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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 March 31, 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 shareAMCXThe  NASDAQStock 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 April 24, 2020:
Class A Common Stock par value $0.01 per share40,556,233
Class B Common Stock par value $0.01 per share11,484,408




AMC NETWORKS INC. AND SUBSIDIARIES
FORM 10-Q
TABLE OF CONTENTS
 
Page
Item 1A. Risk Factors




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

March 31, 2020December 31, 2019
ASSETS
Current Assets:
Cash and cash equivalents$704,129  $816,170  
Accounts receivable, trade (less allowance for doubtful accounts of $8,610 and $5,733)
826,022  857,143  
Current portion of program rights, net17,059  426,624  
Prepaid expenses and other current assets195,191  230,360  
Total current assets1,742,401  2,330,297  
Property and equipment, net of accumulated depreciation of $352,655 and $347,302
289,519  283,752  
Program rights, net1,381,950  1,038,060  
Intangible assets, net507,136  524,531  
Goodwill686,835  701,980  
Deferred tax asset, net50,813  51,545  
Operating lease right-of-use asset168,503  170,056  
Other assets489,265  496,465  
Total assets$5,316,422  $5,596,686  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable$104,126  $94,306  
Accrued liabilities239,584  251,214  
Current portion of program rights obligations283,239  304,692  
Deferred revenue73,334  63,921  
Current portion of long-term debt70,625  56,250  
Current portion of lease obligations 33,857  33,959  
Total current liabilities804,765  804,342  
Program rights obligations210,173  239,813  
Long-term debt2,824,470  3,039,979  
Lease obligations219,709  211,047  
Deferred tax liability, net151,033  136,911  
Other liabilities156,909  163,638  
Total liabilities4,367,059  4,595,730  
Commitments and contingencies
Redeemable noncontrolling interests311,967  309,451  
Stockholders' equity:
Class A Common Stock, $0.01 par value, 360,000 shares authorized, 64,347 and 63,886 shares issued and 41,244 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 capital282,153  286,491  
Accumulated earnings1,676,139  1,609,428  
Treasury stock, at cost (23,102 and 19,808 shares Class A Common Stock, respectively)
(1,149,138) (1,063,181) 
Accumulated other comprehensive loss(196,364) (167,711) 
Total AMC Networks stockholders' equity613,548  665,781  
Non-redeemable noncontrolling interests23,848  25,724  
Total stockholders' equity637,396  691,505  
Total liabilities and stockholders' equity$5,316,422  $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 March 31,
 20202019
Revenues, net
$734,375  $784,221  
Operating expenses:
Technical and operating (excluding depreciation and amortization)
344,060  340,148  
Selling, general and administrative
184,649  172,512  
Depreciation and amortization26,730  24,056  
Restructuring and other related charges5,966  2,642  
Total operating expenses561,405  539,358  
Operating income172,970  244,863  
Other income (expense):
Interest expense(37,564) (39,645) 
Interest income4,555  4,200  
Loss on extinguishment of debt(2,908)   
Miscellaneous, net(29,939) (12,785) 
Total other (expense) income(65,856) (48,230) 
Income from operations before income taxes107,114  196,633  
Income tax expense(33,588) (46,476) 
Net income including noncontrolling interests73,526  150,157  
Net income attributable to noncontrolling interests(4,859) (6,760) 
Net income attributable to AMC Networks' stockholders$68,667  $143,397  
Net income per share attributable to AMC Networks' stockholders:
Basic$1.24  $2.53  
Diluted$1.22  $2.48  
Weighted average common shares:
Basic55,477  56,588  
Diluted56,061  57,725  
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 March 31,
 20202019
Net income including noncontrolling interests$73,526  $150,157  
Other comprehensive income (loss):
Foreign currency translation adjustment(27,121) (5,762) 
Unrealized loss on interest rate swaps(1,997) (639) 
Other comprehensive loss, before income taxes(29,118) (6,401) 
Income tax benefit465  149  
Other comprehensive loss, net of income taxes(28,653) (6,252) 
Comprehensive income44,873  143,905  
Comprehensive income attributable to noncontrolling interests
(3,698) (6,722) 
Comprehensive income attributable to AMC Networks' stockholders
$41,175  $137,183  
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
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—  —  —  68,667  —  —  68,667  —  68,667  
Net loss attributable to non-redeemable noncontrolling interests—  —  —  —  —  —  —  (267) (267) 
Adoption of ASU 2016-13, credit losses—  —  —  (1,956) —  —  (1,956) —  (1,956) 
Distributions to noncontrolling member—  —  —  —  —  —  —  (448) (448) 
Treasury stock not yet settled—  —  (10,988) —  —  —  (10,988) —  (10,988) 
Other comprehensive loss—  —  —  —  —  (28,653) (28,653) (1,161) (29,814) 
Share-based compensation expense—  —  15,512  —  —  —  15,512  —  15,512  
Treasury stock acquired—  —  —  —  (85,957) —  (85,957) —  (85,957) 
Restricted stock units converted to shares4  —  (8,862) —  —  —  (8,858) —  (8,858) 
Balance, March 31, 2020$643  $115  $282,153  $1,676,139  $(1,149,138) $(196,364) $613,548  $23,848  $637,396  


