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<div> <div> Note 12. Cash Flows The Company's non-cash investing and financing activities and other supplemental data were as follows: <div> <table border="0" cellspacing="0"> <tr><td width="65%"> </td> <td width="3%"> </td> <td width="12%"> </td> <td width="4%"> </td> <td width="9%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" colspan="3" align="right">Three Months Ended March 31,</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="center">2012</td> <td style="border-bottom: #000000 3px double;" align="center"> </td> <td style="border-bottom: #000000 3px double;" align="center">2011</td> <td style="border-bottom: #000000 3px double;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Non-Cash Investing and Financing Activities:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Continuing Operations:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 13.8pt;" align="left">Deemed capital contributions related to the</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 22.924pt;" align="left">utilization of Cablevision tax losses</td> <td style="text-indent: 0.72pt;" align="left">$</td> <td align="right">-</td> <td align="left">$</td> <td align="right">19,075</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 13.8pt;" align="left">Capital distribution for the transfer of a promissory note</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 22.924pt;" align="left">receivable to Cablevision (see Promissory Note discussion below)</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="right">(17,113</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 13.8pt;" align="left">Deemed capital contribution related to the allocation of</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 22.924pt;" align="left">Cablevision share-based compensation expense</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="right">3,931</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 13.8pt;" align="left">Increase in capital lease obligations and related assets</td> <td align="left"> </td> <td align="right">1,473</td> <td align="left"> </td> <td align="right">39</td> <td align="left"> </td></tr> <tr><td colspan="6"> </td></tr> <tr valign="bottom"><td align="left">Supplemental Data:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 13.8pt;" align="left">Cash interest paid — continuing operations</td> <td align="left"> </td> <td align="right">43,526</td> <td align="left"> </td> <td align="right">32,421</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 13.8pt;" align="left">Income taxes paid, net — continuing operations</td> <td align="left"> </td> <td align="right">1,911</td> <td align="left"> </td> <td align="right">4,171</td> <td align="left"> </td></tr></table></div>   Promissory Note   In September 2009, RMH and one of its subsidiaries that was transferred by the Company to Cablevision on December 31, 2010 agreed to the terms of a promissory note having an initial principal amount of $0 and increasing from time to time by advances made by RMH, with an interest rate of 8.625%. Interest income recognized by RMH related to this note amounted to $120 for the three months ended March 31, 2011. On January 31, 2011, RMH distributed to a subsidiary of Cablevision all of its rights, title and interest in and to the promissory note. This distribution, which amounted to $17,113, including principal and accrued and unpaid interest, is reflected as a non-cash capital distribution in the consolidated statement of stockholders' equity for the three months ended March 31, 2011.</div> </div>

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<div> Note 7. Commitments and Contingencies Commitments      As of March 31, 2012, the Company's off-balance sheet arrangements not reflected on the Company's consolidated balance sheet decreased approximately $21,800 to approximately $321,800 as compared to approximately $343,600 at December 31, 2011. The decrease relates primarily to future program rights obligations. Legal Matters DISH Network Contract Dispute      In 2005, subsidiaries of the Company entered into agreements with EchoStar Communications Corporation and its affiliates by which EchoStar Media Holdings Corporation acquired a 20% interest in VOOM HD and EchoStar Satellite LLC (the predecessor to DISH Network LLC ("DISH Network")) agreed to distribute VOOM on DISH Network for a 15-year term. The affiliation agreement with DISH Network for such distribution provides that if VOOM HD fails to spend $100,000 per year (subject to reduction to the extent that the number of offered channels is reduced to fewer than 21), up to a maximum of $500,000 in the aggregate, on VOOM, DISH Network may seek to terminate the agreement under certain circumstances. On January 30, 2008, DISH Network purported to terminate the affiliation agreement, effective February 1, 2008, based on its assertion that VOOM HD had failed to comply with this spending provision in 2006. On January 31, 2008, VOOM HD sought and obtained a temporary restraining order from the New York Supreme Court for New York County prohibiting DISH Network from terminating the affiliation agreement. In conjunction with its request for a temporary restraining order, VOOM HD also requested a preliminary injunction and filed a lawsuit against DISH Network asserting that DISH Network did not have the right to terminate the affiliation agreement. In a decision filed on May 5, 2008, the court denied VOOM HD's motion for a preliminary injunction. On or about May 13, 2008, DISH Network ceased distribution of VOOM on its DISH Network. On May 27, 2008, VOOM HD amended its complaint to seek damages for DISH Network's improper termination of the affiliation agreement. On June 24, 2008, DISH Network answered VOOM HD's amended complaint and asserted counterclaims alleging breach of contract and breach of the duty of good faith and fair dealing with respect to the affiliation agreement. On July 14, 2008, VOOM HD replied to DISH Network's counterclaims. The Company believes that the counterclaims asserted by DISH Network are without merit. VOOM HD and DISH Network each filed cross-motions for summary judgment. In November 2010, the court denied both parties' cross-motions for summary judgment but granted VOOM HD's motion for sanctions based on DISH Network's spoliation of evidence as well as its motion to exclude DISH Network's principal damages expert. DISH Network appealed these latter two rulings. On January 31, 2012, the Appellate Division of the New York Supreme Court issued a decision affirming (i) the trial court's finding of spoliation and imposition of the sanction of an adverse inference at trial; and (ii) the trial court's decision to exclude DISH Network's damages expert. On February 6, 2012, DISH Network filed a motion seeking leave from the Appellate Division to appeal the order. On April 26, 2012, the Apellate Division denied DISH Network's motion, thereby precluding any further appeal of the trial court rulings. The stay of the pending trial court proceedings was lifted on May 1, 2012. The Company expects the court to set a date for trial shortly.      In connection with the Distribution, CSC Holdings and AMC Networks and Rainbow Programming Holdings, LLC, an indirect wholly-owned subsidiary of AMC Networks (collectively, the "AMC Parties") entered into an agreement which provides that from and after the Distribution date, CSC Holdings retains full control over the pending litigation with DISH Network. Any decision with respect to settlement will be made jointly by CSC Holdings and the AMC Parties. CSC Holdings and the AMC Parties will share equally in the proceeds (including in the value of any non-cash consideration) of any settlement or final judgment in the pending litigation with DISH Network that are received by subsidiaries of the Company from VOOM HD. The AMC Parties are responsible for the legal fees and costs until such costs reach an agreed upon threshold, at which point CSC Holdings and the AMC Parties will bear such fees and expenses equally. Other Legal Matters      On April 15, 2011, Thomas C. Dolan, a director of the Company and Executive Vice President, Strategy and Development, in the Office of the Chairman and a director of Cablevision, filed a lawsuit against Cablevision and RMH in New York Supreme Court. The lawsuit raises compensation-related claims (seeking approximately $11,000) related to events in 2005. The matter is being handled under the direction of an independent committee of the board of directors of Cablevision. In connection with the Distribution Agreement, Cablevision indemnified the Company and RMH against any liabilities and expenses related to this lawsuit. Based on the indemnification and Cablevision's and the Company's assessment of this possible loss contingency, no provision has been made for this matter in the consolidated financial statements.      In addition to the matters discussed above, the Company is party to various lawsuits and claims in the ordinary course of business. Although the outcome of these other matters cannot be predicted with certainty and the impact of the final resolution of these other matters on the Company's results of operations in a particular subsequent reporting period is not known, 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. </div>

