Company Quick10K Filing
AMC Networks
Price48.14 EPS8
Shares57 P/E6
MCap2,754 P/FCF7
Net Debt2,368 EBIT657
TEV5,123 TEV/EBIT8
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-02
10-Q 2020-06-30 Filed 2020-08-05
10-Q 2020-03-31 Filed 2020-05-05
10-K 2019-12-31 Filed 2020-02-27
10-Q 2019-09-30 Filed 2019-10-31
10-Q 2019-06-30 Filed 2019-07-31
10-Q 2019-03-31 Filed 2019-05-01
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-11-01
10-Q 2018-06-30 Filed 2018-08-02
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-02-24
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-02-25
10-Q 2015-09-30 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-04
10-K 2014-12-31 Filed 2015-02-26
10-Q 2014-09-30 Filed 2014-11-06
10-Q 2014-06-30 Filed 2014-08-07
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-02-27
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-08
10-Q 2013-03-31 Filed 2013-05-09
10-Q 2012-09-30 Filed 2012-11-08
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-10
10-K 2011-12-31 Filed 2012-03-15
10-Q 2011-09-30 Filed 2011-11-10
10-Q 2011-06-30 Filed 2011-08-11
8-K 2020-11-18 Exit Costs
8-K 2020-11-02 Earnings, Exhibits
8-K 2020-10-16 Officers, Exhibits
8-K 2020-09-10 Officers, Other Events, Exhibits
8-K 2020-08-04 Earnings, Exhibits
8-K 2020-07-02 Officers
8-K 2020-06-17
8-K 2020-05-05
8-K 2020-03-27
8-K 2020-02-26
8-K 2019-10-31
8-K 2019-07-31
8-K 2019-06-14
8-K 2019-05-01
8-K 2019-02-28
8-K 2018-11-01
8-K 2018-10-12
8-K 2018-08-02
8-K 2018-07-29
8-K 2018-06-14
8-K 2018-06-13
8-K 2018-05-10
8-K 2018-03-01
8-K 2018-02-26

AMCX 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements.
Note 1. Description of Business and Basis of Presentation
Note 2. Revenue Recognition
Note 3. Net Income per Share
Note 4. Restructuring and Other Related Charges
Note 5. Program Rights
Note 6. Investments
Note 7. Goodwill and Other Intangible Assets
Note 8. Accrued Liabilities
Note 9. Long - Term Debt
Note 10. Leases
Note 11. Fair Value Measurement
Note 12. Derivative Financial Instruments
Note 13. Income Taxes
Note 14. Commitments and Contingencies
Note 15. Equity Plans
Note 16. Redeemable Noncontrolling Interests
Note 17. Related Party Transactions
Note 18. Cash Flows
Note 19. Segment Information
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits.
EX-22 amcx-9302020xex22.htm
EX-31.1 amcx-9302020xex311.htm
EX-31.2 amcx-9302020xex312.htm
EX-32 amcx-9302020xex32.htm

AMC Networks Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
10.07.85.63.51.3-0.92012201420172020
Assets, Equity
0.80.60.50.30.20.02012201420172020
Rev, G Profit, Net Income
0.80.60.40.1-0.1-0.32012201420172020
Ops, Inv, Fin

amcx-20200930
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

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)

Delaware27-5403694
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
11 Penn Plaza,
New York,NY10001
(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 classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.01 per shareAMCXTheNASDAQStock 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.    Yes  þ    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).    Yes  þ    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 filerþAccelerated 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:
Class A Common Stock par value $0.01 per share29,754,780
Class B Common Stock par value $0.01 per share11,484,408




AMC NETWORKS INC. AND SUBSIDIARIES
FORM 10-Q
TABLE OF CONTENTS
 
Page




PART I. FINANCIAL INFORMATION
Item 1.    Financial Statements.
AMC NETWORKS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(unaudited)

