Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2015 | Jan. 25, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | RealD Inc. | |
Entity Central Index Key | 1,327,471 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 51,261,148 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 81,471 | $ 60,333 |
Accounts receivable, net | 48,902 | 26,748 |
Inventories, net | 8,199 | 8,305 |
Deferred costs – eyewear | 316 | 80 |
Prepaid expenses and other current assets | 4,465 | 4,770 |
Total current assets | 143,353 | 100,236 |
Property and equipment, net | 16,363 | 20,599 |
Cinema systems, net | 69,629 | 82,243 |
Goodwill | 10,657 | 10,657 |
Other intangibles, net | 3,839 | 4,817 |
Deferred income taxes | 1,662 | 2,461 |
Other assets | 8,452 | 8,631 |
Total assets | 253,955 | 229,644 |
Current liabilities: | ||
Accounts payable | 13,717 | 9,652 |
Accrued expenses and other liabilities | 29,183 | 26,640 |
Deferred revenue | 6,662 | 5,009 |
Income taxes payable | 1,090 | 1,619 |
Deferred income taxes | 1,784 | 2,583 |
Current portion of Credit Agreement | 10,635 | 7,460 |
Total current liabilities | 63,071 | 52,963 |
Credit Agreement, net of current portion | 24,723 | 22,380 |
Deferred revenue, net of current portion | 11,025 | 3,931 |
Other long-term liabilities | 3,373 | 4,027 |
Total liabilities | $ 102,192 | $ 83,301 |
Commitments and contingencies | ||
Equity (deficit) | ||
Common stock, $0.0001 par value, 200,000 shares authorized; 51,207 and 50,434 shares issued and outstanding at December 31, 2015 and March 31, 2015, respectively | $ 383,923 | $ 371,689 |
Accumulated deficit | (233,450) | (226,803) |
Accumulated other comprehensive income | 1,793 | 1,960 |
Total RealD Inc. stockholders’ equity | 152,266 | 146,846 |
Noncontrolling interest | (503) | (503) |
Total equity | 151,763 | 146,343 |
Total liabilities and equity | $ 253,955 | $ 229,644 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Mar. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, share issued | 51,207,000 | 50,434,000 |
Common stock, shares outstanding | 51,207,000 | 50,434,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | ||||
License | $ 29,743 | $ 20,958 | $ 92,031 | $ 88,961 |
Product and other | 20,630 | 11,613 | 50,363 | 46,597 |
Total revenue | 50,373 | 32,571 | 142,394 | 135,558 |
Cost of revenue: | ||||
License | 10,656 | 11,487 | 30,917 | 33,612 |
Product and other | 12,754 | 6,121 | 35,649 | 31,410 |
Total cost of revenue | 23,410 | 17,608 | 66,566 | 65,022 |
Gross profit | 26,963 | 14,963 | 75,828 | 70,536 |
Operating expenses: | ||||
Research and development | 4,107 | 4,582 | 10,578 | 14,692 |
Selling and marketing | 4,503 | 4,382 | 14,605 | 15,493 |
General and administrative | 17,059 | 12,654 | 45,414 | 35,804 |
Total operating expenses | 25,669 | 21,618 | 70,597 | 65,989 |
Operating income (loss) | 1,294 | (6,655) | 5,231 | 4,547 |
Interest expense, net | (425) | (393) | (1,195) | (1,278) |
Other loss, net | (659) | (3,088) | (2,240) | (4,264) |
Income (loss) before income taxes | 210 | (10,136) | 1,796 | (995) |
Income tax expense | 4,492 | 1,154 | 6,670 | 5,117 |
Net loss | (4,282) | (11,290) | (4,874) | (6,112) |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net loss attributable to RealD Inc. common stockholders | $ (4,282) | $ (11,290) | $ (4,874) | $ (6,112) |
Loss per common share: | ||||
Basic (in dollars per share) | $ (0.08) | $ (0.23) | $ (0.10) | $ (0.12) |
Diluted (in dollars per share) | $ (0.08) | $ (0.23) | $ (0.10) | $ (0.12) |
Shares used in computing loss per common share: | ||||
Basic (in shares) | 51,474 | 49,771 | 51,183 | 49,935 |
Diluted (shares) | 51,474 | 49,771 | 51,183 | 49,935 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Income (Loss) Available to Common Stockholders, Basic | $ (4,282) | $ (11,290) | $ (4,874) | $ (6,112) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gains (loss) | 56 | 1,339 | (167) | 1,810 |
Other comprehensive income (loss), net of tax | 56 | 1,339 | (167) | 1,810 |
Comprehensive loss | $ (4,226) | $ (9,951) | $ (5,041) | $ (4,302) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | ||
Net income | $ (4,874) | $ (6,112) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 27,721 | 29,925 |
Deferred income tax | 0 | 1 |
Non-cash interest expense | 276 | 203 |
Non-cash stock compensation | 10,427 | 11,515 |
Impairment of long-lived assets and related purchase commitments | (122) | 646 |
Loss on disposal of property and equipment | 0 | 154 |
Impairment of long-lived assets and related purchase commitments | 2,213 | 2,736 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (22,032) | 13,916 |
Inventories | 106 | 2,269 |
Prepaid expenses and other current assets | (818) | 117 |
Deferred costs - eyewear | (236) | (42) |
Other assets | (97) | (3,286) |
Accounts payable | 4,065 | (7,137) |
Accrued expenses and other liabilities | 2,540 | 2,347 |
Other long-term liabilities | (654) | (783) |
Income taxes receivable/payable | 594 | (1,152) |
Deferred revenue | 8,747 | (5,224) |
Net cash provided by operating activities | 27,856 | 40,093 |
Cash flows from investing activities | ||
Purchases of property and equipment | (871) | (4,032) |
Purchases of cinema systems and related components | (10,102) | (12,626) |
Proceeds from sale of property and equipment | 0 | 79 |
Net cash used in investing activities | (10,973) | (16,579) |
Cash flows from financing activities | ||
Proceeds from Credit Agreement | 12,700 | 37,300 |
Repayments on Credit Agreement | (7,182) | (41,845) |
Payments of debt issuance costs | 0 | (895) |
Proceeds from exercise of stock options | 1,245 | 2,782 |
Proceeds from employee stock purchase plan | 562 | 291 |
Repurchase of statutory withholdings of stock issued for restricted stock units | (1,773) | (990) |
Net cash provided by (used in) financing activities | 5,552 | (3,357) |
Effect of currency exchange rate changes on cash and cash equivalents | (1,297) | 2,793 |
Net increase in cash and cash equivalents | 21,138 | 22,950 |
Cash and cash equivalents, beginning of period | 60,333 | 28,800 |
Cash and cash equivalents, end of period | $ 81,471 | $ 51,750 |
Business and basis of presentat
Business and basis of presentation | 9 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and basis of presentation | Business and basis of presentation RealD Inc. is a leading global licensor of 3D and other visual technologies. Except where specifically noted or the context otherwise requires, the use of terms such as the "Company" or "RealD" in this Quarterly Report on Form 10-Q for the quarter ended December 31, 2015 refers to RealD Inc. and its subsidiaries. The accompanying unaudited condensed consolidated financial statements as of December 31, 2015 and for the three months and nine months ended December 31, 2015 have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or the SEC, regarding interim financial reporting and include all adjustments (consisting of only normal recurring adjustments, unless otherwise indicated), necessary for a fair presentation of the Company’s condensed consolidated financial statements. Accordingly, certain information and footnote disclosures normally included in comprehensive financial statements have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet as of March 31, 2015 was derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP. Interim results are not necessarily indicative of results for any subsequent quarter, the full fiscal year or any future periods. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended March 31, 2015 . The condensed consolidated financial statements include the accounts of RealD, its wholly owned subsidiaries and its majority owned subsidiaries. RealD does not have any interests in variable interest entities. For consolidated subsidiaries that are not wholly owned but are majority owned, the subsidiaries’ assets, liabilities, and operating results are included in their entirety in the accompanying condensed consolidated financial statements. The noncontrolling interests in those assets, liabilities, and operations are reflected as non-controlling interest in the condensed consolidated balance sheets under equity and condensed consolidated statements of operations. All significant intercompany balances and transactions have been eliminated in consolidation. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and applicable disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. The most significant estimates made by management in the preparation of the financial statements relate to the following: • licensing revenue terms applied to the timing and number of motion picture exhibitor consumer admissions; • domestic eyewear product revenue terms applied to when the usage occurs and the amount of usage; • deferred costs of domestic eyewear product shipments; • effects of allowances that are capitalized on the balance sheet and amortized to the applicable line item on the statement of operations as expense or contra revenue and earned customer incentives when customers do not timely report the activity that result in earned allowances and incentives; • customer contract terms and their effects on revenue and balance sheet items; • fair market values of multiple deliverable components relating to sales of product, services and intellectual property; • impairment testing of goodwill, intangible assets and tangible assets, including determination of relevant reporting units and long-lived asset groups; • useful lives of intangible assets and tangible assets; • timing and amount recognized for performance-based compensation, including bonus, executive salary and executive restricted stock units, based on projections of the Company's performance achievement; • the impact of potential future tax consequences of events that have been recognized in the Company’s financial statements; • valuation of accruals and allowances; • contingency assessments; and • assumptions used in the determination of the fair value of equity-based awards for stock-based compensation. Earnings (loss) per share of common stock Basic earnings (loss) per share of common stock is computed by dividing the net income (loss) attributable to RealD's common stockholders for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock is computed by dividing income attributable to the Company’s common stockholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares that may be purchased under the Company’s employee stock purchase plan and unvested restricted stock units. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share of common stock by application of the treasury stock method. The calculation of the basic and diluted loss per share of common stock for the three and nine months ended December 31, 2015 and December 31, 2014 was as follows: Three months ended Nine months ended (in thousands, except per share data) 2015 2014 2015 2014 Numerator: Net loss $ (4,282 ) $ (11,290 ) $ (4,874 ) $ (6,112 ) Net income attributable to noncontrolling interest — — — — Net loss attributable to RealD Inc. common stockholders $ (4,282 ) $ (11,290 ) $ (4,874 ) $ (6,112 ) Denominator: Weighted-average common shares outstanding (basic) 51,474 49,771 51,183 49,935 Effect of dilutive securities — — — — Weighted-average common shares outstanding (diluted) 51,474 49,771 51,183 49,935 Loss per common share: Basic $ (0.08 ) $ (0.23 ) $ (0.10 ) $ (0.12 ) Diluted $ (0.08 ) $ (0.23 ) $ (0.10 ) $ (0.12 ) The weighted-average number of anti-dilutive shares excluded from the calculation of diluted earnings (loss) per share of common stock for the three and nine months ended December 31, 2015 and December 31, 2014 was as follows: Three months ended Nine months ended (in thousands) 2015 2014 2015 2014 Options, employee stock purchase plan, restricted stock units and performance stock units 8,833 10,944 8,912 9,678 Accounts receivable, net Accounts receivable, net, consists of trade receivables, value-added tax, or VAT, receivables, other receivables and allowance for doubtful accounts and customer credits. The Company provides credit to its customers, who are primarily in the movie production and exhibition businesses. The Company provides for the estimated accounts receivable that will not be collected. These estimates are based on an analysis of historical bad debts, customer concentrations, customer creditworthiness, current economic trends and changes in the customers’ payment terms and their economic condition. Collection of accounts receivable may be affected by changes in economic or other industry conditions and may, accordingly, impact the Company’s overall credit risk. Estimated accounts receivable that will not be collected is expensed as bad debt expense as part of the Company's general and administrative costs. Credits to the Company's customers are netted against their corresponding revenues. The allowance for doubtful accounts and customer credits totaled $5.3 million and $5.9 million as of December 31, 2015 and March 31, 2015 , respectively. Inventories and deferred costs-eyewear Inventories and deferred costs-eyewear mostly include RealD eyewear and are substantially all finished goods. Inventories and deferred costs-eyewear are valued at the lower of cost (first-in, first-out method) or market value. At each balance sheet date, the Company evaluates ending inventories and deferred costs-eyewear for lower cost and market value. The Company also evaluates inventories for excess quantities and obsolescence. These evaluations include analyses of expected future average selling prices, projections of future demand and technology changes. In order to state inventories at the lower of cost or market, RealD maintains reserves against such inventories. If the Company’s analyses indicate that market is lower than cost, a write-down of inventories is recorded in cost of revenue in the period the loss is identified. As of December 31, 2015 , the inventory reserve as a result of the Company's realizable value analyses was insignificant. As of March 31, 2015 , the inventory reserve as a result of the Company’s net realizable value analyses was $0.1 million . Domestically, the Company provides RealD eyewear free of charge to motion picture exhibitors and then receives a fee from the motion picture studios for the usage of RealD eyewear by the motion picture exhibitors’ consumers. Eyewear shipped from inventory is deferred on the shipment date and then amortized to cost of product revenue according to assumptions related to eyewear usage by consumers. Internationally, the motion picture exhibitors prepay the Company for RealD eyewear ordered. Inventory shipped is recognized to cost of product revenue according to transfer of title. Globally, the Company may provide limited amount of RealD eyewear to motion picture studios for marketing purposes. Inventory shipped for marketing purposes is recognized to sales and marketing expense. Impairment of long-lived assets The Company reviews long-lived assets, such as property and equipment, cinema systems, digital projectors and intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Factors or circumstances that could indicate the occurrence of such events include current period operating or cash flow losses combined with a history of operating or cash flow losses, a projection or forecast that demonstrates continuing operating or cash flow losses, or incurring costs in excess of amounts originally expected to acquire or construct an asset. If the long-term asset group carrying value is not recoverable by its estimated future cash flows (its fair value), an impairment loss is recognized as the amount by which the carrying amount of the asset exceeds its fair value. For the three months ended December 31, 2015 and December 31, 2014 , impairment charges for all impaired cinema systems equipped with RealD 3D technology, or RealD Cinema Systems, charged to cost of revenue totaled $0.3 million and $1.3 million , respectively. For the nine months ended December 31, 2015 and December 31, 2014 , impairment charges for all impaired RealD