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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, 2022
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 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 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 29, 2022:
Class A Common Stock par value $0.01 per share31,434,451
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)
March 31, 2022December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents$821,626 $892,221 
Accounts receivable, trade (less allowance for doubtful accounts of $8,029 and $8,030)
773,273 815,444 
Current portion of program rights, net15,104 10,068 
Prepaid expenses and other current assets357,399 282,453 
Total current assets1,967,402 2,000,186 
Property and equipment, net of accumulated depreciation of $299,737 and $286,133
221,294 225,791 
Program rights, net1,855,025 1,731,838 
Intangible assets, net388,706 399,434 
Goodwill701,239 709,344 
Deferred tax assets, net12,041 11,334 
Operating lease right-of-use assets119,774 125,866 
Other assets484,253 545,153 
Total assets$5,749,734 $5,748,946 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable$161,968 $173,207 
Accrued liabilities280,906 340,407 
Current portion of program rights obligations321,308 307,054 
Deferred revenue205,432 167,071 
Current portion of long-term debt33,750 33,750 
Current portion of lease obligations 38,376 36,596 
Total current liabilities1,041,740 1,058,085 
Program rights obligations183,594 218,321 
Long-term debt, net2,798,179 2,804,720 
Lease obligations141,784 151,839 
Deferred tax liabilities, net185,755 163,600 
Other liabilities133,948 165,860 
Total liabilities4,485,000 4,562,425 
Commitments and contingencies
Redeemable noncontrolling interests287,756 283,849 
Stockholders' equity:
Class A Common Stock, $0.01 par value, 360,000 shares authorized, 66,027 and 65,485 shares issued and 31,434 and 30,892 shares outstanding, respectively
660 655 
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 capital335,803 347,971 
Accumulated earnings2,202,235 2,098,047 
Treasury stock, at cost (34,593 and 34,593 shares Class A Common Stock, respectively)
(1,419,882)(1,419,882)
Accumulated other comprehensive loss(193,580)(175,818)
Total AMC Networks stockholders' equity925,351 851,088 
Non-redeemable noncontrolling interests51,627 51,584 
Total stockholders' equity976,978 902,672 
Total liabilities and stockholders' equity$5,749,734 $5,748,946 
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,
 20222021
Revenues, net
$712,157 $691,741 
Operating expenses:
Technical and operating (excluding depreciation and amortization)
284,237 280,572 
Selling, general and administrative
230,653 191,535 
Depreciation and amortization22,590 25,246 
Impairment and other charges 16,055 
Restructuring and other related charges 8,625 
Total operating expenses537,480 522,033 
Operating income174,677 169,708 
Other income (expense):
Interest expense(30,797)(34,742)
Interest income2,460 2,342 
Loss on extinguishment of debt (22,074)
Miscellaneous, net5,828 5,406 
Total other expense(22,509)(49,068)
Income from operations before income taxes152,168 120,640 
Income tax expense(41,634)(25,915)
Net income including noncontrolling interests110,534 94,725 
Net income attributable to noncontrolling interests(6,346)(7,704)
Net income attributable to AMC Networks' stockholders$104,188 $87,021 
Net income per share attributable to AMC Networks' stockholders:
Basic$2.44 $2.08 
Diluted$2.38 $2.02 
Weighted average common shares:
Basic42,780 41,930 
Diluted43,715 43,171 
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,
 20222021
Net income including noncontrolling interests$110,534 $94,725 
Other comprehensive income (loss):
Foreign currency translation adjustment(18,593)(22,024)
Unrealized gain on interest rate swaps 610 
Other comprehensive loss, before income taxes(18,593)(21,414)
Income tax expense (143)
Other comprehensive loss, net of income taxes(18,593)(21,557)
Comprehensive income91,941 73,168 
Comprehensive income attributable to noncontrolling interests
(5,515)(7,434)
Comprehensive income attributable to AMC Networks' stockholders
$86,426 $65,734 
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, December 31, 2021$655 $115 $347,971 $2,098,047 $(1,419,882)$(175,818)$851,088 $51,584 $902,672 
Net income attributable to AMC Networks’ stockholders— — — 104,188 — — 104,188 — 104,188 
Net income attributable to non-redeemable noncontrolling interests— — — — — — — 2,439 2,439 
Distribution to noncontrolling member— — — — — — — (1,565)(1,565)
Other comprehensive income— — — — — (17,762)(17,762)(831)(18,593)
Share-based compensation expenses— — 8,129 — — — 8,129 — 8,129 
Net share issuances under employee stock plans5 — (20,297)— — — (20,292)— (20,292)
Balance, March 31, 2022$660 $115 $335,803 $2,202,235 $(1,419,882)$(193,580)$925,351 $51,627 $976,978 



