of CME NV and CME BV. The covenants and events of default under the Reimbursement Agreement are substantially the same as under the 2021 Revolving Credit Facility. We pay Guarantee Fees to Time Warner based on the amounts outstanding on the Euro Term Loans calculated on a per annum basis as shown in the table below. For the year s ended December 31, 2016 , 2015 and 2014 , we recognized US$ 68.0 million , US$ 21.5 million and US$ 1.2 million , respectively, of Guarantee Fees as interest expense in our consolidated statements of operations and comprehensive income / loss. The Guarantee Fees relating to the 2018 Euro Term Loan and the 2019 Euro Term Loan are payable semi-annually in arrears on each May 1 and November 1, in cash or in kind (by adding such semi-annual Guarantee Fees to any such amount then outstanding). The Guarantee Fees relating to the 2021 Euro Term Loan are payable semi-annually in arrears on each June 1 and December 1 with the first 5.0% (including the base rate and the rate paid pursuant to the hedging arrangements) paid in cash and the remainder payable at our election in cash or in kind. The Guarantee Fees paid in kind are presented as a component of other non-current liabilities (see Note 10, "Other Liabilities" ) and bear interest per annum at their respective Guarantee Fee rate (as set forth in the table below), payable semi-annually in arrears in cash or in kind (by adding such semi-annual Guarantee Fees to any such amount then outstanding) on each respective payment date. Guarantee Fees paid in cash are included in cash flows from operating activities in our consolidated statements of cash flows. Interest Rate Summary Base Rate Rate Fixed Pursuant to Interest Rate Hedges Guarantee Fee Rate All-in Borrowing Rate 2018 Euro Term Loan 1.50 % 0.21 % (1) 6.79 % 8.50 % 2019 Euro Term Loan 1.50 % 0.31 % 6.69 % 8.50 % 2021 Euro Term Loan 1.50 % 0.28 % 7.22 % 9.00 % 2021 Revolving Credit Facility (2) 9.00 % — — 9.00 % (1) Effective until November 1, 2017. From November 1, 2017 through maturity on November 1, 2018, the rate fixed pursuant to interest rate hedges will decrease to 0.14% , with a corresponding increase in the guarantee fee rate, such that the all-in borrowing rate remains 8.50% . (2) As at December 31, 2016 , the aggregate principal amount available under the 2021 Revolving Credit Facility was undrawn. 2021 Revolving Credit Facility We had no balance outstanding under the US$ 115.0 million revolving credit facility (the “2021 Revolving Credit Facility”), all of which was available to be drawn as at December 31, 2016 . The 2021 Revolving Credit Facility bears interest at a rate per annum based on, at our option, an alternate base rate plus 8.0% or an amount equal to the greater of (i) an adjusted LIBO rate and (ii) 1.0% , plus, in each case, 9.0% , with the first 5.0% paid in cash and the remainder payable at our election in cash or in kind by adding such accrued interest to the applicable principal amount outstanding under the 2021 Revolving Credit Facility. The interest rate on the 2021 Revolving Credit Facility is determined on the basis of our net leverage ratio (as defined in the Reimbursement Agreement) and ranges from LIBOR (subject to a floor of 1.0% ) plus 9.0% if our net leverage is greater than or equal to seven times, to LIBOR (subject to a floor of 1.0% ) plus 6.0% per annum if our net leverage ratio is less than five times. The maturity date of the 2021 Revolving Credit Facility is February 19, 2021 with the available amount decreasing to US$ 50.0 million from January 1, 2018. When drawn, the 2021 Revolving Credit Facility permits prepayment at our option in whole or in part without penalty. The 2021 Revolving Credit Facility is jointly and severally guaranteed by CME NV and CME BV and is secured by a pledge over 100% of the outstanding shares of each of CME NV and CME BV. The 2021 Revolving Credit Facility agreement contains limitations on CME’s ability to incur indebtedness, incur guarantees, grant liens, pay dividends or make other distributions, enter into certain affiliate transactions, consolidate, merge or effect a corporate reconstruction, make certain investments acquisitions and loans, and conduct certain asset sales. The agreement also contains maintenance covenants in respect of interest cover, cash flow cover and total leverage ratios, and has covenants in respect of incurring indebtedness, the provision of guarantees, making investments and disposals, granting security and certain events of defaults. Other Credit Facilities and Capital Lease Obligations Other credit facilities and capital lease obligations comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Credit facilities (1) – (3) $ — $ — Capital leases 4,313 3,648 Total credit facilities and capital leases 4,313 3,648 Less: current maturities (1,494 ) (1,155 ) Total non-current credit facilities and capital leases $ 2,819 $ 2,493 (1) We have a cash pooling arrangement with Bank Mendes Gans (“BMG”), a subsidiary of ING Bank N.V. (“ING”), which enables us to receive credit across the group in respect of cash balances which our subsidiaries deposit with BMG. Cash deposited by our subsidiaries with BMG is pledged as security against the drawings of other subsidiaries up to the amount deposited. As at December 31, 2016 , we had deposits of US$ 16.4 million in and no drawings on the BMG cash pool. Interest is earned on deposits at the relevant money market rate. As at December 31, 2015 , we had deposits of US$ 19.6 million in and no drawings on the BMG cash pool. (2) As at December 31, 2016 and December 31, 2015 , there were no drawings outstanding under a CZK 735.0 million (approximately US$ 28.7 million ) factoring framework agreement with Factoring Ceska Sporitelna (“FCS”). Under this facility, up to CZK 735.0 million (approximately US$ 28.7 million ) of receivables from certain customers in the Czech Republic may be factored on a recourse or non-recourse basis. The facility has a factoring fee of 0.3% of any factored receivable and bears interest at one-month PRIBOR plus 2.5% per annum for the period that receivables are factored and outstanding. (3) As at December 31, 2016 there were RON 105.7 million (approximately US$ 24.6 million ) of receivables factored under a factoring framework agreement with Global Funds IFN S.A. entered into in the first quarter of 2016. Under this facility, receivables from certain customers in Romania may be factored on a non-recourse basis. The facility has a factoring fee of 4.0% of any factored receivable and bears interest at 6.0% per annum from the date the receivables are factored to the due date of the factored receivable. Total Group At December 31, 2016 , the maturity of our long-term and credit facilities was as follows: 2017 $ — 2018 264,368 2019 248,067 2020 — 2021 494,162 2022 and thereafter — Total long-debt and credit facilities 1,006,597 Debt issuance costs (7,388 ) Carrying amount of long-debt and credit facilities $ 999,209 Capital Lease Commitments We lease certain of our office and broadcast facilities as well as machinery and equipment under various leasing arrangements. The future minimum lease payments, by year and in the aggregate, under capital leases with initial or remaining non-cancellable lease terms in excess of one year, consisted of the following at December 31, 2016 : 2017 $ 1,570 2018 1,339 2019 1,003 2020 525 2021 13 2022 and thereafter — Total undiscounted payments 4,450 Less: amount representing interest (137 ) Present value of net minimum lease payments $ 4,313 |
PROGRAM RIGHTS
PROGRAM RIGHTS | 12 Months Ended |
Dec. 31, 2016 | |
PROGRAM RIGHTS [Abstract] | |
PROGRAM RIGHTS | PROGRAM RIGHTS Program rights comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Program rights: Acquired program rights, net of amortization $ 183,303 $ 179,632 Less: current portion of acquired program rights (86,151 ) (85,972 ) Total non-current acquired program rights 97,152 93,660 Produced program rights – Feature Films: Released, net of amortization 1,039 1,298 Produced program rights – Television Programs: Released, net of amortization 54,149 56,125 Completed and not released 2,593 3,500 In production 23,712 13,783 Development and pre-production 711 707 Total produced program rights 82,204 75,413 Total non-current acquired program rights and produced program rights $ 179,356 $ 169,073 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Third-party customers $ 187,937 $ 176,628 Less: allowance for bad debts and credit notes (9,598 ) (9,201 ) Total accounts receivable $ 178,339 $ 167,427 Bad debt expense for the year ended December 31, 2016 , 2015 and 2014 was US$ 3.6 million , US$ 2.1 million , and US$ 4.2 million , respectively. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other current and non-current assets comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Current: Prepaid acquired programming $ 22,511 $ 22,761 Other prepaid expenses 5,270 6,941 Deferred tax — 10,425 VAT recoverable 713 733 Income taxes recoverable 206 249 Other 3,771 2,097 Total other current assets $ 32,471 $ 43,206 December 31, 2016 December 31, 2015 Non-current: Capitalized debt costs $ 15,018 $ 27,060 Deferred tax 4,570 124 Other 1,855 3,949 Total other non-current assets $ 21,443 $ 31,133 Capitalized debt costs are being amortized over the term of the related debt instruments using the straight-line method, which approximates the effective interest method. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Land and buildings $ 90,988 $ 92,237 Machinery, fixtures and equipment 202,110 164,503 Other equipment 33,752 32,314 Software 55,542 55,656 Construction in progress 5,316 3,001 Total cost 387,708 347,711 Less: accumulated depreciation (278,619 ) (239,189 ) Total net book value $ 109,089 $ 108,522 Assets held under capital leases (included in the above) Land and buildings $ 3,684 $ 3,805 Machinery, fixtures and equipment 6,338 4,646 Total cost 10,022 8,451 Less: accumulated depreciation (4,316 ) (3,556 ) Total net book value $ 5,706 $ 4,895 Depreciation expense for the years ended December 31, 2016 , 2015 and 2014 was US$ 30.2 million , US$ 27.9 million and US$ 32.8 million , respectively. The movement in the net book value of property, plant and equipment during the years ended December 31, 2016 and 2015 is comprised of: For The Year Ended December 31, 2016 2015 Opening balance $ 108,522 $ 114,335 Additions 34,371 34,523 Disposals (88 ) (290 ) Depreciation (30,190 ) (27,943 ) Foreign currency movements (3,526 ) (10,810 ) Other — (1,293 ) Ending balance $ 109,089 $ 108,522 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Accounts payable and accrued expenses $ 59,522 $ 57,042 Related party accounts payable 192 53 Programming liabilities 29,249 24,901 Related party programming liabilities 18,959 14,583 Duties and other taxes payable 13,446 12,856 Accrued staff costs 20,565 20,709 Accrued interest payable 2,941 914 Related party accrued interest payable (including Guarantee Fees) 9,588 477 Income taxes payable 5,514 249 Other accrued liabilities 1,005 2,921 Total accounts payable and accrued liabilities $ 160,981 $ 134,705 |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities [Abstract] | |
OTHER LIABILITIES | OTHER LIABILITIES Other current and non-current liabilities comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Current: Deferred revenue $ 5,333 $ 7,546 Derivative liabilities 477 650 Restructuring provision — 458 Legal provisions 2,680 1,520 Other 599 274 Total other current liabilities $ 9,089 $ 10,448 December 31, 2016 December 31, 2015 Non-current: Deferred tax $ 20,335 $ 25,990 Related party commitment fee payable (1) 9,905 9,240 Related party Guarantee Fee payable (Note 4) 34,492 22,655 Accrued interest — 977 Related party accrued interest — 5,304 Other 4,026 1,583 Total other non-current liabilities $ 68,758 $ 65,749 (1) Represents the commitment fee ("Commitment Fee") payable to Time Warner, including accrued interest, in respect of its obligation under a commitment letter dated November 14, 2014 between Time Warner and us whereby Time Warner agreed to provide or assist with arranging a loan facility to repay our 5.0% senior convertible notes at maturity in November 2015. The Commitment Fee is payable by November 1, 2019, the maturity date of the 2019 Euro Term Loan, or earlier if the repayment of the 2019 Euro Term Loan is accelerated. The Commitment Fee bears interest at 8.5% per annum and such interest is payable in arrears on each May 1 and November 1, and may be paid in cash or in kind, at our election. |
CONVERTIBLE REDEEMABLE PREFERRE
CONVERTIBLE REDEEMABLE PREFERRED SHARES (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Temporary Equity Disclosure [Abstract] | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | CONVERTIBLE REDEEMABLE PREFERRED SHARES 200,000 shares of our Series B Convertible Redeemable Preferred Stock, par value US$ 0.08 per share (the “Series B Preferred Shares”) were issued and outstanding as at December 31, 2016 and 2015 . As at December 31, 2016 and December 31, 2015 , the carrying value of the Series B Preferred Shares was US$ 254.9 million and US$ 241.2 million , respectively. The Series B Preferred Shares are held by Time Warner Media Holdings B.V. ("TW Investor"). As of December 31, 2016 , the 200,000 shares of Series B preferred stock were convertible into approximately 105.2 million shares of Class A common stock. The initial stated value of the Series B Preferred Shares was US$ 1,000 per share. The Series B Preferred Shares accrete at an annual rate of 3.75% , compounded quarterly, from and including June 25, 2016 to but excluding June 25, 2018. We have the right to pay cash to the holder in lieu of any further accretion. Each Series B Preferred Share may, at the holder's option, be converted into the number of shares of our Class A common stock determined by dividing (i) the accreted stated value plus accrued but unpaid dividends, if any, in each case as of the conversion date, by (ii) the conversion price, which was approximately US$ 2.42 at December 31, 2016 , but is subject to adjustment from time to time pursuant to customary weighted-average anti-dilution provisions with respect to our issuances of equity or equity-linked securities at a price below the then-applicable conversion price (excluding any securities issued under our benefit plans at or above fair market value). We have the right to redeem the Series B Preferred Shares in whole or in part upon 30 days' written notice. The redemption price of each outstanding Series B Preferred Share is equal to its accreted stated value plus accrued but unpaid dividends, if any, in each case as of the redemption date specified in the redemption notice. After receipt of a redemption notice, each holder of Series B Preferred Shares will have the right to convert, prior to the date of redemption, all or part of such Series B Preferred Shares to be redeemed by us into shares of our Class A common stock in accordance with the terms of conversion described above. Holders of the Series B Preferred Shares will have no voting rights on any matter presented to holders of any class of our capital stock, with the exception that they may vote with holders of shares of our Class A common stock (i) with respect to a change of control event or (ii) as provided by our bye-laws or applicable Bermuda law. Holders of Series B Preferred Shares will participate in any dividends declared or paid on our Class A common stock on an as-converted basis. The Series B Preferred Shares will rank pari passu with our Series A Convertible Preferred Stock and senior to all other equity securities of the Company in respect of payment of dividends and distribution of assets upon liquidation. The Series B Preferred Shares have such other rights, powers and preferences as are set forth in the Certificate of Designation for the Series B Preferred Shares. We concluded that the Series B Preferred Shares were not considered a liability and that the embedded conversion feature in the Series B Preferred Shares was clearly and closely related to the host contract and therefore did not need to be bifurcated. The Series B Preferred Shares are required to be classified outside of permanent equity because such shares can be redeemed for cash in certain circumstances. The Series B Preferred Shares are carried on the balance sheet at redemption value. As the Series B Preferred Shares are redeemable, we have accreted changes in the redemption value since issuance. For the years ended December 31, 2016 , 2015 and 2014 , we recognized accretion on the Series B Preferred Shares of US$ 13.7 million , US$ 17.3 million and US$ 16.0 million , respectively, with corresponding decreases in additional paid-in capital, net of the effect of foreign exchange. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
EQUITY | EQUITY Preferred Stock 5,000,000 shares of Preferred Stock were authorized as at December 31, 2016 and 2015 . One share of Series A Convertible Preferred Stock (the “Series A Preferred Share”) was issued and outstanding as at December 31, 2016 and 2015 . The Series A Preferred Share is convertible into 11,211,449 shares of Class A common stock on the date that is 61 days after the date on which the ownership of our outstanding shares of Class A common stock by a group that includes TW Investor and its affiliates would not be greater than 49.9% . The Series A Preferred Share is entitled to one vote per each share of Class A common stock into which it is convertible and has such other rights, powers and preferences, including potential adjustments to the number of shares of Class A common stock to be issued upon conversion, as are set forth in the Certificate of Designation for the Series A Preferred Share. 200,000 shares of Series B Preferred Shares were issued and outstanding as at December 31, 2016 and 2015 . (see Note 11, "Convertible Redeemable Preferred Shares" ). As of December 31, 2016 , the 200,000 Series B Preferred Shares were convertible into approximately 105.2 million shares of Class A common stock. Class A and B Common Stock 440,000,000 shares of Class A common stock and 15,000,000 shares of Class B common stock were authorized as at December 31, 2016 and December 31, 2015 . The rights of the holders of Class A common stock and Class B common stock are identical except for voting rights. The shares of Class A common stock are entitled to one vote per share and the shares of Class B common stock are entitled to ten votes per share. Shares of Class B common stock are convertible into shares of Class A common stock on a one -for- one basis for no additional consideration. Holders of each class of shares are entitled to receive dividends and upon liquidation or dissolution are entitled to receive all assets available for distribution to holders of our common stock. Under our bye-laws, the holders of each class have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. There were 143.4 million and 135.8 million shares of Class A common stock outstanding at December 31, 2016 and 2015 , respectively, and no shares of Class B common stock outstanding at December 31, 2016 or 2015 . As at December 31, 2016 , TW Investor owns 42.8% of the outstanding shares of Class A common stock and has a 47.0% voting interest in the Company due to its ownership of the Series A Preferred Share. Warrants On May 2, 2014, we issued 114,000,000 warrants in connection with a rights offering. Each warrant may be exercised until May 2, 2018 and entitles the holder thereof to receive one share of our Class A common stock at an exercise price of US$ 1.00 per share in cash. During 2016 , 6,996,955 warrants were exercised resulting in proceeds to us of approximately US$ 7.0 million . As at December 31, 2016 , 107,003,045 warrants remain outstanding. Time Warner and TW Investor collectively hold 100,926,996 of these warrants. The warrants are classified in additional paid-in capital, a component of equity, and are not subject to subsequent revaluation. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 13. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS ASC 820, “Fair Value Measurements and Disclosure”, establishes a hierarchy that prioritizes the inputs to those valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are: Basis of Fair Value Measurement Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted instruments. Level 2 Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. We evaluate the position of each financial instrument measured at fair value in the hierarchy individually based on the valuation methodology we apply. The carrying amount of financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities, approximate their fair value due to the short-term nature of these items. The fair value of our long-term debt is included in Note 4, "Long-term Debt and Other Financing Arrangements" . Hedge Accounting Activities Cash Flow Hedges of Interest Rate Risk We are party to interest rate swap agreements to mitigate our exposure to interest rate fluctuations on the outstanding principal amount of our Euro Term Loans. These interest rate swaps, designated as cash flow hedges, provide us with variable-rate cash receipts in exchange for fixed-rate payments over the lives of the agreements, with no exchange of the underlying notional amount. These instruments are carried at fair value on our consolidated balance sheets, and the effective portion of changes in the fair value is recorded in accumulated other comprehensive income / loss and subsequently reclassified to interest expense when the hedged item affects earnings. The ineffective portion of changes in the fair value is recognized immediately in the change in fair value of derivatives in our consolidated statements of operations and comprehensive income / loss. For the years ended December 31, 2016 and 2015 and 2014 , we did not recognize any charges related to hedge ineffectiveness. Information relating to financial instruments is as follows: Trade Date Number of Contracts Description Aggregate Notional Amount Maturity Date Objective Fair Value as at December 31, 2016 April 5, 2016 5 Interest rate swap € 468,800 February 21, 2021 Interest rate hedge underlying 2021 Euro Term Loan $ (1,711 ) April 5, 2016 4 Interest rate swap € 250,800 November 1, 2018 Interest rate hedge underlying 2018 Euro Term Loan, forward starting on November 1, 2017 $ (284 ) November 10, 2015 3 Interest rate swap € 235,335 November 1, 2019 Interest rate hedge underlying 2019 Euro Term Loan $ (1,658 ) November 14, 2014 2 Interest rate swap € 250,800 November 1, 2017 Interest rate hedge underlying 2018 Euro Term Loan $ (477 ) We value the interest rate swap agreements using a valuation model which calculates the fair value on the basis of the net present value of the estimated future cash flows. The most significant input used in the valuation model is the expected EURIBOR-based yield curve. These instruments were allocated to Level 2 of the fair value hierarchy because the critical inputs to this model, including current interest rates, relevant yield curves and the known contractual terms of the instruments, were readily observable. Accumulated Other Comprehensive Loss BALANCE December 31, 2015 $ (1,420 ) Loss on interest rate swaps (5,447 ) Reclassified to interest expense 2,416 BALANCE December 31, 2016 $ (4,451 ) Non-Hedge Accounting Activities The change in fair value of derivatives not designated as hedging instruments comprised the following for the years ended December 31, 2016 , 2015 and 2014 : For The Year Ended December 31, 2016 2015 2014 Currency swaps $ (10,213 ) $ 4,848 $ 2,311 Foreign Currency Risk From time to time, we have entered into forward foreign exchange contracts to reduce our exposure to movements in foreign exchange rates related to contractual payments under certain dollar-denominated agreements. As at December 31, 2016 , we had no forward foreign exchange contracts outstanding. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments Fair value of financial instruments The carrying amount of financial instruments, including cash, accounts receivable, and accounts payable and accrued liabilities, approximate their fair value due to the short-term nature of these items. The fair value of our long-term (as defined hereinafter) is included in Note 4, "Long-term Debt and Other Financing Arrangements" . Fair value is the price an asset or liability could be exchanged in an arm’s-length orderly transaction between knowledgeable, able and willing parties that is not a forced sale or liquidation. US GAAP requires significant management estimates in determining fair value. The extent of management’s judgments is highly dependent on the valuation model employed and the observability of inputs to the fair value model. The level of management judgment required in establishing fair value of financial instruments is more significant where there is no active market in which the instrument is traded. For financial instruments that are not remeasured through net income, we estimate fair value at issuance and account for the instrument at amortized cost. For financial instruments that are remeasured through net income, we assess the fair value of the instrument at each period end or earlier when events occur or circumstances change that would so require (see Note 13, "Financial Instruments and Fair Value Measurements" ). Derivative financial instruments We use derivative financial instruments for the purpose of mitigating currency and interest rate risks, which exist as part of ongoing business operations and financing activities. As a policy, we do not engage in speculative or leveraged transactions, nor do we hold or issue derivative financial instruments for trading purposes. Forward exchange contracts and currency swaps are used to mitigate exposures to currency fluctuations on certain short-term transactions generally denominated in currencies other than our functional currency. These contracts are marked to market at the balance sheet date, and the resultant unrealized gains and losses are recorded in the consolidated statements of operations and comprehensive income / loss, together with realized gains and losses arising on settlement of these contracts. Interest rate swaps and other instruments may be used to mitigate exposures to interest rate fluctuations on certain of our long-term debt instruments with variable interest rates. These contracts are marked to market at the balance sheet date, and the resultant unrealized gains and losses are recorded in the consolidated statements of operations and comprehensive income / loss, together with realized gains and losses arising on settlement of these contracts. From time to time, we may designate certain of these instruments as hedges and apply hedge accounting as discussed in Note 13, "Financial Instruments and Fair Value Measurements" . ASC 820, “Fair Value Measurements and Disclosure”, establishes a hierarchy that prioritizes the inputs to those valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are: Basis of Fair Value Measurement Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted instruments. Level 2 Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. We evaluate the position of each financial instrument measured at fair value in the hierarchy individually based on the valuation methodology we apply. The carrying amount of financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities, approximate their fair value due to the short-term nature of these items. The fair value of our long-term debt is included in Note 4, "Long-term Debt and Other Financing Arrangements" . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES As our investments are predominantly owned by Dutch holding companies, the components of the provision / credit for income taxes and of the loss before tax have been analyzed between their Netherlands and non-Netherlands components. Similarly the Dutch corporate income tax rates have been used in the reconciliation of income taxes. Loss from continuing operations before income taxes The Netherlands and non-Netherlands components of loss from continuing operations before income taxes are: For The Year Ended December 31, 2016 2015 2014 Domestic $ (66,226 ) $ (73,132 ) $ (117,247 ) Foreign (107,054 ) (29,668 ) (35,576 ) Total $ (173,280 ) $ (102,800 ) $ (152,823 ) Total tax (provision) / credit for the years ended December 31, 2016 , 2015 and 2014 was allocated as follows: For The Year Ended December 31, 2016 2015 2014 Income tax (provision) / credit from continuing operations $ (7,317 ) $ 515 $ 1,358 Income tax credit from discontinued operations — 91 1,987 Total (provision) / tax credit $ (7,317 ) $ 606 $ 3,345 Provision / Credit for Income Taxes The Netherlands and non-Netherlands components of the provision / credit for income taxes from continuing operations consist of: For The Year Ended December 31, 2016 2015 2014 Current income tax provision: Domestic $ — $ — $ — Foreign (5,261 ) (550 ) (558 ) (5,261 ) (550 ) (558 ) Deferred tax (provision) / credit: Domestic — — — Foreign (2,056 ) 1,065 1,916 (2,056 ) 1,065 1,916 (Provision) / credit for income taxes $ (7,317 ) $ 515 $ 1,358 In 2016 , 2015 and 2014 , the net (provision) / credit for income taxes is less than the (provision) / credit computed at statutory tax rates primarily due to losses on which no tax benefit has been received. Reconciliation of Effective Income Tax Rate The following is a reconciliation of income taxes, calculated at statutory Netherlands rates, to the (provision) / credit for income taxes included in the accompanying Consolidated Statements of Operations and Comprehensive Income / Loss for the years ended December 31, 2016 , 2015 and 2014 : For The Year Ended December 31, 2016 2015 2014 Income taxes at Netherlands rates (25%) $ 43,310 $ 25,689 $ 38,193 Jurisdictional differences in tax rates (43,049 ) (17,462 ) (12,965 ) Unrecognized tax benefits (925 ) — — Losses expired (1,847 ) (4,009 ) (4,899 ) Change in valuation allowance (5,863 ) 3,614 (7,012 ) Non-deductible expenses (395 ) (1,859 ) (5,624 ) Other 1,452 (5,458 ) (6,335 ) (Provision) / credit for income taxes $ (7,317 ) $ 515 $ 1,358 In 2016 , 2015 and 2014, the jurisdictional rate difference mainly arises as a result of a loss in Bermuda where there is no income tax. Components of Deferred Tax Assets and Liabilities The following table shows the significant components included in deferred income taxes as at December 31, 2016 and 2015 : December 31, 2016 December 31, 2015 Assets: Tax benefit of loss carry-forwards and other tax credits $ 112,585 $ 111,526 Programming rights 2,935 4,052 Property, plant and equipment 3,427 4,427 Accrued expenses 4,699 4,544 Other 1,623 1,718 Gross deferred tax assets 125,269 126,267 Valuation allowance (110,920 ) (109,481 ) Net deferred tax assets $ 14,349 $ 16,786 Liabilities: Broadcast licenses, trademarks and customer relationships $ 22,704 $ 24,897 Property, plant and equipment 142 173 Programming rights 7,182 7,082 Other 86 75 Total deferred tax liabilities 30,114 32,227 Net deferred income tax liability $ 15,765 $ 15,441 Deferred tax is recognized on the consolidated balance sheet as follows: December 31, 2016 December 31, 2015 Net current deferred tax assets (1) $ — $ 10,425 Net non-current deferred tax assets 4,570 124 4,570 10,549 Net current deferred tax liabilities (1) — — Net non-current deferred tax liabilities 20,335 25,990 20,335 25,990 Net deferred income tax liability $ 15,765 $ 15,441 (1) Reflects the prospective adoption in 2016 of accounting guidance requiring that deferred tax balances be classified as non-current in our consolidated balance sheets. See Note 2, "Basis of Presentation and Summary of Significant Accounting Policies" . We provided a valuation allowance against potential deferred tax assets of US$ 110.9 million and US$ 109.5 million as at December 31, 2016 and 2015 , respectively, since it has been determined by management, based on the weight of all available evidence, that it is more likely than not that the benefits associated with these assets will not be realized. During 2016 , valuation allowances of US$ 2.7 million and US$ 7.1 million were released in Bulgaria and the Slovak Republic, respectively, following a period of consistent profitability which resulted in a net credit to the income statement of US$ 7.4 million . During 2016 , we had the following movements on valuation allowances: Balance at December 31, 2015 $ 109,481 Created during the period 15,738 Utilized (2,519 ) Released due to changes in future profitability (7,356 ) Foreign exchange (4,674 ) Other 250 Balance at December 31, 2016 $ 110,920 As of December 31, 2016 we had operating loss carry-forwards that will expire in the following periods: 2017 2018 2019 2020 2021-36 Indefinite Bulgaria $ — $ — $ — $ 6,182 $ — $ — Czech Republic 559 3 — — — — The Netherlands 27,190 25,832 57,430 46,427 268,060 — Slovak Republic 5,749 — — — — — Slovenia — — — — — 21,898 United Kingdom — — — — — 1,395 Total $ 33,498 $ 25,835 $ 57,430 $ 52,609 $ 268,060 $ 23,293 The losses are subject to examination by the tax authorities and to restriction on their utilization. In particular, the losses can only be utilized against profits arising in the legal entity in which they arose. We have provided valuation allowances against most of the above loss carry-forwards. However, valuation allowances have not been provided against the loss carry-forwards in our main operating company in Bulgaria and in the Slovak Republic on the basis of future reversals of existing taxable temporary differences and taxable income from future trading. The tax benefits associated with the tax losses in the United Kingdom were recognized following the adoption of the FASB guidance simplifying accounting for share-based payment transactions. However, a valuation allowance was also recognized due to a lack of foreseeable future UK income. As at December 31, 2016 and 2015 , we had no undistributed earnings in subsidiaries giving rise to a temporary difference. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Balance at December 31, 2013 $ 108 Decreases resulting from the expiry of the statute of limitations (51 ) Other (4 ) Balance at December 31, 2014 53 Decreases resulting from the expiry of the statute of limitations (53 ) Balance at December 31, 2015 — Increases for tax positions taken during a prior period 766 Increases for tax positions taken during the current period 159 Balance at December 31, 2016 $ 925 We do not anticipate a material increase or decrease in unrecognized tax benefits within the next 12 months. Our subsidiaries file income tax returns in the Netherlands and various other tax jurisdictions. As at December 31, 2016 , our subsidiaries are generally no longer subject to income tax examinations for years before: Tax Jurisdiction Year Bulgaria 2010 Croatia 2012 Czech Republic 2011 The Netherlands 2014 Romania 2014 Slovak Republic 2010 Slovenia 2008 United Kingdom 2015 We recognize, when applicable, both accrued interest and penalties related to unrecognized tax benefits in income tax expense in the accompanying consolidated statements of operations and comprehensive income / loss. There were no significant interest or penalties accrued in the years ended December 31, 2016 , 2015 and 2014 . |
INTEREST EXPENSE
INTEREST EXPENSE | 12 Months Ended |
Dec. 31, 2016 | |
Interest Expense [Abstract] | |
INTEREST EXPENSE | INTEREST EXPENSE Interest expense comprised the following for the years ended December 31, 2016 , 2015 and 2014 : For The Year Ended December 31, 2016 2015 2014 Interest on long-term debt and other financing arrangements $ 110,127 $ 114,730 $ 104,570 Amortization of capitalized debt issuance costs 9,152 15,484 18,297 Amortization of debt issuance discount 12,945 41,230 19,138 Total interest expense $ 132,224 $ 171,444 $ 142,005 We paid cash interest (including mandatory cash-pay Guarantee Fees) of US$ 54.0 million , US$ 18.5 million and US$ 76.2 million for years ended December 31, 2016 , 2015 and 2014 , respectively. In addition, we paid US$ 37.4 million of Guarantee Fees during the year ended December 31, 2016 , for which we had the option to pay in kind. |
OTHER NON-OPERATING EXPENSE (No
OTHER NON-OPERATING EXPENSE (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | 15. OTHER NON-OPERATING INCOME / EXPENSE Other non-operating income / expense comprised the following for the years ended December 31, 2016 , 2015 and 2014 : For The Year Ended December 31, 2016 2015 2014 Interest income $ 592 $ 440 $ 294 Foreign currency exchange gain / (loss), net 6,648 (13,481 ) (12,767 ) Change in fair value of derivatives (Note 13) (10,213 ) 4,848 2,311 Other income / (expense), net 486 (17,746 ) 267 Total other non-operating expense $ (2,487 ) $ (25,939 ) $ (9,895 ) |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Under our 2015 Stock Incentive Plan (the "2015 Plan"), 6,000,000 shares of Class A common stock are authorized for grants of stock options, restricted stock units ("RSU"), restricted stock and stock appreciation rights to employees and non-employee directors. In addition, any shares available under our Amended and Restated Stock Incentive Plan (which expired on June 1, 2015), including in respect of any awards that expire, terminate or are forfeited, will be available for awards under the 2015 Plan. Under the 2015 Plan, awards are made to employees and directors at the discretion of the Compensation Committee. Any awards previously issued under the Amended and Restated Stock Incentive Plan will continue to be governed by the terms of that plan. For the years ended December 31, 2016 , 2015 and 2014 , we recognized charges for stock-based compensation of US$ 3.5 million , US$ 2.4 million and US$ 1.3 million , respectively, presented as a component of selling, general and administrative expenses in our consolidated statements of operations and comprehensive income / loss. Stock Options Grants of options allow the holders to purchase shares of Class A common stock at an exercise price, which is generally the market price prevailing at the date of the grant, with vesting between one and four years after the awards are granted. A summary of option activity for the year ended December 31, 2016 is presented below: Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2015 1,666,000 $ 3.53 9.07 $ 640 Granted 411,392 2.46 Expired (66,000 ) 33.66 Outstanding at December 31, 2016 2,011,392 $ 2.32 8.58 $ 453 Vested or expected to vest at December 31, 2016 2,011,392 $ 2.32 8.58 $ 453 Exercisable at December 31, 2016 400,000 $ 2.29 8.42 $ 104 When options are vested, holders may exercise them at any time up to the maximum contractual life of the instrument which is specified in the option agreement. At December 31, 2016 , the maximum life of options that had been issued under the Plan was ten years . Upon providing the appropriate written notification, holders pay the exercise price and receive shares. Shares delivered in respect of stock option exercises are newly issued shares. The fair value of stock options is estimated on the grant date using the Black-Scholes option-pricing model and recognized ratably over the requisite service period as a component of selling, general and administrative expenses. The weighted average grant date fair value of stock options granted during 2016 was $ 1.56 per option. The aggregate intrinsic value (the difference between the stock price on the last day of trading of the fourth quarter of 2016 and the exercise prices multiplied by the number of in-the-money options) represents the total intrinsic value that would have been received by the option holders had they exercised all in-the-money options as at December 31, 2016 . This amount changes based on the fair value of our Class A common stock. The weighted average assumptions used in the Black-Scholes model for grants made in the year ended December 31, 2016 and 2015 were as follows: For The Year Ended December 31, 2016 2015 Risk-free interest rate 1.61 % 1.86 % Expected term (years) 6.25 6.25 Expected volatility 69.22 % 75.18 % Dividend yield 0 % 0 % Weighted-average fair value $ 1.56 $ 1.54 As at December 31, 2016 , there was US$ 2.0 million unrecognized compensation expense related to stock options which is expected to be recognized over a weighted-average period of 2.6 years . The following table summarizes information about stock option activity during 2016 , 2015 , and 2014 : 2016 2015 2014 Shares Weighted Average Exercise Price (per share) Shares Weighted Average Exercise Price (per share) Shares Weighted Average Exercise Price (per share) Outstanding at January 1 1,666,000 $ 3.53 155,000 $ 29.88 390,500 $ 27.26 Awards granted 411,392 2.46 1,600,000 2.29 — — Awards forfeited — — (20,000 ) 23.12 (114,500 ) 30.87 Awards expired (66,000) 33.66 (69,000 ) 28.23 (121,000 ) 20.48 Outstanding at December 31 2,011,392 $ 2.32 1,666,000 $ 3.53 155,000 $ 29.88 Restricted Stock Units Each RSU represents a right to receive one share of Class A common stock of the Company for each RSU that vests in accordance with a time-based vesting schedule, generally between one to four years from the date of grant. Upon vesting, shares of Class A common stock are issued from authorized but unissued shares. Holders of RSU awards are not entitled to receive cash dividend equivalents and are not entitled to vote. The grant date fair value of RSUs is calculated as the closing price of our Class A common shares on the date of grant. For awards with market conditions, the grant date fair value is calculated using a Monte Carlo simulation model. The Monte Carlo simulation model requires the input of subjective assumptions, including the expected volatility of our common stock, interest rates, dividend yields and correlation coefficient between our common stock and the relevant market index. The following table summarizes information about unvested RSUs as at December 31, 2016 : Number of Shares / Units Weighted-Average Grant Date Fair Value Unvested at December 31, 2015 2,554,597 $ 2.72 Granted 705,166 2.41 Vested (626,126 ) 2.83 Forfeited (91,012 ) 2.47 Unvested at December 31, 2016 2,542,625 $ 2.61 As at December 31, 2016 , the intrinsic value of unvested RSUs was US$ 6.5 million . Total unrecognized compensation cost related to unvested RSUs as at December 31, 2016 was US$ 2.9 million and is expected to be recognized over a weighted-average period of 1.9 years . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE We determined that the Series B Preferred Shares are a participating security, and accordingly, our basic and diluted net income / loss per share is calculated using the two-class method. Under the two-class method, basic net income / loss per common share is computed by dividing the net income available to common shareholders after deducting contractual amounts of accretion on our Series B Preferred Shares by the weighted-average number of common shares outstanding during the period. Diluted net income / loss per share is computed by dividing the adjusted net income by the weighted-average number of dilutive shares outstanding during the period. The components of basic and diluted earnings per share are as follows: For The Year Ended December 31, 2016 2015 2014 Loss from continuing operations $ (180,597 ) $ (102,285 ) $ (151,465 ) Net loss attributable to noncontrolling interests 306 671 4,468 Less: preferred dividend paid in kind (Note 11) (13,701 ) (17,272 ) (16,036 ) Loss from continuing operations available to common shareholders, net of noncontrolling interest (193,992 ) (118,886 ) (163,033 ) Loss from discontinued operations, net of tax — (13,287 ) (80,431 ) Net loss attributable to CME Ltd. available to common shareholders - Basic $ (193,992 ) $ (132,173 ) $ (243,464 ) Effect of dilutive securities Preferred dividend paid in kind — — — Net loss attributable to CME Ltd. available to common shareholders - Diluted $ (193,992 ) $ (132,173 ) $ (243,464 ) Weighted average outstanding shares of common stock - Basic (1) 151,017 146,866 146,509 Dilutive effect of employee stock options and RSUs — — — Weighted average outstanding shares of common stock - Diluted 151,017 146,866 146,509 Net loss per share: Continuing operations attributable to CME Ltd. - Basic and diluted $ (1.28 ) $ (0.81 ) $ (1.11 ) Discontinued operations attributable to CME Ltd. - Basic and diluted — (0.09 ) (0.55 ) Net loss attributable to CME Ltd. - Basic and diluted (1.28 ) (0.90 ) (1.66 ) (1) For the purpose of computing basic earnings per share, the 11,211,449 shares of Class A common stock underlying the Series A Preferred Share are included in the weighted average outstanding shares of common stock - basic, because the holder of the Series A Preferred Share is entitled to receive any dividends payable when dividends are declared by the Board of Directors with respect to any shares of the common stock. At December 31, 2016 , 108,396,778 ( December 31, 2015 : 3,221,575 ) warrants, stock options, RSUs and shares underlying the Series B Preferred Shares were antidilutive to income from continuing operations and excluded from the calculation of earnings per share. These instruments may become dilutive in the future. As set forth in the Certificate of Designation for the Series B Preferred Shares, the holders of our Series B Preferred Shares are not contractually obligated to share in our losses. |
SEGMENT DATA
