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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, 2024
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 filer¨Accelerated filerþ
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 May 3, 2024:
Class A Common Stock par value $0.01 per share32,558,862
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, 2024December 31, 2023
ASSETS
Current Assets:
Cash and cash equivalents$690,522 $570,576 
Accounts receivable, trade (less allowance for doubtful accounts of $9,627 and $9,488)
629,073 664,396 
Current portion of program rights, net13,881 7,880 
Prepaid expenses and other current assets316,925 380,518 
Total current assets1,650,401 1,623,370 
Property and equipment, net of accumulated depreciation of $418,046 and $403,708
147,972 159,237 
Program rights, net1,753,270 1,802,653 
Intangible assets, net258,913 268,558 
Goodwill622,190 626,496 
Deferred tax assets, net11,748 11,456 
Operating lease right-of-use assets68,786 71,163 
Other assets398,276 406,854 
Total assets$4,911,556 $4,969,787 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable$90,594 $89,469 
Accrued liabilities351,280 385,838 
Current portion of program rights obligations286,870 301,221 
Deferred revenue61,252 65,736 
Current portion of long-term debt67,500 67,500 
Current portion of lease obligations 32,773 33,659 
Total current liabilities890,269 943,423 
Program rights obligations133,119 150,943 
Long-term debt, net2,279,086 2,294,249 
Lease obligations82,269 87,240 
Deferred tax liabilities, net156,858 160,383 
Other liabilities65,680 74,306 
Total liabilities3,607,281 3,710,544 
Commitments and contingencies
Redeemable noncontrolling interests197,370 185,297 
Stockholders' equity:
Class A Common Stock, $0.01 par value, 360,000 shares authorized, 66,730 and 66,670 shares issued and 32,559 and 32,077 shares outstanding, respectively
667 667 
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 capital369,877 378,877 
Accumulated earnings2,365,524 2,321,105 
Treasury stock, at cost (34,172 and 34,593 shares Class A Common Stock, respectively)
(1,410,105)(1,419,882)
Accumulated other comprehensive loss(245,803)(232,831)
Total AMC Networks stockholders' equity1,080,275 1,048,051 
Non-redeemable noncontrolling interests26,630 25,895 
Total stockholders' equity1,106,905 1,073,946 
Total liabilities and stockholders' equity$4,911,556 $4,969,787 
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,
 20242023
Revenues, net
$596,461 $717,447 
Operating expenses:
Technical and operating (excluding depreciation and amortization)
271,576 326,729 
Selling, general and administrative
188,881 185,606 
Depreciation and amortization25,826 25,875 
Restructuring and other related charges 5,933 
Total operating expenses486,283 544,143 
Operating income110,178 173,304 
Other income (expense):
Interest expense(32,841)(37,617)
Interest income8,885 7,916 
Miscellaneous, net(5,190)4,589 
Total other expense(29,146)(25,112)
Income from operations before income taxes81,032 148,192 
Income tax expense(23,649)(36,899)
Net income including noncontrolling interests57,383 111,293 
Net income attributable to noncontrolling interests(11,580)(7,683)
Net income attributable to AMC Networks' stockholders$45,803 $103,610 
Net income per share attributable to AMC Networks' stockholders:
Basic$1.04 $2.37 
Diluted$1.03 $2.36 
Weighted average common shares:
Basic44,068 43,628 
Diluted44,600 43,837 
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,
 20242023
Net income including noncontrolling interests$57,383 $111,293 
Other comprehensive income (loss):
Foreign currency translation adjustment(13,297)11,818 
Comprehensive income44,086 123,111 
Comprehensive income attributable to noncontrolling interests
(11,255)(8,173)
Comprehensive income attributable to AMC Networks' stockholders
$32,831 $114,938 
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
Total AMC Networks Stockholders’
Equity
Non-redeemable Noncontrolling InterestsTotal Stockholders' Equity
Balance, December 31, 2023$667 $115 $378,877 $2,321,105 $(1,419,882)$(232,831)$1,048,051 $25,895 $1,073,946 
Net income attributable to AMC Networks’ stockholders— — — 45,803 — — 45,803 — 45,803 
Net income attributable to non-redeemable noncontrolling interests— — — — — — — 1,060 1,060 
Redeemable noncontrolling interest adjustment to redemption fair value— — (2,721)— — — (2,721)— (2,721)
Other comprehensive loss— — — — — (12,972)(12,972)(325)(13,297)
Share-based compensation expenses— — 6,075 — — — 6,075 — 6,075 
Common stock issued under employee stock plans— — (8,393)(1,384)9,777 — — —  
Tax withholding associated with shares issued under employee stock plans— — (3,961)— — — (3,961)— (3,961)
Balance, March 31, 2024$667 $115 $369,877 $2,365,524 $(1,410,105)$(245,803)$1,080,275 $26,630 $1,106,905 



Class A
Common
Stock
Class B
Common
Stock
Paid-in
Capital
Accumulated EarningsTreasury
Stock
Accumulated
Other
Comprehensive
Loss
Total AMC Networks Stockholders’
Equity
Non-redeemable 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— — — 103,610 — — 103,610 — 103,610 
Net income attributable to non-redeemable noncontrolling interests— — — — — — — 1,413 1,413 
Distributions to noncontrolling member— — — — — — — (1,482)(1,482)
Other comprehensive income— — — — — 11,328 11,328 490 11,818 
Share-based compensation expenses— — 5,882 — — — 5,882 — 5,882 
Tax withholding associated with shares issued under employee stock plans4 — (6,016)— — — (6,012)— (6,012)
Balance, March 31, 2023$665 $115 $360,117 $2,209,251 $(1,419,882)$(228,470)$921,796 $47,246 $969,042 