Cinema Systems charged to cost of revenue totaled $1.1 million and $2.7 million , respectively. During the fiscal quarter ended December 31, 2015 , the Company terminated a portion of its operation space in Boulder, Colorado, which resulted in impairment charges for all associated leasehold improvements. Charges to cost of revenue totaled $1.1 million for both the three months and nine months ended December 31, 2015 . There were no such charges for both the three months and nine months ended December 31, 2014. Revenue recognition The Company derives substantially all of its revenue from the license of RealD Cinema Systems and the product sale or use of RealD eyewear. RealD evaluates revenue recognition for transactions using the criteria set forth by the Financial Accounting Standard Board, or FASB, Accounting Standards Codification, or ASC, Topic 840, Leases , and ASC Topic 605, Revenue Recognition . The revenue recognition guidance states that revenue is recognized when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable and collectability is reasonably assured. The Company records revenue net of estimated allowances. The Company assesses revenue arrangements to determine whether multiple deliverables of its products, services and technology exist. For deliverables in multiple-element arrangements, the guidance below is applied for separability and allocation. A multiple-deliverable arrangement is separated into more than one unit of accounting if the following criteria are met: • The delivered item(s) has value to the client on a stand-alone basis; and • If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the company. If these criteria are not met, the arrangement is accounted for as one unit of accounting which would result in revenue being recognized ratably over the contract term or being deferred until the earlier of when such criteria are met or when the last undelivered element is delivered. If these criteria are met for each deliverable and there is a relative selling price for all units of accounting in an arrangement, the arrangement consideration is allocated to the separate units of accounting based on each unit’s relative selling price. The following revenue policies are then applied to each unit of accounting, as applicable. License revenue from RealD Cinema Systems License revenue, net of lease incentives and other allowances, from RealD Cinema Systems, is accounted for as an operating lease. License revenue from RealD Cinema Systems is primarily derived under per-admission, percentage of box office, periodic fixed fee, or per-motion picture basis with motion picture exhibitors. Amounts received up front, less estimated lease incentives, are deferred and recognized over the lease term using the straight-line method. Additional lease payments that are contingent upon future events outside the Company’s control, including those related to admission and usage, are recognized as revenues when the contingency is resolved and the Company has no more obligations to its customers specific to the contingent payment received. Certain of the Company’s license revenue from leasing RealD Cinema Systems is earned upon admission by the motion picture exhibitor’s consumers. The Company’s licensees, however, do not report and pay for such license revenue until after the admission has occurred, which may be received subsequent to the Company’s fiscal period end. The Company estimates and records domestic licensing revenue related to motion picture exhibitor consumer admissions in the quarter in which the admission occurs, but only when reasonable estimates of such amounts can be made. The Company records its international licensing revenue based on actual amounts reported by motion picture exhibitors. The Company determines that there is persuasive evidence of an arrangement upon the execution of a license agreement or upon the receipt of a licensee’s admissions report. Revenue is deemed fixed or determinable upon receipt of a licensee’s admissions report or evidence of a RealD box office showing by the licensee. The Company determines collectability based on an evaluation of the licensee’s recent payment history and evaluation of the respective customer’s credit-standing. In December 2015, the Company received corrected reporting from one of its customers indicating an over-reporting to the Company of admissions between calendar years 2009 and 2015, which suggested an over recognition of license revenue of $1.3 million in total across the related periods. The Company reduced its current fiscal period license revenue by $1.3 million while it continues to finalize this matter with its customer. If the customer had not over-reported admissions to the Company during that timeframe, the Company does not believe that the historical financial statement results (adjusted on a pro-forma basis) would be materially different from those reported in its previously filed interim or annual Financial Reports. Product and other revenue The Company recognizes product revenue, net of allowances, when title and risk of loss have passed and when there is persuasive evidence of an arrangement, the payment is fixed or determinable, and collectability of payment is reasonably assured. In the United States and Canada, certain of the Company’s product revenue from the usage of RealD eyewear is earned upon admission and usage by the motion picture exhibitor’s consumers. The Company’s customers, however, do not report admission or usage information until after the admission and usage has occurred, and such information may be received subsequent to the Company’s fiscal period end. Accordingly, the Company estimates and records such product revenue in the quarter in which the admission and usage occurs, but only when reasonable estimates of such amounts can be made. Internationally, the motion picture exhibitors prepays for the RealD eyewear, which is deferred upon receipt of cash and earned upon shipping and transfer of title of the products. There are no estimates made in relation to international sales. The Company recognizes other revenue, including service revenue, when the consideration is earned and realized or realizable. Ongoing service revenue is recognized on a straight-line basis over the longer of the contractual term or the expected period during which the specified services will be rendered. Comprehensive income (loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). The only component of other comprehensive income or loss is unrealized foreign currency translation gains (losses). There were no reclassifications out of accumulated other comprehensive income during the three and nine months ended December 31, 2015 and December 31, 2014 . Cost of revenue Cost of license revenue Major components of cost of license revenue include depreciation for RealD Cinema systems, impairment for RealD Cinema systems, salaries and benefits and shipping and handling costs in relation to transportation of RealD Cinema systems. Cost of product and other revenue Major components of cost of product and other revenue include cost for RealD eyewear, shipping and handling costs in relation to transportation of RealD eyewear, recycling costs for RealD eyewear and salaries and benefits. Shipping and handling costs Amounts billed to customers for shipping and handling costs are included in both cost of license revenue and cost of product and other revenue. RealD’s shipping and handling costs consists primarily of packaging and transportation charges and are recorded in cost of revenue. Shipping and handling costs recognized in cost of revenue were $1.9 million and $1.0 million for the three months ended December 31, 2015 and December 31, 2014 , respectively. Shipping and handling costs recognized in cost of revenue were $6.9 million and $5.2 million for the nine months ended December 31, 2015 and December 31, 2014 , respectively. Research and development Research and development, or R&D, costs are expensed as incurred. Major components of R&D expense include salaries and benefits, depreciation for R&D assets, materials and supplies inclusive of prototypes, non-recurring engineering, payments to third parties for R&D, facilities and equipment that can only be used for a particular project and overhead allocations of various administrative and facilities costs related to R&D. Selling and marketing Selling and marketing, or S&M, costs are expensed as incurred. Major components of S&M expense include salaries and benefits, various marketing and promotional events related expenses and overhead allocations of various administrative and facilities costs related to S&M. General and administrative costs General and administrative costs principally consist of personnel costs related to our executive, legal, finance and human resources staff, professional fees including legal, financial advisory and accounting costs, occupancy costs, public company costs and bad debt expenses. Additionally, general and administrative costs include sales, use, goods and services tax, VAT and similar taxes, collectively, referred to as the Transaction Taxes, as well as property taxes. For the Company's U.S. and some of its international cinema license and product revenue, the Company absorbs the majority of the Transaction Taxes. The Transaction Taxes recognized in general and administrative costs were $1.3 million and $0.9 million for the three months ended December 31, 2015 and December 31, 2014 , respectively. The Transaction Taxes recognized in general and administrative costs were $4.3 million and $3.1 million for the nine months ended December 31, 2015 and December 31, 2014 , respectively. Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) 2014-09, " Revenue from Contracts with Customers (Topic 606) ". The new Topic 606 does not apply to lease contracts within the scope of Topic 840 " Leases ". • The primary objective of ASU 2014-09 is to provide guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605 " Revenue Recognition" and most industry-specific guidance. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Revenue recognition is anticipated to entail more judgment and more estimating than under the current guidance. • ASU 2014-09 will be implemented retrospectively with the Company choosing to either restate prior periods or recognize the cumulative effect. The Company is evaluating the impact of the new guidance on the Company’s financial statements and has not yet selected a transition approach to implement this standard. • ASU 2014-09 was originally effective for the Company starting April 1, 2017 with early adoption not permitted. In August 2015, FASB issued ASU 2015-14, " Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date ". ASU 2015-14 defers the effective date by one year but allows early adoption at the original effective date. The Company has decided to adopt 2014-09 on the new effective date of April 1, 2018 (the first quarter of fiscal year 2019). In February 2015, FASB issued ASU 2015-02, " Consolidation (Topic 810): Amendments to the Consolidation Analysis ". The objective of 2015-02 is to modify the consolidation requirements of Topic 810 to ensure that reporting entities do not consolidate other legal entities in situations where deconsolidation actually more accurately represents operational and economic results. Among other changes, the amendments to ASC 810 include lessening the relevance on fees paid to a decision-maker or service provider and the related party tiebreaker test. The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years beginning after December 15, 2015. This ASU may be adopted using a full retrospective approach or a modified retrospective approach by recording a cumulative effect adjustment to equity as of the beginning of the fiscal year of adoption. ASU 2015-02 will be effective for the Company beginning in fiscal 2017. The guidance is not expected to have a material impact on the consolidated financial statements. In April 2015, FASB issued ASU 2015-03, " Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ", which changes the presentation of debt issuance costs in financial statements. Under the ASU 2015-03, such costs are presented in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and early adoption is allowed for all entities for financial statements that have not been previously issued. The guidance is to be applied retrospectively to all prior periods (i.e., the balance sheet for each period is adjusted). ASU 2015-03 will be effective for the Company beginning in fiscal 2017. The Company elected not to early adopt. The guidance is not expected to have a material impact on the consolidated financial statements. In July 2015, FASB issued ASU 2015-11, " Simplifying the Measurement of Inventory ", which amended U.S. GAAP guidance issued to simplify the measurement of inventory for all entities. The amendments apply to all inventory that is measured using first-in, first-out or average cost. The guidance requires an entity to measure inventory at the lower of cost and net realizable value. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted as of the beginning of an interim or annual reporting period. ASU 2015-11 will be effective for the Company beginning in fiscal 2018. The Company elected not to early adopt ASU 2015-11. The guidance is not expected to have a material impact on the consolidated financial statements. In August 2015, FASB issued ASU 2015-15, " Interest - Imputation of Interest ", which amended U.S. GAAP guidance issued for the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. The amendments clarified the SEC staff's approval to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This pronouncement was effective starting on August 5, 2015. The Company has adopted the guidance and there is no material impact on its consolidated financial statements. In September 2015, FASB issued ASU 2015-16, " Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments ", which eliminates the requirement that an acquirer in a business combination account for a measurement-period adjustment retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which the amount of the adjustment is determined. In addition, the portion of the amount recorded in current- period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date should be presented separately on the face of the income statement or disclosed in the notes. The guidance is effective April 1, 2016 with early adoption permitted. The Company has early adopted the guidance and there is no material impact on the consolidated financial statements. In November 2015, FASB issued ASU 2015-17, " Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes ", which eliminates the current requirement for an entity to separate deferred income tax liabilities and assets into current and non-current amounts in a classified balance sheet. Instead, the ASU requires deferred tax liabilities, deferred tax assets and valuation allowances be classified as non-current in a classified balance sheet. ASU 2015-17 will be effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted. Additionally, this guidance may be applied either prospectively or retrospectively to all periods presented. The Company elected not to early adopt ASU 2015-17 and is evaluating the effect of the adoption of this ASU to its consolidated financial statements. In January 2016, FASB issued ASU 2016-01, " Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) ", which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). This guidance also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, ASU 2016-01 eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company elected not to early adopt ASU 2015-11. The guidance is not expected to have a material impact on the consolidated financial statements. |
Cinema Systems and Property & E