SEGMENT DATA | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA We manage our business on a geographical basis, with six operating segments: Bulgaria, Croatia, the Czech Republic, Romania, the Slovak Republic and Slovenia, which are also our reportable segments and our main operating countries. These segments reflect how CME Ltd.’s operating performance is evaluated by our chief operating decision makers, who we have identified as our co-Chief Executive Officers; how operations are managed by segment managers; and the structure of our internal financial reporting. Our segments generate revenues primarily from the sale of advertising and sponsorship on our channels. This is supplemented by revenues from cable and satellite television service providers to carry our channels on their platforms and from revenues through the sale of distribution rights to third parties. Intersegment revenues and profits have been eliminated in consolidation. We evaluate our consolidated results and the performance of our segments based on net revenues and OIBDA (as defined below). We believe OIBDA is useful to investors because it provides a meaningful representation of our performance as it excludes certain items that either do not impact our cash flows or the operating results of our operations. OIBDA is also used as a component in determining management bonuses. OIBDA includes amortization and impairment of program rights and is calculated as operating income / loss before depreciation, amortization of intangible assets, impairments of assets and certain unusual or infrequent items that are not considered by our chief operating decision makers when evaluating our performance. Stock-based compensation and certain other items are not allocated to our segments for purposes of evaluating their performance and therefore are not included in their respective OIBDA. Below are tables showing our net revenues, OIBDA, total assets, capital expenditures and long-lived assets for our continuing operations by segment for the years ended December 31, 2016 , 2015 and 2014 for consolidated statements of operations and comprehensive income / loss data and consolidated statements of cash flow data; and as at December 31, 2016 and 2015 for consolidated balance sheet data. Net revenues: For The Year Ended December 31, 2016 2015 2014 Bulgaria $ 72,651 $ 73,090 $ 87,078 Croatia 55,607 55,912 62,026 Czech Republic 190,372 182,636 202,779 Romania 172,951 157,578 178,614 Slovak Republic 90,549 84,434 90,556 Slovenia 56,912 54,233 61,370 Intersegment revenues (1) (1,029 ) (2,042 ) (1,630 ) Total net revenues $ 638,013 $ 605,841 $ 680,793 (1) Reflects revenues earned from the sale of content to other country segments in CME Ltd. All other revenues are third party revenues. OIBDA: For The Year Ended December 31, 2016 2015 2014 Bulgaria $ 12,242 $ 15,479 $ 9,367 Croatia 8,578 7,880 7,835 Czech Republic 77,018 71,697 61,964 Romania 62,016 41,176 37,259 Slovak Republic 15,947 10,585 4,586 Slovenia 4,801 6,057 5,331 Elimination 2 (229 ) (16 ) Total operating segments 180,604 152,645 126,326 Corporate (30,555 ) (29,830 ) (30,880 ) Total OIBDA $ 150,049 $ 122,815 95,446 Depreciation of property, plant and equipment (30,190 ) (27,943 ) (32,836 ) Amortization of intangibles (8,270 ) (12,271 ) (12,348 ) Other items (1) — 11,982 (11,982 ) Operating income 111,589 94,583 38,280 Interest expense (Note 14) (132,224 ) (171,444 ) (142,005 ) Loss on extinguishment of debt (Note 4) (150,158 ) — (39,203 ) Non-operating expense, net (Note 15) (2,487 ) (25,939 ) (9,895 ) Loss before tax $ (173,280 ) $ (102,800 ) $ (152,823 ) (1) Other items consists solely of the charges related to tax audits of our Romanian operations, which were accrued in the fourth quarter of 2014 and fully released in the third quarter of 2015. Total assets (1) : December 31, 2016 December 31, 2015 Bulgaria $ 130,873 $ 134,418 Croatia 49,135 52,306 Czech Republic 700,190 746,269 Romania 266,132 261,984 Slovak Republic 131,220 121,122 Slovenia 72,381 70,911 Total operating segments 1,349,931 1,387,010 Corporate 40,786 53,407 Total assets $ 1,390,717 $ 1,440,417 (1) Segment assets exclude any intercompany balances. Capital Expenditures: For The Year Ended December 31, 2016 2015 2014 Bulgaria $ 3,304 $ 3,517 $ 2,627 Croatia 2,593 3,215 2,701 Czech Republic 8,043 10,982 9,139 Romania 6,863 5,794 4,686 Slovak Republic 1,693 2,921 2,240 Slovenia 4,128 3,197 3,502 Total operating segments 26,624 29,626 24,895 Corporate 2,943 3,891 3,790 Total capital expenditures $ 29,567 $ 33,517 $ 28,685 Long-lived assets (1) : December 31, 2016 December 31, 2015 Bulgaria $ 6,280 $ 5,602 Croatia 5,832 5,497 Czech Republic 39,529 39,907 Romania 22,796 20,873 Slovak Republic 15,326 15,606 Slovenia 14,177 15,082 Total operating segments 103,940 102,567 Corporate 5,149 5,955 Total long-lived assets $ 109,089 $ 108,522 (1) Reflects property, plant and equipment. Revenue by type: For The Year Ended December 31, 2016 2015 2014 Television advertising $ 532,600 $ 505,498 $ 565,601 Carriage fees and subscriptions 78,606 73,058 80,487 Other 26,807 27,285 34,705 Total net revenues $ 638,013 $ 605,841 $ 680,793 We do not rely on any single major customer or group of major customers. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES Commitments a) Programming Rights Agreements and Other Commitments At December 31, 2016 , we had total commitments of US$ 128.2 million ( December 31, 2015 : US$ 144.9 million ) in respect of future programming, including contracts signed with license periods starting after the balance sheet date. In addition, we have digital transmission obligations, future minimum operating lease payments for non-cancellable operating leases with remaining terms in excess of one year (net of amounts to be recharged to third parties) and other commitments as follows: Programming purchase obligations Other commitments Operating leases Capital expenditures 2017 $ 43,462 $ 17,545 $ 3,374 $ 609 2018 34,889 5,157 2,077 — 2019 32,074 10,851 923 — 2020 14,003 356 476 — 2021 1,503 322 327 — 2022 and thereafter 2,281 44 1,433 — Total $ 128,212 $ 34,275 $ 8,610 $ 609 For the years ended December 31, 2016 , 2015 and 2014 , we incurred aggregate rent expense on all facilities of US$ 9.4 million , US$ 7.8 million and US$ 10.0 million , respectively. b) Factoring of Trade Receivables CET 21 has a CZK 735.0 million (approximately US$ 28.7 million ) factoring framework agreement with FCS. Under this facility up to CZK 735.0 million (approximately US$ 28.7 million ) may be factored on a recourse or non-recourse basis. As at December 31, 2016 , there were CZK 462.9 million (approximately US$ 18.1 million ) ( December 31, 2015 : CZK 478.9 million , approximately US$ 18.7 million based on December 31, 2016 rates), of receivables subject to the factoring framework agreement. In the first quarter of 2016, Pro TV entered into a RON 109.0 million (approximately US$ 25.3 million ) factoring framework agreement with Global Funds IFN S.A. Under this facility up to RON 109.0 million (approximately US$ 25.3 million ) may be factored on a non-recourse basis. As at December 31, 2016 , there were RON 105.7 million (approximately US$ 24.6 million ) of receivables subject to the factoring framework agreement. Contingencies a) Litigation We are from time to time party to legal proceedings, arbitrations and regulatory proceedings arising in the normal course of our business operations, including the proceeding described below. We evaluate, on a quarterly basis, developments in such matters and provide accruals for such matters, as appropriate. In making such decisions, we consider the degree of probability of an unfavorable outcome and our ability to make a reasonable estimate of the amount of a loss. An unfavorable outcome in any such proceedings, if material, could have an adverse effect on our business or consolidated financial statements. In late November and December 2016, CME’s Slovak subsidiary MARKIZA-SLOVAKIA, spol. s.r.o. (“Markiza”) was notified of claims that were filed in June 2016 in a court of first instance in Bratislava, the Slovak Republic to collect amounts allegedly owing under four promissory notes. These four promissory notes were purportedly issued in June 2000 by Pavol Rusko in his personal capacity and were purportedly guaranteed by Markiza under the signature of Mr. Rusko, who was an executive director of Markiza at that time as well as one of its shareholders. The notes purport to be issued in favor of Marian Kocner, a controversial Slovak businessman, and to a former associate of Mr. Kocner, and were supposedly assigned several times, ultimately to Sprava a inkaso zmeniek, s.r.o., a company owned by Mr. Kocner that is the plaintiff in these proceedings. The four notes purport to be in the aggregate amount of approximately EUR 69.0 million . A court of first instance in Bratislava has suspended proceedings in respect of one of the promissory notes (in the amount of approximately EUR 26.0 million ) because the plaintiff failed to pay court fees. Two of the remaining notes allegedly matured in 2015 and the third in 2016. Despite a random case assignment system at the Bratislava court, the three cases dealing with the other notes have all been assigned to the same judge. We do not believe that any of the promissory notes are authentic and are vigorously defending the claims. We are currently unable to estimate for what amount, if any, we may be liable if the plaintiff is ultimately successful in pursuing their claims. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS We consider our related parties to be our officers, directors and shareholders who have direct control and/or influence over the Company as well as other parties that can significantly influence management. We have identified transactions with individuals or entities associated with Time Warner, which is represented on our Board of Directors and holds a 47.0% voting interest in CME Ltd. as at December 31, 2016 , as material related party transactions. Time Warner For The Year Ended December 31, 2016 2015 2014 Net revenues $ — $ 198 $ 59 Cost of revenues 25,445 32,497 20,713 Interest expense 108,205 127,970 61,887 December 31, 2016 December 31, 2015 Programming liabilities $ 18,959 $ 14,583 Other accounts payable and accrued liabilities 192 53 Long-term debt and other financing arrangements — 324,979 Accrued interest payable (1) 9,588 5,781 Other non-current liabilities (2) 44,397 31,895 (1) Amount represents accrued Guarantee Fees for which we have not yet paid in cash or made an election to pay in kind. See Note 4, "Long-term Debt and Other Financing Arrangements" . (2) Amount represents the Commitment Fee, as well as the Guarantee Fees for which we have made an election to pay in kind. See Note 4, "Long-term Debt and Other Financing Arrangements" . See Part III, Item 13, "Certain Relationships and Related Transactions, and Director Independence." |
QUARTERLY FINANCIAL DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL DATA | QUARTERLY FINANCIAL DATA Selected quarterly financial data for the years ended December 31, 2016 and 2015 is as follows: For the Year Ended December 31, 2016 First Quarter (Unaudited) Second Quarter (Unaudited) Third Quarter (Unaudited) Fourth Quarter (Unaudited) Consolidated Statements of Operations and Comprehensive Income / Loss Data: Net revenues $ 129,000 $ 175,206 $ 126,706 $ 207,101 Cost of revenues 97,777 104,962 91,141 119,946 Operating income 7,763 43,891 8,384 51,551 (Loss) / income from continuing operations (40,694 ) (141,249 ) (19,823 ) 21,169 Net (loss) / income (40,694 ) (141,249 ) (19,823 ) 21,169 Net (loss) / income attributable to CME Ltd. (40,435 ) (141,317 ) (19,627 ) 21,088 Net (loss) / income per share: Basic EPS $ (0.31 ) $ (0.98 ) $ (0.14 ) $ 0.07 Effect of dilutive securities — — — (0.01 ) Diluted EPS $ (0.31 ) $ (0.98 ) $ (0.14 ) $ 0.06 For the Year Ended December 31, 2015 First Quarter (Unaudited) Second Quarter (Unaudited) Third Quarter (Unaudited) Fourth Quarter (Unaudited) Consolidated Statements of Operations and Comprehensive Income / Loss Data: Net revenues $ 126,133 $ 166,834 $ 117,322 $ 195,552 Cost of revenues 98,828 101,229 85,832 116,654 Operating (loss) / income (17,239 ) 36,441 28,853 46,528 (Loss) / income from continuing operations (70,243 ) (11,669 ) (21,510 ) 1,137 (Loss) / income from discontinued operations, net of tax (3,288 ) 2,684 (265 ) (12,418 ) Net loss (73,531 ) (8,985 ) (21,775 ) (11,281 ) Net loss attributable to CME Ltd. (73,274 ) (8,678 ) (21,522 ) (11,427 ) Net loss per share: Basic EPS $ (0.53 ) $ (0.09 ) $ (0.18 ) $ (0.11 ) Effect of dilutive securities — — — — Diluted EPS $ (0.53 ) $ (0.09 ) $ (0.18 ) $ (0.11 ) |
BASIS OF PRESENTATION AND SIG29
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of CME Ltd. and our subsidiaries, after the elimination of intercompany accounts and transactions. Entities in which we hold less than a majority voting interest but over which we have the ability to exercise significant influence are accounted for using the equity method. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. |
Revenue Recognition | Revenue Recognition Revenue is recognized when there is persuasive evidence of an arrangement, delivery of products has occurred or services have been rendered, the price is fixed or determinable and collectibility is reasonably assured. A bad debt provision is maintained for estimated losses resulting from our customers' subsequent inability to make payments. Revenues are recognized net of discounts and customer sales incentives. Our principal revenue streams and their respective accounting treatments are discussed below: Advertising revenue Revenues primarily result from the sale of advertising time. Television advertising revenue is recognized as the commercials are aired. In many countries, we commit to provide advertisers with certain rating levels in connection with their advertising. Revenue is recorded net of estimated shortfalls, which are usually settled by providing the advertiser additional advertising time. Discounts and agency commissions are recognized at the point when the advertising is broadcast and are reflected as a reduction to gross revenue. Display advertising on our websites is recognized as impressions are delivered. Impressions are delivered when an advertisement appears in pages viewed by users. Carriage fees and subscription revenues Carriage fees from cable operators and direct-to-home broadcasters are recognized as revenue over the period for which the channels are provided and to which the fees relate. Subscriber revenue is recognized as contracted, based upon the number of subscribers. Barter transactions We enter into barter transactions which represent advertising time or other services exchanged for non-cash goods and/or other services, such as promotional items, advertising, supplies and equipment. Revenue from barter transactions is recognized as income when the services have been provided. Expenses are recognized when goods or services are received or used. We record barter transactions at the fair value of goods or services received or advertising surrendered, whichever is more readily determinable. Barter revenue amounted to US$ 2.0 million , US$ 1.5 million and US$ 1.5 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. Cash that is subject to restrictions is classified as restricted cash, if applicable. |
Program Rights | Program Rights Purchased program rights Purchased program rights and the related liabilities are recorded at their gross value when the license period begins and the programs are available for broadcast. Purchased program rights are classified as current or non-current assets based on anticipated usage, while the related program rights liability is classified as current or non-current according to the payment terms of the license agreement. Program rights are evaluated to determine if expected revenues are sufficient to cover the unamortized portion of the program. To the extent that expected revenues are insufficient, the program rights are written down to their expected net realizable value. These programming impairment charges, along with programming impairment charges related to own-produced content, are presented as a component of content costs in our consolidated statements of operations and comprehensive income / loss. The costs incurred to acquire program rights are capitalized and amortized over their expected useful lives in a manner which reflects the pattern we expect to use and benefit from the programming. If the initial airing of content allowed by a license is expected to provide more value than subsequent airings, we apply an accelerated method of amortization. These accelerated methods of amortization depend on the estimated number of runs the content is expected to receive, and are determined based on a study of historical results for similar programming. For programming that is not advertising supported, each program's costs are amortized on a straight-line basis over the license period. For content that is expected to be aired only once, the entire cost is recognized as expense on the first run. Produced program rights Program rights that are produced by us consist of deferred film and television costs including direct costs, production overhead and development costs. The costs are stated at the lower of cost, net of accumulated amortization, or fair value. The amount of capitalized production costs recognized as cost of revenues for a given production as it is exhibited in various markets is determined using the film forecast method. The proportion of costs recognized is equal to the proportion of the revenue recognized compared to the total revenue expected to be generated throughout the product's life cycle (the “ultimate revenues”). Our process for evaluating ultimate revenues is tailored to the potential we believe a title has for generating multiple revenues. The majority of our production is intended primarily for exploitation by our own broadcasters. In such cases, we consider mainly the free television window in our calculation of the ultimate revenues. Changes in estimates of ultimate revenues from period to period affect the amount of film costs amortized in a given period and, therefore, could have an impact on our results for that period. Produced program rights are amortized on an individual production basis using the ratio of the current period's gross revenues to estimated remaining total ultimate revenues from such programs. Produced program rights are evaluated to determine if expected revenues, less additional costs to be incurred (including exploitation costs) are sufficient to cover the unamortized portion of the program. To the extent that expected revenues are insufficient, the program rights are written down to their fair value. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives assigned to each major asset category as below: Asset category Estimated useful life Land Indefinite Buildings 25 years Machinery, fixtures and equipment 4 - 8 years Other equipment 3 - 8 years Software 3 - 5 years Construction-in-progress is not depreciated until put into use. Capital leases are depreciated on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. Leasehold improvements are depreciated over the shorter of the related lease term or the life of the asset. Assets to be disposed of are reported at the lower of carrying amount or fair value, less expected costs of disposal. |
Long-Lived Assets Including Intangible Assets with Finite Lives | Long-Lived Assets Including Intangible Assets with Finite Lives Long-lived assets include property, plant, equipment and intangible assets with finite lives. We evaluate the remaining useful life of intangible assets with finite lives each reporting period. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are evaluated at the asset group level when there is an indication that they may be impaired. The carrying amounts of long-lived assets are considered impaired when the anticipated undiscounted cash flows from such assets are less than their carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Historically, we have assessed the carrying amount of our goodwill and other indefinite-lived intangibles for impairment annually as of December 31, or more frequently if events or changes in circumstances indicate that such carrying amount may not be recoverable. During the third quarter of 2016, we elected to change the date of our assessment for all of our reporting units from December 31 to October 1. We believe this change will more closely align the assessment with our long- and short-range business planning and forecasting process. The voluntary change in accounting principle related to the annual testing date will not delay, accelerate or avoid an impairment charge. This change was not applied retrospectively as it was impracticable to do so because retrospective application would require application of significant estimates and assumptions with the use of hindsight. Accordingly, the change was applied prospectively. We evaluate goodwill and indefinite-lived intangible assets for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Such events and changes in circumstances include: • under-performance of operating segments or changes in projected results; • changes in the manner of utilization of an asset; • severe and sustained declines in the trading price of shares of our Class A common stock that are not attributable to factors other than the underlying value of our assets; • negative market conditions or economic trends; and • specific events, such as new legislation, new market entrants, changes in technology or adverse legal judgments that we believe could have a negative impact on our business. Goodwill is evaluated at the reporting unit level, which we have determined is each of our six operating segments. We have elected to bypass the qualitative assessment for all of our reporting units in 2016 and proceed directly to performing the first step of the goodwill impairment test. The fair value of our reporting units is determined based on estimates of future cash flows discounted at appropriate rates and on publicly available information, where appropriate. In the assessment of discounted future cash flows the following data is used: management's long-term plan, a terminal value at the end of the forecasted periods assuming an inflationary perpetual growth rate, and a discount rate selected with reference to the relevant cost of capital. An impairment exists when the carrying amount of a reporting unit (including its goodwill), exceeds its fair value after adjusting for any impairments of long-lived assets or indefinite-lived intangible assets. We evaluate the remaining useful life of each indefinite-lived intangible asset each reporting period. Each indefinite-lived intangible asset is evaluated for impairment individually. The fair value of our indefinite-lived intangible assets are determined using the relief from royalty method. An impairment loss is recognized if the carrying amount of an indefinite-lived intangible asset exceeds its fair value. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. In evaluating the realizability of our deferred tax assets, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. We recognize in the consolidated financial statements those tax positions determined to be “more likely than not” of being sustained upon examination, based on the technical merits of the positions and we recognize, when applicable, both accrued interest and penalties related to uncertain tax positions in income tax expense in the accompanying consolidated statements of operations and comprehensive income / loss. |
Foreign Currency | Foreign Currency Functional Currency Following the refinancing of the remaining outstanding dollar-denominated debt with Euro-denominated debt in April 2016, CME Ltd.'s income and expenses are primarily denominated in Euro. It is anticipated that CME Ltd.'s cash flows will primarily be in Euro. Accordingly, management has determined that CME Ltd.'s functional currency is the Euro with effect from April 1, 2016. As a result of this change, we recognized a loss of US$ 4.2 million of currency translation adjustment in the second quarter of 2016 due to the translation of non-monetary assets into Euro as of the date of the change. Our reporting currency continues to be the U.S. dollar. Translation of financial statements Our reporting currency is the dollar. The financial statements of our operations whose functional currency is other than the dollar are translated from such functional currency to dollars at the exchange rates in effect at the balance sheet date for assets and liabilities, and at weighted average rates for the period for revenues and expenses, including gains and losses. Translational gains and losses are charged or credited to accumulated other comprehensive income / loss, a component of equity. Certain of our intercompany loans to our subsidiaries are of a long-term investment nature. We recorded a gain of US$ 8.8 million and losses of US$ 89.0 million and US$ 164.4 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively, on the retranslation of these intercompany loans as an adjustment to accumulated other comprehensive income / loss, a component of shareholders' equity, as settlement of these loans is not planned or anticipated in the foreseeable future. Transactions in foreign currencies Gains and losses from foreign currency transactions are included in foreign currency exchange gain / loss, net in the consolidated statements of operations and comprehensive income / loss in the period during which they arise. |
Leases | Leases Leases are classified as either capital or operating. Those leases that transfer substantially all benefits and risks of ownership of the property to us are accounted for as capital leases. All other leases are accounted for as operating leases. Capital leases are accounted for as assets and are depreciated on a straight-line basis over the shorter of the estimated useful life of the asset or the lease term. Commitments to repay the principal amounts arising under capital lease obligations are included in current liabilities to the extent that the amount is repayable within one year; otherwise the principal is included in non-current liabilities. The capitalized lease obligation reflects the present value of future lease payments. The financing element of the lease payments is charged to interest expense over the term of the lease. Operating lease costs are expensed on a straight-line basis over the term of the lease. |