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,
20242023
Cash flows from operating activities:
Net income including noncontrolling interests$57,383 $111,293 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization25,826 25,875 
Share-based compensation expenses related to equity classified awards6,075 5,645 
Amortization and write-off of program rights202,552 187,073 
Amortization of deferred carriage fees4,920 5,100 
Unrealized foreign currency transaction loss2,504 1,626 
Amortization of deferred financing costs and discounts on indebtedness1,750 1,938 
Deferred income taxes(4,011)(6,269)
Other, net(2,230)103 
Changes in assets and liabilities:
Accounts receivable, trade (including amounts due from related parties, net)30,704 15,893 
Prepaid expenses and other assets63,606 76,032 
Program rights and obligations, net(193,006)(370,304)
Deferred revenue(4,575)(64,702)
Accounts payable, accrued liabilities and other liabilities(40,629)(121,822)
Net cash provided by (used in) operating activities150,869 (132,519)
Cash flows from investing activities:
Capital expenditures(6,720)(11,498)
Proceeds from sale of investments 4,493 
Other investing activities, net3,936  
Net cash used in investing activities(2,784)(7,005)
Cash flows from financing activities:
Principal payments on long-term debt(16,875)(8,438)
Deemed repurchases of restricted stock units(3,961)(6,012)
Principal payments on finance lease obligations(1,129)(1,015)
Distributions to noncontrolling interests(1,168)(11,502)
Purchase of noncontrolling interests (1,343)
Net cash used in financing activities(23,133)(28,310)
Net increase (decrease) in cash and cash equivalents from operations124,952 (167,834)
Effect of exchange rate changes on cash and cash equivalents(5,006)1,764 
Cash and cash equivalents at beginning of period570,576 930,002 
Cash and cash equivalents at end of period$690,522 $763,932 

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 five national programming networks, our streaming services, our AMC Studios operation and our film distribution business. Our programming networks are AMC, WE tv, BBC AMERICA, IFC, and SundanceTV. Our streaming services consist of AMC+ and our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, ALLBLK, and HIDIVE). Our AMC Studios operation produces original programming for our programming services and third parties and also licenses programming worldwide. Our film distribution business includes IFC Films, RLJ Entertainment Films and Shudder. The operating segment also includes AMC Networks Broadcasting & Technology, our technical services business, which primarily services the programming networks.
International: AMC Networks International ("AMCNI"), our international programming businesses consisting of a portfolio of channels distributed around the world.
In 2024, the Company updated the name of its previously titled "International and Other" operating segment to "International" due to the divestiture of the 25/7 Media business on December 29, 2023, which was the sole component of the operating segment that comprised “Other.” This update does not constitute a change in segment reporting, but rather an update in name only. Prior period segment information contained in this report includes the results of the 25/7 Media business through the date of divestiture.
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, 2023 contained in the Company's Annual Report on Form 10-K (our "2023 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, 2024.
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.
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)
Recently Issued Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company will incorporate the required disclosure updates for the 2025 annual financial statements.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The Company will incorporate the required disclosure updates for the 2024 annual financial statements.

Note 2. Revenue Recognition
Transaction Price Allocated to Future Performance Obligations
As of March 31, 2024, 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, 2024December 31, 2023
Balances from contracts with customers:
     Accounts receivable (including long-term receivables within Other assets)$719,746 $750,390 
     Contract assets, short-term (included in Prepaid expenses and other current assets)2,364 2,364 
     Contract liabilities, short-term (Deferred revenue)61,252 65,736 
Revenue recognized for the three months ended March 31, 2024 and 2023 relating to the contract liabilities at December 31, 2023 and 2022 was $24.7 million and $82.6 million, respectively.
In October 2023, the Company entered into an agreement enabling it to sell certain customer receivables to a financial institution on a recurring basis for cash. The transferred receivables will be fully guaranteed by a bankruptcy-remote entity and the financial institution that purchases the receivables will have no recourse to the Company's other assets in the event of non-payment by the customers. The Company can sell an indefinite amount of customer receivables under the agreement on a revolving basis, but the outstanding balance of unpaid customer receivables to the financial institution cannot exceed the initial program limit of $125.0 million at any given time. As of March 31, 2024, the Company had not yet sold any customer receivables under this agreement.

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,
20242023
Basic weighted average common shares outstanding44,068 43,628 
Effect of dilution:
Restricted stock units532 209 
Diluted weighted average common shares outstanding44,600 43,837 
As of March 31, 2024 and March 31, 2023, 0.2 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.
7

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
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 months ended March 31, 2024 and 2023, the Company did not repurchase any shares of its Class A Common Stock. As of March 31, 2024, the Company had $135.3 million of authorization remaining for repurchase under the Stock Repurchase Program.

Note 4. Restructuring and Other Related Charges
There were no restructuring and other related charges for the three months ended March 31, 2024.
Restructuring and other related charges were $5.9 million for the three months ended March 31, 2023, consisting primarily of severance and other personnel costs related to a restructuring plan (the "Plan") that commenced on November 28, 2022. The Plan was 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 encompassed initiatives that included, among other things, strategic programming assessments and organizational restructuring costs. The Plan was 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 pertained 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.
The following table summarizes the restructuring and other related charges recognized by operating segment:
(In thousands)Three Months Ended March 31,
2023
Domestic Operations$818 
International1,385 
Corporate / Inter-segment eliminations3,730 
Total restructuring and other related charges$5,933 

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, 2023$8,726 $5,008 $13,734 
Cash payments(3,488)(1,333)(4,821)
Other(882)(128)(1,010)
Balance at March 31, 2024$4,356 $3,547 $7,903 
Accrued restructuring and other related costs of $7.9 million are included in Accrued liabilities in the condensed consolidated balance sheet at March 31, 2024. Accrued restructuring and other related costs of $12.1 million and $1.6 million are included in Accrued liabilities and Other liabilities, respectively, in the condensed consolidated balance sheet at December 31, 2023.