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<div> Note 10. Concentration of Risk Financial Instruments      Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. Cash is invested in money market funds and bank time deposits. The Company monitors the financial institutions and money market funds where it invests its cash and cash equivalents with diversification among counterparties to mitigate exposure to any single financial institution. The Company's emphasis is primarily on safety of principal and liquidity and secondarily on maximizing the yield on its investments. Customers Two customers accounted for the following percentages of the Company's revenues, net: <div> <table border="0" cellspacing="0"> <tr><td width="26%"> </td> <td width="37%"> </td> <td width="6%"> </td> <td width="23%"> </td> <td width="6%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">Three Months Ended March 31,</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2011</td></tr> <tr valign="bottom"><td align="left">Customer 1</td> <td align="right">9</td> <td align="left">%</td> <td align="right">11</td> <td align="left">%</td></tr> <tr valign="bottom"><td align="left">Customer 2</td> <td align="right">12</td> <td align="left">%</td> <td align="right">13</td> <td align="left">%</td></tr></table></div>        At March 31, 2012, no one customer accounted for 10% or more of the Company's net trade receivable balances. </div>

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202224000

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<div> Note 5. Debt Long-term debt consists of: <div> <table border="0" cellspacing="0"> <tr><td width="38%"> </td> <td width="6%"> </td> <td width="26%"> </td> <td width="8%"> </td> <td width="20%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">March 31, 2012</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">December 31, 2011</td></tr> <tr valign="bottom"><td align="left">Credit facility debt: (a)</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Term A Facility</td> <td align="right">$</td> <td align="right">975,426</td> <td align="left">$</td> <td align="right">1,025,065</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Term B Facility</td> <td align="right"> </td> <td align="right">578,671</td> <td align="left"> </td> <td align="right">579,781</td></tr> <tr valign="bottom"><td align="left">Senior Notes</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">686,671</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">686,434</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="right">2,240,768</td> <td align="left"> </td> <td align="right">2,291,280</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Less: current portion</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,950</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,950</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Total</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,234,818</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,285,330</td></tr></table></div>   (a) The $500,000 revolving credit facility remains undrawn at March 31, 2012. Total undrawn revolver commitments are available to be drawn for general corporate purposes of the Company. During the three months ended March 31, 2012, the Company voluntarily prepaid $50,000 under the Term A Facility. This voluntary prepayment was applied to the earliest required quarterly installments due, and was in addition to the regularly scheduled quarterly principal payment made under the Term B Facility. As a result of the voluntary prepayment, the next required quarterly installment under the Term A Facility will be due on June 30, 2014 in the amount of $19,500. The Company wrote-off $312 of deferred financing costs associated with the voluntary prepayment during the three months ended March 31, 2012. </div>

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<div> Note 6. Derivative Financial Instruments      To manage interest rate risk, the Company enters into interest rate swap contracts to adjust the amount of total debt that is subject to variable interest rates. Such contracts effectively fix the borrowing rates on floating rate debt to limit the exposure against the risk of rising interest rates. The Company does not enter into interest rate swap contracts for speculative or trading purposes and it has only entered into interest rate swap contracts with financial institutions that it believes are creditworthy counterparties. The Company monitors the financial institutions that are counterparties to its interest rate swap contracts and to the extent possible diversifies its swap contracts among various counterparties to mitigate exposure to any single financial institution.      The Company's interest rate swap contracts are designated as cash flow hedges for accounting and tax purposes. The Company assesses, both at the hedge's inception and on an ongoing basis, hedge effectiveness based on the overall changes in the fair value of the interest rate swap contracts. Hedge effectiveness of the interest rate swap contracts is based on a hypothetical derivative methodology. Any ineffective portion of the interest rate swap contracts is recorded in current-period earnings.      As of March 31, 2012, the Company had interest rate swap contracts outstanding with notional amounts aggregating $935,000, which includes interest rate swap contracts with notional amounts aggregating $200,000 that are effective beginning July 2012. The Company's outstanding interest rate swap contracts have varying maturities ranging from September 2015 to July 2017. At March 31, 2012, the Company's interest rate cash flow hedges were highly effective, in all material respects.      The Company's risk management objective and strategy with respect to interest rate swap contracts is to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows relating to interest payments on a portion of its outstanding debt. The Company is meeting its objective by hedging the risk of changes in its cash flows (interest payments) attributable to changes in the LIBOR index rate, the designated benchmark interest rate being hedged (the "hedged risk"), on an amount of the Company's debt principal equal to the then-outstanding swap notional. The forecasted interest payments are deemed to be probable of occurring.      The fair values of the Company's derivative financial instruments included in the consolidated balance sheets are as follows: <div> <table border="0" cellspacing="0"> <tr><td width="44%"> </td> <td width="26%"> </td> <td width="4%"> </td> <td width="9%"> </td> <td width="5%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="5" align="center">Liability Derivatives</td></tr> <tr><td colspan="6"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Balance Sheet Location</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">Fair Value</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">March 31, 2012</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">December 31, 2011</td></tr> <tr valign="bottom"><td align="left">Derivatives designatedas hedging instruments:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Interest rate swap contracts</td> <td align="center">Other liabilities</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">19,911</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">19,091</td></tr> <tr valign="bottom"><td align="left">Total derivatives</td> <td align="left"> </td> <td style="border-bottom: #000000 2px solid;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">19,911</td> <td style="border-bottom: #000000 2px solid;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">19,091</td></tr></table></div>        The amounts of the gains and losses related to the Company's derivative financial instruments designated as hedging instruments are as follows: <div> <table border="0" cellspacing="0"> <tr><td width="31%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td> <td width="7%"> </td> <td width="19%"> </td> <td width="3%"> </td> <td width="10%"> </td> <td width="3%"> </td> <td width="6%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">Amount of Loss Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)</td> <td style="border-bottom: #000000 1px solid;" align="center">Location of Loss Reclassified from Accumulated OCI into Earnings (Effective Portion)</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">Amount of Loss Reclassified from Accumulated OCI into Earnings (Effective Portion)(a )</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">Three Months Ended March 31,</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">Three Months Ended March 31,</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2011</td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2011</td></tr> <tr><td colspan="10"> </td></tr> <tr valign="bottom"><td align="left">Derivatives in Cash FlowHedging Relationships:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Interest rate swap contracts</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,934</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">-</td> <td align="center">Interest expense</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="right">2,114</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">-</td></tr></table></div>   (a) There were no gains or losses recognized in earnings related to any ineffective portion of the hedging relationship or related to any amount excluded fromthe assessment of hedge effectiveness for the three months ended March 31, 2012 and 2011. </div>