Financial Instruments | Financial Instruments Fair value of financial instruments The carrying amount of financial instruments, including cash, accounts receivable, and accounts payable and accrued liabilities, approximate their fair value due to the short-term nature of these items. The fair value of our long-term (as defined hereinafter) is included in Note 4, "Long-term Debt and Other Financing Arrangements" . Fair value is the price an asset or liability could be exchanged in an arm’s-length orderly transaction between knowledgeable, able and willing parties that is not a forced sale or liquidation. US GAAP requires significant management estimates in determining fair value. The extent of management’s judgments is highly dependent on the valuation model employed and the observability of inputs to the fair value model. The level of management judgment required in establishing fair value of financial instruments is more significant where there is no active market in which the instrument is traded. For financial instruments that are not remeasured through net income, we estimate fair value at issuance and account for the instrument at amortized cost. For financial instruments that are remeasured through net income, we assess the fair value of the instrument at each period end or earlier when events occur or circumstances change that would so require (see Note 13, "Financial Instruments and Fair Value Measurements" ). Derivative financial instruments We use derivative financial instruments for the purpose of mitigating currency and interest rate risks, which exist as part of ongoing business operations and financing activities. As a policy, we do not engage in speculative or leveraged transactions, nor do we hold or issue derivative financial instruments for trading purposes. Forward exchange contracts and currency swaps are used to mitigate exposures to currency fluctuations on certain short-term transactions generally denominated in currencies other than our functional currency. These contracts are marked to market at the balance sheet date, and the resultant unrealized gains and losses are recorded in the consolidated statements of operations and comprehensive income / loss, together with realized gains and losses arising on settlement of these contracts. Interest rate swaps and other instruments may be used to mitigate exposures to interest rate fluctuations on certain of our long-term debt instruments with variable interest rates. These contracts are marked to market at the balance sheet date, and the resultant unrealized gains and losses are recorded in the consolidated statements of operations and comprehensive income / loss, together with realized gains and losses arising on settlement of these contracts. From time to time, we may designate certain of these instruments as hedges and apply hedge accounting as discussed in Note 13, "Financial Instruments and Fair Value Measurements" . ASC 820, “Fair Value Measurements and Disclosure”, establishes a hierarchy that prioritizes the inputs to those valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are: Basis of Fair Value Measurement Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted instruments. Level 2 Quoted prices in markets that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. We evaluate the position of each financial instrument measured at fair value in the hierarchy individually based on the valuation methodology we apply. The carrying amount of financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities, approximate their fair value due to the short-term nature of these items. The fair value of our long-term debt is included in Note 4, "Long-term Debt and Other Financing Arrangements" . |
Share-based Compensation | Stock-Based Compensation Stock-based compensation is recognized at fair value. We calculate the fair value of stock option awards using the Black-Scholes option pricing model on the grant date. The grant date fair value of restricted stock units ("RSUs") is calculated as the closing price of our Class A common stock on the date of grant. |
Contingencies | Contingencies The estimated loss from a loss contingency such as a legal proceeding or other claim is recorded in the consolidated statements of operations and comprehensive income / loss if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. Disclosure of a loss contingency is made if there is at least a reasonable possibility that a loss has been incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising expense incurred for the years ended December 31, 2016 , 2015 and 2014 totaled US$ 5.4 million , US$ 3.0 million and US$ 3.7 million , respectively. |
Earnings Per Share | Earnings Per Share Basic and diluted net income / loss per share is calculated using the two-class method. Under the two-class method, basic net income / loss per common share is computed by dividing the net income available to common shareholders after deducting contractual amounts of accretion on our Series B Preferred Shares by the weighted-average number of common shares outstanding during the period. Diluted net income / loss per share is computed by dividing the adjusted net income by the weighted-average number of dilutive shares outstanding during the period. |
Accounting Pronouncements Adopted | Accounting Pronouncements Adopted On January 1, 2016 we adopted the following guidance issued by the Financial Accounting Standards Board (the “FASB”): In November 2014, the FASB issued guidance which standardizes the method used in the accounting for hybrid financial instruments issued in the form of a share. The guidance requires an entity to consider all relevant terms and features in evaluating the nature of the host contract in a hybrid financial instrument, including the embedded derivative feature being evaluated for bifurcation. The adoption of this guidance did not have a material impact on our consolidated financial statements. In April 2015, the FASB issued guidance which simplifies the balance sheet presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction of the carrying amount of that liability. The retrospective adoption of this guidance decreased our other non-current assets as at December 31, 2015 by US$ 13.8 million , with a corresponding decrease in our long-term debt and other financing arrangements in our consolidated balance sheet, with no impact to our consolidated statements of operations and comprehensive income / loss or consolidated statements of cash flows. In November 2015, the FASB issued guidance which requires that deferred tax balances be classified as non-current in our consolidated balance sheet. The prospective adoption of this guidance did not have any effect on our net deferred income tax liability. Prior period amounts have not been adjusted. In the third quarter of 2016, we adopted the FASB guidance issued in March 2016 intended to simplify accounting for share-based payment transactions, specifically with regard to accounting for forfeitures, income taxes, the classification as either equity or liabilities and the presentation in the statement of cash flows. We have made a policy election to account for forfeitures as they occur. The cumulative-effect adjustment to equity as a result of adopting this guidance was not material. The adoption of this guidance did not have any other material impacts on our consolidated financial statements or disclosures. |
Recent Accounting Pronouncements Issued | Recent Accounting Pronouncements Issued In May 2014, the FASB issued new guidance which is intended to improve the comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance supersedes existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for our fiscal year beginning January 1, 2018. We are currently in the process of evaluating the impact of the adoption of this guidance on our consolidated financial statements. In February 2016, the FASB issued new guidance to increase transparency and comparability among organizations by recognizing leasing assets and liabilities on the balance sheet and requiring additional disclosures about an entity's leasing arrangements. The guidance requires that a lessee recognize a liability to make lease payments and a right-of-use asset, with an available exception for leases shorter than twelve months. The guidance is effective for our fiscal year beginning January 1, 2019. We are currently in the process of evaluating the impact of the adoption of this guidance on our consolidated financial statements. In August 2016, the FASB issued new guidance which is intended to reduce the existing diversity in practice related to specific cash flow issues. As applicable to CME, the guidance requires that cash flows at the settlement of zero-coupon debt instruments or debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing be bifurcated between cash outflows for operating activities for the portion attributable to accrued interest, and cash outflows for financing activities for the portion attributable to the principal. The guidance requires a retrospective transition method and is effective for our fiscal year beginning January 1, 2018, with early adoption permitted. We expect to adopt this guidance as of January 1, 2018. Upon adoption, our net cash flows generated from / used in continuing operating activities will decrease by US$ 110.7 million and US$ 1.1 million for the years ended December 31, 2016 and 2015, respectively, with a corresponding increase in net cash used in / provided by continuing financing activities. In October 2016, the FASB issued new guidance which is intended to improve the accounting for the income tax consequences of intercompany transfers of assets other than inventory. The guidance would require an entity to recognize the income tax consequences of such transfers in the period in which the transfer occurs, rather than defer recognition of current and deferred income taxes for the transfer until the asset is sold to a third party. The guidance requires a modified retrospective transition method through a cumulative-effect adjustment to retained earnings. The guidance is effective for our fiscal year beginning January 1, 2018, with early adoption permitted. The cumulative-effect adjustment to equity as a result of early adopting this guidance as of January 1, 2017 will not have a material impact on our consolidated financial statements. In January 2017, the FASB issued new guidance which is intended to simplify goodwill impairment testing by eliminating Step 2, and instead recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds the fair value of the reporting unit. The guidance also eliminates the requirement to perform a qualitative analysis for reporting units with a negative carrying value. The guidance is effective for us for annual and interim impairment tests after January 1, 2020, with early adoption permitted for interim and annual impairment tests performed from January 1, 2017. We are currently in the process of evaluating the impact of the adoption of this guidance on our consolidated financial statements and whether we will early adopt. |
BASIS OF PRESENTATION AND SIG30
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment Estimated Useful Life | Property, plant and equipment is carried at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives assigned to each major asset category as below: Asset category Estimated useful life Land Indefinite Buildings 25 years Machinery, fixtures and equipment 4 - 8 years Other equipment 3 - 8 years Software 3 - 5 years |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill by reporting unit as at December 31, 2016 and December 31, 2015 is summarized as follows: Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia Total Gross Balance, December 31, 2014 $ 175,494 $ 11,065 $ 800,640 $ 94,777 $ 53,088 $ 19,400 $ 1,154,464 Accumulated impairment losses (144,639 ) (10,454 ) (287,545 ) (11,028 ) — (19,400 ) (473,066 ) Balance, December 31, 2014 30,855 611 513,095 83,749 53,088 — 681,398 Foreign currency (3,129 ) (60 ) (41,149 ) (9,334 ) (5,483 ) — (59,155 ) Balance, December 31, 2015 27,726 551 471,946 74,415 47,605 — 622,243 Accumulated impairment losses (144,639 ) (10,454 ) (287,545 ) (11,028 ) — (19,400 ) (473,066 ) Gross Balance, December 31, 2015 $ 172,365 $ 11,005 $ 759,491 $ 85,443 $ 47,605 $ 19,400 $ 1,095,309 Bulgaria Croatia Czech Republic Romania Slovak Republic Slovenia Total Gross Balance, December 31, 2015 $ 172,365 $ 11,005 $ 759,491 $ 85,443 $ 47,605 $ 19,400 $ 1,095,309 Accumulated impairment losses (144,639 ) (10,454 ) (287,545 ) (11,028 ) — (19,400 ) (473,066 ) Balance, December 31, 2015 27,726 551 471,946 74,415 47,605 — 622,243 Foreign currency (976 ) (17 ) (15,008 ) (2,657 ) (1,516 ) — (20,174 ) Balance, December 31, 2016 26,750 534 456,938 71,758 46,089 — 602,069 Accumulated impairment losses (144,639 ) (10,454 ) (287,545 ) (11,028 ) — (19,400 ) (473,066 ) Gross Balance, December 31, 2016 $ 171,389 $ 10,988 $ 744,483 $ 82,786 $ 46,089 $ 19,400 $ 1,075,135 |
Schedule of Intangible Assets Net | Changes in the net book value of our other intangible assets as at December 31, 2016 and December 31, 2015 is summarized as follows: December 31, 2016 December 31, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Indefinite-lived: Trademarks $ 80,324 $ — $ 80,324 $ 83,188 $ — $ 83,188 Amortized: Broadcast licenses 185,686 (130,325 ) 55,361 191,860 (127,613 ) 64,247 Trademarks 591 (591 ) — 614 (614 ) — Customer relationships 51,338 (48,997 ) 2,341 53,120 (49,672 ) 3,448 Other 1,522 (1,208 ) 314 2,138 (1,859 ) 279 Total $ 319,461 $ (181,121 ) $ 138,340 $ 330,920 $ (179,758 ) $ 151,162 Broadcast licenses consist of our TV NOVA license in the Czech Republic, which is amortized on a straight-line basis through the expiration date of the license in 2025. Our customer relationships are deemed to have an economic useful life of, and are amortized on a straight-line basis, over five years to fifteen years . |
Schedule of Future Amortization Expense | The estimated amortization expense for our intangible assets with finite lives as of December 31, 2016 is as follows: 2017 $ 7,777 2018 7,703 2019 7,240 2020 7,020 2021 6,960 |
LONG-TERM DEBT AND OTHER FINA32
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Interest Rate Summary [Table Text Block] | Interest Rate Summary Base Rate Rate Fixed Pursuant to Interest Rate Hedges Guarantee Fee Rate All-in Borrowing Rate 2018 Euro Term Loan 1.50 % 0.21 % (1) 6.79 % 8.50 % 2019 Euro Term Loan 1.50 % 0.31 % 6.69 % 8.50 % 2021 Euro Term Loan 1.50 % 0.28 % 7.22 % 9.00 % 2021 Revolving Credit Facility (2) 9.00 % — — 9.00 % |
Schedule of Debt | December 31, 2016 December 31, 2015 Long-term debt $ 999,209 $ 906,028 Other credit facilities and capital leases 4,313 3,648 Total long-term debt and other financing arrangements 1,003,522 909,676 Less: current maturities (1,494 ) (1,155 ) Total non-current long-term debt and other financing arrangements $ 1,002,028 $ 908,521 |
Schedule of Long-term Debt Instruments | Total long-term debt and credit facilities comprised the following at December 31, 2016 : Principal Amount of Liability Component Debt Issuance Costs (1) Net Carrying Amount 2018 Euro Term Loan 264,368 (634 ) 263,734 2019 Euro Term Loan 248,067 (473 ) 247,594 2021 Euro Term Loan 494,162 (6,281 ) 487,881 2021 Revolving Credit Facility — — — Total long-term debt and credit facilities $ 1,006,597 $ (7,388 ) $ 999,209 |
Schedule of Senior Debt [Table Text Block] | Our long-term debt comprised the following at December 31, 2016 and December 31, 2015 : Carrying Amount December 31, 2016 December 31, 2015 2017 PIK Notes — 359,789 2017 Term Loan — 27,592 2018 Euro Term Loan 263,734 272,189 2019 Euro Term Loan 247,594 246,458 2021 Euro Term Loan 487,881 — $ 999,209 $ 906,028 |
Credit Facilities And Capital Lease Obligations | Other credit facilities and capital lease obligations comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Credit facilities (1) – (3) $ — $ — Capital leases 4,313 3,648 Total credit facilities and capital leases 4,313 3,648 Less: current maturities (1,494 ) (1,155 ) Total non-current credit facilities and capital leases $ 2,819 $ 2,493 (1) We have a cash pooling arrangement with Bank Mendes Gans (“BMG”), a subsidiary of ING Bank N.V. (“ING”), which enables us to receive credit across the group in respect of cash balances which our subsidiaries deposit with BMG. Cash deposited by our subsidiaries with BMG is pledged as security against the drawings of other subsidiaries up to the amount deposited. As at December 31, 2016 , we had deposits of US$ 16.4 million in and no drawings on the BMG cash pool. Interest is earned on deposits at the relevant money market rate. As at December 31, 2015 , we had deposits of US$ 19.6 million in and no drawings on the BMG cash pool. (2) As at December 31, 2016 and December 31, 2015 , there were no drawings outstanding under a CZK 735.0 million (approximately US$ 28.7 million ) factoring framework agreement with Factoring Ceska Sporitelna (“FCS”). Under this facility, up to CZK 735.0 million (approximately US$ 28.7 million ) of receivables from certain customers in the Czech Republic may be factored on a recourse or non-recourse basis. The facility has a factoring fee of 0.3% of any factored receivable and bears interest at one-month PRIBOR plus 2.5% per annum for the period that receivables are factored and outstanding. (3) As at December 31, 2016 there were RON 105.7 million (approximately US$ 24.6 million ) of receivables factored under a factoring framework agreement with Global Funds IFN S.A. entered into in the first quarter of 2016. Under this facility, receivables from certain customers in Romania may be factored on a non-recourse basis. The facility has a factoring fee of 4.0% of any factored receivable and bears interest at 6.0% per annum from the date the receivables are factored to the due date of the factored receivable. |
Maturity Of Senior Debt And Credit Facility | up At December 31, 2016 , the maturity of our long-term and credit facilities was as follows: 2017 $ — 2018 264,368 2019 248,067 2020 — 2021 494,162 2022 and thereafter — Total long-debt and credit facilities 1,006,597 Debt issuance costs (7,388 ) Carrying amount of long-debt and credit facilities $ 999,209 |
Schedule of Future Minimum Lease Payments for Capital Leases | Capital Lease Commitments We lease certain of our office and broadcast facilities as well as machinery and equipment under various leasing arrangements. The future minimum lease payments, by year and in the aggregate, under capital leases with initial or remaining non-cancellable lease terms in excess of one year, consisted of the following at December 31, 2016 : 2017 $ 1,570 2018 1,339 2019 1,003 2020 525 2021 13 2022 and thereafter — Total undiscounted payments 4,450 Less: amount representing interest (137 ) Present value of net minimum lease payments $ 4,313 |
PROGRAM RIGHTS (Tables)
PROGRAM RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
PROGRAM RIGHTS [Abstract] | |
Schedule of Program Rights | Program rights comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Program rights: Acquired program rights, net of amortization $ 183,303 $ 179,632 Less: current portion of acquired program rights (86,151 ) (85,972 ) Total non-current acquired program rights 97,152 93,660 Produced program rights – Feature Films: Released, net of amortization 1,039 1,298 Produced program rights – Television Programs: Released, net of amortization 54,149 56,125 Completed and not released 2,593 3,500 In production 23,712 13,783 Development and pre-production 711 707 Total produced program rights 82,204 75,413 Total non-current acquired program rights and produced program rights $ 179,356 $ 169,073 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Third-party customers $ 187,937 $ 176,628 Less: allowance for bad debts and credit notes (9,598 ) (9,201 ) Total accounts receivable $ 178,339 $ 167,427 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other current and non-current assets comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Current: Prepaid acquired programming $ 22,511 $ 22,761 Other prepaid expenses 5,270 6,941 Deferred tax — 10,425 VAT recoverable 713 733 Income taxes recoverable 206 249 Other 3,771 2,097 Total other current assets $ 32,471 $ 43,206 December 31, 2016 December 31, 2015 Non-current: Capitalized debt costs $ 15,018 $ 27,060 Deferred tax 4,570 124 Other 1,855 3,949 Total other non-current assets $ 21,443 $ 31,133 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Land and buildings $ 90,988 $ 92,237 Machinery, fixtures and equipment 202,110 164,503 Other equipment 33,752 32,314 Software 55,542 55,656 Construction in progress 5,316 3,001 Total cost 387,708 347,711 Less: accumulated depreciation (278,619 ) (239,189 ) Total net book value $ 109,089 $ 108,522 Assets held under capital leases (included in the above) Land and buildings $ 3,684 $ 3,805 Machinery, fixtures and equipment 6,338 4,646 Total cost 10,022 8,451 Less: accumulated depreciation (4,316 ) (3,556 ) Total net book value $ 5,706 $ 4,895 |
Property Plant And Equipment Rollforward | The movement in the net book value of property, plant and equipment during the years ended December 31, 2016 and 2015 is comprised of: For The Year Ended December 31, 2016 2015 Opening balance $ 108,522 $ 114,335 Additions 34,371 34,523 Disposals (88 ) (290 ) Depreciation (30,190 ) (27,943 ) Foreign currency movements (3,526 ) (10,810 ) Other — (1,293 ) Ending balance $ 109,089 $ 108,522 |
ACCOUNTS PAYABLE AND ACCRUED 37
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Accounts payable and accrued expenses $ 59,522 $ 57,042 Related party accounts payable 192 53 Programming liabilities 29,249 24,901 Related party programming liabilities 18,959 14,583 Duties and other taxes payable 13,446 12,856 Accrued staff costs 20,565 20,709 Accrued interest payable 2,941 914 Related party accrued interest payable (including Guarantee Fees) 9,588 477 Income taxes payable 5,514 249 Other accrued liabilities 1,005 2,921 Total accounts payable and accrued liabilities $ 160,981 $ 134,705 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities [Abstract] | |
Schedule of Other Liabilities | Other current and non-current liabilities comprised the following at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Current: Deferred revenue $ 5,333 $ 7,546 Derivative liabilities 477 650 Restructuring provision — 458 Legal provisions 2,680 1,520 Other 599 274 Total other current liabilities $ 9,089 $ 10,448 December 31, 2016 December 31, 2015 Non-current: Deferred tax $ 20,335 $ 25,990 Related party commitment fee payable (1) 9,905 9,240 Related party Guarantee Fee payable (Note 4) 34,492 22,655 Accrued interest — 977 Related party accrued interest — 5,304 Other 4,026 1,583 Total other non-current liabilities $ 68,758 $ 65,749 (1) Represents the commitment fee ("Commitment Fee") payable to Time Warner, including accrued interest, in respect of its obligation under a commitment letter dated November 14, 2014 between Time Warner and us whereby Time Warner agreed to provide or assist with arranging a loan facility to repay our 5.0% senior convertible notes at maturity in November 2015. The Commitment Fee is payable by November 1, 2019, the maturity date of the 2019 Euro Term Loan, or earlier if the repayment of the 2019 Euro Term Loan is accelerated. The Commitment Fee bears interest at 8.5% per annum and such interest is payable in arrears on each May 1 and November 1, and may be paid in cash or in kind, at our election. |
FINANCIAL INSTRUMENTS AND FAI39
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss BALANCE December 31, 2015 $ (1,420 ) Loss on interest rate swaps (5,447 ) Reclassified to interest expense 2,416 BALANCE December 31, 2016 $ (4,451 ) Information relating to financial instruments is as follows: Trade Date Number of Contracts Description Aggregate Notional Amount Maturity Date Objective Fair Value as at December 31, 2016 April 5, 2016 5 Interest rate swap € 468,800 February 21, 2021 Interest rate hedge underlying 2021 Euro Term Loan $ (1,711 ) April 5, 2016 4 Interest rate swap € 250,800 November 1, 2018 Interest rate hedge underlying 2018 Euro Term Loan, forward starting on November 1, 2017 $ (284 ) November 10, 2015 3 Interest rate swap € 235,335 November 1, 2019 Interest rate hedge underlying 2019 Euro Term Loan $ (1,658 ) November 14, 2014 2 Interest rate swap € 250,800 November 1, 2017 Interest rate hedge underlying 2018 Euro Term Loan $ (477 ) |
