SEC Filing | AMC Networks Inc.

View:

Download DOC

Download PDF

Download XLS

Download XBRL

amcx-20220630

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 June 30, 2022


☐			Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 1-35106

AMC Networks Inc.

(Exact name of registrant as specified in its charter)


Delaware		27-5403694
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

11 Penn Plaza,
New York,	NY	10001
(Address of principal executive offices)		(Zip Code)

(212) 324-8500

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $0.01 per share

AMCX

The

NASDAQ

Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 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 filer	þ	Accelerated filer	¨

Non-accelerated filer	¨	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

The number of shares of common stock outstanding as of July 29, 2022:


Class A Common Stock par value $0.01 per share			31,434,451
Class B Common Stock par value $0.01 per share			11,484,408

AMC NETWORKS INC. AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS


			Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Condensed Consolidated Balance Sheets			1
Condensed Consolidated Statements of Income			2
Condensed Consolidated Statements of Comprehensive Income			3
Condensed Consolidated Statements of Stockholders' Equity			4
Condensed Consolidated Statements of Cash Flows			6
Notes to Condensed Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			23
Item 3. Quantitative and Qualitative Disclosures About Market Risk			39
Item 4. Controls and Procedures			40
PART II. OTHER INFORMATION
Item 1. Legal Proceedings			41
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			41
Item 5. Other Information			41
Item 6. Exhibits			42
SIGNATURES			43

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

(unaudited)


	June 30, 2022		December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents	$	817,344	$	892,221
Accounts receivable, trade (less allowance for doubtful accounts of $8,028 and $8,030)	744,432		815,444
Current portion of program rights, net	13,794		10,068
Prepaid expenses and other current assets	429,899		282,453
Total current assets	2,005,469		2,000,186
Property and equipment, net of accumulated depreciation of $313,611 and $286,133	213,940		225,791
Program rights, net	1,941,899		1,731,838
Intangible assets, net	374,348		399,434
Goodwill	684,236		709,344
Deferred tax assets, net	12,280		11,334
Operating lease right-of-use assets	111,673		125,866
Other assets	449,794		545,153
Total assets	$	5,793,639	$	5,748,946
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	153,178	$	173,207
Accrued liabilities	298,807		340,407
Current portion of program rights obligations	299,830		307,054
Deferred revenue	243,734		167,071
Current portion of long-term debt	33,750		33,750
Current portion of lease obligations	37,076		36,596
Total current liabilities	1,066,375		1,058,085
Program rights obligations	187,197		218,321
Long-term debt, net	2,791,673		2,804,720
Lease obligations	132,548		151,839
Deferred tax liabilities, net	197,977		163,600
Other liabilities	133,697		165,860
Total liabilities	4,509,467		4,562,425
Commitments and contingencies
Redeemable noncontrolling interests	270,726		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 capital	341,403		347,971
Accumulated earnings	2,285,664		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	(243,292)		(175,818)
Total AMC Networks stockholders' equity	964,668		851,088
Non-redeemable noncontrolling interests	48,778		51,584
Total stockholders' equity	1,013,446		902,672
Total liabilities and stockholders' equity	$	5,793,639	$	5,748,946

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues, net	$	738,025	$	771,392	$	1,450,182	$	1,463,133
Operating expenses:
Technical and operating (excluding depreciation and amortization)	325,772		338,841		610,009		619,413
Selling, general and administrative	231,819		198,618		462,472		390,153
Depreciation and amortization	27,231		22,604		49,821		47,850
Impairment and other charges	—		142,918		—		158,973
Restructuring and other related charges	—		155		—		8,780
Total operating expenses	584,822		703,136		1,122,302		1,225,169
Operating income	153,203		68,256		327,880		237,964
Other income (expense):
Interest expense	(31,980)		(31,519)		(62,777)		(66,261)
Interest income	2,467		3,008		4,927		5,350
Loss on extinguishment of debt	—		—		—		(22,074)
Miscellaneous, net	(742)		14,174		5,086		19,580
Total other expense	(30,255)		(14,337)		(52,764)		(63,405)
Income from operations before income taxes	122,948		53,919		275,116		174,559
Income tax expense	(33,028)		(11,321)		(74,662)		(37,236)
Net income including noncontrolling interests	89,920		42,598		200,454		137,323
Net income attributable to noncontrolling interests	(6,491)		(6,713)		(12,837)		(14,417)
Net income attributable to AMC Networks' stockholders	$	83,429	$	35,885	$	187,617	$	122,906

