Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2023 | |
Document Information [Line Items] | |
Document Type | S-1/A |
Amendment Flag | false |
Entity Registrant Name | Lionsgate Studios Corp. |
Entity Central Index Key | 0002006191 |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Address, Address Line One | 250 Howe Street, 20th Floor |
Entity Address, Address Line Two | Vancouver |
Entity Address, State or Province | BC |
Entity Address, Postal Zip Code | V6C 3R8 |
City Area Code | 877 |
Local Phone Number | 848-3866 |
Entity Incorporation, State or Country Code | Z4 |
Entity Primary SIC Number | 7812 |
Entity Tax Identification Number | 00-0000000 |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | 2700 Colorado Avenue |
Entity Address, City or Town | Santa Monica |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90404 |
City Area Code | 877 |
Local Phone Number | 848-3866 |
Contact Personnel Name | Bruce Tobey |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Current assets: | ||||||
Cash | $ 437,163 | $ 999,152 | $ 117,696 | |||
Prepaid expenses | 78,082 | 158,142 | 581,784 | |||
Total current assets | 515,245 | 1,157,294 | 699,480 | |||
Cash/investments held in Trust Account | 804,228,813 | 794,750,266 | 759,712,942 | |||
Total assets | 804,744,058 | 795,907,560 | 760,412,422 | |||
Current liabilities: | ||||||
Accounts payable and accrued expenses | 6,458,295 | 3,695,499 | 338,004 | |||
PIPE with reduction right liability | [1] | 19,399,127 | 18,253,010 | 0 | ||
Total current liabilities | 25,857,422 | 21,948,509 | 338,004 | |||
Warrant liability | 234,667 | 469,333 | 3,285,333 | |||
Deferred underwriting compensation | 8,925,000 | 26,250,000 | 26,250,000 | |||
Total liabilities | 35,017,089 | 48,667,842 | 29,873,337 | |||
Commitments and contingencies | ||||||
Class A ordinary shares subject to possible redemption; 75,000,000 and 75,000,000 shares at $10.72 and $10.60 redemption value at March 31, 2024 and December 31, 2023, respectively | 804,128,813 | 794,650,266 | 756,862,942 | |||
Shareholders' deficit: | ||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | 0 | 0 | 0 | |||
Additional paid-in capital | 0 | 0 | 0 | |||
Accumulated deficit | (34,403,719) | (47,412,423) | (26,325,732) | |||
Total shareholders' deficit | (34,401,844) | (47,410,548) | $ (26,395,037) | (26,323,857) | ||
Total liabilities and shareholders' deficit | 804,744,058 | 795,907,560 | 760,412,422 | |||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||
Current assets: | ||||||
Cash | 247,100,000 | 210,900,000 | $ 256,900,000 | |||
Accounts receivable, net | 734,100,000 | 527,000,000 | 398,600,000 | |||
Other current assets | 417,100,000 | 256,500,000 | 229,700,000 | |||
Total current assets | 1,464,800,000 | 1,152,000,000 | 1,012,000,000 | |||
Investment in films and television programs, net | 1,908,200,000 | 1,786,700,000 | 1,867,900,000 | |||
Property and equipment, net | 35,900,000 | 23,800,000 | 30,000,000 | |||
Investments | 71,500,000 | 64,700,000 | 56,000,000 | |||
Intangible assets | 26,900,000 | 26,900,000 | 32,600,000 | |||
Goodwill | 801,400,000 | 795,600,000 | 795,600,000 | |||
Other assets | 810,400,000 | 563,000,000 | 531,600,000 | |||
Total assets | 5,119,100,000 | 4,412,700,000 | 4,325,700,000 | |||
Current liabilities: | ||||||
Accounts payable | 214,100,000 | 251,100,000 | 197,000,000 | |||
Content related payables | 66,700,000 | 26,600,000 | 36,800,000 | |||
Other accrued liabilities | 263,300,000 | 215,400,000 | 167,200,000 | |||
Participations and residuals | 595,900,000 | 524,400,000 | 450,800,000 | |||
Film related obligations | 1,258,200,000 | 923,700,000 | 659,500,000 | |||
Debt—short term portion | 50,300,000 | 41,400,000 | 222,800,000 | |||
Deferred revenue | 248,000,000 | 126,200,000 | 153,000,000 | |||
Total current liabilities | 2,696,500,000 | 2,108,800,000 | 1,887,100,000 | |||
Debt | 1,542,400,000 | 1,202,200,000 | 1,236,300,000 | |||
Participations and residuals | 472,000,000 | 329,600,000 | 265,100,000 | |||
Film related obligations | 554,400,000 | 1,016,400,000 | 645,900,000 | |||
Other liabilities | 338,800,000 | 120,900,000 | 163,400,000 | |||
Deferred revenue | 81,500,000 | 52,000,000 | 49,800,000 | |||
Deferred tax liabilities | 18,800,000 | 18,100,000 | 16,400,000 | |||
Total liabilities | 5,704,400,000 | 4,848,000,000 | 4,264,000,000 | |||
Commitments and contingencies | ||||||
Redeemable noncontrolling interests | 406,200,000 | 343,600,000 | 321,200,000 | |||
Shareholders' deficit: | ||||||
Parent net investment | (1,090,500,000) | (881,900,000) | (271,500,000) | |||
Accumulated other comprehensive income | 97,200,000 | 101,500,000 | 118,000,000 | 10,200,000 | ||
Total shareholders' deficit | (993,300,000) | (780,400,000) | (261,300,000) | |||
Noncontrolling interests | 1,800,000 | 1,500,000 | 1,800,000 | |||
Total equity (deficit) | (991,500,000) | (778,900,000) | (744,300,000) | (259,500,000) | ||
Total liabilities and shareholders' deficit | 5,119,100,000 | 4,412,700,000 | 4,325,700,000 | |||
Starz Business [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||
Current assets: | ||||||
Due from Starz Business (Note 18) | 66,500,000 | $ 157,600,000 | $ 126,800,000 | |||
Common Class A [Member] | ||||||
Shareholders' deficit: | ||||||
Common Stock | 0 | 0 | 0 | |||
Common Class B [Member] | ||||||
Shareholders' deficit: | ||||||
Common Stock | $ 1,875 | $ 1,875 | $ 1,875 | |||
[1]Equity linked contract that is classified as a liability given potential for variable share settlement at close of the Business Combination. PIPE reflects common equity in the pro forma, combined company post-close of the Business Combination with StudioCo (Note 10). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 09, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 19, 2022 | Dec. 31, 2021 | Dec. 13, 2021 | Nov. 05, 2021 |
Temporary Equity, Shares Outstanding | 75,000,000 | 75,000,000 | 75,000,000 | |||||
Temporary Equity, Redemption Price Per Share | $ 10.74 | $ 10.72 | $ 10.6 | $ 10.09 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Preferred Stock, Shares Issued | 0 | 0 | 0 | 0 | ||||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 | 0 | ||||
Common Class A [Member] | ||||||||
Temporary Equity, Shares Outstanding | 75,000,000 | 75,000,000 | 75,000,000 | |||||
Temporary Equity, Redemption Price Per Share | $ 10.72 | $ 10.6 | ||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | 400,000,000 | |||||
Common Stock, Shares, Issued | 0 | 0 | 0 | 0 | ||||
Common Stock, Shares, Outstanding | 0 | 0 | 0 | 0 | ||||
Common Class B [Member] | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common Stock, Shares Authorized | 80,000,000 | 80,000,000 | 80,000,000 | |||||
Common Stock, Shares, Issued | 18,750,000 | 18,750,000 | 18,750,000 | 19 | 4,312,500 | 17,250,000 | ||
Common Stock, Shares, Outstanding | 18,750,000 | 18,750,000 | 18,750,000 | 18,750,000 | 17,250,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | ||||
Revenues: | |||||||||||||
PIPE with reduction right expense | $ 0 | $ 18,797,300 | $ 0 | ||||||||||
Expenses: | |||||||||||||
General and administrative | 5,000 | $ 3,404,845,000,000 | $ 540,513,000,000 | 5,649,682 | 1,628,308 | ||||||||
Loss from operations | (5,000) | (3,404,845) | (540,513) | (24,446,982) | (1,628,308) | ||||||||
Other income (expense): | |||||||||||||
Interest from investments held in Trust Account | 0 | 9,478,547 | 8,079,826 | 37,787,325 | 9,962,942 | ||||||||
Allocation of offering costs to warrant liability | 0 | 0 | (20,182) | ||||||||||
Change in fair value of warrant liability | 0 | 234,666 | 469,333 | 2,816,000 | 14,197,333 | ||||||||
Change in fair value of PIPE with reduction right liability | 0 | (1,146,117) | 0 | 544,290 | 0 | ||||||||
Loss on extinguishment of debt | $ 0 | $ 1,300,000 | |||||||||||
Net income (loss) | (5,000) | 16,700,633 | 22,511,785 | ||||||||||
Net income | $ (5,000) | 5,162,251 | 8,008,646 | 16,700,633 | 22,511,785 | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenue | 2,106,300,000 | 2,260,200,000 | $ 3,083,800,000 | $ 2,716,300,000 | $ 1,912,900,000 | ||||||||
Expenses: | |||||||||||||
Direct operating | 1,306,000,000 | 1,687,900,000 | 2,207,900,000 | 1,922,100,000 | 1,220,000,000 | ||||||||
Distribution and marketing | 346,000,000 | 189,000,000 | 304,200,000 | 315,200,000 | 216,700,000 | ||||||||
General and administrative | 261,600,000 | 242,400,000 | 387,000,000 | 342,700,000 | 342,000,000 | ||||||||
Depreciation and amortization | 11,100,000 | 13,200,000 | 17,900,000 | 18,100,000 | 17,200,000 | ||||||||
Restructuring and other | 61,500,000 | 20,600,000 | 27,200,000 | 6,300,000 | 21,100,000 | ||||||||
Total expenses | 1,986,200,000 | 2,153,100,000 | 2,944,200,000 | 2,604,400,000 | 1,817,000,000 | ||||||||
Loss from operations | 120,100,000 | 107,100,000 | 139,600,000 | 111,900,000 | 95,900,000 | ||||||||
Other income (expense): | |||||||||||||
Interest expense | (157,100,000) | (117,800,000) | (162,600,000) | (115,000,000) | (109,700,000) | ||||||||
Interest and other income | 6,900,000 | 4,900,000 | 6,400,000 | 28,000,000 | 6,100,000 | ||||||||
Other expense | (14,300,000) | (17,200,000) | (21,200,000) | (8,600,000) | (4,700,000) | ||||||||
Loss on extinguishment of debt | 0 | (1,300,000) | (1,300,000) | (3,400,000) | 0 | ||||||||
Gain on investments, net | 2,700,000 | 42,100,000 | 44,000,000 | 1,300,000 | 600,000 | ||||||||
Equity interests income (loss) | 5,700,000 | 800,000 | 500,000 | (3,000,000) | (6,100,000) | ||||||||
Income (loss) before income taxes | (36,000,000) | 18,600,000 | 5,400,000 | 11,200,000 | (17,900,000) | ||||||||
Income tax provision | (16,700,000) | (5,200,000) | (14,300,000) | (17,300,000) | (17,300,000) | ||||||||
Net income (loss) | (52,700,000) | 13,400,000 | (8,900,000) | (6,100,000) | (35,200,000) | ||||||||
Less: Net loss attributable to noncontrolling interests | 6,200,000 | 7,300,000 | 8,600,000 | 17,200,000 | 15,600,000 | ||||||||
Net income | (46,500,000) | 20,700,000 | (300,000) | 11,100,000 | (19,600,000) | ||||||||
Related Party [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenue | 422,100,000 | 648,600,000 | 775,500,000 | 648,200,000 | 204,100,000 | ||||||||
Expenses: | |||||||||||||
Direct operating | 8,300,000 | 6,500,000 | 10,800,000 | ||||||||||
Distribution and marketing | 400,000 | 200,000 | 200,000 | ||||||||||
Other income (expense): | |||||||||||||
Interest and other income | 0 | 3,000,000 | 2,900,000 | ||||||||||
Nonrelated Party [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||||||
Revenues: | |||||||||||||
Revenue | $ 1,684,200,000 | $ 1,611,600,000 | $ 2,308,300,000 | $ 2,068,100,000 | $ 1,708,800,000 | ||||||||
Common Class A [Member] | |||||||||||||
Other income (expense): | |||||||||||||
Net income | $ 4,129,801 | $ 6,406,917 | $ 13,360,506 | $ 17,918,827 | |||||||||
Weighted average number of ordinary shares | 0 | 75,000,000 | 75,000,000 | 75,000,000 | 73,150,685 | ||||||||
Basic net income per ordinary share | $ 0 | $ 0.06 | $ 0.09 | $ 0.18 | $ 0.24 | ||||||||
Diluted net income per ordinary share | $ 0 | $ 0.06 | $ 0.09 | $ 0.18 | $ 0.24 | ||||||||
Common Class B [Member] | |||||||||||||
Other income (expense): | |||||||||||||
Net income | $ (5,000) | $ 1,032,450 | $ 1,601,729 | $ 3,340,127 | $ 4,592,958 | ||||||||
Weighted average number of ordinary shares | 18,750,000 | [1] | 18,750,000 | 18,750,000 | 18,750,000 | [1] | 18,750,000 | [1] | |||||
Basic net income per ordinary share | $ 0 | $ 0.06 | $ 0.09 | $ 0.18 | $ 0.24 | ||||||||
Diluted net income per ordinary share | $ 0 | $ 0.06 | $ 0.09 | $ 0.18 | $ 0.24 | ||||||||
[1]Shares have been retroactively adjusted to reflect the issuance of 4,312,500 Class B ordinary shares in a share recapitalization on December 13, 2021 and the surrender of 2,812,500 Class B ordinary shares for no consideration on February 19, 2022 (Note 5). |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - Common Class B [Member] - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 19, 2022 | Dec. 31, 2021 | Dec. 13, 2021 | Nov. 05, 2021 |
Common Stock, Shares, Issued | 18,750,000 | 18,750,000 | 18,750,000 | 19 | 4,312,500 | 17,250,000 | |
Common Stock, Shares, surrender | 2,812,500 | 2,022 | |||||
Common Stock, shares surrender, value | $ 0 | $ 13 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Net Income (loss) | $ (52,700,000) | $ 13,400,000 | $ (8,900,000) | $ (6,100,000) | $ (35,200,000) |
Foreign currency translation adjustments, net of tax | 1,800,000 | (3,700,000) | (2,200,000) | (4,600,000) | 4,500,000 |
Net unrealized gain (loss) on cash flow hedges, net of tax | (6,100,000) | 111,500,000 | 93,500,000 | 117,200,000 | 119,000,000 |
Comprehensive income (loss) | (57,000,000) | 121,200,000 | 82,400,000 | 106,500,000 | 88,300,000 |
Less: Comprehensive loss attributable to noncontrolling interest | 6,200,000 | 7,300,000 | 8,600,000 | 17,200,000 | 15,600,000 |
Comprehensive income (loss) attributable to Parent | $ (50,800,000) | $ 128,500,000 | $ 91,000,000 | $ 123,700,000 | $ 103,900,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Shareholders' Deficit - USD ($) | Total | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] Parent Company [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Parent Net Investment [Member] STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] Parent Company [Member] | Accumulated Other Comprehensive Income (Loss) [Member] STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] Parent Company [Member] | Non-controlling Interests (a) [Member] STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Common Class A [Member] | Common Class A [Member] Ordinary Shares [Member] | Common Class B [Member] | Common Class B [Member] Ordinary Shares [Member] | ||
Beginning balance, Amount at Mar. 31, 2020 | $ (465,900,000) | $ (467,900,000) | $ (242,000,000) | $ (225,900,000) | $ 2,000,000 | [1] | ||||||||
Net transfers to/from parent | 174,200,000 | 174,200,000 | 174,200,000 | |||||||||||
Noncontrolling interests | (600,000) | (600,000) | [1] | |||||||||||
Redeemable noncontrolling interests adjustment to redemption value | (47,100,000) | (47,100,000) | (47,100,000) | |||||||||||
Other comprehensive income (loss) | 123,500,000 | 123,500,000 | 123,500,000 | |||||||||||
Net income | (19,600,000) | (19,600,000) | (19,600,000) | 200,000 | [1] | |||||||||
Ending balance, Amount at Mar. 31, 2021 | (235,300,000) | (236,900,000) | (134,500,000) | (102,400,000) | 1,600,000 | [1] | ||||||||
Net transfers to/from parent | (49,500,000) | (49,500,000) | (49,500,000) | |||||||||||
Noncontrolling interests | (300,000) | (300,000) | [1] | |||||||||||
Redeemable noncontrolling interests adjustment to redemption value | (98,600,000) | (98,600,000) | (98,600,000) | |||||||||||
Other comprehensive income (loss) | 112,600,000 | 112,600,000 | 112,600,000 | |||||||||||
Net income | 11,100,000 | 11,100,000 | 11,100,000 | 500,000 | [1] | |||||||||
Ending balance, Amount at Mar. 31, 2022 | (261,300,000) | |||||||||||||
Ending balance, Amount at Mar. 31, 2022 | (259,500,000) | (261,300,000) | (271,500,000) | 10,200,000 | 1,800,000 | [1],[2] | ||||||||
Beginning balance, Shares at Nov. 02, 2021 | 0 | 0 | ||||||||||||
Beginning balance, Amount at Nov. 02, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||
Stock issued during period Value | [3] | 25,000 | 22,844 | $ 2,156 | ||||||||||
Stock issued during period shares | [3] | 21,562,500 | ||||||||||||
Net income | (5,000) | (5,000) | $ (5,000) | |||||||||||
Ending balance, Shares at Dec. 31, 2021 | 0 | 21,562,500 | ||||||||||||
Ending balance, Amount at Dec. 31, 2021 | 20,000 | 22,844 | (5,000) | $ 0 | $ 2,156 | |||||||||
Forfeiture of Class B shares, Shares | [4] | (2,812,500) | ||||||||||||
Forfeiture of Class B shares, Amount | [4] | 281 | $ (281) | |||||||||||
Cash received in excess of fair value of private warrants | 117,334 | 117,334 | ||||||||||||
Fair value of public warrants at issuance | 36,750,000 | 36,750,000 | ||||||||||||
Accretion of Class A ordinary shares subject to possible redemption | (85,722,976) | (36,890,459) | (48,832,517) | |||||||||||
Net income | 22,511,785 | 22,511,785 | $ 17,918,827 | 4,592,958 | ||||||||||
Ending balance, Shares at Dec. 31, 2022 | 0 | 18,750,000 | ||||||||||||
Ending balance, Amount at Dec. 31, 2022 | (26,323,857) | 0 | (26,325,732) | $ 0 | $ 1,875 | |||||||||
Ending balance, Amount at Dec. 31, 2022 | (744,300,000) | (745,500,000) | (863,500,000) | 118,000,000 | 1,200,000 | [2] | ||||||||
Beginning balance, Amount at Mar. 31, 2022 | (261,300,000) | |||||||||||||
Beginning balance, Amount at Mar. 31, 2022 | (259,500,000) | (261,300,000) | (271,500,000) | 10,200,000 | 1,800,000 | [1],[2] | ||||||||
Net transfers to/from parent | (577,900,000) | (577,900,000) | (577,900,000) | |||||||||||
Noncontrolling interests | (700,000) | (700,000) | [2] | |||||||||||
Redeemable noncontrolling interests adjustment to redemption value | (34,800,000) | (34,800,000) | (34,800,000) | |||||||||||
Other comprehensive income (loss) | 107,800,000 | 107,800,000 | 107,800,000 | |||||||||||
Net income | 20,700,000 | 20,700,000 | 20,700,000 | 100,000 | [2] | |||||||||
Ending balance, Shares at Dec. 31, 2022 | 0 | 18,750,000 | ||||||||||||
Ending balance, Amount at Dec. 31, 2022 | (26,323,857) | 0 | (26,325,732) | $ 0 | $ 1,875 | |||||||||
Ending balance, Amount at Dec. 31, 2022 | (744,300,000) | (745,500,000) | (863,500,000) | 118,000,000 | 1,200,000 | [2] | ||||||||
Beginning balance, Amount at Mar. 31, 2022 | (261,300,000) | |||||||||||||
Beginning balance, Amount at Mar. 31, 2022 | (259,500,000) | (261,300,000) | (271,500,000) | 10,200,000 | 1,800,000 | [1],[2] | ||||||||
Net transfers to/from parent | (550,400,000) | (550,400,000) | (550,400,000) | |||||||||||
Noncontrolling interests | (900,000) | (900,000) | [1] | |||||||||||
Redeemable noncontrolling interests adjustment to redemption value | (59,700,000) | (59,700,000) | (59,700,000) | |||||||||||
Other comprehensive income (loss) | 91,300,000 | 91,300,000 | 91,300,000 | |||||||||||
Net income | (300,000) | (300,000) | (300,000) | 600,000 | [1] | |||||||||
Ending balance, Shares at Mar. 31, 2023 | 0 | 18,750,000 | ||||||||||||
Ending balance, Amount at Mar. 31, 2023 | (26,395,037) | (780,400,000) | 0 | (26,396,912) | $ 0 | $ 1,875 | ||||||||
Ending balance, Amount at Mar. 31, 2023 | (778,900,000) | (780,400,000) | (881,900,000) | 101,500,000 | 1,500,000 | [1],[2] | ||||||||
Beginning balance, Shares at Dec. 31, 2022 | 0 | 18,750,000 | ||||||||||||
Beginning balance, Amount at Dec. 31, 2022 | (26,323,857) | 0 | (26,325,732) | $ 0 | $ 1,875 | |||||||||
Beginning balance, Amount at Dec. 31, 2022 | (744,300,000) | (745,500,000) | (863,500,000) | 118,000,000 | 1,200,000 | [2] | ||||||||
Accretion of Class A ordinary shares subject to possible redemption | (8,079,826) | 0 | (8,079,826) | |||||||||||
Net income | 8,008,646 | 8,008,646 | 6,406,917 | 1,601,729 | ||||||||||
Ending balance, Shares at Mar. 31, 2023 | 0 | 18,750,000 | ||||||||||||
Ending balance, Amount at Mar. 31, 2023 | (26,395,037) | (780,400,000) | 0 | (26,396,912) | $ 0 | $ 1,875 | ||||||||
Ending balance, Amount at Mar. 31, 2023 | (778,900,000) | (780,400,000) | (881,900,000) | 101,500,000 | 1,500,000 | [1],[2] | ||||||||
Beginning balance, Shares at Dec. 31, 2022 | 0 | 18,750,000 | ||||||||||||
Beginning balance, Amount at Dec. 31, 2022 | (26,323,857) | 0 | (26,325,732) | $ 0 | $ 1,875 | |||||||||
Beginning balance, Amount at Dec. 31, 2022 | (744,300,000) | (745,500,000) | (863,500,000) | 118,000,000 | 1,200,000 | [2] | ||||||||
Accretion of Class A ordinary shares subject to possible redemption | (37,787,324) | (37,787,324) | ||||||||||||
Net income | 16,700,633 | 16,700,633 | 13,360,506 | 3,340,127 | ||||||||||
Ending balance, Shares at Dec. 31, 2023 | 0 | 18,750,000 | ||||||||||||
Ending balance, Amount at Dec. 31, 2023 | (47,410,548) | (993,300,000) | 0 | (47,412,423) | $ 0 | $ 1,875 | ||||||||
Ending balance, Amount at Dec. 31, 2023 | (991,500,000) | (993,300,000) | (1,090,500,000) | 97,200,000 | 1,800,000 | [2] | ||||||||
Beginning balance, Shares at Mar. 31, 2023 | 0 | 18,750,000 | ||||||||||||
Beginning balance, Amount at Mar. 31, 2023 | (26,395,037) | (780,400,000) | 0 | (26,396,912) | $ 0 | $ 1,875 | ||||||||
Beginning balance, Amount at Mar. 31, 2023 | (778,900,000) | (780,400,000) | (881,900,000) | 101,500,000 | 1,500,000 | [1],[2] | ||||||||
Net transfers to/from parent | (90,600,000) | (90,600,000) | (90,600,000) | |||||||||||
Noncontrolling interests | (800,000) | (800,000) | [2] | |||||||||||
Redeemable noncontrolling interests adjustment to redemption value | (71,500,000) | (71,500,000) | (71,500,000) | |||||||||||
Other comprehensive income (loss) | (4,300,000) | (4,300,000) | (4,300,000) | |||||||||||
Net income | (46,500,000) | (46,500,000) | (46,500,000) | 1,100,000 | [2] | |||||||||
Ending balance, Shares at Dec. 31, 2023 | 0 | 18,750,000 | ||||||||||||
Ending balance, Amount at Dec. 31, 2023 | (47,410,548) | (993,300,000) | 0 | (47,412,423) | $ 0 | $ 1,875 | ||||||||
Ending balance, Amount at Dec. 31, 2023 | $ (991,500,000) | $ (993,300,000) | $ (1,090,500,000) | $ 97,200,000 | $ 1,800,000 | [2] | ||||||||
Waiver of offering costs allocated to Class A ordinary shares subject to possible redemption | 17,325,000 | 17,325,000 | ||||||||||||
Accretion of Class A ordinary shares subject to possible redemption | (9,478,547) | (9,478,547) | ||||||||||||
Net income | 5,162,251 | 5,162,251 | $ 4,129,801 | $ 1,032,450 | ||||||||||
Ending balance, Shares at Mar. 31, 2024 | 0 | 18,750,000 | ||||||||||||
Ending balance, Amount at Mar. 31, 2024 | $ (34,401,844) | $ 0 | $ (34,403,719) | $ 0 | $ 1,875 | |||||||||
[1]Excludes redeemable noncontrolling interests, which are reflected in temporary equity (see Note 11).[2]Excludes redeemable noncontrolling interests, which are reflected in temporary equity (see Note 9).[3]Reflects the issuance of 4,312,500 Class B ordinary shares in a share recapitalization on December 13, 2021 (Note 5).[4]Reflects the surrender of 2,812,500 of Class B ordinary shares for no consideration on February 19, 2022 (Note 5). |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Shareholders' Deficit (Parenthetical) - Common Class B [Member] - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Feb. 19, 2022 | Dec. 31, 2021 | Dec. 13, 2021 | Nov. 05, 2021 |
Common Stock, Shares, Issued | 18,750,000 | 18,750,000 | 18,750,000 | 19 | 4,312,500 | 17,250,000 | |
Common Stock, shares, surrender | 2,812,500 | 2,022 | |||||
Common Stock, shares surrender, value | $ 0 | $ 13 | |||||
Common Stock [Member] | |||||||
Sale of Stock, Price Per Share | $ 0.0014 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||||||||||
Net Income (loss) | $ (5,000) | $ 16,700,633 | $ 22,511,785 | |||||||
Net income | (5,000) | $ 5,162,251 | $ 8,008,646 | 16,700,633 | 22,511,785 | |||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||
Formation expenses paid by sponsor in exchange for Class B ordinary shares | 5,000 | 0 | 0 | |||||||
Interest income from investments held in Trust Account | 0 | (9,478,547) | (8,079,826) | (37,787,325) | (9,962,942) | |||||
Change in fair value of warrant liability | 0 | (234,666) | (469,333) | (2,816,000) | (14,197,333) | |||||
Change in fair value of PIPE with reduction right liability | 0 | 1,146,117 | 0 | (544,290) | 0 | |||||