Schedule of Changes in Fair Value of Derivatives | The change in fair value of derivatives not designated as hedging instruments comprised the following for the years ended December 31, 2016 , 2015 and 2014 : For The Year Ended December 31, 2016 2015 2014 Currency swaps $ (10,213 ) $ 4,848 $ 2,311 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | The Netherlands and non-Netherlands components of loss from continuing operations before income taxes are: For The Year Ended December 31, 2016 2015 2014 Domestic $ (66,226 ) $ (73,132 ) $ (117,247 ) Foreign (107,054 ) (29,668 ) (35,576 ) Total $ (173,280 ) $ (102,800 ) $ (152,823 ) |
Schedule Of Income Tax Expense From Continuing And Discontinued Operations [Table Text Block] | Total tax (provision) / credit for the years ended December 31, 2016 , 2015 and 2014 was allocated as follows: For The Year Ended December 31, 2016 2015 2014 Income tax (provision) / credit from continuing operations $ (7,317 ) $ 515 $ 1,358 Income tax credit from discontinued operations — 91 1,987 Total (provision) / tax credit $ (7,317 ) $ 606 $ 3,345 |
Schedule of Components of Income Tax Expense (Benefit) | The Netherlands and non-Netherlands components of the provision / credit for income taxes from continuing operations consist of: For The Year Ended December 31, 2016 2015 2014 Current income tax provision: Domestic $ — $ — $ — Foreign (5,261 ) (550 ) (558 ) (5,261 ) (550 ) (558 ) Deferred tax (provision) / credit: Domestic — — — Foreign (2,056 ) 1,065 1,916 (2,056 ) 1,065 1,916 (Provision) / credit for income taxes $ (7,317 ) $ 515 $ 1,358 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of income taxes, calculated at statutory Netherlands rates, to the (provision) / credit for income taxes included in the accompanying Consolidated Statements of Operations and Comprehensive Income / Loss for the years ended December 31, 2016 , 2015 and 2014 : For The Year Ended December 31, 2016 2015 2014 Income taxes at Netherlands rates (25%) $ 43,310 $ 25,689 $ 38,193 Jurisdictional differences in tax rates (43,049 ) (17,462 ) (12,965 ) Unrecognized tax benefits (925 ) — — Losses expired (1,847 ) (4,009 ) (4,899 ) Change in valuation allowance (5,863 ) 3,614 (7,012 ) Non-deductible expenses (395 ) (1,859 ) (5,624 ) Other 1,452 (5,458 ) (6,335 ) (Provision) / credit for income taxes $ (7,317 ) $ 515 $ 1,358 |
Schedule of Deferred Tax Assets and Liabilities | The following table shows the significant components included in deferred income taxes as at December 31, 2016 and 2015 : December 31, 2016 December 31, 2015 Assets: Tax benefit of loss carry-forwards and other tax credits $ 112,585 $ 111,526 Programming rights 2,935 4,052 Property, plant and equipment 3,427 4,427 Accrued expenses 4,699 4,544 Other 1,623 1,718 Gross deferred tax assets 125,269 126,267 Valuation allowance (110,920 ) (109,481 ) Net deferred tax assets $ 14,349 $ 16,786 Liabilities: Broadcast licenses, trademarks and customer relationships $ 22,704 $ 24,897 Property, plant and equipment 142 173 Programming rights 7,182 7,082 Other 86 75 Total deferred tax liabilities 30,114 32,227 Net deferred income tax liability $ 15,765 $ 15,441 |
Schedule of Deferred Tax Assets and Liabilities Balance Sheet Location | : December 31, 2016 December 31, 2015 Assets: Tax benefit of loss carry-forwards and other tax credits $ 112,585 $ 111,526 Programming rights 2,935 4,052 Property, plant and equipment 3,427 4,427 Accrued expenses 4,699 4,544 Other 1,623 1,718 Gross deferred tax assets 125,269 126,267 Valuation allowance (110,920 ) (109,481 ) Net deferred tax assets $ 14,349 $ 16,786 Liabilities: Broadcast licenses, trademarks and customer relationships $ 22,704 $ 24,897 Property, plant and equipment 142 173 Programming rights 7,182 7,082 Other 86 75 Total deferred tax liabilities 30,114 32,227 Net deferred income tax liability $ 15,765 $ 15,441 Deferred tax is recognized on the consolidated balance sheet as follows: December 31, 2016 December 31, 2015 Net current deferred tax assets (1) $ — $ 10,425 Net non-current deferred tax assets 4,570 124 4,570 10,549 Net current deferred tax liabilities (1) — — Net non-current deferred tax liabilities 20,335 25,990 20,335 25,990 Net deferred income tax liability $ 15,765 $ 15,441 (1) Reflects the prospective adoption in 2016 of accounting guidance requiring that deferred tax balances be classified as non-current in our consolidated balance sheets. See Note 2, "Basis of Presentation and Summary of Significant Accounting Policies" . |
Summary of Valuation Allowance | During 2016 , we had the following movements on valuation allowances: Balance at December 31, 2015 $ 109,481 Created during the period 15,738 Utilized (2,519 ) Released due to changes in future profitability (7,356 ) Foreign exchange (4,674 ) Other 250 Balance at December 31, 2016 $ 110,920 |
Summary of Operating Loss Carryforwards | As of December 31, 2016 we had operating loss carry-forwards that will expire in the following periods: 2017 2018 2019 2020 2021-36 Indefinite Bulgaria $ — $ — $ — $ 6,182 $ — $ — Czech Republic 559 3 — — — — The Netherlands 27,190 25,832 57,430 46,427 268,060 — Slovak Republic 5,749 — — — — — Slovenia — — — — — 21,898 United Kingdom — — — — — 1,395 Total $ 33,498 $ 25,835 $ 57,430 $ 52,609 $ 268,060 $ 23,293 |
Summary of Income Tax Contingencies | ce. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follow |
Schedule of Income Tax Examinations by Tax Jurisdiction | Our subsidiaries file income tax returns in the Netherlands and various other tax jurisdictions. As at December 31, 2016 , our subsidiaries are generally no longer subject to income tax examinations for years before: Tax Jurisdiction Year Bulgaria 2010 Croatia 2012 Czech Republic 2011 The Netherlands 2014 Romania 2014 Slovak Republic 2010 Slovenia 2008 United Kingdom 2015 |
INTEREST EXPENSE (Tables)
INTEREST EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Interest Expense [Abstract] | |
Schedule of Interest Expense | Interest expense comprised the following for the years ended December 31, 2016 , 2015 and 2014 : For The Year Ended December 31, 2016 2015 2014 Interest on long-term debt and other financing arrangements $ 110,127 $ 114,730 $ 104,570 Amortization of capitalized debt issuance costs 9,152 15,484 18,297 Amortization of debt issuance discount 12,945 41,230 19,138 Total interest expense $ 132,224 $ 171,444 $ 142,005 |
OTHER NON-OPERATING EXPENSE (Ta
OTHER NON-OPERATING EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Other non-operating income / expense comprised the following for the years ended December 31, 2016 , 2015 and 2014 : For The Year Ended December 31, 2016 2015 2014 Interest income $ 592 $ 440 $ 294 Foreign currency exchange gain / (loss), net 6,648 (13,481 ) (12,767 ) Change in fair value of derivatives (Note 13) (10,213 ) 4,848 2,311 Other income / (expense), net 486 (17,746 ) 267 Total other non-operating expense $ (2,487 ) $ (25,939 ) $ (9,895 ) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes information about stock option activity during 2016 , 2015 , and 2014 : 2016 2015 2014 Shares Weighted Average Exercise Price (per share) Shares Weighted Average Exercise Price (per share) Shares Weighted Average Exercise Price (per share) Outstanding at January 1 1,666,000 $ 3.53 155,000 $ 29.88 390,500 $ 27.26 Awards granted 411,392 2.46 1,600,000 2.29 — — Awards forfeited — — (20,000 ) 23.12 (114,500 ) 30.87 Awards expired (66,000) 33.66 (69,000 ) 28.23 (121,000 ) 20.48 Outstanding at December 31 2,011,392 $ 2.32 1,666,000 $ 3.53 155,000 $ 29.88 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | For the years ended December 31, 2016 , 2015 and 2014 , we recognized charges for stock-based compensation of US$ 3.5 million , US$ 2.4 million and US$ 1.3 million , respectively, presented as a component of selling, general and administrative expenses in our consolidated statements of operations and comprehensive income / loss. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The weighted average assumptions used in the Black-Scholes model for grants made in the year ended December 31, 2016 and 2015 were as follows: For The Year Ended December 31, 2016 2015 Risk-free interest rate 1.61 % 1.86 % Expected term (years) 6.25 6.25 Expected volatility 69.22 % 75.18 % Dividend yield 0 % 0 % Weighted-average fair value $ 1.56 $ 1.54 |
Schedule of Stock Option Activity | A summary of option activity for the year ended December 31, 2016 is presented below: Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at December 31, 2015 1,666,000 $ 3.53 9.07 $ 640 Granted 411,392 2.46 Expired (66,000 ) 33.66 Outstanding at December 31, 2016 2,011,392 $ 2.32 8.58 $ 453 Vested or expected to vest at December 31, 2016 2,011,392 $ 2.32 8.58 $ 453 Exercisable at December 31, 2016 400,000 $ 2.29 8.42 $ 104 |
Schedule of Restricted Stock Unit Activity | The following table summarizes information about unvested RSUs as at December 31, 2016 : Number of Shares / Units Weighted-Average Grant Date Fair Value Unvested at December 31, 2015 2,554,597 $ 2.72 Granted 705,166 2.41 Vested (626,126 ) 2.83 Forfeited (91,012 ) 2.47 Unvested at December 31, 2016 2,542,625 $ 2.61 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The components of basic and diluted earnings per share are as follows: For The Year Ended December 31, 2016 2015 2014 Loss from continuing operations $ (180,597 ) $ (102,285 ) $ (151,465 ) Net loss attributable to noncontrolling interests 306 671 4,468 Less: preferred dividend paid in kind (Note 11) (13,701 ) (17,272 ) (16,036 ) Loss from continuing operations available to common shareholders, net of noncontrolling interest (193,992 ) (118,886 ) (163,033 ) Loss from discontinued operations, net of tax — (13,287 ) (80,431 ) Net loss attributable to CME Ltd. available to common shareholders - Basic $ (193,992 ) $ (132,173 ) $ (243,464 ) Effect of dilutive securities Preferred dividend paid in kind — — — Net loss attributable to CME Ltd. available to common shareholders - Diluted $ (193,992 ) $ (132,173 ) $ (243,464 ) Weighted average outstanding shares of common stock - Basic (1) 151,017 146,866 146,509 Dilutive effect of employee stock options and RSUs — — — Weighted average outstanding shares of common stock - Diluted 151,017 146,866 146,509 Net loss per share: Continuing operations attributable to CME Ltd. - Basic and diluted $ (1.28 ) $ (0.81 ) $ (1.11 ) Discontinued operations attributable to CME Ltd. - Basic and diluted — (0.09 ) (0.55 ) Net loss attributable to CME Ltd. - Basic and diluted (1.28 ) (0.90 ) (1.66 ) (1) For the purpose of computing basic earnings per share, the 11,211,449 shares of Class A common stock underlying the Series A Preferred Share are included in the weighted average outstanding shares of common stock - basic, because the holder of the Series A Preferred Share is entitled to receive any dividends payable when dividends are declared by the Board of Directors with respect to any shares of the common stock. |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments | Below are tables showing our net revenues, OIBDA, total assets, capital expenditures and long-lived assets for our continuing operations by segment for the years ended December 31, 2016 , 2015 and 2014 for consolidated statements of operations and comprehensive income / loss data and consolidated statements of cash flow data; and as at December 31, 2016 and 2015 for consolidated balance sheet data. Net revenues: For The Year Ended December 31, 2016 2015 2014 Bulgaria $ 72,651 $ 73,090 $ 87,078 Croatia 55,607 55,912 62,026 Czech Republic 190,372 182,636 202,779 Romania 172,951 157,578 178,614 Slovak Republic 90,549 84,434 90,556 Slovenia 56,912 54,233 61,370 Intersegment revenues (1) (1,029 ) (2,042 ) (1,630 ) Total net revenues $ 638,013 $ 605,841 $ 680,793 (1) Reflects revenues earned from the sale of content to other country segments in CME Ltd. All other revenues are third party revenues. |
Schedule of Segment Reporting Information, by Segment | OIBDA: For The Year Ended December 31, 2016 2015 2014 Bulgaria $ 12,242 $ 15,479 $ 9,367 Croatia 8,578 7,880 7,835 Czech Republic 77,018 71,697 61,964 Romania 62,016 41,176 37,259 Slovak Republic 15,947 10,585 4,586 Slovenia 4,801 6,057 5,331 Elimination 2 (229 ) (16 ) Total operating segments 180,604 152,645 126,326 Corporate (30,555 ) (29,830 ) (30,880 ) Total OIBDA $ 150,049 $ 122,815 95,446 Depreciation of property, plant and equipment (30,190 ) (27,943 ) (32,836 ) Amortization of intangibles (8,270 ) (12,271 ) (12,348 ) Other items (1) — 11,982 (11,982 ) Operating income 111,589 94,583 38,280 Interest expense (Note 14) (132,224 ) (171,444 ) (142,005 ) Loss on extinguishment of debt (Note 4) (150,158 ) — (39,203 ) Non-operating expense, net (Note 15) (2,487 ) (25,939 ) (9,895 ) Loss before tax $ (173,280 ) $ (102,800 ) $ (152,823 ) |
Reconciliation of Assets from Segment to Consolidated | Total assets (1) : December 31, 2016 December 31, 2015 Bulgaria $ 130,873 $ 134,418 Croatia 49,135 52,306 Czech Republic 700,190 746,269 Romania 266,132 261,984 Slovak Republic 131,220 121,122 Slovenia 72,381 70,911 Total operating segments 1,349,931 1,387,010 Corporate 40,786 53,407 Total assets $ 1,390,717 $ 1,440,417 (1) Segment assets exclude any intercompany balances. |
Segment Reporting Capital Expenditure | Capital Expenditures: For The Year Ended December 31, 2016 2015 2014 Bulgaria $ 3,304 $ 3,517 $ 2,627 Croatia 2,593 3,215 2,701 Czech Republic 8,043 10,982 9,139 Romania 6,863 5,794 4,686 Slovak Republic 1,693 2,921 2,240 Slovenia 4,128 3,197 3,502 Total operating segments 26,624 29,626 24,895 Corporate 2,943 3,891 3,790 Total capital expenditures $ 29,567 $ 33,517 $ 28,685 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | Long-lived assets (1) : December 31, 2016 December 31, 2015 Bulgaria $ 6,280 $ 5,602 Croatia 5,832 5,497 Czech Republic 39,529 39,907 Romania 22,796 20,873 Slovak Republic 15,326 15,606 Slovenia 14,177 15,082 Total operating segments 103,940 102,567 Corporate 5,149 5,955 Total long-lived assets $ 109,089 $ 108,522 (1) Reflects property, plant and equipment. Revenue by type: For The Year Ended December 31, 2016 2015 2014 Television advertising $ 532,600 $ 505,498 $ 565,601 Carriage fees and subscriptions 78,606 73,058 80,487 Other 26,807 27,285 34,705 Total net revenues $ 638,013 $ 605,841 $ 680,793 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Revenue by type: For The Year Ended December 31, 2016 2015 2014 Television advertising $ 532,600 $ 505,498 $ 565,601 Carriage fees and subscriptions 78,606 73,058 80,487 Other 26,807 27,285 34,705 Total net revenues $ 638,013 $ 605,841 $ 680,793 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2016 , we had total commitments of US$ 128.2 million ( December 31, 2015 : US$ 144.9 million ) in respect of future programming, including contracts signed with license periods starting after the balance sheet date. In addition, we have digital transmission obligations, future minimum operating lease payments for non-cancellable operating leases with remaining terms in excess of one year (net of amounts to be recharged to third parties) and other commitments as follows: Programming purchase obligations Other commitments Operating leases Capital expenditures 2017 $ 43,462 $ 17,545 $ 3,374 $ 609 2018 34,889 5,157 2,077 — 2019 32,074 10,851 923 — 2020 14,003 356 476 — 2021 1,503 322 327 — 2022 and thereafter 2,281 44 1,433 — Total $ 128,212 $ 34,275 $ 8,610 $ 609 |
RELATED PARTY TRANSACTIONS (Ta
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Time Warner [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions | For The Year Ended December 31, 2016 2015 2014 Net revenues $ — $ 198 $ 59 Cost of revenues 25,445 32,497 20,713 Interest expense 108,205 127,970 61,887 December 31, 2016 December 31, 2015 Programming liabilities $ 18,959 $ 14,583 Other accounts payable and accrued liabilities 192 53 Long-term debt and other financing arrangements — 324,979 Accrued interest payable (1) 9,588 5,781 Other non-current liabilities (2) 44,397 31,895 |
QUARTERLY FINANCIAL DATA (Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | For the Year Ended December 31, 2015 First Quarter (Unaudited) Second Quarter (Unaudited) Third Quarter (Unaudited) Fourth Quarter (Unaudited) Consolidated Statements of Operations and Comprehensive Income / Loss Data: Net revenues $ 126,133 $ 166,834 $ 117,322 $ 195,552 Cost of revenues 98,828 101,229 85,832 116,654 Operating (loss) / income (17,239 ) 36,441 28,853 46,528 (Loss) / income from continuing operations (70,243 ) (11,669 ) (21,510 ) 1,137 (Loss) / income from discontinued operations, net of tax (3,288 ) 2,684 (265 ) (12,418 ) Net loss (73,531 ) (8,985 ) (21,775 ) (11,281 ) Net loss attributable to CME Ltd. (73,274 ) (8,678 ) (21,522 ) (11,427 ) Net loss per share: Basic EPS $ (0.53 ) $ (0.09 ) $ (0.18 ) $ (0.11 ) Effect of dilutive securities — — — — Diluted EPS $ (0.53 ) $ (0.09 ) $ (0.18 ) $ (0.11 ) Selected quarterly financial data for the years ended December 31, 2016 and 2015 is as follows: For the Year Ended December 31, 2016 First Quarter (Unaudited) Second Quarter (Unaudited) Third Quarter (Unaudited) Fourth Quarter (Unaudited) Consolidated Statements of Operations and Comprehensive Income / Loss Data: Net revenues $ 129,000 $ 175,206 $ 126,706 $ 207,101 Cost of revenues 97,777 104,962 91,141 119,946 Operating income 7,763 43,891 8,384 51,551 (Loss) / income from continuing operations (40,694 ) (141,249 ) (19,823 ) 21,169 Net (loss) / income (40,694 ) (141,249 ) (19,823 ) 21,169 Net (loss) / income attributable to CME Ltd. (40,435 ) (141,317 ) (19,627 ) 21,088 Net (loss) / income per share: Basic EPS $ (0.31 ) $ (0.98 ) $ (0.14 ) $ 0.07 Effect of dilutive securities — — — (0.01 ) Diluted EPS $ (0.31 ) $ (0.98 ) $ (0.14 ) $ 0.06 |
ORGANIZATION AND BUSINESS (Deta
ORGANIZATION AND BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2016channelsoperatingsegments | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 36 |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Operating Segments [Member] | |
Product Information [Line Items] | |
Number of Operating Segments | operatingsegments | 6 |
BULGARIA | |
Product Information [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 94.00% |
BULGARIA | Other Channel Member [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 5 |
BULGARIA | General Enterainment Channel [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 1 |
CROATIA | |
Product Information [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
CROATIA | Other Channel Member [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 3 |
CROATIA | General Enterainment Channel [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 1 |
CZECH REPUBLIC | |
Product Information [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
CZECH REPUBLIC | Other Channel Member [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 7 |
CZECH REPUBLIC | General Enterainment Channel [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 1 |
ROMANIA | |
Product Information [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
ROMANIA | Other Channel Member [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 8 |
ROMANIA | General Enterainment Channel [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 1 |
Slovak Republic [Member] | |
Product Information [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Slovak Republic [Member] | Other Channel Member [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 3 |
Slovak Republic [Member] | General Enterainment Channel [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 1 |
Slovenia [Member] | |
Product Information [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% |
Slovenia [Member] | Other Channel Member [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 3 |
Slovenia [Member] | General Enterainment Channel [Member] | |
Product Information [Line Items] | |
Number of Television Channels Within Broadcast Segment | 2 |
BASIS OF PRESENTATION AND SIG50
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 25 years | |
Machinery, fixtures and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 4 years | |
Machinery, fixtures and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 8 years | |
Other equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Other equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 8 years | |
Software licenses [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Software licenses [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Other Noncurrent Liabilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (13.8) | |
net cash provided by (used in) operating activities, continuing operations | ||
Property, Plant and Equipment [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 110.7 | $ 1.1 |
BASIS OF PRESENTATION AND SIG51
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Other (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)operatingsegments | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Accounting Policies [Line Items] | |||
Other Comprehensive Income (Loss) on Retranslation of Intercompany Loans of a Longterm Investment Nature | $ 8.8 | $ (89) | $ (164.4) |
Advertising Barter Transactions, Advertising Barter Revenue | 2 | 1.5 | 1.5 |
Advertising Expense | $ 5.4 | 3 | $ 3.7 |
Operating Segments [Member] | |||
Accounting Policies [Line Items] | |||
Number of Operating Segments | operatingsegments | 6 | ||
Other Noncurrent Assets [Member] | |||
Accounting Policies [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (13.8) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accounting Policies [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (4.2) | ||
Other Noncurrent Liabilities [Member] | |||
Accounting Policies [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (13.8) | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | |||
Accounting Policies [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 110.7 | 1.1 | |
net cash provided by (used in) financing activities, continuing operations | |||
Accounting Policies [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 110.7 | $ 1.1 |
GOODWILL AND INTANGIBLE ASSET52
GOODWILL AND INTANGIBLE ASSETS Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | |||
Goodwill, Gross Beginning Balance | $ 1,095,309 | $ 1,154,464 | |
Accumulated Impairment Losses, Beginning Balance | (473,066) | (473,066) | |
Goodwill, Net Beginning Balance | 602,069 | 622,243 | $ 681,398 |
Foreign Currency | (20,174) | (59,155) | |
Accumulated Impairment Losses, Ending Balance | (473,066) | (473,066) | |
Goodwill, Gross Ending Balance | 1,075,135 | 1,095,309 | |
BULGARIA | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross Beginning Balance | 172,365 | 175,494 | |
Accumulated Impairment Losses, Beginning Balance | (144,639) | (144,639) | |
Goodwill, Net Beginning Balance | 26,750 | 27,726 | 30,855 |
Foreign Currency | (976) | (3,129) | |
Accumulated Impairment Losses, Ending Balance | (144,639) | (144,639) | |
Goodwill, Gross Ending Balance | 171,389 | 172,365 | |
CROATIA | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross Beginning Balance | 11,005 | 11,065 | |
Accumulated Impairment Losses, Beginning Balance | (10,454) | (10,454) | |
Goodwill, Net Beginning Balance | 534 | 551 | 611 |
Foreign Currency | (17) | (60) | |
Accumulated Impairment Losses, Ending Balance | (10,454) | (10,454) | |
Goodwill, Gross Ending Balance | 10,988 | 11,005 | |
CZECH REPUBLIC | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross Beginning Balance | 759,491 | 800,640 | |
Accumulated Impairment Losses, Beginning Balance | (287,545) | (287,545) | |
Goodwill, Net Beginning Balance | 456,938 | 471,946 | 513,095 |
Foreign Currency | (15,008) | (41,149) | |
Accumulated Impairment Losses, Ending Balance | (287,545) | (287,545) | |
Goodwill, Gross Ending Balance | 744,483 | 759,491 | |
ROMANIA | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross Beginning Balance | 85,443 | 94,777 | |
Accumulated Impairment Losses, Beginning Balance | (11,028) | (11,028) | |
Goodwill, Net Beginning Balance | 71,758 | 74,415 | 83,749 |
Foreign Currency | (2,657) | (9,334) | |
Accumulated Impairment Losses, Ending Balance | (11,028) | (11,028) | |
Goodwill, Gross Ending Balance | 82,786 | 85,443 | |