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, 2020$646 $115 $323,425 $1,847,451 $(1,419,882)$(134,950)$616,805 $26,296 $643,101 
Net income attributable to AMC Networks’ stockholders— — — 87,021 — — 87,021 — 87,021 
Net income attributable to non-redeemable noncontrolling interests— — — — — — — 1,134 1,134 
Transfer from redeemable noncontrolling interests— — — — — — — 18,367 18,367 
Contribution from noncontrolling member— — — — — — — 2,582 2,582 
Other comprehensive income— — — — — (21,287)(21,287)(270)(21,557)
Proceeds from the exercise of stock options— — 9,795 — — — 9,795 — 9,795 
Share-based compensation expenses— — 13,446 — — — 13,446 — 13,446 
Net share issuances under employee stock plans7 — (32,335)— — — (32,328)— (32,328)
Balance, March 31, 2021$653 $115 $314,331 $1,934,472 $(1,419,882)$(156,237)$673,452 $48,109 $721,561 


See accompanying notes to condensed consolidated financial statements.







4


AMC NETWORKS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended March 31,
20222021
Cash flows from operating activities:
Net income including noncontrolling interests$110,534 $94,725 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization22,590 25,246 
Impairment and other charges 16,055 
Share-based compensation expenses related to equity classified awards8,129 13,446 
Non-cash restructuring and other related charges 4,329 
Amortization of program rights192,852 150,987 
Amortization of deferred carriage fees8,657 4,867 
Unrealized foreign currency transaction (gain) loss1,073 (13,758)
Amortization of deferred financing costs and discounts on indebtedness1,898 2,048 
Loss on extinguishment of debt 22,074 
Bad debt expense820 771 
Deferred income taxes21,430 4,646 
(Gain) loss on investments(4,293)5,366 
Other, net(2,447)(755)
Changes in assets and liabilities:
Accounts receivable, trade (including amounts due from related parties, net)37,510 36,996 
Prepaid expenses and other assets(1,910)29,383 
Program rights and obligations, net(340,300)(237,951)
Income taxes payable8,039 11,138 
Deferred revenue6,715 5,671 
Deferred carriage fees, net(9,934)(57)
Accounts payable, accrued liabilities and other liabilities(84,918)(67,664)
Net cash provided by (used in) operating activities(23,555)107,563 
Cash flows from investing activities:
Capital expenditures(11,528)(8,537)
Return of capital from investees1,771  
Acquisition of investments (25,694)
Cash paid on distribution of business (7,052)
Principal payment received on loan to investee 1,875 
Proceeds from sale of investments 95,370 
Net cash provided by (used in) investing activities(9,757)55,962 
Cash flows from financing activities:
Proceeds from the issuance of long-term debt 984,500 
Principal payments on long-term debt(8,438)(1,015,000)
Deemed repurchases of restricted stock units(20,292)(32,328)
Proceeds from stock option exercises 9,795 
Principal payments on finance lease obligations(716)(1,095)
Contributions from noncontrolling interests 2,702 
Distributions to noncontrolling interests(1,565)(2,464)
Net cash used in financing activities(31,011)(53,890)
Net increase (decrease) in cash and cash equivalents from operations(64,323)109,635 
Effect of exchange rate changes on cash and cash equivalents(6,272)(5,038)
Cash and cash equivalents at beginning of period892,221 888,526 
Cash and cash equivalents at end of period$821,626 $993,123 
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," "we," "us," or "our") own and operate entertainment businesses and assets. The Company is comprised of two operating segments:
Domestic Operations: Includes our programming services and AMC Broadcasting & Technology. Our programming services consist of our five national programming networks, our streaming services, our AMC Studios operation and IFC Films. Our national programming networks are AMC, WE tv, BBC AMERICA, IFC, and SundanceTV. Our streaming services consist of our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE), AMC+ and other streaming initiatives. Our AMC Studios operation produces original programming for our programming networks and also licenses such programming worldwide and IFC Films is our film distribution business. AMC Networks Broadcasting & Technology, our technical services business, 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, and 25/7 Media, our production services 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, 2021 contained in the Company's Annual Report on Form 10-K ("2021 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, 2022.
Risks and Uncertainties
The Company continues to monitor the ongoing impact of the COVID-19 pandemic on all aspects of its business. 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 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, the acceptance, safety and efficacy of vaccines, 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.
Reclassifications
Certain reclassifications were made to the prior period amounts to conform to the current period presentation.
6

