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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 June 30, 2023
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 July 28, 2023:
Class A Common Stock par value $0.01 per share32,020,270
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)
June 30, 2023December 31, 2022
ASSETS
Current Assets:
Cash and cash equivalents$893,370 $930,002 
Accounts receivable, trade (less allowance for doubtful accounts of $8,962 and $8,725)
660,474 722,185 
Current portion of program rights, net11,162 10,807 
Prepaid expenses and other current assets275,490 286,875 
Total current assets1,840,496 1,949,869 
Property and equipment, net of accumulated depreciation of $376,464 and $344,906
186,482 202,034 
Program rights, net1,884,392 1,762,939 
Intangible assets, net312,280 354,676 
Goodwill648,202 643,419 
Deferred tax assets, net14,898 13,618 
Operating lease right-of-use assets97,567 108,229 
Other assets486,164 599,052 
Total assets$5,470,481 $5,633,836 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable$112,315 $172,009 
Accrued liabilities374,803 419,065 
Current portion of program rights obligations323,862 374,115 
Deferred revenue75,601 134,883 
Current portion of long-term debt450,625 33,750 
Current portion of lease obligations 36,828 36,411 
Total current liabilities1,374,034 1,170,233 
Program rights obligations163,020 200,869 
Long-term debt, net2,349,121 2,778,703 
Lease obligations108,451 124,799 
Deferred tax liabilities, net113,110 112,642 
Other liabilities81,008 139,108 
Total liabilities4,188,744 4,526,354 
Commitments and contingencies
Redeemable noncontrolling interests241,486 253,669 
Stockholders' equity:
Class A Common Stock, $0.01 par value, 360,000 shares authorized, 66,613 and 66,118 shares issued and 32,020 and 31,525 shares outstanding, respectively
666 661 
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 capital366,553 360,251 
Accumulated earnings2,279,490 2,105,641 
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(219,276)(239,798)
Total AMC Networks stockholders' equity1,007,666 806,988 
Non-redeemable noncontrolling interests32,585 46,825 
Total stockholders' equity1,040,251 853,813 
Total liabilities and stockholders' equity$5,470,481 $5,633,836 
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 June 30,Six Months Ended June 30,
 2023202220232022
Revenues, net
$678,628 $738,025 $1,396,075 $1,450,182 
Operating expenses:
Technical and operating (excluding depreciation and amortization)
321,961 325,772 648,690 610,009 
Selling, general and administrative
194,298 231,819 379,904 462,472 
Depreciation and amortization25,745 27,231 51,620 49,821 
Impairment and other charges24,882  24,882  
Restructuring and other related charges6,041  11,974  
Total operating expenses572,927 584,822 1,117,070 1,122,302 
Operating income105,701 153,203 279,005 327,880 
Other income (expense):
Interest expense(38,930)(31,980)(76,547)(62,777)
Interest income7,342 2,467 15,258 4,927 
Miscellaneous, net10,140 (742)14,729 5,086 
Total other expense(21,448)(30,255)(46,560)(52,764)
Income from operations before income taxes84,253 122,948 232,445 275,116 
Income tax expense(22,155)(33,028)(59,054)(74,662)
Net income including noncontrolling interests62,098 89,920 173,391 200,454 
Net (income) loss attributable to noncontrolling interests8,141 (6,491)458 (12,837)
Net income attributable to AMC Networks' stockholders$70,239 $83,429 $173,849 $187,617 
Net income per share attributable to AMC Networks' stockholders:
Basic$1.60 $1.93 $3.98 $4.36 
Diluted$1.60 $1.91 $3.97 $4.29 
Weighted average common shares:
Basic43,842 43,192 43,702 42,987 
Diluted43,900 43,679 43,835 43,697 
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 June 30,Six Months Ended June 30,
 2023202220232022
Net income including noncontrolling interests$62,098 $89,920 $173,391 $200,454 
Other comprehensive income (loss):
Foreign currency translation adjustment9,826 (51,740)21,644 (70,333)
Comprehensive income71,924 38,180 195,035 130,121 
Comprehensive (income) loss attributable to noncontrolling interests
7,509 (4,463)(664)(9,978)
Comprehensive income attributable to AMC Networks' stockholders
$79,433 $33,717 $194,371 $120,143 
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, March 31, 2023$665 $115 $360,117 $2,209,251 $(1,419,882)$(228,470)$921,796 $47,246 $969,042 
Net income attributable to AMC Networks’ stockholders— — — 70,239 — — 70,239 — 70,239 
Net income (loss) attributable to non-redeemable noncontrolling interests— — — — — — — (14,941)(14,941)
Distribution to noncontrolling member— — — — — — — (352)(352)
Other comprehensive income (loss)— — — — — 9,194 9,194 632 9,826 
Share-based compensation expenses— — 7,648 — — — 7,648 — 7,648 
Net share issuances under employee stock plans1 — (1,212)— — — (1,211)— (1,211)
Balance, June 30, 2023$666 $115 $366,553 $2,279,490 $(1,419,882)$(219,276)$1,007,666 $32,585 $1,040,251 



