falsedesktopAMCX2020-09-30000151499120000046{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Class A Common Stock par value $0.01 per share\t29754780\nClass B Common Stock par value $0.01 per share\t11484408\n", "q10k_tbl_1": "\tPage\nPART I. FINANCIAL INFORMATION\t\nItem 1. Financial Statements (unaudited)\t\nCondensed Consolidated Balance Sheets\t1\nCondensed Consolidated Statements of Income\t2\nCondensed Consolidated Statements of Comprehensive Income\t3\nCondensed Consolidated Statements of Stockholders' Equity\t4\nCondensed Consolidated Statements of Cash Flows\t6\nNotes to Condensed Consolidated Financial Statements\t7\nItem 2. Management's Discussion and Analysis of Financial Condition and Results of Operations\t25\nItem 3. Quantitative and Qualitative Disclosures About Market Risk\t46\nItem 4. Controls and Procedures\t47\nPART II. OTHER INFORMATION\t\nItem 1. Legal Proceedings\t48\nItem 1A. Risk Factors\t48\nItem 2. Unregistered Sales of Equity Securities and Use of Proceeds\t48\nItem 6. Exhibits\t49\nSIGNATURES\t50\n", "q10k_tbl_2": "\tSeptember 30 2020\tDecember 31 2019\nASSETS\t\t\nCurrent Assets:\t\t\nCash and cash equivalents\t1071860\t816170\nAccounts receivable trade (less allowance for doubtful accounts of $9345 and $5733)\t768506\t857143\nCurrent portion of program rights net\t17933\t426624\nPrepaid expenses and other current assets\t174682\t230360\nTotal current assets\t2032981\t2330297\nProperty and equipment net of accumulated depreciation of $254312 and $347302\t255729\t283752\nProgram rights net\t1336612\t1038060\nIntangible assets net\t417778\t524531\nGoodwill\t673810\t701980\nDeferred tax asset net\t39778\t51545\nOperating lease right-of-use asset\t151801\t170056\nOther assets\t477938\t496465\nTotal assets\t5386427\t5596686\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\nCurrent Liabilities:\t\t\nAccounts payable\t80967\t94306\nAccrued liabilities\t281023\t251214\nCurrent portion of program rights obligations\t302061\t304692\nDeferred revenue\t61557\t63921\nCurrent portion of long-term debt\t76000\t56250\nCurrent portion of lease obligations\t33519\t33959\nTotal current liabilities\t835127\t804342\nProgram rights obligations\t198197\t239813\nLong-term debt\t2791091\t3039979\nLease obligations\t209549\t211047\nDeferred tax liability net\t135476\t136911\nOther liabilities\t130244\t163638\nTotal liabilities\t4299684\t4595730\nCommitments and contingencies\t\t\nRedeemable noncontrolling interests\t314397\t309451\nStockholders' equity:\t\t\nClass A Common Stock $0.01 par value 360000 shares authorized 63348 and 63886 shares issued and 40557 and 44078 shares outstanding respectively\t643\t639\nClass B Common Stock $0.01 par value 90000 shares authorized 11484 shares issued and outstanding\t115\t115\nPreferred stock $0.01 par value 45000 shares authorized; none issued\t0\t0\nPaid-in capital\t320681\t286491\nAccumulated earnings\t1752740\t1609428\nTreasury stock at cost (23790 and 19808 shares Class A Common Stock respectively)\t(1166119)\t(1063181)\nAccumulated other comprehensive loss\t(160457)\t(167711)\nTotal AMC Networks stockholders' equity\t747603\t665781\nNon-redeemable noncontrolling interests\t24743\t25724\nTotal stockholders' equity\t772346\t691505\nTotal liabilities and stockholders' equity\t5386427\t5596686\n", "q10k_tbl_3": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nRevenues net\t654015\t718597\t2034681\t2275117\nOperating expenses:\t\t\t\t\nTechnical and operating (excluding depreciation and amortization)\t333816\t354992\t960379\t1080763\nSelling general and administrative\t148769\t159357\t488581\t505233\nDepreciation and amortization\t27547\t25619\t80182\t75568\nImpairment charges\t0\t0\t130411\t0\nRestructuring and other related charges\t4406\t10191\t13879\t29995\nTotal operating expenses\t514538\t550159\t1673432\t1691559\nOperating income\t139477\t168438\t361249\t583558\nOther income (expense):\t\t\t\t\nInterest expense\t(33418)\t(39621)\t(105283)\t(118982)\nInterest income\t2994\t4626\t11276\t13571\nLoss on extinguishment of debt\t0\t0\t(2908)\t0\nMiscellaneous net\t11138\t(1490)\t(10088)\t(16972)\nTotal other (expense) income\t(19286)\t(36485)\t(107003)\t(122383)\nIncome from operations before income taxes\t120191\t131953\t254246\t461175\nIncome tax expense\t(52195)\t(8727)\t(95490)\t(53807)\nNet income including noncontrolling interests\t67996\t123226\t158756\t407368\nNet income attributable to noncontrolling interests\t(6356)\t(6303)\t(13488)\t(18305)\nNet income attributable to AMC Networks' stockholders\t61640\t116923\t145268\t389063\nNet income per share attributable to AMC Networks' stockholders:\t\t\t\t\nBasic\t1.18\t2.09\t2.72\t6.91\nDiluted\t1.17\t2.07\t2.69\t6.80\nWeighted average common shares:\t\t\t\t\nBasic\t52346\t55847\t53374\t56339\nDiluted\t52904\t56605\t53917\t57218\n", "q10k_tbl_4": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet income including noncontrolling interests\t67996\t123226\t158756\t407368\nOther comprehensive income (loss):\t\t\t\t\nForeign currency translation adjustment\t21475\t(33281)\t7383\t(38490)\nUnrealized gain (loss) on interest rate swaps\t615\t(187)\t(1041)\t(2076)\nOther comprehensive income (loss) before income taxes\t22090\t(33468)\t6342\t(40566)\nIncome tax (expense) benefit\t(144)\t335\t242\t483\nOther comprehensive income (loss) net of income taxes\t21946\t(33133)\t6584\t(40083)\nComprehensive income\t89942\t90093\t165340\t367285\nComprehensive income attributable to noncontrolling interests\t(6648)\t(5217)\t(12818)\t(17048)\nComprehensive income attributable to AMC Networks' stockholders\t83294\t84876\t152522\t350237\n", "q10k_tbl_5": "\tClass A Common Stock\tClass B Common Stock\tPaid-in Capital\tAccumulated Earnings\tTreasury Stock\tAccumulated Other Comprehensive Loss\tAMC Networks Stockholders' Equity\tNoncontrolling Interests\tTotal Stockholders' Equity\nBalance June 30 2020\t643\t115\t308288\t1691100\t(1166119)\t(182111)\t651916\t23229\t675145\nNet income attributable to AMC Networks' stockholders\t0\t0\t0\t61640\t0\t0\t61640\t0\t61640\nNet income attributable to non-redeemable noncontrolling interests\t0\t0\t0\t0\t0\t0\t0\t1785\t1785\nDistributions to noncontrolling member\t0\t0\t0\t0\t0\t0\t0\t(563)\t(563)\nOther comprehensive income\t0\t0\t0\t0\t0\t21654\t21654\t292\t21946\nShare-based compensation expense\t0\t0\t12393\t0\t0\t0\t12393\t0\t12393\nBalance September 30 2020\t643\t115\t320681\t1752740\t(1166119)\t(160457)\t747603\t24743\t772346\n", "q10k_tbl_6": "\tClass A Common Stock\tClass B Common Stock\tPaid-in Capital\tAccumulated Earnings\tTreasury Stock\tAccumulated Other Comprehensive Loss\tAMC Networks Stockholders' Equity\tNoncontrolling Interests\tTotal Stockholders' Equity\nBalance December 31 2019\t639\t115\t286491\t1609428\t(1063181)\t(167711)\t665781\t25724\t691505\nNet income attributable to AMC Networks' stockholders\t0\t0\t0\t145268\t0\t0\t145268\t0\t145268\nNet income attributable to non-redeemable noncontrolling interests\t0\t0\t0\t0\t0\t0\t0\t700\t700\nAdoption