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)

Note 2. Revenue Recognition
Transaction Price Allocated to Future Performance Obligations
As of March 31, 2022, other than contracts for which the Company has applied the practical expedients, the aggregate amount of transaction price allocated to future performance obligations was not material to our consolidated revenues.
Contract Balances from Contracts with Customers
The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers.
(In thousands)March 31, 2022December 31, 2021
Balances from contracts with customers:
     Accounts receivable (including long-term, included in Other assets)$1,031,446 $1,106,225 
     Contract assets, short-term (included in Prepaid expenses and other current assets)139,079 69,351 
     Contract assets, long-term (included in Other assets)2,126 29,323 
     Contract liabilities (Deferred revenue)205,432 167,071 
     Contract liabilities (Deferred revenue included in Other liabilities)218 31,832 
Revenue recognized for the three months ended March 31, 2022 and 2021 relating to the contract liability at December 31, 2021 and 2020 was $29.4 million and $7.7 million, respectively.
Note 3. Net Income per Share
The following is a reconciliation between basic and diluted weighted average common shares outstanding:
(In thousands)Three Months Ended March 31,
20222021
Basic weighted average common shares outstanding42,780 41,930 
Effect of dilution:
Stock options 12 
Restricted stock units935 1,229 
Diluted weighted average common shares outstanding43,715 43,171 
As of March 31, 2022 and March 31, 2021, 0.2 million and 0.4 million, respectively, of restricted stock units have been excluded from diluted weighted average common shares outstanding, as their impact would have been anti-dilutive.
Stock Repurchase Program
The Company's Board of Directors 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, 2022 and 2021, the Company did not repurchase any shares of its Class A Common Stock. As of March 31, 2022, the Company had $135.3 million of authorization remaining for repurchase under the Stock Repurchase Program.
Note 4. Impairment and Other Charges
There were no impairment and other charges for the three months ended March 31, 2022.
In March 2021, the Company completed a spin-off of the live comedy venue and talent management businesses ("LiveCo") of Levity Entertainment Group, LLC. In connection with the transaction, the Company effectively exchanged all of its rights and interests in LiveCo for the release of the Company's obligations, principally related to leases. As a result of this divestiture, the Company recognized a loss on the disposal of $16.1 million reflecting the net assets transferred (consisting of property and equipment, lease right-of-use assets and intangibles, partially offset by lease and other obligations), which is included in Impairment and other charges. The Company retained its interest in the production services business of Levity Entertainment Group, LLC, which was renamed 25/7 Media Holdings, LLC following the spin-off.
Note 5. Restructuring and Other Related Charges
There were no restructuring and other related charges for the three months ended March 31, 2022.
7

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Restructuring and other related charges of $8.6 million for the three months ended March 31, 2021, consisted of $4.1 million of severance costs associated with the restructuring plan announced in November 2020 and $4.5 million at AMCNI related to the termination of distribution in certain international territories.
The following table summarizes the restructuring and other related charges recognized by operating segment:
(In thousands)Three Months Ended March 31,
2021
Domestic Operations$2,427 
International & Other4,490 
Corporate / Inter-segment eliminations1,708 
Total restructuring and other related charges$8,625 

Note 6. Program Rights
Total capitalized produced and licensed content by predominant monetization strategy is as follows:
March 31, 2022
(In thousands) Predominantly Monetized Individually  Predominantly Monetized as a Group  Total
Owned original program rights, net:
Completed$248,085 $165,975 $414,060 
In-production and in-development 128,173 321,724 449,897 
Total owned original program rights, net$376,258 $487,699 $863,957 
Licensed program rights, net:
Licensed film and acquired series$5,797 $598,519 $604,316 
Licensed originals62,367 189,300 251,667 
Advances and content versioning costs26,600 123,589 150,189 
Total licensed program rights, net94,764 911,408 1,006,172 
Program rights, net $471,022 $1,399,107 $1,870,129 
Current portion of program rights, net$15,104 
Program rights, net (long-term)1,855,025 
$1,870,129 

8

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
December 31, 2021
(In thousands) Predominantly Monetized Individually  Predominantly Monetized as a Group  Total
Owned original program rights, net:
Completed$185,228 $127,470 $312,698 
In-production and in-development 161,881 264,927 426,808 
Total owned original program rights, net$347,109 $392,397 $739,506 
Licensed program rights, net:
Licensed film and acquired series$7,005 $620,935 $627,940 
Licensed originals61,923 148,063 209,986 
Advances and content versioning costs57,278 107,196 164,474 
Total licensed program rights, net126,206 876,194 1,002,400 
Program rights, net $473,315 $1,268,591 $1,741,906 
Current portion of program rights, net$10,068 
Program rights, net (long-term)1,731,838 
$1,741,906 