8

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Note 5. Program Rights
Total capitalized produced and licensed content by predominant monetization strategy is as follows:
March 31, 2024
(In thousands) Predominantly Monetized Individually  Predominantly Monetized as a Group  Total
Owned original program rights, net:
Completed$114,384 $587,345 $701,729 
In-production and in-development  246,276 246,276 
Total owned original program rights, net$114,384 $833,621 $948,005 
Licensed program rights, net:
Licensed film and acquired series$732 $572,597 $573,329 
Licensed originals 162,587 162,587 
Advances and other production costs 83,230 83,230 
Total licensed program rights, net732 818,414 819,146 
Program rights, net $115,116 $1,652,035 $1,767,151 
Current portion of program rights, net$13,881 
Program rights, net (long-term)1,753,270 
$1,767,151 

December 31, 2023
(In thousands) Predominantly Monetized Individually  Predominantly Monetized as a Group  Total
Owned original program rights, net:
Completed$139,363 $532,839 $672,202 
In-production and in-development  284,455 284,455 
Total owned original program rights, net$139,363 $817,294 $956,657 
Licensed program rights, net:
Licensed film and acquired series$973 $599,607 $600,580 
Licensed originals1,555 169,489 171,044 
Advances and other production costs 82,252 82,252 
Total licensed program rights, net2,528 851,348 853,876 
Program rights, net $141,891 $1,668,642 $1,810,533 
Current portion of program rights, net$7,880 
Program rights, net (long-term)1,802,653 
$1,810,533 

9

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Amortization, including write-offs, 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 March 31, 2024
(In thousands)Predominantly Monetized IndividuallyPredominantly Monetized as a GroupTotal
Owned original program rights$24,852 $60,106 $84,958 
Licensed program rights1,631 115,963 117,594 
Program rights amortization$26,483 $176,069 $202,552 
Three Months Ended March 31, 2023
(In thousands)Predominantly Monetized IndividuallyPredominantly Monetized as a GroupTotal
Owned original program rights$21,303 $44,936 $66,239 
Licensed program rights1,664 119,170 120,834 
Program rights amortization$22,967 $164,106 $187,073 
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 condensed 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 months ended March 31, 2024 or 2023.
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 as of March 31, 2024 consisted of $235.9 million recorded in Prepaid expenses and other current assets and $45.9 million recorded in Other assets. Receivables related to tax incentives earned on production spend as of December 31, 2023 consisted of $230.3 million recorded in Prepaid expenses and other current assets and $49.9 million 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 $83.6 million and $83.1 million at March 31, 2024 and December 31, 2023, respectively.
Non-marketable Equity Securities
Investments in non-marketable equity securities were $42.6 million and $41.6 million at March 31, 2024 and December 31, 2023, respectively. No gains or losses were recorded on non-marketable equity securities for the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company recognized an impairment charge of $1.2 million on an investment, which is included in Miscellaneous, net in the condensed consolidated statements of income.

10

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Note 7. Goodwill and Other Intangible Assets
The carrying amount of goodwill, by operating segment is as follows:
(In thousands)Domestic OperationsInternationalTotal
December 31, 2023$348,732 $277,764 $626,496 
Foreign currency translation (4,306)(4,306)
March 31, 2024$348,732 $273,458 $622,190 
As of March 31, 2024 and December 31, 2023, accumulated impairment charges in the International segment totaled $185.5 million.

The following tables summarize information relating to the Company's identifiable intangible assets:
(In thousands)March 31, 2024
GrossAccumulated AmortizationNetEstimated Useful Lives
Amortizable intangible assets:
Affiliate and customer relationships$615,455 $(426,361)$189,094 
6 to 25 years
Advertiser relationships46,282 (43,280)3,002 
11 years
Trade names and other amortizable intangible assets90,474 (43,557)46,917 
3 to 20 years
Total amortizable intangible assets752,211 (513,198)239,013 
Indefinite-lived intangible assets:
Trademarks19,900 — 19,900 
Total intangible assets$772,111 $(513,198)$258,913 
(In thousands)December 31, 2023
GrossAccumulated AmortizationNet
Amortizable intangible assets:
Affiliate and customer relationships$618,778 $(421,968)$196,810 
Advertiser relationships46,282 (42,806)3,476 
Trade names and other amortizable intangible assets91,134 (42,762)48,372 
Total amortizable intangible assets756,194 (507,536)248,658 
Indefinite-lived intangible assets:
Trademarks19,900 — 19,900 
Total intangible assets$776,094 $(507,536)$268,558 

Aggregate amortization expense for amortizable intangible assets for the three months ended March 31, 2024 and 2023 was $8.6 million and $10.4 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,
2024$36,332 
202535,061 
202632,539 
202727,835 
202825,695 
11

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Note 8. Accrued Liabilities
Accrued liabilities consist of the following:
(In thousands)March 31, 2024December 31, 2023
Employee related costs$92,063 $93,866 
Participations and residuals165,784 164,375 
Interest12,027 31,749 
Restructuring and other related charges7,903 12,149 
Other accrued expenses73,503 83,699 
Total accrued liabilities$351,280 $385,838 