of ASU 2016-13 credit losses\t0\t0\t0\t(1956)\t0\t0\t(1956)\t0\t(1956)\nDistributions to noncontrolling member\t0\t0\t0\t0\t0\t0\t0\t(1011)\t(1011)\nOther comprehensive income (loss)\t0\t0\t0\t0\t0\t7254\t7254\t(670)\t6584\nShare-based compensation expense\t0\t0\t43141\t0\t0\t0\t43141\t0\t43141\nTreasury stock acquired\t0\t0\t0\t0\t(102938)\t0\t(102938)\t0\t(102938)\nRestricted stock units converted to shares\t4\t0\t(8951)\t0\t0\t0\t(8947)\t0\t(8947)\nBalance September 30 2020\t643\t115\t320681\t1752740\t(1166119)\t(160457)\t747603\t24743\t772346\n", "q10k_tbl_7": "\tClass A Common Stock\tClass B Common Stock\tPaid-in Capital\tAccumulated Earnings\tTreasury Stock\tAccumulated Other Comprehensive Loss\tAMC Networks Stockholders' Equity\tNoncontrolling Interests\tTotal Stockholders' Equity\nBalance June 30 2019\t639\t115\t258150\t1501082\t(1051022)\t(167144)\t541820\t26693\t568513\nNet income attributable to AMC Networks' stockholders\t0\t0\t0\t116923\t0\t0\t116923\t0\t116923\nNet income attributable to non-redeemable noncontrolling interests\t0\t0\t0\t0\t0\t0\t0\t1772\t1772\nDistributions to noncontrolling member\t0\t0\t0\t0\t0\t0\t0\t(705)\t(705)\nSettlement of treasury stock\t0\t0\t832\t0\t0\t0\t832\t0\t832\nOther comprehensive loss\t0\t0\t0\t0\t0\t(33133)\t(33133)\t(1085)\t(34218)\nShare-based compensation expense\t0\t0\t13841\t0\t0\t0\t13841\t0\t13841\nTreasury stock acquired\t0\t0\t0\t0\t(12159)\t0\t(12159)\t0\t(12159)\nBalance September 30 2019\t639\t115\t272823\t1618005\t(1063181)\t(200277)\t628124\t26675\t654799\n", "q10k_tbl_8": "\tClass A Common Stock\tClass B Common Stock\tPaid-in Capital\tAccumulated Earnings\tTreasury Stock\tAccumulated Other Comprehensive Loss\tAMC Networks Stockholders' Equity\tNoncontrolling Interests\tTotal Stockholders' Equity\nBalance December 31 2018\t633\t115\t239767\t1228942\t(992583)\t(160194)\t316680\t28528\t345208\nNet income attributable to AMC Networks' stockholders\t0\t0\t0\t389063\t0\t0\t389063\t0\t389063\nNet income attributable to non-redeemable noncontrolling interests\t0\t0\t0\t0\t0\t0\t0\t2842\t2842\nDistributions to noncontrolling member\t0\t0\t0\t0\t0\t0\t0\t(3439)\t(3439)\nOther comprehensive loss\t0\t0\t0\t0\t0\t(40083)\t(40083)\t(1256)\t(41339)\nShare-based compensation expense\t0\t0\t50465\t0\t0\t0\t50465\t0\t50465\nProceeds from the exercise of stock options\t0\t0\t4630\t0\t0\t0\t4630\t0\t4630\nTreasury stock acquired\t0\t0\t985\t0\t(70598)\t0\t(69613)\t0\t(69613)\nRestricted stock units converted to shares\t6\t0\t(23024)\t0\t0\t0\t(23018)\t0\t(23018)\nBalance September 30 2019\t639\t115\t272823\t1618005\t(1063181)\t(200277)\t628124\t26675\t654799\n", "q10k_tbl_9": "\tNine Months Ended September 30\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet income including noncontrolling interests\t158756\t407368\nAdjustments to reconcile net income to net cash from operating activities:\t\t\nDepreciation and amortization\t80182\t75568\nImpairment charges\t130411\t0\nShare-based compensation expense related to equity classified awards\t43141\t50465\nNon-cash restructuring and other related charges\t6126\t14026\nAmortization and write-off of program rights\t622204\t696326\nAmortization of deferred carriage fees\t21088\t14624\nUnrealized foreign currency transaction loss\t9242\t489\nAmortization of deferred financing costs and discounts on indebtedness\t6039\t5970\nLoss on extinguishment of debt\t2908\t0\nBad debt expense\t340\t3628\nDeferred income taxes\t12403\t(65245)\nWrite-down of non-marketable equity securities and note receivable\t5103\t20206\nOther net\t(10696)\t(8481)\nChanges in assets and liabilities:\t\t\nAccounts receivable trade (including amounts due from related parties net)\t92328\t6993\nPrepaid expenses and other assets\t79098\t(121375)\nProgram rights and obligations net\t(565267)\t(676718)\nIncome taxes payable\t17265\t3101\nDeferred revenue\t(2234)\t10395\nDeferred carriage fees net\t(15057)\t(14409)\nAccounts payable accrued liabilities and other liabilities\t(49293)\t(22534)\nNet cash provided by operating activities\t644087\t400397\nCash flows from investing activities:\t\t\nCapital expenditures\t(34990)\t(69096)\nReturn of capital from investees\t924\t9232\nAcquisition of investment securities\t(4111)\t0\nPrincipal payment received on loan to investee\t3750\t0\nProceeds from sale of investments\t10000\t0\nNet cash used in investing activities\t(24427)\t(59864)\nCash flows from financing activities:\t\t\nProceeds from the issuance of long-term debt\t6000\t1521\nPrincipal payments on long-term debt\t(242500)\t(12613)\nDeemed repurchases of restricted stock units\t(8947)\t(23019)\nPurchase of treasury stock\t(102938)\t(70598)\nProceeds from stock option exercises\t0\t4630\nPrincipal payments on finance lease obligations\t(2404)\t(4059)\nDistributions to noncontrolling interests\t(13955)\t(13545)\nNet cash used in financing activities\t(364744)\t(117683)\nNet increase in cash and cash equivalents\t254916\t222850\nEffect of exchange rate changes on cash and cash equivalents\t774\t(4350)\nCash and cash equivalents at beginning of period\t816170\t554886\nCash and cash equivalents at end of period\t1071860\t773386\n", "q10k_tbl_10": "(In thousands)\tSeptember 30 2020\tDecember 31 2019\nBalances from contracts with customers:\t\t\nAccounts receivable (including long-term included in Other assets)\t1014956\t1121834\nContract assets short-term (included in Other current assets)\t4373\t7283\nContract assets long-term (included in Other assets)\t3225\t9964\nContract liabilities (Deferred revenue)\t61557\t63921\n", "q10k_tbl_11": "(In thousands)\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nBasic weighted average common shares outstanding\t52346\t\t55847\t\t53374\t\t56339\nEffect of dilution:\t\t\t\t\t\t\t\nStock options\t0\t\t7\t\t0\t\t18\nRestricted stock units\t558\t\t751\t\t543\t\t861\nDiluted weighted average common shares outstanding\t52904\t\t56605\t\t53917\t\t57218\n", "q10k_tbl_12": "(In thousands)\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nNational Networks\t5991\t\t6199\t\t8714\t\t6776\nInternational & Other\t(1585)\t\t3992\t\t5165\t\t23915\nInter-segment eliminations\t0\t\t0\t\t0\t\t(696)\nTotal restructuring and other related charges\t4406\t\t10191\t\t13879\t\t29995\n", "q10k_tbl_13": "(In thousands)\tSeverance and employee-related costs\tOther exit costs\tTotal\nDecember 31 2019\t27407\t221\t27628\nCharges\t9563\t4316\t13879\nCash payments\t(26763)\t(191)\t(26954)\nNon-cash adjustments\t(1810)\t(4316)\t(6126)\nCurrency translation\t1\t0\t1\nBalance September 30 2020\t8398\t30\t8428\n", "q10k_tbl_14": "\tSeptember 30 2020\t\t\n(In thousands)\tPredominantly Monetized Individually\tPredominantly Monetized as a Group\tTotal\nOwned original program rights net:\t\t\t\nCompleted\t288705\t33288\t321993\nIn-production and in-development\t145228\t14209\t159437\nTotal owned original program rights net\t433933\t47497\t481430\nLicensed program rights net:\t\t\t\nLicensed film and acquired