Net income per share attributable to AMC Networks' stockholders:
Basic	$	1.93	$	0.84	$	4.36	$	2.91
Diluted	$	1.91	$	0.83	$	4.29	$	2.84

Weighted average common shares:
Basic	43,192		42,481		42,987		42,207
Diluted	43,679		43,382		43,697		43,277

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income including noncontrolling interests	$	89,920	$	42,598	$	200,454	$	137,323
Other comprehensive income (loss):
Foreign currency translation adjustment	(51,740)		7,675		(70,333)		(14,349)
Unrealized gain on interest rate swaps	—		598		—		1,208
Other comprehensive income (loss), before income taxes	(51,740)		8,273		(70,333)		(13,141)
Income tax expense	—		(141)		—		(284)
Other comprehensive income (loss), net of income taxes	(51,740)		8,132		(70,333)		(13,425)
Comprehensive income	38,180		50,730		130,121		123,898
Comprehensive income attributable to noncontrolling interests	(4,463)		(6,775)		(9,978)		(14,209)
Comprehensive income attributable to AMC Networks' stockholders	$	33,717	$	43,955	$	120,143	$	109,689

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(in thousands)

(unaudited)


	Class A Common Stock		Class B Common Stock		Paid-in Capital		Accumulated Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		AMC Networks Stockholders’ Equity		Noncontrolling Interests		Total Stockholders' Equity
Balance, March 31, 2022	$	660	$	115	$	335,803	$	2,202,235	$	(1,419,882)	$	(193,580)	$	925,351	$	51,627	$	976,978
Net income attributable to AMC Networks’ stockholders	—		—		—		83,429		—		—		83,429		—		83,429
Net income attributable to non-redeemable noncontrolling interests	—		—		—		—		—		—		—		1,870		1,870
Purchase of noncontrolling interests, net of tax	—		—		(3,066)		—		—		—		(3,066)		(1,297)		(4,363)

Distribution to noncontrolling member	—		—		—		—		—		—		—		(1,394)		(1,394)

Other comprehensive income	—		—		—		—		—		(49,712)		(49,712)		(2,028)		(51,740)
Share-based compensation expenses	—		—		8,683		—		—		—		8,683		—		8,683



Net share issuances under employee stock plans	—		—		(17)		—		—		—		(17)		—		(17)
Balance, June 30, 2022	$	660	$	115	$	341,403	$	2,285,664	$	(1,419,882)	$	(243,292)	$	964,668	$	48,778	$	1,013,446


	Class A Common Stock		Class B Common Stock		Paid-in Capital		Accumulated Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		AMC Networks Stockholders’ Equity		Noncontrolling Interests		Total Stockholders' Equity
Balance, March 31, 2021	$	653	$	115	$	314,331	$	1,934,472	$	(1,419,882)	$	(156,237)	$	673,452	$	48,109	$	721,561
Net income attributable to AMC Networks’ stockholders	—		—		—		35,885		—		—		35,885		—		35,885
Net income attributable to non-redeemable noncontrolling interests	—		—		—		—		—		—		—		3,143		3,143


Distributions to noncontrolling member	—		—		—		—		—		—		—		(1,441)		(1,441)




Other comprehensive income	—		—		—		—		—		8,070		8,070		62		8,132

Share-based compensation expenses	—		—		16,262		—		—		—		16,262		—		16,262


Balance, June 30, 2021	$	653	$	115	$	330,593	$	1,970,357	$	(1,419,882)	$	(148,167)	$	733,669	$	49,873	$	783,542

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(in thousands)

(unaudited)


	Class A Common Stock		Class B Common Stock		Paid-in Capital		Accumulated Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		AMC Networks Stockholders’ Equity		Noncontrolling Interests		Total Stockholders' Equity
















Balance, 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	—		—		—		187,617		—		—		187,617		—		187,617
Net income attributable to non-redeemable noncontrolling interests	—		—		—		—		—		—		—		4,309		4,309
Purchase of noncontrolling interests, net of tax	—		—		(3,066)		—		—		—		(3,066)		(1,297)		(4,363)

Distributions to noncontrolling member	—		—		—		—		—		—		—		(2,959)		(2,959)