PIPE with reduction right expense | 0 | 18,797,300 | 0 | |||||||
Warrant issuance transaction costs | 0 | 0 | 20,182 | |||||||
Loss on extinguishment of debt | $ 0 | $ (1,300,000) | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Prepaid expenses | 0 | 80,060 | 82,583 | 423,643 | (581,784) | |||||
Accounts payable and accrued expenses | 0 | 2,762,796 | 162,754 | 3,357,495 | 338,004 | |||||
Net cash used in operating activities | 0 | (561,989) | (295,176) | (1,868,544) | (1,872,088) | |||||
Cash flows from investing activities: | ||||||||||
Principal deposited in Trust Account | 0 | 0 | (750,000,000) | |||||||
Cash withdrawn from Trust Account for working capital | 0 | 0 | 250,000 | 2,750,000 | 250,000 | |||||
Net cash provided by investing activities | 0 | 0 | 250,000 | 2,750,000 | (749,750,000) | |||||
Cash flows from financing activities: | ||||||||||
Proceeds from private placement of warrants | 0 | 0 | 17,600,000 | |||||||
Proceeds from sale of units in initial public offering | 0 | 0 | 750,000,000 | |||||||
Payment of underwriters' discount | 0 | 0 | (15,000,000) | |||||||
Payment of offering costs | 0 | 0 | (545,679) | |||||||
Repayment of advances from Sponsor | 0 | 0 | (14,537) | |||||||
Repayment of promissory note - related party | 0 | 0 | (300,000) | |||||||
Net cash provided by financing activities | 0 | 0 | 751,739,784 | |||||||
Net change in cash | 0 | (561,989) | (45,176) | 881,456 | 117,696 | |||||
Cash at beginning of period | 0 | 999,152 | 117,696 | 72,520 | 117,696 | 0 | ||||
Cash at end of period | 0 | 437,163 | 72,520 | 999,152 | 117,696 | 999,152 | $ 72,520 | 117,696 | ||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||
Deferred underwriting fee payable | 0 | 0 | 26,250,000 | |||||||
Forfeiture of Class B shares for no consideration | 0 | 0 | 281 | |||||||
Offering costs paid by Sponsor in exchange for Class B ordinary shares | 20,000 | |||||||||
Deferred offering costs paid through Advance from Sponsor | 14,537 | |||||||||
Deferred offering costs paid through Promissory Note—Related Party | 300,000 | |||||||||
Deferred offering costs included in accrued expenses | $ 453,401 | |||||||||
Waiver of portion of deferred underwriting fee payable for no consideration | 17,325,000 | 0 | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||||||
Cash flows from operating activities: | ||||||||||
Net Income (loss) | (52,700,000) | 13,400,000 | (8,900,000) | $ (6,100,000) | $ (35,200,000) | |||||
Net income | (46,500,000) | 20,700,000 | (300,000) | 11,100,000 | (19,600,000) | |||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||
Depreciation and amortization | 11,100,000 | 13,200,000 | 17,900,000 | 18,100,000 | 17,200,000 | |||||
Amortization of films and television programs | 948,100,000 | 1,295,600,000 | 1,649,300,000 | 1,497,500,000 | 746,000,000 | |||||
Other impairments | 5,900,000 | |||||||||
Content and other impairments | 0 | 5,900,000 | ||||||||
Amortization of debt financing costs and other non-cash interest | 19,600,000 | 17,100,000 | 21,800,000 | 46,500,000 | 41,000,000 | |||||
Non-cash share-based compensation | 53,600,000 | 42,200,000 | 73,400,000 | 70,200,000 | 58,000,000 | |||||
Other amortization | 29,300,000 | 48,800,000 | 59,900,000 | 82,500,000 | 67,300,000 | |||||
Loss on extinguishment of debt | 0 | 1,300,000 | 1,300,000 | 3,400,000 | 0 | |||||
Equity interests income (loss) | (5,700,000) | (800,000) | (500,000) | 3,000,000 | 6,100,000 | |||||
Gain on investments, net | (2,700,000) | (42,100,000) | (44,000,000) | (1,300,000) | (600,000) | |||||
Deferred income taxes | 700,000 | 100,000 | 1,600,000 | 1,200,000 | 1,900,000 | |||||
Changes in operating assets and liabilities: | ||||||||||
Accounts payable and accrued expenses | (86,900,000) | (7,600,000) | 57,400,000 | (40,600,000) | (64,900,000) | |||||
Proceeds from the termination of interest rate swaps | 0 | 188,700,000 | 188,700,000 | |||||||
Accounts receivable, net | 58,300,000 | (25,900,000) | (136,700,000) | (33,000,000) | 156,900,000 | |||||
Investment in films and television programs, net | (700,800,000) | (1,255,000,000) | (1,568,400,000) | (1,750,100,000) | (1,181,900,000) | |||||
Other assets | (14,600,000) | (54,700,000) | (44,900,000) | (207,000,000) | (15,200,000) | |||||
Participations and residuals | 10,100,000 | 78,100,000 | 138,300,000 | (73,400,000) | (53,400,000) | |||||
Content related payables | 1,700,000 | 6,400,000 | (10,700,000) | 4,000,000 | (9,200,000) | |||||
Deferred revenue | 41,300,000 | (7,800,000) | (24,500,000) | (4,800,000) | 38,400,000 | |||||
Due from Starz Business | 91,100,000 | (29,200,000) | (30,800,000) | (45,100,000) | (4,800,000) | |||||
Net cash used in operating activities | 401,500,000 | 287,700,000 | 346,100,000 | (435,000,000) | (232,400,000) | |||||
Cash flows from investing activities: | ||||||||||
Purchase of eOne, net of cash acquired (see Note 2) | (331,100,000) | 0 | ||||||||
Proceeds from the sale of equity method and other investments | 5,200,000 | 46,300,000 | 46,300,000 | 1,500,000 | 5,100,000 | |||||
Investment in equity method investees and other | (11,300,000) | (17,500,000) | (17,500,000) | (14,000,000) | (200,000) | |||||
Distributions from equity method investees and other | 1,900,000 | 7,200,000 | ||||||||
Acquisition of assets (film library and related assets) | (161,400,000) | |||||||||
Increase in loans receivable | (3,600,000) | 0 | (4,300,000) | |||||||
Purchases of accounts receivables held for collateral | (85,600,000) | (135,400,000) | (183,700,000) | (172,900,000) | (212,500,000) | |||||
Receipts of accounts receivables held for collateral | 105,700,000 | 140,500,000 | 190,800,000 | 169,300,000 | 217,500,000 | |||||
Capital expenditures | (5,100,000) | (4,500,000) | (6,500,000) | (6,100,000) | (10,200,000) | |||||
Net cash provided by investing activities | (325,800,000) | 29,400,000 | 31,300,000 | (180,700,000) | (300,000) | |||||
Cash flows from financing activities: | ||||||||||
Debt—borrowings, net of debt issuance and redemption costs | 2,270,500,000 | 1,238,000,000 | 1,523,000,000 | 1,494,300,000 | 200,000,000 | |||||
Debt—repurchases and repayments | (1,926,000,000) | (1,452,100,000) | (1,745,800,000) | (1,629,500,000) | (265,000,000) | |||||
Film related obligations—borrowings | 1,072,900,000 | 1,330,200,000 | 1,584,700,000 | 1,083,000,000 | 392,500,000 | |||||
Film related obligations—repayments | (1,317,700,000) | (599,500,000) | (956,500,000) | (272,600,000) | (53,000,000) | |||||
Settlement of financing component of interest rate swaps | 0 | (134,500,000) | ||||||||
Financing component of interest rate swaps | (134,500,000) | (28,500,000) | (22,300,000) | |||||||
Purchase of noncontrolling interest | (600,000) | 0 | (36,500,000) | |||||||
Distributions to noncontrolling interest | (1,700,000) | (4,800,000) | (7,600,000) | (1,500,000) | (3,400,000) | |||||
Parent net investment | (127,600,000) | (620,100,000) | (621,300,000) | (119,700,000) | 116,200,000 | |||||
Net cash provided by financing activities | (30,200,000) | (242,800,000) | (394,500,000) | 525,500,000 | 365,000,000 | |||||
Net Change In Cash, Cash Equivalents and Restricted Cash | 45,500,000 | 74,300,000 | (17,100,000) | (90,200,000) | 132,300,000 | |||||
Net change in cash | 500,000 | (3,500,000) | (1,800,000) | (800,000) | 4,200,000 | |||||
Cash at beginning of period | $ 297,400,000 | 341,100,000 | 251,400,000 | 270,300,000 | 341,100,000 | 270,300,000 | 361,300,000 | 224,800,000 | ||
Cash at end of period | $ 251,400,000 | $ 297,400,000 | $ 341,100,000 | $ 297,400,000 | $ 251,400,000 | $ 341,100,000 | $ 270,300,000 | $ 361,300,000 |
Organization and Plan of Busine
Organization and Plan of Business Operations | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization and Plan of Business Operations | NOTE 1-ORGANIZATION Screaming Eagle Acquisition Corp. (the “Company”) is a blank check company incorporated as a Cayman Islands exempted company on November 3, 2021. The Company was formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (“Business Combination”). Although the Company is not limited to a particular industry or geographic region for purposes of completing a Business Combination, the Company intends to capitalize on the ability of its management team to identify and combine with a business or businesses that can benefit from its management team’s established global relationships and operating experience. The Company is an early stage company, and, as such, the Company is subject to all of the risks associated with early stage companies. As of March 31, 2024, the Company had not commenced any operations. All activity for the period from November 3, 2021 (inception) through March 31, 2024 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), which is described below and activities related to pursuing merger opportunities. The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company generates non-operating The registration statement for the Company’s Initial Public Offering was declared effective on January 5, 2022. On January 10, 2022, the Company consummated its Initial Public Offering of 75,000,000 units (the “Units”). Each Unit consists of one Class A ordinary share of the Company, par value $0.0001 per share (the “Class A Ordinary Shares” or “Public Shares”), and one-third Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 11,733,333 warrants (the “private placement warrants”) at a price of $1.50 per private placement warrant to the Eagle Equity Partners V, LLC (the “Sponsor”), generating gross proceeds of $17,600,000 (the “Private Placement”), which is described in Note 4. Transaction costs amounted to $42,130,216, consisting of $15,000,000 of underwriting fees, $26,250,000 of deferred underwriting fees and $880,216 of other offering costs. Following the closing of the Initial Public Offering and the Private Placement, $ 750,000,000 ($ 10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and certain proceeds from the sale of the private placement warrants was placed in a trust account (the “Trust Account”). The proceeds held in the Trust Account were invested in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act of 1940, as amended (the “Investment Company Act”), which invest only in direct U.S. government treasury obligations. On January 26, 2024, the Company amended the trust agreement governing the Trust Account to permit Continental Stock Transfer & Trust Company (the “Trustee ”) the Trust Account, the remaining proceeds from the initial public offering and the sale of the private placement warrants are no longer invested in U.S. government securities or money market funds. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of the private placement warrants, although substantially all of the net proceeds are intended to be applied generally toward completing a Business Combination. The Company must complete one or more Business Combinations with having an aggregate fair market value equal to at least 80% of the net assets held in the Trust Account (as defined below) (excluding the deferred underwriting commissions and taxes payable on the income earned on the Trust Account) at the time of the agreement to enter into the initial Business Combination. The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the issued and outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to successfully effect a Business Combination. The Company will provide its shareholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a general meeting called to approve the Business Combination or (ii) without a shareholder vote by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a Business Combination or conduct a tender offer will be made by the Company. The shareholders will be entitled to redeem their shares for a pro rata portion of the amount held in the Trust Account (which, as of March 31, 2024, was approximately $ 10.72 per share), calculated as of two business days prior to the completion of a Business Combination, including any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to fund its working capital requirements (subject to an aggregate limit of $ 3,000,000 ) and to pay its tax obligations. There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Class A Ordinary Shares will be recorded at redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with Accounting Standards Codification (“ASC”) Topic 480, “Distinguishing Liabilities from Equity.” If the Company seeks shareholder approval, the Company will complete a Business Combination only if it receives an ordinary resolution under Cayman Islands law approving a Business Combination, which requires the affirmative vote of a majority of the Company’s ordinary shares which are represented in person or by proxy and are voted at a general meeting of the Company. If a shareholder vote is not required under applicable law or stock exchange listing requirements and the Company does not decide to hold a shareholder vote for business or other reasons, the Company will, pursuant to its Articles (as defined below), conduct the redemptions pursuant to the tender offer rules of the Securities and Exchange Commission (“SEC”), and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination. If the Company seeks shareholder approval in connection with a Business Combination, the Sponsor has agreed to vote its Founder Shares (as defined in Note 5) and any Public Shares purchased in or after the Initial Public Offering in favor of approving a Business Combination and to waive its redemption rights with respect to any such shares in connection with a shareholder vote to approve a Business Combination. Additionally, each public shareholder may elect to redeem its Public Shares, without voting, and if they do vote, irrespective of whether they vote for or against a proposed Business Combination. Notwithstanding the foregoing, if the Company seeks shareholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Articles provide that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 20% of the Public Shares without the Company’s prior written consent. The Sponsor and the Company’s officers and directors have agreed (a) to waive its redemption rights with respect to any Founder Shares and Public Shares held by it in connection with the completion of a Business Combination and (b) not to propose an amendment to the Articles (i) to modify the substance or timing of the Company’s obligation to redeem % of the Public Shares if the Company does not complete a Business Combination within the Completion Window (as defined below) or (ii) with respect to any other provision relating to shareholders’ rights or pre-initial Under the Articles, the Company has until June 15, 2024, to close its initial Business Combination (the “Completion Window”). If the Company is unable to complete a Business Combination within the Completion Window, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but no more than 10 business days thereafter, redeem 100% of the outstanding Public Shares, at a per-share The Sponsor and the Company’s officers and directors have agreed to waive its liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Completion Window. However, if the Sponsor acquires Public Shares in or after the Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Completion Window. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 7) held in the Trust Account in the event the Company does not complete a Business Combination within the Completion Window and, in such event, such amounts will be included with the funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than the Initial Public Offering price per Unit ($10.00). The Sponsor has agreed that it will be liable to the Company, if and to the extent any claims by a third party for services rendered or products sold to the Company, or by a prospective target business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or business combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (1) $ per Public Share and (2) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $ per Public Share due to reductions in the value of trust assets, less taxes payable. This liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account nor will it apply to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (other than the Company’s independent registered public accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Subsidiaries In connection with the Lionsgate Business Combination (as defined below) with Lions Gate Entertainment Corp., a British Columbia company (“Lions Gate Parent”), the Company formed SEAC II Corp. (“New SEAC”), a Cayman Islands exempted company and 1455941 B.C. Unlimited Liability Company (“New BC Sub”), a British Columbia unlimited liability company, both of which are direct, wholly owned subsidiaries of the Company. In addition, the Company formed SEAC MergerCo (“MergerCo”) a Cayman Islands exempted company and a direct, wholly owned subsidiary of New SEAC. New SEAC, New BC Sub, and MergerCo did not have any activity as of March 31, 2024, and they have not engaged in any operations or generated operating revenues to date. Business Combination with LG Orion Holdings ULC On December 22, 2023, the Company, New SEAC, Lions Gate Parent, LG Sirius Holdings ULC, a British Columbia unlimited liability company and a wholly owned subsidiary of Lions Gate Parent (“Studio HoldCo”), LG Orion Holdings ULC, a British Columbia unlimited liability company and a wholly owned subsidiary of Lions Gate Parent (“StudioCo”), MergerCo and New BC Sub, entered into the Business Combination Agreement, pursuant to which, among other things and subject to the terms and conditions contained in the Business Combination Agreement (as amended on April 11, 2024 and as may be amended, supplemented or otherwise modified from time to time, the “Business Combination Agreement”) and the plan of arrangement (the “Plan of Arrangement”), (i) SEAC will merge with and into MergerCo (the “SEAC Merger”) with MergerCo surviving the SEAC Merger as a direct, wholly-owned subsidiary of New SEAC (the resulting entity referred to herein as MergerCo or, where specified, the “SEAC Merger Surviving Company”), (ii) SEAC Merger Surviving Company will distribute all of its assets lawfully available for distribution to New SEAC by way of a cash dividend, (iii) SEAC Merger Surviving Company will transfer by way of continuation from the Cayman Islands to British Columbia in accordance with the Cayman Islands Companies Act (as revised) (the “Companies Act”) and the Business Corporations Act (British Columbia) (the “BC Act”) and convert to a British Columbia unlimited liability company in accordance with the applicable provisions of the BC Act, (iv) New SEAC will transfer by way of continuation from the Cayman Islands to British Columbia in accordance with the Companies Act and the BC Act and continue as a British Columbia company in accordance with the applicable provisions of the BC Act, and (v) pursuant to an arrangement under Division 5 of Part 9 of the BC Act (the “Arrangement”) on the terms and subject to the conditions set forth in the Plan of Arrangement, (A) SEAC Merger Surviving Company and New BC Sub will amalgamate (the “MergerCo Amalgamation”) to form one corporate entity (“MergerCo Amalco”), in accordance with the terms of, and with the attributes and effects set out in, the Plan of Arrangement, (B) New SEAC and MergerCo Amalco will amalgamate (the “SEAC Amalgamation”) to form one corporate entity (“SEAC Amalco”), in accordance with the terms of, and with the attributes and effects set out in, the Plan of Arrangement and (C) StudioCo and SEAC Amalco will amalgamate (the “StudioCo Amalgamation” and together with the MergerCo Amalgamation and the SEAC Amalgamation, the “Amalgamations”) to form one corporate entity (“Pubco”), in accordance with the terms of, and with the attributes and effects set out in, the Plan of Arrangement. The Arrangement is subject to the approval by the Supreme Court of British Columbia under the BC Act. The transaction contemplated by the Business Combination Agreement, the Plan of Arrangement and all other agreements, certificates and instruments entered into in connection therewith, are referred to herein as the “Lionsgate Business Combination.” Extension On April 9, 2024, the Company held an extraordinary general meeting of its shareholders (the “Extension Meeting”), at which the Company received approval to amend its Amended and Restated Memorandum and Articles of Association (as amended, the “Articles”) to, among other things, extend the date by which the Company must consummate a Business Combination from April 10, 2024 to June 15, 2024. In connection with the Extension Meeting, holders of 57,824,777 Public Shares properly exercised their right to redeem such shares for cash at a redemption price of approximately $10.74 per share, representing an aggregate of approximately $620.8 million. After the satisfaction of such redemptions, the balance in the Trust Account was approximately $184.4 million. Liquidity and Going Concern As of March 31, 2024, the Company had an unrestricted cash balance of $ , cash held in the Trust Account of $ and a working capital . The Company’s liquidity needs had been satisfied prior to the completion of the Initial Public Offering through receipt of a $ capital contribution from the Sponsor in exchange for the issuance of the Founder Shares and a $ loan from the Sponsor, which was paid in full on January 11, 2022. The Company’s working capital needs have been satisfied through the funds held outside of the Trust Account from the Initial Public Offering. In addition, the Company withdrew interest earned on Trust Account to fund the Company’s working capital requirements (subject to an aggregate maximum release of , which was reached as of December 31, 2023). The Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required. Up to $ of such loans may be convertible into warrants of the post-Business Combination entity at a price of $ per warrant at the option of the lender. Such warrants would be identical to the private placement warrants. The terms of such loans have not been determined , While the Company had a working capital deficiency of $ 25,420,259 as of March 31, 2024, most of its current liabilities are not expected to be repaid from current assets. For example, $ 19,399,127 of the total current liabilities is related to the private investments in public equities (“PIPE”) non-cash item and is not expected to be repaid from current assets. Of the remaining $ 6,458,295 in accounts payable and accrued expenses, $ 5,983,947 is related to accrued legal expenses that are payable at the closing of the Lionsgate Business Combination and are not expected to be repaid from current assets. The Company is a Special Purpose Acquisition Corporation with a Completion Window of June 15, 2024. Although the Company plans to complete the transaction before the Completion Window, there can be no assurance that the Company will be able to consummate a business combination by June 15, 2024. In connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after June 15, 2024. Management plans to consummate a Business Combination prior to June 15, 2024; however, there can be no assurance that one will be completed. | Note 1-Organization Screaming Eagle Acquisition Corp. (the “Company”) is a blank check company incorporated