series\t8080\t581253\t589333\nLicensed originals\t235149\t0\t235149\nAdvances and content versioning costs\t0\t48633\t48633\nTotal licensed program rights net\t243229\t629886\t873115\nProgram rights net\t677162\t677383\t1354545\nCurrent portion of program rights net\t\t\t17933\nProgram rights net (long-term)\t\t\t1336612\n\t\t\t1354545\n", "q10k_tbl_15": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\t\t\n(In thousands)\tPredominantly Monetized Individually\tPredominantly Monetized as a Group\tTotal\tPredominantly Monetized Individually\tPredominantly Monetized as a Group\tTotal\nOwned original program rights\t74597\t11854\t86451\t235868\t27831\t263699\nLicensed program rights\t20479\t100019\t120498\t61741\t296764\t358505\nProgram rights amortization\t95076\t111873\t206949\t297609\t324595\t622204\n", "q10k_tbl_16": "(In thousands)\tNational Networks\tInternational and Other\tTotal\nDecember 31 2019\t237103\t464877\t701980\nImpairment charge\t0\t(25062)\t(25062)\nAmortization of \"second component\" goodwill\t(996)\t0\t(996)\nForeign currency translation\t0\t(2112)\t(2112)\nSeptember 30 2020\t236107\t437703\t673810\n", "q10k_tbl_17": "(In thousands)\tSeptember 30 2020\t\t\t\t\t\t\nGross\t\tAccumulated Amortization\t\tNet\t\tEstimated Useful Lives\nAmortizable intangible assets:\t\t\t\t\t\t\t\nAffiliate and customer relationships\t617178\t\t(317770)\t\t299408\t\t6 to 25 years\nAdvertiser relationships\t46282\t\t(24976)\t\t21306\t\t11 years\nTrade names and other amortizable intangible assets\t114869\t\t(37705)\t\t77164\t\t3 to 20 years\nTotal amortizable intangible assets\t778329\t\t(380451)\t\t397878\t\t\nIndefinite-lived intangible assets:\t\t\t\t\t\t\t\nTrademarks\t19900\t\t0\t\t19900\t\t\nTotal intangible assets\t798229\t\t(380451)\t\t417778\t\t\n(In thousands)\tDecember 31 2019\t\t\t\t\t\t\nGross\t\tAccumulated Amortization\t\tNet\t\t\nAmortizable intangible assets:\t\t\t\t\t\t\t\nAffiliate and customer relationships\t616197\t\t(232193)\t\t384004\t\t\nAdvertiser relationships\t46282\t\t(21820)\t\t24462\t\t\nTrade names and other amortizable intangible assets\t115873\t\t(19708)\t\t96165\t\t\nTotal amortizable intangible assets\t778352\t\t(273721)\t\t504631\t\t\nIndefinite-lived intangible assets:\t\t\t\t\t\t\t\nTrademarks\t19900\t\t0\t\t19900\t\t\nTotal intangible assets\t798252\t\t(273721)\t\t524531\t\t\n", "q10k_tbl_18": "(In thousands)\t\nYears Ending December 31\t\n2020\t42325\n2021\t37808\n2022\t37763\n2023\t37687\n2024\t37618\n", "q10k_tbl_19": "(In thousands)\tSeptember 30 2020\tDecember 31 2019\nEmployee related costs\t81830\t89753\nParticipations and residuals\t91411\t70682\nInterest\t37089\t29767\nOther accrued expenses\t70693\t61012\nTotal accrued liabilities\t281023\t251214\n", "q10k_tbl_20": "(In thousands)\tSeptember 30 2020\tDecember 31 2019\nSenior Secured Credit Facility: (a)\t\t\nTerm Loan A Facility\t693750\t731250\nSenior Notes:\t\t\n4.75% Notes due August 2025\t800000\t800000\n5.00% Notes due April 2024\t1000000\t1000000\n4.75% Notes due December 2022\t400000\t600000\nOther debt (b)\t1000\t0\nTotal long-term debt\t2894750\t3131250\nUnamortized discount\t(19527)\t(24351)\nUnamortized deferred financing costs\t(8132)\t(10670)\nLong-term debt net\t2867091\t3096229\nCurrent portion of long-term debt\t76000\t56250\nNoncurrent portion of long-term debt\t2791091\t3039979\n", "q10k_tbl_21": "(In thousands)\tBalance Sheet Location\tSeptember 30 2020\tDecember 31 2019\nAssets\t\t\t\nOperating\tOperating lease right-of-use asset\t151801\t170056\nFinance\tProperty and equipment net\t13453\t15713\nTotal lease assets\t\t165254\t185769\nLiabilities\t\t\t\nCurrent:\t\t\t\nOperating\tCurrent portion of lease obligations\t30011\t30171\nFinance\tCurrent portion of lease obligations\t3508\t3788\n\t\t33519\t33959\nNoncurrent:\t\t\t\nOperating\tLease obligations\t181032\t193570\nFinance\tLease obligations\t28517\t17477\n\t\t209549\t211047\nTotal lease liabilities\t\t243068\t245006\n", "q10k_tbl_22": "(In thousands)\tLevel I\tLevel II\tLevel III\tTotal\nAt September 30 2020:\t\t\t\t\nAssets\t\t\t\t\nCash equivalents\t295051\t0\t0\t295051\nMarketable securities\t39699\t0\t0\t39699\nForeign currency derivatives\t0\t1366\t0\t1366\nLiabilities\t\t\t\t\nInterest rate swap contracts\t0\t3007\t0\t3007\nForeign currency derivatives\t0\t3568\t0\t3568\nAt December 31 2019:\t\t\t\t\nAssets\t\t\t\t\nCash equivalents\t191214\t0\t0\t191214\nMarketable securities\t4448\t0\t0\t4448\nForeign currency derivatives\t0\t1884\t0\t1884\nLiabilities\t\t\t\t\nInterest rate swap contracts\t0\t1966\t0\t1966\nForeign currency derivatives\t0\t1888\t0\t1888\n", "q10k_tbl_23": "(In thousands)\tSeptember 30 2020\t\t\nCarrying Amount\t\tEstimated Fair Value\nDebt instruments:\t\t\t\nTerm loan A facility\t687991\t\t679875\n4.75% Notes due August 2025\t789648\t\t828160\n5.00% Notes due April 2024\t990436\t\t1019700\n4.75% Notes due December 2022\t398016\t\t400000\nOther debt\t1000\t\t1000\n\t2867091\t\t2928735\n", "q10k_tbl_24": "(In thousands)\tDecember 31 2019\t\t\nCarrying Amount\t\tEstimated Fair Value\nDebt instruments:\t\t\t\nTerm loan A facility\t723560\t\t724303\n4.75% Notes due August 2025\t788247\t\t803000\n5.00% Notes due April 2024\t988609\t\t1020000\n4.75% Notes due December 2022\t595813\t\t605250\n\t3096229\t\t3152553\n", "q10k_tbl_25": "(In thousands)\tBalance Sheet Location\tSeptember 30 2020\tDecember 31 2019\nDerivatives designated as hedging instruments:\t\t\t\nLiabilities:\t\t\t\nInterest rate swap contracts\tAccrued liabilities\t3007\t1966\nDerivatives not designated as hedging instruments:\t\t\t\nAssets:\t\t\t\nForeign currency derivatives\tPrepaid expenses and other current assets\t775\t891\nForeign currency derivatives\tOther assets\t591\t993\nLiabilities:\t\t\t\nForeign currency derivatives\tAccrued liabilities\t906\t687\nForeign currency derivatives\tOther liabilities\t2662\t1202\n", "q10k_tbl_26": "(In thousands)\tGain or (Loss) on Derivatives Recognized in OCI\t\t\tLocation of Gain or (Loss) in Earnings\t\tGain or (Loss) Reclassified from Accumulated OCI into Earnings\t\t\nThree Months Ended September 30\t\t\t\t\tThree Months Ended September 30\t\t\n2020\t\t2019\t\t\t2020\t\t2019\nDerivatives in cash flow hedging relationships:\t\t\t\t\t\t\t\t\nInterest rate swap contracts\t9\t\t(265)\tInterest expense\t\t606\t\t78\n", "q10k_tbl_27": "(In thousands)\tGain or (Loss) on Derivatives Recognized in OCI\t\t\tLocation of Gain or (Loss) in Earnings\t\tGain or (Loss) Reclassified from Accumulated OCI into Earnings\t\t\nNine Months Ended September 30\t\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t\t2020\t\t2019\nDerivatives in cash flow hedging relationships:\t\t\t\t\t\t\t\t\nInterest rate swap contracts\t(2401)\t\t(2190)\tInterest expense\t\t1360\t\t113\n", "q10k_tbl_28": "(In thousands)\tLocation of Gain or (Loss) Recognized in Earnings on Derivatives\t\tAmount of Gain or (Loss) Recognized in Earnings on Derivatives\t\t\t\t\t\t\n\t\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n\t\t2020\t\t2019\t\t2020\t\t2019\nForeign