Amortization of owned and licensed program rights, included in Technical and operating expenses on the condensed consolidated statements of income, is as follows:
Three Months Ended March 31, 2022
(In thousands)Predominantly Monetized IndividuallyPredominantly Monetized as a GroupTotal
Owned original program rights$49,840 $16,935 $66,775 
Licensed program rights7,608 118,469 126,077 
Program rights amortization$57,448 $135,404 $192,852 
Three Months Ended March 31, 2021
(In thousands)Predominantly Monetized IndividuallyPredominantly Monetized as a GroupTotal
Owned original program rights$33,906 $4,566 $38,472 
Licensed program rights25,020 87,495 112,515 
Program rights amortization$58,926 $92,061 $150,987 
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 expenses in the consolidated statements of income. There were no significant program rights write-offs included in technical and operating expense for the three months ended March 31, 2022 or 2021.
9

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Note 7. Investments
The Company holds several investments in and loans to non-consolidated entities which are included in Other assets in the condensed consolidated balance sheet. Equity method investments were $87.1 million at March 31, 2022 and $93.7 million at December 31, 2021.
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 miscellaneous, net in the condensed consolidated statement of income. Investments in marketable equity securities were $10.1 million at March 31, 2022 and $5.8 million at December 31, 2021. There were $4.3 million unrealized gains and $5.4 million realized losses on marketable equity securities for the three months ended March 31, 2022 and 2021, respectively, included in miscellaneous, net in the condensed consolidated statement of income.
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. Investments in non-marketable equity securities were $37.7 million at March 31, 2022 and December 31, 2021. The changes in value, if any, are recorded in miscellaneous, net in the condensed consolidated statement of income.
Note 8. Goodwill and Other Intangible Assets
The carrying amount of goodwill, by operating segment is as follows:
(In thousands)Domestic OperationsInternational
and Other
Total
December 31, 2021$353,470 $355,874 $709,344 
Purchase accounting adjustments(1,408) (1,408)
Amortization of "second component" goodwill(336) (336)
Foreign currency translation (6,361)(6,361)
March 31, 2022$351,726 $349,513 $701,239 
As of March 31, 2022 and December 31, 2021, accumulated impairment charges in the International and Other segment totaled $123.1 million.
The purchase accounting adjustments of $1.4 million to the carrying amount of goodwill in Domestic Operations relates to the acquisition of Sentai Holdings, a global supplier of anime content, including its anime-focused HIDIVE subscription streaming service, for which the allocation of goodwill is preliminary and is based on current estimates and currently available information, and is subject to revision based on final allocation of the purchase price to the identifiable assets and liabilities acquired.
The reduction of $0.3 million in the carrying amount of goodwill for Domestic Operations is due to the realization of a tax benefit for the amortization of "second component" goodwill at SundanceTV. Second component goodwill is the amount of tax deductible goodwill in excess of goodwill for financial reporting purposes. In accordance with the authoritative guidance at the time of the SundanceTV acquisition, the tax benefits associated with this excess are applied to first reduce the amount of goodwill, and then other intangible assets for financial reporting purposes, if and when such tax benefits are realized in the Company's tax returns.
10

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
The following tables summarize information relating to the Company's identifiable intangible assets:
(In thousands)March 31, 2022
GrossAccumulated AmortizationNetEstimated Useful Lives
Amortizable intangible assets:
Affiliate and customer relationships$645,838 $(359,436)$286,402 
6 to 25 years
Advertiser relationships46,282 (31,287)14,995 
11 years
Trade names and other amortizable intangible assets110,860 (43,451)67,409 
3 to 20 years
Total amortizable intangible assets802,980 (434,174)368,806 
Indefinite-lived intangible assets:
Trademarks19,900 — 19,900 
Total intangible assets$822,880 $(434,174)$388,706 
(In thousands)December 31, 2021
GrossAccumulated AmortizationNet
Amortizable intangible assets:
Affiliate and customer relationships$649,543 $(354,673)$294,870 
Advertiser relationships46,282 (30,235)16,047 
Trade names and other amortizable intangible assets111,151 (42,534)68,617 
Total amortizable intangible assets806,976 (427,442)379,534 
Indefinite-lived intangible assets:
Trademarks19,900 — 19,900 
Total intangible assets$826,876 $(427,442)$399,434 