Cinema Systems and Property & Equipment | 9 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Cinema Systems and Property & Equipment | Cinema Systems and Property & Equipment Tangible fixed assets consist of the following: (in thousands) December 31, March 31, RealD Cinema Systems $ 213,937 $ 208,056 Leasehold improvements 15,575 16,974 Machinery and equipment 5,948 5,791 Furniture and fixtures 1,253 1,238 Computer equipment and software 10,957 10,581 Construction in process 341 565 Total $ 248,011 $ 243,205 Less accumulated depreciation (162,019 ) (140,363 ) Cinema Systems and Property & Equipment, net $ 85,992 $ 102,842 Depreciation expense amounted to $8.6 million and $9.6 million for the three months ended December 31, 2015 and December 31, 2014 , respectively. Depreciation expense amounted to $26.7 million and $29.0 million for the nine months ended December 31, 2015 and December 31, 2014 , respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangibles, net | Goodwill and other intangibles, net Goodwill and other intangibles, net, consist of the following at: December 31, 2015 March 31, 2015 (in thousands) Gross amount Accumulated amortization Gross amount Accumulated amortization Acquired developed technologies $ 9,324 $ 5,485 $ 9,324 $ 4,507 Goodwill 10,657 — 10,657 — Total $ 19,981 $ 5,485 $ 19,981 $ 4,507 Amortization expense amounted to $0.3 million for both the three months ended December 31, 2015 and December 31, 2014 . Amortization expense amounted to $1.0 million for both the nine months ended December 31, 2015 and December 31, 2014 . At December 31, 2015 , the remaining amortization expense is estimated to be as follows (in thousands): Remainder of fiscal year 2016 $ 325 Fiscal year 2017 1,300 Fiscal year 2018 1,287 Fiscal year 2019 306 Fiscal year 2020 129 Thereafter 492 Total $ 3,839 Intangibles are deemed to have finite lives and consist of acquired developed technologies (which are primarily patents) and are amortized over their estimated useful lives of 5 to 19 years (with a weighted average remaining amortization period of 3.9 years) using the straight-line method. |
Fair value measurement
Fair value measurement | 9 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | Fair value measurement The Company's derivative instruments are recorded at fair value in other current assets and other current liabilities in the condensed consolidated balance sheets. The Company's policy is to offset fair values on the balance sheet if a foreign currency master netting arrangement exists. Gains or losses related to the foreign currency forward contracts are reported as a component of other income or loss on the Company's condensed consolidated statements of operations. For all periods presented, none of the Company's derivative instruments were designated as hedging instruments. The Company does not use foreign currency option or foreign exchange forward contracts for speculative or trading purposes. To estimate the fair value of the derivative instruments, the Company uses valuation approaches within a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is divided into three levels based on the source of inputs as follows: • Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access; • Level 2 - Valuations for which all significant inputs are observable, either directly or indirectly, other than level 1 inputs; • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used for measuring fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level of input used that is significant to the overall fair value measurement. The Company purchases foreign currency forward contracts, generally with maturities of twelve months or less, to reduce the volatility of cash flows primarily related to forcasted payments and expenses denominated in certain foreign currencies. As of December 31, 2015 , RealD had outstanding forward contracts based on the Euro with notional amounts totaling $2.4 million . The fair value measurement of the derivative instruments was as follows: (in thousands) Fair value measurement as of December 31, 2015: Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs Significant unobservable inputs Total Assets: Derivatives: Foreign currency forward contracts $ — $ 11 $ — $ 11 Total assets $ — $ 11 $ — $ 11 Liabilities: Derivatives: Foreign currency forward contracts $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — As of March 31, 2015 , the carrying amount of the Company's foreign currency forward contracts was $0.4 million . For the three and nine months ended December 31, 2015 , the net realized and unrealized loss related to the foreign currency forward contracts was $8 thousand and $0.4 million , respectively and classified as other loss. For the three and nine months ended December 31, 2014 , the net realized and unrealized gain related to the foreign currency forward contracts was $0.2 million and $0.3 million and classified as other income. The Company monitors its positions with, and the credit quality of, the financial institutions that are counterparties to its financial instruments and does not currently anticipate nonperformance by the counterparties. |
Cost Reduction Plans
Cost Reduction Plans | 9 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Cost Reduction Plans | Cost Reduction Plans Over the past several quarters, the Company announced plans to reduce the overall costs of its global operations, collectively referred to as the Cost Reduction Plans, The Cost Reduction Plans were primarily a response to the anticipated impact on the Company’s financial results and operations caused by changes in the 3D box office performance of certain motion pictures due to perceived changes in consumer preference and the fact that the Company’s 3D cinema business is maturing in many markets like the United States in which the Company expected equipment installations to continue to slow. As part of the Cost Reduction Plans, the Company reduced its staff, rescoped and made changes to certain R&D projects, reduced certain non-personnel related general and administrative expenses and streamlined certain manufacturing operations. The Company further focused the expansion of its global cinema platform on emerging growth markets and higher performing motion picture exhibitors. The Company accounts for the Cost Reduction Plans in accordance with the Accounting Standards Codification (ASC), including ASC 420 , " Exit or Disposal Cost Obligations " , ASC 712 , " Compensation-Nonretirement Postemployment Benefits " , ASC 840, " Leases " and ASC 360 , Property, Plant and Equipment (Impairment or Disposal of Long-Lived Assets) ". As a result of the Cost Reduction Plans, including workforce reduction and the commencement of the relocation of manufacturing, the Company incurred termination and other charges totaling approximately $6.1 million through March 31, 2015 . Charges of $0.8 million have been incurred in the nine months ended December 31, 2015 . Both the charges incurred during the three and nine months ended December 31, 2015 included a lease termination charge of $1.2 million and partially offset by decreases in overall rent expenses of $0.6 million both relating to us terminating a portion of the operation facility in Boulder, Colorado. Therefore, the total charges resulting from the Cost Reduction Plans were $6.9 million through December 31, 2015 . The following table summarizes the charges resulting from the implementation of the Cost Reduction Plans during the three and nine months ended December 31, 2015 and December 31, 2014 : Three months ended 2015 2014 (in thousands) Personnel Leasehold Total Personnel Leasehold Total Cost of revenue $ — $ — $ — $ 1 $ 132 $ 133 Research and development 20 — 20 115 — 115 Selling and marketing 2 — 2 59 — 59 General and administrative — 595 595 2 — 2 Total $ 22 $ 595 $ 617 $ 177 $ 132 $ 309 Nine months ended 2015 2014 (in thousands) Personnel Leasehold Total Personnel Leasehold Total Cost of revenue $ 3 $ 7 $ 10 $ 25 $ 505 $ 530 Research and development 39 — 39 115 — 115 Selling and marketing 137 22 159 75 — 75 General and administrative — 595 595 192 — 192 Total $ 179 $ 624 $ 803 $ 407 $ 505 $ 912 The following table summarizes the activity resulting from the implementation of the Cost Reduction Plans within accrued expenses and other liabilities: Payments excluding non-cash impairment (in thousands) Personnel Leasehold Total Cost reduction plan liabilities as of March 31, 2015 $ 1,249 $ 265 $ 1,514 Charges 179 624 803 (Payments) (735 ) (775 ) (1,510 ) Cost reduction plan liabilities as of December 31, 2015 $ 693 $ 114 $ 807 There is no guarantee that any net cost reduction will actually be achieved as a result of the Cost Reduction Plans. Additionally, the Company leases facility space for its headquarters in Beverly Hills, California and its operation and R&D facility in Boulder, Colorado that includes approximately $4.8 million and $4.7 million , respectively, in leasehold improvements and other items classified as fixed assets (see Note 3 "Cinema Systems and Property & Equipment"). If the Company were to vacate any of this facility space, these fixed assets could become subject to an impairment assessment and contract termination costs or sublease loss could be incurred. During the fiscal quarter ended December 31, 2015, the Company terminated a portion of its operation space in Boulder, Colorado, which resulted in impairment charges for all associated leasehold improvements. Charges to cost of revenue totaled $1.1 million for both the three and nine months ended December 31, 2015. |
Borrowings
Borrowings | 9 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings 2014 Credit Agreement On June 26, 2014, RealD entered into the Amended and Restated Credit Agreement, or the 2014 Credit Agreement, by and among the Company, as borrower, City National Bank, or City National, as administrative agent and letter of credit issuer, the other agents from time to time party thereto and the lenders from time to time party thereto, or the Lenders. The 2014 Credit Agreement amended and restated in its entirety that certain Credit Agreement, dated as of April 19, 2012, by and among the Company, City National and the agents and lenders from time to time party thereto, which had been most recently amended on October 16, 2013, or the 2012 Credit Agreement. Pursuant to the 2014 Credit Agreement, the Lenders thereunder will make available to RealD: • a revolving credit facility (including a letter of credit sub-facility) in a maximum amount not to exceed $50 million , or the Revolving Facility, which matures on June 26, 2017. In addition, RealD may request up to an additional $25 million of commitments under the Revolving Facility (such that the maximum amount of all commitments under the Revolving Facility may not exceed $75 million ), subject to the satisfaction of certain financial and other conditions and subject to obtaining such commitments; and • a delayed draw term loan facility in a maximum amount not to exceed $50 million , or the Term Loan Facility, which matures on June 26, 2018. During the first quarter of fiscal year 2015 and fiscal year 2016, the Company borrowed $37.3 million and the remaining $12.7 million , respectively, under the Term Loan Facility. Debt issuance costs related to the completion of the 2014 Credit Agreement totaled $0.9 million and were added to the $0.3 million deferred charge remaining on the 2012 Credit Agreement. All these issuance costs are being amortized over the contractual life of the Revolving Facility and recorded as interest expense. The obligations under the 2014 Credit Agreement are fully and unconditionally guaranteed by the Company's subsidiaries, ColorLink Inc., a Delaware corporation, or ColorLink, Stereographics Corporation, a California corporation, or Stereographics, and RealD DDMG Acquisition, LLC, a Delaware limited liability company, or RealD DDMG, and together with the Company, ColorLink and Stereographics, collectively referred to as the Loan Parties. The obligations under the 2014 Credit Agreement are secured by a first priority security interest in substantially all of the Loan Parties' tangible and intangible assets. As of December 31, 2015 , $50 million was available under the Revolving Facility and none was available under the Term Loan Facility after taking into account our borrowings under the Term Loan Facility during the first quarter of fiscal year 2015 and 2016 in the amount of $37.3 million and $12.7 million , respectively. As a result, as of December 31, 2015 , the Company had $50 million of availability under the 2014 Credit Agreement. As of December 31, 2015 , there was no balance outstanding under the Revolving Facility. The outstanding balance of $35.4 million at December 31, 2015 under the Term Loan Facility is to be repaid in 9 quarterly installments of $2.7 million through March 31, 2018 and the remaining $11.4 million principal on June 26, 2018. The current and non-current portions of the 2014 Credit Agreement due as of December 31, 2015 and March 31, 2015 were as follows: December 31, March 31, (in thousands) Current portion of Credit Agreement $ 10,635 $ 7,460 Credit Agreement, net of current portion 24,723 22,380 Total Credit Agreement $ 35,358 $ 29,840 At December 31, 2015 , the Company's future minimum 2014 Credit Agreement obligations were as follows: Fiscal year 2016 $ 2,659 Fiscal year 2017 10,635 Fiscal year 2018 10,635 Fiscal year 2019 11,429 Total $ 35,358 Under the 2014 Credit Agreement, RealD's business is subject to certain limitations, including limitations on the Company's ability to incur additional debt, make certain investments or acquisitions, enter into certain merger and consolidation transactions, or sell its assets other than in the ordinary course of business. The Company is also required to maintain compliance with certain financial covenants, including a minimum fixed charge coverage ratio and a maximum leverage ratio. As of December 31, 2015 , RealD was in compliance with all financial covenants in the 2014 Credit Agreement. If the Company fails to comply with any of the covenants or if any other event of default should occur, the Lenders could elect to prevent the Company from borrowing and declare the indebtedness to be immediately due and payable. The 2014 Credit Agreement contains customary events of default applicable to the Company and/or its subsidiaries, including, among other things the occurrence of any change of control. If one or more events of default occurs and continues beyond any applicable cure period, City National may, with the consent of the Lenders holding a majority of the loans and commitments under the facilities, or will, at the request of such Lenders, terminate the commitments of the Lenders to make further loans and declare all of the obligations of the Loan Parties under the 2014 Credit Agreement to be immediately due and payable. Loans outstanding under the 2014 Credit Agreement bear interest at the Company's option at either the euro currency rate plus a margin ranging from 2.25% to 2.75% per year or the base rate (the highest of (i) the federal funds rate plus 0.50% , (ii) City National's prime rate or (iii) the euro currency rate for a one month interest period on such day plus 1.00% ) plus a margin ranging from 1.25% to 1.75% per year. The applicable margin for loans varies depending on the Company's leverage ratio. Under the 2014 Credit Agreement, the Company is charged a commitment fee on the unused portions of the Revolving Facility and Term Loan Facility. The fee for the unused Revolving Facility varies between 0.250% and 0.375% per year depending on the percentage of the Revolving Facility in use. The fee for the unused Term Loan Facility was 0.375% of the unused commitment. Additionally, the Company is charged a letter of credit fee between 2.25% to 2.75% , depending on the Company's leverage ratio, per year, with respect to the amount of each performance letter of credit issued under the 2014 Credit Agreement. The Company also pays customary fronting fees and other fees and expenses in connection with the issuance of letters of credit under the 2014 Credit Agreement. There were no letters of credit outstanding at December 31, 2015 or March 31, 2015 . As of December 31, 2015 , there were $35.4 million in borrowings outstanding under the 2014 Credit Agreement which bore 2.75% weighted average interest. As of March 31, 2015 , there were $29.8 million in borrowings outstanding under the 2014 Credit Agreement, which bore 2.44% weighted average interest. Interest expense related to the Company's borrowings was $0.4 million for both the three months ended December 31, 2015 and the three months ended December 31, 2014 . Interest expense related to the Company's borrowings was $1.2 million and $1.3 million for the nine months ended December 31, 2015 and the nine months ended December 31, 2014 , respectively. If the Merger is completed, the Company will use part of the proceeds contemplated by the Merger Agreement to repay the outstanding principal balance and any accrued and unpaid interest under the 2014 Credit Agreement upon the closing of the Merger, to comply with requirements of certain Purchaser debt financing commitments obtained for the transactions contemplated by the Merger Agreement. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Indemnities and commitments During the ordinary course of business, the Company makes certain indemnities and commitments under which it may be required to make payments in relation to certain transactions. These indemnities include indemnities of certain customers and licensees of our technologies, and indemnities to the Company’s directors and officers to the maximum extent permitted under the laws of the State of Delaware. The duration of these indemnities and commitments varies, and in certain cases, is indefinite. The majority of these indemnities and commitments do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities and commitments in the accompanying condensed consolidated balance sheets. The Company does, however, accrue for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is reasonably probable and estimable. The Company has entered into contracts with certain of its vendors. Future obligations under such contracts totaled $15.7 million at December 31, 2015 and include revolving 90 -day supply commitments. Many of the contracts contain cancellation penalty provisions requiring payment of up to 20% of the unused contract. Contingencies and assessments The Company is subject to various contingencies and assessments arising in the course of its business, some of which relate to litigation, claims, professional services, customer credits and rebates, system upgrades and maintenances, property taxes, sales and use taxes and tax assessments for goods and services. The Company considers the likelihood of the loss or the incurrence of a liability, as well as the Company’s ability to reasonably estimate the amount of loss in determining loss contingencies and assessments. An estimated loss contingency or assessment is accrued when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information available to us to determine whether such accruals are necessary or the amounts accrued should be adjusted. Based on the information presently available, including discussion with counsel and other consultants, management believes that resolution of these matters will not have a material adverse effect on the Company’s business, consolidated results of operations, financial condition or cash flows. On November 8, 2015, the Company entered into an Agreement and Plan of Merger, or the Merger Agreement, with Rhombus Cinema Holdings, LLC, a Delaware limited liability company, or Purchaser, and Rhombus Merger Sub, Inc., or Merger Sub. Pursuant to the Merger Agreement, and upon the terms and conditions set forth therein, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation. As a result, the Company will become a wholly owned subsidiary of Purchaser. Purchaser and Merger Sub are affiliates of Rizvi Traverse Management, LLC. This transaction is referred to herein as the Merger. On November 8, 2015, the Company incurred a $1.5 million expense for advisory services. As of December 31, 2015, we incurred a total $5.8 million expense for legal, advisory and other professional services in connection with the Merger. Upon the close of the Merger (see Note 1 "Business and Basis of Presentation"), which is expected in the fourth quarter of the Company's fiscal year ending on March 31, 2016, or shortly thereafter, the Company will incur a transaction fee to its financial adviser equivalent to 1.25% of the total consideration received or to be received for the sale, issuance or exchange of the Company's securities. If the transaction is terminated under certain circumstances, the Company may be required to pay a termination fee of $24 million to Purchaser and Merger Sub and reimburse the expenses of Purchaser and Merger Sub up to an amount of $6 million . If Purchaser terminates the transaction under certain circumstances, Purchaser may be required to pay a termination fee to the Company and the Company would be required to pay 20% of such termination fee to its financial adviser. |
Share-based compensation
Share-based compensation | 9 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | Share-based compensation The Company accounts for share-based payment awards granted to employees and directors by recording compensation expense based on estimated fair values. The Company estimates the fair value of share-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company's consolidated statements of operations. Share-based awards are attributed to expense using the straight-line method over the vesting period. The Company determines the value of each option award that contains a market condition using a Monte Carlo Simulation valuation model, while all other option awards are valued using the Black-Scholes valuation model as permitted under ASC 718 , Compensation — Stock Compensation . The assumptions used in calculating the fair value of share-based payment awards represent the Company's best estimates. The Company's estimates of the fair values of stock options granted and the resulting amounts of share-based compensation recognized may be impacted by certain variables including stock price volatility, employee stock option exercise behaviors, additional stock option modifications, estimates of forfeitures, and the related income tax impact. Share-based compensation expense for all share-based arrangements for the three and nine months ended December 31, 2015 and December 31, 2014 was as follows: Three months ended Nine months ended (in thousands) 2015 2014 2015 2014 Cost of revenue $ 266 $ 317 $ 771 $ 932 Research and development 511 797 1,598 2,473 Selling and marketing 829 599 2,978 2,228 General and administrative 1,480 1,569 5,080 5,882 Total $ 3,086 $ 3,282 $ 10,427 $ 11,515 Stock options granted generally vest over a four -year period, with 25% of the shares vesting after one year and monthly vesting thereafter. The options generally expire ten years from the date of grant. For the nine months ended December 31, 2015 , the Company granted 0.1 million stock options at a weighted average grant date fair value of $6.56 per share. For the three months ended December 31, 2015 and December 31, 2014 , share-based compensation expense related to stock options and the Company's employee stock purchase plan was $0.6 million and $1.9 million , respectively. For the nine months ended December 31, 2015 and December 31, 2014 , share-based compensation expense related to stock options and the Company's employee stock purchase plan was $3.1 million and $5.9 million , respectively. Certain of the Company's management-level employees receive performance stock options, which gives the recipient the right to receive common stock that is contingent upon achievement of specified pre-established performance goals over the performance period, which is generally three years subject to the recipient's continued service with the Company. The performance goals for the performance stock options are based on the measurement of the Company's total stockholder return, on a percentile basis, compared to a comparable group of companies. Depending on the outcome of the performance goals, the recipient may ultimately earn performance stock options equal to or less than the number of performance stock options granted. For the three months ended December 31, 2015 and December 31, 2014 , share based compensation expense related to performance stock options was $0.2 million and $0.2 million , respectively. For the nine months ended December 31, 2015 and December 31, 2014 , share based compensation expense related to performance stock options was $0.5 million and $0.5 million , respectively. Certain of the Company's management-level employees also receive performance stock units, which gives the recipient the right to receive common stock that is contingent upon achievement of specific pre-established performance goals over the performance period, which is generally two years subject to the recipient's continued service with the Company. The performance goals are based on achieving certain levels of total licensing revenue over the performance period. Depending on the outcome of the performance goals, the recipient may ultimately earn performance stock units between 0% and 200% of the number of performance stock units granted. For the nine months ended December 31, 2015 , the Company granted 0.3 million performance stock units at a weighted average granted date fair value of $12.63 per performance stock unit. For the three months ended December 31, 2015 and December 31, 2014 , share-based compensation expense related to performance stock units was $0.6 million and $17 thousand , respectively. For the nine months ended December 31, 2015 and December 31, 2014 , share-based compensation expense related to performance stock units was $2.1 million and $1.0 million , respectively. Certain of the Company's employees, including certain management level employees, receive time-based restricted stock units. These restricted stock units vest over one to three years based upon a recipient's continued service with the Company. For the nine months ended December 31, 2015 , the Company granted 0.5 million restricted stock units at a weighted average grant date fair value of $12.63 per restricted stock unit. For the three months ended December 31, 2015 and December 31, 2014 , share-based compensation expense related to restricted stock units was $1.7 million and $1.5 million , respectively. For the nine months ended December 31, 2015 and December 31, 2014 , share-based compensation expense related to restricted stock units was $4.7 million and $4.1 million , respectively. |
Income taxes
Income taxes | 9 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The Company's income tax for the three months ended December 31, 2015 and December 31, 2014 was $4.5 million and $1.2 million , respectively. The Company's income tax expense for the nine months ended December 31, 2015 and December 31, 2014 was $6.7 million and $5.1 million , respectively. The increases in income tax expense are primarily due to the mixture of income generated by the Company in foreign jurisdictions with differing withholding and income tax rates. Accounting for income taxes for interim periods generally requires the provision for income taxes to be determined by applying an estimate of the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period unless the Company is unable to estimate its annual effective tax rate with reasonable accuracy. The Company has used a discrete effective tax rate method to calculate taxes for the fiscal three and nine month periods ended December 31, 2015. The Company determined that since small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate, the method of applying an estimate of the annual effective tax rate for the full year to the year to date “ordinary” income would not provide a reliable estimate for the fiscal three and nine month periods ended December 31, 2015. The Company has net operating losses that may potentially be offset against future domestic earnings. The Company files federal income tax returns and also files income tax returns in various state and foreign jurisdictions. Due to the net operating loss carryforwards, the Company's United States federal and state returns are open to examination by the Internal Revenue Service and state jurisdictions for all years since inception. During the quarter ended September 30, 2015, the Company changed its indefinite reinvestment position with respect to earnings generated in its Chinese subsidiary. The Company intends to repatriate substantially all of its earnings from this subsidiary in the future. During fiscal 2016, the Company intends to repatriate approximately $16.4 million of earnings from China to the United States. The Company has recorded the US income tax and foreign withholding taxes related to the excess of the financial reporting basis over the tax basis of its investment in its China subsidiary. The Company continues to assert that all earnings and profits for its remaining foreign subsidiaries are indefinitely reinvested. Accordingly, the Company has not recorded U.S. income or foreign withholding taxes with respect to the excess of the financial reporting basis over the tax basis in its investment in these foreign subsidiaries. As of December 31, 2015 , the Company has determined, based on the weight of the available evidence, both positive and negative, to provide for a valuation allowance against substantially all of the net deferred tax assets. The current deferred tax assets not reserved for by the valuation allowance are those in foreign jurisdictions or amounts that may be carried back in future years. If there is a change in circumstances that causes a change in judgment about the realizability of the deferred tax assets, the Company will adjust all or a portion of the applicable valuation allowance in the period when such change occurs. |
Equity
Equity | 9 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Equity | Equity A summary of the changes in total equity for the nine months ended December 31, 2015 was as follows: (in thousands) RealD Inc. Noncontrolling interest Total equity Balance, March 31, 2015 $ 146,846 $ (503 ) $ 146,343 Share-based compensation 10,427 — 10,427 Exercise of stock options 1,245 — 1,245 Purchase and distribution of stock under employee stock purchase plan 562 — 562 Repurchase of statutory withholdings of stock issued for restricted stock units (1,773 ) — (1,773 ) Comprehensive loss: Other comprehensive loss, net of tax (167 ) — (167 ) Net loss (4,874 ) — (4,874 ) Total comprehensive loss (5,041 ) — (5,041 ) Balance, December 31, 2015 $ 152,266 $ (503 ) $ 151,763 |
Related-party transactions
Related-party transactions | 9 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related-party transactions | Related-party transactions On December 23, 2015, the Compensation Committee of the board of directors of the Company approved the acceleration of a portion of the annual cash bonus of Vivian W. Yang, Executive Vice President and General Counsel of the Company. The amount of the accelerated portion of the bonus is equal to $0.2 million , which represents 50% of Ms. Yang’s annual target bonus for fiscal year 2016. The bonus was paid in December 2015. |
Segment and geographic informat