<div> Note 8. Equity and Long-Term Incentive Plans      In connection with the Distribution, the Company adopted the AMC Networks Inc. 2011 Employee Stock Plan (the "2011 Employee Stock Plan"), the AMC Networks Inc. 2011 Stock Plan for Non-Employee Directors (the "2011 Non-Employee Director Plan") and the AMC Networks Inc. 2011 Cash Incentive Plan (the "2011 Cash Incentive Plan").      In March 2012, AMC Networks granted 441,111 restricted share units to certain executive officers and employees under the 2011 Employee Stock Plan that vest on the third anniversary of the grant date. The vesting criteria for 97,915 of those restricted share units include the achievement of certain performance targets by the Company. Also in March 2012, AMC Networks granted three-year performance based awards to certain executive officers and employees under the 2011 Cash Incentive Plan.      Share-based compensation expense included in continuing operations, a component of selling, general and administrative expense, for the three months ended March 31, 2012 was $3,583, related to equity classified awards. For the three months ended March 31, 2011, share-based compensation expense allocated by Cablevision was $3,931, related to equity classified awards. For the three months ended March 31, 2012, there was no share-based compensation expense included in continuing operations for liability classified awards (stock appreciation rights). For the three months ended March 31, 2011, there was $46 of share-based compensation expense included in continuing operations for liability classified awards. For periods prior to the Distribution, the Company's share-based compensation includes amounts related to Company employees participating in the Cablevision equity awards programs, as well as amounts related to Cablevision corporate employees and non-employee directors to the extent allocated to the Company. For periods after the Distribution, the Company no longer receives an allocation of share-based compensation expense for Cablevision corporate employees and non-employee directors, including expense related to the Company's Executive Chairman with respect to his participation in the Cablevision equity awards program (since he remained an executive officer of Cablevision).      During the three months ended March 31, 2012, 1,030,832 shares of AMC Networks Class A common stock previously issued to employees of Cablevision, MSG and the Company vested. In connection with the employees' satisfaction of the statutory minimum tax withholding obligations for the applicable income and other employment taxes, 351,724 of these shares, with an aggregate value of $15,937, were surrendered to the Company. These acquired shares, as well as 36,968 forfeited unvested restricted shares, have been classified as treasury stock.      Long-term incentive plan compensation expense included in continuing operations for the three months ended March 31, 2012 was $3,025. For the three months ended March 31, 2011, long-term incentive plan compensation expense allocated by Cablevision was $3,318. Such amount is accrued for performance-based awards for which the performance criteria had not yet been met as the awards are based on achievement of certain performance criteria through December 31, 2014. The Company has accrued the pro-rata amount earned that it currently believes will ultimately be paid based upon the performance criteria established for these performance-based awards. If the Company subsequently determines that the performance criteria for the awards are not probable of being achieved, the Company would reverse the accrual in respect of the award at that time. </div>

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0.43

0.60

<div> Note 2. Net Income per Share      The consolidated statements of income present basic and diluted net income per share ("EPS"). Basic EPS is based upon net income divided by the weighted-average number of common shares outstanding during the period. Diluted EPS reflects the dilutive effects of AMC Networks stock options (including those held by directors and employees of related parties of the Company) and AMC Networks restricted shares/units (including those held by employees of related parties of the Company).      For the three months ended March 31, 2012, diluted EPS includes the dilutive effect of 899,000 stock options and 1,360,000 restricted shares/units. The number of shares used to compute basic and diluted EPS for the three months ended March 31, 2011 of approximately 69,161,000, represents the number of shares of AMC Networks common stock issued to Cablevision shareholders on the Distribution date, and excludes unvested outstanding restricted shares, based on a distribution ratio of one share of AMC Networks common stock for every four shares of Cablevision common stock outstanding. The dilutive effect of the Company's share-based awards that were issued in connection with the adjustment or conversion of Cablevision's share-based awards upon the Distribution (including Cablevision stock options and restricted share awards granted prior to the Distribution) and subsequent Company grants, are included in the computation of diluted EPS in periods subsequent to the Distribution.      For the three months ended March 31, 2012, approximately 231,000 restricted shares/units have been excluded from diluted weighted average common shares outstanding since the performance criteria on these awards has not yet been satisfied and approximately 172,000 restricted shares/units have been excluded from diluted weighted average common shares outstanding since they would have been anti-dilutive. </div>