Slovak Republic [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross Beginning Balance | 47,605 | 53,088 | |
Accumulated Impairment Losses, Beginning Balance | 0 | 0 | |
Goodwill, Net Beginning Balance | 46,089 | 47,605 | 53,088 |
Foreign Currency | (1,516) | (5,483) | |
Accumulated Impairment Losses, Ending Balance | 0 | 0 | |
Goodwill, Gross Ending Balance | 46,089 | 47,605 | |
Slovenia [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Gross Beginning Balance | 19,400 | 19,400 | |
Accumulated Impairment Losses, Beginning Balance | (19,400) | (19,400) | |
Goodwill, Net Beginning Balance | 0 | 0 | $ 0 |
Foreign Currency | 0 | 0 | |
Accumulated Impairment Losses, Ending Balance | (19,400) | (19,400) | |
Goodwill, Gross Ending Balance | $ 19,400 | $ 19,400 |
GOODWILL AND INTANGIBLE ASSET53
GOODWILL AND INTANGIBLE ASSETS Intangibles Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Gross | $ 319,461 | $ 330,920 |
Finite-Lived Intangible Assets, Accumulated Amortization | (181,121) | (179,758) |
Intangible Asset [Roll Forward] | ||
Finite Lived Intangible Asset Net Beginning Balance | 151,162 | |
Finite Lived Intangible Asset Net Ending Balance | 138,340 | |
Trademarks [Member] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 80,324 | 83,188 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets, Useful Life (in years) | 5 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets, Useful Life (in years) | 15 years | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets, Gross | $ 1,522 | 2,138 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,208) | (1,859) |
Intangible Asset [Roll Forward] | ||
Finite Lived Intangible Asset Net Beginning Balance | 279 | |
Finite Lived Intangible Asset Net Ending Balance | 314 | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Gross | 51,338 | 53,120 |
Finite-Lived Intangible Assets, Accumulated Amortization | (48,997) | (49,672) |
Intangible Asset [Roll Forward] | ||
Finite Lived Intangible Asset Net Beginning Balance | 3,448 | |
Finite Lived Intangible Asset Net Ending Balance | 2,341 | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets, Gross | 591 | 614 |
Finite-Lived Intangible Assets, Accumulated Amortization | (591) | (614) |
Intangible Asset [Roll Forward] | ||
Finite Lived Intangible Asset Net Beginning Balance | 0 | |
Finite Lived Intangible Asset Net Ending Balance | 0 | |
Operating and Broadcast Rights [Member] | ||
Finite-Lived Intangible Assets, Gross | 185,686 | 191,860 |
Finite-Lived Intangible Assets, Accumulated Amortization | (130,325) | $ (127,613) |
Intangible Asset [Roll Forward] | ||
Finite Lived Intangible Asset Net Beginning Balance | 64,247 | |
Finite Lived Intangible Asset Net Ending Balance | $ 55,361 |
GOODWILL AND INTANGIBLE ASSET54
GOODWILL AND INTANGIBLE ASSETS Intangibles Gross (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Gross value | $ 319,461 | $ 330,920 |
Accumulated amortization | (181,121) | (179,758) |
Net book value of amortized intangible assets | $ 138,340 | $ 151,162 |
GOODWILL AND INTANGIBLE ASSET55
GOODWILL AND INTANGIBLE ASSETS Estimated Expense (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 7,777 |
2,017 | 7,703 |
2,018 | 7,240 |
2,019 | 7,020 |
2,020 | $ 6,960 |
LONG-TERM DEBT AND OTHER FINA56
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Long-term Debt, Current and Noncurrent [Abstract] | ||
Carrying Value of Senior Debt | $ 999,209 | $ 906,028 |
Other credit facilities and capital leases | 4,313 | 3,648 |
Total long-term debt and other financing arrangements | 1,003,522 | 909,676 |
Less: current maturities | (1,494) | (1,155) |
Long-term debt and other financing arrangements | 1,002,028 | $ 908,521 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,015 | 0 | |
2,016 | 264,368 | |
2,017 | 248,067 | |
2,018 | 0 | |
2,019 | 494,162 | |
2020 and thereafter | 0 | |
Total long-debt and credit facilities | 1,006,597 | |
Debt issuance costs | (7,388) | |
Carrying amount of long-debt and credit facilities | $ 999,209 |
LONG-TERM DEBT AND OTHER FINA57
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Financing Transactions (Details) $ / shares in Units, € in Millions | Apr. 07, 2016USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2016EUR (€)shares | May 02, 2014$ / sharesshares | |
Debt Instrument [Line Items] | ||||||||
Financial Covenant, Net Leverage | 5 | |||||||
Accrued interest payable | $ 2,941,000 | $ 914,000 | ||||||
Loss on extinguishment of debt (Note 4) | (150,158,000) | 0 | $ (39,203,000) | |||||
2021 Euro Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 534,000,000 | $ 494,162,000 | € 468.8 | |||||
Stated interest rate | 1.50% | 1.50% | ||||||
Financial Covenant, Net Leverage | 5 | |||||||
2017 Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 38,200,000 | |||||||
Stated interest rate | 15.00% | |||||||
Accrued interest payable | $ 1,500,000 | |||||||
2018 Euro Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 264,368,000 | € 250.8 | ||||||
Stated interest rate | 1.50% | 1.50% | ||||||
Debt Instrument, Term, Period of Extension | 1 year | |||||||
2017 PIK Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 502,500,000 | |||||||
Stated interest rate | 15.00% | |||||||
Accrued interest payable | $ 26,600,000 | |||||||
2021 Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 115,000,000 | |||||||
Debt Instrument, Face Amount | $ 0 | |||||||
Stated interest rate | [1] | 9.00% | 9.00% | |||||
Guarantee Fee [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Paid, Net | $ (48,600,000) | $ 0 | $ 0 | |||||
2018 Warrants [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 1 | |||||||
Common Class A [Member] | 2018 Warrants [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Class of Warrant or Right, Outstanding | shares | 107,003,045 | 107,003,045 | 114,000,000 | |||||
Common Class A [Member] | 2018 Warrants [Member] | Time Warner and TW Investor [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Class of Warrant or Right, Outstanding | shares | 100,926,996 | 100,926,996 | ||||||
Subsequent Event [Member] | 2021 Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |||||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Financial Covenant, Net Leverage | 7 | |||||||
Maximum [Member] | 2021 Euro Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Financial Covenant, Net Leverage | 8 | |||||||
Maximum [Member] | 2021 Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Financial Covenant, Net Leverage | 7 | |||||||
Minimum [Member] | 2021 Euro Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Financial Covenant, Net Leverage | 5 | |||||||
Minimum [Member] | 2021 Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Financial Covenant, Net Leverage | 5 | |||||||
[1] | (2) As at December 31, 2016, the aggregate principal amount available under the 2021 Revolving Credit Facility was undrawn. |
LONG-TERM DEBT AND OTHER FINA58
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Senior Debt (Details) $ / shares in Units, € in Millions, RON in Millions, CZK in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016CZKRateshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 01, 2018USD ($) | Nov. 01, 2017 | Dec. 31, 2016USD ($)shares | Dec. 31, 2016EUR (€)shares | Dec. 31, 2016RONshares | Apr. 07, 2016USD ($) | May 02, 2014$ / sharesshares | ||
Debt Instrument [Line Items] | ||||||||||||
Credit facilities | [1],[2],[3] | $ 0 | $ 0 | |||||||||
Deferred Finance Costs, Noncurrent, Net | (27,060,000) | (15,018,000) | ||||||||||
Carrying Value of Senior Debt | 906,028,000 | $ 999,209,000 | ||||||||||
Interest expense, debt | $ 110,127,000 | 114,730,000 | $ 104,570,000 | |||||||||
Loss on extinguishment of debt (Note 4) | $ (150,158,000) | 0 | (39,203,000) | |||||||||
Financial Covenant, Net Leverage | 5 | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||
Repayments of Debt and Capital Lease Obligations | $ 1,357,000 | 27,365,000 | 1,080,000 | |||||||||
2015 Convertible Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||
2021 Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 115,000,000 | |||||||||||
Debt Instrument, Face Amount | 0 | |||||||||||
Deferred Finance Costs, Noncurrent, Net | [4] | 0 | ||||||||||
Carrying Value of Senior Debt | $ 0 | |||||||||||
Stated interest rate | [5] | 9.00% | 9.00% | 9.00% | 9.00% | |||||||
Debt Instrument, Interest Rate, All-In Rate | [5] | 9.00% | 9.00% | 9.00% | 9.00% | |||||||
2021 Revolving Credit Facility [Member] | Minimum Required Cash Portion [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||
2021 Revolving Credit Facility [Member] | Alternative Base Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 8.00% | |||||||||||
2021 Revolving Credit Facility [Member] | Base Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 9.00% | |||||||||||
Stated interest rate | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||
2021 Euro Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 494,162,000 | € 468.8 | $ 534,000,000 | |||||||||
Deferred Finance Costs, Noncurrent, Net | [4] | (6,281,000) | ||||||||||
Carrying Value of Senior Debt | 0 | 487,881,000 | ||||||||||
Long-term Debt, Fair Value | $ 369,700,000 | |||||||||||
Stated interest rate | 1.50% | 1.50% | 1.50% | 1.50% | ||||||||
Derivative, Average Fixed Interest Rate | 0.28% | 0.28% | 0.28% | 0.28% | ||||||||
Debt Instrument, Guarantee Fee, Stated Percentage | 7.22% | 7.22% | 7.22% | 7.22% | ||||||||
Debt Instrument, Interest Rate, All-In Rate | 9.00% | 9.00% | 9.00% | 9.00% | ||||||||
Financial Covenant, Net Leverage | 5 | |||||||||||
2021 Euro Term Loan [Member] | Minimum Required Cash Portion [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, All-In Rate | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||
Guarantee Fee [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest expense, debt | $ 68,000,000 | 21,500,000 | $ 1,200,000 | |||||||||
2018 Euro Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 264,368,000 | € 250.8 | ||||||||||
Deferred Finance Costs, Noncurrent, Net | [4] | (634,000) | ||||||||||
Carrying Value of Senior Debt | 272,189,000 | 263,734,000 | ||||||||||
Long-term Debt, Fair Value | 273,000,000 | $ 233,300,000 | ||||||||||
Stated interest rate | 1.50% | 1.50% | 1.50% | 1.50% | ||||||||
Derivative, Average Fixed Interest Rate | [6] | 0.21% | 0.21% | 0.21% | 0.21% | |||||||
Debt Instrument, Guarantee Fee, Stated Percentage | 6.79% | 6.79% | 6.79% | 6.79% | ||||||||
Debt Instrument, Interest Rate, All-In Rate | 8.50% | 8.50% | 8.50% | 8.50% | ||||||||
2019 Euro Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 248,067,000 | € 235.3 | ||||||||||
Deferred Finance Costs, Noncurrent, Net | [4] | (473,000) | ||||||||||
Carrying Value of Senior Debt | 246,458,000 | 247,594,000 | ||||||||||
Long-term Debt, Fair Value | 256,200,000 | $ 203,300,000 | ||||||||||
Stated interest rate | 1.50% | 1.50% | 1.50% | 1.50% | ||||||||
Derivative, Average Fixed Interest Rate | 0.31% | 0.31% | 0.31% | 0.31% | ||||||||
Debt Instrument, Guarantee Fee, Stated Percentage | 6.69% | 6.69% | 6.69% | 6.69% | ||||||||
Debt Instrument, Interest Rate, All-In Rate | 8.50% | 8.50% | 8.50% | 8.50% | ||||||||
2017 PIK Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 502,500,000 | |||||||||||
Carrying Value of Senior Debt | 359,789,000 | $ 0 | ||||||||||
Stated interest rate | 15.00% | |||||||||||
2017 Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 38,200,000 | |||||||||||
Carrying Value of Senior Debt | $ 27,592,000 | 0 | ||||||||||
Stated interest rate | 15.00% | |||||||||||
Senior Debt and Credit Facilities [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | 1,006,597,000 | |||||||||||
Deferred Finance Costs, Noncurrent, Net | [4] | (7,388,000) | ||||||||||
Carrying Value of Senior Debt | $ 999,209,000 | |||||||||||
CME NV and CME BV [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding Shares Pledged, Percentage | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||
CME NV and CME BV [Member] | 2021 Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding Shares Pledged, Percentage | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||
2018 Warrants [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 1 | |||||||||||
Common Class A [Member] | 2018 Warrants [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Class of Warrant or Right, Outstanding | shares | 107,003,045 | 107,003,045 | 107,003,045 | 107,003,045 | 114,000,000 | |||||||
Common Class A [Member] | Time Warner and TW Investor [Member] | 2018 Warrants [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Class of Warrant or Right, Outstanding | shares | 100,926,996 | 100,926,996 | 100,926,996 | 100,926,996 | ||||||||
Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.10% | |||||||||||
Minimum [Member] | 2021 Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 6.00% | |||||||||||
Financial Covenant, Net Leverage | 5 | |||||||||||
Minimum [Member] | 2021 Euro Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, All-In Rate | 7.00% | 7.00% | 7.00% | 7.00% | ||||||||
Financial Covenant, Net Leverage | 5 | |||||||||||
Minimum [Member] | 2018 Euro Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.10% | |||||||||||
Minimum [Member] | 2019 Euro Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.10% | |||||||||||
Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.90% | |||||||||||
Financial Covenant, Net Leverage | 7 | |||||||||||
Maximum [Member] | 2021 Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 9.00% | |||||||||||
Financial Covenant, Net Leverage | 7 | |||||||||||
Maximum [Member] | 2021 Euro Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, All-In Rate | 10.50% | 10.50% | 10.50% | 10.50% | ||||||||
Financial Covenant, Net Leverage | 8 | |||||||||||
Maximum [Member] | 2018 Euro Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.90% | |||||||||||
Maximum [Member] | 2019 Euro Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.90% | |||||||||||
Subsequent Event [Member] | 2021 Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |||||||||||
Scenario, Forecast [Member] | 2018 Euro Term Loan [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Derivative, Average Fixed Interest Rate | 0.14% | |||||||||||
Global Funds IFN S.A. [Member] | Pro TV [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facilities | $ 24,600,000 | RON 105.7 | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 25,300,000 | RON 109 | ||||||||||
Factoring Fee, Percentage | 4.00% | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.00% | |||||||||||
Ceska Sporitelna [Member] | CET 21 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facilities | 0 | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | CZK 735 | $ 28,700,000 | ||||||||||
Factoring Fee, Percentage | 0.30% | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||||||
[1] | As at December 31, 2016 and December 31, 2015, there were no drawings outstanding under a CZK 735.0 million (approximately US$ 28.7 million) factoring framework agreement with Factoring Ceska Sporitelna (“FCS”). Under this facility, up to CZK 735.0 million (approximately US$ 28.7 million) of receivables from certain customers in the Czech Republic may be factored on a recourse or non-recourse basis. The facility has a factoring fee of 0.3% of any factored receivable and bears interest at one-month PRIBOR plus 2.5% per annum for the period that receivables are factored and outstanding. | |||||||||||
[2] | As at December 31, 2016 there were RON 105.7 million (approximately US$ 24.6 million) of receivables factored under a factoring framework agreement with Global Funds IFN S.A. entered into in the first quarter of 2016. Under this facility, receivables from certain customers in Romania may be factored on a non-recourse basis. The facility has a factoring fee of 4.0% of any factored receivable and bears interest at 6.0% per annum from the date the receivables are factored to the due date of the factored receivable. | |||||||||||
[3] | We have a cash pooling arrangement with Bank Mendes Gans (“BMG”), a subsidiary of ING Bank N.V. (“ING”), which enables us to receive credit across the group in respect of cash balances which our subsidiaries deposit with BMG. Cash deposited by our subsidiaries with BMG is pledged as security against the drawings of other subsidiaries up to the amount deposited.As at December 31, 2016, we had deposits of US$ 16.4 million in and no drawings on the BMG cash pool. Interest is earned on deposits at the relevant money market rate. As at December 31, 2015, we had deposits of US$ 19.6 million in and no drawings on the BMG cash pool. | |||||||||||
[4] | (1) Debt issuance costs related to the 2018 Euro Term Loan, 2019 Euro Term Loan and 2021 Euro Term Loan are being amortized on a straight-line basis, which approximates the effective interest method, over the life of the respective instruments. Debt issuance costs related to the 2021 Revolving Credit Facility are classified as non-current assets in our consolidated balance sheet and are being amortized on a straight-line basis over the life of the 2021 Revolving Credit Facility. | |||||||||||
[5] | (2) As at December 31, 2016, the aggregate principal amount available under the 2021 Revolving Credit Facility was undrawn. | |||||||||||
[6] | (1) Effective until November 1, 2017. From November 1, 2017 through maturity on November 1, 2018, the rate fixed pursuant to interest rate hedges will decrease to 0.14%, with a corresponding increase in the guarantee fee rate, such that the all-in borrowing rate remains 8.50%. |
LONG-TERM DEBT AND OTHER FINA59
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Convertible Notes (Details) $ in Thousands, € in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Apr. 07, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||||
Senior Notes | $ 999,209 | $ 906,028 | |||
2015 Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5.00% | 5.00% | |||
2017 PIK Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 15.00% | ||||
Debt Instrument, Face Amount | $ 502,500 | ||||
Senior Notes | $ 0 | 359,789 | |||
2017 Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 15.00% | ||||
Debt Instrument, Face Amount | $ 38,200 | ||||
Senior Notes | $ 0 | 27,592 | |||
2018 Euro Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 1.50% | 1.50% | |||
Debt Instrument, Face Amount | $ 264,368 | € 250.8 | |||
Senior Notes | $ 263,734 | 272,189 | |||
2019 Euro Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 1.50% | 1.50% | |||
Debt Instrument, Face Amount | $ 248,067 | € 235.3 | |||
Senior Notes | $ 247,594 | $ 246,458 | |||
2021 Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | [1] | 9.00% | 9.00% | ||
Debt Instrument, Face Amount | $ 0 | ||||
Senior Notes | $ 0 | ||||
[1] | (2) As at December 31, 2016, the aggregate principal amount available under the 2021 Revolving Credit Facility was undrawn. |
LONG-TERM DEBT AND OTHER FINA60
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Convertiable Notes Tables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument Rollforward [Roll Forward] | |||
Net Carrying Value, Beginning Balance | $ 906,028 | ||
Amortization of Debt Discount (Premium) | 12,945 | $ 41,230 | $ 19,138 |
Net Carrying Value, Ending Balance | $ 999,209 | $ 906,028 |
LONG-TERM DEBT AND OTHER FINA61
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Fixed Rate Note Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt (Note 4) | $ (150,158) | $ 0 | $ (39,203) |
Senior Notes | $ 999,209 | $ 906,028 |
LONG-TERM DEBT AND OTHER FINA62
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Credit Facility (Details) CZK in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016CZKRate | Dec. 31, 2016CZK | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Line of Credit Facility [Line Items] | |||||
Credit facilities | [1],[2],[3] | $ 0 | $ 0 | ||
Capital leases | 4,313,000 | 3,648,000 | |||
Total credit facilites and capital leases | 4,313,000 | 3,648,000 | |||
Less current maturities | (1,494,000) | (1,155,000) | |||
Total non current credit facilites an capital leasesd Capital Leases | 2,819,000 | 2,493,000 | |||
Long-term Debt | $ 1,003,522,000 | 909,676,000 | |||
CME NV and CME BV [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding Shares Pledged, Percentage | 100.00% | 100.00% | 100.00% | ||
BMG Bank Mendes Gans [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facilities | $ 0 | 0 | |||
Line of credit facility cash pooling arrangment deposit | 16,400,000 | $ 19,600,000 | |||
Ceska Sporitelna [Member] | CET 21 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit facilities | 0 | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||
Line of Credit Facility, Maximum Borrowing Capacity | CZK 735 | CZK 735 | $ 28,700,000 | ||
Factoring Fee, Percentage | 0.30% | ||||
2021 Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | [4] | 9.00% | 9.00% | 9.00% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 115,000,000 | ||||
Debt Instrument, Face Amount | $ 0 | ||||
2021 Revolving Credit Facility [Member] | CME NV and CME BV [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding Shares Pledged, Percentage | 100.00% | 100.00% | 100.00% | ||
Alternative Base Rate [Member] | 2021 Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 8.00% | ||||
Base Rate [Member] | 2021 Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 9.00% | ||||
Stated interest rate | 1.00% | 1.00% | 1.00% | ||
Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.10% | ||||
Minimum [Member] | 2021 Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 6.00% | ||||
Debt Instrument, Reference Rate for Variable Rate | Rate | 1.00% | ||||
Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.90% | ||||
Maximum [Member] | 2021 Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 9.00% | ||||
[1] | As at December 31, 2016 and December 31, 2015, there were no drawings outstanding under a CZK 735.0 million (approximately US$ 28.7 million) factoring framework agreement with Factoring Ceska Sporitelna (“FCS”). Under this facility, up to CZK 735.0 million (approximately US$ 28.7 million) of receivables from certain customers in the Czech Republic may be factored on a recourse or non-recourse basis. The facility has a factoring fee of 0.3% of any factored receivable and bears interest at one-month PRIBOR plus 2.5% per annum for the period that receivables are factored and outstanding. | ||||
[2] | As at December 31, 2016 there were RON 105.7 million (approximately US$ 24.6 million) of receivables factored under a factoring framework agreement with Global Funds IFN S.A. entered into in the first quarter of 2016. Under this facility, receivables from certain customers in Romania may be factored on a non-recourse basis. The facility has a factoring fee of 4.0% of any factored receivable and bears interest at 6.0% per annum from the date the receivables are factored to the due date of the factored receivable. | ||||
[3] | We have a cash pooling arrangement with Bank Mendes Gans (“BMG”), a subsidiary of ING Bank N.V. (“ING”), which enables us to receive credit across the group in respect of cash balances which our subsidiaries deposit with BMG. Cash deposited by our subsidiaries with BMG is pledged as security against the drawings of other subsidiaries up to the amount deposited.As at December 31, 2016, we had deposits of US$ 16.4 million in and no drawings on the BMG cash pool. Interest is earned on deposits at the relevant money market rate. As at December 31, 2015, we had deposits of US$ 19.6 million in and no drawings on the BMG cash pool. | ||||
[4] | (2) As at December 31, 2016, the aggregate principal amount available under the 2021 Revolving Credit Facility was undrawn. |
LONG-TERM DEBT AND OTHER FINA63
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS Capital Lease (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,015 | $ 1,570 |
2,016 | 1,339 |
2,017 | 1,003 |
2,018 | 525 |
2,019 | 13 |
2020 and thereafter | 0 |
Total undiscounted payments | 4,450 |
Less: amount representing interest | (137) |
Present value of net minimum lease payments | $ 4,313 |
PROGRAM RIGHTS (Details)
PROGRAM RIGHTS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Less: current portion of acquired program rights | $ (86,151) | $ (85,972) |