Segment and geographic information (Notes) | 9 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and geographic information | Segment and geographic information For financial reporting purposes, the Company historically had one reportable segment, which consisted of three operating segments with similar economic characteristics: cinema, 3D consumer electronics and 3D professional, collectively referred to as Cinema. On August 17, 2015, the Company entered into a contract with a computer technology company to develop and commercialize the Company's intelligent backlight technology, or IBT. The Company dedicated a group of employees and resources to support and fulfill our obligations under this agreement. Therefore, the Company created its fourth operating segment, referred to as Consumer. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. In the operation of the business, the Company's management team, including the Company’s Chief Executive Officer (who is also the Company's chief operating decision maker) reviews certain financial information, including segmented internal profit and loss statements. The reportable segments are described as follows: Cinema Cinema consists of three operating segments: cinema, 3D consumer electronics and 3D professional. The Company's product portfolio is primarily used in applications that enable a premium 3D viewing experience across these operating segments. The Company currently generates substantially all of its revenue from the license of its RealD Cinema Systems and the sale of its eyewear, which together enable a digital cinema projector to show 3D motion pictures. Consumer Consumer is its own operating segment. This segment is established to support the Company's agreement with a computer technology company to develop and commercialize the Company's IBT technology. The contractual obligations and operating objectives for the contract are different from the Company's existing theatrical 3D viewing business. The Company received $7.5 million for upfront nonrefundable and nonrecoupable license fees which are currently classified under Deferred Revenue, net of current portion, for the fiscal period ended December 31, 2015. Revenue, cost of sales and operating expenses are generally directly attributed to the reportable segments. Operating expenses are attributed to each reportable segment as follows: • Sales and marketing expenses are primarily recorded directly to each reportable segment based on identified customer segment. • R&D expenses are mapped directly in all cases where the value of the expenses only accrues to that reportable segment group. • General and administrative expenses are generally not allocated. Certain corporate-level occupancy activity is allocated to each reportable segments per head-count, including costs of depreciation , utilities and other common area expenses at the Company's headquarters and R&D facility. Segment information As the Company started to have two reportable segments in the second quarter of fiscal 2016, costs related to IBT were not tracked separately prior to executing the Consumer contract in the second quarter of fiscal year 2016. Therefore, it is impracticable to report historical IBT costs and restate prior segment reporting. Segment revenue, gross profit, operating expenses and operating income (loss) for the three and nine months ended December 31, 2015 and December 31, 2014 were as follows: Three months ended 2015 2014 (in thousands) Cinema Consumer Total Cinema Consumer Total Revenue $ 50,373 $ — $ 50,373 $ 32,571 $ — $ 32,571 Gross profit 26,963 — 26,963 14,963 — 14,963 Operating expenses: Research and development 2,628 1,479 4,107 4,582 — 4,582 Sales and marketing 4,148 355 4,503 4,382 — 4,382 General and administrative 17,036 23 17,059 12,654 — 12,654 Total operating expenses 23,812 1,857 25,669 21,618 — 21,618 Total operating income (loss) $ 3,151 $ (1,857 ) $ 1,294 $ (6,655 ) $ — $ (6,655 ) Nine months ended 2015 2014 (in thousands) Cinema Consumer Total Cinema Consumer Total Revenue $ 142,394 $ — $ 142,394 $ 135,558 $ — $ 135,558 Gross profit 75,828 — 75,828 70,536 — 70,536 Operating expenses: Research and development 8,789 1,789 10,578 14,692 — 14,692 Sales and marketing 14,102 503 14,605 15,493 — 15,493 General and administrative 45,391 23 45,414 35,804 — 35,804 Total operating expenses 68,282 2,315 70,597 65,989 — 65,989 Total operating income (loss) $ 7,546 $ (2,315 ) $ 5,231 $ 4,547 $ — $ 4,547 Geographic information Revenue by geographic region, as determined based on the location of our customers or the anticipated destination of use was as follows: Three months ended Nine months ended (in thousands) 2015 2014 2015 2014 Domestic (United States and Canada) $ 26,470 $ 12,341 $ 72,265 $ 59,413 China 4,650 4,413 16,350 13,683 Rest of world 19,253 15,817 53,779 62,462 Total revenues $ 50,373 $ 32,571 $ 142,394 $ 135,558 Long-lived tangible assets, net of accumulated depreciation, by geographic region were as follows: (in thousands) December 31, March 31, Domestic (United States and Canada) $ 67,014 $ 87,134 China 11,022 10,185 Rest of world 7,956 5,523 Total long-lived tangible assets $ 85,992 $ 102,842 |
Subsequent event
Subsequent event | 9 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent event | Subsequent event Filing Definitive Proxy Statement On January 15, 2016, the Company filed a Definitive Proxy Statement on Schedule 14A, together with a Schedule 13E-3, as amended, with the Securities Exchange Commission, to notify its stockholders that a special meeting of stockholders will be held on February 24, 2016 to consider and vote upon, among other things, the proposal to approve the Merger Agreement. Stockholder litigation The following complaint was filed on January 25, 2016 in the Superior Court of the State of California challenging the Merger: Robert Garfield v. RealD Inc. et al . (Case No. BC 608309). The action is a putative class action filed on behalf of the public stockholders of the Company and names as defendants the Company, its directors, its investment bank and employees thereof and the entities that were formed for effectuating the transaction. The complaint generally alleges that the individual defendants breached their fiduciary duties in connection with their consideration and approval of the Merger, and that the investment bank and entity defendants aided and abetted those breaches. The plaintiff seeks, among other relief, declaratory and injunctive relief enjoining the Merger. The outcome of this lawsuit is uncertain and cannot be predicted with any certainty. An adverse judgment for monetary damages could have a material adverse effect on the operations and liquidity of the Company. A preliminary injunction could delay or jeopardize the completion of the Merger, and an adverse judgment granting permanent injunctive relief could indefinitely enjoin completion of the Merger. The Company believes that the claims asserted against it are without merit. |
Summary of significant accoun21
Summary of significant accounting policies (Policies) | 9 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and applicable disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. The most significant estimates made by management in the preparation of the financial statements relate to the following: • licensing revenue terms applied to the timing and number of motion picture exhibitor consumer admissions; • domestic eyewear product revenue terms applied to when the usage occurs and the amount of usage; • deferred costs of domestic eyewear product shipments; • effects of allowances that are capitalized on the balance sheet and amortized to the applicable line item on the statement of operations as expense or contra revenue and earned customer incentives when customers do not timely report the activity that result in earned allowances and incentives; • customer contract terms and their effects on revenue and balance sheet items; • fair market values of multiple deliverable components relating to sales of product, services and intellectual property; • impairment testing of goodwill, intangible assets and tangible assets, including determination of relevant reporting units and long-lived asset groups; • useful lives of intangible assets and tangible assets; • timing and amount recognized for performance-based compensation, including bonus, executive salary and executive restricted stock units, based on projections of the Company's performance achievement; • the impact of potential future tax consequences of events that have been recognized in the Company’s financial statements; • valuation of accruals and allowances; • contingency assessments; and • assumptions used in the determination of the fair value of equity-based awards for stock-based compensation. |
Earnings (loss) per share of common stock | Earnings (loss) per share of common stock Basic earnings (loss) per share of common stock is computed by dividing the net income (loss) attributable to RealD's common stockholders for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share of common stock is computed by dividing income attributable to the Company’s common stockholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares that may be purchased under the Company’s employee stock purchase plan and unvested restricted stock units. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share of common stock by application of the treasury stock method. |
Accounts receivable, net | Accounts receivable, net Accounts receivable, net, consists of trade receivables, value-added tax, or VAT, receivables, other receivables and allowance for doubtful accounts and customer credits. The Company provides credit to its customers, who are primarily in the movie production and exhibition businesses. The Company provides for the estimated accounts receivable that will not be collected. These estimates are based on an analysis of historical bad debts, customer concentrations, customer creditworthiness, current economic trends and changes in the customers’ payment terms and their economic condition. Collection of accounts receivable may be affected by changes in economic or other industry conditions and may, accordingly, impact the Company’s overall credit risk. Estimated accounts receivable that will not be collected is expensed as bad debt expense as part of the Company's general and administrative costs. Credits to the Company's customers are netted against their corresponding revenues. The allowance for doubtful accounts and customer credits totaled $5.3 million and $5.9 million as of December 31, 2015 and March 31, 2015 , respectively. |
Inventories and deferred costs-eyewear | Inventories and deferred costs-eyewear Inventories and deferred costs-eyewear mostly include RealD eyewear and are substantially all finished goods. Inventories and deferred costs-eyewear are valued at the lower of cost (first-in, first-out method) or market value. At each balance sheet date, the Company evaluates ending inventories and deferred costs-eyewear for lower cost and market value. The Company also evaluates inventories for excess quantities and obsolescence. These evaluations include analyses of expected future average selling prices, projections of future demand and technology changes. In order to state inventories at the lower of cost or market, RealD maintains reserves against such inventories. If the Company’s analyses indicate that market is lower than cost, a write-down of inventories is recorded in cost of revenue in the period the loss is identified. As of December 31, 2015 , the inventory reserve as a result of the Company's realizable value analyses was insignificant. As of March 31, 2015 , the inventory reserve as a result of the Company’s net realizable value analyses was $0.1 million . Domestically, the Company provides RealD eyewear free of charge to motion picture exhibitors and then receives a fee from the motion picture studios for the usage of RealD eyewear by the motion picture exhibitors’ consumers. Eyewear shipped from inventory is deferred on the shipment date and then amortized to cost of product revenue according to assumptions related to eyewear usage by consumers. Internationally, the motion picture exhibitors prepay the Company for RealD eyewear ordered. Inventory shipped is recognized to cost of product revenue according to transfer of title. Globally, the Company may provide limited amount of RealD eyewear to motion picture studios for marketing purposes. Inventory shipped for marketing purposes is recognized to sales and marketing expense. |
Impairment of long-lived assets | Impairment of long-lived assets The Company reviews long-lived assets, such as property and equipment, cinema systems, digital projectors and intangibles, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Factors or circumstances that could indicate the occurrence of such events include current period operating or cash flow losses combined with a history of operating or cash flow losses, a projection or forecast that demonstrates continuing operating or cash flow losses, or incurring costs in excess of amounts originally expected to acquire or construct an asset. If the long-term asset group carrying value is not recoverable by its estimated future cash flows (its fair value), an impairment loss is recognized as the amount by which the carrying amount of the asset exceeds its fair value. For the three months ended December 31, 2015 and December 31, 2014 , impairment charges for all impaired cinema systems equipped with RealD 3D technology, or RealD Cinema Systems, charged to cost of revenue totaled $0.3 million and $1.3 million , respectively. For the nine months ended December 31, 2015 and December 31, 2014 , impairment charges for all impaired RealD Cinema Systems charged to cost of revenue totaled $1.1 million and $2.7 million , respectively. During the fiscal quarter ended December 31, 2015 , the Company terminated a portion of its operation space in Boulder, Colorado, which resulted in impairment charges for all associated leasehold improvements. Charges to cost of revenue totaled $1.1 million for both the three months and nine months ended December 31, 2015 . There were no such charges for both the three months and nine months ended December 31, 2014. |
Revenue recognition | Revenue recognition The Company derives substantially all of its revenue from the license of RealD Cinema Systems and the product sale or use of RealD eyewear. RealD evaluates revenue recognition for transactions using the criteria set forth by the Financial Accounting Standard Board, or FASB, Accounting Standards Codification, or ASC, Topic 840, Leases , and ASC Topic 605, Revenue Recognition . The revenue recognition guidance states that revenue is recognized when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller’s price to the buyer is fixed or determinable and collectability is reasonably assured. The Company records revenue net of estimated allowances. The Company assesses revenue arrangements to determine whether multiple deliverables of its products, services and technology exist. For deliverables in multiple-element arrangements, the guidance below is applied for separability and allocation. A multiple-deliverable arrangement is separated into more than one unit of accounting if the following criteria are met: • The delivered item(s) has value to the client on a stand-alone basis; and • If the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the company. If these criteria are not met, the arrangement is accounted for as one unit of accounting which would result in revenue being recognized ratably over the contract term or being deferred until the earlier of when such criteria are met or when the last undelivered element is delivered. If these criteria are met for each deliverable and there is a relative selling price for all units of accounting in an arrangement, the arrangement consideration is allocated to the separate units of accounting based on each unit’s relative selling price. The following revenue policies are then applied to each unit of accounting, as applicable. License revenue from RealD Cinema Systems License revenue, net of lease incentives and other allowances, from RealD Cinema Systems, is accounted for as an operating lease. License revenue from RealD Cinema Systems is primarily derived under per-admission, percentage of box office, periodic fixed fee, or per-motion picture basis with motion picture exhibitors. Amounts received up front, less estimated lease incentives, are deferred and recognized over the lease term using the straight-line method. Additional lease payments that are contingent upon future events outside the Company’s control, including those related to admission and usage, are