57160000

41100000

<div> Note 9. 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.      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: <div> <table border="0" cellspacing="0"> <tr><td width="30%"> </td> <td width="3%"> </td> <td width="13%"> </td> <td width="4%"> </td> <td width="14%"> </td> <td width="4%"> </td> <td width="9%"> </td> <td width="9%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Level I</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Level II</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Level III</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Total</td></tr> <tr valign="bottom"><td align="left">At March 31, 2012:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Assets:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Cash equivalents (a)</td> <td align="left">$</td> <td align="right">198,396</td> <td align="left">$</td> <td align="right">-</td> <td align="left">$</td> <td align="left"> </td> <td align="left">- $</td> <td align="right">198,396</td></tr> <tr><td colspan="9"> </td></tr> <tr valign="bottom"><td align="left">Liabilities:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Interest rate swap contracts</td> <td align="left">$</td> <td align="right">-</td> <td align="left">$</td> <td align="right">19,911</td> <td align="left">$</td> <td align="left"> </td> <td align="left">- $</td> <td align="right">19,911</td></tr> <tr><td colspan="9"> </td></tr> <tr valign="bottom"><td align="left">At December 31, 2011:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Assets:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Cash equivalents (a)</td> <td align="left">$</td> <td align="right">202,276</td> <td align="left">$</td> <td align="right">-</td> <td align="left">$</td> <td align="left"> </td> <td align="left">- $</td> <td align="right">202,276</td></tr> <tr valign="bottom"><td align="left">Liabilities:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Interest rate swap contracts</td> <td align="left">$</td> <td align="right">-</td> <td align="left">$</td> <td align="right">19,091</td> <td align="left">$</td> <td align="left"> </td> <td align="left">- $</td> <td align="right">19,091</td></tr></table></div>   (a) Represents the Company's investment in money market funds.      The Company's cash equivalents are classified within Level I of the fair value hierarchy because they are valued using quoted market prices.      The Company's interest rate swap contracts (Note 6) are classified within Level II of the fair value hierarchy and their fair values are determined based on a market approach valuation technique that uses readily observable market parameters and the consideration of counterparty risk. Credit Facility Debt and Senior Notes      The fair values of each of the Company's debt instruments are based on quoted market prices for the same or similar issues or on the current rates offered to the Company for instruments of the same remaining maturities.      The carrying values and estimated fair values of the Company's financial instruments, excluding those that are carried at fair value in the consolidated balance sheets are summarized as follows: <div> <table border="0" cellspacing="0"> <tr><td width="38%"> </td> <td width="12%"> </td> <td width="21%"> </td> <td width="5%"> </td> <td width="23%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">March 31, 2012</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Carrying Amount</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Estimated Fair Value</td></tr> <tr valign="bottom"><td align="left">Debt instruments:</td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Credit facility debt</td> <td align="left">$</td> <td align="right">1,554,097</td> <td align="right">$</td> <td align="right">1,526,685</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Senior notes</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">686,671</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">780,500</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 2px solid;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">2,240,768</td> <td style="border-bottom: #000000 2px solid;" align="right">$</td> <td style="border-bottom: #000000 2px solid;" align="right">2,307,185</td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="38%"> </td> <td width="12%"> </td> <td width="21%"> </td> <td width="5%"> </td> <td width="23%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">December 31, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Carrying Amount</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Estimated Fair Value</td></tr> <tr valign="bottom"><td align="left">Debt instruments:</td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Credit facility debt</td> <td align="left">$</td> <td align="right">1,604,846</td> <td align="right">$</td> <td align="right">1,550,960</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Senior notes</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">686,434</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">761,250</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,291,280</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,312,210</td></tr></table></div>        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. </div>