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, 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 
Distributions to noncontrolling member— — — — — — — (1,394)(1,394)
Purchase of noncontrolling interest, net of tax— — (3,066)— — — (3,066)(1,297)(4,363)
Other comprehensive income (loss)— — — — — (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 


See accompanying notes to condensed consolidated financial statements.







4






AMC NETWORKS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands)
(unaudited)

Class A
Common
Stock
Class B
Common
Stock
Paid-in
Capital
Accumulated EarningsTreasury
Stock
Accumulated
Other
Comprehensive
Loss
AMC Networks Stockholders’
Equity
Noncontrolling InterestsTotal Stockholders' Equity
Balance, December 31, 2022$661 $115 $360,251 $2,105,641 $(1,419,882)$(239,798)$806,988 $46,825 $853,813 
Net income attributable to AMC Networks’ stockholders— — — 173,849 — — 173,849 — 173,849 
Net income (loss) attributable to non-redeemable noncontrolling interests— — — — — — — (13,528)(13,528)
Distributions to noncontrolling member— — — — — — — (1,834)(1,834)
Other comprehensive income (loss)— — — — — 20,522 20,522 1,122 21,644 
Share-based compensation expenses— — 13,530 — — — 13,530 — 13,530 
Net share issuances under employee stock plans5 — (7,228)— — — (7,223)— (7,223)
Balance, June 30, 2023$666 $115 $366,553 $2,279,490 $(1,419,882)$(219,276)$1,007,666 $32,585 $1,040,251 


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— — — 187,617 — — 187,617 — 187,617 
Net income attributable to non-redeemable noncontrolling interests— — — — — — — 4,309 4,309 
Distributions to noncontrolling member— — — — — — — (2,959)(2,959)
Purchase of noncontrolling interest, net of tax— — (3,066)— — — (3,066)(1,297)(4,363)
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 plans5 — (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 

See accompanying notes to condensed consolidated financial statements.
5


AMC NETWORKS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) / (unaudited)
Six Months Ended June 30,
20232022
Cash flows from operating activities:
Net income including noncontrolling interests$173,391 $200,454 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization51,620 49,821 
Impairment and other charges24,882  
Share-based compensation expenses related to equity classified awards13,293 16,812 
Amortization of program rights430,386 396,890 
Amortization of deferred carriage fees10,992 16,902 
Unrealized foreign currency transaction loss/(gain)2,712 (554)
Amortization of deferred financing costs and discounts on indebtedness3,905 3,828 
Bad debt expense1,070 1,165 
Deferred income taxes(725)34,115 
Gain on investments (4,084)
Other, net(2,201)(4,955)
Changes in assets and liabilities:
Accounts receivable, trade54,221 58,410 
Prepaid expenses and other assets133,471 (50,853)
Program rights and obligations, net(644,114)(667,492)
Income taxes payable1,109 2,241 
Deferred revenue(59,828)44,874 
Deferred carriage fees, net(6,129)(11,686)
Accounts payable, accrued liabilities and other liabilities(163,008)(68,714)
Net cash provided by operating activities25,047 17,174 
Cash flows from investing activities:
Capital expenditures(21,450)(21,554)
Return of capital from investees 1,771 
Acquisition of investments(283) 
Principal payment received on loan to investee180  
Proceeds from sale of investments8,565 9,854 
Net cash used in investing activities(12,988)(9,929)
Cash flows from financing activities:
Payments for financing costs(342) 
Principal payments on long-term debt(16,875)(16,875)
Deemed repurchases of restricted stock units(7,223)(20,309)
Principal payments on finance lease obligations(1,946)(1,663)
Distributions to noncontrolling interests(27,087)(25,139)
Purchase of noncontrolling interests(1,343)(2,500)
Net cash used in financing activities(54,816)(66,486)
Net decrease in cash and cash equivalents from operations(42,757)(59,241)
Effect of exchange rate changes on cash and cash equivalents6,125 (15,636)
Cash and cash equivalents at beginning of period930,002 892,221 
Cash and cash equivalents at end of period$893,370 $817,344 
See accompanying notes to condensed consolidated financial statements.
6