recognized as revenues when the contingency is resolved and the Company has no more obligations to its customers specific to the contingent payment received. Certain of the Company’s license revenue from leasing RealD Cinema Systems is earned upon admission by the motion picture exhibitor’s consumers. The Company’s licensees, however, do not report and pay for such license revenue until after the admission has occurred, which may be received subsequent to the Company’s fiscal period end. The Company estimates and records domestic licensing revenue related to motion picture exhibitor consumer admissions in the quarter in which the admission occurs, but only when reasonable estimates of such amounts can be made. The Company records its international licensing revenue based on actual amounts reported by motion picture exhibitors. The Company determines that there is persuasive evidence of an arrangement upon the execution of a license agreement or upon the receipt of a licensee’s admissions report. Revenue is deemed fixed or determinable upon receipt of a licensee’s admissions report or evidence of a RealD box office showing by the licensee. The Company determines collectability based on an evaluation of the licensee’s recent payment history and evaluation of the respective customer’s credit-standing. In December 2015, the Company received corrected reporting from one of its customers indicating an over-reporting to the Company of admissions between calendar years 2009 and 2015, which suggested an over recognition of license revenue of $1.3 million in total across the related periods. The Company reduced its current fiscal period license revenue by $1.3 million while it continues to finalize this matter with its customer. If the customer had not over-reported admissions to the Company during that timeframe, the Company does not believe that the historical financial statement results (adjusted on a pro-forma basis) would be materially different from those reported in its previously filed interim or annual Financial Reports. Product and other revenue The Company recognizes product revenue, net of allowances, when title and risk of loss have passed and when there is persuasive evidence of an arrangement, the payment is fixed or determinable, and collectability of payment is reasonably assured. In the United States and Canada, certain of the Company’s product revenue from the usage of RealD eyewear is earned upon admission and usage by the motion picture exhibitor’s consumers. The Company’s customers, however, do not report admission or usage information until after the admission and usage has occurred, and such information may be received subsequent to the Company’s fiscal period end. Accordingly, the Company estimates and records such product revenue in the quarter in which the admission and usage occurs, but only when reasonable estimates of such amounts can be made. Internationally, the motion picture exhibitors prepays for the RealD eyewear, which is deferred upon receipt of cash and earned upon shipping and transfer of title of the products. There are no estimates made in relation to international sales. The Company recognizes other revenue, including service revenue, when the consideration is earned and realized or realizable. Ongoing service revenue is recognized on a straight-line basis over the longer of the contractual term or the expected period during which the specified services will be rendered. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). The only component of other comprehensive income or loss is unrealized foreign currency translation gains (losses). There were no reclassifications out of accumulated other comprehensive income during the three and nine months ended December 31, 2015 and December 31, 2014 . |
Cost of Sales, Policy [Policy Text Block] | Cost of revenue Cost of license revenue Major components of cost of license revenue include depreciation for RealD Cinema systems, impairment for RealD Cinema systems, salaries and benefits and shipping and handling costs in relation to transportation of RealD Cinema systems. Cost of product and other revenue Major components of cost of product and other revenue include cost for RealD eyewear, shipping and handling costs in relation to transportation of RealD eyewear, recycling costs for RealD eyewear and salaries and benefits. |
Shipping and handling costs | Shipping and handling costs Amounts billed to customers for shipping and handling costs are included in both cost of license revenue and cost of product and other revenue. RealD’s shipping and handling costs consists primarily of packaging and transportation charges and are recorded in cost of revenue. Shipping and handling costs recognized in cost of revenue were $1.9 million and $1.0 million for the three months ended December 31, 2015 and December 31, 2014 , respectively. Shipping and handling costs recognized in cost of revenue were $6.9 million and $5.2 million for the nine months ended December 31, 2015 and December 31, 2014 , respectively. |
Research and development | Research and development Research and development, or R&D, costs are expensed as incurred. Major components of R&D expense include salaries and benefits, depreciation for R&D assets, materials and supplies inclusive of prototypes, non-recurring engineering, payments to third parties for R&D, facilities and equipment that can only be used for a particular project and overhead allocations of various administrative and facilities costs related to R&D. |
Selling and Marketing Expense | Selling and marketing Selling and marketing, or S&M, costs are expensed as incurred. Major components of S&M expense include salaries and benefits, various marketing and promotional events related expenses and overhead allocations of various administrative and facilities costs related to S&M. |
General and administrative costs | General and administrative costs General and administrative costs principally consist of personnel costs related to our executive, legal, finance and human resources staff, professional fees including legal, financial advisory and accounting costs, occupancy costs, public company costs and bad debt expenses. Additionally, general and administrative costs include sales, use, goods and services tax, VAT and similar taxes, collectively, referred to as the Transaction Taxes, as well as property taxes. For the Company's U.S. and some of its international cinema license and product revenue, the Company absorbs the majority of the Transaction Taxes. The Transaction Taxes recognized in general and administrative costs were $1.3 million and $0.9 million for the three months ended December 31, 2015 and December 31, 2014 , respectively. The Transaction Taxes recognized in general and administrative costs were $4.3 million and $3.1 million for the nine months ended December 31, 2015 and December 31, 2014 , respectively. |
Recent accounting pronouncements | Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) 2014-09, " Revenue from Contracts with Customers (Topic 606) ". The new Topic 606 does not apply to lease contracts within the scope of Topic 840 " Leases ". • The primary objective of ASU 2014-09 is to provide guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605 " Revenue Recognition" and most industry-specific guidance. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Revenue recognition is anticipated to entail more judgment and more estimating than under the current guidance. • ASU 2014-09 will be implemented retrospectively with the Company choosing to either restate prior periods or recognize the cumulative effect. The Company is evaluating the impact of the new guidance on the Company’s financial statements and has not yet selected a transition approach to implement this standard. • ASU 2014-09 was originally effective for the Company starting April 1, 2017 with early adoption not permitted. In August 2015, FASB issued ASU 2015-14, " Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date ". ASU 2015-14 defers the effective date by one year but allows early adoption at the original effective date. The Company has decided to adopt 2014-09 on the new effective date of April 1, 2018 (the first quarter of fiscal year 2019). In February 2015, FASB issued ASU 2015-02, " Consolidation (Topic 810): Amendments to the Consolidation Analysis ". The objective of 2015-02 is to modify the consolidation requirements of Topic 810 to ensure that reporting entities do not consolidate other legal entities in situations where deconsolidation actually more accurately represents operational and economic results. Among other changes, the amendments to ASC 810 include lessening the relevance on fees paid to a decision-maker or service provider and the related party tiebreaker test. The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years beginning after December 15, 2015. This ASU may be adopted using a full retrospective approach or a modified retrospective approach by recording a cumulative effect adjustment to equity as of the beginning of the fiscal year of adoption. ASU 2015-02 will be effective for the Company beginning in fiscal 2017. The guidance is not expected to have a material impact on the consolidated financial statements. In April 2015, FASB issued ASU 2015-03, " Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ", which changes the presentation of debt issuance costs in financial statements. Under the ASU 2015-03, such costs are presented in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and early adoption is allowed for all entities for financial statements that have not been previously issued. The guidance is to be applied retrospectively to all prior periods (i.e., the balance sheet for each period is adjusted). ASU 2015-03 will be effective for the Company beginning in fiscal 2017. The Company elected not to early adopt. The guidance is not expected to have a material impact on the consolidated financial statements. In July 2015, FASB issued ASU 2015-11, " Simplifying the Measurement of Inventory ", which amended U.S. GAAP guidance issued to simplify the measurement of inventory for all entities. The amendments apply to all inventory that is measured using first-in, first-out or average cost. The guidance requires an entity to measure inventory at the lower of cost and net realizable value. This pronouncement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted as of the beginning of an interim or annual reporting period. ASU 2015-11 will be effective for the Company beginning in fiscal 2018. The Company elected not to early adopt ASU 2015-11. The guidance is not expected to have a material impact on the consolidated financial statements. In August 2015, FASB issued ASU 2015-15, " Interest - Imputation of Interest ", which amended U.S. GAAP guidance issued for the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. The amendments clarified the SEC staff's approval to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This pronouncement was effective starting on August 5, 2015. The Company has adopted the guidance and there is no material impact on its consolidated financial statements. In September 2015, FASB issued ASU 2015-16, " Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments ", which eliminates the requirement that an acquirer in a business combination account for a measurement-period adjustment retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which the amount of the adjustment is determined. In addition, the portion of the amount recorded in current- period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date should be presented separately on the face of the income statement or disclosed in the notes. The guidance is effective April 1, 2016 with early adoption permitted. The Company has early adopted the guidance and there is no material impact on the consolidated financial statements. In November 2015, FASB issued ASU 2015-17, " Income Taxes (Topic 740), Balance Sheet Classification of Deferred Taxes ", which eliminates the current requirement for an entity to separate deferred income tax liabilities and assets into current and non-current amounts in a classified balance sheet. Instead, the ASU requires deferred tax liabilities, deferred tax assets and valuation allowances be classified as non-current in a classified balance sheet. ASU 2015-17 will be effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted. Additionally, this guidance may be applied either prospectively or retrospectively to all periods presented. The Company elected not to early adopt ASU 2015-17 and is evaluating the effect of the adoption of this ASU to its consolidated financial statements. In January 2016, FASB issued ASU 2016-01, " Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) ", which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). This guidance also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, ASU 2016-01 eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company elected not to early adopt ASU 2015-11. The guidance is not expected to have a material impact on the consolidated financial statements. |
Derivatives | The Company's derivative instruments are recorded at fair value in other current assets and other current liabilities in the condensed consolidated balance sheets. The Company's policy is to offset fair values on the balance sheet if a foreign currency master netting arrangement exists. Gains or losses related to the foreign currency forward contracts are reported as a component of other income or loss on the Company's condensed consolidated statements of operations. For all periods presented, none of the Company's derivative instruments were designated as hedging instruments. The Company does not use foreign currency option or foreign exchange forward contracts for speculative or trading purposes. |
Summary of significant accoun22
Summary of significant accounting policies (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Calculation of the Basic and Diluted Loss Per Share of Common Stock | The calculation of the basic and diluted loss per share of common stock for the three and nine months ended December 31, 2015 and December 31, 2014 was as follows: Three months ended Nine months ended (in thousands, except per share data) 2015 2014 2015 2014 Numerator: Net loss $ (4,282 ) $ (11,290 ) $ (4,874 ) $ (6,112 ) Net income attributable to noncontrolling interest — — — — Net loss attributable to RealD Inc. common stockholders $ (4,282 ) $ (11,290 ) $ (4,874 ) $ (6,112 ) Denominator: Weighted-average common shares outstanding (basic) 51,474 49,771 51,183 49,935 Effect of dilutive securities — — — — Weighted-average common shares outstanding (diluted) 51,474 49,771 51,183 49,935 Loss per common share: Basic $ (0.08 ) $ (0.23 ) $ (0.10 ) $ (0.12 ) Diluted $ (0.08 ) $ (0.23 ) $ (0.10 ) $ (0.12 ) |
Schedule of Weighted-Average Number of Anti-Dilutive Shares Excluded From the Calculation of Diluted Loss Per Common Share | The weighted-average number of anti-dilutive shares excluded from the calculation of diluted earnings (loss) per share of common stock for the three and nine months ended December 31, 2015 and December 31, 2014 was as follows: Three months ended Nine months ended (in thousands) 2015 2014 2015 2014 Options, employee stock purchase plan, restricted stock units and performance stock units 8,833 10,944 8,912 9,678 |
Cinema Systems and Property &23