83173000

<div> Note 3. Goodwill and Other Intangible Assets      The carrying amount of goodwill, by reporting unit and reportable segment, as of both March 31, 2012 and December 31, 2011 is as follows: Reporting Unit and Segment <div> <table border="0" cellspacing="0"> <tr><td width="81%"> </td> <td width="6%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">AMC</td> <td align="left">$</td> <td align="right">34,251</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">WE tv</td> <td align="left"> </td> <td align="right">5,214</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">IFC</td> <td align="left"> </td> <td align="right">13,582</td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">Sundance Channel</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">28,930</td></tr> <tr valign="bottom"><td align="left">Total National Networks</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">81,977</td></tr> <tr><td colspan="3"> </td></tr> <tr valign="bottom"><td style="text-indent: 2px;" align="left">AMC Networks Broadcasting & Technology</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,196</td></tr> <tr valign="bottom"><td align="left">Total International and Other</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,196</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">83,173</td></tr></table></div> The following tables summarize information relating to the Company's identifiable intangible assets: <div> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="6%"> </td> <td width="11%"> </td> <td width="5%"> </td> <td width="11%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="7" align="center">March 31, 2012</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Gross</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">Accumulated Amortization</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Net</td></tr> <tr valign="bottom"><td align="left">Amortizable intangible assets:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Affiliation agreements and affiliate relationships</td> <td align="left">$</td> <td align="right">911,357</td> <td style="text-indent: 2px;" align="left">$</td> <td align="right">(655,269</td> <td align="left">)</td> <td align="left">$</td> <td align="right">256,088</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Advertiser relationships</td> <td align="left"> </td> <td align="right">74,533</td> <td align="left"> </td> <td align="right">(64,848</td> <td align="left">)</td> <td align="left"> </td> <td align="right">9,685</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Other amortizable intangible assets</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">644</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(423</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">221</td></tr> <tr valign="bottom"><td align="left">Total amortizable intangible assets</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">986,534</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(720,540</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">265,994</td></tr> <tr valign="bottom"><td align="left">Indefinite-lived intangible assets:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Trademarks</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">19,900</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">-</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">19,900</td></tr> <tr valign="bottom"><td align="left">Total intangible assets</td> <td style="border-bottom: #000000 2px solid;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">1,006,434</td> <td style="border-bottom: #000000 2px solid; text-indent: 2px;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">(720,540</td> <td style="border-bottom: #000000 2px solid;" align="left">)</td> <td style="border-bottom: #000000 2px solid;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">285,894</td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="6%"> </td> <td width="10%"> </td> <td width="6%"> </td> <td width="11%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="7" align="center">December 31, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Gross</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">Accumulated Amortization</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Net</td></tr> <tr valign="bottom"><td align="left">Amortizable intangible assets:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Affiliation agreements and affiliate relationships</td> <td align="left">$</td> <td align="right">911,357</td> <td style="text-indent: 3px;" align="left">$</td> <td align="right">(637,394</td> <td align="left">)</td> <td align="left">$</td> <td align="right">273,963</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Advertiser relationships</td> <td align="left"> </td> <td align="right">103,723</td> <td align="left"> </td> <td align="right">(92,166</td> <td align="left">)</td> <td align="left"> </td> <td align="right">11,557</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Other amortizable intangible assets</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">644</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(391</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">253</td></tr> <tr valign="bottom"><td align="left">Total amortizable intangible assets</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,015,724</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(729,951</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">285,773</td></tr> <tr valign="bottom"><td align="left">Indefinite-lived intangible assets:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Trademarks</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">19,900</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">-</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">19,900</td></tr> <tr valign="bottom"><td align="left">Total intangible assets</td> <td style="border-bottom: #000000 2px solid;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">1,035,624</td> <td style="border-bottom: #000000 2px solid; text-indent: 3px;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">(729,951</td> <td style="border-bottom: #000000 2px solid;" align="left">)</td> <td style="border-bottom: #000000 2px solid;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">305,673</td></tr></table></div>        During the three months ended March 31, 2012, the Company retired $29,190 of fully amortized advertiser relationships.      Aggregate amortization expense for amortizable intangible assets for the three months ended March 31, 2012 and 2011 was $19,777 and $19,778, respectively. The Company expects its aggregate amortization expense for existing intangible assets subject to amortization to be as follows: <div> <table border="0" cellspacing="0"> <tr><td width="64%"> </td> <td width="17%"> </td> <td width="17%"> </td></tr> <tr valign="bottom"><td align="left">Years Ending December 31,</td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">2012</td> <td align="left">$</td> <td align="right">64,436</td></tr> <tr valign="bottom"><td align="left">2013</td> <td align="left"> </td> <td align="right">31,678</td></tr> <tr valign="bottom"><td align="left">2014</td> <td align="left"> </td> <td align="right">9,765</td></tr> <tr valign="bottom"><td align="left">2015</td> <td align="left"> </td> <td align="right">9,746</td></tr> <tr valign="bottom"><td align="left">2016</td> <td align="left"> </td> <td align="right">9,746</td></tr></table></div>   Impairment of Goodwill and Identifiable Indefinite-Lived Intangible Assets      In accordance with the accounting guidance adopted on January 1, 2012, the annual goodwill impairment test allows for the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. An entity may choose to perform the qualitative assessment on none, some or all of its reporting units or an entity may bypass the qualitative assessment for any reporting unit and proceed directly to step one of the quantitative impairment test. If it is determined, on the basis of qualitative factors, that the fair value of a reporting unit is, more likely than not, less than its carrying value, the quantitative impairment test is required. The quantitative impairment test is a two-step process. The first step compares the carrying amount of a reporting unit, including goodwill, with its fair value utilizing an enterprise-value based approach. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill <div>impairment test is performed to measure the amount of the goodwill impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill that would be recognized in a business combination.</div>      In assessing the recoverability of goodwill and other long-lived assets, the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. These estimates and assumptions could have a significant impact on whether an impairment charge is recognized and also the magnitude of any such charge. Fair value estimates are made at a specific point in time, based on relevant information. 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. Estimates of fair value are primarily determined using discounted cash flows and comparable market transactions. These valuations are based on estimates and assumptions including projected future cash flows, discount rate and determination of appropriate market comparables and determination of whether a premium or discount should be applied to comparables. These valuations also include assumptions for the projected number of subscribers and the projected average rates per basic and viewing subscribers and growth in fixed price contractual arrangements used to determine affiliation fee revenue, access to program rights and the cost of such program rights, amount of programming time that is advertiser supported, number of advertising spots available and the sell through rates for those spots, average fee per advertising spot and operating margins, among other assumptions. If these estimates or material related assumptions change in the future, we may be required to record impairment charges related to our long-lived assets.      The impairment test for identifiable indefinite-lived intangible assets consists of a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Significant judgments inherent in a valuation include the selection of appropriate discount and royalty rates, estimating the amount and timing of estimated future cash flows and identification of appropriate continuing growth rate assumptions. The discount rates used in the analysis are intended to reflect the risk inherent in the projected future cash flows generated by the respective intangible assets.      Based on the Company's annual impairment test for goodwill and identifiable indefinite-lived intangible assets during the first quarter of 2012, no impairment charge was required for any of the reporting units. The Company performed a qualitative assessment for the AMC, WE tv, IFC and AMC Networks Broadcasting and Technology reporting units, which included, but was not limited to, consideration of the historical significant excesses of the estimated fair value of each reporting unit over its respective carrying value (including allocated goodwill), macroeconomic conditions, industry and market considerations, cost factors and historical and projected cash flows. The Company performed a quantitative assessment for the Sundance Channel reporting unit. Based on the quantitative assessment, if the fair value of the Sundance Channel reporting unit decreased by 11%, the Company would be required to perform step-two of the quantitative assessment.      The Company's indefinite-lived trademark intangible assets relate to Sundance Channel trademarks, which were valued using a relief-from-royalty method in which the expected benefits are valued by discounting estimated royalty revenue over projected revenues covered by the trademarks. In order to evaluate the sensitivity of the fair value calculations for the Company's identifiable indefinite-lived intangible assets, the Company applied a hypothetical 20% decrease to the estimated fair value of the identifiable indefinite-lived intangible assets. This hypothetical decrease in estimated fair value would not result in an impairment. </div>