Note 9. Long-term Debt
The following table summarizes the Company's long-term debt included in the condensed consolidated balance sheet as follows:
(In thousands)March 31, 2024December 31, 2023
Senior Secured Credit Facility: (a)
Term Loan A Facility$590,625 $607,500 
Senior Notes:
4.75% Notes due August 2025
774,729 774,729 
       4.25% Notes due February 2029
1,000,000 1,000,000 
Total long-term debt2,365,354 2,382,229 
Unamortized discount(12,875)(13,873)
Unamortized deferred financing costs(5,893)(6,607)
Long-term debt, net2,346,586 2,361,749 
Current portion of long-term debt67,500 67,500 
Noncurrent portion of long-term debt$2,279,086 $2,294,249 
(a)The Company's revolving credit facility remained undrawn at March 31, 2024. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company.
During the three months ended March 31, 2024, 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.
Amendment to Credit Agreement
On April 9, 2024, AMC Networks entered into Amendment No. 3 ("Amendment No. 3") to the Second Amended and Restated Credit Agreement, dated as of July 28, 2017 (as amended to date and by Amendment No. 3, the “Credit Agreement”), among AMC Networks and its subsidiary, AMC Network Entertainment LLC (“AMC Network Entertainment”), as the initial borrowers, certain of AMC Networks' subsidiaries, as restricted subsidiaries, Bank of America, N.A., as an L/C Issuer, the lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent, Collateral Agent and an L/C Issuer.
In connection with Amendment No. 3, AMC Networks made a partial prepayment of the Term Loan A facility under the Credit Agreement (the “Term Loan A Facility”), bringing the total principal amount outstanding under the Term Loan A Facility to $425 million, and reduced the revolving credit facility under the Credit Agreement (the “Revolving Credit Facility”) to $175 million. In addition, pursuant to Amendment No. 3, the maturity date of $325 million principal amount of loans under the Term Loan A Facility as well as all of the commitments under the Revolving Credit Facility has been extended to April 9, 2028. The maturity date of the remaining $100 million principal amount of loans under the Term Loan A Facility continues to be February 8, 2026. Amendment No. 3 also includes certain other modifications to covenants and other provisions of the Credit Agreement.
12

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Senior Secured Notes Offering
On April 9, 2024, AMC Networks issued $875 million aggregate principal amount of 10.25% Senior Secured Notes due January 15, 2029 (the “Secured Notes”). AMC Networks received net proceeds of $863 million, after deducting underwriting discounts. The Secured Notes are guaranteed by AMC Network Entertainment and AMC Networks' subsidiaries that guarantee the Credit Agreement (the "Guarantors").
The Secured Notes were issued pursuant to an Indenture, dated as of April 9, 2024 (the “Indenture”), among AMC Networks, the Guarantors and U.S. Bank Trust Company, National Association, as Trustee.
The Secured Notes accrue interest at a rate of 10.25% per annum and mature on January 15, 2029. Interest is payable semiannually on January 15 and July 15 of each year, commencing on July 15, 2024. The Secured Notes are AMC Networks’ general senior secured obligations, secured on a first-priority basis by substantially all of AMC Networks’ and the Guarantors’ assets and property, subject to certain liens permitted under the Indenture, and rank equally with all of AMC Networks’ existing and future senior indebtedness, senior in right of payment to AMC Networks’ future subordinated indebtedness and effectively senior to any of AMC Networks’ existing and future unsecured indebtedness or indebtedness that is secured by a lien ranking junior to the lien securing the Notes, in each case, to the extent of the value of the collateral.
On or after January 15, 2026, AMC Networks may redeem the Secured Notes, at its option, in whole or in part, at any time and from time to time, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest thereon, to the applicable redemption date, if redeemed during the twelve month period beginning on January 15 of the years indicated below:
YearPercentage
2026105.125%
2027102.563%
2028 and thereafter100.000%
In addition to the optional redemption of the Secured Notes described above, at any time prior to January 15, 2026, AMC Networks may redeem up to 40% of the aggregate principal amount of the Secured Notes at a redemption price equal to 110.250% of the principal amount thereof, plus accrued and unpaid interest and additional interest, if any, using the net proceeds of certain equity offerings. At any time prior to January 15, 2026, AMC Networks may also redeem up to 10% of the aggregate principal amount of the Secured Notes during any twelve month period at a redemption price equal to 103.000% of the aggregate principal amount thereof, plus accrued and unpaid interest thereon to, but excluding, the redemption date.
Finally, at any time prior to January 15, 2026, AMC Networks may redeem the Secured Notes, at its option in whole or in part, at any time, at a redemption price equal to 100% of the principal amount thereof to be redeemed plus the “Applicable Premium” calculated as described in the Indenture at the Treasury rate + 50 basis points, and accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

Tender Offer and Redemption of Senior Notes due August 2025
On April 22, 2024, AMC Networks completed a cash tender offer (the "Offer") to purchase any and all outstanding 4.75% Senior Notes due 2025 and redeemed all 4.75% Senior Notes due 2025 that remained outstanding after completion of the Offer at a price of 100.000% of their principal amount, plus accrued and unpaid interest to, but not including, the redemption date.