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

Note 1. Description of Business and Basis of Presentation
Description of Business
AMC Networks Inc. ("AMC Networks") and its subsidiaries (collectively referred to as the "Company," "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, which consist of our five national programming networks, our global streaming services, our AMC Studios operation and IFC Films. Our national programming networks are AMC, WE tv, BBC AMERICA, IFC, and SundanceTV. Our global streaming services consist of our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE) and AMC+. Our AMC Studios operation produces original programming for our programming networks and third parties and also licenses programming worldwide, and IFC Films is our film distribution business. The operating segment also includes AMC Networks Broadcasting & Technology, 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, 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 financial 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, 2022 contained in the Company's Annual Report on Form 10-K (our "2022 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, 2023.
Use of Estimates
The preparation of financial statements in conformity with U.S. 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.

Note 2. Revenue Recognition
Transaction Price Allocated to Future Performance Obligations
As of June 30, 2023, 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.
7

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
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, 2023December 31, 2022
Balances from contracts with customers:
     Accounts receivable (including long-term receivables within Other assets)$783,422 $1,003,505 
     Contract assets, short-term (included in Prepaid expenses and other current assets)4,378 48,594 
     Contract liabilities, short-term (Deferred revenue)75,601 134,883 
     Contract liabilities, long-term (Deferred revenue included in Other liabilities)113 683 
Revenue recognized for the six months ended June 30, 2023 and 2022 relating to the contract liability at December 31, 2022 and 2021 was $97.4 million and $45.7 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,
2023202220232022
Basic weighted average common shares outstanding43,842 43,192 43,702 42,987 
Effect of dilution:
Restricted stock units58 487 133 710 
Diluted weighted average common shares outstanding43,900 43,679 43,835 43,697 
As of June 30, 2023 and June 30, 2022, 2.1 million and 0.8 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, 2023 and 2022, the Company did not repurchase any shares of its Class A Common Stock. As of June 30, 2023, the Company had $135.3 million of authorization remaining for repurchase under the Stock Repurchase Program.

Note 4. Restructuring and Other Related Charges
On November 28, 2022, the Company commenced a restructuring plan (the “Plan”) designed to achieve significant cost reductions in light of “cord cutting” and the related impacts being felt across the media industry as well as the broader economic outlook. The Plan encompasses initiatives that include, among other things, strategic programming assessments and organizational restructuring costs. The Plan is intended to improve the organizational design of the Company through the elimination of certain roles and centralization of certain functional areas of the Company. The programming assessments pertain to a broad mix of owned and licensed content, including legacy television series and films that will no longer be in active rotation on the Company’s linear or streaming platforms. As a result of the Plan, the Company recorded restructuring and other related charges of $6.0 million and $12.0 million for the three and six months ended June 30, 2023 consisting primarily of severance and other personnel costs.
There were no restructuring and other related charges for the three and six months ended June 30, 2022.
8

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
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,
20232023
Domestic Operations$3,905 $4,723 
International and Other261 1,646 
Corporate / Inter-segment eliminations1,875 5,605 
Total restructuring and other related charges$6,041 $11,974 

The following table summarizes the accrued restructuring and other related costs:
(In thousands)Severance and Employee-Related CostsContent Impairments and Other Exit CostsTotal
Balance at December 31, 2022$37,150 $74,724 $111,874 
Charges (credits)13,775 (1,801)11,974 
Cash payments(36,270)(52,236)(88,506)
Other(34)685 651 
Balance at June 30, 2023$14,621 $21,372 $35,993 
Accrued restructuring and other related costs of $33.7 million and $2.3 million are included in Accrued liabilities and Other liabilities, respectively, in the consolidated balance sheet at June 30, 2023. Accrued restructuring and other related costs of $108.0 million and $3.9 million are included in Accrued liabilities and Other liabilities, respectively, in the consolidated balance sheet at December 31, 2022.