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
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—  —  —  143,397  —  —  143,397  —  143,397  
Net income attributable to non-redeemable noncontrolling interests—  —  —  —  —  —  —  942  942  
Distributions to noncontrolling member—  —  —  —  —  —  —  (361) (361) 
Settlement of treasury stock—  —  985  —  —  —  985  —  985  
Other comprehensive income—  —  —  —  —  (6,252) (6,252) 38  (6,214) 
Proceeds from the exercise of stock options—  —  4,630  —  —  —  4,630  —  4,630  
Share-based compensation expense—  —  19,899  —  —  —  19,899  —  19,899  
Treasury stock acquired—  —  —  —  (991) —  (991) —  (991) 
Restricted stock units converted to shares1  —  (22,959) —  —  —  (22,958) —  (22,958) 
Balance, March 31, 2019$634  $115  $242,322  $1,372,339  $(993,574) $(166,446) $455,390  $29,147  $484,537  

See accompanying notes to consolidated financial statements.
4


AMC NETWORKS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended March 31,
20202019
Cash flows from operating activities:
Net income including noncontrolling interests$73,526  $150,157  
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization26,730  24,056  
Share-based compensation expense related to equity classified awards15,512  19,899  
Non-cash restructuring and other related charges3,928  1,171  
Amortization and write-off of program rights223,982  205,275  
Amortization of deferred carriage fees6,783  2,710  
Unrealized foreign currency transaction loss (gain)7,848  (4,501) 
Amortization of deferred financing costs and discounts on indebtedness1,918  1,954  
Loss on extinguishment of debt2,908    
Bad debt expense1,211  2,353  
Deferred income taxes15,900  (8,858) 
Write-down of non-marketable equity securities and note receivable20,000  17,741  
Other, net1,044  1,142  
Changes in assets and liabilities:
Accounts receivable, trade (including amounts due from related parties, net)27,178  (1,429) 
Prepaid expenses and other assets17,532  (26,233) 
Program rights and obligations, net(221,627) (190,651) 
Income taxes payable369  40,114  
Deferred revenue9,522  (4,200) 
Deferred carriage fees, net(15,484) (422) 
Accounts payable, accrued liabilities and other liabilities(20,372) (58,591) 
Net cash provided by operating activities198,408  171,687  
Cash flows from investing activities:
Capital expenditures(12,916) (22,053) 
Return of capital from investees  3,908  
Principal payment received on loan to investee1,250    
Proceeds from sale of investments10,000    
Net cash used in investing activities(1,666) (18,145) 
Cash flows from financing activities:
Proceeds from the issuance of long-term debt5,000  2,521  
Principal payments on long-term debt(209,375) (3,238) 
Deemed repurchases of restricted stock units(8,858) (22,959) 
Purchase of treasury stock(85,957) (991) 
Proceeds from stock option exercises  4,630  
Principal payments on finance lease obligations(781) (1,309) 
Distributions to noncontrolling interests(3,081) (5,629) 
Net cash used in financing activities(303,052) (26,975) 
Net increase (decrease) in cash and cash equivalents from operations(106,310) 126,567  
Effect of exchange rate changes on cash and cash equivalents(5,731) 2,229  
Cash and cash equivalents at beginning of period816,170  554,886  
Cash and cash equivalents at end of period$704,129  $683,682  

