Redeemable Non-controlling Interests and Non-controlling Interest

12 Months Ended

Dec. 31, 2015

Noncontrolling Interest [Abstract]

Redeemable Non-controlling Interests and Non-controlling Interest

16. REDEEMABLE NON-CONTROLLING INTERESTS AND NON-CONTROLLING INTEREST

Redeemable Non-controlling Interests

A non-controlling owner holds a 35.0 percent interest in the Travel Channel. The owner of the non-controlling interest has a put option requiring us to repurchase their interest, and we have a call option to acquire their interest. The owner of the non-controlling interest will receive negotiated value for their interest at the time either option is exercised. The put option on the non-controlling interest in the Travel Channel became exercisable on August 18, 2014, and our call option became exercisable on December 15, 2015. On January 6, 2016, the Company notified the owner of the non-controlling interest of its intention to exercise the call option, resulting in 100.0 percent ownership of Travel Channel (see Note 24 – Subsequent Events).

A non-controlling owner holds a 30.0 percent interest in Food Network Latin America (“FNLA”). The owner of the non-controlling interest has a put option requiring us to repurchase their interest, and we have a call option to acquire their interest. The owner of the non-controlling interest will receive fair market value for their interest at the time either option is exercised. The put option on the non-controlling interest in FNLA becomes exercisable in 2017, and our call option becomes exercisable in 2024, or upon the occurrence of other contractual call events as outlined in the agreement.

Non-controlling Interest

The Food Network and Cooking Channel are operated and organized under the terms of the Partnership. The Company and a non-controlling owner hold interests in the Partnership. During the fourth quarter of 2014, the Partnership was extended and specifies a dissolution date of December 31, 2016. If the term of the Partnership is not extended prior to that date, the Partnership agreement permits the Company, as holder of 80.0 percent of the applicable votes, to reconstitute the Partnership and continue its business. If for some reason the Partnership is not continued, it will be required to limit its activities to winding up, settling debts, liquidating assets and distributing proceeds to the partners in proportion to their partnership interests.

See Note 4 – Acquisitions for further discussion regarding the non-controlling interest arising from the Transactions.