Cinema Systems and Property & Equipment (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment of RealD Cinema Systems and Digital Projectors | Tangible fixed assets consist of the following: (in thousands) December 31, March 31, RealD Cinema Systems $ 213,937 $ 208,056 Leasehold improvements 15,575 16,974 Machinery and equipment 5,948 5,791 Furniture and fixtures 1,253 1,238 Computer equipment and software 10,957 10,581 Construction in process 341 565 Total $ 248,011 $ 243,205 Less accumulated depreciation (162,019 ) (140,363 ) Cinema Systems and Property & Equipment, net $ 85,992 $ 102,842 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Goodwill and other intangibles, net, consist of the following at: December 31, 2015 March 31, 2015 (in thousands) Gross amount Accumulated amortization Gross amount Accumulated amortization Acquired developed technologies $ 9,324 $ 5,485 $ 9,324 $ 4,507 Goodwill 10,657 — 10,657 — Total $ 19,981 $ 5,485 $ 19,981 $ 4,507 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | At December 31, 2015 , the remaining amortization expense is estimated to be as follows (in thousands): Remainder of fiscal year 2016 $ 325 Fiscal year 2017 1,300 Fiscal year 2018 1,287 Fiscal year 2019 306 Fiscal year 2020 129 Thereafter 492 Total $ 3,839 |
Fair value measurement (Tables)
Fair value measurement (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of the Derivative Instruments | The fair value measurement of the derivative instruments was as follows: (in thousands) Fair value measurement as of December 31, 2015: Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs Significant unobservable inputs Total Assets: Derivatives: Foreign currency forward contracts $ — $ 11 $ — $ 11 Total assets $ — $ 11 $ — $ 11 Liabilities: Derivatives: Foreign currency forward contracts $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — |
Cost Reduction Plans (Tables)
Cost Reduction Plans (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of Charges Resulting from Implementation of the Cost Reduction Plan | The following table summarizes the charges resulting from the implementation of the Cost Reduction Plans during the three and nine months ended December 31, 2015 and December 31, 2014 : Three months ended 2015 2014 (in thousands) Personnel Leasehold Total Personnel Leasehold Total Cost of revenue $ — $ — $ — $ 1 $ 132 $ 133 Research and development 20 — 20 115 — 115 Selling and marketing 2 — 2 59 — 59 General and administrative — 595 595 2 — 2 Total $ 22 $ 595 $ 617 $ 177 $ 132 $ 309 Nine months ended 2015 2014 (in thousands) Personnel Leasehold Total Personnel Leasehold Total Cost of revenue $ 3 $ 7 $ 10 $ 25 $ 505 $ 530 Research and development 39 — 39 115 — 115 Selling and marketing 137 22 159 75 — 75 General and administrative — 595 595 192 — 192 Total $ 179 $ 624 $ 803 $ 407 $ 505 $ 912 |
Summary of Currently Estimated Charges Resulting from the Cost Reduction Plan Implementation | The following table summarizes the activity resulting from the implementation of the Cost Reduction Plans within accrued expenses and other liabilities: Payments excluding non-cash impairment (in thousands) Personnel Leasehold Total Cost reduction plan liabilities as of March 31, 2015 $ 1,249 $ 265 $ 1,514 Charges 179 624 803 (Payments) (735 ) (775 ) (1,510 ) Cost reduction plan liabilities as of December 31, 2015 $ 693 $ 114 $ 807 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of the Current and Non-Current Portions of the Credit Agreement | The current and non-current portions of the 2014 Credit Agreement due as of December 31, 2015 and March 31, 2015 were as follows: December 31, March 31, (in thousands) Current portion of Credit Agreement $ 10,635 $ 7,460 Credit Agreement, net of current portion 24,723 22,380 Total Credit Agreement $ 35,358 $ 29,840 |
Schedule of Future Minimum Credit Agreement Obligations | At December 31, 2015 , the Company's future minimum 2014 Credit Agreement obligations were as follows: Fiscal year 2016 $ 2,659 Fiscal year 2017 10,635 Fiscal year 2018 10,635 Fiscal year 2019 11,429 Total $ 35,358 |
Share-based compensation (Table
Share-based compensation (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation expense for all share-based arrangements | Share-based compensation expense for all share-based arrangements for the three and nine months ended December 31, 2015 and December 31, 2014 was as follows: Three months ended Nine months ended (in thousands) 2015 2014 2015 2014 Cost of revenue $ 266 $ 317 $ 771 $ 932 Research and development 511 797 1,598 2,473 Selling and marketing 829 599 2,978 2,228 General and administrative 1,480 1,569 5,080 5,882 Total $ 3,086 $ 3,282 $ 10,427 $ 11,515 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Summary of the changes in total equity | A summary of the changes in total equity for the nine months ended December 31, 2015 was as follows: (in thousands) RealD Inc. Noncontrolling interest Total equity Balance, March 31, 2015 $ 146,846 $ (503 ) $ 146,343 Share-based compensation 10,427 — 10,427 Exercise of stock options 1,245 — 1,245 Purchase and distribution of stock under employee stock purchase plan 562 — 562 Repurchase of statutory withholdings of stock issued for restricted stock units (1,773 ) — (1,773 ) Comprehensive loss: Other comprehensive loss, net of tax (167 ) — (167 ) Net loss (4,874 ) — (4,874 ) Total comprehensive loss (5,041 ) — (5,041 ) Balance, December 31, 2015 $ 152,266 $ (503 ) $ 151,763 |
Segment and geographic inform30
Segment and geographic information (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment information As the Company started to have two reportable segments in the second quarter of fiscal 2016, costs related to IBT were not tracked separately prior to executing the Consumer contract in the second quarter of fiscal year 2016. Therefore, it is impracticable to report historical IBT costs and restate prior segment reporting. Segment revenue, gross profit, operating expenses and operating income (loss) for the three and nine months ended December 31, 2015 and December 31, 2014 were as follows: Three months ended 2015 2014 (in thousands) Cinema Consumer Total Cinema Consumer Total Revenue $ 50,373 $ — $ 50,373 $ 32,571 $ — $ 32,571 Gross profit 26,963 — 26,963 14,963 — 14,963 Operating expenses: Research and development 2,628 1,479 4,107 4,582 — 4,582 Sales and marketing 4,148 355 4,503 4,382 — 4,382 General and administrative 17,036 23 17,059 12,654 — 12,654 Total operating expenses 23,812 1,857 25,669 21,618 — 21,618 Total operating income (loss) $ 3,151 $ (1,857 ) $ 1,294 $ (6,655 ) $ — $ (6,655 ) Nine months ended 2015 2014 (in thousands) Cinema Consumer Total Cinema Consumer Total Revenue $ 142,394 $ — $ 142,394 $ 135,558 $ — $ 135,558 Gross profit 75,828 — 75,828 70,536 — 70,536 Operating expenses: Research and development 8,789 1,789 10,578 14,692 — 14,692 Sales and marketing 14,102 503 14,605 15,493 — 15,493 General and administrative 45,391 23 45,414 35,804 — 35,804 Total operating expenses 68,282 2,315 70,597 65,989 — 65,989 Total operating income (loss) $ 7,546 $ (2,315 ) $ 5,231 $ 4,547 $ — $ 4,547 |
Schedule of Revenues from External Customers by Geographical Areas | Geographic information Revenue by geographic region, as determined based on the location of our customers or the anticipated destination of use was as follows: Three months ended Nine months ended (in thousands) 2015 2014 2015 2014 Domestic (United States and Canada) $ 26,470 $ 12,341 $ 72,265 $ 59,413 China 4,650 4,413 16,350 13,683 Rest of world 19,253 15,817 53,779 62,462 Total revenues $ 50,373 $ 32,571 $ 142,394 $ 135,558 |
Schedule of Long Lived Assets by Geographical Areas | Long-lived tangible assets, net of accumulated depreciation, by geographic region were as follows: (in thousands) December 31, March 31, Domestic (United States and Canada) $ 67,014 $ 87,134 China 11,022 10,185 Rest of world 7,956 5,523 Total long-lived tangible assets $ 85,992 $ 102,842 |
Business and basis of present31
Business and basis of presentation (Details) - USD ($) $ in Millions | Nov. 08, 2015 | Dec. 31, 2015 |
Business Combination, Acquisition Related Costs | $ 5.8 | |
Purchaser and Merger Sub [Member] | ||
Business Combination, Liability for Advisory Fees | $ 1.5 | |
Business Combination, Contractual Termination, Fee | 24 | |
Business Combination, Contractual Termination, Maximum Reimbursement of Expenses | $ 6 |
Summary of significant accoun32
Summary of significant accounting policies (Earnings (loss) per share of common stock) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | ||||
Net income | $ (4,282) | $ (11,290) | $ (4,874) | $ (6,112) |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net loss attributable to RealD Inc. common stockholders | $ (4,282) | $ (11,290) | $ (4,874) | $ (6,112) |
Denominator: (in shares) | ||||
Weighted-average common shares outstanding (basic) | 51,474 | 49,771 | 51,183 | 49,935 |
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Weighted-average common shares outstanding (diluted) | 51,474 | 49,771 | 51,183 | 49,935 |
Loss per common share: | ||||
Basic (in dollars per share) | $ (0.08) | $ (0.23) | $ (0.10) | $ (0.12) |
Diluted (in dollars per share) | $ (0.08) | $ (0.23) | $ (0.10) | $ (0.12) |
Options, employee stock purchase plan, restricted stock units and warrants to purchase common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average number of anti-dilutive shares excluded from the calculation of diluted loss per common share | 8,833 | 10,944 | 8,912 | 9,678 |
Summary of significant accoun33
Summary of significant accounting policies (Accounts Receivable) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Mar. 31, 2015 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts, current | $ 5.3 | $ 5.9 |
Summary of significant accoun34
Summary of significant accounting policies (Inventories and Deferred Costs-Eyewear) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Accounting Policies [Abstract] | ||
Inventory reserve | $ 0 | $ 100 |
Summary of significant accoun35
Summary of significant accounting policies (Impairment of Long-Lived Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||||
Impairment charges | $ 0.3 | $ 1.3 | $ 1.1 | $ 2.7 |
Impaired Long-Lived Assets Held and Used [Line Items] | $ 1.1 |
Summary of significant accoun36
Summary of significant accounting policies (Shipping and Handling Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||||
Shipping and handling costs | $ 1.9 | $ 1 | $ 6.9 | $ 5.2 |
Summary of significant accoun37
Summary of significant accounting policies (General and administrative costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||||
Taxes, Other | $ 1.3 | $ 0.9 | $ 4.3 | $ 3.1 |
Summary of significant accoun38
Summary of significant accounting policies (Comprehensive income (loss)) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 0 | $ 0 | $ 0 | |
Inventory Valuation Reserves | $ 0 | $ 0 | $ 100,000 |
Summary of significant accoun39
Summary of significant accounting policies Cost of revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||||
License Costs | $ 10,656 | $ 11,487 | $ 30,917 | $ 33,612 |
Product and Other Cost of Goods Sold | $ 12,754 | $ 6,121 | $ 35,649 | $ 31,410 |
Summary of significant accoun40
Summary of significant accounting policies Revenue (Details) - Over-Reporting of License Revenue - USD ($) $ in Millions | 9 Months Ended | 96 Months Ended |
Dec. 31, 2015 | Dec. 31, 2015 | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Estimated over recognition of license revenue | $ 1.3 | |
Licenses Revenue | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Reduction in license revenue | $ 1.3 |
Cinema Systems and Property &41
Cinema Systems and Property & Equipment (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 8.6 | $ 9.6 | $ 26.7 | $ 29 |
Cinema Systems and Property &42
Cinema Systems and Property & Equipment (Tangible Fixed Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Property and equipment, RealD Cinema Systems and digital projectors | ||
Total | $ 248,011 | $ 243,205 |
Less accumulated depreciation | (162,019) | (140,363) |
Cinema Systems and Property & Equipment, net | 85,992 | 102,842 |
RealD Cinema Systems | ||
Property and equipment, RealD Cinema Systems and digital projectors | ||
Total | 213,937 | 208,056 |
Leasehold improvements | ||
Property and equipment, RealD Cinema Systems and digital projectors | ||
Total | 15,575 | 16,974 |
Machinery and equipment | ||
Property and equipment, RealD Cinema Systems and digital projectors | ||
Total | 5,948 | 5,791 |
Furniture and fixtures | ||
Property and equipment, RealD Cinema Systems and digital projectors | ||
Total | 1,253 | 1,238 |
Computer equipment and software | ||
Property and equipment, RealD Cinema Systems and digital projectors | ||
Total | 10,957 | 10,581 |
Construction in process | ||
Property and equipment, RealD Cinema Systems and digital projectors | ||
Total | $ 341 | $ 565 |
Goodwill and intangible asset43
Goodwill and intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2015 | |
Amortization of Intangible Assets | $ 300 | $ 1,000 | |
Finite-Lived Intangible Assets, Gross | 9,324 | 9,324 | $ 9,324 |
Finite-Lived Intangible Assets, Accumulated Amortization | 5,485 | 5,485 | 4,507 |
Goodwill | 10,657 | 10,657 | 10,657 |
Intangible Assets Gross Including Goodwill | $ 19,981 | $ 19,981 | $ 19,981 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years 11 months 10 days | ||
Minimum [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 19 years |
Goodwill and intangible asset44
Goodwill and intangible assets Amortization expense (Details) - Minimum [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 325 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,300 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 1,287 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 306 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 129 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 492 |
Finite-Lived Intangible Assets, Net | $ 3,839 |
Fair value measurement (Details
Fair value measurement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |
Foreign exchange forward | |||||
Derivative instruments | |||||
Gain (loss) on foreign currency derivative instruments not designated as hedging instruments | $ (8) | $ 200 | $ (400) | $ 300 | |
Not designated as hedging instrument | |||||
Derivative instruments | |||||
Derivative asset, fair value, gross asset | 11 | 11 | |||
Derivative liability, fair value, gross liability | 0 | 0 | |||
Not designated as hedging instrument | Fair value, inputs, level 1 | |||||
Derivative instruments | |||||
Derivative asset, fair value, gross asset | 0 | 0 | |||
Derivative liability, fair value, gross liability | 0 | 0 | |||
Not designated as hedging instrument | Fair value, inputs, level 2 | |||||
Derivative instruments | |||||
Derivative asset, fair value, gross asset | 11 | 11 | |||
Derivative liability, fair value, gross liability | 0 | 0 | |||
Not designated as hedging instrument | Fair value, inputs, level 3 | |||||
Derivative instruments | |||||
Derivative asset, fair value, gross asset | 0 | 0 | |||
Derivative liability, fair value, gross liability | 0 | 0 | |||
Not designated as hedging instrument | Foreign exchange forward | |||||
Derivative instruments | |||||
Derivative asset, fair value, gross asset | 11 | 11 | |||
Derivative liability, fair value, gross liability | 0 | 0 | |||
Not designated as hedging instrument | Foreign exchange forward | Fair value, inputs, level 1 | |||||
Derivative instruments | |||||
Derivative asset, fair value, gross asset | 0 | 0 | |||
Derivative liability, fair value, gross liability | 0 | $ 0 | |||
Not designated as hedging instrument | Foreign exchange forward | Fair value, inputs, level 2 | |||||
Derivative instruments | |||||
Foreign currency forward contracts, maturity period (in months) | 12 months | ||||
Derivative, notional amount | 2,400 | $ 2,400 | |||
Derivative, Carrying Amount | $ 400 | ||||
Derivative asset, fair value, gross asset | 11 | 11 | |||
Derivative liability, fair value, gross liability | 0 | 0 | |||
Not designated as hedging instrument | Foreign exchange forward | Fair value, inputs, level 3 | |||||
Derivative instruments | |||||
Derivative asset, fair value, gross asset | 0 | 0 | |||
Derivative liability, fair value, gross liability | $ 0 | $ 0 |
Cost Reduction Plans (Narrative
Cost Reduction Plans (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |
2014 Cost Reduction Plan | |||||
Total | $ 248,011 | $ 248,011 | $ 243,205 | ||
Cost reduction plan total charges incurred to date | 6,900 | 6,900 | $ 6,100 | ||
Impairment of long-lived assets and related purchase commitments | 2,213 | $ 2,736 | |||