Note 5. Program Rights
Total capitalized produced and licensed content by predominant monetization strategy is as follows:
June 30, 2023
(In thousands) Predominantly Monetized Individually  Predominantly Monetized as a Group  Total
Owned original program rights, net:
Completed$218,360 $535,004 $753,364 
In-production and in-development  297,007 297,007 
Total owned original program rights, net$218,360 $832,011 $1,050,371 
Licensed program rights, net:
Licensed film and acquired series$1,633 $594,451 $596,084 
Licensed originals4,837 153,175 158,012 
Advances and content versioning costs 91,087 91,087 
Total licensed program rights, net6,470 838,713 845,183 
Program rights, net $224,830 $1,670,724 $1,895,554 
Current portion of program rights, net$11,162 
Program rights, net (long-term)1,884,392 
$1,895,554 

9

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
December 31, 2022
(In thousands) Predominantly Monetized Individually  Predominantly Monetized as a Group  Total
Owned original program rights, net:
Completed$215,496 $322,248 $537,744 
In-production and in-development 45,098 294,086 339,184 
Total owned original program rights, net$260,594 $616,334 $876,928 
Licensed program rights, net:
Licensed film and acquired series$3,092 $642,768 $645,860 
Licensed originals5,373 171,418 176,791 
Advances and content versioning costs 74,167 74,167 
Total licensed program rights, net8,465 888,353 896,818 
Program rights, net $269,059 $1,504,687 $1,773,746 
Current portion of program rights, net$10,807 
Program rights, net (long-term)1,762,939 
$1,773,746 

Amortization of owned and licensed program rights, included in Technical and operating expenses in the condensed consolidated statements of income, is as follows:
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
(In thousands)Predominantly Monetized IndividuallyPredominantly Monetized as a GroupTotalPredominantly Monetized IndividuallyPredominantly Monetized as a GroupTotal
Owned original program rights$59,528 $56,811 $116,339 $80,831 $101,747 $182,578 
Licensed program rights471 126,503 126,974 2,135 245,673 247,808 
Program rights amortization$59,999 $183,314 $243,313 $82,966 $347,420 $430,386 
Three Months Ended June 30, 2022Six Months Ended June 30, 2022
(In thousands)Predominantly Monetized IndividuallyPredominantly Monetized as a GroupTotalPredominantly Monetized IndividuallyPredominantly Monetized as a GroupTotal
Owned original program rights$44,504 $30,381 $74,885 $94,344 $47,316 $141,660 
Licensed program rights9,633 119,520 129,153 17,241 237,989 255,230 
Program rights amortization$54,137 $149,901 $204,038 $111,585 $285,305 $396,890 
For programming rights predominantly monetized individually or as a group, the Company periodically reviews the programming usefulness of licensed and owned original program rights based on several factors, including expected future revenue generation from airings on the Company's networks and streaming services and other exploitation opportunities, ratings, type and quality of program material, standards and practices, and fitness for exhibition through various forms of distribution. If events or changes in circumstances indicate that the fair value of a film predominantly monetized individually or a film group is less than its unamortized cost, the Company will write off the excess to technical and operating expenses in the consolidated statements of income. Program rights with no future programming usefulness are substantively abandoned resulting in the write-off of remaining unamortized cost. There were no significant program rights write-offs included in technical and operating expenses for the three and six months ended June 30, 2023 or 2022.
10

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
In the normal course of business, the Company may qualify for tax incentives through eligible investments in productions. Receivables related to tax incentives earned on production spend were $188.0 million and $143.1 million as of June 30, 2023 and December 31, 2022, respectively, recorded in Prepaid expenses and other current assets, and $75.0 million and $104.5 million as of June 30, 2023 and December 31, 2022, respectively, recorded in Other assets.

