AMC Networks Inc. (NASDAQ:AMCX) Files An 8-K Material ImpairmentsItem 2.06Material Impairments
On July 12, 2017, AMC DMC Holdings B.V., a wholly owned subsidiary of AMC Networks Inc. (the “Company”), entered into a sale and purchase agreement with TVT Ltd. for the sale of Digital Media Centre B.V. (“AMCNI – DMC”), an Amsterdam-based subsidiary that provides broadcast services to AMC Networks International and other third parties. Subsequent to the sale, TVT Ltd. will continue to provide broadcast services to AMC Networks International.
As of June 30, 2017, the Company concluded that the criteria under generally accepted accounting principles for held for sale classification was met. Accordingly, the assets and liabilities of AMCNI – DMC will be presented as held for sale, at fair value less an amount of estimated sale costs, at June 30, 2017. The Company will recognize a pre-tax impairment charge of approximately $17 million in the second quarter of 2017. Additionally, the Company will recognize a pre-tax loss of approximately $12 million on the sale of AMCNI – DMC in the third quarter of 2017. The loss on sale may vary due to the finalization of certain purchase price adjustments.
About AMC Networks Inc. (NASDAQ:AMCX)
AMC Networks Inc. is a holding company, which conducts all of its operations through its subsidiaries. The Company owns and operates entertainment businesses and assets. The Company operates through two segments: National Networks, and International and Other. The National Networks segment principally includes activities of its programming businesses, which include its programming networks distributed in the United States and Canada. The International and Other segment principally includes AMC Networks International (AMCNI), the Company’s international programming businesses consisting of a portfolio of channels in Europe, Latin America, the Middle East and parts of Asia and Africa; IFC Films, the Company’s independent film distribution business; AMCNI- DMC, the broadcast solutions unit of certain networks of AMCNI and third-party networks, and various developing online content distribution initiatives.