Restructuring charges | $ 617 | $ 309 | $ 803 | $ 912 |
Cost Reduction Plans (Implement
Cost Reduction Plans (Implementation of the 2014 Cost Reduction Plan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 617 | $ 309 | $ 803 | $ 912 |
Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 133 | 10 | 530 |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 20 | 115 | 39 | 115 |
Selling and marketing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2 | 59 | 159 | 75 |
General and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 595 | 2 | 595 | 192 |
Personnel | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 22 | 177 | 179 | 407 |
Personnel | Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 1 | 3 | 25 |
Personnel | Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 20 | 115 | 39 | 115 |
Personnel | Selling and marketing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2 | 59 | 137 | 75 |
Personnel | General and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 2 | 0 | 192 |
Leasehold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 595 | 132 | 624 | 505 |
Leasehold | Cost of revenue | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 132 | 7 | 505 |
Leasehold | Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | 0 | 0 |
Leasehold | Selling and marketing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 0 | 22 | 0 |
Leasehold | General and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 595 | $ 0 | $ 595 | $ 0 |
Cost Reduction Plans (Accrued E
Cost Reduction Plans (Accrued Expenses and Liabilities) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |
2014 Cost Reduction Plan | |||
Loss on Contract Termination | $ 1,200 | ||
Total | 248,011 | $ 243,205 | |
Summary of currently incurred charges resulting from implementation of the cost reduction plan within accrued expenses and other liabilities | |||
Cost reduction plan liabilities, period start | 1,514 | ||
Charges | 803 | ||
(Payments) | (1,510) | ||
Cost reduction plan liabilities, period end | 807 | ||
Impairment of long-lived assets and related purchase commitments | 2,213 | $ 2,736 | |
Decrease in Rent Expense | 600 | ||
Personnel | |||
Summary of currently incurred charges resulting from implementation of the cost reduction plan within accrued expenses and other liabilities | |||
Cost reduction plan liabilities, period start | 1,249 | ||
Charges | 179 | ||
(Payments) | (735) | ||
Cost reduction plan liabilities, period end | 693 | ||
Leasehold | |||
Summary of currently incurred charges resulting from implementation of the cost reduction plan within accrued expenses and other liabilities | |||
Cost reduction plan liabilities, period start | 265 | ||
Charges | 624 | ||
(Payments) | (775) | ||
Cost reduction plan liabilities, period end | 114 | ||
Leasehold improvements | |||
2014 Cost Reduction Plan | |||
Total | 15,575 | $ 16,974 | |
Property, Plant and Equipment [Member] | |||
Summary of currently incurred charges resulting from implementation of the cost reduction plan within accrued expenses and other liabilities | |||
Impairment of long-lived assets and related purchase commitments | 1,100 | ||
Beverly Hills, California [Member] | Leasehold improvements | |||
2014 Cost Reduction Plan | |||
Total | 4,800 | ||
Boulder, Colorado [Member] | Leasehold improvements | |||
2014 Cost Reduction Plan | |||
Total | $ 4,700 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($)installment | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||||||
Borrowings drawn | $ 12,700,000 | $ 37,300,000 | |||||
Available borrowing capacity | $ 50,000,000 | 50,000,000 | |||||
Amount outstanding | 35,358,000 | 35,358,000 | |||||
Repayments of principal in year four | 11,429,000 | 11,429,000 | |||||
Revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Current Borrowing Capacity | 50,000,000 | 50,000,000 | |||||
Line Of Credit Facility, Additional Amounts Available For Borrowings | 25,000,000 | 25,000,000 | |||||
Borrowing capacity | 75,000,000 | 75,000,000 | |||||
Borrowings drawn | 12,700,000 | 37,300,000 | |||||
Available borrowing capacity | 50,000,000 | 50,000,000 | |||||
Interest expense | 400,000 | $ 393,000 | $ 1,200,000 | $ 1,300,000 | |||
Revolving credit facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee of unused balance (as a percent) | 0.25% | ||||||
Revolving credit facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee of unused balance (as a percent) | 0.375% | ||||||
Notes payable to banks | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing capacity | 50,000,000 | $ 50,000,000 | |||||
Borrowings drawn | $ 12,700,000 | $ 37,300,000 | |||||
Available borrowing capacity | 0 | $ 0 | |||||
Commitment fee of unused balance (as a percent) | 0.375% | ||||||
Number of installments for debt instrument periodic payment | installment | 9 | ||||||
Amount of periodic payment of debt | $ 2,700,000 | ||||||
2014 Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs | $ 900,000 | ||||||
Deferred Costs, Noncurrent | 300,000 | ||||||
Amount outstanding | $ 35,358,000 | $ 35,358,000 | $ 29,840,000 | ||||
Interest rate (as a percent) | 2.75% | 2.75% | 2.44% | ||||
2014 Credit Agreement | Federal funds rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate added to base rate (as a percent) | 0.50% | ||||||
2014 Credit Agreement | Eurocurrency rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate added to base rate (as a percent) | 1.00% | ||||||
2014 Credit Agreement | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Letter of credit fee (as a percent) | 2.25% | ||||||
2014 Credit Agreement | Minimum | Eurodollar rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate added to base rate (as a percent) | 2.25% | ||||||
2014 Credit Agreement | Minimum | Eurocurrency rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate added to base rate (as a percent) | 1.25% | ||||||
2014 Credit Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Letter of credit fee (as a percent) | 2.75% | ||||||
2014 Credit Agreement | Maximum | Eurodollar rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate added to base rate (as a percent) | 2.75% | ||||||
2014 Credit Agreement | Maximum | Eurocurrency rate | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate added to base rate (as a percent) | 1.75% |
Borrowings (Current and Non-cur
Borrowings (Current and Non-current Portions of the Credit Agreement) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Calculation of the current and non-current portion of the Credit Agreement | ||
Current portion of Credit Agreement | $ 10,635 | $ 7,460 |
Credit Agreement, net of current portion | 24,723 | $ 22,380 |
Total Credit Agreement | $ 35,358 |
Borrowings (2014 Credit Agreeme
Borrowings (2014 Credit Agreement Obligations) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Future minimum Credit Agreement obligations | |
Fiscal year 2016 | $ 2,659 |
Fiscal year 2017 | 10,635 |
Fiscal year 2018 | 10,635 |
Fiscal year 2019 | 11,429 |
Total Credit Agreement | $ 35,358 |
Commitments and contingencies (
Commitments and contingencies (Narrative) (Details) - Purchase Commitment $ in Millions | 9 Months Ended |
Dec. 31, 2015USD ($) | |
Indemnities and commitments | |
Revolving supply commitments (in days) | 90 days |
Future obligations | $ 15.7 |
Maximum | |
Indemnities and commitments | |
Payment required under the cancellation penalty provisions as a percentage of the unused contract | 20.00% |
Commitments and contingencies O
Commitments and contingencies Other contingencies (Details) - USD ($) $ in Millions | Nov. 08, 2015 | Dec. 31, 2015 |
Other Commitments [Line Items] | ||
Business Combination, Acquisition Related Costs | $ 5.8 | |
Purchaser and Merger Sub [Member] | ||
Other Commitments [Line Items] | ||
Business Combination, Liability for Advisory Fees | $ 1.5 | |
Business Combination, Contractual Termination, Fee | 24 | |
Business Combination, Contractual Termination, Maximum Reimbursement of Expenses | $ 6 |
Share-based compensation (Narra
Share-based compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based compensation | ||||
Share-based compensation expense | $ 3,086,000 | $ 3,282,000 | $ 10,427,000 | $ 11,515,000 |
Employee Stock Option | ||||
Share-based compensation | ||||
Vesting period (in years) | 4 years | |||
Percentage of shares that vest after one year from the date of grant | 25.00% | |||
Period from grant date after which awards begin to vest (in years) | 1 year | |||
Term of options (in years) | 10 years | |||
Granted (in shares) | 0.1 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 6.56 | |||
Share-based compensation expense | 600,000 | 1,900,000 | $ 3,100,000 | 5,900,000 |
Performance Stock Options | ||||
Share-based compensation | ||||
Share-based compensation expense | 200,000 | 200,000 | $ 500,000 | 500,000 |
Performance period (in years) | 3 years | |||
Performance Stock Units PSUs | ||||
Share-based compensation | ||||
Performance period (in years) | 2 years | |||
Performance Stock Units PSUs | Minimum | ||||
Share-based compensation | ||||
Percentage of options earned depending on outcome of performance goals | 0.00% | |||
Performance Stock Units PSUs | Maximum | ||||
Share-based compensation | ||||
Percentage of options earned depending on outcome of performance goals | 200.00% | |||
Performance Shares | ||||
Share-based compensation | ||||
Granted (in shares) | 0.3 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 12.63 | |||
Share-based compensation expense | 619,000 | 17,000 | $ 2,054,000 | 1,014,000 |
Restricted Stock Units | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 1,700,000 | $ 1,500,000 | $ 4,700,000 | $ 4,100,000 |
Grants in period | 0.5 | |||
Grants in period, weighted average grant date fair value | $ 12.63 | |||
Restricted Stock Units | Minimum | ||||
Share-based compensation | ||||
Vesting period (in years) | 1 year | |||
Restricted Stock Units | Maximum | ||||
Share-based compensation | ||||
Vesting period (in years) | 3 years |
Share-based compensation (Share
Share-based compensation (Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based compensation | ||||
Share-based compensation expense | $ 3,086 | $ 3,282 | $ 10,427 | $ 11,515 |
Cost of revenue | ||||
Share-based compensation | ||||
Share-based compensation expense | 266 | 317 | 771 | 932 |
Research and development | ||||
Share-based compensation | ||||
Share-based compensation expense | 511 | 797 | 1,598 | 2,473 |
Selling and marketing | ||||
Share-based compensation | ||||
Share-based compensation expense | 829 | 599 | 2,978 | 2,228 |
General and administrative | ||||
Share-based compensation | ||||
Share-based compensation expense | $ 1,480 | $ 1,569 | $ 5,080 | $ 5,882 |
Income taxes Income Taxes (Deta
Income taxes Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 4,492 | $ 1,154 | $ 6,670 | $ 5,117 |
Foreign Earnings Repatriated | $ 16,400 |
Equity (Summary of Changes in T
Equity (Summary of Changes in Total Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Non-cash stock compensation | $ 10,427 | $ 11,515 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 146,343 | |||
Share-based compensation | 10,427 | |||
Proceeds from exercise of stock options | 1,245 | 2,782 | ||
Exercise of stock options | 1,245 | |||
Purchase and distribution of stock under employee stock purchase plan | 562 | |||
Repurchase of statutory withholdings of stock issued for restricted stock units | (1,773) | |||
Foreign currency translation gains (loss) | $ 56 | $ 1,339 | (167) | 1,810 |
Other comprehensive loss, net of tax | 56 | 1,339 | (167) | 1,810 |
Net income | (4,282) | (11,290) | (4,874) | (6,112) |
Total comprehensive income | (4,226) | $ (9,951) | (5,041) | $ (4,302) |
Balance at end of period | 151,763 | 151,763 | ||
Parent | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | 146,846 | |||
Share-based compensation | 10,427 | |||
Exercise of stock options | 1,245 | |||
Purchase and distribution of stock under employee stock purchase plan | 562 | |||
Repurchase of statutory withholdings of stock issued for restricted stock units | (1,773) | |||
Other comprehensive loss, net of tax | (167) | |||
Net income | (4,874) | |||
Total comprehensive income | (5,041) | |||
Balance at end of period | 152,266 | 152,266 | ||
Noncontrolling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at beginning of period | (503) | |||
Share-based compensation | 0 | |||
Exercise of stock options | 0 | |||
Purchase and distribution of stock under employee stock purchase plan | 0 | |||
Repurchase of statutory withholdings of stock issued for restricted stock units | 0 | |||
Other comprehensive loss, net of tax | 0 | |||
Net income | 0 | |||
Total comprehensive income | 0 | |||
Balance at end of period | $ (503) | $ (503) |
Related-party transactions (Det
Related-party transactions (Details) $ in Millions | Dec. 23, 2015USD ($) |
Executive Vice President [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Expenses from Transactions with Related Party | $ 0.2 |
Segment and geographic inform59
Segment and geographic information Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Deferred Revenue, Noncurrent | $ 11,025 | $ 11,025 | $ 3,931 | ||
Revenues | 50,373 | $ 32,571 | 142,394 | $ 135,558 | |
Gross Profit | 26,963 | 14,963 | 75,828 | 70,536 | |
Research and Development Expense | 4,107 | 4,582 | 10,578 | 14,692 | |
Selling and Marketing Expense | 4,503 | 4,382 | 14,605 | 15,493 | |
General and Administrative Expense | 17,059 | 12,654 | 45,414 | 35,804 | |
Operating Expenses | 25,669 | 21,618 | 70,597 | 65,989 | |
Operating Income (Loss) | 1,294 | (6,655) | 5,231 | 4,547 | |
Cinema [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 50,373 | 32,571 | 142,394 | 135,558 | |
Gross Profit | 26,963 | 14,963 | 75,828 | 70,536 | |
Research and Development Expense | 2,628 | 4,582 | 8,789 | 14,692 | |
Selling and Marketing Expense | 4,148 | 4,382 | 14,102 | 15,493 | |
General and Administrative Expense | 17,036 | 12,654 | 45,391 | 35,804 | |
Operating Expenses | 23,812 | 21,618 | 68,282 | 65,989 | |
Operating Income (Loss) | 3,151 | (6,655) | 7,546 | 4,547 | |
Consumer [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Deferred Revenue, Noncurrent | 7,500 | 7,500 | |||
Revenues | 0 | 0 | 0 | 0 | |
Gross Profit | 0 | 0 | 0 | 0 | |
Research and Development Expense | 1,479 | 0 | 1,789 | 0 | |
Selling and Marketing Expense | 355 | 0 | 503 | 0 | |
General and Administrative Expense | 23 | 0 | 23 | 0 | |
Operating Expenses | 1,857 | 0 | 2,315 | 0 | |
Operating Income (Loss) | (1,857) | 0 | (2,315) | 0 | |
Domestic Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 26,470 | $ 12,341 | |||
Domestic Segment [Member] | Cinema [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 72,265 | $ 59,413 |
Segment and geographic inform60
Segment and geographic information Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 50,373 | $ 32,571 | $ 142,394 | $ 135,558 |
Domestic Segment [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 26,470 | 12,341 | ||
CHINA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 4,650 | 4,413 | ||
Rest Of The World [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 19,253 | 15,817 | ||
Consumer [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Cinema [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 50,373 | $ 32,571 | 142,394 | 135,558 |
Cinema [Member] | Domestic Segment [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 72,265 | 59,413 | ||
Cinema [Member] | CHINA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 16,350 | 13,683 | ||
Cinema [Member] | Rest Of The World [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 53,779 | $ 62,462 |
Segment and geographic inform61
Segment and geographic information Tangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 85,992 | $ 102,842 |
Domestic Segment [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 67,014 | 87,134 |
CHINA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 11,022 | 10,185 |
Rest Of The World [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 7,956 | $ 5,523 |