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<div> Note 4. Income Taxes      For the three months ended March 31, 2012, income tax expense attributable to continuing operations was $23,970, representing an effective tax rate of 36%. The effective tax rate differs from the federal statutory rate of 35% due primarily to state income tax expense of $1,354, tax expense of $764 related to uncertain tax positions, including accrued interest, partially offset by a tax benefit of $2,015 resulting from a decrease in the valuation allowance with regard to certain local income tax credit carry forwards.      For the three months ended March 31, 2011, income tax expense attributable to continuing operations was $23,136, representing an effective tax rate of 44%. The effective tax rate differs from the federal statutory rate of 35% due primarily to state income tax expense of $2,803, tax expense of $1,523 related to uncertain tax positions, including accrued interest and tax expense of $385 resulting from an increase in the valuation allowance with regard to certain local income tax credit carry forwards.      At March 31, 2012, the Company had federal net operating loss carry forwards ("NOLs") of approximately $96,000, expiring on various dates from 2023 through 2025, and foreign tax credit carry forwards of approximately $14,800, expiring on various dates from 2014 through 2022. The Company has recorded a deferred tax asset related to $74,000 of such NOLs. A deferred tax asset has not been recorded for the remaining NOL of $22,000 as this portion relates to excess tax benefits that have not yet been realized (as determined on a 'with-and-without' approach), including 'windfall' deductions on share-based compensation awards and amortization of certain tax deductible goodwill. Upon realization as a reduction in tax liability, such excess tax benefits will be recorded as an increase to paid-in capital with regard to share-based compensation awards and as a decrease in goodwill with regard to certain tax deductible goodwill.      Under the Company's Tax Disaffiliation Agreement with Cablevision, Cablevision is liable for all income taxes of the Company for periods prior to the Distribution except for New York City Unincorporated Business Tax. The City of New York is currently auditing the Company's Unincorporated Business Tax Returns for the years 2006 through 2008. </div>

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<div> Note 1. Description of Business and Basis of Presentation Description of Business      AMC Networks Inc. ("AMC Networks") and collectively with its subsidiaries (the "Company") own and operate entertainment businesses and assets. The Company is comprised of two reportable segments: <ul> <li>National Networks: Includes four nationally distributed programming networks: AMC, WE tv, IFC and Sundance Channel. These programming networks are distributed throughout the United States ("U.S.") via cable and other multichannel video programming distribution platforms, including direct broadcast satellite ("DBS") and platforms operated by telecommunications providers (we refer collectively to these cable and other multichannel video programming distributors as "multichannel video programming distributors" or "distributors"); and </li> <li>International and Other: Principally includes AMC/Sundance Channel Global, the Company's international programming business; IFC Films, the Company's independent film distribution business; and AMC Networks Broadcasting & Technology, the Company's network technical services business, which primarily services the programming networks of the Company. AMC and Sundance Channel are distributed in Canada and Sundance Channel and WE tv are distributed in other countries throughout Europe and Asia. The International and Other reportable segment also includes VOOM HD Holdings LLC ("VOOM HD"), which the Company is in the process of winding down, and which continues to sell certain limited amounts of programming internationally through program license agreements. </li></ul>      On June 30, 2011, Cablevision Systems Corporation (Cablevision Systems Corporation and its subsidiaries are referred to as "Cablevision") spun-off the Company (the "Distribution"). In connection with the Distribution, Cablevision contributed all of the membership interests of Rainbow Media Holdings LLC ("RMH") to AMC Networks. RMH owned, directly or indirectly, the businesses included in Cablevision's Rainbow segment. On June 30, 2011, Cablevision effected the Distribution of all of AMC Networks' outstanding common stock to its shareholders. Immediately prior to the Distribution, the Company was an indirect wholly-owned subsidiary of Cablevision. The Company became an independent public company on June 30, 2011, the date of the Distribution. Both Cablevision and the Company continue to be controlled by Charles F. Dolan, certain members of his immediate family and certain family related entities (collectively the "Dolan Family"). Basis of Presentation      These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and Article 10 of Regulation S-X of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, these unaudited consolidated financial statements do not include all the information and notes required for complete annual financial statements.      These unaudited consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2011 contained in the Company's 2011 Annual Report on Form 10-K ("2011 Form 10-K") filed with the SEC.      The Company's consolidated financial statements for periods prior to the Distribution have been derived from the consolidated financial statements and accounting records of Cablevision and reflect certain assumptions and allocations. The results of operations and cash flows of the Company for those periods could differ from those that might have resulted had the Company been operated autonomously or as an entity independent of Cablevision. The Company's consolidated financial statements after the Distribution reflect certain revenues and expenses related to transactions with or charges from Cablevision and The Madison Square Garden Company and its subsidiaries ("MSG") as described in Note 11.      The consolidated financial statements as of March 31, 2012 and for the three months ended March 31, 2012 and 2011 are unaudited; however, in the opinion of management, such consolidated financial statements include all adjustments, consisting solely of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented. All intercompany transactions and balances have been eliminated in consolidation.      The results of operations for the 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, 2012.      The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Discontinued Operations      Discontinued operations consists of receipts related to the sale of the Lifeskool and Sportskool video-on-demand services in September and October 2008, respectively, which were recorded under the installment sales method. Recently Adopted Accounting Pronouncements      In September 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment (ASU 2011-08), to allow entities to use a qualitative approach to test goodwill for impairment. ASU 2011-08 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, it is necessary to perform the prescribed two-step goodwill impairment test. Otherwise, the two-step goodwill impairment test is not required. The Company adopted ASU 2011-08 effective January 1, 2012 and applied it to the Company's February 28, 2012 annual impairment test (see Note 3).      In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income (ASU 2011-05). The provisions of ASU 2011-05 provide that an entity that reports items of other comprehensive income has the option to present comprehensive income as (i) a single statement that presents the components of net income and total net income, the components of other comprehensive income and total other comprehensive income and a total for comprehensive income or (ii) in a two-statement approach, whereby an entity must present the components of net income and total net income in the first statement and that statement is immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income and a total for comprehensive income. The previous option under GAAP that permitted the presentation of other comprehensive income in the statement of stockholders' equity has been eliminated. In December 2011, the FASB issued ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassification of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 (ASU 2011-12). ASU 2011-12 defers the requirement in ASU 2011-05 to present reclassification adjustments for each component of accumulated other comprehensive income ("AOCI") in both other comprehensive income and net income on the face of the financial statements, and the presentation of reclassification adjustments is not required in interim periods. The Company adopted ASU 2011-05 and ASU 2011-12 effective January 1, 2012 and has presented comprehensive income using the two-statement approach.      In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in GAAP and IFRSs (ASU 2011-04). ASU 2011-04 provides amendments to Topic 820 that changes the wording used to describe many of the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The Company adopted ASU 2011-04 effective January 1, 2012. The adoption of this authoritative guidance did not have any impact on the Company's consolidated financial statements. </div>