See accompanying notes to condensed consolidated financial statements.
5

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, and UMC; 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 an increasingly 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 experienced adverse advertising sales impacts and suspended content production, which has led to delays in the creation and availability of some of its television programming. Operationally, nearly all Company employees are working remotely, and the Company has restricted 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 and indefinite-lived intangible assets and the fair value and collectibility of receivables. The ultimate impact of the COVID-19 pandemic, including the extent of any adverse impact on our business, results of operations and financial condition, will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the effectiveness of actions taken to contain or mitigate the outbreak, and global economic conditions. Although the effect of the pandemic may not be fully reflected in the Company’s business until future periods, the Company believes that the adverse impact of the COVID-19 pandemic will be material to its results of operations. The Company does not expect the
6

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
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 (the “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 $2.0 million, after taxes, for the cumulative-effect of the adoption.
Effective January 1, 2020, the Company adopted FASB ASU No. 2018-13, Fair Value Measurement (Topic 820). The standard changed the disclosure requirements related to transfers between Level I and II assets, as well as several aspects surrounding the valuation process and unrealized gains and losses related to Level III assets. The adoption of the standard did not have any effect on the Company's consolidated financial statements.
Effective January 1, 2020, the Company adopted FASB ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The standard amended prior guidance to align the accounting for costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs associated with developing or obtaining internal-use software. Capitalized implementation costs must be expensed over the term of the hosting arrangement and presented in the same line item in the income statement as the fees associated with the hosting element (service) of the arrangement. The adoption of the standard did not have a material effect on the Company's consolidated financial statements.
Effective January 1, 2020, the Company adopted FASB ASU No. 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials. The standard aligns the accounting for production costs of episodic television series with the accounting for production costs of films. In addition, the standard modifies certain aspects of the capitalization, impairment, presentation and disclosure requirements in Accounting Standards Codification (“ASC”) 926-20 and the impairment, presentation and disclosure requirements in ASC 920-350. The Company adopted the standard on a prospective basis. See Note 5 for further information.
Recently Issued Accounting Pronouncements
In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 - Income Taxes. These changes are effective for the first quarter of 2021, with early adoption permitted. The Company is currently evaluating the impact the adoption will have on its consolidated financial statements.
Note 2. Revenue Recognition
Transaction Price Allocated to Future Performance Obligations
As of March 31, 2020, other than contracts for which the Company has applied the practical expedients, the aggregate amount of transaction price allocated to future performance obligations was not material to our consolidated revenues.
Contract Balances from Contracts with Customers
7

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers.
(In thousands)March 31, 2020December 31, 2019
Balances from contracts with customers:
     Accounts receivable (including long-term, included in Other assets)$1,109,949  $1,121,834  
     Contract assets, short-term (included in Other current assets)7,303  7,283  
     Contract assets, long-term (included in Other assets)2,877  9,964  
     Contract liabilities (Deferred revenue)73,334  63,921  
Revenue recognized for the three months ended March 31, 2020 relating to the contract liability at December 31, 2019 was $11.7 million.
Note 3. Net Income per Share
The following is a reconciliation between basic and diluted weighted average shares outstanding:
(In thousands)Three Months Ended March 31,
20202019
Basic weighted average common shares outstanding55,477  56,588  
Effect of dilution:
Stock options  33  
Restricted stock units584  1,104  
Diluted weighted average common shares outstanding56,061  57,725  
Approximately 1.3 million and 1.5 million restricted stock units outstanding as of March 31, 2020 and March 31, 2019 have been excluded from diluted weighted average common shares outstanding since a performance condition for these awards was not met in each of the respective periods. As of March 31, 2020, there were 0.4 million restricted stock units that would have been anti-dilutive to the diluted weighted average common shares outstanding.
Stock Repurchase Program
The Company's Board of Directors has authorized a program to repurchase up to $1.5 billion of its outstanding shares of common stock (the "Stock Repurchase Program"). The Stock Repurchase Program has no pre-established closing date and may be suspended or discontinued at any time. For the three months ended March 31, 2020, the Company repurchased 3.3 million shares of its Class A Common Stock at an average purchase price of approximately $26.09 per share. As of March 31, 2020, the Company has $402.9 million of authorization remaining for repurchase under the Stock Repurchase Program.
Note 4. Restructuring and Other Related Charges
Restructuring and other related charges of $6.0 million for the three months ended March 31, 2020 related to restructuring costs associated with termination of distribution in certain territories as well as severance and other personnel related costs associated with previously announced restructuring activities.
The following table summarizes the restructuring and other related charges recognized by operating segment:
(In thousands)Three Months Ended March 31,
20202019
National Networks$1,509  $303  
International & Other4,457  3,035  
Inter-segment eliminations  (696) 
Total restructuring and other related charges$5,966  $2,642  