as a Cayman Islands exempted company on November 3, 2021. The Company was formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (“Business Combination”). Although the Company is not limited to a particular industry or geographic region for purposes of completing a Business Combination, the Company intends to capitalize on the ability of its management team to identify and combine with a business or businesses that can benefit from its management team’s established global relationships and operating experience. The Company is an early stage company and, as such, the Company is subject to all of the risks associated with an early stage company. As of December 31, 2023, the Company had not commenced any operations. All activity for the period from November 3, 2021 (inception) through December 31, 2023 relates to the Company’s formation and the initial public offering (“initial public offering”), which is described below, and activities related to pursuing initial business combination opportunities. The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company generates non-operating income in the form of interest income on the proceeds derived from the initial public offering. The registration statement for the Company’s initial public offering was declared effective on January 5, 2022. On January 10, 2022, the Company consummated its initial public offering of one-third Simultaneously with the closing of the initial public offering, the Company consummated the sale of Transaction costs amounted to $42,130,216, consisting of $15,000,000 of underwriting fees, $26,250,000 of deferred underwriting fees and $880,216 of other offering costs. Following the closing of the initial public offering and the Private Placement, $750,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the initial public offering and certain proceeds from the sale of the private placement warrants was placed in a trust account (the “Trust Account”). The proceeds held in the Trust Account were invested in U.S. government treasury obligations with a maturity of 2a-7 The Company’s management has broad discretion with respect to the specific application of the net proceeds of the initial public offering and the sale of the private placement warrants, although substantially all of the net proceeds are intended to be applied generally toward completing a Business Combination. The Company must complete one or more Business Combinations with having an aggregate fair market value equal to at least % of the net assets held in the Trust Account (as defined below) (excluding the deferred underwriting commissions and taxes payable on the income earned on the Trust Account) at the time of the agreement to enter into the initial Business Combination. The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the issued and outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to successfully effect a per share), calculated as of two business days prior to the completion of Business Combination, including any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to fund its working capital requirements (subject to an aggregate limit of 3,000,000) and to pay its tax obligations. There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Class A ordinary shares will be recorded at redemption value and classified as temporary equity upon the completion of the initial public offering, in accordance with Accounting Standards Codification (“ASC”) Topic 480, “Distinguishing Liabilities from Equity.” If the Company seeks shareholder approval, the Company will complete a Business Combination only if it receives an ordinary resolution under Cayman Islands law approving a Business Combination, which requires the affirmative vote of a majority of the Company’s ordinary shares which are represented in person or by proxy and are voted at a general meeting of the Company. If a shareholder vote is not required under applicable law or stock exchange listing requirements and the Company does not decide to hold a shareholder vote for business or other reasons, the Company will, pursuant to its Amended and Restated Memorandum and Articles of Association, conduct the redemptions pursuant to the tender offer rules of the Securities and Exchange Commission (“SEC”), and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination. If the Company seeks shareholder approval in connection with a Business Combination, the Sponsor has agreed to vote its Founder Shares (as defined in Note 5) and any Public Shares purchased in or after the initial public offering in favor of approving a Business Combination and to waive its redemption rights with respect to any such shares in connection with a shareholder vote to approve a Business Combination. However, in no event will the Company redeem its Public Shares in an amount that would cause its net tangible assets to be less than $ Notwithstanding the foregoing, if the Company seeks shareholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Company’s Amended and Restated Memorandum and Articles of Association provides that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of The Sponsor and the Company’s officers and directors have agreed (a) to waive its redemption rights with respect to any Founder Shares and Public Shares held by it in connection with the completion of a Business Combination and (b) not to propose an amendment to the Amended and Restated Memorandum and Articles of Association (i) to modify the substance or timing of the Company’s obligation to redeem pre-initial Under the Amended and Restated Memorandum and Articles of Association, the Company has 27 months from the closing of the initial public offering, or until April 10, 2024, to close its initial Business Combination because it executed a definitive agreement for its initial Business Combination within 24 months from the closing of the initial public offering (the “Completion Window”). If the Company is unable to complete a Business Combination within the Completion Window and does not further extend such date with the approval of its shareholders, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but no more than 10 business days thereafter, redeem 100% of the outstanding Public Shares, at a per-share The Sponsor and the Company’s officers and directors have agreed to waive its liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Completion Window. However, if the Sponsor acquires Public Shares in or after the initial public offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Completion Window. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 7) held in the Trust Account in the event the Company does not complete a Business Combination within the Completion Window and, in such event, such amounts will be included with the funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than the initial public offering price per Unit ($10.00). The Sponsor has agreed that it will be liable to the Company, if and to the extent any claims by a third party for services rendered or products sold to the Company, or by a prospective target business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or business combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (1) $10.00 per Public Share and (2) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value of trust assets, less taxes payable. This liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account nor will it apply to any claims under the Company’s indemnity of the underwriters of the initial public offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (other than the Company’s independent registered public accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Subsidiaries In connection with the Business Combination with LG Orion Holdings ULC (“Lions Gate”), the Company formed SEAC II Corp. (“New SEAC”), a Cayman Islands exempted company and 1455941 B.C. Unlimited Liability Company (“New BC Sub”), a British Columbia unlimited liability company, both of which are direct, wholly-owned subsidiaries of the Company. In addition, the Company formed SEAC MergerCo (“MergerCo”) a Cayman Islands exempted company and a direct, wholly-owned subsidiary of New SEAC. New SEAC, New BC Sub, and MergerCo did not have any activity as of December 31, 2023 and they have not engaged in any operations or generated operating revenues to date. Business Combination with LG Orion Holdings ULC On December 22, 2023, the Company, New SEAC, Lions Gate Parent, Studio HoldCo, StudioCo, MergerCo and New BC Sub, entered into the Business Combination Agreement, pursuant to which, among other things and subject to the terms and conditions contained in the Business Combination Agreement and the Plan of Arrangement, (i) the Company will merge with and into MergerCo with SEAC Merger Surviving Company as the resulting entity, (ii) SEAC Merger Surviving Company will distribute all of its assets lawfully available for distribution to New SEAC by way of a cash dividend, (iii) SEAC Merger Surviving Company will transfer by way of continuation from the Cayman Islands to British Columbia in accordance with the Companies Act and the BC Act and convert to a British Columbia unlimited liability company in accordance with the applicable provisions of the BC Act, (iv) New SEAC will transfer by way of continuation from the Cayman Islands to British Columbia in accordance with the Companies Act and the BC Act and continue as a British Columbia company in accordance with the applicable provisions of the BC Act, and (v) in pursuant to the Arrangement and on the terms and subject to the conditions set forth in the Plan of Arrangement, (A) SEAC Merger Surviving Company and New BC Sub will amalgamate to form MergerCo Amalco, in accordance with the terms of, and with the attributes and effects set out in, the Plan of Arrangement, (B) New SEAC and MergerCo Amalco will amalgamate to form SEAC Amalco, in accordance with the terms of, and with the attributes and effects set out in, the Plan of Arrangement and (C) StudioCo and SEAC Amalco will amalgamate to form Pubco, in accordance with the terms of, and with the attributes and effects set out in, the Plan of Arrangement. The Arrangement is subject to the approval by the Supreme Court of British Columbia under the BC Act. For more information, please see the Current Report on Form 8-K filed with the SEC by the Company on December 22, 2023, and the Registration Statement on Form S-4 filed with the SEC by New SEAC on January 5, 2024, as amended by Amendment No. 1 filed with the SEC by New SEAC on February 9, 2024. Liquidity, capital resources, and going concern As of December 31, 2023, the Company had an unrestricted cash balance of $999,152, cash and investments held in the Trust Account of $794,750,266 and a working capital deficiency of $20,949,357. The e , which has been reached as of December 31, 2023). The Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required. U While the Company had a working capital deficiency of $ liabilities is related to the PIPE with reduction right liability, which is a non-cash item and is not expected to be repaid from current assets. Of the remaining $ in accounts payable and accrued expenses, $ 3,576,713 The Company is a Special Purpose Acquisition Corporation with a scheduled liquidation date of April 10, 2024. Although the Company plans to complete the transaction before the scheduled liquidation date, there can be no assurance that the Company will be able to consummate a business combination by April 10, 2024. In connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standard Board’s Accounting Standards Update (“AS U 2014-15, |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | |
Accounting Policies [Line Items] | ||||
Significant Accounting Policies | NOTE 2-SUMMARY Basis of Presentation The accompanying unaudited consolidated financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected through December 31, 2024 or any future periods. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Two of the more significant accounting estimates included in these financial statements is the determination of the fair value of the warrant liability and PIPE with reduction right liability. Such estimates may be subject to change as more current in form eco Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents as of March 31, 2024. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation limit of $250,000, and investments held in Trust Account. The Company has not experienced losses on these accounts. Investments Held in Trust Account The Company’s portfolio of investments was comprised solely of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less, or investments in money market funds that invest in U.S. government securities, or a combination thereof until January 2024, when the trustee liquidated such investments and moved the proceeds to an interest-bearing demand deposit account. The Company classifies its U.S. Treasury and equivalent securities as held to maturity in accordance with ASC Topic 320, “Investments-Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost on the accompanying consolidated balance sheets and adjusted for the amortization or accretion of premiums or discounts. Money market funds and demand deposits are presented at fair value at the end of each reporting period (see Note 11). Offering Costs Offering costs consisted of underwriting, legal, accounting and other expenses incurred directly related to the Initial Public Offering. Upon completion of the Initial Public Offering, offering costs were allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received. Offering costs associated with warrant liability were charged to operations. Offering costs allocated to Class A Ordinary Shares were initially charged to temporary equity and then accreted to ordinary shares subject to possible redemption upon the completion of the Initial Public Offering. Offering costs amounted to $ , of which $ was charged to temporary equity upon the completion of the Initial Public Offering and $ was expensed to the unaudited consolidated statements of operations. Class A Ordinary Shares Subject to Possible Redemption The Company accounts for its Class A Ordinary Shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity (deficit). The Company’s Class A Ordinary Shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at March 31, 2024 and December 31, 2023, Class A Ordinary Shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of Class A Ordinary Shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against additional paid-in As of March 31, 2024 and December 31, 2023, the Class A Ordinary Shares reflected on the consolidated balance sheets are reconciled in the following table: Gross proceeds $ 750,000,000 Less: Fair value of Public Warrants at issuance (36,750,000 ) Class A Ordinary Share issuance costs (42,110,034 ) Plus: Accretion of carrying value to redemption value 123,510,300 Class A Ordinary Shares subject to possible redemption, December 31, 2023 794,650,266 Plus: Waiver of offering costs allocated to Class A Ordinary Share subject to possible redemption 17,325,000 Less: Accretion of carrying value to redemption value (7,846,453 ) Class A Ordinary Shares subject to possible redemption, March 31, 2024 $ 804,128,813 Derivative Financial Instruments The Company accounts for derivative financial instruments in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value upon issuance and remeasured at each reporting date, with changes in the fair value reported in the unaudited consolidated statements of operations. The classification of derivative financial instruments is evaluated at the end of each reporting period. The Company accounts for the private placement warrants as liabilities at fair value on the consolidated balance sheets. The private placement warrants are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of other income (expense), net on the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the private placement warrants. At that time, the portion of the warrant liability related to the private placement warrants will be reclassified to additional paid-in capital. The Company accounts for the Subscription Agreements (as defined below) as a liability at fair value on the consolidated balance sheets (the “PIPE with reduction right liability”). The Subscription Agreements are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of other income (expense), net on the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the closing of the transactions contemplated by the Subscription Agreements or expiration of the Subscription Agreements. At that time, the PIPE with reduction right liability will be reclassified to additional paid-in Income Taxes The Company accounts for income taxes under ASC 740, “Income Taxes” (“ASC 740”), which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of March 31, 2024 and December 31, 2023. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company has been There is currently no taxation imposed on income by the government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s consolidated financial statements. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying consolidated balance sheets, primarily due to their short-term nature, except for the warrant liability (see Note 11). Warrant Liability The Company accounts for the private placement warrants as liabilities at fair value on the consolidated balance sheets. The private placement warrants are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of other income (expense), net on the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the private placement warrants. At that time, the portion of the warrant liability related to the private placement warrants will be reclassified to additional paid-in Net Income Per Ordinary Shares The Company has two classes of shares, Class A Ordinary Shares and Class B Ordinary Shares. Income and losses are shared pro rata between the two classes of shares. The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share”. Net income per share is computed by dividing net income by the weighted average number of ordinary shares outstanding for the period. Accretion associated with the redeemable shares of Class A Ordinary Shares is excluded from earnings per share as the redemption value approximates fair value. The calculation of diluted income (loss) per share does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering, and (ii) the private placement since the exercise of the warrants is contingent upon the occurrence of future events. The warrants are exercisable to purchase 36,733,333 Class A Ordinary Shares For the three months ended March 31, 2024 and 2023, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company. As a result, diluted net income per share of ordinary shares is the same as basic net income per shares of ordinary shares for the periods presented. The following table reflects the calculation of basic and diluted net income per ordinary shares for the three months ended March 31, 2024 and 2023: For the Three Months Ended For the Three Months Ended Class A Class B Class A Class B Basic and diluted net income per ordinary share Numerator: Allocation of net income $ 4,129,801 $ 1,032,450 $ 6,406,917 $ 1,601,729 Denominator: Basic and diluted weighted average shares outstanding 75,000,000 18,750,000 75,000,000 18,750,000 Basic and diluted net income per ordinary shares $ 0.06 $ 0.06 $ 0.09 $ 0.09 Fair Value of Financial Instruments Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: • Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; • Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and • Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement . Recently Issued Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. | Note 2-Summary Basis of presentation The accompanying financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Two of the more significant accounting estimates included in these financial statements is the determination of the fair value of the warrant liability and PIPE with reduction right liability. Such estimates may be subject to change as more current information becomes available and the actual results could differ significantly from those estimates. Cash equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation limit of $250,000, and investments held in Trust Account. The Company has not experienced losses on these accounts. Investments Held in Trust Account The Company’s portfolio of investments was comprised solely of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less, or investments in money market funds that invest in U.S. government securities, or a combination thereof until January 2024, when the trustee liquidated such investments and moved the proceeds to an interest-bearing demand deposit account. The Company classifies its U.S. Treasury and equivalent securities as held-to-maturity Held-to-maturity Held-to-maturity Offering costs Offering costs consisted of underwriting, legal, accounting and other expenses incurred directly related to the initial public offering. Upon completion of the initial public offering, offering costs were allocated to the separable financial instruments issued in the initial public offering based on a relative fair value basis, compared to total proceeds received. Offering costs associated with warrant liability were charged to operations. Offering costs allocated to Class A Ordinary Shares were initially charged to temporary equity and then accreted to ordinary shares subject to possible redemption upon the completion of the initial public offering. Offering costs amounted to $42,130,216, of which $42,110,034 was charged to temporary equity upon the completion of the initial public offering and $20,182 was expensed to the consolidated statements of operations. Class A Ordinary Shares subject to possible redemption The Company accounts for its Class A Ordinary Shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity (“ASC 480”).” Ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Class A ordinary shares of the Company feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at December 31, 2023 and 2022, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ equity (deficit) section of the Company’s consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of Class A ordinary shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against additional paid-in As of December 31, 2023 and 2022, the Class A ordinary shares reflected on the consolidated balance sheets are reconciled in the following table: Gross proceeds $ 750,000,000 Less Fair value of Public Warrants at issuance (36,750,000 ) Class A ordinary share issuance costs (42,110,034 ) Plus: Accretion of carrying value to redemption value 85,722,976 Class A Ordinary Shares subject to possible redemption as of December 31, 756,862,942 Plus: Accretion of carrying value to redemption value 37,787,324 Class A ordinary shares subject to possible redemption as of December 31, $ 794,650,266 Derivative financial instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC Topic 815, “Derivatives and Hedging”. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed The Company accounts for the private placement warrants as liabilities at fair value on the consolidated balance sheets. The private placement warrants are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of other income (expense), net on the statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the private placement warrants. At that time, the portion of the warrant liability related to the private placement warrants will be reclassified to additional paid-in The Company accounts for the Subscription Agreements as a liability at fair value on the consolidated balance sheets (the “ PIPE with reduction right liability Income taxes The Company accounts for income taxes under ASC Topic 740, “Income Taxes” which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not There is currently no taxation imposed on income by the government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change ove r the Net income (loss) per ordinary share The Company has two classes of shares, Class A ordinary shares and Class B ordinary shares. Income and losses are shared pro rata between the two classes of shares. The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share”. Net income per share is computed by dividing net income by the weighted average number of ordinary shares outstanding for the period. Accretion associated with the redeemable shares of Class A ordinary share is excluded from earnings per share as the redemption value approximates fair value. The calculation of diluted income (loss) per share does not consider the effect of the warrants issued in connection with the (i) initial public offering, and (ii) the private placement since the exercise of the warrants is contingent upon the occurrence of future events. The warrants are exercisable to purchase 36,733,333 Class A ordinary share in the aggregate. As of December 31, 2023 and 2022, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary share, and then share in the earnings of the Company. As a result, diluted net income per share is the same as basic net income per share for the period presented. For The Year Ended December 31, 2023 For the Year Ended December 31, 2022 For the Period From November 3, 2021 Class A Class B Class A Class B Class A Class B Basic and diluted net income (loss) per ordinary share Numerator: Allocation of net income (loss) $ 13,360,506 $ 3,340,127 $ 17,918,827 $ 4,592,958 $ — $ (5,000 ) Denominator: Basic and diluted weighted average shares 75,000,000 18,750,000 73,150,685 18,750,000 — 18,750,000 Basic and diluted net income per share $ 0.18 $ 0.18 $ 0.24 $ 0.24 $ — $ — Fair value of financial instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: • Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; • Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and • Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. Recently issued accounting standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial stateme nts. | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||