Program rights, net | 179,356 | 169,073 |
Acquired Program Rights [Member] | ||
Acquired program rights, net of amortization | 183,303 | 179,632 |
Less: current portion of acquired program rights | (86,151) | (85,972) |
Program rights, net | 97,152 | 93,660 |
Produced Program Rights [Member] | ||
Program rights, net | 82,204 | 75,413 |
Produced Program Rights [Member] | Feature Films [Member] | ||
Produced program rights – Feature Films: | ||
Released, net of amortization | 1,039 | 1,298 |
Produced Program Rights [Member] | Television Programs [Member] | ||
Produced program rights – Television Programs: | ||
Released, net of amortization | 54,149 | 56,125 |
Completed and not released | 2,593 | 3,500 |
In production | 23,712 | 13,783 |
Development and pre-production | $ 711 | $ 707 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Third-party customers | $ 187,937 | $ 176,628 | |
Less: allowance for bad debts and credit notes | (9,598) | (9,201) | |
Total accounts receivable | 178,339 | 167,427 | |
Provision for Doubtful Accounts | $ 3,600 | $ 2,100 | $ 4,200 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current: | ||
Prepaid acquired programming | $ 22,511 | $ 22,761 |
Other prepaid expenses | 5,270 | 6,941 |
Deferred tax | 0 | 10,425 |
VAT recoverable | 713 | 733 |
Income taxes recoverable | 206 | 249 |
Other | 3,771 | 2,097 |
Total other current assets | 32,471 | 43,206 |
Non-current: | ||
Capitalized debt costs | 15,018 | 27,060 |
Deferred tax | 4,570 | 124 |
Other | 1,855 | 3,949 |
Total other non-current assets | $ 21,443 | $ 31,133 |
PROPERTY, PLANT AND EQUIPMENT67
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, total cost | $ 387,708 | $ 347,711 | |||
Less: accumulated depreciation | (278,619) | (239,189) | |||
Total net book value | 109,089 | [1] | 108,522 | [1] | $ 114,335 |
Assets held under capital leases (included in the above) | |||||
Assets held under capital leases (included in the above) | 10,022 | 8,451 | |||
Less: accumulated depreciation | (4,316) | (3,556) | |||
Total net book value | 5,706 | 4,895 | |||
Depreciation of property, plant and equipment | 30,190 | 27,943 | $ 32,836 | ||
Land and buildings [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, total cost | 90,988 | 92,237 | |||
Assets held under capital leases (included in the above) | |||||
Assets held under capital leases (included in the above) | 3,684 | 3,805 | |||
Machinery, fixtures and equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, total cost | 202,110 | 164,503 | |||
Assets held under capital leases (included in the above) | |||||
Assets held under capital leases (included in the above) | 6,338 | 4,646 | |||
Other equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, total cost | 33,752 | 32,314 | |||
Software licenses [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, total cost | 55,542 | 55,656 | |||
Construction in progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, total cost | $ 5,316 | $ 3,001 | |||
[1] | Reflects property, plant and equipment. |
PROPERTY, PLANT AND EQUIPMENT R
PROPERTY, PLANT AND EQUIPMENT Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Movement in Property, Plant and Equipment [Roll Forward] | ||||
Opening balance | $ 108,522 | [1] | $ 114,335 | |
Additions | 34,371 | 34,523 | ||
Disposals | (88) | (290) | ||
Depreciation | (30,190) | (27,943) | ||
Foreign currency movements | (3,526) | (10,810) | ||
Other | 0 | (1,293) | ||
Ending balance | [1] | $ 109,089 | $ 108,522 | |
[1] | Reflects property, plant and equipment. |
ACCOUNTS PAYABLE AND ACCRUED 69
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable and accrued expenses | $ 59,522 | $ 57,042 |
Related party accounts payable | 192 | 53 |
Programming liabilities | 29,249 | 24,901 |
Related party programming liabilities | 18,959 | 14,583 |
Duties and other taxes payable | 13,446 | 12,856 |
Accrued staff costs | 20,565 | 20,709 |
Accrued interest payable | 2,941 | 914 |
Accrued interest payable (1) | 9,588 | 477 |
Income taxes payable | 5,514 | 249 |
Other accrued liabilities | 1,005 | 2,921 |
Total accounts payable and accrued liabilities | $ 160,981 | $ 134,705 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Accrued Interest, Related Parties, Noncurrent | $ 0 | $ 977 | |
Current: | |||
Deferred revenue | 5,333 | 7,546 | |
Derivative liabilities | 477 | 650 | |
Restructuring provision | 0 | 458 | |
Legal provisions | 2,680 | 1,520 | |
Other | 599 | 274 | |
Total other current liabilities | 9,089 | 10,448 | |
Non-current: | |||
Deferred tax | 20,335 | 25,990 | |
Commitment Fee Payable, Related Parties, Noncurrent | [1] | 9,905 | 9,240 |
Guarantee Fee Payable, Related Parties, Noncurrent | 34,492 | 22,655 | |
Other | 4,026 | 1,583 | |
Other non-current liabilities (Note 10) | 68,758 | 65,749 | |
Time Warner [Member] | |||
Non-current: | |||
Accrued interest | 0 | 5,304 | |
Related party accrued interest | 0 | 5,304 | |
Other non-current liabilities (Note 10) | [2] | $ 44,397 | $ 31,895 |
2015 Convertible Notes [Member] | |||
Accounts Payable, Interest-bearing, Interest Rate | 8.50% | ||
[1] | (1) Represents the commitment fee ("Commitment Fee") payable to Time Warner, including accrued interest, in respect of its obligation under a commitment letter dated November 14, 2014 between Time Warner and us whereby Time Warner agreed to provide or assist with arranging a loan facility to repay our 5.0% senior convertible notes at maturity in November 2015. The Commitment Fee is payable by November 1, 2019, the maturity date of the 2019 Euro Term Loan, or earlier if the repayment of the 2019 Euro Term Loan is accelerated. The Commitment Fee bears interest at 8.5% per annum and such interest is payable in arrears on each May 1 and November 1, and may be paid in cash or in kind, at our election. | ||
[2] | (2) Amount represents the Commitment Fee, as well as the Guarantee Fees for which we have made an election to pay in kind. See Note 4, "Long-term Debt and Other Financing Arrangements". |
CONVERTIBLE REDEEMABLE PREFER71
CONVERTIBLE REDEEMABLE PREFERRED SHARES (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 25, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Temporary Equity [Line Items] | ||||
Temporary equity | $ 254,899 | $ 241,198 | ||
Accretion on Series B Convertible Redeemable Preferred Stock | $ 13,701 | $ 17,272 | $ 16,036 | |
Series B Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.08 | $ 0.08 | $ 0.08 | |
Preferred Stock, Shares Outstanding | 200,000 | 200,000 | ||
Convertible Preferred Stock, Estimated Common Stock Issued in Future Conversion | 105,200,000 | |||
Sale of Stock, Price Per Share | 1,000 | |||
Preferred Stock, Conversion Basis | $ 2.42 | |||
Series B Preferred Stock [Member] | 1 - 3 years [Member] | ||||
Temporary Equity [Line Items] | ||||
Preferred Stock, Dividend Rate, Percentage | 3.75% | |||
T W Investor [Member] | ||||
Temporary Equity [Line Items] | ||||
Ownership Percentage Related Party | 42.80% | |||
Time Warner [Member] | ||||
Temporary Equity [Line Items] | ||||
Ownership Percentage Related Party | 47.00% | |||
Maximum [Member] | Time Warner [Member] | Common Class A [Member] | ||||
Temporary Equity [Line Items] | ||||
Ownership Percentage Related Party | 49.90% |
EQUITY (Details)
EQUITY (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)vote / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | May 02, 2014$ / sharesshares | |
Class of Stock [Line Items] | ||||
Number of shares of Class B common stock to Class A common stock | 1 | |||
Proceeds from Warrant Exercises | $ | $ 6,997 | $ 0 | $ 0 | |
T W Investor [Member] | ||||
Class of Stock [Line Items] | ||||
Ownership percentage, related party | 42.80% | |||
Time Warner [Member] | ||||
Class of Stock [Line Items] | ||||
Ownership percentage, related party | 47.00% | |||
Beneficial Ownership Interest Total Voting Power Percentage | 47.00% | |||
Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Outstanding | 1 | 1 | ||
Series A Preferred Stock [Member] | T W Investor [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares issued | 1 | 1 | ||
Preferred Stock, Shares Outstanding | 1 | 1 | ||
Common Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Vote Per Share of Common Stock | vote / shares | 1 | |||
Common stock, shares authorized | 440,000,000 | 440,000,000 | ||
Common Stock, Shares, Issued | 143,449,913 | 135,804,221 | ||
Common Class A [Member] | T W Investor [Member] | ||||
Class of Stock [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 11,211,449 | 11,211,449 | 11,211,449 | |
Series B Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Convertible Preferred Stock, Estimated Common Stock Issued in Future Conversion | 105,200,000 | |||
Preferred Stock, Shares Outstanding | 200,000 | 200,000 | ||
Common Class B [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Vote Per Share of Common Stock | vote / shares | 10 | |||
Common stock, shares authorized | 15,000,000 | 15,000,000 | ||
Common Stock, Shares, Issued | ||||
Common stock, shares outstanding | 0 | 0 | ||
Maximum [Member] | Common Class A [Member] | Time Warner [Member] | ||||
Class of Stock [Line Items] | ||||
Ownership percentage, related party | 49.90% | |||
2018 Warrants [Member] | ||||
Class of Stock [Line Items] | ||||
Number of Warrants Exercised | 6,996,955 | |||
Proceeds from Warrant Exercises | $ | $ 7,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 1 | |||
2018 Warrants [Member] | Common Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Class of Warrant or Right, Outstanding | 107,003,045 | 114,000,000 | ||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 1 | |||
2018 Warrants [Member] | Common Class A [Member] | Time Warner and TW Investor [Member] | ||||
Class of Stock [Line Items] | ||||
Class of Warrant or Right, Outstanding | 100,926,996 |
FINANCIAL INSTRUMENTS AND FAI73
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016USD ($)contracts | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Apr. 05, 2016EUR (€)contracts | Nov. 10, 2015EUR (€)contracts | Nov. 14, 2014EUR (€)contracts | |
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Accumulated other comprehensive loss | $ (243,988) | $ (242,409) | ||||
Derivative Instruments, Loss Recognized in Other Comprehensive Income (Loss), Effective Portion | (3,031) | (839) | $ (581) | |||
Change in fair value of derivatives | (10,213) | 4,848 | 2,311 | |||
Currency Swap [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 4,848 | $ 2,311 | ||||
Currency Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (10,213) | |||||
Forward Contracts [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative, Number of Instruments Held | contracts | 0 | |||||
Interest rate swap [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative, Number of Instruments Held | contracts | 3 | 2 | ||||
Accumulated other comprehensive loss | $ (4,451) | $ (1,420) | ||||
Derivative Instruments, Loss Recognized in Other Comprehensive Income (Loss), Effective Portion | (5,447) | |||||
Interest Expense [Member] | Interest rate swap [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 2,416 | |||||
2018 Euro Term Loan [Member] | Interest rate swap [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative, Number of Instruments Held | contracts | 4 | |||||
2018 Euro Term Loan [Member] | Interest Rate Swap, Apr 5, 2016, 250,800,000 EUR [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative, Notional Amount | € | € 250,800 | |||||
Derivative, Fair Value, Net | (284) | |||||
2018 Euro Term Loan [Member] | Interest Rate Swap, Nov 14, 2014, 250,800,000 EUR [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative, Notional Amount | € | € 250,800 | |||||
Derivative, Fair Value, Net | (477) | |||||
2019 Euro Term Loan [Member] | Interest Rate Swap, Nov 10, 2015, 235,335,000 EUR [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative, Notional Amount | € | € 235,335 | |||||
Derivative, Fair Value, Net | (1,658) | |||||
2021 Euro Term Loan [Member] | Interest rate swap [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative, Number of Instruments Held | contracts | 5 | |||||
2021 Euro Term Loan [Member] | Interest Rate Swap, Apr 5, 2016, 468,800,000 EUR [Member] | ||||||
Fair Value, By Balance Sheet Grouping Disclosure Information [Line Items] | ||||||
Derivative, Notional Amount | € | € 468,800 | |||||
Derivative, Fair Value, Net | $ (1,711) |
INCOME TAXES Income Loss Before
INCOME TAXES Income Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic | $ (66,226) | $ (73,132) | $ (117,247) |
Foreign | (107,054) | (29,668) | (35,576) |
Loss before tax | $ (173,280) | $ (102,800) | $ (152,823) |
INCOME TAXES Expense Benefit (D
INCOME TAXES Expense Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current income tax provision: | |||
Domestic | $ 0 | $ 0 | $ 0 |
Foreign | (5,261) | (550) | (558) |
Total | (5,261) | (550) | (558) |
Deferred tax (provision) / credit: | |||
Domestic | 0 | 0 | 0 |
Foreign | (2,056) | 1,065 | 1,916 |
Total | (2,056) | 1,065 | 1,916 |
(Provision) / credit for income taxes | (7,317) | 515 | 1,358 |
Discontinued Operation, Tax Effect of Discontinued Operation | 0 | 91 | 1,987 |
Total (provision) / tax credit | $ (7,317) | $ 606 | $ 3,345 |
INCOME TAXES Effective Rate Rec
INCOME TAXES Effective Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Income taxes at Netherlands rates (25%) | $ 43,310 | $ 25,689 | $ 38,193 |
Jurisdictional differences in tax rates | (43,049) | (17,462) | (12,965) |
Unrecognized tax benefits | (925) | 0 | 0 |
Losses expired | (1,847) | (4,009) | (4,899) |
Change in valuation allowance | (5,863) | 3,614 | (7,012) |
Non-deductible expenses | (395) | (1,859) | (5,624) |
Other | 1,452 | (5,458) | (6,335) |
(Provision) / credit for income taxes | $ (7,317) | $ 515 | $ 1,358 |
INCOME TAXES Deferred Tax Asset
INCOME TAXES Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Assets: | |||
Tax benefit of loss carry-forwards and other tax credits | $ 112,585 | $ 111,526 | |
Programming rights | 2,935 | 4,052 | |
Property, plant and equipment | 3,427 | 4,427 | |
Accrued expenses | 4,699 | 4,544 | |
Other | 1,623 | 1,718 | |
Gross deferred tax assets | 125,269 | 126,267 | |
Valuation allowance | (110,920) | (109,481) | |
Net deferred tax assets | 14,349 | 16,786 | |
Liabilities: | |||
Broadcast licenses, trademarks and customer relationships | 22,704 | 24,897 | |
Property, plant and equipment | 142 | 173 | |
Programming rights | 7,182 | 7,082 | |
Other | 86 | 75 | |
Total deferred tax liabilities | 30,114 | 32,227 | |
Net deferred income tax liability | 15,765 | 15,441 | |
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Net non-current deferred tax liabilities | 20,335 | 25,990 | |
Net deferred income tax liability | 15,765 | 15,441 | |
Assets [Member] | |||
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Net current deferred tax assets | [1] | 0 | 10,425 |
Net non-current deferred tax assets | 4,570 | 124 | |
Net deferred tax assets | 4,570 | 10,549 | |
Liabilities, Total [Member] | |||
Liabilities: | |||
Net deferred income tax liability | 20,335 | 25,990 | |
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Net current deferred tax liabilities | [1] | 0 | 0 |
Net non-current deferred tax liabilities | 20,335 | 25,990 | |
Net deferred income tax liability | 20,335 | 25,990 | |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Assets: | |||
Valuation allowance | (110,920) | $ (109,481) | |
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Released due to changes in future profitability | $ (7,356) | ||
[1] | Reflects the prospective adoption in 2016 of accounting guidance requiring that deferred tax balances be classified as non-current in our consolidated balance sheets. See Note 2, "Basis of Presentation and Summary of Significant Accounting Policies". |
INCOME TAXES Valuation Allowanc
INCOME TAXES Valuation Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation Allowance [Line Items] | |||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 53 | $ 51 | |
Balance at December 31, 2015 | $ 109,481 | ||
Balance at December 31, 2016 | 110,920 | 109,481 | |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation Allowance [Line Items] | |||
Balance at December 31, 2015 | 109,481 | ||
Created during the period | 15,738 | ||
Released due to changes in future profitability | (7,356) | ||
Utilized | (2,519) | ||
Foreign exchange | (4,674) | ||
Balance at December 31, 2016 | 110,920 | $ 109,481 | |
Valuation Allowance Deferred Tax Asset Other | 250 | ||
BULGARIA | Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation Allowance [Line Items] | |||
Valuation Allowance, Reserve Reversal | 2,700 | ||
SLOVAKIA | Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation Allowance [Line Items] | |||
Valuation Allowance, Reserve Reversal | $ 7,100 |
INCOME TAXES Operating Loss Car
INCOME TAXES Operating Loss Carryforward (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Undistributed Earnings of Foreign Subsidiaries | $ 0 | $ 0 | $ 0 |
Year 2016 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 33,498,000 | ||
Year 2017 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 25,835,000 | ||
Year 2018 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 57,430,000 | ||
Year 2019 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 52,609,000 | ||
Year 2020 Through 2035 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 268,060,000 | ||
Thereafter [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 23,293,000 | ||
BULGARIA | Year 2016 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
BULGARIA | Year 2017 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
BULGARIA | Year 2018 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
BULGARIA | Year 2019 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 6,182,000 | ||
BULGARIA | Year 2020 Through 2035 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
BULGARIA | Thereafter [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
CZECH REPUBLIC | Year 2016 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 559,000 | ||
CZECH REPUBLIC | Year 2017 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 3,000 | ||
CZECH REPUBLIC | Year 2018 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
CZECH REPUBLIC | Year 2019 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
CZECH REPUBLIC | Year 2020 Through 2035 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
CZECH REPUBLIC | Thereafter [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
NETHERLANDS | Year 2016 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 27,190,000 | ||
NETHERLANDS | Year 2017 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 25,832,000 | ||
NETHERLANDS | Year 2018 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 57,430,000 | ||
NETHERLANDS | Year 2019 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 46,427,000 | ||
NETHERLANDS | Year 2020 Through 2035 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 268,060,000 | ||
NETHERLANDS | Thereafter [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
SLOVAKIA | Year 2016 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 5,749,000 | ||
SLOVAKIA | Year 2017 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
SLOVAKIA | Year 2018 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
SLOVAKIA | Year 2019 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
SLOVAKIA | Year 2020 Through 2035 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
SLOVAKIA | Thereafter [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Slovenia [Member] | Year 2016 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Slovenia [Member] | Year 2017 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Slovenia [Member] | Year 2018 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Slovenia [Member] | Year 2019 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Slovenia [Member] | Year 2020 Through 2035 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Slovenia [Member] | Thereafter [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 21,898,000 | ||
UNITED KINGDOM | Year 2016 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
UNITED KINGDOM | Year 2017 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
UNITED KINGDOM | Year 2018 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
UNITED KINGDOM | Year 2019 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
UNITED KINGDOM | Year 2020 Through 2035 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
UNITED KINGDOM | Thereafter [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 1,395,000 | ||
Minimum [Member] | UNITED KINGDOM | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Year under Examination | 2,015 | ||
Minimum [Member] | Slovenia [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Year under Examination | 2,008 | ||
Minimum [Member] | SLOVAKIA | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Year under Examination | 2,010 | ||
Minimum [Member] | ROMANIA | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Year under Examination | 2,014 | ||
Minimum [Member] | NETHERLANDS | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Year under Examination | 2,014 | ||
Minimum [Member] | CZECH REPUBLIC | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Year under Examination | 2,011 | ||
Minimum [Member] | CROATIA | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Year under Examination | 2,012 | ||
Minimum [Member] | BULGARIA | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Year under Examination | 2,010 |
INCOME TAXES Unrocognized Tax B
INCOME TAXES Unrocognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 0 | $ 53,000 | $ 108,000 |
Decreases resulting from the expiry of the statute of limitations | (53,000) | (51,000) | |
Increases for tax positions taken during a prior period | 766,000 | ||
Increases for tax positions taken during the current period | 159,000 | ||
Decreases resulting from the expiry of the statute of limitations | (4,000) | ||
Unrecognized tax benefits, ending balance | 925,000 | 0 | 53,000 |
Accrued interest and penalties | 0 | 0 | 0 |
Undistributed Earnings of Foreign Subsidiaries | $ 0 | $ 0 | $ 0 |
INCOME TAXES Jurisdictions (Det
INCOME TAXES Jurisdictions (Details) - Minimum [Member] | 12 Months Ended |
Dec. 31, 2016 | |
BULGARIA | |
Income Tax Examination, Year under Examination | 2,010 |
CROATIA | |
Income Tax Examination, Year under Examination | 2,012 |
CZECH REPUBLIC | |
Income Tax Examination, Year under Examination | 2,011 |
THE NETHERLANDS [Member] | |
Income Tax Examination, Year under Examination | 2,014 |
ROMANIA | |
Income Tax Examination, Year under Examination | 2,014 |
Slovak Republic [Member] | |
Income Tax Examination, Year under Examination | 2,010 |
Slovenia [Member] | |
Income Tax Examination, Year under Examination | 2,008 |
UNITED KINGDOM [Member] | |
Income Tax Examination, Year under Examination | 2,015 |
INTEREST EXPENSE (Details)
INTEREST EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Paid | $ 53,982 | $ 18,457 | $ 76,154 |
Interest expense, debt | 110,127 | 114,730 | 104,570 |
Amortization of capitalized debt issuance costs | 9,152 | 15,484 | 18,297 |
Amortization of debt issuance discount | 12,945 | 41,230 | 19,138 |
Total interest expense | 132,224 | 171,444 | 142,005 |
Guarantee Fee that may be paid in kind [Member] | |||
Cash paid for Guarantee Fees that may be paid in kind | 37,440 | ||
Guarantee Fee [Member] | |||
Interest expense, debt | 68,000 | 21,500 | 1,200 |
Cash paid for Guarantee Fees that may be paid in kind | $ 48,600 | $ 0 | $ 0 |
OTHER NON-OPERATING EXPENSE (De
OTHER NON-OPERATING EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment Income, Interest | $ 592 | $ 440 | $ 294 |
Foreign currency exchange (gain) / loss, net | 6,648 | (13,481) | (12,767) |
Gain (Loss) on Derivative Instruments, Net, Pretax | (10,213) | 4,848 | 2,311 |
Non-operating income / (expense), net | 486 | (17,746) | 267 |
Nonoperating Income (Expense) | $ (2,487) | $ (25,939) | $ (9,895) |
STOCK-BASED COMPENSATION Operat