The following table summarizes the accrued restructuring costs:
8

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
(In thousands)Severance and employee-related costsOther exit costsTotal
December 31, 2019$27,407  $221  $27,628  
Charges3,081  2,885  5,966  
Cash payments(16,402) (100) (16,502) 
Non-cash adjustments(1,251) (2,894) (4,145) 
Currency translation      
Balance, March 31, 2020$12,835  $112  $12,947  
Accrued restructuring costs of $12.9 million are included in accrued liabilities in the consolidated balance sheet at March 31, 2020.
Note 5. Program Rights
Effective January 1, 2020, the Company adopted FASB ASU No. 2019-02, Improvements to Accounting for Costs of Films and License Agreements for Program Materials. The new guidance impacts the Company as follows:
Allows for the classification of acquired/licensed program rights as long-term assets. Previously, the Company reported a portion of these rights in current assets. Advances for live programming rights made prior to the live event and acquired/licensed program rights with license terms of less than one-year continue to be reported in current assets.
Aligns the capitalization of production costs for episodic television programs with the capitalization of production costs for theatrical content. Previously, theatrical content production costs could be fully capitalized while episodic television production costs were generally limited to the amount of contracted revenues.
Introduces the concept of “predominant monetization strategy” to classify capitalized program rights for purposes of amortization and impairment as follows:
Individual program rights - programming value is predominantly derived from third-party revenues that are directly attributable to the specific film or television title (e.g., theatrical revenues, significant in-show advertising on the Company’s programming networks or specific content licensing revenues).
Group program rights - programming value is predominantly derived from third-party revenues that are not directly attributable to a specific film or television title (e.g., library of program rights for purpose of the Company’s programming networks or subscription revenue for direct-to-consumer SVOD targeted streaming services).
The determination of the predominant monetization strategy is made at commencement of production and is based on the means by which we derive third-party revenues from use of the programming. The classification of program rights as individual or group only changes if there is a significant change to the title’s monetization strategy relative to its initial assessment.
9

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Total capitalized produced and licensed content by predominant monetization strategy is as follows:
 As of March 31, 2020
 Predominantly Monetized Individually  Predominantly Monetized as a Group  Total
Owned original program rights, net:
Completed$230,459  $  $230,459  
In-production and in-development 198,347    198,347  
Total owned original program rights, net$428,806  $  $428,806  
Licensed program rights, net:
Licensed film and acquired series$9,462  $605,314  $614,776  
Licensed originals289,242    289,242  
Advances and content versioning costs  66,185  66,185  
Total licensed program rights, net298,704  671,499  970,203  
Program rights, net $727,510  $671,499  $1,399,009  
Current portion of program rights, net17,059  
Program rights, net (long-term)1,381,950  
$1,399,009  
Amortization of owned and licensed program rights is as follows:
Three months ended March 31, 2020
Predominantly Monetized IndividuallyPredominantly Monetized as a GroupTotal
Owned original program rights$105,561  $  $105,561  
Licensed program rights21,352  97,069  118,421  
Program rights amortization$126,913  $97,069  $223,982  