Aggregate amortization expense for amortizable intangible assets for the three months ended March 31, 2022 and 2021 was $10.6 million and $9.5 million, respectively. Estimated aggregate amortization expense for intangible assets subject to amortization for each of the following five years is:
(In thousands)
Years Ending December 31,
2022$42,201 
202342,118 
202442,034 
202540,290 
202635,712 

11

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Note 9. Accrued Liabilities
Accrued liabilities consist of the following:
(In thousands)March 31, 2022December 31, 2021
Employee related costs87,238 $128,388 
Participations and residuals125,636 133,988 
Interest21,804 36,922 
Other accrued expenses46,228 41,109 
Total accrued liabilities$280,906 $340,407 

Note 10. Long-term Debt
The Company's long-term debt consists of the following:
(In thousands)March 31, 2022December 31, 2021
Senior Secured Credit Facility: (a)
Term Loan A Facility$666,563 $675,000 
Senior Notes:
5.00% Notes due April 2024
400,000 400,000 
4.75% Notes due August 2025
800,000 800,000 
       4.25% Notes due February 2029
1,000,000 1,000,000 
Total long-term debt2,866,563 2,875,000 
Unamortized discount(22,088)(23,167)
Unamortized deferred financing costs(12,546)(13,363)
Long-term debt, net2,831,929 2,838,470 
Current portion of long-term debt33,750 33,750 
Noncurrent portion of long-term debt$2,798,179 $2,804,720 
(a)The Company's $500 million revolving credit facility remains undrawn at March 31, 2022. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company.
In March 2022, the Company repaid $8.4 million of the principal amount of the Term Loan A Facility in accordance with the terms of the agreement.



12

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Note 11. Leases
The following table summarizes the leases included in the condensed consolidated balance sheets as follows:
(In thousands)Balance Sheet LocationMarch 31, 2022December 31, 2021
Assets
OperatingOperating lease right-of-use assets$119,774 $125,866 
FinanceProperty and equipment, net11,805 12,080 
Total lease assets$131,579 $137,946 
Liabilities
Current:
OperatingCurrent portion of lease obligations$34,424 $32,929 
FinanceCurrent portion of lease obligations3,952 3,667 
$38,376 $36,596 
Noncurrent:
OperatingLease obligations$119,416 128,319 
FinanceLease obligations22,368 23,520 
141,784 $151,839 
Total lease liabilities$180,160 $188,435 

Note 12. Fair Value Measurement
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity's pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:
Level I - Quoted prices for identical instruments in active markets.
Level II - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level III - Instruments whose significant value drivers are unobservable.
13

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
The following table presents for each of these hierarchy levels, the Company's financial assets and liabilities that are measured at fair value on a recurring basis at March 31, 2022 and December 31, 2021:
(In thousands)Level ILevel IILevel IIITotal
At March 31, 2022:
Assets
Cash equivalents$45,000 $ $ $45,000 
Marketable securities10,064   10,064 
Foreign currency derivatives 166  166 
Liabilities
Foreign currency derivatives  5,927  5,927 
At December 31, 2021:
Assets
Marketable securities
$5,771 $ $ $5,771 
Foreign currency derivatives
 196  196 
Liabilities
Foreign currency derivatives  5,911  5,911 
The Company's cash equivalents (comprised of money market funds) and marketable securities are classified within Level I of the fair value hierarchy because they are valued using quoted market prices.
The Company's foreign currency derivatives are classified within Level II of the fair value hierarchy as their fair values are determined based on a market approach valuation technique that uses readily observable market parameters and the consideration of counterparty risk.
At March 31, 2022 and December 31, 2021, the Company did not have any assets or liabilities measured at fair value on a recurring basis that would be considered Level III.
Fair value measurements are also used in nonrecurring valuations performed in connection with acquisition accounting and impairment testing. These nonrecurring valuations primarily include the valuation of program rights, goodwill, intangible assets and property and equipment. All of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level III of the fair value hierarchy.
Credit Facility Debt and Senior Notes
The fair values of each of the Company's debt instruments are based on quoted market prices for the same or similar issues or on the current rates offered to the Company for instruments of the same remaining maturities.
The carrying values and estimated fair values of the Company's financial instruments, excluding those that are carried at fair value in the condensed consolidated balance sheets, are summarized as follows:
(In thousands)March 31, 2022
Carrying
Amount
Estimated
Fair Value
Debt instruments:
Term loan A facility$656,806 $659,897 
5.00% Notes due April 2024
397,932 398,500 
4.75% Notes due August 2025
792,603 793,000