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13132000

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12000

15937000

40000

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<div> Note 11. Related Party Transactions      The Company provides services to and receives services from Cablevision and MSG. Until the Distribution date, the consolidated financial statements of the Company reflect the application of certain cost allocation policies of Cablevision. Management believes that these allocations were made on a reasonable basis. However, it is not practicable to determine whether the charged amounts represent amounts that might have been incurred on a stand-alone basis, including as a separate independent publicly owned company, as there are no company-specific or comparable industry benchmarks with which to make such estimates. Further, as many of these transactions are conducted between subsidiaries under common control of the Dolan Family, amounts charged for these services may not represent amounts that might have been received or incurred if the transactions were based upon arm's length negotiations.      The following is a summary of the revenues and expenses included in the Company's consolidated statements of income related to transactions with or charges from Cablevision: <div> <table border="0" cellspacing="0"> <tr><td width="62%"> </td> <td width="5%"> </td> <td width="14%"> </td> <td width="5%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">Three Months Ended March 31,</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2011</td></tr> <tr><td colspan="5"> </td></tr> <tr valign="bottom"><td align="left">Revenues, net</td> <td style="border-bottom: #000000 2px solid; text-indent: 1px;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">5,856</td> <td style="border-bottom: #000000 2px solid;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">5,700</td></tr> <tr><td colspan="5"> </td></tr> <tr valign="bottom"><td align="left">Operating expenses:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Technical and operating expenses:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Other support functions</td> <td style="text-indent: 2px;" align="left">$</td> <td align="right">-</td> <td align="left">$</td> <td align="right">118</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Health and welfare plans</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">-</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,087</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Total technical and operating expenses</td> <td style="border-bottom: #000000 2px solid; text-indent: 2px;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">-</td> <td style="border-bottom: #000000 2px solid;" align="left">$</td> <td style="border-bottom: #000000 2px solid;" align="right">1,205</td></tr> <tr valign="bottom"><td align="left">Selling, general and administrative expenses:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Corporate general and administrative costs, net</td> <td style="text-indent: 1px;" align="left">$</td> <td align="right">858</td> <td align="left">$</td> <td align="right">8,001</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Management fees</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="right">6,740</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Health and welfare plans</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="right">1,040</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Advertising expense</td> <td align="left"> </td> <td align="right">1,263</td> <td align="left"> </td> <td align="right">325</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Other support functions</td> <td align="left"> </td> <td align="right">391</td> <td align="left"> </td> <td align="right">72</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Sales support and other functions, net</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="right">1,302</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Cablevision allocations of share-based</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 5px;" align="left">compensation expense</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="right">3,977</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Cablevision allocations of long-term incentive plans</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 5px;" align="left">expense</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">-</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,318</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Total selling, general and administrative expenses</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,512</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">24,775</td></tr></table></div>        The following is a summary of the revenues and expenses included in the Company's consolidated statements of income related to transactions with or charges from MSG: <div> <table border="0" cellspacing="0"> <tr><td width="54%"> </td> <td width="13%"> </td> <td width="8%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="10%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="6" align="center">Three Months Ended March 31,</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 4px;" colspan="3" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">2011</td></tr> <tr><td colspan="7"> </td></tr> <tr valign="bottom"><td align="left">Revenues, net</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,217</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,240</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr> <tr><td colspan="7"> </td></tr> <tr valign="bottom"><td align="left">Operating expenses:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Selling, general and administrative expenses:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Corporate general and administrative and other credits</td> <td align="left">$</td> <td align="right">(516</td> <td align="left">)</td> <td align="left">$</td> <td align="right">(456</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Sales support and other functions</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">-</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(28</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">Total selling, general and administrative credits</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(516</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(484</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table></div>   Operating Expenses Share-based Compensation and Long-Term Incentive Plans Expense      Cablevision charged the Company through the Distribution date its proportionate share of expenses or benefits related to Cablevision's employee stock plans and Cablevision's long-term incentive plans. Such amounts are included in selling, general and administrative expenses in the consolidated statement of income for the three months ended March 31, 2011. The 2009 Cablevision three-year long-term incentive plan performance awards to certain executive officers and other members of the Company were paid in cash in March 2012. Transition Services Agreement      In connection with the Distribution, Cablevision and AMC Networks entered into a Transition Services Agreement under which, in exchange for the fees specified in such agreement, Cablevision agreed to provide transition services with regard to such areas as accounting, information systems, risk management and employee services, compensation and benefits. Under the Transition Services Agreement, AMC Networks also provides certain services to Cablevision and to MSG on behalf of Cablevision. The Company incurred net fees of $843 under the Transition Services Agreement for the three months ended March 31, 2012, which were recorded as a charge to selling, general and administrative expenses. </div>