Accounting Policies [Line Items] | ||||
Description of Business, Basis of Presentation and Significant Accounting Policies | 1. Description of Business, Basis of Presentation and Significant Accounting Policies Description of Business Lions Gate Entertainment Corp. (“Lionsgate” or “Parent”) encompasses world-class motion picture and television studio operations (collectively referred to as the “Studio Business”) and the STARZ premium global subscription platforms (the “Starz Business”) to bring a unique and varied portfolio of entertainment to consumers around the world. Lionsgate has historically had three reportable business segments: (1) Motion Picture, (2) Television Production and (3) Media Networks. The Studio Business was substantially reflected in the Lionsgate Motion Picture and Television Production segments. These financial statements reflect the combination of the assets, liabilities, operations and cash flows reflecting the Studio Business which is referred to in these condensed combined financial statements as the “Studio Business” or the “Company”. These condensed combined financial statements of the Studio Business have been prepared on a carve-out The Studio Business consists of the Motion Picture and Television Production reportable segments, together with a substantially all of Lionsgate’s corporate general and administrative costs. Motion Picture consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired. Television Production consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series, and non-fiction Basis of Presentation The Studio Business has historically operated as part of Lionsgate and not as a standalone company. The Studio Business’s condensed combined financial statements, representing the historical assets, liabilities, operations and cash flows of the combination of the operations making up the worldwide Studio Business, have been derived from the separate historical accounting records maintained by Lionsgate, and are presented on a carve-out carve-out All revenues and costs as well as assets and liabilities directly associated with the business activity of the Studio Business are included in the accompanying condensed combined financial statements. Revenues and costs associated with the Studio Business are specifically identifiable in the accounting records maintained by Lionsgate and primarily represent the revenue and costs used for the determination of segment profit of the Motion Picture and Television Production segments of Lionsgate. In addition, the Studio Business costs include an allocation of corporate general and administrative expense (inclusive of share-based compensation) which has been allocated to the Studio Business as further discussed below. Other costs excluded from the Motion Picture and Television Production segment profit but relating to the Studio Business are generally specifically identifiable as costs of the Studio Business in the accounting records of Lionsgate and are included in the accompanying combined financial statements. Lionsgate utilizes a centralized approach to cash management. Cash generated by the Studio Business is managed by Lionsgate’s centralized treasury function and cash is routinely transferred to the Company or to the Starz Business to fund operating activities when needed. Cash and cash equivalents of the Studio Business are reflected in the combined balance sheets. Payables to and receivables from Lionsgate, primarily related to the Starz Business, are often settled through movement to the intercompany accounts between Lionsgate, the Starz Business and the Studio Business. Other than certain specific balances related to unsettled payables or receivables, the intercompany balances between the Studio Business and Lionsgate have been accounted for as parent net investment. See Note 18 for further details. The Studio Business is the primary borrower of certain indebtedness (the revolving credit facility, term loan A, and term loan B, together referred to as the “Senior Credit Facilities”) of Lionsgate. The Senior Credit Facilities are generally used as a method of financing Lionsgate’s operations in totality and are not specifically identifiable to the Studio Business or the Starz Business. It is not practical to determine what the capital structure would have been historically for the Studio Business or the Starz Business as standalone companies. A portion of Lionsgate’s corporate debt, Lionsgate’s 5.500% senior notes due April 15, 2029 (the “Senior Notes”) and related interest expense are not reflected in the Studio Business’s condensed combined financial statements. The Studio Business remains a guarantor under the Senior Notes indenture agreement. See Note 6 for further details. Additional indebtedness directly related to the Studio Business, including production loans, borrowing under the Production Tax Credit and IP Credit Facility, Backlog Facility (each as defined below) and other obligations, are reflected in the Studio Business’s condensed combined financial statements. See Note 7 for further details. Lionsgate’s corporate general and administrative functions and costs have historically provided oversight over both the Starz Business and the Studio Business. These functions and costs include, but are not limited to, salaries and wages for certain executives and other corporate officers related to executive oversight, investor relations costs, costs for the maintenance of corporate facilities, and other common administrative support functions, including corporate accounting, finance and financial reporting, audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense. Accordingly, the condensed combined financial statements of the Studio Business include allocations of certain general and administrative expenses (inclusive of share-based compensation) from Lionsgate related to these corporate and shared service functions historically provided by Lionsgate. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis of consolidated Lionsgate revenue, payroll expense or other measures considered to be a reasonable reflection of the historical utilization levels of these services. Accordingly, the Studio Business financial statements may not necessarily be indicative of the conditions that would have existed or the results of operations if the Company had been operated as an unaffiliated entity, and may not be indicative of the expenses that the Company will incur in the future. The Company also pays certain costs on behalf of the Starz Business such as certain rent expense, employee benefits, insurance and other administrative operating costs which are reflected as expenses of the Starz Business. The Starz Business also pays certain costs on behalf of the Company such as legal expenses, software development costs and severance which are reflected as expenses of the Studio Business. The settlement of reimbursable expenses between the Studio Business and the Starz Business have been accounted for as parent net investment. See Note 18 for further detail of parent net investment included in these condensed combined financial statements. Management believes the assumptions underlying these condensed combined financial statements, including the assumptions regarding the allocation of general and administrative expenses from Lionsgate to the Studio Business, are reasonable. However, the allocations may not include all of the actual expenses that would have been incurred by the Studio Business and may not reflect its combined results of operations, financial position and cash flows had it been a standalone company during the periods presented. It is not practicable to estimate actual costs that would have been incurred had the Studio Business been a standalone company and operated as an unaffiliated entity during the periods presented. Actual costs that might have been incurred had the Studio Business been a standalone company would depend on a number of factors, including the organizational structure, what corporate functions the Studio Business might have performed directly or outsourced, and strategic decisions the Company might have made in areas such as executive management, legal and other professional services, and certain corporate overhead functions. See Note 18 for further detail of the allocations included in these condensed combined financial statements. The unaudited condensed combined financial statements have been prepared in accordance with U.S. GAAP for interim financial information and accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these unaudited condensed combined financial statements. Operating results for the nine months ended December 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2024. The balance sheet at March 31, 2023 has been derived from the audited combined financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed combined financial statements should be read together with the combined financial statements and related notes included in the audited combined financial statements for the fiscal year ended March 31, 2023. Principles of Consolidation The accompanying unaudited condensed combined financial statements of the Company have been derived from the consolidated financial statements and accounting records of Lionsgate and reflect certain allocations from Lionsgate as further discussed above. All significant intercompany balances and transactions within the Company have been eliminated in these condensed combined financial statements. 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 disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; estimates related to the revenue recognition of sales or usage-based royalties; fair value of equity-based compensation; the allocations of costs to the Company for certain corporate and shared service functions in preparing the condensed combined financial statements on a carve-out Recent Accounting Pronouncements Segment Reporting: expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and therefore will be effective beginning with the Company’s financial statements issued for the fiscal year ending March 31, 2025 and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance on its combined financial statements and disclosures. Income Taxes: | 1. Description of Business, Basis of Presentation and Significant Accounting Policies Description of Business Lions Gate Entertainment Corp. (“Lionsgate,” or “Parent”) encompasses world-class motion picture and television studio operations (collectively referred to as the “Studio Business”) and the STARZ-branded premium global subscription platforms (the “Starz Business”) to bring a unique and varied portfolio of entertainment to consumers around the world. Lionsgate has historically had three reportable business segments: (1) Motion Picture, (2) Television Production and (3) Media Networks. The Studio Business is substantially reflected in the Lionsgate Motion Picture and Television Production segments. These financial statements reflect the combination of the assets, liabilities, operations and cash flows reflecting the Studio Business which is referred to in these combined financial statements as the “Studio Business” or the “Company”. These combined financial statements of the Studio Business have been prepared on a carve-out The Studio Business consists of the Motion Picture and Television Production reportable segments, together with substantially all of Lionsgate’s corporate general and administrative costs. Motion Picture consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired. Television Production consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series, and non-fiction Basis of Presentation The Studio Business has historically operated as part of Lionsgate and not as a standalone company. The Studio Business’s combined financial statements, representing the historical assets, liabilities, operations and cash flows of the combination of the operations making up the worldwide Studio Business, have been derived from the separate historical accounting records maintained by Lionsgate, and are presented on a carve-out carve-out All revenues and costs as well as assets and liabilities directly associated with the business activity of the Studio Business are included in the accompanying combined financial statements. Revenues and costs associated with the Studio Business are specifically identifiable in the accounting records maintained by Lionsgate and primarily represent the revenue and costs used for the determination of segment profit of the Motion Picture and Television Production segments of Lionsgate. In addition, the Studio Business costs include an allocation of corporate general and administrative expense (inclusive of share-based compensation) which has been allocated to the Studio Business as further discussed below. Other costs excluded from the Motion Picture and Television Production segment profit but relating to the Studio Business are generally specifically identifiable as costs of the Studio Business in the accounting records of Lionsgate and are included in the accompanying combined financial statements. Lionsgate utilizes a centralized approach to cash management. Cash generated by the Studio Business is managed by Lionsgate’s centralized treasury function and cash is routinely transferred to the Company or to the Starz Business to fund operating activities when needed. Cash and cash equivalents of the Studio Business are reflected in the combined balance sheets. Payables to and receivables from Lionsgate, primarily related to the Starz Business, are often settled through movement to the intercompany accounts between Lionsgate, the Starz Business and the Studio Business. Other than certain specific balances related to unsettled payables or receivables, the intercompany balances between the Studio Business and Lionsgate have been accounted for as parent net investment. See Note 20 for further details. The Studio Business is the primary borrower of certain corporate indebtedness (the revolving credit facility, term loan A and term loan B, together referred to as the “Senior Credit Facilities”) of Lionsgate. The Senior Credit Facilities are generally used as a method of financing Lionsgate’s operations in totality and are not specifically identifiable to the Studio Business or the Starz Business. It is not practical to determine what the capital structure would have been historically for the Studio Business or the Starz Business as standalone companies. A portion of Lionsgate’s corporate debt, Lionsgate’s 5.500% senior notes due April 15, 2029 (the “Senior Notes”) and related interest expense are not reflected in the Studio Business’s combined financial statements. The Studio Business remains a guarantor under the Senior Notes indenture agreement. See Note 7 for further details. Additional indebtedness directly related to the Studio Business, including production loans, borrowings under the Production Tax Credit Facility, IP Credit Facility, and Backlog Facility (each as defined below) and other obligations, are reflected in the Studio Business combined financial statements. See Note 8 for further details. Lionsgate’s corporate general and administrative functions and costs have historically provided oversight over both the Starz Business and the Studio Business. These functions and costs include, but are not limited to, salaries and wages for certain executives and other corporate officers related to executive oversight, investor relations costs, costs for the maintenance of corporate facilities, and other common administrative support functions, including corporate accounting, finance and financial reporting, audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense. Accordingly, the audited financial statements of the Studio Business, include allocations of certain general and administrative expenses (inclusive of share-based compensation) from Lionsgate related to these corporate and shared service functions historically provided by Lionsgate. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis of consolidated Lionsgate revenue, payroll expense or other measures considered to be a reasonable reflection of the historical utilization levels of these services. Accordingly, the Studio Business financial statements may not necessarily be indicative of the conditions that would have existed or the results of operations if the Company had been operated as an unaffiliated entity, and may not be indicative of the expenses that the Company will incur in the future. The Company also pays certain costs on behalf of the Starz Business such as certain rent expense, employee benefits, insurance and other administrative operating costs which are reflected as expenses of the Starz Business. The Starz Business also pays certain costs on behalf of the Company such as legal expenses, software development costs and severance which are reflected as expenses of the Studio Business. The settlement of reimbursable expenses between the Studio Business and the Starz Business have been accounted for as parent net investment. See Note 20 for further detail of parent net investment included in these combined financial statements. Management believes the assumptions underlying these combined financial statements, including the assumptions regarding the allocation of general and administrative expenses from Lionsgate to the Studio Business, are reasonable. However, the allocations may not include all of the actual expenses that would have been incurred by the Studio Business and may not reflect its combined results of operations, financial position and cash flows had it been a standalone company during the periods presented. It is not practicable to estimate actual costs that would have been incurred had the Studio Business been a standalone company and operated as an unaffiliated entity during the periods presented. Actual costs that might have been incurred had the Studio Business been a standalone company would depend on a number of factors, including the organizational structure, what corporate functions the Studio Business might have performed directly or outsourced, and strategic decisions the Company might have made in areas such as executive management, legal and other professional services, and certain corporate overhead functions. See Note 20 for further detail of the allocations included in these combined financial statements. Generally Accepted Accounting Principles These combined financial statements have been prepared in accordance with GAAP. Principles of Consolidation The accompanying combined financial statements of the Company have been derived from the consolidated financial statements and accounting records of Lionsgate and reflect certain allocations from Lionsgate as further discussed above. All significant intercompany balances and transactions within the Company have been eliminated in these combined financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; estimates related to the revenue recognition of sales or usage-based royalties; fair value of equity-based compensation; the allocations of costs to the Company for certain corporate and shared service functions in preparing the combined financial statements on a carve-out Reclassifications Certain amounts presented in prior years have been reclassified to conform to the current year’s presentation. Significant Accounting Policies Revenue Recognition The Company’s Motion Picture and Television Production segments generate revenue principally from the licensing of content in domestic theatrical exhibition, home entertainment (e.g., digital media and packaged media), television, and international market places. Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax. Revenue also includes licensing of motion pictures and television programming (including Starz original productions) to the Starz Business. See Note 20 for further details. Licensing Arrangements. Fixed Fee or Minimum Guarantees: Sales or Usage Based Royalties: Revenues by Market or Product Line. • Theatrical. picture-by-picture sub-distributor • Home Entertainment. • Digital Media. (pay-per-view video-on-demand Digital Transaction Revenue Sharing Arrangements: nominal or no upfront sales price, the Company shares in the rental or sales revenues generated by the platform on a title-by-title download-to-own, download-to-rent, video-on-demand. Licenses of Content to Digital Platforms: subscription-video-on-demand • Packaged Media. Blu-ray, • Television . non-fiction • International. territory-by-territory non-fiction • Other. Revenues from the licensing of film and television content and the sales and licensing of music are recognized when the content has been delivered and the license period has begun, as discussed above. Revenues from the licensing of symbolic intellectual property (i.e., licenses of motion pictures or television characters, brands, storylines, themes or logos) is recognized over the corresponding license term. Commissions are recognized as such services are provided. Deferred Revenue. Deferred revenue also relates to customer payments made in advance of when the Company fulfills its performance obligation and recognizes revenue. This primarily occurs under television production contracts, in which payments may be received as the production progresses, international motion picture contracts, where a portion of the payments are received prior to the completion of the movie and prior to license rights start dates, and pay television contracts with multiple windows with a portion of the revenues deferred until the subsequent exploitation windows commence. These arrangements do not contain significant financing components because the reason for the payment structure is not for the provision of financing to the Company, but rather to mitigate the Company’s risk of customer non-performance See Note 12 for further information. Accounts Receivable. Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits at financial institutions and investments in money market mutual funds. Restricted Cash At March 31, 2023 and 2022, the Company had restricted cash of $40.5 million and $13.4 million, respectively, primarily representing amounts related to required cash reserves for interest payments associated with the Production Tax Credit Facility, IP Credit Facility and Backlog Facility. Restricted cash is included within the “Other current assets” and “Other assets—non-current” Investment in Films and Television Programs General. Recording Cost. 12.8 Amortization. management’s estimate of ultimate revenue at the beginning of the current year expected to be recognized from the exploitation, exhibition or sale of the films or television programs. Ultimate Revenue. Development. Impairment Assessment. The fair value is determined based on a discounted cash flow analysis of the cash flows directly attributable to the title. To the extent the unamortized costs exceed the fair value, an impairment charge is recorded for the excess. The discounted cash flow analysis includes cash flows estimates of ultimate revenue and costs as well as a discount rate (a Level 3 fair value measurement, see Note 10 for further information). The discount rate utilized in the discounted cash flow analysis is based on the weighted average cost of capital of the Company plus a risk premium representing the risk associated with producing a particular film or television program. Estimates of future revenue involve measurement uncertainty and it is therefore possible that reductions in the carrying value of investment in films and television programs may be required as a consequence of changes in management’s future revenue estimates. Property and Equipment, net Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided for on a straight line basis over the following useful lives: Computer equipment and software 3—5 years Furniture and equipment 3—5 years Leasehold improvements Lease term or the useful life, whichever is shorter Land Not depreciated The Company periodically reviews and evaluates the recoverability of property and equipment. Where applicable, estimates of net future cash flows, on an undiscounted basis, are calculated based on future revenue estimates. If appropriate and where deemed necessary, a reduction in the carrying amount is recorded based on the difference between the carrying amount and the fair value based on discounted cash flows. Leases The Company determines if an arrangement is a lease at its inception. The expected term of the lease used for computing the lease liability and right-of-use non-lease non-lease Operating Leases. assets—non-current” liabilities—non-current” The present value of the lease payments is calculated using a rate implicit in the lease, when readily determinable. However, as most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate to determine the present value of the lease payments for the majority of its leases. Variable lease payments that are based on an index or rate are included in the measurement of ROU assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in the measurement of ROU assets and lease liabilities. The Company did not have any finance leases during the years ended March 31, 2023 and 2022. Investments Investments include investments accounted for under the equity method of accounting, and equity investments with and without readily determinable fair value. Equity Method Investments: Under the equity method of accounting, the Company’s share of the investee’s earnings (losses) are included in the “equity interests income (loss)” line item in the combined statements of operations. The Company records its share of the net income or loss of most equity method investments on a one quarter lag and, accordingly, during the years ended March 31, 2023, 2022 and 2021, the Company recorded its share of the income or loss generated by these entities for the years ended December 31, 2022, 2021 and 2020, respectively. Dividends and other distributions from equity method investees are recorded as a reduction of the Company’s investment. Distributions received up to the Company’s interest in the investee’s retained earnings are considered returns on investments and are classified within cash flows from operating activities in the combined statement of cash flows. Distributions from equity method investments in excess of the Company’s interest in the investee’s retained earnings are considered returns of investments and are classified within cash flows provided by investing activities in the combined statements of cash flows. Other Equity Investments: Impairments of Investments: For investments accounted for using the equity method of accounting or equity investments without a readily determinable fair value, the Company evaluates information available (e.g., budgets, business plans, financial statements, etc.) in addition to quoted market prices, if any, in determining whether an other-than-temporary decline in value exists. Factors indicative of an other-than-temporary decline include recurring operating losses, credit defaults and subsequent rounds of financing at an amount below the cost basis of the Company’s investment. Finite-Lived Intangible Assets Identifiable intangible assets with finite lives are amortized to depreciation and amortization expense over their estimated useful lives, ranging from 5 to 15 years. Amortizable intangible assets are tested for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of the asset may not be recoverable. If a triggering event has occurred, an impairment analysis is required. The impairment test first requires a comparison of undiscounted future cash flows expected to be generated over the remaining useful life of an asset to the carrying value of the asset. The impairment test is performed at the lowest level of cash flows associated with the asset. If the carrying value of the asset exceeds the undiscounted future cash flows, the asset would not be deemed to be recoverable. Impairment would then be measured as the excess of the asset’s carrying value over its fair value, which would generally be estimated based on a discounted cash flow (“DCF”) model. The Company monitors its finite-lived intangible assets and changes in the underlying circumstances each reporting period for indicators of possible impairments or a change in the useful life or method of amortization of its finite-lived intangible assets. No such triggering events were identified during the years ended March 31, 2023 and 2022. Goodwill At March 31, 2023, the carrying value of goodwill was $795.6 million. Goodwill is allocated to the Company’s reporting units, which are its operating segments or one level below its operating segments (component level). Reporting units are determined by the discrete financial information available for the component and whether that information is regularly reviewed by segment management. Components are aggregated into a single reporting unit if they share similar economic characteristics. The Company’s reporting units for purposes of goodwill impairment testing during the years ended March 31, 2023, 2022 and 2021 were Motion Picture, and the Television and Talent Management businesses, both of which are part of the Television Production segment. Goodwill is not amortized, but is reviewed for impairment each fiscal year or between the annual tests if an event occurs or circumstances change that indicates it is more-likely-than-not likely than not that the fair value is less than the carrying value of the reporting unit. If the Company believes that as a result of its qualitative assessment it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, a quantitative impairment test is not required but may be performed at the option of the Company. A quantitative assessment requires determining the fair value of the Company’s reporting units. The determination of the fair value of each reporting unit utilizes DCF analyses and market-based valuation methodologies, which represent Level 3 fair value measurements. Fair value determinations require considerable judgment and requires assumptions and estimates of many factors, including revenue and market growth, operating margins and cash flows, market multiples and discount rates, and are sensitive to changes in these underlying assumptions and factors. Goodwill Impairment Assessments: For the Company’s annual goodwill impairment test for fiscal 2022, due to overall macroeconomic conditions, including the uncertainty of the longer-term economic impacts of the COVID-19 In fiscal 2023, during the second quarter ended September 30, 2022, due to continued adverse macro and microeconomic conditions, including the competitive environment, continued inflationary trends, recessionary economies worldwide, a decline in market valuations for companies in the media and entertainment industry, as well as potential capital market transactions, the Company updated its quantitative impairment assessment for all of its reporting units as of September 30, 2022 based on the most recent data. The DCF analysis components of the fair value estimates were determined primarily by discounting estimated future cash flows, which included weighted average perpetual nominal growth rates ranging from 1.5% to 3.5%, at a weighted average cost of capital (discount rate) ranging from 11.0% to 13.0%, which considered the risk of achieving the projected cash flows, including the risk applicable to the reporting unit, industry and market as a whole. Based on its quantitative impairment assessment, the Company determined that the fair value of its reporting units exceeded the carrying values for all of its reporting units. For the Company’s annual goodwill impairment test for fiscal 2023, the Company performed a qualitative goodwill impairment assessment for all of its reporting units. The Company’s qualitative assessment considered the increase in the market price of the Company’s common shares from September 30, 2022, the recent performance of the Company’s reporting units, and updated forecasts of performance and cash flows, as well as the continuing micro and macroeconomic environment, and industry considerations, and determined that since the quantitative assessment performed in the quarter ended September 30, 2022, there were no events or circumstances that rise to a level that would more likely than not reduce the fair value of those reporting units below their carrying values; therefore, a quantitative goodwill impairment analysis was not required. Management will continue to monitor all of its reporting units for changes in the business environment that could impact the recoverability of goodwill in future periods. The recoverability of goodwill is dependent upon the continued growth of revenue and cash flows from the Company’s business activities. Examples of events or circumstances that could result in changes to the underlying key assumptions and judgments used in the Company’s goodwill impairment tests, and ultimately impact the estimated fair value of the Company’s reporting units may include the duration of the COVID-19 Prints, Advertising and Marketing Expenses The costs of prints, advertising and marketing expenses are expensed as incurred. Advertising expenses for the year ended March 31, 2023 were $203.4 million (2022 — $201.6 million, 2021—$119.2 million) which were recorded as distribution and marketing expenses in the accompanying combined statements of operations. Income Taxes The Company’s results have historically been included in the consolidated U.S. federal income tax return and U.S. state income tax filings of Lionsgate. The Company has computed its provision for income taxes on a separate return basis in these combined financial statements. The separate return method applies the accounting guidance for income taxes to the stand-alone financial statements as if the Company was a separate taxpayer and a stand-alone enterprise for the periods presented. The calculation of income taxes for the Company on a separate return basis requires significant judgment and use of both estimates and allocations. However, as discussed above in Note 1, the combined historical results of the Studio Business are presented on a managed basis rather than a legal entity basis, with certain deductions and other items that are included in the consolidated financial statements of Lionsgate, but not included in the combined financial statements of the Studio Business. Income taxes are accounted for using an asset and liability approach for financial accounting and reporting for income taxes and recognition and measurement of deferred assets are based upon the likelihood of realization of tax benefits in future years. Under this method, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax return purposes. Valuation allowances are established when management determines that it is more likely than not that some portion or all of the net deferred tax asset, on a jurisdiction-by-jurisdiction From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination, based on their technical merits. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. Government Assistance The Company has access to government programs that are designed to promote film and television production and distribution in certain foreign countries. The Company also has access to similar programs in certain states within the U.S. that are designed to promote film and television production in those states. Tax credits earned with respect to expenditures on qualifying film and television productions are recorded as a reduction to investment in films and television programs when the qualifying expenditures have been incurred provided that there is reasonable assurance that the credits will be realized. See Note 3 and Note 19 for further information. Foreign Currency Translation Monetary assets and liabilities denominated in currencies other than the functional currency are translated at exchange rates in effect at the balance sheet date. Resulting unrealized and realized gains and losses are included in the combined statements of operations. Foreign company assets and liabilities in foreign currencies are translated into U.S. dollars at the exchange rate in effect at the balance sheet date. Foreign company revenue and expense items are translated at the average rate of exchange for the fiscal year. Gains or losses arising on the translation of the accounts of foreign companies are included in accumulated other comprehensive income or loss, a separate component of equity. Derivative Instruments and Hedging Activities Derivative financial instruments are used by the Company in the management of its foreign currency and interest rate exposures. The Company’s policy is not to use derivative financial instruments for trading or speculative purposes. The Company uses derivative financial instruments to hedge its exposures to foreign currency exchange rate and interest rate risks. All derivative financial instruments are recorded at fair value in the combined balance sheets. See Note 10 for further information. The effective changes in fair values of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income or loss and included in unrealized gains (losses) on cash flow hedges until the underlying hedged item is recognized in earnings. The effective changes in the fair values of derivatives designated as cash flow hedges are reclassified from accumulated other comprehensive income or loss to net income or net loss when the underlying hedged item is recognized in earnings. If the derivative is not designated as a hedge, changes in the fair value of the derivative are recognized in earnings. See Note 18 for further discussion of the Company’s derivative financial instruments. Parent Net Investment Parent net investment in the combined balance sheets is presented in lieu of shareholders’ equity and represents Lionsgate historical investment in the Company, the accumulated net earnings (losses) after taxes and the net effect of settled transactions with and allocations from Lionsgate. All transactions reflected in parent net investment by Lionsgate in the accompanying combined balance sheets have been considered as financing activities for purposes of the combined statements of cash flows. Share-Based Compensation Certain Company employees participate in the share-based compensation plans sponsored by Lionsgate. Lionsgate share-based compensation awards granted to employees of the Company consist of stock options, restricted share units and share appreciation rights. As such, the awards to Company employees are reflected in parent net investment within the combined statements of equity (deficit) at the time they are expensed. The combined statements of operations also include an allocation of Lionsgate corporate and shared employee share-based compensation expenses. The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value is recognized in earnings over the period during which an employee is required to provide service. See Note 13 for further discussion of the Company’s share-based compensation. Transfers of Financial Assets The Company enters into arrangements to sell certain financial assets (i.e., monetize its trade accounts receivables). For a transfer of financial assets to be considered a sale, the asset must be legally isolated from the Company and the purchaser must have control of the asset. Determining whether all the requirements have been met includes an evaluation of legal considerations, the extent of the Company’s continuing involvement with the assets transferred and any other relevant considerations. When the true sales criteria are met, the Company derecognizes the carrying value of the financial asset transferred and recognizes a net gain or loss on the sale. The proceeds from these arrangements with third party purchasers are reflected as cash provided by operating activities in the combined statements of cash flows. If the sales criteria are not met, the transfer is considered a secured borrowing and the financial asset remains on the combined balance sheets with proceeds from the sale recognized as debt and recorded as cash flows from financing activities in the combined statements of cash flows. See Note 19 for discussion of the Company’s accounts receivable monetization. Recent Accounting Pronouncements Accounting Guidance Adopted in Fiscal 2023 Government Assistance: Accounting Guidance Adopted in Fiscal 2022 Refe |
Acquisition
