AMC Networks(AMCX) - 2018 Q4 - Annual Report

Subscriber Base and Distribution - As of December 31, 2018, AMC Networks reached approximately 89 million Nielsen subscribers in the U.S. and had distribution agreements with all major U.S. distributors[43]. - AMCNI delivers programming to subscribers in over 130 countries, managing a portfolio of channel brands including AMC and SundanceTV[62]. Programming and Content Production - WE tv was the 1 U.S. cable network for African-American women on Thursday nights, with its latest hit series, Love After Lockup, being the fastest-growing new cable reality series for 2018[44]. - BBC AMERICA's original series Killing Eve finished its first season with an unbroken record of weekly ratings growth in the key adults 25-54 and 18-49 demographics[47]. - AMC Studios has ramped up production of original series, producing critically acclaimed titles such as The Walking Dead and Fear the Walking Dead since its launch in 2010[58]. - IFC Films has a film library consisting of more than 800 titles, distributing independent films across various media platforms[66]. - The Death of Stalin, a notable release from IFC Films, was awarded Best Screenplay by the National Society of Film Critics and featured in several critics' annual "Best of" lists[67]. - The Paul Dano-directed Wildlife received a 94% rating on Rotten Tomatoes and was showcased at prestigious film festivals including Sundance and Cannes[68]. - The company operates subscription streaming services, Sundance Now and Shudder, which feature independent films and horror content, respectively[71]. - AMC has launched AMC Premiere, providing commercial-free viewing and exclusive content to subscribers, expanding its offerings since its launch in 2017[41]. Financial Overview - As of December 31, 2018, the company had $3.1 billion of debt outstanding, with $739.7 million subject to variable interest rates[358]. - The fair value of the company's fixed rate debt of $2.25 billion was less than its carrying value by $119.3 million as of December 31, 2018[356]. - Approximately 79% of the company's debt is effectively fixed, with 76% being fixed rate obligations and 3% fixed through interest rate swap contracts[359]. - A hypothetical 100 basis point increase in interest rates would increase the company's annual interest expense by approximately $7.4 million[358]. Acquisitions and Investments - The company acquired a controlling interest in Levity Entertainment Group in April 2018, enhancing its portfolio in live comedy and original content production[72]. - In October 2018, the company acquired a controlling interest in RLJ Entertainment, which operates premium subscription streaming services including Acorn TV and UMC[73]. Currency and Regulatory Risks - The company recognized $(6.8) million, $15.0 million, and $(39.0) million of foreign currency transaction gains (losses) for the years ended December 31, 2018, 2017, and 2016, respectively[362]. - The company is exposed to foreign currency risk due to transactions denominated in currencies other than its subsidiaries' functional currencies[360]. - The company maintains various websites that may be subject to federal, state, and local laws regarding privacy, data security, and consumer protection regulations[81].