13

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Note 10. Leases
The following table summarizes the leases included in the condensed consolidated balance sheets as follows:
(In thousands)Balance Sheet LocationMarch 31, 2024December 31, 2023
Assets
OperatingOperating lease right-of-use assets$68,786 $71,163 
FinanceProperty and equipment, net9,609 9,884 
Total lease assets$78,395 $81,047 
Liabilities
Current:
OperatingCurrent portion of lease obligations$28,004 $28,971 
FinanceCurrent portion of lease obligations4,769 4,688 
$32,773 $33,659 
Noncurrent:
OperatingLease obligations$69,105 $72,797 
FinanceLease obligations13,164 14,443 
$82,269 $87,240 
Total lease liabilities$115,042 $120,899 

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 March 31, 2024 and December 31, 2023:
(In thousands)Level ILevel IILevel IIITotal
At March 31, 2024:
Assets
Cash equivalents$61,894 $ $ $61,894 
Foreign currency derivatives 4,198  4,198 
Liabilities
Foreign currency derivatives  3,221  3,221 
At December 31, 2023:
Assets
Foreign currency derivatives
$ $8,277 $ $8,277 
Liabilities
Foreign currency derivatives  2,295  2,295 
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 March 31, 2024 and December 31, 2023, 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.
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, 2024
Carrying
Amount
Estimated
Fair Value
Debt instruments:
Term loan A facility$586,259 $574,383 
4.75% Notes due August 2025
771,617 770,855 
4.25% Notes due February 2029
988,710 707,500 
$2,346,586 $2,052,738 
15

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
(In thousands)December 31, 2023
Carrying
Amount
Estimated
Fair Value
Debt instruments:
Term loan A facility$602,551 $577,884 
4.75% Notes due August 2025
771,013 745,677 
4.25% Notes due February 2029
988,185 780,670 
$2,361,749 $2,104,231 
Fair value estimates related to the Company's debt instruments presented above are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Note 12. Derivative Financial Instruments
Foreign Currency Exchange Rate Risk
We are exposed to foreign currency risk to the extent that we enter into transactions denominated in currencies other than one of our subsidiaries' respective functional currencies (non-functional currency risk), such as affiliation agreements, programming contracts, certain trade receivables and accounts payable (including intercompany amounts) that are denominated in a currency other than the applicable functional currency.
The fair values of the Company's derivative financial instruments included in the condensed consolidated balance sheets are as follows:
(In thousands)Balance Sheet LocationMarch 31, 2024December 31, 2023
Derivatives not designated as hedging instruments:
Assets:
Foreign currency derivatives Prepaid expenses and other current assets$689 $378 
Foreign currency derivatives Other assets3,509 7,899 
Liabilities:
Foreign currency derivatives Accrued liabilities$989 $1,065 
Foreign currency derivativesCurrent portion of program rights obligations 8 
Foreign currency derivatives Other liabilities2,232 1,222 

The amounts of gains and losses related to the Company's derivative financial instruments not designated as hedging instruments are as follows:
(In thousands)Location of Gain (Loss) Recognized in Earnings on DerivativesAmount of Gain (Loss) Recognized in Earnings on Derivatives
Three Months Ended March 31,
 20242023
Foreign currency derivatives Miscellaneous, net$(5,030)$4,905 

Note 13. Income Taxes
For the three months ended March 31, 2024, income tax expense was $23.6 million, representing an effective rate of 29%, as compared to the federal statutory rate of 21%. The effective rate differs from the federal statutory rate due primarily to state and local income tax expense, tax expense related to non-deductible compensation, tax expense for shortfalls related to share-based compensation and tax expense for an increase in the valuation allowance for foreign taxes.
16

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
For the three months ended March 31, 2023, income tax expense was $36.9 million, representing an effective rate of 25%, as compared to the federal statutory rate of 21%. The effective rate differs from the federal statutory rate due primarily to state and local income tax expense and tax expense for shortfalls related to share-based compensation.
At March 31, 2024, the Company had foreign tax credit carry forwards of approximately $50.3 million, expiring on various dates from 2024 through 2034. These carryforwards have been reduced to zero by a valuation allowance of $50.3 million as it is more likely than not that these carry forwards will not be realized.
As of March 31, 2024, the Company's consolidated cash and cash equivalents balance of $690.5 million included approximately $132.1 million held by foreign subsidiaries. Of this amount, approximately $20.0 million is expected to be repatriated to the United States with the remaining amount continuing to be reinvested in foreign operations. Tax expense related to the expected repatriation amount has been accrued in prior periods and the Company does not expect to incur any significant, additional taxes related to the remaining balance.
In December 2021, the Organization for Economic Co-operation and Development (OECD) released the Pillar Two Model Rules, which aim to reform international corporate taxation rules, including the implementation of a global minimum tax rate. The Company began the phased implementation of the Pillar Two Model Rules in the first quarter of 2024 and as of March 31, 2024, the Pillar Two minimum tax requirement is not expected to have a material impact upon the Company's full year results of operations or financial position.