Acquisition | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Acquisition | 2. Acquisitions eOne Acquisition On December 27, 2023, Lionsgate and its subsidiaries, Lions Gate Entertainment Inc., a Delaware corporation (“LGEI”), and Lions Gate International Motion Pictures S.à.r.l., a Luxembourg société à responsabilité limitée (“LGIMP” and, with the Company and LGEI, collectively the “Buyers”), completed the previously announced acquisition of all of the issued and outstanding equity interests of the companies constituting the Entertainment One television and film (“eOne”) business from Hasbro, Inc., a Rhode Island corporation (“Hasbro”), pursuant to that certain Equity Purchase Agreement (the “Purchase Agreement”) dated August 3, 2023. The aggregate cash purchase price was approximately $375.0 million, subject to certain purchase price adjustments, including for cash, debt, and working capital. Upon closing, the Company paid $331.0 million, net of cash acquired of $54.1 million, which reflects the purchase price of $375.0 million adjusted for estimated cash, debt, transaction costs and working capital. The preliminary purchase price is subject to further adjustments based on the final determination of the purchase price adjustments. The acquisition of eOne, a film and television production and distribution company, builds the Company’s film and television library, strengthens the Company’s scripted and unscripted television business, and continues to expand the Company’s presence in Canada and the U.K. The acquisition was accounted for under the acquisition method of accounting, with the financial results of eOne included in the Company’s combined results from December 27, 2023. There was no material revenue or net income from eOne for the period from December 27, 2023 through December 31, 2023. The Company incurred approximately $8.8 million of acquisition-related costs that were expensed in restructuring and other during the nine months ended December 31, 2023. Allocation of Purchase Consideration. determine if differences in accounting policies and practices require reclassifications to conform to the Company’s accounting policies and practices. As a result of that review, the Company may identify additional differences between the accounting policies and practices of the companies that, when conformed, could have a material impact on the combined financial statements of the Company. The Company will reflect measurement period adjustments, in the period in which the adjustments occur, and the Company will finalize its accounting for the acquisition within one year from December 27, 2023. A change in the fair value of the net assets may change the amount of the purchase price allocable to goodwill. If the final fair value estimates and tax adjustments related to the net assets acquired decrease from their preliminary estimates, the amount of goodwill will increase and if the final fair value estimates and tax adjustments related to the net assets acquired increase from their preliminary estimates, the amount of goodwill will decrease and may result in a gain on purchase. In addition, the final fair value estimates related to the net assets acquired could impact the amount of amortization expense recorded associated with amounts allocated to film and television programs and other intangible assets. The preliminary goodwill recorded was not significant and is reflected in the table below. The goodwill will not be amortized for financial reporting purposes, and will not be deductible for federal tax purposes. The fair value measurements were primarily based on significant inputs that are not observable in the market, such as discounted cash flow (DCF) analyses, and thus represent Level 3 fair value measurements. The preliminary allocation of the purchase price to the assets acquired and liabilities assumed, and a reconciliation to total consideration transferred is presented in the table below: (Amounts in millions) Cash and cash equivalents $ 54.1 Accounts receivable 287.6 Investment in films and television programs 367.9 Property and equipment 14.0 Intangible assets 4.0 Other assets (1) 205.0 Accounts payable and accrued liabilities (72.0 ) Content related payable (37.3 ) Participations and residuals (1) (203.7 ) Film related obligations (1) (105.8 ) Other liabilities and deferred revenue (1) (134.5 ) Preliminary fair value of net assets acquired 379.3 Goodwill 5.8 Preliminary purchase price consideration $ 385.1 (1) Includes current and non-current Investment in films and television programs includes the preliminary fair value of completed films and television programs which have been produced by eOne or for which eOne has acquired distribution rights, as well as the preliminary fair value of films and television programs in production, pre-production The intangible assets acquired include trade names with a weighted average estimated useful life of 5 years. The fair value of the trade names was preliminarily estimated based on the present value of the hypothetical cost savings that could be realized by the owner of the trade names as a result of not having to pay a stream of royalty payments to another party. These cost savings were calculated based on a DCF analysis of the hypothetical royalty payment that a licensee would be required to pay in exchange for use of the trade names, reduced by the tax effect realized by the licensee on the royalty payments. Other preliminary fair value adjustments were made to property and equipment and right-of-use Deferred taxes were preliminarily adjusted to record the deferred tax impact of acquisition accounting adjustments primarily related to amounts allocated to film and television programs, other intangible assets, and certain property and equipment, right-of-use The fair value of eOne’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, participations and residuals, film related obligations and other liabilities were estimated to approximate their book values. Pro Forma Statement of Operations Information. Nine Months Ended 2023 2022 (Amounts in millions) Revenues $ 2,525.6 $ 2,778.4 Net income (loss) attributable Parent $ (323.7 ) $ 60.4 The unaudited pro forma condensed combined financial information includes, where applicable, adjustments for (i) reductions in amortization expense from the fair value adjustments to investment in films and television programs, (ii) reduction in amortization expense related to acquired intangible assets, (iii) reduction in depreciation expense from the fair value of property and equipment, (iv) transaction costs and other one-time non-recurring tax-related Business Combination Agreement On December 22, 2023, Lionsgate entered into a business combination agreement (the “Business Combination Agreement”), with Screaming Eagle Acquisition Corp., a Cayman Islands exempted company (“Screaming Eagle”), SEAC II Corp., a Cayman Islands exempted company and a wholly-owned subsidiary of Screaming Eagle (“New SEAC”), SEAC MergerCo, a Cayman Islands exempted company and a wholly-owned subsidiary of Screaming Eagle, 1455941 B.C. Unlimited Liability Company, a British Columbia unlimited liability company and a wholly-owned subsidiary of Screaming Eagle, LG Sirius Holdings ULC, a British Columbia unlimited liability company and wholly-owned subsidiary of Lionsgate and LG Orion Holdings ULC, a British Columbia unlimited liability company and wholly-owned subsidiary of Lionsgate (“StudioCo”). Pursuant to the terms and conditions of the Business Combination Agreement, the Studio Business will be combined with Screaming Eagle through a series of transactions, including an amalgamation of StudioCo and New SEAC under a Canadian plan of arrangement (the “Business Combination”). Upon consummation of the Business Combination, approximately 87.3% of the total shares of the Studio Business are expected to continue to be held by Lionsgate, while Screaming Eagle public shareholders and founders and common equity financing investors are expected to own an aggregate of approximately 12.7% of the combined company. In addition to establishing the Studio Business as a standalone publicly-traded entity, the transaction is expected to deliver approximately $350.0 million of gross proceeds to the Company, including $175.0 million in private investments in public equities (“PIPE”) financing. The transaction is subject to certain closing conditions, including regulatory approvals and approval from the shareholders and public warrant holders of Screaming Eagle, and is expected to close in the spring of 2024. The closing of the transaction is also subject to the gross proceeds to the Company being equal to a minimum of $350.0 million. Harry E. Sloan, a member of Lionsgate’s Board of Directors, is also the Chairman of Screaming Eagle, and owns, directly or indirectly, a material interest in Eagle Equity Partners V, LLC, a Delaware limited liability company, the Screaming Eagle sponsor. Mr. Sloan recused himself from the decisions to approve the Business Combination made by both the board of directors of Screaming Eagle and Lionsgate. The Business Combination is expected to be accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, Screaming Eagle will be treated as the acquired company and the Studio Business will be treated as the acquirer for financial reporting purposes. Accordingly, for accounting purposes, the financial statements of New SEAC will represent a continuation of the financial statements of the Studio Business, with the Business Combination treated as the equivalent of the Studio Business issuing stock for the historical net assets of Screaming Eagle, accompanied by a recapitalization. The net assets of Screaming Eagle will be stated at fair value, which approximates historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination will be those of the Studio Business. | 2. Acquisition Spyglass. |
Initial Public Offering
Initial Public Offering | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Initial Public Offer [Abstract] | ||
Initial Public Offering | NOTE 3-INITIAL The Company consummated the Initial Public Offering of 75,000,000 units at $10.00 per unit. Each unit consisted of one Class A Ordinary Share and one-third | Note 3-Initial The Company consummated the initial public offering of 75,000,000 units at $10.00 per unit. Each unit consisted of one Class A ordinary share and one-third |
Private Placement
Private Placement | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Private Placement [Abstract] | ||
Private Placement | NOTE 4-PRIVATE The Sponsor purchased an aggregate of 11,733,333 private placement warrants at a price of $1.50 per private placement warrant, for an aggregate purchase price of $17,600,000, from the Company in a private placement that closed simultaneously with the closing of the Initial Public Offering. Each private placement warrant entitles the holder to purchase one Class A Ordinary Share at $11.50 per share, subject to adjustment (see Note 9). A portion of the proceeds from the sale of the private placement warrants were added to the net proceeds from the Initial Public Offering held in the Trust Account (see Note 6). If the Company does not complete a Business Combination within the Completion Window, the proceeds from the sale of the private placement warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the private placement warrants will expire worthless. | Note 4-Private The Sponsor purchased an aggregate of 11,733,333 private placement warrants at a price of $1.50 per private placement warrant, for an aggregate purchase price of $17,600,000, from the Company in a private placement that closed simultaneously with the closing of the initial public offering. Each private placement warrant entitles the holder to purchase one Class A ordinary share at $11.50 per share, subject to adjustment (see Note 9). A portion of the proceeds from the sale of the private placement warrants were added to the net proceeds from the initial public offering held in the Trust Account (see Note 6). If the Company does not complete a Business Combination within the Completion Window, the proceeds from the sale of the private placement warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the private placement warrants will expire worthless. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment | 4. Property and Equipment March 31, 2023 March 31, 2022 (Amounts in millions) Leasehold improvements $ 27.6 $ 26.1 Property and equipment 15.2 19.0 Computer equipment and software 71.5 67.0 114.3 112.1 Less accumulated depreciation and amortization (91.7 ) (83.3 ) 22.6 28.8 Land 1.2 1.2 $ 23.8 $ 30.0 During the year ended March 31, 2023, depreciation expense amounted to $12.2 million (2022—$12.4 million, 2021—$11.5 million). |
Investment in Films and Televis
Investment in Films and Television Programs | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Investment in Films and Television Programs | 3. Investment in Films and Television Programs The predominant monetization strategy for all of the Company’s investments in films and television programs is on an individual film basis. Total investment in films and television programs is as follows: December 31, March 31, (Amounts in millions) Investment in Films and Television Programs: Released, net of accumulated amortization $ 987.8 $ 779.9 Completed and not released 296.1 289.8 In progress 561.4 649.1 In development 62.9 67.9 Investment in films and television programs, net $ 1,908.2 $ 1,786.7 At December 31, 2023, acquired film and television libraries have remaining unamortized costs of $233.5 million, which are monetized individually and are being amortized on a straight line basis or the individual-film-forecast method over a weighted-average remaining period of approximately 13.0 years (March 31, 2023—unamortized costs of $132.8 million). Amortization of investment in film and television programs is $948.1 million and $1,295.6 million for the nine months ended December 31, 2023 and 2022, respectively, and was included in direct operating expense in the combined statements of operations. Impairments: Nine Months Ended 2023 2022 (Amounts in millions) Impairments by segment: Motion Picture $ 27.5 $ 1.1 Television Production 6.6 4.7 $ 34.1 $ 5.8 | 3. Investment in Films and Television Programs The predominant monetization strategy for all of the Company’s investments in films and television programs is on an individual film basis. Total investment in films and television programs is as follows: March 31, March 31, (Amounts in millions) Investment in Films and Television Programs (1)(2) Released, net of accumulated amortization $ 779.9 $ 663.2 Completed and not released 289.8 121.4 In progress 649.1 980.1 In development 67.9 103.2 Investment in films and television programs, net $ 1,786.7 $ 1,867.9 (1) At March 31, 2023, the unamortized balance related to completed and not released and in progress theatrical films was $561.5 million. (2) Production tax credits reduced total investment in films and television programs by $181.2 million during the year ended March 31, 2023, which resulted in a reduction of direct operating expense related to the amortization of investment in films and television programs cost of approximately $84.3 million for the year ended March 31, 2023. At March 31, 2023, acquired film and television libraries have remaining unamortized costs of $132.8 million, which are monetized individually and are being amortized using the individual-film-forecast method over a remaining period of approximately 18.2 years (March 31, 2022—unamortized costs of $149.9 million). Amortization of investment in film and television programs was $1,649.3 million, $1,497.5 million and $746.0 million for the years ended March 31, 2023, 2022 and 2021, respectively, and was included in direct operating expense in the combined statements of operations. The table below summarizes estimated future amortization expense for the Company’s investment in film and television programs as of March 31, 2023: Year Ending March 31, 2024 2025 2026 (Amounts in millions) Estimated future amortization expense: Released investment in films and television programs $ 369.3 $ 108.1 $ 82.7 Completed and not released investment in films and television programs $ 170.4 n/a n/a Impairments. Year Ended March 31, 2023 2022 2021 (Amounts in millions) Impairments by segment: Motion Picture $ 6.2 $ 1.2 $ 19.4 Television Production 4.6 34.9 10.3 Impairments not included in segment operating results (1) — — 15.4 $ 10.8 $ 36.1 $ 45.1 (1) Fiscal 2021: COVID-19 Of the impairments not included in segment operating results, none, none and $15.4 million for fiscal 2023, 2022 and 2021, respectively, related to motion picture titles. See Note 15 and Note 16 for COVID-19 |
Investments
Investments | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Investments | 4. Investments The Company’s investments consisted of the following: December 31, March 31, (Amounts in millions) Investments in equity method investees $ 67.1 $ 63.1 Other investments 4.4 1.6 $ 71.5 $ 64.7 Equity Method Investments: The Company has investments in various equity method investees with ownership percentages ranging from approximately 6% to 49%. These investments include: Spyglass. acquiring motion pictures and television programming across all platforms for worldwide audiences. STARZPLAY Arabia. video-on-demand Roadside Attractions Pantelion Films. Atom Tickets. first-of-its-kind 42. Other. | 5. Investments The Company’s investments consisted of the following: March 31, March 31, (Amounts in millions) Investments in equity method investees $ 63.1 $ 53.9 Other investments 1.6 2.1 $ 64.7 $ 56.0 Equity Method Investments: The Company has investments in various equity method investees with ownership percentages ranging from approximately 6% to 49%. These investments include: Spyglass. STARZPLAY Arabia. video-on-demand Roadside Attractions Pantelion Films. Atom Tickets. first-of-its-kind Great Point Opportunity Fund. 42. Other. Summarized Financial Information. March 31, March 31, (Amounts in millions) Current assets $ 189.0 $ 125.3 Non-current $ 203.0 $ 166.4 Current liabilities $ 215.5 $ 253.9 Non-current $ 65.0 $ 59.8 Year Ended 2023 2022 2021 (Amounts in millions) Revenues $ 185.3 $ 86.0 $ 84.6 Gross profit $ 35.1 $ 26.5 $ 32.0 Net loss $ (39.0 ) $ (46.1 ) $ (62.6 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Goodwill and Intangible Assets | 5. Goodwill Changes in the carrying value of goodwill by reporting segment were Motion Picture Television Production Total (Amounts in millions) Balance as of March 31, 2023 $ 393.7 $ 401.9 $ 795.6 Acquisition of eOne (see Note 2) 1.0 4.8 5.8 Balance as of December 31, 2023 $ 394.7 $ 406.7 $ 801.4 | 6. Goodwill and Intangible Assets Goodwill There have been no changes to the balance of goodwill during each of the years ended March 31, 2023, 2022 and 2021. Goodwill by reportable segment for each period is as follows: Motion Picture Television Production Total (Amounts in millions) Balance as of March 31, 2023, 2022 and 2021 $ 393.7 $ 401.9 $ 795.6 Intangible Assets Finite-Lived Intangible Assets. March 31, 2023 March 31, 2022 Gross Accumulated Net Carrying Gross Accumulated Net Carrying (Amounts in millions) Finite-lived intangible assets subject to amortization: Customer relationships $ 31.0 $ 10.0 $ 21.0 $ 31.0 $ 7.9 $ 23.1 Trademarks and trade names 3.6 2.6 1.0 3.6 2.2 1.4 Other 23.9 19.0 4.9 23.9 15.8 8.1 $ 58.5 $ 31.6 $ 26.9 $ 58.5 $ 25.9 $ 32.6 Amortization expense associated with the Company’s intangible assets for the year ended March 31, 2023, 2022 and 2021 was approximately $5.7 million, $5.7 million and $5.7 million, respectively. Amortization expense remaining relating to intangible assets for each of the years ending March 31, 2024 through 2028 is estimated to be approximately $5.1 million, $4.2 million, $2.5 million, $2.2 million, and $2.2 million, respectively. |
Debt
Debt | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 6. Debt Total debt of the Company, excluding film related obligations, was as follows: December 31, 2023 March 31, 2023 (Amounts in millions) Senior Credit Facilities: Revolving Credit Facility $ 375.0 $ — Term Loan A 407.1 428.2 Term Loan B 822.3 831.7 Total corporate debt 1,604.4 1,259.9 Unamortized debt issuance costs (11.7 ) (16.3 ) Total debt, net 1,592.7 1,243.6 Less current portion (50.3 ) (41.4 ) Non-current $ 1,542.4 $ 1,202.2 Senior Credit Facilities (Revolving Credit Facility, Term Loan A and Term Loan B) Revolving Credit Facility Availability of Funds & Commitment Fee Maturity Date: • Revolving Credit Facility & Term Loan A: expects to refinance and extend the maturity date of the Term Loan B prior to December 23, 2024 such that the maturity of the revolving credit facility and Term Loan A are not accelerated. • Term Loan B Interest: • Revolving Credit Facility & Term Loan A: zero • Term Loan B: Required Principal Payments: • Term Loan A: • Term Loan B: The Term Loan A and Term Loan B also require mandatory prepayments in connection with certain asset sales, subject to certain significant exceptions, and the Term Loan B is subject to additional mandatory repayment from specified percentages of excess cash flow, as defined in the Credit Agreement. Optional Prepayment: • Revolving Credit Facility, Term Loan A & Term Loan B: Security. Covenants. Change in Control. Lionsgate Senior Notes: As discussed in Note 1, the Senior Notes of Lionsgate are not reflected in the Studio Business condensed combined financial statements. The Studio Business remains a guarantor under the Senior Notes indenture agreement. The outstanding principal balance of the Senior Notes was $715.0 million and $800.0 million at December 31, 2023 and March 31, 2023, respectively, with a maturity date of April 15, 2029. The Studio Business guarantee would be applicable if an event of default were to occur by Lionsgate. As of December 31, 2023, Lionsgate was in compliance with all applicable covenants with respect to the Senior Notes and no events of default had occurred. Debt Transactions: Term Loan A Prepayment. Loss on Extinguishment of Debt: During the nine months ended December 31, 2022, the Company recorded a loss on extinguishment of debt related to the transaction described above of $1.3 million. The Company did not incur a loss on extinguishment of debt during the nine months ended December 31, 2023. | 7. Debt Total debt of the Company, excluding film related and other obligations, was as follows: March 31, March 31, (Amounts in millions) Senior Credit Facilities: Revolving Credit Facility $ — $ — Term Loan A 428.2 638.5 Term Loan B 831.7 844.2 Total corporate debt 1,259.9 1,482.7 Unamortized debt issuance costs (16.3 ) (23.6 ) Total debt, net 1,243.6 1,459.1 Less current portion (41.4 ) (222.8 ) Non-current $ 1,202.2 $ 1,236.3 The following table sets forth future annual contractual principal payment commitments of debt as of March 31, 2023: Maturity Year Ending March 31, Debt Type 2024 2025 2026 2027 Thereafter Total (Amounts in millions) Revolving Credit Facility April 2026 $ — $ — $ — $ — $ — $ — Term Loan A April 2026 28.9 41.2 44.5 313.6 — 428.2 Term Loan B March 2025 12.5 819.2 — — — 831.7 $ 41.4 $ 860.4 $ 44.5 $ 313.6 $ — $ 1,259.9 Less aggregate unamortized debt issuance costs (16.3 ) $ 1,243.6 Senior Credit Facilities (Revolving Credit Facility, Term Loan A and Term Loan B) Revolving Credit Facility Availability of Funds & Commitment Fee. Maturity Date: • Revolving Credit Facility & Term Loan A: • Term Loan B: Interest: • Revolving Credit Facility & Term Loan A: zero • Term Loan B: Required Principal Payments: • Term Loan A: • Term Loan B: The Term Loan A and Term Loan B also require mandatory prepayments in connection with certain asset sales, subject to certain significant exceptions, and the Term Loan B is subject to additional mandatory repayment from specified percentages of excess cash flow, as defined in the Credit Agreement. Optional Prepayment: • Revolving Credit Facility, Term Loan A & Term Loan B: Security. Covenants. Change of Control. Potential Impact of LIBOR Transition. one-week two-month 12-month one-month, six-month In July 2021, the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions and other market participants, recommended replacing U.S. dollar LIBOR with the Secured Overnight Financing Rate (“SOFR”), a new index based on transactions in the market for short-term treasury securities. The publication of SOFR began in April 2018, and, therefore, it has a very limited history and the effects of the phase out of LIBOR and the adoption of SOFR have not been fully determined. Under the terms of the Company’s Credit Agreement, in the event of the discontinuance of LIBOR, a mutually agreed-upon alternate benchmark rate will be established to replace LIBOR. The Company and Lenders (as defined in the Credit Agreement) shall, in good faith, endeavor to establish an alternate benchmark rate that gives due consideration to prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and which places the lenders under the Credit Agreement and the Company in the same economic position that existed immediately prior to the discontinuation of LIBOR. The Company does not anticipate that the discontinuance or modification of LIBOR will materially impact its liquidity or financial position. As noted above, on June 14, 2023, the Company entered into an amendment that replaces LIBOR in the calculation of interest for its Revolving Credit Facility, Term Loan A and Term Loan B with SOFR plus 0.10%. Lionsgate Senior Notes As discussed in Note 1, the Senior Notes of Lionsgate are not reflected in the Studio Business combined financial statements. The Studio Business remains a guarantor under the Senior Notes indenture agreement. The outstanding principal balance of the Senior Notes was $800.0 million and $1.0 billion at March 31, 2023 and 2022, respectively, with a maturity date of April 15, 2029. The Studio Business guarantee would be applicable if an event of default were to occur by Lionsgate. As of March 31, 2023, Lionsgate was in compliance with all applicable covenants with respect to the Senior Notes and no events of default had occurred. Debt Transactions Term Loan A Prepayment Credit Agreement Amendment. See the Accounting for the Credit Agreement Amendment Term Loan B Repurchases. Loss on Extinguishment of Debt During the fiscal years ended March 31, 2023 and 2022, the Company recorded a loss on extinguishment of debt related to the transactions described above as summarized in the table below. There was no loss on extinguishment of debt in the year ended March 31, 2021. Year Ended March 31, 2023 2022 (Amounts in millions) Loss on Extinguishment of Debt: Term Loan A prepayment $ (1.3 ) $ — Credit Agreement amendment (Revolving Credit Facility and Term Loan A) (1) — (1.7 ) Termination of a portion of Revolving Credit Facility commitments — (1.1 ) Term Loan B repurchases and other — (0.6 ) $ (1.3 ) $ (3.4 ) (1) See Accounting for the Credit Agreement Amendment Accounting for the Credit Agreement Amendment in Fiscal 2022: Revolving Credit Facility Credit Agreement Amendment on April 6, 2021. • Unamortized debt issuance costs: creditor-by-creditor • Fees paid to creditors and third-party costs: Term Loan A Credit Agreement Amendment on April 6, 2021. creditor-by-creditor new participating creditors, their portion of the debt was treated as new issuances to new creditors. Accordingly, the associated costs were accounted for as follows: • Unamortized debt issuance costs, third-party costs and fees paid to creditors: creditor-by-creditor For all of the above transactions, debt issuance costs recorded as a reduction of outstanding debt are amortized using the effective interest method. The following table summarizes the accounting for the Credit Agreement Amendment on April 6, 2021, as described above: Year Ended March 31, 2022 Loss on Recorded as a Total (Amounts in millions) Credit Agreement amendment (Revolving Credit Facility and Term Loan A): New debt issuance costs and call premiums $ 0.6 $ 5.6 $ 6.2 Previously incurred debt issuance costs 1.1 18.4 19.5 $ 1.7 $ 24.0 $ 25.7 |