Rights to programming, including feature films and episodic series, acquired under license agreements are stated at the lower of unamortized cost or fair value. Such licensed rights along with the related obligations are recorded at the contract value when a license agreement is executed, unless there is uncertainty with respect to either cost, acceptability or availability. If such uncertainty exists, those rights and obligations are recorded at the earlier of when the uncertainty is resolved or the license period begins. Costs are amortized to technical and operating expense on a straight-line or accelerated basis, based on the expected exploitation strategy of the rights, over a period not to exceed the respective license periods.
Owned original programming costs, including estimated participation and residual costs, qualifying for capitalization as program rights are amortized to technical and operating expense over their estimated useful lives, commencing upon the first airing, based on attributable revenue for airings to date as a percentage of total projected attributable revenue, or ultimate revenue (individual-film-forecast-computation method). Projected attributable revenue is based on previously generated revenues for similar content in established markets, primarily consisting of distribution and advertising revenues, and projected program usage. Projected program usage is based on the Company's current expectation of future exhibitions taking into account historical usage of similar content. Projected attributable revenue can change based upon programming market acceptance, levels of distribution and advertising revenue and decisions regarding planned program usage. These calculations require management to make assumptions and to apply judgment regarding revenue and planned usage. Accordingly, the Company periodically reviews revenue estimates and planned usage and revises its assumptions if necessary, which could impact the timing of amortization expense or result in a write-down to fair value. Any capitalized development costs for programs that the Company determines will not be produced are written off.
10

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
The Company periodically reviews the programming usefulness of its licensed and owned original program rights based on several factors, including expected future revenue generation from airings on the Company's networks and other exploitation opportunities, ratings, type and quality of program material, standards and practices, and fitness for exhibition through various forms of distribution. If it is determined that film or other program rights have limited, or no, future programming usefulness, the useful life is updated, which generally results in a write-off of the unamortized cost to technical and operating expense in the consolidated statements of income. There were no program rights write-offs for the three months ended March 31, 2020. Program rights write-offs, included in technical and operating expense, were $3.3 million for the three months ended March 31, 2019.
Note 6. Investments
The Company holds several investments and loans in non-consolidated entities which are included in Other assets in the condensed consolidated balance sheet. Equity method investments were $66.7 million at March 31, 2020 and $69.1 million at December 31, 2019.
Marketable Equity Securities
The Company classifies publicly traded investments with readily determinable fair values that are not accounted for under the equity method as marketable equity securities. Marketable equity securities are recorded at cost and adjusted to fair value at each reporting period. The changes in fair value between measurement dates are recorded in realized and unrealized gains (losses) on equity securities, included in Miscellaneous, net in the condensed consolidated statement of income. Investments in marketable equity securities were $3.3 million at March 31, 2020 and $4.4 million at December 31, 2019.
Non-marketable Equity Securities
The Company classifies investments without readily determinable fair values that are not accounted for under the equity method as non-marketable equity securities. The accounting guidance requires non-marketable equity securities to be recorded at cost and adjusted to fair value at each reporting period. However, the guidance allows for a measurement alternative, which is to record the investments at cost, less impairment, if any, and subsequently adjust for observable price changes of identical or similar investments of the same issuer. The Company applies this measurement alternative to its non-marketable equity securities. When an observable event occurs, the Company estimates the fair values of its non-marketable equity securities based on Level 2 inputs that are derived from observable price changes of similar securities adjusted for insignificant differences in rights and obligations. The changes in value are recorded in realized and unrealized gains (losses) on equity securities, included in Miscellaneous, net in the condensed consolidated statement of income.
Investments in non-marketable equity securities were $41.8 million at March 31, 2020 and $61.8 million at December 31, 2019. For the three months ended March 31, 2020 and March 31, 2019, the Company recognized impairment charges of $20.0 million and $17.7 million, respectively, related to the write-down of certain non-marketable equity securities and a note receivable, included in Miscellaneous, net in the condensed consolidated statement of income.
Note 7. Goodwill and Other Intangible Assets
The carrying amount of goodwill, by operating segment is as follows:
(In thousands)National NetworksInternational
and Other
Total
December 31, 2019$237,103  $464,877  $701,980  
Amortization of "second component" goodwill(332)