Note 14. Commitments and Contingencies
Commitments
As of March 31, 2024, the Company's contractual obligations not reflected on the Company's condensed consolidated balance sheet increased $6.9 million, as compared to December 31, 2023, to $880.5 million. The increase was primarily driven by additional program rights commitments, partially offset by payments for program rights.
Legal Matters
On August 14, 2017, Robert Kirkman, Robert Kirkman, LLC, Glen Mazzara, 44 Strong Productions, Inc., David Alpert, Circle of Confusion Productions, LLC, New Circle of Confusion Productions, Inc., Gale Anne Hurd, and Valhalla Entertainment, Inc. f/k/a Valhalla Motion Pictures, Inc. (together, the "Plaintiffs") filed a complaint in California Superior Court in connection with Plaintiffs’ rendering of services as writers and producers of the television series entitled The Walking Dead, as well as Fear the Walking Dead and/or Talking Dead, and the agreements between the parties related thereto (the "Walking Dead Litigation"). The Plaintiffs asserted that the Company had been improperly underpaying the Plaintiffs under their contracts with the Company and they asserted claims for breach of contract, breach of the implied covenant of good faith and fair dealing, inducing breach of contract, and liability for violation of Cal. Bus. & Prof. Code § 17200. The Plaintiffs sought compensatory and punitive damages and restitution. On August 8, 2019, the judge in the Walking Dead Litigation ordered a trial to resolve certain issues of contract interpretation only. Following eight days of trial in February and March 2020, on July 22, 2020, the judge issued a Statement of Decision finding in the Company's favor on all seven matters of contract interpretation before the court in this first phase trial. On January 20, 2021, the Plaintiffs filed a second amended complaint, eliminating eight named defendants and their claims under Cal. Bus. & Prof. Code § 17200. On May 5, 2021, the Plaintiffs filed a third amended complaint, repleading in part their claims for alleged breach of the implied covenant of good faith and fair dealing, inducing breach of contract, and certain breach of contract claims. On June 2, 2021, the Company filed a demurrer and motion to strike seeking to dismiss the claim for breach of the implied covenant of good faith and fair dealing and certain tort and breach of contract claims asserted in the third amended complaint. On July 27, 2021, the court granted in part and denied in part the Company's motion. On January 12, 2022, the Company filed a motion for summary adjudication of many of the remaining claims. On April 6, 2022, the court granted the Company’s summary adjudication motion in part, dismissing the Plaintiffs’ claims for breach of the implied covenant of good faith and fair dealing and inducing breach of contract. On January 26, 2023, the Plaintiffs filed a notice of appeal of the court’s post-trial, demurrer, and summary adjudication decisions. The parties entered into an agreement to resolve through confidential binding arbitration the remaining claims in the litigation (consisting mainly of ordinary course profit participation audit claims), and as a result, the court formally dismissed the case. The arbitration to resolve the two remaining claims for breach of contract was held between October 16 through October 20, 2023. On March 12, 2024, the arbitral panel issued a decision awarding the Plaintiffs the sum of approximately $7.8 million. The arbitral panel's decision did not have a material impact on the Company's financial condition or results of operations.
On November 14, 2022, the Plaintiffs filed a separate complaint in California Superior Court (the “MFN Litigation”) in connection with the Company’s July 16, 2021 settlement agreement with Frank Darabont (“Darabont”), Ferenc, Inc., Darkwoods Productions, Inc., and Creative Artists Agency, LLC (the “Darabont Parties”), which resolved litigations the
17

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Darabont Parties had brought in connection with Darabont's rendering services as a writer, director and producer of the television series entitled The Walking Dead and the agreement between the parties related thereto (the “Darabont Settlement”). Plaintiffs assert claims for breach of contract, alleging that the Company breached the most favored nations (“MFN”) provisions of Plaintiffs’ contracts with the Company by failing to pay them additional contingent compensation as a result of the Darabont Settlement (the “MFN Litigation”). Plaintiffs claim in the MFN Litigation that they are entitled to actual and compensatory damages in excess of $200 million. The Plaintiffs also brought a cause of action to enjoin an arbitration the Company commenced in May 2022 concerning the same dispute. On December 15, 2022, the Company removed the MFN Litigation to the United States District Court for the Central District of California. On January 13, 2023, the Company filed a motion to dismiss the MFN Litigation and informed the court that the Company had withdrawn the arbitration Plaintiffs sought to enjoin. On March 25, 2024, the Court issued a ruling denying the Company’s motion to dismiss and the matter is proceeding to discovery. The trial for this matter, previously scheduled for September 17, 2024, has been rescheduled to May 6, 2025. The Company believes that the asserted claims are without merit and will vigorously defend against them if they are not dismissed. At this time, no determination can be made as to the ultimate outcome of this litigation or the potential liability, if any, on the part of the Company.
The Company is party to actions and claims arising from alleged violations of the federal Video Privacy Protection Act (the “VPPA”) and analogous state laws. In addition to certain putative class actions currently pending, the Company is facing a series of arbitration claims managed by multiple plaintiffs’ law firms. The class action complaints and the arbitration claims all allege that the Company’s use of a Meta Platforms, Inc. pixel on the websites for certain of its subscription video services, including AMC+ and Shudder, violated the privacy protection provisions of the VPPA and its state law analogues. On October 27, 2023, the Company reached a settlement with multiple plaintiffs relating to their pending class actions alleging violations of the VPPA and analogous state laws. On January 10, 2024, the class action settlement was preliminarily approved by the United States District Court for the Southern District of New York. The Company has also reached settlements to resolve the arbitration claims. All of the settlements reached by the Company in connection with these matters are expected to be reimbursed by the Company’s insurance carriers.
The Company is party to various lawsuits and claims in the ordinary course of business, including the matters described above, as well as other lawsuits and claims relating to employment, intellectual property, and privacy and data protection matters. Although the outcome of these matters cannot be predicted with certainty and while the impact of these matters on the Company's results of operations in any particular subsequent reporting period could be material, management does not believe that the resolution of these matters will have a material adverse effect on the financial position of the Company or the ability of the Company to meet its financial obligations as they become due.

Note 15. Equity Plans
During the first quarter of 2024, AMC Networks granted 2,016,192 restricted stock units ("RSUs") to certain executive officers and employees under the AMC Networks Inc. Amended and Restated 2016 Employee Stock Plan, which vest ratably over a three-year period.
During the three months ended March 31, 2024, 813,111 RSUs of AMC Networks Class A Common Stock previously issued to employees of the Company vested. On the vesting date, 331,383 RSUs were surrendered to AMC Networks to cover the required statutory tax withholding obligations and 481,728 shares of AMC Networks Class A Common Stock were issued. Units are surrendered to satisfy the employees' statutory minimum tax withholding obligations for the applicable income and other employment tax. The units surrendered during the three months ended March 31, 2024 had an aggregate value of $4.0 million, which has been reflected as a financing activity in the condensed consolidated statement of cash flows for the three months ended March 31, 2024.
The Company recorded share-based compensation expenses of $6.1 million and $5.9 million (including $0.3 million recorded as part of Restructuring and other related charges) for the three months ended March 31, 2024 and 2023, respectively. Share-based compensation expenses are recognized in the condensed consolidated statements of income as part of Selling, general and administrative expenses.
As of March 31, 2024, there was $41.9 million of total unrecognized share-based compensation cost related to outstanding unvested share-based awards. The unrecognized compensation cost is expected to be recognized over a weighted average remaining period of approximately 2.4 years.