Note 6. 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
Equity method investments were $83.3 million and $79.6 million at June 30, 2023 and December 31, 2022, respectively.
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 statements of income.
There were no investments in marketable equity securities at June 30, 2023 or December 31, 2022.
There were no realized or unrealized gains or losses on marketable equity securities for the three and six months ended June 30, 2023. In April 2022, the Company sold its interest in a marketable equity security for $9.9 million. The Company recognized a loss of $0.2 million and a gain of $4.1 million on marketable equity securities for the three and six months ended June 30, 2022, respectively, included in miscellaneous, net in the condensed consolidated statements 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 $41.3 million and $42.7 million at June 30, 2023 and December 31, 2022, respectively. The changes in value as a result of observable price changes, if any, are recorded in miscellaneous, net in the condensed consolidated statement of income. During the three and six months ended June 30, 2023, the Company recognized impairment charges of $0.5 million and $1.7 million, respectively, on certain investments, which were included in miscellaneous, net in the consolidated statements of income.
Note 7. 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, 2022$349,292 $294,127 $643,419 
Impairment charge (1,877)(1,877)
Amortization of "second component" goodwill(560) (560)
Foreign currency translation 7,220 7,220 
June 30, 2023$348,732 $299,470 $648,202 
As of June 30, 2023 and December 31, 2022, accumulated impairment charges in the International and Other segment totaled $165.7 million and $163.8 million, respectively.
The $1.9 million impairment charge for International and Other relates to the 25/7 Media reporting unit. See "Impairment Test of Long-Lived Assets and Goodwill" below for more details.
The reduction of $0.6 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. As of June 30, 2023, all tax benefits have been realized.
11

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)June 30, 2023
GrossAccumulated AmortizationNetEstimated Useful Lives
Amortizable intangible assets:
Affiliate and customer relationships$639,664 $(407,959)$231,705 
6 to 25 years
Advertiser relationships46,282 (36,546)9,736 
11 years
Trade names and other amortizable intangible assets106,755 (55,816)50,939 
3 to 20 years
Total amortizable intangible assets792,701 (500,321)292,380 
Indefinite-lived intangible assets:
Trademarks19,900 — 19,900 
Total intangible assets$812,601 $(500,321)$312,280 
(In thousands)December 31, 2022
GrossAccumulated AmortizationNet
Amortizable intangible assets:
Affiliate and customer relationships$634,000 $(373,240)$260,760 
Advertiser relationships46,282 (34,443)11,839 
Trade names and other amortizable intangible assets105,338 (43,161)62,177 
Total amortizable intangible assets785,620 (450,844)334,776 
Indefinite-lived intangible assets:
Trademarks19,900 — 19,900 
Total intangible assets$805,520 $(450,844)$354,676 

Aggregate amortization expense for amortizable intangible assets for the three months ended June 30, 2023 and 2022 was $10.5 million and $10.4 million, respectively, and for the six months ended June 30, 2023 and 2022 was $20.9 million and $21.0 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,
2023$40,615 
202439,404 
202537,667 
202633,294 
202728,540 
Impairment Test of Long-Lived Assets and Goodwill
25/7 Media is our production services business and is part of our International and Other operating segment. See "Item 1. Business - International and Other" in our 2022 Form 10-K for further details. During the second quarter of 2023, given the impact of market challenges at 25/7 Media, specifically as it relates to reduced demand for new content and series cancellations from third parties, the Company revised its outlook for the 25/7 Media business, resulting in lower expected future cash flows. As a result, the Company determined that sufficient indicators of potential impairment of long-lived assets existed at 25/7 Media. The Company performed a recoverability test and determined that the carrying amount of the 25/7 Media asset group was not recoverable. The carrying value of the asset group exceeded its fair value, therefore an impairment charge of $23.0 million was recorded for identifiable intangible assets, which is included in impairment and other charges in the consolidated statement of income within the International and Other operating segment. Fair values used to determine the impairment charge were determined using an income approach, specifically a discounted cash flow ("DCF") model, and a
12

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
market comparables approach. The DCF model includes significant assumptions about revenue growth rates, long-term growth rates and enterprise specific discount rates. Given the uncertainty in determining assumptions underlying the DCF approach, actual results may differ from those used in the valuations.
During the second quarter of 2023, the Company also determined that a triggering event had occurred with respect to the 25/7 Media reporting unit, which required an interim goodwill impairment test to be performed. Accordingly, the Company performed a quantitative assessment using an income approach, specifically a DCF model, and a market comparables approach. Based on the valuations performed, a $1.9 million goodwill impairment charge was recorded, which is included in impairment and other charges in the consolidated statement of income, within the International and Other operating segment.