Film Related Obligations
Film Related Obligations | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||
Film Related Obligations | 7. Film Related Obligations December 31, March 31, (Amounts in millions) Film related obligations: Production Loans $ 1,279.2 $ 1,349.9 Production Tax Credit Facility 250.0 231.8 Backlog Facility and Other 175.0 226.0 IP Credit Facility 117.3 143.8 Total film related obligations 1,821.5 1,951.5 Unamortized debt issuance costs (8.9 ) (11.4 ) Total film related obligations, net 1,812.6 1,940.1 Less current portion (1,258.2 ) (923.7 ) Total non-current $ 554.4 $ 1,016.4 Production Loans . Production Tax Credit Facility. non-recourse The maximum principal amount of the Production Tax Credit Facility is $250.0 million, subject to the amount of collateral available, which is based on specified percentages of amounts payable to the Company by governmental authorities pursuant to the tax incentive laws of certain eligible jurisdictions that arise from the production or exploitation of motion pictures and television programming in such jurisdiction. Cash collections from the underlying collateral (tax credit receivables) are used to repay the Production Tax Credit Facility. Advances under the Production Tax Credit Facility bear interest at a rate equal to SOFR plus 0.10% to 0.25% depending on the SOFR term (i.e., one, three or six months), plus 1.50% per annum or the base rate plus 0.50% per annum (effective interest rate of 6.95% at December 31, 2023). The Production Tax Credit Facility matures on January 27, 2025. IP Credit Facility. Cumulative Period From September 29, 2022 Through: Cumulative Minimum Payment Due Date (in millions) September 30, 2023 $ 30.4 November 14, 2023 September 30, 2024 $ 60.7 November 14, 2024 September 30, 2025 $ 91.1 November 14, 2025 September 30, 2026 $ 121.4 November 14, 2026 July 30, 2027 $ 161.9 July 30, 2027 Advances under the IP Credit Facility bear interest at a rate equal to, at the Company’s option, SOFR plus 0.11% to 0.26% depending on the SOFR term (i.e., one or three months) plus 2.25% per annum (with a SOFR floor of 0.25%) or the base rate plus 1.25% per annum (effective interest rate of 7.78% at December 31, 2023). The IP Credit Facility matures on July 30, 2027. Backlog Facility and Other: Backlog Facility. Other. | 8. Film Related Obligations March 31, March 31, (Amounts in millions) Film related obligations: Production Loans $ 1,349.9 $ 966.3 Production Tax Credit Facility 231.8 224.0 Backlog Facility and Other 226.0 — IP Credit Facility 143.8 123.5 Total film related obligations 1,951.5 1,313.8 Unamortized debt issuance costs (11.4 ) (8.4 ) Total film related obligations, net 1,940.1 1,305.4 Less current portion (923.7 ) (659.5 ) Total non-current $ 1,016.4 $ 645.9 The following table sets forth future annual repayment of film related obligations as of March 31, 2023: Year Ending March 31, 2024 2025 2026 2027 2028 Thereafter Total (Amounts in millions) Production Loans $ 810.0 $ 539.9 $ — $ — $ — $ — $ 1,349.9 Production Tax Credit Facility (1) — 231.8 — — — — 231.8 Backlog Facility and Other (1) 77.6 — 29.4 — 119.0 — 226.0 IP Credit Facility (2) 36.1 24.6 30.4 30.4 22.3 — 143.8 $ 923.7 $ 796.3 $ 59.8 $ 30.4 $ 141.3 $ — $ 1,951.5 Less unamortized debt issuance costs (11.4 ) $ 1,940.1 (1) The repayment dates are based on the projected future amount of collateral available under these facilities. Net advances and payments under these facilities can fluctuate depending on the amount of collateral available. (2) Repayment dates are based on the projected future cash flows generated from the exploitation of the rights, subject to a minimum guaranteed payment amount, as applicable (see further information below). Production Loans . Production Tax Credit Facility. non-recourse The maximum principal amount of the Production Tax Credit Facility is $235.0 million, subject to the amount of collateral available, which is based on specified percentages of amounts payable to the Company by governmental authorities pursuant to the tax incentive laws of certain eligible jurisdictions that arise from the production or exploitation of motion pictures and television programming in such jurisdiction. Cash collections from the underlying collateral (tax credit receivables) are used to repay the Production Tax Credit Facility. Advances under the Production Tax Credit Facility bear interest at a rate equal to SOFR plus 0.10% to 0.25% depending on the SOFR term (i.e., one, three or six months), plus 1.50% per annum or the base rate plus 0.50% per annum (effective interest rate of 6.41% at March 31, 2023). The Production Tax Credit Facility matures on January 27, 2025. IP Credit Facility. Cumulative Period From September 29, 2022 Through: Cumulative Payment Due Date (Amounts in millions) September 30, 2023 $30.4 November 14, 2023 September 30, 2024 $60.7 November 14, 2024 September 30, 2025 $91.1 November 14, 2025 September 30, 2026 $121.4 November 14, 2026 July 30, 2027 $161.9 July 30, 2027 Advances under the IP Credit Facility bear interest at a rate equal to, at the Company’s option, SOFR plus 0.11% to 0.26% depending on the SOFR term (i.e., one or three months) plus 2.25% per annum (with a SOFR floor of 0.25%) or the base rate plus 1.25% per annum (effective interest rate of 7.46% at March 31, 2023). The IP Credit Facility matures on July 30, 2027. Backlog Facility and Other Backlog Facility. Other. In September 2022, the Company borrowed $43.4 million under a loan agreement which matures on March 28, 2026 (the “September 2022 Distribution Loan”) and bears interest at a rate equal to Term SOFR plus 0.11%, plus an applicable margin amounting to 1.50% per annum (effective interest rate of 6.42% at March 31, 2023). In December 2022, the Company borrowed $16.2 million under a loan agreement which matures on November 1, 2025 (the “December 2022 Distribution Loan”, and together with the September 2022 Distribution Loan, the “Distribution Loans”), and bears interest at a rate equal to Term SOFR plus 0.11%, plus an applicable margin amounting to 2.10% per annum (effective interest rate of 7.02% at March 31, 2023). The December 2022 Distribution Loan provides for total borrowings up to an aggregate Outstanding loan balances under the Distribution Loans must be repaid with any cash collections from the underlying collateral if and when received by the Company, and may be voluntarily repaid at any time without prepayment penalty fees. As of March 31, 2023, $51.0 million remains outstanding under the Distribution Loans. |
Trust Account
Trust Account | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Trust Account | NOTE 6-TRUST A total of $750,000,000, which includes $735,000,000 of the net proceeds from the Public Offering and $15,000,000 from the sale of the private placement warrants, has been placed in the Trust Account. As of March 31, 2024, investment securities in the Company’s Trust Account consisted of $ 804,228,813 in a demand deposit account. As of December 31, 2023, investment securities in the Company’s Trust Account consisted of $ 794,750,266 in money market funds. The Company classifies its Treasury Instruments and equivalent securities as held to maturity in accordance with ASC 320, “Investments-Debt and Equity Securities”. Held-to-maturity Held-to-maturity In January 2022, the Company adopted the FASB-issued ASU No. 2016-13, available-for-sale The following table presents fair value information as of December 31, 2023 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. Since all of the Company’s permitted investments consist of a money market fund and a demand deposit account, fair values of its investments are determined by Level 1 inputs utilizing quoted prices (unadjusted) in active markets for identical assets as follows: Quoted Prices Money market fund as of December 31, 2023 $ 794,750,266 Transfers to/from Levels 1, 2, and 3 are recognized at the end of the reporting period. There were no transfers between levels for the three months ended March 31, 2024. The Company uses inputs such as actual tra | Note 6-Trust A total of $750,000,000, which includes $735,000,000 of the net proceeds from the Public Offering and $15,000,000 from the sale of the private placement warrants, has been placed in the Trust Account. As of December 31, 2023, investment securities in the Company’s Trust Account consisted of $794,750,266 in money market fund. As December 31, 2022, investment securities in the Company’s Trust Account consisted of $759,271,905 in United States Treasury Bills and $441,037 held in money market fund. The Company classifies its Treasury Instruments and equivalent securities as held to maturity in accordance with ASC 320, “Investments-Debt and Equity Securities”. Held-to-maturity Held-to-maturity In January 2022, the Company adopted the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, available-for-sale The following tables presents fair value information as of December 31, 2023 and 2022 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In addition, the table presents the carrying value (held to maturity), excluding accrued interest income and gross unrealized holding loss. Since all of the Company’s permitted investments consist of U.S. government treasury bills and cash, fair values of its investments are determined by Level 1 inputs utilizing quoted prices (unadjusted) in active markets for identical assets as follows: Quoted Prices in Active Markets (Level 1) Money market fund as of December 31, 2022 $ 441,037 Money market fund as of December 31, 2023 $ 794,750,266 Transfers to/from Levels 1, 2, and 3 are recognized at the end of the reporting period. There were no transfers between levels for the years ended December 31, 2023 and 2022. Level 1 instruments consist of investments in U.S. Treasury securities. The Company uses inputs such as actual trade data, benchmar k The carrying value, excluding gross unrealized holding gain and fair value of held to maturity securities on December 31 Amortized Cost Gross Holding Gain Quoted Prices in Active Markets (Level 1) U.S. Government Treasury Securities as of December 31, 2022 (1) $ 759,271,905 $ 161,421 $ 759,433,326 (1) Maturity date March 23, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | |
Contractual Obligation Fiscal Year Maturity Schedule [Line Items] | ||||
Commitments and Contingencies | NOTE 7-COMMITMENTS Registration Rights The holders of the Founder Shares, private placement warrants and warrants that may be issued upon conversion of the Working Capital Loans (and any Class A Ordinary Shares issuable upon the exercise of the private placement warrants and warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of the Initial Public Offering requiring the Company to register a sale of any of the securities held by them, including any other securities of the Company acquired by them prior to the consummation of the Company’s initial Business Combination. The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggyback” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination. The Company bears the expenses incurred in connection with the filing of any such registration statements. Risks and Uncertainties United States and global markets are experiencing volatility and disruption following the geopolitical instability resulting from the ongoing Russia-Ukraine conflict and the recent escalation of the Israel-Hamas conflict. In response to the ongoing Russia-Ukraine conflict, the North Atlantic Treaty Organization (“NATO”) deployed additional military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries have announced various sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the removal of certain financial institutions from the Society for Worldwide Interbank Financial Telecommunication payment system. Certain countries, including the United States, have also provided and may continue to provide military aid or other assistance to Ukraine and to Israel, increasing geopolitical tensions among a number of nations. The invasion of Ukraine by Russia and the escalation of the Israel-Hamas conflict and the resulting measures that have been taken, and could be taken in the future, by NATO, the United States, the United Kingdom, the European Union, Israel and its neighboring states and other countries have created global security concerns that could have a lasting impact on regional and global economies. Although the length and impact of the ongoing conflicts are highly unpredictable, they could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions and increased cyberattacks against U.S. companies. Additionally, any resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets. Any of the above mentioned factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian invasion of Ukraine, the escalation of the Israel-Hamas conflict and subsequent sanctions or related actions, could adversely affect the Company’s search for an initial business combination and any target business with which the Company may ultimately consummate an initial business combination. Underwriting Agreement The Company had granted the underwriters a 45-day In addition, the underwriters were entitled to a deferred fee of $ 0.35 per Unit, or $ 26,250,000 in the aggregate. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. On January 3, 2024, in consideration of Citigroup Global Markets Inc.’s (“Citi”) engagement as the Company’s financial advisor and placement agent in the PIPE 26,250,000 deferred underwriting fee payable to it pursuant to the terms of that certain underwriting agreement, dated January 5, 2022 (the “Underwriting Agreement”), by and between the Company and Goldman Sachs & Co. LLC (“Goldman Sachs”) and Citi, as representatives of the underwriters, which deferred underwriting fee would have been due upon the closing of the Lionsgate Business Combination. Such adjustments modified Citi’s entitlement to its portion of the deferred underwriting fee to be equal to a specific percentage of the amount remaining in the Trust Account, after giving effect to the redemption rights exer cised by the Company’s public shareholders and certain other adjustments. Each of Citi and Morgan Stanley & Co. LLC (“Morgan Stanley”), are serving as co-placement agents in the PIPE and for such role will receive a fee equal to a specific percentage of the total funds raised in the PIPE. Morgan Stanley will also receive an incremental fee equal to a specific percentage of the amount remaining in the Trust Account at the closing of the Lionsgate Business Combination. In addition, on January 3, 2024, the Company received a letter from Goldman Sachs whereby Goldman Sachs waived its entitlement to its portion of the $ 26,250,000 deferred underwriting fee payable pursuant to the Underwriting Agreement. The Company did not seek out the reasons why Goldman Sachs waived its deferred underwriting fee, despite Goldman Sachs having already completed its services under the Underwriting Agreement. Goldman Sachs received no additional consideration for the waiver of its entitlement to the deferred underwriting fee. Upon receipt of the waiver, offering costs of $ 17,325,000 were adjusted to temporary equity on the accompanying consolidated statements of changes in shareholders’ deficit. | Note 7-Commitments Registration Rights The holders of the Founder Shares, private placement warrants and warrants that may be issued upon conversion of the Working Capital Loans (and any Class A ordinary shares issuable upon the exercise of the private placement warrants and warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of the initial public offering requiring the Company to register a sale of any of the securities held by them, including any other securities of the Company acquired by them prior to the consummation of the Company’s initial business combination. The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination. The Company bears the expenses incurred in connection with the filing of any such registration statements. Risks and Uncertainties United States and global markets are experiencing volatility and disruption following the geopolitical instability resulting from the ongoing Russia-Ukraine conflict and the recent escalation of the Israel-Hamas conflict. In response to the ongoing Russia-Ukraine conflict, the North Atlantic Treaty Organization (“NATO”) deployed additional military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries have announced various sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the removal of certain financial institutions from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system. Certain countries, including the United States, have also provided and may continue to provide military aid or other assistance to Ukraine and to Israel, increasing geopolitical tensions among a number of nations. The invasion of Ukraine by Russia and the escalation of the Israel- Hamas conflict and the resulting measures that have been taken, and could be taken in the future, by NATO, the United States, the United Kingdom, the European Union, Israel and its neighboring states and other countries have created global security concerns that could have a lasting impact on regional and global economies. Although the length and impact of the ongoing conflicts are highly unpredictable, they could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions and increased cyber-attacks against U.S. companies. Additionally, any resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets. Any of the above mentioned factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian invasion of Ukraine, the escalation of the Israel-Hamas conflict and subsequent sanctions or related actions, co u ne Underwriting Agreement The Company had granted the underwriters a 45-day In addition, the underwriters are entitled to a deferred fee of $0.35 per Unit, or $26,250,000 in the aggregate. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. Subsequent to December 31, 2023, Goldman Sachs (as 26,250,000 | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||
Contractual Obligation Fiscal Year Maturity Schedule [Line Items] | ||||
Commitments and Contingencies | 15. Contingencies From time to time, the Company is involved in certain claims and legal proceedings arising in the normal course of business. The Company establishes an accrued liability for claims and legal proceedings when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. As of December 31, 2023, the Company is not a party to any material pending claims or legal proceeding and is not aware of any other claims that it believes could, individually or in the aggregate, have a material adverse effect on the Company’s financial position, results of operations or cash flows. | 17. Commitments and Contingencies Commitments The following table sets forth the Company’s future annual repayment of contractual commitments as of March 31, 2023: Year Ending March 31, 2024 2025 2026 2027 2028 Thereafter Total (Amounts in millions) Contractual commitments by expected repayment date (off-balance Film related obligations commitments (1) $ 149.6 $ 141.0 $ 14.1 $ 6.5 $ — $ 4.1 $ 315.3 Interest payments (2) 139.9 81.3 36.6 10.1 3.2 — 271.1 Other contractual obligations 81.0 57.9 45.7 40.3 36.9 138.0 399.8 Total future commitments under contractual obligations (3) $ 370.5 $ 280.2 $ 96.4 $ 56.9 $ 40.1 $ 142.1 $ 986.2 (1) Film related obligations commitments are not reflected on the combined balance sheets as they did not then meet the criteria for recognition and include the following items: (i) Distribution and marketing commitments represent contractual commitments for future expenditures associated with distribution and marketing of films which the Company will distribute. The payment dates of these amounts are primarily based on the anticipated release date of the film. (ii) Minimum guarantee commitments represent contractual commitments related to the purchase of film rights for pictures to be delivered in the future. (iii) Production loan commitments represent amounts committed for future film production and development to be funded through production financing and recorded as a production loan liability when incurred. Future payments under these commitments are based on anticipated delivery or release dates of the related film or contractual due dates of the commitment. The amounts include estimated future interest payments associated with the commitment. (2) Includes cash interest payments on the Company’s Senior Credit Facilities and film related obligations, based on the applicable LIBOR and SOFR interest rates as of March 31, 2023, net of payments and receipts from the Company’s interest rate swaps, and excluding the interest payments on the revolving credit facility as future amounts are not fixed or determinable due to fluctuating balances and interest rates. (3) Not included in the amounts above are $343.6 million of redeemable noncontrolling interest, as future amounts and timing are subject to a number of uncertainties such that the Company is unable to make sufficiently reliable estimations of future payments Multiemployer Benefit Plans. The Company does not participate in any multiemployer benefit plans that are considered to be individually significant to the Company, and as of March 31, 2023, all except two of the largest plans in which the Company participates were funded at a level of 80% or greater. The other two plans, the Motion Picture Industry Pension Plan and the Screen Actors Guild—Producers Pension Plan were funded at 69.80% and 78.95%, respectively, for the 2022 plan year, but neither of these plans were considered to be in endangered, critical, or critical and declining status in the 2022 plan year. Total contributions made by the Company to multiemployer pension and other benefit plans for the years ended March 31, 2023, 2022 and 2021 were $87.0 million, $90.4 million and $62.9 million, respectively. If the Company ceases to be obligated to make contributions or otherwise withdraws from participation in any of these plans, applicable law requires the Company to fund its allocable share of the unfunded vested benefits, which is known as a withdrawal liability. In addition, actions taken by other participating employers may lead to adverse changes in the financial condition of one of these plans, which could result in an increase in the Company’s withdrawal liability. Contingencies From time to time, the Company is involved in certain claims and legal proceedings arising in the normal course of business. The Company establishes an accrued liability for claims and legal proceedings when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. As of March 31, 2023, the Company is not a party to any material pending claims or legal proceeding and is not aware of any other claims that it believes could, individually or in the aggregate, have a material adverse effect on the Company’s financial position, results of operations or cash flows. Insurance Litigation During the fiscal year ended March 31, 2022, the Company settled with all of the insurers in its previous lawsuits related to insurance reimbursements associated with the previous Starz shareholder litigation settlement, which resulted in a net settlement amount received by the Company of $22.7 million in the fiscal year ended March 31, 2022, which is included in the “interest and other income” line item on the combined statement of operations. |