currency derivatives\tMiscellaneous net\t\t(1300)\t\t510\t\t(2018)\t\t556\n", "q10k_tbl_29": "(In thousands)\tNine Months Ended September 30 2020\nDecember 31 2019\t309451\nNet earnings\t12788\nDistributions\t(12945)\nOther\t5103\nSeptember 30 2020\t314397\n", "q10k_tbl_30": "(In thousands)\tNine Months Ended September 30\t\t\n2020\t\t2019\nNon-Cash Investing and Financing Activities:\t\t\t\nFinance lease additions\t14260\t\t0\nCapital expenditures incurred but not yet paid\t2105\t\t1659\nSupplemental Data:\t\t\t\nCash interest paid\t91940\t\t104698\nIncome taxes paid net\t60335\t\t121110\n", "q10k_tbl_31": "(In thousands)\tThree Months Ended September 30 2020\t\t\t\t\t\t\nNational Networks\t\tInternational and Other\t\tInter-segment eliminations\t\tConsolidated\nRevenues net\t\t\t\t\t\t\t\nAdvertising\t164216\t\t18923\t\t(37)\t\t183102\nDistribution\t297933\t\t180369\t\t(7389)\t\t470913\nConsolidated revenues net\t462149\t\t199292\t\t(7426)\t\t654015\nOperating income (loss)\t129842\t\t11198\t\t(1563)\t\t139477\nShare-based compensation expense\t9922\t\t2472\t\t0\t\t12394\nDepreciation and amortization\t13422\t\t14125\t\t0\t\t27547\nRestructuring and other related charges\t5991\t\t(1585)\t\t0\t\t4406\nMajority-owned equity investees AOI\t0\t\t1667\t\t0\t\t1667\nAdjusted operating income\t159177\t\t27877\t\t(1563)\t\t185491\n", "q10k_tbl_32": "(In thousands)\tThree Months Ended September 30 2019\t\t\t\t\t\t\nNational Networks\t\tInternational and Other\t\tInter-segment eliminations\t\tConsolidated\nRevenues net\t\t\t\t\t\t\t\nAdvertising\t194452\t\t18872\t\t(24)\t\t213300\nDistribution\t364540\t\t163967\t\t(23210)\t\t505297\nConsolidated revenues net\t558992\t\t182839\t\t(23234)\t\t718597\nOperating income (loss)\t182479\t\t(11501)\t\t(2540)\t\t168438\nShare-based compensation expense\t11684\t\t2157\t\t0\t\t13841\nDepreciation and amortization\t8048\t\t17571\t\t0\t\t25619\nRestructuring and other related charges\t6199\t\t3992\t\t0\t\t10191\nMajority-owned equity investees AOI\t0\t\t1246\t\t0\t\t1246\nAdjusted operating income\t208410\t\t13465\t\t(2540)\t\t219335\n", "q10k_tbl_33": "(In thousands)\tNine Months Ended September 30 2020\t\t\t\t\t\t\nNational Networks\t\tInternational and Other\t\tInter-segment eliminations\t\tConsolidated\nRevenues net\t\t\t\t\t\t\t\nAdvertising\t564876\t\t53097\t\t(38)\t\t617935\nDistribution\t960062\t\t477668\t\t(20984)\t\t1416746\nConsolidated revenues net\t1524938\t\t530765\t\t(21022)\t\t2034681\nOperating income (loss)\t512598\t\t(147226)\t\t(4123)\t\t361249\nShare-based compensation expense\t34754\t\t8387\t\t0\t\t43141\nDepreciation and amortization\t30633\t\t49549\t\t0\t\t80182\nImpairment charges\t0\t\t130411\t\t0\t\t130411\nRestructuring and other related charges\t8714\t\t5165\t\t0\t\t13879\nMajority-owned equity investees AOI\t0\t\t4361\t\t0\t\t4361\nAdjusted operating income\t586699\t\t50647\t\t(4123)\t\t633223\n", "q10k_tbl_34": "(In thousands)\tNine Months Ended September 30 2019\t\t\t\t\t\t\nNational Networks\t\tInternational and Other\t\tInter-segment eliminations\t\tConsolidated\nRevenues net\t\t\t\t\t\t\t\nAdvertising\t653031\t\t63613\t\t(75)\t\t716569\nDistribution\t1126819\t\t469841\t\t(38112)\t\t1558548\nConsolidated revenues net\t1779850\t\t533454\t\t(38187)\t\t2275117\nOperating income (loss)\t648180\t\t(52532)\t\t(12090)\t\t583558\nShare-based compensation expense\t41774\t\t8691\t\t0\t\t50465\nDepreciation and amortization\t24839\t\t50729\t\t0\t\t75568\nRestructuring and other related charges\t6776\t\t23915\t\t(696)\t\t29995\nMajority-owned equity investees AOI\t0\t\t4434\t\t0\t\t4434\nAdjusted operating income\t721569\t\t35237\t\t(12786)\t\t744020\n", "q10k_tbl_35": "(In thousands)\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nInter-segment revenues\t\t\t\t\t\t\t\nNational Networks\t(7166)\t\t(18140)\t\t(17346)\t\t(29790)\nInternational and Other\t(260)\t\t(5094)\t\t(3676)\t\t(8397)\n\t(7426)\t\t(23234)\t\t(21022)\t\t(38187)\n", "q10k_tbl_36": "(In thousands)\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nRevenues\t\t\t\t\t\t\t\nUnited States\t497677\t\t579913\t\t1646065\t\t1847491\nEurope\t110448\t\t108365\t\t274763\t\t299782\nOther\t45890\t\t30319\t\t113853\t\t127844\n\t654015\t\t718597\t\t2034681\t\t2275117\n", "q10k_tbl_37": "(In thousands)\tSeptember 30 2020\tDecember 31 2019\nProperty and equipment net\t\t\nUnited States\t241541\t244175\nEurope\t13985\t25925\nOther\t203\t13652\n\t255729\t283752\n", "q10k_tbl_38": "(In thousands)\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nRevenues net\t\t\t\t\t\t\t\nNational Networks\t462149\t\t558992\t\t1524938\t\t1779850\nInternational and Other\t199292\t\t182839\t\t530765\t\t533454\nInter-segment eliminations\t(7426)\t\t(23234)\t\t(21022)\t\t(38187)\nConsolidated revenues net\t654015\t\t718597\t\t2034681\t\t2275117\nOperating income (loss)\t\t\t\t\t\t\t\nNational Networks\t129842\t\t182479\t\t512598\t\t648180\nInternational and Other\t11198\t\t(11501)\t\t(147226)\t\t(52532)\nInter-segment eliminations\t(1563)\t\t(2540)\t\t(4123)\t\t(12090)\nConsolidated operating income\t139477\t\t168438\t\t361249\t\t583558\nAOI\t\t\t\t\t\t\t\nNational Networks\t159177\t\t208410\t\t586699\t\t721569\nInternational and Other\t27877\t\t13465\t\t50647\t\t35237\nInter-segment eliminations\t(1563)\t\t(2540)\t\t(4123)\t\t(12786)\nConsolidated AOI\t185491\t\t219335\t\t633223\t\t744020\n", "q10k_tbl_39": "(In thousands)\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\n2020\t\t2019\t\t2020\t\t2019\nOperating income\t139477\t\t168438\t\t361249\t\t583558\nShare-based compensation expense\t12394\t\t13841\t\t43141\t\t50465\nDepreciation and amortization\t27547\t\t25619\t\t80182\t\t75568\nRestructuring and other related charges\t4406\t\t10191\t\t13879\t\t29995\nImpairment charges\t0\t\t0\t\t130411\t\t0\nMajority-owned equity investees AOI\t1667\t\t1246\t\t4361\t\t4434\nAOI\t185491\t\t219335\t\t633223\t\t744020\n", "q10k_tbl_40": "\tThree Months Ended September 30\t\t\t\t\t\n\t2020\t\t2019\t\t\t\n(In thousands)\tAmount\t% of Revenues net\tAmount\t% of Revenues net\t change\t% change\nRevenues net\t654015\t100.0%\t718597\t100.0%\t(64582)\t(9.0)%\nOperating expenses:\t\t\t\t\t\t\nTechnical and operating (excluding depreciation and amortization)\t333816\t51.0\t354992\t49.4\t(21176)\t(6.0)\nSelling general and administrative\t148769\t22.7\t159357\t22.2\t(10588)\t(6.6)\nDepreciation and amortization\t27547\t4.2\t25619\t3.6\t1928\t7.5\nImpairment charges\t0\t0\t0\t0\t0\tn/m\nRestructuring and other related charges\t4406\t0.7\t10191\t1.4\t(5785)\t(56.8)\nTotal operating expenses\t514538\t78.7\t550159\t76.6\t(35621)\t(6.5)\nOperating income\t139477\t21.3\t168438\t23.4\t(28961)\t(17.2)\nOther income (expense):\t\t\t\t\t\t\nInterest expense net\t(30424)\t(4.7)\t(34995)\t(4.9)\t4571\t(13.1)\nMiscellaneous net\t11138\t1.7\t(1490)\t(0.2)\t12628\tn/m\nTotal other income (expense)\t(19286)\t(2.9)\t(36485)\t(5.1)\t17199\t(47.1)\nNet income from operations before income