Other comprehensive income (loss)	—		—		—		—		—		(67,474)		(67,474)		(2,859)		(70,333)
Share-based compensation expenses	—		—		16,812		—		—		—		16,812		—		16,812



Net share issuances under employee stock plans	5		—		(20,314)		—		—		—		(20,309)		—		(20,309)
Balance, June 30, 2022	$	660	$	115	$	341,403	$	2,285,664	$	(1,419,882)	$	(243,292)	$	964,668	$	48,778	$	1,013,446


	Class A Common Stock		Class B Common Stock		Paid-in Capital		Accumulated Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		AMC Networks Stockholders’ Equity		Noncontrolling Interests		Total Stockholders' Equity
Balance, December 31, 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	—		—		—		122,906		—		—		122,906		—		122,906
Net income attributable to non-redeemable noncontrolling interests	—		—		—		—		—		—		—		4,278		4,278
Contributions from noncontrolling member	—		—		—		—		—		—		—		1,140		1,140

Transfer from redeemable noncontrolling interest	—		—		—						—		—		18,367		18,367

Other comprehensive income (loss)	—		—		—		—		—		(13,217)		(13,217)		(208)		(13,425)
Share-based compensation expenses	—		—		29,708		—		—		—		29,708		—		29,708
Proceeds from the exercise of stock options	—		—		9,795		—		—		—		9,795		—		9,795

Net share issuances under employee stock plans	7		—		(32,335)		—		—		—		(32,328)		—		(32,328)
Balance, June 30, 2021	$	653	$	115	$	330,593	$	1,970,357	$	(1,419,882)	$	(148,167)	$	733,669	$	49,873	$	783,542

See accompanying notes to condensed consolidated financial statements.

AMC NETWORKS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Six Months Ended June 30,
	2022		2021
Cash flows from operating activities:
Net income including noncontrolling interests	$	200,454	$	137,323
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	49,821		47,850
Impairment and other charges	—		158,973
Share-based compensation expenses related to equity classified awards	16,812		29,709
Non-cash restructuring and other related charges	—		4,329
Amortization of program rights	396,890		333,348
Amortization of deferred carriage fees	16,902		7,633
Unrealized foreign currency transaction gain	(554)		(10,609)
Amortization of deferred financing costs and discounts on indebtedness	3,828		3,923
Loss on extinguishment of debt	—		22,074
Bad debt expense	1,165		3,530
Deferred income taxes	34,115		16,487
Gain on investments	(4,084)		(4,554)

Other, net	(4,955)		(7,776)
Changes in assets and liabilities:
Accounts receivable, trade (including amounts due from related parties, net)	58,410		7,913
Prepaid expenses and other assets	(50,853)		(18,233)
Program rights and obligations, net	(667,492)		(583,480)
Income taxes payable	2,241		(5,472)
Deferred revenue	44,874		1,203
Deferred carriage fees, net	(11,686)		(27,861)
Accounts payable, accrued liabilities and other liabilities	(68,714)		14,857
Net cash provided by operating activities	17,174		131,167
Cash flows from investing activities:
Capital expenditures	(21,554)		(18,849)
Return of capital from investees	1,771		—
Payments for acquisition of a business, net of cash acquired	—		(19,072)
Acquisition of investments	—		(28,397)
Cash paid on distribution of business	—		(7,052)
Principal payment received on loan to investee	—		20,000
Proceeds from sale of investments	9,854		95,370
Net cash provided by (used in) investing activities	(9,929)		42,000
Cash flows from financing activities:
Proceeds from the issuance of long-term debt	—		984,500
Principal payments on long-term debt	(16,875)		(1,015,000)
Deemed repurchases of restricted stock units	(20,309)		(32,327)
Proceeds from stock option exercises	—		9,795
Principal payments on finance lease obligations	(1,663)		(1,984)
Contributions from noncontrolling interests	—		2,702
Distributions to noncontrolling interests	(25,139)		(11,912)
Purchase of noncontrolling interests	(2,500)		—
Net cash used in financing activities	(66,486)		(64,226)
Net increase (decrease) in cash and cash equivalents from operations	(59,241)		108,941
Effect of exchange rate changes on cash and cash equivalents	(15,636)		(16,741)
Cash and cash equivalents at beginning of period	892,221		888,526
Cash and cash equivalents at end of period	$	817,344	$	980,726

See accompanying notes to condensed consolidated financial statements.

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 global 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 continuing 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.