62500000

51488000

1093000

290000

-34000

-3000

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272903000

326239000

<div> Note 13. Segment Information      As discussed in Note 1, the Company classifies its operations into two reportable segments: National Networks, and International and Other. These reportable segments are strategic business units that are managed separately.      The Company generally allocates all corporate overhead costs to the Company's two reportable segments based upon their proportionate estimated usage of services, including such costs as executive salaries and benefits, costs of maintaining corporate headquarters, facilities and common support functions (such as human resources, legal, finance, tax, accounting, audit, treasury, risk management, strategic planning and information technology) as well as sales support functions and creative and production services.      The Company evaluates segment performance based on several factors, of which the primary financial measure is business segment adjusted operating cash flow (defined as operating income (loss) before depreciation and amortization, share-based compensation expense or benefit and restructuring expense or credit), a non-GAAP measure. The Company has presented the components that reconcile adjusted operating cash flow to operating income, an accepted GAAP measure. Information as to the continuing operations of the Company's reportable segments is set forth below. <div> <table border="0" cellspacing="0"> <tr><td width="31%"> </td> <td width="3%"> </td> <td width="10%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="9%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="10%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="7%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="12" align="center">Three Months Ended March 31, 2012</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">National Networks</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">International andOther</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">Inter-segment eliminations</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">Consolidated</td></tr> <tr><td colspan="13"> </td></tr> <tr valign="bottom"><td align="left">Revenues, net</td> <td align="left">$</td> <td align="right">304,223</td> <td align="left"> </td> <td style="text-indent: 2px;" align="left">$</td> <td align="right">26,346</td> <td align="left"> </td> <td align="left">$</td> <td align="right">(4,330</td> <td align="left">)</td> <td align="left">$</td> <td align="right">326,239</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Adjusted operating cash flow (deficit)</td> <td align="left"> </td> <td align="right">133,372</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(8,207</td> <td align="left">)</td> <td align="left"> </td> <td align="right">505</td> <td align="left"> </td> <td align="left"> </td> <td align="right">125,670</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Depreciation and amortization</td> <td align="left"> </td> <td align="right">(21,305</td> <td align="left">)</td> <td align="left"> </td> <td align="right">(3,746</td> <td align="left">)</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(25,051</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Share-based compensation expense</td> <td align="left"> </td> <td align="right">(2,849</td> <td align="left">)</td> <td align="left"> </td> <td align="right">(734</td> <td align="left">)</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(3,583</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Restructuring credit</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="left"> </td> <td align="right">3</td> <td align="left"> </td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="left"> </td> <td align="right">3</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Operating income (loss)</td> <td align="left"> </td> <td align="right">109,218</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(12,684</td> <td align="left">)</td> <td align="left"> </td> <td align="right">505</td> <td align="left"> </td> <td align="left"> </td> <td align="right">97,039</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Capital Expenditures</td> <td align="left"> </td> <td align="right">443</td> <td align="left"> </td> <td align="left"> </td> <td align="right">2,395</td> <td align="left"> </td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="left"> </td> <td align="right">2,838</td> <td align="left"> </td></tr></table></div>   <div> <table border="0" cellspacing="0"> <tr><td width="31%"> </td> <td width="3%"> </td> <td width="10%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="9%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="10%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="7%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="12" align="center">Three Months Ended March 31, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">National Networks</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">International andOther</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">Inter-segment eliminations</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">Consolidated</td></tr> <tr><td colspan="13"> </td></tr> <tr valign="bottom"><td align="left">Revenues, net</td> <td align="left">$</td> <td align="right">251,845</td> <td align="left"> </td> <td style="text-indent: 2px;" align="left">$</td> <td align="right">25,381</td> <td align="left"> </td> <td align="left">$</td> <td align="right">(4,323</td> <td align="left">)</td> <td align="left">$</td> <td align="right">272,903</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Adjusted operating cash flow (deficit)</td> <td align="left"> </td> <td align="right">106,356</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(7,104</td> <td align="left">)</td> <td align="left"> </td> <td align="right">296</td> <td align="left"> </td> <td align="left"> </td> <td align="right">99,548</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Depreciation and amortization</td> <td align="left"> </td> <td align="right">(21,311</td> <td align="left">)</td> <td align="left"> </td> <td align="right">(3,615</td> <td align="left">)</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(24,926</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Share-based compensation expense</td> <td align="left"> </td> <td align="right">(3,150</td> <td align="left">)</td> <td align="left"> </td> <td align="right">(827</td> <td align="left">)</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(3,977</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Restructuring credit</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="left"> </td> <td align="right">34</td> <td align="left"> </td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="left"> </td> <td align="right">34</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Operating income (loss)</td> <td align="left"> </td> <td align="right">81,895</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(11,512</td> <td align="left">)</td> <td align="left"> </td> <td align="right">296</td> <td align="left"> </td> <td align="left"> </td> <td align="right">70,679</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Capital Expenditures</td> <td align="left"> </td> <td align="right">724</td> <td align="left"> </td> <td align="left"> </td> <td align="right">875</td> <td align="left"> </td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td> <td align="left"> </td> <td align="right">1,599</td> <td align="left"> </td></tr></table></div>        Inter-segment eliminations are primarily revenues recognized by the International and Other segment for transmission revenues recognized by AMC Networks Broadcasting & Technology and the licensing of its program rights by the national programming networks. <div> <table border="0" cellspacing="0"> <tr><td width="41%"> </td> <td width="17%"> </td> <td width="15%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="12%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="6" align="center">Three Months Ended March 31,</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">2011</td></tr> <tr valign="bottom"><td align="left">Inter-segment revenues</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">National Networks</td> <td align="left">$</td> <td align="right">(303</td> <td align="left">)</td> <td align="left">$</td> <td align="right">(70</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">International and Other</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4,027</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4,253</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(4,330</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(4,323</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table></div>   A reconciliation of reportable segment amounts to the Company's consolidated balances is as follows: <div> <table border="0" cellspacing="0"> <tr><td width="53%"> </td> <td width="5%"> </td> <td width="15%"> </td> <td width="4%"> </td> <td width="5%"> </td> <td width="12%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="6" align="center">Three Months Ended March 31,</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">2012</td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">2011</td></tr> <tr><td colspan="7"> </td></tr> <tr valign="bottom"><td align="left">Operating income from continuing operations before income taxes</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Total operating income for reportable segments</td> <td align="left">$</td> <td align="right">97,039</td> <td align="left"> </td> <td align="left">$</td> <td align="right">70,679</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Items excluded from operating income:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Interest expense</td> <td align="left"> </td> <td align="right">(29,797</td> <td align="left">)</td> <td align="left"> </td> <td align="right">(18,350</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Interest income</td> <td align="left"> </td> <td align="right">105</td> <td align="left"> </td> <td align="left"> </td> <td align="right">457</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Write-off of deferred financing costs</td> <td align="left"> </td> <td align="right">(312</td> <td align="left">)</td> <td align="left"> </td> <td align="right">-</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 1px;" align="left">Miscellaneous, net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">12</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">72</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Income from continuing operations before income taxes</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">67,047</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">52,858</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div> Substantially all revenues and assets of the Company are attributed to or located in the U.S. </div>

86921000

99222000

686434000

686671000

3931000

3583000

-1036995000

-12027000

5942000

586000

135000

-1029954000

-1677000

-1004857000

-12544000

11351000

588000

135000

-986773000

-17614000

1828000

1826000

2000

194060

582752

1677000

17614000

69161000

72130000

69161000

69871000

312000