taxes\t120191\t18.4\t131953\t18.4\t(11762)\t(8.9)\nIncome tax expense\t(52195)\t(8.0)\t(8727)\t(1.2)\t(43468)\tn/m\nNet income including noncontrolling interests\t67996\t10.4\t123226\t17.1\t(55230)\t(44.8)\nNet income attributable to noncontrolling interests\t(6356)\t(1.0)\t(6303)\t(0.9)\t(53)\t0.8%\nNet income attributable to AMC Networks' stockholders\t61640\t9.4%\t116923\t16.3%\t(55283)\t(47.3)%\n", "q10k_tbl_41": "\tThree Months Ended September 30\t\t\t\t\t\n\t2020\t\t2019\t\t\t\n(In thousands)\tAmount\t% of Revenues net\tAmount\t% of Revenues net\t change\t% change\nRevenues net\t462149\t100.0%\t558992\t100.0%\t(96843)\t(17.3)%\nOperating expenses:\t\t\t\t\t\t\nTechnical and operating (excluding depreciation and amortization)\t222589\t48.2\t260400\t46.6\t(37811)\t(14.5)\nSelling general and administrative\t90305\t19.5\t101866\t18.2\t(11561)\t(11.3)\nDepreciation and amortization\t13422\t2.9\t8048\t1.4\t5374\t66.8\nRestructuring and other related charges\t5991\t1.3\t6199\t1.1\t(208)\tn/m\nOperating income\t129842\t28.1%\t182479\t32.6%\t(52637)\t(28.8)%\nShare-based compensation expense\t9922\t2.1\t11684\t2.1\t(1762)\t(15.1)\nDepreciation and amortization\t13422\t2.9\t8048\t1.4\t5374\t66.8\nRestructuring and other related charges\t5991\t1.3\t6199\t1.1%\t(208)\tn/m\nAOI\t159177\t34.4%\t208410\t37.3%\t(49233)\t(23.6)%\n", "q10k_tbl_42": "\tThree Months Ended September 30\t\t\t\t\t\n\t2020\t\t2019\t\t\t\n(In thousands)\tAmount\t% of Revenues net\tAmount\t% of Revenues net\t change\t% change\nRevenues net\t199292\t100.0%\t182839\t100.0%\t16453\t9.0%\nOperating expenses:\t\t\t\t\t\t\nTechnical and operating (excluding depreciation and amortization)\t117041\t58.7\t115250\t63.0\t1791\t1.6\nSelling general and administrative\t58513\t29.4\t57527\t31.5\t986\t1.7\nDepreciation and amortization\t14125\t7.1\t17571\t9.6\t(3446)\t(19.6)\nRestructuring and other related charges\t(1585)\t(0.8)\t3992\t2.2\t(5577)\tn/m\nOperating loss\t11198\t5.6%\t(11501)\t(6.3)%\t22699\tn/m\nShare-based compensation expense\t2472\t1.2\t2157\t1.2\t315\t14.6\nDepreciation and amortization\t14125\t7.1\t17571\t9.6\t(3446)\t(19.6)\nRestructuring and other related charges\t(1585)\t(0.8)\t3992\t2.2\t(5577)\tn/m\nMajority-owned equity investees AOI\t1667\t0.8\t1246\t0.7\t421\t33.8\nAOI\t27877\t14.0%\t13465\t7.4%\t14412\t107.0%\n", "q10k_tbl_43": "\tThree Months Ended September 30\t\t\t\t\t\n(In thousands)\t2020\t% of total\t2019\t% of total\t change\t% change\nNational Networks\t462149\t70.7%\t558992\t77.8%\t(96843)\t(17.3)%\nInternational and Other\t199292\t30.5\t182839\t25.4\t16453\t9.0\nInter-segment eliminations\t(7426)\t(1.1)\t(23234)\t(3.2)\t15808\t(68.0)\nConsolidated revenues net\t654015\t100.0%\t718597\t100.0%\t(64582)\t(9.0)%\n", "q10k_tbl_44": "\tThree Months Ended September 30\t\t\t\t\t\n(In thousands)\t2020\t% of total\t2019\t% of total\t change\t% change\nAdvertising\t164216\t35.5%\t194452\t34.8%\t(30236)\t(15.5)%\nDistribution\t297933\t64.5\t364540\t65.2\t(66607)\t(18.3)\n\t462149\t100.0%\t558992\t100.0%\t(96843)\t(17.3)%\n", "q10k_tbl_45": "\tThree Months Ended September 30\t\t\t\t\t\n(In thousands)\t2020\t% of total\t2019\t% of total\t change\t% change\nAdvertising\t18923\t9.5%\t18872\t10.3%\t51\t0.3%\nDistribution\t180369\t90.5\t163967\t89.7\t16402\t10.0\n\t199292\t100.0%\t182839\t100.0%\t16453\t9.0%\n", "q10k_tbl_46": "\tThree Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nNational Networks\t222589\t260400\t(37811)\t(14.5)%\nInternational and Other\t117041\t115250\t1791\t1.6%\nInter-segment eliminations\t(5814)\t(20658)\t14844\tn/m\nTotal\t333816\t354992\t(21176)\t(6.0)%\nPercentage of revenues net\t51.0%\t49.4%\t\t\n", "q10k_tbl_47": "\tThree Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nNational Networks\t90305\t101866\t(11561)\t(11.3)%\nInternational and Other\t58513\t57527\t986\t1.7\nInter-segment eliminations\t(49)\t(36)\t(13)\t36.1\nTotal\t148769\t159357\t(10588)\t(6.6)%\nPercentage of revenues net\t22.7%\t22.2%\t\t\n", "q10k_tbl_48": "\tThree Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nNational Networks\t13422\t8048\t5374\t66.8%\nInternational and Other\t14125\t17571\t(3446)\t(19.6)\n\t27547\t25619\t1928\t7.5%\n", "q10k_tbl_49": "\tThree Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nNational Networks\t129842\t182479\t(52637)\t(28.8)%\nInternational and Other\t11198\t(11501)\t22699\tn/m\nInter-segment Eliminations\t(1563)\t(2540)\t977\tn/m\n\t139477\t168438\t(28961)\t(17.2)%\n", "q10k_tbl_50": "\tThree Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nOperating income\t139477\t168438\t(28961)\t(17.2)%\nShare-based compensation expense\t12394\t13841\t(1447)\t(10.5)\nDepreciation and amortization\t27547\t25619\t1928\t7.5\nRestructuring and other related charges\t4406\t10191\t(5785)\t(56.8)\nMajority-owned equity investees AOI\t1667\t1246\t421\t33.8\nAOI\t185491\t219335\t(33844)\t(15.4)%\n", "q10k_tbl_51": "\tThree Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nNational Networks\t159177\t208410\t(49233)\t(23.6)%\nInternational and Other\t27877\t13465\t14412\t107.0\nInter-segment eliminations\t(1563)\t(2540)\t977\tn/m\nAOI\t185491\t219335\t(33844)\t(15.4)%\n", "q10k_tbl_52": "\tNine Months Ended September 30\t\t\t\t\t\n\t2020\t\t2019\t\t\t\n(In thousands)\tAmount\t% of Revenues net\tAmount\t% of Revenues net\t change\t% change\nRevenues net\t2034681\t100.0%\t2275117\t100.0%\t(240436)\t(10.6)%\nOperating expenses:\t\t\t\t\t\t\nTechnical and operating (excluding depreciation and amortization)\t960379\t47.2\t1080763\t47.5\t(120384)\t(11.1)\nSelling general and administrative\t488581\t24.0\t505233\t22.2\t(16652)\t(3.3)\nDepreciation and amortization\t80182\t3.9\t75568\t3.3\t4614\t6.1\nImpairment charges\t130411\t6.4\t0\t0\t130411\tn/m\nRestructuring and other related charges\t13879\t0.7\t29995\t1.3\t(16116)\t(53.7)\nTotal operating expenses\t1673432\t82.2\t1691559\t74.4\t(18127)\t(1.1)\nOperating income\t361249\t17.8\t583558\t25.6\t(222309)\t(38.1)\nOther income (expense):\t\t\t\t\t\t\nInterest expense net\t(94007)\t(4.6)\t(105411)\t(4.6)\t11404\t(10.8)\nLoss on extinguishment of debt\t(2908)\t(0.1)\t0\t0\t(2908)\tn/m\nMiscellaneous net\t(10088)\t(0.5)\t(16972)\t(0.7)\t6884\t(40.6)\nTotal other income (expense)\t(107003)\t(5.3)\t(122383)\t(5.4)\t15380\t(12.6)\nNet income from operations before income taxes\t254246\t12.5\t461175\t20.3\t(206929)\t(44.9)\nIncome tax expense\t(95490)\t(4.7)\t(53807)\t(2.4)\t(41683)\t77.5\nNet income including noncontrolling interests\t158756\t7.8\t407368\t17.9\t(248612)\t(61.0)\nNet income attributable to noncontrolling interests\t(13488)\t(0.7)\t(18305)\t(0.8)\t4817\t(26.3)\nNet income attributable to AMC Networks' stockholders\t145268\t7.1%\t389063\t17.1%\t(243795)\t(62.7)%\n", "q10k_tbl_53": "\tNine Months Ended September 30\t\t\t\t\t\n\t2020\t\t2019\t\t\t\n(In thousands)\tAmount\t% of Revenues net\tAmount\t% of Revenues net\t change\t% change\nRevenues net\t1524938\t100.0%\t1779850\t100.0%\t(254912)\t(14.3)%\nOperating expenses:\t\t\t\t\t\t\nTechnical