18

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Note 16. Redeemable Noncontrolling Interests
In connection with the Company's previous acquisitions of New Video Channel America L.L.C (owner of the cable channel BBC America) and RLJ Entertainment, the terms of the acquisition agreements provide the noncontrolling members with a right to put all of their noncontrolling interest to subsidiaries of the Company at a future time. Since the exercise of these put rights is outside the Company's control, the noncontrolling interest in each entity is presented as a redeemable noncontrolling interest outside of stockholders' equity on the Company's condensed consolidated balance sheet.
The following tables summarize activity related to redeemable noncontrolling interest for the three months ended March 31, 2024 and 2023:
(In thousands)Three Months Ended March 31, 2024
December 31, 2023$185,297 
Net earnings10,520 
Distributions(1,168)
Adjustment to redemption fair value2,721 
March 31, 2024$197,370 
(In thousands)Three Months Ended March 31, 2023
December 31, 2022$253,669 
Net earnings6,270 
Distributions(10,020)
March 31, 2023$249,919 

Note 17. Related Party Transactions
The Company and its related parties enter into transactions with each other in the ordinary course of business. Revenues, net from related parties amounted to $1.3 million and $1.3 million for the three months ended March 31, 2024 and 2023, respectively. Amounts charged to the Company, included in Selling, general and administrative expenses, pursuant to transactions with its related parties amounted to $0.4 million and $3.3 million for the three months ended March 31, 2024 and 2023, respectively.
Note 18. Cash Flows
The following table details the Company's non-cash investing and financing activities and other supplemental data:
(In thousands)Three Months Ended March 31,
20242023
Non-Cash Investing and Financing Activities:
Operating lease additions$2,971 $ 
Capital expenditures incurred but not yet paid660 5,606 
Supplemental Data:
Cash interest paid50,801 50,791 
Income tax (refunds) payments, net(27,738)6,507 

Note 19. Segment Information
The Company classifies its operations into two operating segments: Domestic Operations and International. These operating segments represent strategic business units that are managed separately.
19

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
In 2024, the Company updated the name of its previously titled "International and Other" operating segment to "International" due to the divestiture of the 25/7 Media business on December 29, 2023, which was the sole component of the operating segment that comprised “Other.” This update does not constitute a change in segment reporting, but rather an update in name only. Prior period segment information contained in this report includes the results of the 25/7 Media business through the date of divestiture.
The Company evaluates segment performance based on several factors, of which the primary financial measure is operating segment adjusted operating income ("AOI"). The Company defines AOI as operating income (loss) before depreciation and amortization, cloud computing amortization, share-based compensation expenses or benefit, impairment and other charges (including gains or losses on sales or dispositions of businesses), restructuring and other related charges and including the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees. The Company has presented the components that reconcile adjusted operating income to operating income, and other information as to the continuing operations of the Company's operating segments below.

(In thousands)Three Months Ended March 31, 2024
Domestic OperationsInternationalCorporate / Inter-segment
Eliminations
Consolidated
Revenues, net
Subscription$322,558 $50,849 $ $373,407 
Content licensing and other61,814 3,232 (3,370)61,676 
   Distribution and other384,372 54,081 (3,370)435,083 
   Advertising139,854 21,524  161,378 
Consolidated revenues, net$524,226 $75,605 $(3,370)$596,461 
Operating income (loss)$142,017 $8,609 $(40,448)$110,178 
Share-based compensation expenses3,230 766 2,079 6,075 
Depreciation and amortization10,027 4,025 11,774 25,826 
Cloud computing amortization3,548   3,548 
Majority-owned equity investees AOI3,497   3,497 
Adjusted operating income (loss)$162,319 $13,400 $(26,595)$149,124 

(In thousands)Three Months Ended March 31, 2023
Domestic OperationsInternationalCorporate / Inter-segment
Eliminations
Consolidated
Revenues, net
Subscription$347,530 $56,690 $ $404,220 
Content licensing and other103,263 32,860 (2,479)133,644 
   Distribution and other450,793 89,550 (2,479)537,864 
   Advertising161,061 18,522  179,583 
Consolidated revenues, net$611,854 $108,072 $(2,479)$717,447 
Operating income (loss)$199,488 $14,142 $(40,326)$173,304 
Share-based compensation expenses4,447 839 359 5,645 
Depreciation and amortization11,854 4,771 9,250 25,875 
Restructuring and other related charges818 1,385 3,730 5,933 
Cloud computing amortization5  2,225 2,230 
Majority-owned equity investees AOI2,776   2,776 
Adjusted operating income (loss)$219,388 $21,137 $(24,762)$215,763 
20

AMC NETWORKS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(unaudited)
Subscription revenues in the Domestic Operations segment include revenues related to the Company's streaming services of $145.1 million and $140.9 million for the three months ended March 31, 2024 and 2023.
Corporate overhead costs not allocated to the segments include costs such as executive salaries and benefits and costs of maintaining corporate headquarters, facilities and common support functions.
Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International segments.
(In thousands)Three Months Ended March 31,
20242023
Inter-segment revenues
Domestic Operations$(1,845)$(2,214)
International(1,525)(265)
$(3,370)$(2,479)
The table below summarizes revenues based on customer location:
(In thousands)Three Months Ended March 31,
20242023
Revenues
United States$484,093 $606,228 
Europe77,251 73,767 
Other35,117 37,452 
$596,461 $717,447 
One customer within the Domestic Operations segment accounted for approximately 15% and 13% of consolidated revenues, net for the three months ended March 31, 2024 and 2023, respectively.
The table below summarizes property and equipment based on asset location:
(In thousands)March 31, 2024December 31, 2023
Property and equipment, net
United States$135,788 $146,314 
Europe10,930 11,850 
Other1,254 1,073 
$147,972 $159,237 