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 June 30, 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)	June 30, 2022		December 31, 2021
Balances from contracts with customers:
Accounts receivable (including long-term receivables within Other assets)	$	986,278	$	1,106,225
Contract assets, short-term (included in Prepaid expenses and other current assets)	169,653		69,351
Contract assets, long-term (included in Other assets)	2,086		29,323
Contract liabilities, short-term (Deferred revenue)	243,734		167,071
Contract liabilities, long-term (Deferred revenue included in Other liabilities)	58		31,832

Revenue recognized for the six months ended June 30, 2022 and 2021 relating to the contract liability at December 31, 2021 and 2020 was $45.7 million and $17.7 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 June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Basic weighted average common shares outstanding	43,192	42,481	42,987	42,207
Effect of dilution:
Stock options	—	—	—	6
Restricted stock units	487	901	710	1,064
Diluted weighted average common shares outstanding	43,679	43,382	43,697	43,277

As of June 30, 2022 and June 30, 2021, 0.8 million and 0.3 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 previously 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 and six months ended June 30, 2022 and 2021, the Company did not repurchase any shares of its Class A Common Stock. As of June 30, 2022, the Company had $135.3 million of authorization remaining for repurchase under the Stock Repurchase Program.

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

Note 4. Impairment and Other Charges

There were no impairment and other charges for the three and six months ended June 30, 2022.

Impairment and other charges for the three and six months ended June 30, 2021 were $142.9 million and $159.0 million, respectively.

On July 16, 2021, the Company entered into a settlement agreement (the “Settlement Agreement”) with Frank Darabont, Ferenc, Inc., Darkwoods Productions, Inc., and Creative Artists Agency, LLC (together, the "Plaintiffs") in actions brought in connection with Frank Darabont’s rendering services as a writer, director and producer of the television series entitled The Walking Dead. The Settlement Agreement provided for a cash payment of $200 million (the “Settlement Payment”) to the Plaintiffs and future revenue sharing related to certain future streaming exhibition of The Walking Dead and Fear The Walking Dead. With regard to the Settlement Payment, the Company recorded a charge of $143.0 million during the second quarter of 2021, included in Impairment and other charges in consideration for the extinguishment of Plaintiffs’ rights to any compensation in connection with The Walking Dead and any related programs and the dismissal of the actions with prejudice, which amount was net of $57.0 million of ordinary course accrued participations.

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 ("25/7 Media") following the spin-off.

Note 5. Restructuring and Other Related Charges

There were no restructuring and other related charges for the three and six months ended June 30, 2022.

Restructuring and other related charges of $0.2 million and $8.8 million for the three and six months ended June 30, 2021, respectively, consisted of $0.2 million and $4.3 million of severance costs associated with the restructuring plan announced in November 2020 for the three and six months ended June 30, 2021, respectively, and $4.5 million at AMCNI related to the termination of distribution in certain international territories for the six months ended June 30, 2021.

The following table summarizes the restructuring and other related charges recognized by operating segment:


(In thousands)	Three Months Ended June 30,		Six Months Ended June 30,
	2021		2021
Domestic Operations	$	216	$	2,643
International and Other	(17)		4,473
Corporate / Inter-segment eliminations	(44)		1,664
Total restructuring and other related charges	$	155	$	8,780

AMC NETWORKS INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(unaudited)

Note 6. Program Rights

Total capitalized produced and licensed content by predominant monetization strategy is as follows:


	June 30, 2022
(In thousands)	Predominantly Monetized Individually		Predominantly Monetized as a Group		Total
Owned original program rights, net:
Completed	$	219,611	$	301,862	$	521,473
In-production and in-development	105,010		311,768		416,778
Total owned original program rights, net	$	324,621	$	613,630	$	938,251

Licensed program rights, net:
Licensed film and acquired series	$	4,932	$	597,137	$	602,069
Licensed originals	83,794		208,111		291,905
Advances and content versioning costs	—		123,468		123,468
Total licensed program rights, net	88,726		928,716		1,017,442
Program rights, net	$	413,347	$	1,542,346	$	1,955,693

Current portion of program rights, net					$	13,794
Program rights, net (long-term)					1,941,899
					$	1,955,693

December 31, 2021

(In thousands)

Predominantly Monetized Individually

Predominantly Monetized as a Group

Total

Owned original program rights, net:

Completed

185,228