and operating (excluding depreciation and amortization)\t663334\t43.5\t770807\t43.3\t(107473)\t(13.9)\nSelling general and administrative\t309659\t20.3\t329248\t18.5\t(19589)\t(5.9)\nDepreciation and amortization\t30633\t2.0\t24839\t1.4\t5794\t23.3\nRestructuring and other related charges\t8714\t0.6\t6776\t0.4\t1938\tn/m\nOperating income\t512598\t33.6%\t648180\t36.4%\t(135582)\t(20.9)%\nShare-based compensation expense\t34754\t2.3\t41774\t2.3\t(7020)\t(16.8)\nDepreciation and amortization\t30633\t2.0\t24839\t1.4\t5794\t23.3\nRestructuring and other related charges\t8714\t0.6\t6776\t0.4\t1938\tn/m\nAOI\t586699\t38.5%\t721569\t40.5%\t(134870)\t(18.7)%\n", "q10k_tbl_54": "\tNine Months Ended September 30\t\t\t\t\t\n\t2020\t\t2019\t\t\t\n(In thousands)\tAmount\t% of Revenues net\tAmount\t% of Revenues net\t change\t% change\nRevenues net\t530765\t100.0%\t533454\t100.0%\t(2689)\t(0.5)%\nOperating expenses:\t\t\t\t\t\t\nTechnical and operating (excluding depreciation and amortization)\t313867\t59.1\t335244\t62.8\t(21377)\t(6.4)\nSelling general and administrative\t178999\t33.7\t176098\t33.0\t2901\t1.6\nDepreciation and amortization\t49549\t9.3\t50729\t9.5\t(1180)\t(2.3)\nImpairment charges\t130411\t24.6\t0\t0\t130411\tn/m\nRestructuring and other related charges\t5165\t1.0\t23915\t4.5\t(18750)\t(78.4)\nOperating loss\t(147226)\t(27.7)%\t(52532)\t(9.8)%\t(94694)\tn/m\nShare-based compensation expense\t8387\t1.6\t8691\t1.6\t(304)\t(3.5)\nDepreciation and amortization\t49549\t9.3\t50729\t9.5\t(1180)\t(2.3)\nImpairment charges\t130411\t24.6\t0\t0\t130411\tn/m\nRestructuring and other related charges\t5165\t1.0\t23915\t4.5\t(18750)\t(78.4)\nMajority-owned equity investees AOI\t4361\t0.8\t4434\t0.8\t(73)\t(1.6)\nAOI\t50647\t9.5%\t35237\t6.6%\t15410\t43.7%\n", "q10k_tbl_55": "\tNine Months Ended September 30\t\t\t\t\t\n(In thousands)\t2020\t% of total\t2019\t% of total\t change\t% change\nNational Networks\t1524938\t75.0%\t1779850\t78.3%\t(254912)\t(14.3)%\nInternational and Other\t530765\t26.1\t533454\t23.4\t(2689)\t(0.5)\nInter-segment eliminations\t(21022)\t(1.0)\t(38187)\t(1.7)\t17165\t(44.9)\nConsolidated revenues net\t2034681\t100.1%\t2275117\t100.0%\t(240436)\t(10.6)%\n", "q10k_tbl_56": "\tNine Months Ended September 30\t\t\t\t\t\n(In thousands)\t2020\t% of total\t2019\t% of total\t change\t% change\nAdvertising\t564876\t37.0%\t653031\t36.7%\t(88155)\t(13.5)%\nDistribution\t960062\t63.0\t1126819\t63.3\t(166757)\t(14.8)\n\t1524938\t100.0%\t1779850\t100.0%\t(254912)\t(14.3)%\n", "q10k_tbl_57": "\tNine Months Ended September 30\t\t\t\t\t\n(In thousands)\t2020\t% of total\t2019\t% of total\t change\t% change\nAdvertising\t53097\t10.0%\t63613\t11.9%\t(10516)\t(16.5)%\nDistribution\t477668\t90.0\t469841\t88.1\t7827\t1.7\n\t530765\t100.0%\t533454\t100.0%\t(2689)\t(0.5)%\n", "q10k_tbl_58": "\tNine Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nNational Networks\t663334\t770807\t(107473)\t(13.9)%\nInternational and Other\t313867\t335244\t(21377)\t(6.4)\nInter-segment eliminations\t(16822)\t(25288)\t8466\t(33.5)\nTotal\t960379\t1080763\t(120384)\t(11.1)%\nPercentage of revenues net\t47.2%\t47.5%\t\t\n", "q10k_tbl_59": "\tNine Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nNational Networks\t309659\t329248\t(19589)\t(5.9)%\nInternational and Other\t178999\t176098\t2901\t1.6\nInter-segment eliminations\t(77)\t(113)\t36\t(31.9)\nTotal\t488581\t505233\t(16652)\t(3.3)%\nPercentage of revenues net\t24.0%\t22.2%\t\t\n", "q10k_tbl_60": "\tNine Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nNational Networks\t30633\t24839\t5794\t23.3%\nInternational and Other\t49549\t50729\t(1180)\t(2.3)\n\t80182\t75568\t4614\t6.1%\n", "q10k_tbl_61": "\tNine Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nNational Networks\t512598\t648180\t(135582)\t(20.9)%\nInternational and Other\t(147226)\t(52532)\t(94694)\tn/m\nInter-segment Eliminations\t(4123)\t(12090)\t7967\tn/m\n\t361249\t583558\t(222309)\t(38.1)%\n", "q10k_tbl_62": "\tNine Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nOperating income\t361249\t583558\t(222309)\t(38.1)%\nShare-based compensation expense\t43141\t50465\t(7324)\t(14.5)\nDepreciation and amortization\t80182\t75568\t4614\t6.1\nImpairment charges\t130411\t0\t130411\tn/m\nRestructuring and other related charges\t13879\t29995\t(16116)\t(53.7)\nMajority-owned equity investees AOI\t4361\t4434\t(73)\t(1.6)\nAOI\t633223\t744020\t(110797)\t(14.9)%\n", "q10k_tbl_63": "\tNine Months Ended September 30\t\t\t\n(In thousands)\t2020\t2019\t change\t% change\nNational Networks\t586699\t721569\t(134870)\t(18.7)%\nInternational and Other\t50647\t35237\t15410\t43.7\nInter-segment eliminations\t(4123)\t(12786)\t8663\tn/m\nAOI\t633223\t744020\t(110797)\t(14.9)%\n", "q10k_tbl_64": "(In thousands)\tNine Months Ended September 30\t\t\n2020\t\t2019\nCash provided by operating activities\t644087\t\t400397\nCash used in investing activities\t(24427)\t\t(59864)\nCash used in financing activities\t(364744)\t\t(117683)\nNet increase in cash and cash equivalents\t254916\t\t222850\n", "q10k_tbl_65": "Income Statement\t\t\t\n(In thousands)\tNine Months Ended September 30 2020\t\t\nParent Company\t\tGuarantor Subsidiaries\t\nRevenues\t0\t\t1403731\nOperating expenses\t0\t\t976117\nOperating income\t0\t\t427614\nIncome before income taxes\t228499\t\t341365\nNet income\t145268\t\t334838\n", "q10k_tbl_66": "Balance Sheet\tSeptember 30 2020\t\tDecember 31 2019\t\n(In thousands)\tParent Company\tGuarantor Subsidiaries\tParent Company\tGuarantor Subsidiaries\nAssets\t\t\t\t\nAmounts due from subsidiaries\t5\t70.977\t1760\t100485\nCurrent assets\t7329\t1478636\t28768\t1590932\nNon-current assets\t3937137\t3117403\t4050648\t3044865\nLiabilities and equity:\t\t\t\t\nAmounts due to subsidiaries\t2038\t1370\t0\t0\nCurrent liabilities\t148025\t461012\t100081\t470027\nNon-current liabilities\t3048838\t332106\t3315314\t361324\n", "q10k_tbl_67": "10.1\tAmendment to Employment Agreement dated as of September 15 2020 by and between AMC Networks Inc. and Charles F. Dolan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 15 2020)\n22\tGuarantor Subsidiaries of the Registrant\n31.1\tCertification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\n31.2\tCertification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\n32\tCertifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.\n101.INS\tXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within Inline XBRL document.\n101.SCH\tXBRL Taxonomy Extension Schema Document.\n101.CAL\tXBRL Taxonomy Extension Calculation Linkbase Document.\n101.DEF\tXBRL Taxonomy Extension Definition Linkbase.\n101.LAB\tXBRL Taxonomy Extension Label Linkbase Document.\n101.PRE\tXBRL Taxonomy Extension Presentation Linkbase Document.\n104\tCover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_3", "cf": "q10k_tbl_9"}None
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2020
or
☐
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from to
Commission File Number: 1-35106
AMC Networks Inc.