21


Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations.
This Management's Discussion and Analysis of Financial Condition and Results of Operations contains statements that constitute forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. In this Management's Discussion and Analysis of Financial Condition and Results of Operations there are statements concerning our future operating results and future financial performance. Words such as "expects," "anticipates," "believes," "estimates," "may," "will," "should," "could," "potential," "continue," "intends," "plans" and similar words and terms used in the discussion of future operating results and future financial performance identify forward-looking statements. You are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties and that actual results or developments may differ materially from the forward-looking statements as a result of various factors. Factors that may cause such differences to occur include, but are not limited to:
the level of our revenues;
market demand, including changes in viewer consumption patterns, for our programming networks, our subscription streaming services, our programming, and our production services;
demand for advertising inventory and our ability to deliver guaranteed viewer ratings;
the highly competitive nature of the cable, telecommunications, streaming and programming industries;
the cost of, and our ability to obtain or produce, desirable content for our programming services, other forms of distribution, including digital and licensing in international markets, as well as our film distribution businesses;
market demand for our owned original programming and our film content;
the loss of any of our key personnel and artistic talent;
the impact of strikes, including those related to the Writers, Directors, and Screen Actors guilds;
the security of our program rights and other electronic data;
our ability to maintain and renew distribution or affiliation agreements with distributors;
economic and business conditions and industry trends in the countries in which we operate, including increases in inflation rates and recession risk;
fluctuations in currency exchange rates and interest rates;
changes in domestic and foreign laws or regulations under which we operate;
changes in laws or treaties relating to taxation, or the interpretation thereof, in the United States or in the countries in which we operate;
the impact of existing and proposed federal, state and international laws and regulations relating to data protection, privacy and security, including the European Union's General Data Protection Regulation ("GDPR"), the California Consumer Privacy Act ("CCPA") and other similar comprehensive privacy and security laws that have been or may be enacted in other states;
our substantial debt and high leverage;
reduced access to, or inability to access, capital or credit markets, or significant increases in costs to borrow;
the level of our expenses;
future acquisitions and dispositions of assets;
our ability to successfully acquire new businesses and, if acquired, to integrate, and implement our plan with respect to businesses we acquire;
problems we may discover post-closing with the operations, including the internal controls and financial reporting process, of businesses we acquire;
uncertainties regarding the financial results of equity method investees, issuers of our investments in marketable equity securities and non-marketable equity securities and changes in the nature of key strategic relationships with partners and joint ventures;
the outcome of litigation, arbitration and other proceedings;
whether pending uncompleted transactions, if any, are completed on the terms and at the times set forth (if at all);
financial community and rating agency perceptions of our business, operations, financial condition and the industry in which we operate;
the impact of pandemics or other health emergencies on the economy and our business;
events that are outside our control, such as political unrest in international markets, terrorist attacks, natural disasters and other similar events; and
the factors described under Item 1A, "Risk Factors" in our 2023 Annual Report on Form 10-K (the "2023 Form 10-K"), as filed with the Securities and Exchange Commission ("SEC").
We disclaim any obligation to update or revise the forward-looking statements contained herein, except as otherwise required by applicable federal securities laws.

22


Introduction
Management's Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, is a supplement to and should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included elsewhere herein and our 2023 Form 10-K to enhance the understanding of our financial condition, changes in financial condition and results of our operations. Unless the context otherwise requires, all references to "we," "us," "our," "AMC Networks" or the "Company" refer to AMC Networks Inc., together with its subsidiaries. The MD&A is organized as follows:
Business Overview. This section provides a general description of our business and our operating segments, as well as other matters that we believe are important in understanding our results of operations and financial condition and in anticipating future trends.
Consolidated Results of Operations. This section provides an analysis of our results of operations for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. Our discussion is presented on both a consolidated and segment basis. Our two segments are: (i) Domestic Operations and (ii) International.
Liquidity and Capital Resources. This section provides a discussion of our financial condition as of March 31, 2024, as well as an analysis of our cash flows for the three months ended March 31, 2024 and 2023. The discussion of our financial condition and liquidity also includes summaries of (i) our primary sources of liquidity and (ii) our contractual obligations that existed at March 31, 2024 as compared to December 31, 2023.
Critical Accounting Policies and Estimates. This section provides an update, if any, to our significant accounting policies or critical accounting estimates since December 31, 2023.

Business Overview
Financial Highlights
The tables presented below set forth our consolidated revenues, net, operating income (loss) and adjusted operating income (loss) ("AOI")1, for the periods indicated.
(In thousands)Three Months Ended March 31,
20242023
Revenues, net
Domestic Operations$524,226 $611,854 
International75,605 108,072 
Inter-segment Eliminations(3,370)(2,479)
$596,461 $717,447 
Operating Income (Loss)
Domestic Operations$142,017 $199,488 
International8,609 14,142 
Corporate / Inter-segment Eliminations(40,448)(40,326)
$110,178 $173,304 
Adjusted Operating Income (Loss)
Domestic Operations$162,319 $219,388 
International13,400 21,137 
Corporate / Inter-segment Eliminations(26,595)(24,762)
$149,124 $215,763