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Programming Rights
12 Months Ended
Dec. 31, 2015
Programming Rights  
Programming Rights

3. Programming Rights

Programming rights are comprised of the following:

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

2014

 

2015

 

 

 

(In thousands)

 

Programming rights — non-affiliates

 

 

 

 

 

 

 

Acquired programming

 

 

 

 

 

 

 

Licensed for less than 12 years

 

$

298,731

 

$

292,990

 

Original programming

 

 

 

 

 

 

 

Licensed for less than 12 years

 

 

200,760

 

 

250,189

 

Licensed for 12 years or longer

 

 

62,585

 

 

118,717

 

Owned

 

 

43,271

 

 

83,140

 

Programming rights— Hallmark Cards affiliates

 

 

 

 

 

 

 

Licensed for less than 12 years

 

 

25,694

 

 

28,334

 

Programming rights, at cost

 

 

631,041

 

 

773,370

 

Accumulated amortization

 

 

(325,046)

 

 

(398,582)

 

Programming rights available for broadcast

 

 

305,995

 

 

374,788

 

Owned programming in development

 

 

1,619

 

 

5,228

 

Programming rights, net

 

$

307,614

 

$

380,016

 

 

Programming costs included in the accompanying consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2013, 2014 and 2015, were $134.0 million, $148.6 million and $176.2 million, respectively.

In the regular course of evaluating the remaining usefulness of its various program rights, the Company may determine that certain rights may be of little future program value. In such instances, the Company shortens the estimated remaining life of the asset to zero, thereby accelerating amortization of the remaining net book value. During the years ended December 31, 2013, 2014 and 2015, such changes in estimates resulted in additional amortization of programming rights of $4.5 million, $7,000 and $15.0 million, respectively. This expense is included as a component of non‑affiliate programming costs in the accompanying consolidated statement of operations and comprehensive income (loss). The Company expects to amortize $4.0 million to $5.0 million of the $25.0 million net book value at December 31, 2015 of owned programming during the year ended December 31, 2016.

At December 31, 2014 and 2015, $39.8 million and $24.0 million, respectively, of programming rights were included in prepaid programming rights in the accompanying consolidated balance sheets. The various license periods associated with such amounts had not commenced as of the respective balance sheet dates.

Programming rights payable are comprised of the following:

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

2014

 

2015

 

 

 

(In thousands)

 

Programming rights payable — non-affiliates

 

 

 

 

 

 

 

Acquired programming

 

$

88,856

 

$

94,201

 

Original programming

 

 

9,923

 

 

14,719

 

Programming rights payable — Hallmark Cards affiliates

 

 

13,623

 

 

13,643

 

Total programming rights payable

 

 

112,402

 

 

122,563

 

Less current maturities

 

 

(66,726)

 

 

(73,654)

 

Long-term programming rights payable

 

$

45,676

 

$

48,909