(Exact name of registrant as specified in its charter)
Delaware
27-5403694
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
11 Penn Plaza,
New York,
NY
10001
(Address of principal executive offices)
(Zip Code)
(212) 324-8500
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share
AMCX
The
NASDAQ
Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesþ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yesþ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company (as defined in Exchange Act Rule 12b-2).
Large accelerated filer
þ
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ
The number of shares of common stock outstanding as of October 23, 2020:
Accounts receivable, trade (less allowance for doubtful accounts of $9,345 and $5,733)
768,506
857,143
Current portion of program rights, net
17,933
426,624
Prepaid expenses and other current assets
174,682
230,360
Total current assets
2,032,981
2,330,297
Property and equipment, net of accumulated depreciation of $254,312 and $347,302
255,729
283,752
Program rights, net
1,336,612
1,038,060
Intangible assets, net
417,778
524,531
Goodwill
673,810
701,980
Deferred tax asset, net
39,778
51,545
Operating lease right-of-use asset
151,801
170,056
Other assets
477,938
496,465
Total assets
$
5,386,427
$
5,596,686
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable
$
80,967
$
94,306
Accrued liabilities
281,023
251,214
Current portion of program rights obligations
302,061
304,692
Deferred revenue
61,557
63,921
Current portion of long-term debt
76,000
56,250
Current portion of lease obligations
33,519
33,959
Total current liabilities
835,127
804,342
Program rights obligations
198,197
239,813
Long-term debt
2,791,091
3,039,979
Lease obligations
209,549
211,047
Deferred tax liability, net
135,476
136,911
Other liabilities
130,244
163,638
Total liabilities
4,299,684
4,595,730
Commitments and contingencies
Redeemable noncontrolling interests
314,397
309,451
Stockholders' equity:
Class A Common Stock, $0.01 par value, 360,000 shares authorized, 63,348 and 63,886 shares issued and 40,557 and 44,078 shares outstanding, respectively
643
639
Class B Common Stock, $0.01 par value, 90,000 shares authorized, 11,484 shares issued and outstanding
115
115
Preferred stock, $0.01 par value, 45,000 shares authorized; none issued
—
—
Paid-in capital
320,681
286,491
Accumulated earnings
1,752,740
1,609,428
Treasury stock, at cost (23,790 and 19,808 shares Class A Common Stock, respectively)
(1,166,119)
(1,063,181)
Accumulated other comprehensive loss
(160,457)
(167,711)
Total AMC Networks stockholders' equity
747,603
665,781
Non-redeemable noncontrolling interests
24,743
25,724
Total stockholders' equity
772,346
691,505
Total liabilities and stockholders' equity
$
5,386,427
$
5,596,686
See accompanying notes to condensed consolidated financial statements.
1
AMC NETWORKS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Revenues, net
$
654,015
$
718,597
$
2,034,681
$
2,275,117
Operating expenses:
Technical and operating (excluding depreciation and amortization)
333,816
354,992
960,379
1,080,763
Selling, general and administrative
148,769
159,357
488,581
505,233
Depreciation and amortization
27,547
25,619
80,182
75,568
Impairment charges
—
—
130,411
—
Restructuring and other related charges
4,406
10,191
13,879
29,995
Total operating expenses
514,538
550,159
1,673,432
1,691,559
Operating income
139,477
168,438
361,249
583,558
Other income (expense):
Interest expense
(33,418)
(39,621)
(105,283)
(118,982)
Interest income
2,994
4,626
11,276
13,571
Loss on extinguishment of debt
—
—
(2,908)
—
Miscellaneous, net
11,138
(1,490)
(10,088)
(16,972)
Total other (expense) income
(19,286)
(36,485)
(107,003)
(122,383)
Income from operations before income taxes
120,191
131,953
254,246
461,175
Income tax expense
(52,195)
(8,727)
(95,490)
(53,807)
Net income including noncontrolling interests
67,996
123,226
158,756
407,368
Net income attributable to noncontrolling interests
(6,356)
(6,303)
(13,488)
(18,305)
Net income attributable to AMC Networks' stockholders
$
61,640
$
116,923
$
145,268
$
389,063
Net income per share attributable to AMC Networks' stockholders:
Basic
$
1.18
$
2.09
$
2.72
$
6.91
Diluted
$
1.17
$
2.07
$
2.69
$
6.80
Weighted average common shares:
Basic
52,346
55,847
53,374
56,339
Diluted
52,904
56,605
53,917
57,218
See accompanying notes to condensed consolidated financial statements.
2
AMC NETWORKS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Net income including noncontrolling interests
$
67,996
$
123,226
$
158,756
$
407,368
Other comprehensive income (loss):
Foreign currency translation adjustment
21,475
(33,281)
7,383
(38,490)
Unrealized gain (loss) on interest rate swaps
615
(187)
(1,041)
(2,076)
Other comprehensive income (loss), before income taxes
22,090
(33,468)
6,342
(40,566)
Income tax (expense) benefit
(144)
335
242
483
Other comprehensive income (loss), net of income taxes
21,946
(33,133)
6,584
(40,083)
Comprehensive income
89,942
90,093
165,340
367,285
Comprehensive income attributable to noncontrolling interests
(6,648)
(5,217)
(12,818)
(17,048)
Comprehensive income attributable to AMC Networks' stockholders
$
83,294
$
84,876
$
152,522
$
350,237
See accompanying notes to condensed consolidated financial statements.
3
AMC NETWORKS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands)
(unaudited)
Class A Common Stock
Class B Common Stock
Paid-in Capital
Accumulated Earnings
Treasury Stock
Accumulated Other Comprehensive Loss
AMC Networks Stockholders’ Equity
Noncontrolling Interests
Total Stockholders' Equity
Balance, June 30, 2020
$
643
$
115
$
308,288
$
1,691,100
$
(1,166,119)
$
(182,111)
$
651,916
$
23,229
$
675,145
Net income attributable to AMC Networks’ stockholders
—
—
—
61,640
—
—
61,640
—
61,640
Net income attributable to non-redeemable noncontrolling interests
—
—
—
—
—
—
—
1,785
1,785
Distributions to noncontrolling member
—
—
—
—
—
—
—
(563)
(563)
Other comprehensive income
—
—
—
—
—
21,654
21,654
292
21,946
Share-based compensation expense
—
—
12,393
—
—
—
12,393
—
12,393
Balance, September 30, 2020
$
643
$
115
$
320,681
$
1,752,740
$
(1,166,119)
$
(160,457)
$
747,603
$
24,743
$
772,346
Class A Common Stock
Class B Common Stock
Paid-in Capital
Accumulated Earnings
Treasury Stock
Accumulated Other Comprehensive Loss
AMC Networks Stockholders’ Equity
Noncontrolling Interests
Total Stockholders' Equity
Balance, December 31, 2019
$
639
$
115
$
286,491
$
1,609,428
$
(1,063,181)
$
(167,711)
$
665,781
$
25,724
$
691,505
Net income attributable to AMC Networks’ stockholders
—
—
—
145,268
—
—
145,268
—
145,268
Net income attributable to non-redeemable noncontrolling interests
—
—
—
—
—
—
—
700
700
Adoption of ASU 2016-13, credit losses
—
—
—
(1,956)
—
—
(1,956)
—
(1,956)
Distributions to noncontrolling member
—
—
—
—
—
—
—
(1,011)
(1,011)
Other comprehensive income (loss)
—
—
—
—
—
7,254
7,254
(670)
6,584
Share-based compensation expense
—
—
43,141
—
—
—
43,141
—
43,141
Treasury stock acquired
—
—
—
—
(102,938)
—
(102,938)
—
(102,938)
Restricted stock units converted to shares
4
—
(8,951)
—
—
—
(8,947)
—
(8,947)
Balance, September 30, 2020
$
643
$
115
$
320,681
$
1,752,740
$
(1,166,119)
$
(160,457)
$
747,603
$
24,743
$
772,346
See accompanying notes to consolidated financial statements.