STOCK-BASED COMPENSATION Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation charged | $ 3.5 | $ 2.4 | $ 1.3 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.6075% | 1.86% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 3 months 1 day | 6 years 3 months 1 day | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 69.22% | 75.18% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% |
STOCK-BASED COMPENSATION Stock
STOCK-BASED COMPENSATION Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares Authorized | 6,000,000 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.6075% | 1.86% | |
Shares: | |||
Outstanding at beginning of year | 1,666,000 | 155,000 | 390,500 |
Granted | 411,392 | 1,600,000 | 0 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 2.46 | $ 2.29 | $ 0 |
Forfeited | 0 | (20,000) | (114,500) |
Expired | (66,000) | (69,000) | (121,000) |
Outstanding at end of year | 2,011,392 | 1,666,000 | 155,000 |
Vested or expected to vest | 2,011,392 | ||
Exercisable at end of period | 400,000 | ||
Weighted Average Exercise Price per Share: | |||
Outstanding at beginning of period | $ 3.53 | $ 29.88 | $ 27.26 |
Forfeited | 0 | 23.12 | 30.87 |
Expired | 33.66 | 28.23 | 20.48 |
Oustanding at end of period | 2.32 | $ 3.53 | $ 29.88 |
Vested or expected to vest | 2.32 | ||
Exercisable at end of period | $ 2.29 | ||
Weighted Average Remaining Contractual Term (years), outstanding | 8 years 6 months 29 days | 9 years 25 days | |
Weighted Average Remaining Contractual Term (years), Vested or expected to vest | 8 years 6 months 29 days | ||
Weighted Average Remaining Contractual Term (years), exercisable | 8 years 5 months 1 day | ||
Aggregate Intrinsic Value, outstanding | $ 453 | $ 640 | |
Aggregate Intrinsic Value, Vested or expected to vest | 453 | ||
Aggregate Intrinsic Value, exercisable | $ 104 | ||
Maximum life of issued options | 10 years | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 7 months 10 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 3 months 1 day | 6 years 3 months 1 day | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 69.22% | 75.18% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | $ 1.56 | $ 1.54 | |
Restricted Stock Units (RSUs) [Member] | |||
Weighted Average Exercise Price per Share: | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,900 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 25 days | ||
Minimum [Member] | Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Maximum [Member] | Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years |
STOCK-BASED COMPENSATION Restri
STOCK-BASED COMPENSATION Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Number of Shares/Units: | |
Unvested at December 31, 2015 | shares | 2,554,597 |
Granted | shares | 705,166 |
Vested | shares | (626,126) |
Forfeited | shares | (91,012) |
Unvested at December 31, 2016 | shares | 2,542,625 |
Weighted-Average Grant Date Fair Value: | |
Unvested at December 31, 2015 | $ / shares | $ 2.72 |
Granted | $ / shares | 2.41 |
Vested | $ / shares | 2.83 |
Forfeited | $ / shares | 2.47 |
Unvested at December 31, 2016 | $ / shares | $ 2.61 |
Intrinsic value | $ | $ 6.5 |
Unrecognized compensation expense | $ | $ 2.9 |
Compensation cost not yet recognized, period for recognition | 1 year 10 months 25 days |
Minimum [Member] | |
Weighted-Average Grant Date Fair Value: | |
Award vesting period | 1 year |
Maximum [Member] | |
Weighted-Average Grant Date Fair Value: | |
Award vesting period | 4 years |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $ 21,169 | $ (19,823) | $ (141,249) | $ (40,694) | $ 1,137 | $ (21,510) | $ (11,669) | $ (70,243) | $ (180,597) | $ (102,285) | $ (151,465) | |
Net Income (Loss) Attributable to Noncontrolling Interest | (306) | (671) | (4,468) | |||||||||
Preferred Stock Dividends and Other Adjustments | (13,701) | (17,272) | (16,036) | |||||||||
Income Loss From Continuing Operations Available to Common Shareholders, Net of Noncontrolling Interest, Basic | (193,992) | (118,886) | (163,033) | |||||||||
Loss from discontinued operations, net of tax | $ (12,418) | $ (265) | $ 2,684 | $ (3,288) | 0 | (13,287) | (80,431) | |||||
Net Income (Loss) Available to Common Stockholders, Basic | (193,992) | (132,173) | (243,464) | |||||||||
Other Preferred Stock Dividends and Adjustments | 0 | 0 | 0 | |||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ (193,992) | $ (132,173) | $ (243,464) | |||||||||
Weighted average outstanding shares of common stock - basic (in shares) | [1] | 151,017,000 | 146,866,000 | 146,509,000 | ||||||||
Dilutive effect of employee stock options and RSUs (in shares) | 0 | 0 | 0 | |||||||||
Weighted average outstanding shares of common stock - diluted (in shares) | 151,017,000 | 146,866,000 | 146,509,000 | |||||||||
Net loss per share: | ||||||||||||
Continuing operations - Basic (in dollars per share) | $ (1.28) | $ (0.81) | $ (1.11) | |||||||||
Continuing operations - Diluted (in dollars per share) | (1.28) | (0.81) | (1.11) | |||||||||
Discontinued operations – Basic (in dollars per share) | 0 | (0.09) | (0.55) | |||||||||
Discontinued operations - Diluted (in dollars per share) | 0 | (0.09) | (0.55) | |||||||||
Earnings Per Share, Basic | $ 0.07 | $ (0.14) | $ (0.98) | $ (0.31) | $ (0.11) | $ (0.18) | $ (0.09) | $ (0.53) | (1.28) | (0.90) | (1.66) | |
Diluted (in dollars per share) | $ 0.06 | $ (0.14) | $ (0.98) | $ (0.31) | $ (0.11) | $ (0.18) | $ (0.09) | $ (0.53) | $ (1.28) | $ (0.90) | $ (1.66) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 108,396,778 | 3,221,575 | ||||||||||
Common Class A [Member] | T W Investor [Member] | ||||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 11,211,449 | 11,211,449 | 11,211,449 | |||||||||
[1] | For the purpose of computing basic earnings per share, the 11,211,449 shares of Class A common stock underlying the Series A Preferred Share are included in the weighted average outstanding shares of common stock - basic, because the holder of the Series A Preferred Share is entitled to receive any dividends payable when dividends are declared by the Board of Directors with respect to any shares of the common stock. |
SEGMENT DATA Net Revenue and OI
SEGMENT DATA Net Revenue and OIBDA (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)operatingsegments | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | $ 207,101 | $ 126,706 | $ 175,206 | $ 129,000 | $ 195,552 | $ 117,322 | $ 166,834 | $ 126,133 | $ 638,013 | $ 605,841 | $ 680,793 | |||
Total OIBDA: | 150,049 | 122,815 | 95,446 | |||||||||||
Other Items | 0 | [1] | (11,982) | [1] | 11,982 | |||||||||
Operating Income (Loss) | $ 51,551 | $ 8,384 | $ 43,891 | $ 7,763 | $ 46,528 | $ 28,853 | $ 36,441 | $ (17,239) | 111,589 | 94,583 | 38,280 | |||
Nonoperating Income (Expense) | (2,487) | (25,939) | (9,895) | |||||||||||
Loss before tax | (173,280) | (102,800) | (152,823) | |||||||||||
BULGARIA | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 72,651 | 73,090 | 87,078 | |||||||||||
Total OIBDA: | 12,242 | 15,479 | 9,367 | |||||||||||
CROATIA | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 55,607 | 55,912 | 62,026 | |||||||||||
Total OIBDA: | 8,578 | 7,880 | 7,835 | |||||||||||
CZECH REPUBLIC | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 190,372 | 182,636 | 202,779 | |||||||||||
Total OIBDA: | 77,018 | 71,697 | 61,964 | |||||||||||
ROMANIA | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 172,951 | 157,578 | 178,614 | |||||||||||
Total OIBDA: | 62,016 | 41,176 | 37,259 | |||||||||||
Slovak Republic [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 90,549 | 84,434 | 90,556 | |||||||||||
Total OIBDA: | 15,947 | 10,585 | 4,586 | |||||||||||
Slovenia [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 56,912 | 54,233 | 61,370 | |||||||||||
Total OIBDA: | $ 4,801 | 6,057 | 5,331 | |||||||||||
Total operating segments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Number of Operating Segments | operatingsegments | 6 | |||||||||||||
Total OIBDA: | $ 180,604 | 152,645 | 126,326 | |||||||||||
Corporate [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total OIBDA: | (30,555) | (29,830) | (30,880) | |||||||||||
Intersegment Eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | [2] | (1,029) | (2,042) | (1,630) | ||||||||||
Total OIBDA: | $ 2 | $ (229) | $ (16) | |||||||||||
[1] | (1) Other items consists solely of the charges related to tax audits of our Romanian operations, which were accrued in the fourth quarter of 2014 and fully released in the third quarter of 2015. | |||||||||||||
[2] | Reflects revenues earned from the sale of content to other country segments in CME Ltd. All other revenues are third party revenues. |
SEGMENT DATA Reconciliation (De
SEGMENT DATA Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Segment Reporting [Abstract] | |||||||||||||
Total OIBDA: | $ 150,049 | $ 122,815 | $ 95,446 | ||||||||||
Depreciation of property, plant and equipment | (30,190) | (27,943) | (32,836) | ||||||||||
Amortization of broadcast licenses and other intangibles | (8,270) | (12,271) | (12,348) | ||||||||||
Other Items | 0 | [1] | 11,982 | [1] | (11,982) | ||||||||
Operating income | $ 51,551 | $ 8,384 | $ 43,891 | $ 7,763 | $ 46,528 | $ 28,853 | $ 36,441 | $ (17,239) | 111,589 | 94,583 | 38,280 | ||
Interest Expense | (132,224) | (171,444) | (142,005) | ||||||||||
Loss on extinguishment of debt (Note 4) | (150,158) | 0 | (39,203) | ||||||||||
Nonoperating Income (Expense) | (2,487) | (25,939) | (9,895) | ||||||||||
Credit / (provision) for income taxes | $ (7,317) | $ 515 | $ 1,358 | ||||||||||
[1] | (1) Other items consists solely of the charges related to tax audits of our Romanian operations, which were accrued in the fourth quarter of 2014 and fully released in the third quarter of 2015. |
SEGMENT DATA Total Assets (Deta
SEGMENT DATA Total Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 1,390,717 | $ 1,440,417 |
BULGARIA | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 130,873 | 134,418 |
CROATIA | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 49,135 | 52,306 |
CZECH REPUBLIC | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 700,190 | 746,269 |
ROMANIA | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 266,132 | 261,984 |
Slovak Republic [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 131,220 | 121,122 |
Slovenia [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 72,381 | 70,911 |
Total operating segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | 1,349,931 | 1,387,010 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | [1] | $ 40,786 | $ 53,407 |
[1] | Segment assets exclude any intercompany balances. |
SEGMENT DATA Capital Expenditur
SEGMENT DATA Capital Expenditure (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 29,567 | $ 33,517 | $ 28,685 |
BULGARIA | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 3,304 | 3,517 | 2,627 |
CROATIA | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 2,593 | 3,215 | 2,701 |
CZECH REPUBLIC | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 8,043 | 10,982 | 9,139 |
ROMANIA | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 6,863 | 5,794 | 4,686 |
Slovak Republic [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 1,693 | 2,921 | 2,240 |
Slovenia [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 4,128 | 3,197 | 3,502 |
Total operating segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 26,624 | 29,626 | 24,895 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 2,943 | $ 3,891 | $ 3,790 |
SEGMENT DATA Long Lived Assets
SEGMENT DATA Long Lived Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Segment Reporting Information [Line Items] | ||||||
Assets | [1] | $ 1,390,717 | $ 1,440,417 | |||
Long-lived assets | 109,089 | [2] | 108,522 | [2] | $ 114,335 | |
BULGARIA | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [1] | 130,873 | 134,418 | |||
Long-lived assets | [2] | 6,280 | 5,602 | |||
CROATIA | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [1] | 49,135 | 52,306 | |||
Long-lived assets | [2] | 5,832 | 5,497 | |||
CZECH REPUBLIC | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [1] | 700,190 | 746,269 | |||
Long-lived assets | [2] | 39,529 | 39,907 | |||
ROMANIA | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [1] | 266,132 | 261,984 | |||
Long-lived assets | [2] | 22,796 | 20,873 | |||
Slovak Republic [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [1] | 131,220 | 121,122 | |||
Long-lived assets | [2] | 15,326 | 15,606 | |||
Slovenia [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [1] | 72,381 | 70,911 | |||
Long-lived assets | [2] | 14,177 | 15,082 | |||
Total operating segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [1] | 1,349,931 | 1,387,010 | |||
Long-lived assets | [2] | 103,940 | 102,567 | |||
Corporate [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | [1] | 40,786 | 53,407 | |||
Long-lived assets | [2] | $ 5,149 | $ 5,955 | |||
[1] | Segment assets exclude any intercompany balances. | |||||
[2] | Reflects property, plant and equipment. |
SEGMENT DATA Revenues (Details)
SEGMENT DATA Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | |||||||||||
Television advertising | $ 532,600 | $ 505,498 | $ 565,601 | ||||||||
Carriage fees and subscriptions | 78,606 | 73,058 | 80,487 | ||||||||
Other | 26,807 | 27,285 | 34,705 | ||||||||
Total net revenues | $ 207,101 | $ 126,706 | $ 175,206 | $ 129,000 | $ 195,552 | $ 117,322 | $ 166,834 | $ 126,133 | $ 638,013 | $ 605,841 | $ 680,793 |
COMMITMENTS AND CONTINGENCIES O
COMMITMENTS AND CONTINGENCIES Operating Lease Payments (Details) $ in Thousands, CZK in Millions | Dec. 31, 2016CZK | Dec. 31, 2016USD ($) | Dec. 31, 2015CZK | Dec. 31, 2015USD ($) | |
Long-term Purchase Commitment [Line Items] | |||||
Long-term Line of Credit | [1],[2],[3] | $ 0 | $ 0 | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||
2,015 | 3,374 | ||||
2,016 | 2,077 | ||||
2,017 | 923 | ||||
2,018 | 476 | ||||
2,019 | 327 | ||||
2020 and thereafter | 1,433 | ||||
Total | 8,610 | ||||
Purchase Commitment [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
2,015 | 43,462 | ||||
2,016 | 34,889 | ||||
2,017 | 32,074 | ||||
2,018 | 14,003 | ||||
2,019 | 1,503 | ||||
2020 and thereafter | 2,281 | ||||
Total | 128,212 | 144,900 | |||
Transmission Service Agreement [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
2,015 | 17,545 | ||||
2,016 | 5,157 | ||||
2,017 | 10,851 | ||||
2,018 | 356 | ||||
2,019 | 322 | ||||
2020 and thereafter | 44 | ||||
Total | 34,275 | ||||
Machinery and Equipment [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
2,015 | 609 | ||||
2,016 | 0 | ||||
2,017 | 0 | ||||
2,018 | 0 | ||||
2,019 | 0 | ||||
2020 and thereafter | 0 | ||||
Total | 609 | ||||
Factoring Agreement [Member] | CZECH REPUBLIC | |||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||
Receivables Pledged As Collateral Related To Factoring Agreement | CZK 462.9 | $ 18,100 | CZK 478.9 | $ 18,700 | |
[1] | As at December 31, 2016 and December 31, 2015, there were no drawings outstanding under a CZK 735.0 million (approximately US$ 28.7 million) factoring framework agreement with Factoring Ceska Sporitelna (“FCS”). Under this facility, up to CZK 735.0 million (approximately US$ 28.7 million) of receivables from certain customers in the Czech Republic may be factored on a recourse or non-recourse basis. The facility has a factoring fee of 0.3% of any factored receivable and bears interest at one-month PRIBOR plus 2.5% per annum for the period that receivables are factored and outstanding. | ||||
[2] | As at December 31, 2016 there were RON 105.7 million (approximately US$ 24.6 million) of receivables factored under a factoring framework agreement with Global Funds IFN S.A. entered into in the first quarter of 2016. Under this facility, receivables from certain customers in Romania may be factored on a non-recourse basis. The facility has a factoring fee of 4.0% of any factored receivable and bears interest at 6.0% per annum from the date the receivables are factored to the due date of the factored receivable. | ||||
[3] | We have a cash pooling arrangement with Bank Mendes Gans (“BMG”), a subsidiary of ING Bank N.V. (“ING”), which enables us to receive credit across the group in respect of cash balances which our subsidiaries deposit with BMG. Cash deposited by our subsidiaries with BMG is pledged as security against the drawings of other subsidiaries up to the amount deposited.As at December 31, 2016, we had deposits of US$ 16.4 million in and no drawings on the BMG cash pool. Interest is earned on deposits at the relevant money market rate. As at December 31, 2015, we had deposits of US$ 19.6 million in and no drawings on the BMG cash pool. |
COMMITMENTS AND CONTINGENCIES P
COMMITMENTS AND CONTINGENCIES Programming Rights Agreements and Other Commitments (Details) $ in Thousands, RON in Millions, CZK in Millions | 12 Months Ended | ||||||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016CZK | Dec. 31, 2016USD ($) | Dec. 31, 2016RON | ||
Long-term Purchase Commitment [Line Items] | |||||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 3,374 | ||||||
Operating Leases, Future Minimum Payments, Due in Two Years | 2,077 | ||||||
Operating Leases, Future Minimum Payments Due | 8,610 | ||||||
Rent expense | $ 9,400 | $ 7,800 | $ 10,000 | ||||
Long-term Line of Credit | [1],[2],[3] | 0 | $ 0 | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | 100.00% | ||||
Operating Leases, Future Minimum Payments, Due in Three Years | $ 923 | ||||||
Operating Leases, Future Minimum Payments, Due in Four Years | 476 | ||||||
Operating Leases, Future Minimum Payments, Due in Five Years | 327 | ||||||
Operating Leases, Future Minimum Payments, Due Thereafter | 1,433 | ||||||
Machinery and Equipment [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 609 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 0 | ||||||
Total commitments | 609 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 0 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 0 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 0 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 0 | ||||||
Purchase Commitment [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 43,462 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 34,889 | ||||||
Total commitments | $ 144,900 | 128,212 | |||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 32,074 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 14,003 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 1,503 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 2,281 | ||||||
Transmission Service Agreement [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 17,545 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 5,157 | ||||||
Total commitments | 34,275 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 10,851 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 356 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 322 | ||||||
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 44 | ||||||
CET 21 [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Line of credit, maximum borrowing capacity | CZK 735 | $ 28,700 | |||||
ROMANIA | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | 100.00% | ||||
BULGARIA | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | 94.00% | 94.00% | 94.00% | ||||
Pro TV [Member] | Global Funds IFN S.A. [Member] | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 25,300 | RON 109 | |||||
Long-term Line of Credit | $ 24,600 | RON 105.7 | |||||
[1] | As at December 31, 2016 and December 31, 2015, there were no drawings outstanding under a CZK 735.0 million (approximately US$ 28.7 million) factoring framework agreement with Factoring Ceska Sporitelna (“FCS”). Under this facility, up to CZK 735.0 million (approximately US$ 28.7 million) of receivables from certain customers in the Czech Republic may be factored on a recourse or non-recourse basis. The facility has a factoring fee of 0.3% of any factored receivable and bears interest at one-month PRIBOR plus 2.5% per annum for the period that receivables are factored and outstanding. | ||||||
[2] | As at December 31, 2016 there were RON 105.7 million (approximately US$ 24.6 million) of receivables factored under a factoring framework agreement with Global Funds IFN S.A. entered into in the first quarter of 2016. Under this facility, receivables from certain customers in Romania may be factored on a non-recourse basis. The facility has a factoring fee of 4.0% of any factored receivable and bears interest at 6.0% per annum from the date the receivables are factored to the due date of the factored receivable. | ||||||
[3] | We have a cash pooling arrangement with Bank Mendes Gans (“BMG”), a subsidiary of ING Bank N.V. (“ING”), which enables us to receive credit across the group in respect of cash balances which our subsidiaries deposit with BMG. Cash deposited by our subsidiaries with BMG is pledged as security against the drawings of other subsidiaries up to the amount deposited.As at December 31, 2016, we had deposits of US$ 16.4 million in and no drawings on the BMG cash pool. Interest is earned on deposits at the relevant money market rate. As at December 31, 2015, we had deposits of US$ 19.6 million in and no drawings on the BMG cash pool. |
COMMITMENTS AND CONTINGENCIES L
COMMITMENTS AND CONTINGENCIES Litigation (Details) - SLOVAKIA $ in Millions | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Loss Contingency, Pending Claims, Number | 4 |
Loss Contingency, Range of Possible Loss, Maximum | $ 69 |
Loss Contingency, Claims Dismissed, Number | 1 |
Loss Contingency, Claims Dismissed, Value | $ 26 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Related party programming liabilities | $ 18,959 | $ 14,583 | ||
Related party accounts payable | 192 | 53 | ||
Accrued interest payable (1) | 9,588 | 477 | ||
Other non-current liabilities (Note 10) | $ 68,758 | 65,749 | ||
Time Warner [Member] | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage, related party | 47.00% | |||
Net revenues | $ 0 | 198 | $ 59 | |
Cost of revenues | 25,445 | 32,497 | 20,713 | |
Interest expense | 108,205 | 127,970 | $ 61,887 | |
Related party programming liabilities | 18,959 | 14,583 | ||
Related party accounts payable | 192 | 53 | ||
Long-term debt and other financing arrangements | 0 | 324,979 | ||
Accrued interest payable (1) | [1] | 9,588 | 5,781 | |
Other non-current liabilities (Note 10) | [2] | $ 44,397 | $ 31,895 | |
[1] | (1) Amount represents accrued Guarantee Fees for which we have not yet paid in cash or made an election to pay in kind. See Note 4, "Long-term Debt and Other Financing Arrangements". | |||
[2] | (2) Amount represents the Commitment Fee, as well as the Guarantee Fees for which we have made an election to pay in kind. See Note 4, "Long-term Debt and Other Financing Arrangements". |
QUARTERLY FINANCIAL DATA (Detai
QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net revenues | $ 207,101 | $ 126,706 | $ 175,206 | $ 129,000 | $ 195,552 | $ 117,322 | $ 166,834 | $ 126,133 | $ 638,013 | $ 605,841 | $ 680,793 |
Cost of revenues | 119,946 | 91,141 | 104,962 | 97,777 | 116,654 | 85,832 | 101,229 | 98,828 | 413,826 | 402,543 | 489,041 |
Operating income | 51,551 | 8,384 | 43,891 | 7,763 | 46,528 | 28,853 | 36,441 | (17,239) | 111,589 | 94,583 | 38,280 |
Net (loss) / income | 21,169 | (19,823) | (141,249) | (40,694) | 1,137 | (21,510) | (11,669) | (70,243) | (180,597) | (102,285) | (151,465) |
Loss from discontinued operations, net of tax | (12,418) | (265) | 2,684 | (3,288) | 0 | (13,287) | (80,431) | ||||
Net loss | 21,169 | (19,823) | (141,249) | (40,694) | (11,281) | (21,775) | (8,985) | (73,531) | (180,597) | (115,572) | (231,896) |
Net (loss) / income attributable to CME Ltd. | $ 21,088 | $ (19,627) | $ (141,317) | $ (40,435) | $ (11,427) | $ (21,522) | $ (8,678) | $ (73,274) | $ (180,291) | $ (114,901) | $ (227,428) |
Net (loss) / income per share: | |||||||||||
Basic EPS (in dollars per share) | $ 0.07 | $ (0.14) | $ (0.98) | $ (0.31) | $ (0.11) | $ (0.18) | $ (0.09) | $ (0.53) | $ (1.28) | $ (0.90) | $ (1.66) |
Effect of dilutive securities (in dollars per share) | (0.01) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Diluted (in dollars per share) | $ 0.06 | $ (0.14) | $ (0.98) | $ (0.31) | $ (0.11) | $ (0.18) | $ (0.09) | $ (0.53) | $ (1.28) | $ (0.90) | $ (1.66) |