September 30, 2020December 31, 2019
ASSETS
Current Assets:
Cash and cash equivalents$1,071,860 $816,170 
Accounts receivable, trade (less allowance for doubtful accounts of $9,345 and $5,733)
768,506 857,143 
Current portion of program rights, net17,933 426,624 
Prepaid expenses and other current assets174,682 230,360 
Total current assets2,032,981 2,330,297 
Property and equipment, net of accumulated depreciation of $254,312 and $347,302
255,729 283,752 
Program rights, net1,336,612 1,038,060 
Intangible assets, net417,778 524,531 
Goodwill673,810 701,980 
Deferred tax asset, net39,778 51,545 
Operating lease right-of-use asset151,801 170,056 
Other assets477,938 496,465 
Total assets$5,386,427 $5,596,686 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable$80,967 $94,306 
Accrued liabilities281,023 251,214 
Current portion of program rights obligations302,061 304,692 
Deferred revenue61,557 63,921 
Current portion of long-term debt76,000 56,250 
Current portion of lease obligations 33,519 33,959 
Total current liabilities835,127 804,342 
Program rights obligations198,197 239,813 
Long-term debt2,791,091 3,039,979 
Lease obligations209,549 211,047 
Deferred tax liability, net135,476 136,911 
Other liabilities130,244 163,638 
Total liabilities4,299,684 4,595,730 
Commitments and contingencies
Redeemable noncontrolling interests314,397 309,451 
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 capital320,681 286,491 
Accumulated earnings1,752,740 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' equity747,603 665,781 
Non-redeemable noncontrolling interests24,743 25,724 
Total stockholders' equity772,346 691,505 
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,
 2020201920202019
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 amortization27,547 25,619 80,182 75,568 
Impairment charges  130,411  
Restructuring and other related charges4,406 10,191 13,879 29,995 
Total operating expenses514,538 550,159 1,673,432 1,691,559 
Operating income139,477 168,438 361,249 583,558 
Other income (expense):
Interest expense(33,418)(39,621)(105,283)(118,982)
Interest income2,994 4,626 11,276 13,571 
Loss on extinguishment of debt  (2,908) 
Miscellaneous, net11,138 (1,490)(10,088)(16,972)
Total other (expense) income(19,286)(36,485)(107,003)(122,383)
Income from operations before income taxes120,191 131,953 254,246 461,175 
Income tax expense(52,195)(8,727)(95,490)(53,807)
Net income including noncontrolling interests67,996 123,226 158,756 407,368 
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:
Basic52,346 55,847 53,374 56,339 
Diluted52,904 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,
 2020201920202019
Net income including noncontrolling interests$67,996 $123,226 $158,756 $407,368 
Other comprehensive income (loss):
Foreign currency translation adjustment21,475 (33,281)7,383 (38,490)
Unrealized gain (loss) on interest rate swaps615 (187)(1,041)(2,076)
Other comprehensive income (loss), before income taxes22,090 (33,468)6,342 (40,566)
Income tax (expense) benefit(144)335 242 483 
Other comprehensive income (loss), net of income taxes21,946 (33,133)6,584 (40,083)
Comprehensive income89,942 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 EarningsTreasury
Stock
Accumulated
Other
Comprehensive
Loss
AMC Networks Stockholders’
Equity
Noncontrolling InterestsTotal 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 EarningsTreasury
Stock
Accumulated
Other
Comprehensive
Loss
AMC Networks Stockholders’
Equity
Noncontrolling InterestsTotal 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 shares4 — (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 EarningsTreasury
Stock
Accumulated
Other
Comprehensive
Loss
AMC Networks Stockholders’
Equity
Noncontrolling InterestsTotal 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 EarningsTreasury
Stock
Accumulated
Other
Comprehensive
Loss
AMC Networks Stockholders’
Equity
Noncontrolling InterestsTotal 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 shares6 — (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,
20202019
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 amortization80,182 75,568 
Impairment charges130,411  
Share-based compensation expense related to equity classified awards43,141 50,465 
Non-cash restructuring and other related charges6,126 14,026 
Amortization and write-off of program rights622,204 696,326 
Amortization of deferred carriage fees21,088 14,624 
Unrealized foreign currency transaction loss9,242 489 
Amortization of deferred financing costs and discounts on indebtedness6,039 5,970 
Loss on extinguishment of debt2,908  
Bad debt expense340 3,628 
Deferred income taxes12,403 (65,245)
Write-down of non-marketable equity securities and note receivable5,103 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 assets79,098 (121,375)
Program rights and obligations, net(565,267)(676,718)
Income taxes payable17,265 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 activities644,087 400,397 
Cash flows from investing activities:
Capital expenditures(34,990)(69,096)
Return of capital from investees924 9,232 
Acquisition of investment securities(4,111) 
Principal payment received on loan to investee3,750  
Proceeds from sale of investments10,000  
Net cash used in investing activities(24,427)(59,864)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt6,000 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 equivalents254,916 222,850 
Effect of exchange rate changes on cash and cash equivalents774 (4,350)
Cash and cash equivalents at beginning of period816,170 554,886 
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 $