4
AMC NETWORKS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands)
(unaudited)
Class A Common Stock
Class B Common Stock
Paid-in Capital
Accumulated Earnings
Treasury Stock
Accumulated Other Comprehensive Loss
AMC Networks Stockholders’ Equity
Noncontrolling Interests
Total Stockholders' Equity
Balance, June 30, 2019
$
639
$
115
$
258,150
$
1,501,082
$
(1,051,022)
$
(167,144)
$
541,820
$
26,693
$
568,513
Net income attributable to AMC Networks’ stockholders
—
—
—
116,923
—
—
116,923
—
116,923
Net income attributable to non-redeemable noncontrolling interests
—
—
—
—
—
—
—
1,772
1,772
Distributions to noncontrolling member
—
—
—
—
—
—
—
(705)
(705)
Settlement of treasury stock
—
—
832
—
—
—
832
—
832
Other comprehensive loss
—
—
—
—
—
(33,133)
(33,133)
(1,085)
(34,218)
Share-based compensation expense
—
—
13,841
—
—
—
13,841
—
13,841
Treasury stock acquired
—
—
—
—
(12,159)
—
(12,159)
—
(12,159)
Balance, September 30, 2019
$
639
$
115
$
272,823
$
1,618,005
$
(1,063,181)
$
(200,277)
$
628,124
$
26,675
$
654,799
Class A Common Stock
Class B Common Stock
Paid-in Capital
Accumulated Earnings
Treasury Stock
Accumulated Other Comprehensive Loss
AMC Networks Stockholders’ Equity
Noncontrolling Interests
Total Stockholders' Equity
Balance, December 31, 2018
$
633
$
115
$
239,767
$
1,228,942
$
(992,583)
$
(160,194)
$
316,680
$
28,528
$
345,208
Net income attributable to AMC Networks’ stockholders
—
—
—
389,063
—
—
389,063
—
389,063
Net income attributable to non-redeemable noncontrolling interests
—
—
—
—
—
—
—
2,842
2,842
Distributions to noncontrolling member
—
—
—
—
—
—
—
(3,439)
(3,439)
Other comprehensive loss
—
—
—
—
—
(40,083)
(40,083)
(1,256)
(41,339)
Share-based compensation expense
—
—
50,465
—
—
—
50,465
—
50,465
Proceeds from the exercise of stock options
—
—
4,630
—
—
—
4,630
—
4,630
Treasury stock acquired
—
—
985
—
(70,598)
—
(69,613)
—
(69,613)
Restricted stock units converted to shares
6
—
(23,024)
—
—
—
(23,018)
—
(23,018)
Balance, September 30, 2019
$
639
$
115
$
272,823
$
1,618,005
$
(1,063,181)
$
(200,277)
$
628,124
$
26,675
$
654,799
See accompanying notes to consolidated financial statements.
5
AMC NETWORKS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended September 30,
2020
2019
Cash flows from operating activities:
Net income including noncontrolling interests
$
158,756
$
407,368
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization
80,182
75,568
Impairment charges
130,411
—
Share-based compensation expense related to equity classified awards
43,141
50,465
Non-cash restructuring and other related charges
6,126
14,026
Amortization and write-off of program rights
622,204
696,326
Amortization of deferred carriage fees
21,088
14,624
Unrealized foreign currency transaction loss
9,242
489
Amortization of deferred financing costs and discounts on indebtedness
6,039
5,970
Loss on extinguishment of debt
2,908
—
Bad debt expense
340
3,628
Deferred income taxes
12,403
(65,245)
Write-down of non-marketable equity securities and note receivable
5,103
20,206
Other, net
(10,696)
(8,481)
Changes in assets and liabilities:
Accounts receivable, trade (including amounts due from related parties, net)
92,328
6,993
Prepaid expenses and other assets
79,098
(121,375)
Program rights and obligations, net
(565,267)
(676,718)
Income taxes payable
17,265
3,101
Deferred revenue
(2,234)
10,395
Deferred carriage fees, net
(15,057)
(14,409)
Accounts payable, accrued liabilities and other liabilities
(49,293)
(22,534)
Net cash provided by operating activities
644,087
400,397
Cash flows from investing activities:
Capital expenditures
(34,990)
(69,096)
Return of capital from investees
924
9,232
Acquisition of investment securities
(4,111)
—
Principal payment received on loan to investee
3,750
—
Proceeds from sale of investments
10,000
—
Net cash used in investing activities
(24,427)
(59,864)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt
6,000
1,521
Principal payments on long-term debt
(242,500)
(12,613)
Deemed repurchases of restricted stock units
(8,947)
(23,019)
Purchase of treasury stock
(102,938)
(70,598)
Proceeds from stock option exercises
—
4,630
Principal payments on finance lease obligations
(2,404)
(4,059)
Distributions to noncontrolling interests
(13,955)
(13,545)
Net cash used in financing activities
(364,744)
(117,683)
Net increase in cash and cash equivalents
254,916
222,850
Effect of exchange rate changes on cash and cash equivalents
774
(4,350)
Cash and cash equivalents at beginning of period
816,170
554,886
Cash and cash equivalents at end of period
$
1,071,860
$
773,386
See accompanying notes to condensed consolidated financial statements.
6
AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1. Description of Business and Basis of Presentation
Description of Business
AMC Networks Inc. ("AMC Networks") and its subsidiaries (collectively referred to as the "Company") own and operate entertainment businesses and assets. The Company is comprised of two operating segments:
•National Networks: Includes activities of our five national programming networks, AMC Studios operations and AMC Broadcasting & Technology. Our national programming networks are AMC, WE tv, BBC AMERICA, IFC and SundanceTV and also include our AMC Premiere service. Our AMC Studios operations produces original programming for our programming networks and also licenses such program rights worldwide. AMC Networks Broadcasting & Technology is our technical services business, which primarily services most of the national programming networks.
•International and Other: Includes AMC Networks International ("AMCNI"), our international programming businesses consisting of a portfolio of channels around the world; AMC Networks SVOD, consisting of our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, UMC), AMC+ and other subscription video on demand ("SVOD") initiatives; Levity, our production services and comedy venues business; and IFC Films, our independent film distribution business.
Basis of Presentation
Principles of Consolidation
The consolidated financial statements include the accounts of AMC Networks and its subsidiaries in which a controlling voting interest is maintained or variable interest entities ("VIEs") in which the Company has determined it is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation.
Investments in business entities in which the Company lacks control but does have the ability to exercise significant influence over operating and financial policies are accounted for using the equity method of accounting.
Unaudited Interim Financial Statements
These condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and Article 10 of Regulation S-X of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the Company's consolidated financial statements and notes thereto for the year ended December 31, 2019 contained in the Company's Annual Report on Form 10-K ("2019 Form 10-K") filed with the SEC. The condensed consolidated financial statements presented in this Quarterly Report on Form 10-Q are unaudited; however, in the opinion of management, such financial statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods presented.
The results of operations for interim periods are not necessarily indicative of the results that might be expected for future interim periods or for the full year ending December 31, 2020.
Risks and Uncertainties
In March 2020, the World Health Organization characterized the novel coronavirus ("COVID-19") a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The rapid spread of the pandemic and the continuously evolving responses to combat it have had a negative impact on the global economy.
The impact of COVID-19 and measures to prevent its spread are affecting our businesses in a number of ways. Beginning in mid-March, the Company has experienced adverse advertising sales impacts, suspended content production, which has led to delays in the creation and availability of substantially all of its programming, and the temporary closure of its comedy venues. In the third quarter of 2020, the Company commenced production activities, however substantially all Company employees continue to work remotely, and the Company continues to restrict business travel. If significant portions of our workforce, including key personnel, are unable to work effectively because of illness, government actions or other restrictions in connection with the COVID-19 pandemic, the impact of the pandemic on our businesses could be exacerbated.
The Company has evaluated and continues to evaluate the potential impact of the COVID-19 pandemic on its consolidated financial statements, including the impairment of goodwill (see Note 7) and indefinite-lived intangible assets and the fair value and collectability of receivables. The COVID-19 pandemic has had a material impact on the Company's operations since mid-March 2020. The Company cannot reasonably predict the ultimate impact of the COVID-19 pandemic, including the extent of any adverse impact on our business, results of operations and financial condition, which will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may
7
AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
continue to be, imposed in response to the pandemic, the effectiveness of actions taken to contain or mitigate the outbreak, the availability, safety and efficacy of a vaccine, and global economic conditions. The Company does not expect the COVID-19 pandemic and its related economic impact to affect its liquidity position or its ongoing ability to meet the covenants in its debt instruments.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates and judgments inherent in the preparation of the consolidated financial statements include the useful lives and methodologies used to amortize and assess recoverability of program rights, the estimated useful lives of intangible assets and the valuation and recoverability of goodwill and intangible assets.
Recently Adopted Accounting Standards
Effective January 1, 2020, the Company adopted Financial Accounting Standard Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, which changed the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking "expected loss" model that would generally result in the earlier recognition of allowances for losses. The Company adopted the standard using the modified retrospective approach and recorded a decrease to opening retained earnings of $