Note 8. Accrued Liabilities
Accrued liabilities consist of the following:
(In thousands)June 30, 2023December 31, 2022
Employee related costs$70,760 $97,362 
Participations and residuals160,736 138,384 
Interest37,008 37,105 
Restructuring and other related charges33,718 107,998 
Other accrued expenses72,581 38,216 
Total accrued liabilities$374,803 $419,065 

Note 9. Long-term Debt
The Company's long-term debt consists of the following:
(In thousands)June 30, 2023December 31, 2022
Senior Secured Credit Facility: (a)
Term Loan A Facility$624,375 $641,250 
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 debt2,824,375 2,841,250 
Unamortized discount(16,425)(18,718)
Unamortized deferred financing costs(8,204)(10,079)
Long-term debt, net2,799,746 2,812,453 
Current portion of long-term debt450,625 33,750 
Noncurrent portion of long-term debt$2,349,121 $2,778,703 
(a)The Company's revolving credit facility remains undrawn at June 30, 2023. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company.
During the six months ended June 30, 2023, the Company repaid a total of $16.9 million of the principal amount of the Term Loan A Facility in accordance with the terms of the agreement.
In April 2023, the Company entered into Amendment No. 2 ("Amendment No. 2") to the Second Amended and Restated Credit Agreement (the "Credit Agreement"). Amendment No. 2 (i) reduced the aggregate principal amount of the revolving loan commitments under the Credit Agreement from $500 million to $400 million, (ii) replaced the interest rate based on London Interbank Offered Rate with an interest rate based on the Secured Overnight Financing Rate, (iii) increased the Company's ability to incur additional debt in the future to provide additional flexibility for future financings, including increasing the amount of the incremental debt basket to the greater of $1.2 billion and the amount that would not cause the senior secured leverage ratio to exceed 3.00 to 1.00 on a pro forma basis and (iv) made certain other modifications to the Credit Agreement. The maturity date of the Term Loan A Facility and revolving credit facility under the Credit Agreement is
13

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
February 8, 2026. In connection with the modification of the revolving loan commitments, the Company recorded $0.6 million to write-off a portion of the unamortized deferred financing costs, which is included in interest expense within the consolidated statements of income.
Other Debt
During the second quarter of 2023, a majority owned subsidiary of the Company extended its credit facility totaling $4.5 million to July 21, 2024. The facility bears interest at the greater of 3.5% or the prime rate plus 1%. There were no outstanding borrowings under the credit facility as of June 30, 2023.


Note 10. Leases
The following table summarizes the leases included in the condensed consolidated balance sheets as follows:
(In thousands)Balance Sheet LocationJune 30, 2023December 31, 2022
Assets
OperatingOperating lease right-of-use assets$97,567 $108,229 
FinanceProperty and equipment, net10,433 10,982 
Total lease assets$108,000 $119,211 
Liabilities
Current:
OperatingCurrent portion of lease obligations$32,383 $32,207 
FinanceCurrent portion of lease obligations4,445 4,204 
$36,828 $36,411 
Noncurrent:
OperatingLease obligations$91,640 $105,768 
FinanceLease obligations16,811 19,031 
$108,451 $124,799 
Total lease liabilities$145,279 $161,210 

Note 11. 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.
14

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 June 30, 2023 and December 31, 2022:
(In thousands)Level ILevel IILevel IIITotal
At June 30, 2023:
Assets
Cash equivalents$80,000 $ $ $80,000 
Foreign currency derivatives 7,563  7,563 
Liabilities
Foreign currency derivatives  4,762  4,762 
At December 31, 2022:
Assets
Cash equivalents
$80,000 $ $ $80,000 
Foreign currency derivatives
 536  536 
Liabilities
Foreign currency derivatives  8,965  8,965 
The Company's cash equivalents (comprised of money market mutual funds) 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 June 30, 2023 and December 31, 2022, the Company did not have any material 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.