Shareholders' Deficit
Shareholders' Deficit | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | ||
Shareholders' Deficit | NOTE 8-SHAREHOLDERS’ DEFICIT Preference Shares - Comp preference shares with a par value of $ per share. The Company’s board of directors will be authorized to fix the voting rights, if any, designations, powers, preferences, the relative, participating, optional or other special rights and any qualifications, limitations and restrictions thereof, applicable to the shares of each series. The board of directors will be able to, without shareholder approval, issue preference shares with voting and other rights that could adversely affect the voting power and other rights of the holders of the ordinary shares and could have anti-takeover effects. At March 31, 2024 and December 31, 2023, there were no preference shares issued or outstanding. Class A Ordinary Shares - The Company is au Class A Ordinary Shares, with a par value of $ per share. Holders of Class A Ordinary Shares are entitled to for each share. At March 31, 2024 and December 31, 2023, there were Class A Ordinary Shares issued and outstanding subject to possible redemption. Class B Ordinary Shares - Company is authorized to issue Founder Shares, with a par value of $ per share. Holders of the Founder Shares are entitled to for each share. On November 5, 2021, the Sponsor paid an aggregate of $ to cover certain offering and formation costs of the Company in consideration for of the Company’s Class B Ordinary Shares (the “Founder Shares”). On December 13, 2021, the Company effected a share recapitalization with respect to the Founder Shares whereby the Company issued Founder Shares in respect of each outstanding Founder Share, resulting in the Sponsor owning Founder Shares. The Founder Shares included an aggregate of up to shares subject to forfeiture by the Sponsor to the extent that the underwriters’ over-allotment was not exercised in full or in part, so that the number of Founder Shares would collectively represent % of the Company’s issued and outstanding shares upon the completion of the Initial Public Offering. On February 19, 2022, Founder Shares were forfeited because the underwriters did not exercise their over-allotment option, resulting in the Sponsor holding Founder Shares. Holders of the Founder Shares will be entitled to vote on the appointment and removal of directors or continuing the Company in a jurisdiction outside the Cayman Islands (including any special resolution required to amend the constitutional documents of the Company or to adopt new constitutional documents of the Company, in each case, as a result of the Company approving a transfer by way of continuation in a jurisdiction outside the Cayman Islands). On any other matter submitted to a vote of the shareholders prior to or in connection with the completion of the initial Business Combination, holders of the Founder Shares and holders of the Class A Ordinary Shares will vote together as a single class, except as required by law. The Founder Shares will automatically convert into Class A Ordinary Shares concurrently with or immediately following the completion of a Business Combination on a one-for-one one-for-one | Note 8-Shareholders’ Preference Shares -The Company is authorized to issue preference shares with a par value of $ preference shares issued or outstanding. Class A Ordinary Shares - Class A ordinary shares issued or outstanding. Class B Ordinary Shares - Company is authorized to issue Class B or ary shares, with a par value of $ per share. Holders of the Class B ordinary shares are entitled to for each share. On November 5, 2021, the Sponsor paid an aggregate of $ to cover certain offering and formation costs of the Company in consideration for of the Company’s Class B ordinary shares (the “Founder Shares”). On December 13, 2021, the Company effected a share recapitalization with respect to the Founder Shares whereby the Company issued Founder Shares in respect of each outstanding Founder Share, resulting in the Sponsor owning Founder Shares. The Founder Shares included an aggregate of up to shares subject to forfeiture by the Sponsor to the extent that the underwriters’ over-allotment was not exercised in full or in part, so that the number of Founder Shares would collectively represent % of the Company’s issued and outstanding shares upon the completion of the initial public offering. On February 19, 2022, Founder Shares were forfeited because the underwriters did not exercise their over-allotment option, resulting in the Sponsor holding Founder Shares. Holders of the Founder Shares will be entitled to vote on the appointment and removal of directors or continuing the Company in a jurisdiction outside the Cayman Islands (including any special resolution required to amend the constitutional documents of the Company or to adopt new constitutional documents of the Company, in each case, as a result of the Company approving a transfer by way of continuation in a jurisdiction outside the Cayman Islands). On any other matter submitted to a vote of the shareholders prior to or in connection with the completion of the initial business combination, holders of the Founder Shares and holders of the Class A ordinary shares will vote together as a single class, except as required by law. The Founder Shares will automatically convert into Class A ordinary one-for-one u one-for-one |
Warrants
Warrants | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Warrants and Rights Note Disclosure [Abstract] | ||
Warrants | NOTE 9-WARRANTS As of March 31, 2024 and December 31, 2023, the Company has Public Warrants and private placement warrants outstanding. The Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable 30 days after the completion of a Business Combination. The Public Warrants will expire five years from the completion of a Business Combination, or earlier upon redemption or liquidation. The Company will not be obligated to deliver any Class A Ordinary Shares pursuant to the exercise of a Public Warrant and will have no obligation to settle such Public Warrant exercise unless a registration statement under the Securities Act with respect to the Class A Ordinary Shares underlying the warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable and the Company will not be obligated to issue a Class A Ordinary Share upon exercise of a warrant unless the Class A Ordinary Share issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. The Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination, it will use its commercially reasonable efforts to file with the SEC a post-effective amendment to the registration statement for the Company’s Initial Public Offering or a new registration statement for the registration, under the Securities Act, of the Class A Ordinary Shares issuable upon exercise of the warrants. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the Class A Ordinary Shares issuable upon exercise of the warrants is not effective by the 60th business day after the closing of a Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. In addition, if the Class A Ordinary Shares are at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of the Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company elects to do so, the Company will not be required to file or maintain in effect a registration statement, but it will use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. Once the warrants b (1) in whole and not in part; (2) at a price of $0.01 per Public Warrant; (3) upon not less than 30 days’ prior written notice of redemption to each warrant holder; and (4) if, and only if, the reported closing price of the ordinary shares equals or exceeds $18.00 per share (as adjusted for share sub-divisions, 30-trading If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. If the Company calls the Public Warrants for redemption, as described above, its management will have the option to require any holder that wishes to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of ordinary shares issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described below, the Public Warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. If the Company is unable to complete a Business Combination within the Completion Window and the Company liquidates the funds held in the Trust Account, holders of Public Warrants will not receive any of such funds with respect to their Public Warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such Public Warrants. Accordingly, the Public Warrants may expire worthless. The private placement warrants will be identical to the public warrants underlying the Units being sold in the Initial Public Offering, except that (i) the private placement warrants will not be redeemable by the Company, (ii) the private placement warrants and the Class A Ordinary Shares issuable upon the exercise of the private placement warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions, (iii) the private placement warrants will be exercisable on a cashless basis, (iv) will use a different Black-Scholes Warrant Model for purposes of calculating the Black-Scholes Warrant Value (as defined in the Warrant Agreement) and (v) the private placement warrants and the Class A Ordinary Shares issuable upon exercise of the private placement warrants will be entitled to registration rights. If the private placement warrants are held by someone other than the initial purchasers or their permitted transferees, the private placement warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. | Note 9-Warrants As of December 31, 2023 and 2022, the Company has 25,000,000 Public Warrants and 11,733,333 private placement warrants outstanding. The Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable 30 days after the completion of a Business Combination. The Public Warrants will expire five years from the completion of a Business Combination, or earlier upon redemption or liquidation. The Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a Public Warrant and will have no obligation to settle such Public Warrant exercise unless a registration statement under the Securities Act with respect to the Class A ordinary shares underlying the warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable and the Company will not be obligated to issue a Class A ordinary share upon exercise of a warrant unless the Class A ordinary share issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. The Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination, it will use its commercially reasonable efforts to file with the SEC a post-effective amendment to the registration statement of which this Form 10-K In addition, if the Class A ordinary shares are at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holder s Once the warrants become exercisable, the Company may redeem the outstanding Public Warrants: (1) in whole and not in part; (2) at a price of $0.01 per Public Warrant; (3) upon not less than 30 days’ prior written notice of redemption to each warrant holder; and (4) if, and only if, the reported closing price of the ordinary shares equals or exceeds $18.00 per share (as adjusted for share sub-divisions, 30-trading If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. If the Company calls the Public Warrants for redemption, as described above, its management will have the option to require any holder that wishes to exercise the Public Warrants to do so on a “cashless basis,” as described in the Warrant Agreement. The exercise price and number of ordinary shares issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described below, the Public Warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will The private placement warrants will be identical to the public warrants underlying the Units being sold in the initial public offering, except that (i) the private placement warrants will not be redeemable by the Company, (ii) the private placement warrants and the Class A ordinary shares issuable upon the exercise of the private placement warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions, (iii) the private placement warrants will be exercisable on a cashless basis, (iv) will use a different Black-Scholes Warrant Model for purposes of calculating the Black-Scholes Warrant Value (as defined in the Warrant Agreement) and (v) the private placement warrants and the Class A ordinary shares issuable upon exercise of the private placement warrants will be entitled to registration rights. If the private placement warrants are held by someone other than the initial purchasers or their permitted transferees, the private placement warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. |
PIPE with Reduction Right Liabi
PIPE with Reduction Right Liability | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Disclosure Of Private Investment In Public Equity [Abstract] | ||
PIPE with Reduction Right Liability | NOTE 10-PIPE WITH REDUCTION RIGHT LIABILITY Concurrently with the execution of the Business Combination Agreement, the Company, New SEAC and Lions Gate Parent entered into subscription agreements with certain institutional and accredited investors (the “PIPE Investors” and the subscription agreements, the “Initial Subscription Agreements”) pursuant to which the PIPE Investors have agreed, subject to the terms and conditions set forth therein, to subscribe for and purchase from Pubco, immediately following the Amalgamations, an aggregate of approximately 18,172,378 Pubco Common Shares (the “PIPE Shares”), at a purchase price of $ 9.63 per share, for an aggregate cash amount of $ 175,000,000 . The Initial Subscription Agreements have a variable amount of shares at settlement to the extent the PIPE Investors exercise their Reduction Right, subject to certain other conditions. Pursuant to the Initial Subscription Agreements, a PIPE Investor may elect to reduce the number of PIPE Shares it is obligated to purchase under its Initial Subscription Agreement (the “Reduction Right”), on a one-for-one basis, up to the total amount of PIPE Shares subscribed thereunder, to the extent a PIPE Investor (i) purchases Class A Ordinary Shares in open market transactions at a price of less than the Closing redemption price per share prior to the record date established for voting at the extraordinary general meeting of the Company’s shareholders (the “SEAC Shareholders’ Meeting”) (the “Open Market Purchase Shares”), subject to certain conditions, and (ii) beneficially owned any Class A Ordinary Shares as of the date of its Initial Subscription Agreement, subject to certain conditions (both as described above). If such PIPE Investors exercise their Reduction Right and meet these conditions, then for every Class A Ordinary Share for which such PIPE Investor exercises its Reduction Right, such PIPE Investor will be entitled to purchase from the Company 0.1111 newly issued Class A Ordinary Shares at a purchase price of $ 0.0001 per share, which shares will be issued by the Company prior to the SEAC Merger (the “Reduction Right Shares”). If the Reduction Right is exercised by any PIPE Investors, this would result in the Company raising additional incremental common equity proceeds relative to the aggregate cash PIPE proceeds of $ and issuing Reduction Right Shares. The Initial Subscription Agreements were evaluated under ASC 815 and meet the criteria for liability classification since the shares in the settlement are variable based on an input not considered to be inputs to the fair value of a fixed-for-fixed forward or option on equity shares. As such, the PIPE with reduction right liability is recorded at its initial fair value on the date the Company entered the Initial Subscription Agreements (or December 22, 2023), and each balance sheet date thereafter. Changes in the estimated fair value of the liability are recognized as a non-cash gain or loss on the statements of operations. The fair value of the liability is discussed in Note 11. This liability will cease to exist upon the earlier of the closing of the transactions contemplated by the Initial Subscription Agreements or expiration of the Initial Subscription Agreements. For the avoidance of doubt, the PIPE reflects common equity in the pro forma, combined company and will be accounted for as such after the closing of the Lionsgate Business Combinat ion. | Note 10-PIPE with Reduction Right Liability PIPE Shares The Subscription Agreements have a variable amount of shares at settlement to the extent the PIPE Investors exercise their Reduction Right, subject to certain other conditions. Pursuant to the Subscription Agreements, a PIPE Inves tor m Agreement (the “ Reduction Right Open Market Purchase Shares Reduction Right Shares If the Reduction Right is exercised by any PIPE Investors, this would result in the Company raising additional incremental common equity proceeds relative to the aggregate cash PIPE proceeds of $175,000,000 and issuing Reduction Right Shares. The Subscription Agreements were evaluated under ASC 815 and meet the criteria for liability classification since the shares in the settlement are variable based on an input not considered to be inputs to the fair value of a fixed-for-fixed forward or option on equity shares. As such, the PIPE with reduction right liability is recorded at its initial fair value on the date the Company entered the Subscription Agreements (or December 22, 2023), and each balance sheet date thereafter. Changes in the estimated fair value of the liability are recognized as a non-cash gain or loss on the statements of operations. The fair value of the liability is discussed in Note 11. This liability will cease to exist upon the earlier of the closing of the transactions contemplated by the Subscription Agreements or expiration of the Subscription Agreements. For the avoidance of doubt, the PIPE reflects common equity in the pro forma, combined company and will be accounted for as such after the closing of the Business Combination with StudioCo. |
Recurring Fair Value Measuremen
Recurring Fair Value Measurements | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | ||
Recurring Fair Value Measurements | NOTE 11-RECURRING FAIR VALUE MEASUREMENT As of March 31, 2024, investment securities in the Company’s Trust Account consisted of $ 804,228,813 in a demand deposit account. As of December 31, 2023, investment securities in the Company’s Trust Account consisted of $ 794,750,266 in a money market fund. See Note 6 for fair value information for the Trust Account. The fair value of private placement warrants was initially and subsequently measured at fair value using a Black-Scholes Option Pricing Model. For the three months ended March 31, 2024, the Company recognized a gain resulting from a decrease in the fair value of the private placement warrants of $ 234,667 . The gain from change in fair value of the private placement warrants are presented as change in fair value of warrant liability in the accompanying unaudited consolidated statement 469,333 , presented as change in fair value of warrant liability in the accompanying unaudited consolidated statement The following table sets forth by level within the fair value hierarchy the Company’s liability that was accounted for at fair value on a recurring basis: (Level 1) (Level 2) (Level 3) Private placement warrants as of March 31, 2024 $ — $ — $ 234,667 PIPE with reduction right liability as of March 31, 2024 $ — $ — $ 19,399,127 (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2023 $ — $ — $ 469,333 PIPE with reduction right liability as of December 31, 2023 $ — $ — $ 18,253,010 The following table provides quantitative information regarding Level 3 fair value measurements inputs as of their measurement dates: March 31, December 31, Ordinary share price $ 10.70 $ 10.60 Exercise price $ 11.50 $ 11.50 Volatility 40 % 45 % Term 5.11 5.28 Risk-free rate 4.21 % 3.85 % Dividend yield 0 % 0 % Probability of completing Lionsgate Business Combination (1) 94.9 % 91.0 % Probability of completing a different business combination 0.6 % (2) 0.8 % ( 3 ) Note: The private placement will be forfeited for no consideration if the announced Lionsgate Business Combination is completed (estimated probability of 94.9 % as of March 31, 2024). (1) Estimated by solving for the implied probability of completing the Lionsgate Business Combination based on the public warrant price and the contemplated exchange price of $0.50, adjusted for the time value of money. (2) Derived as follows: 11%*(1-94.9%), where 11 % represents the probability of completing a different business combination based on public trading of rights for special purpose acquisition companies and 94.9 % represents the probability of completing the Lionsgate Business Combination. (3) Derived as follows: 9%*(1-91%), where 9 % represents the probability of completing a different business combination based on public trading of rights for special purpose acquisition companies and 91 % represents the probability of completing the Lionsgate Business Combination. The change in the fair value of the warrant liabilities for the three months ended March 31, 2024 and 2023 is summarized as follows: Level 3 Derivative warrant liability at December 31, 2023 $ 469,333 Change in fair value of derivative warrant liability (234,666 ) Level 3 Derivative warrant liability at March 31, 2024 $ 234,667 Level 3 Derivative warrant liability at December 31, 202 2 $ 3,285,333 Change in fair value of derivative warrant liability (469,333 ) Level 3 Derivative warrant liability at March 31, 202 3 $ 2,816,000 The following table provides quantitative information regarding Level 3 fair value measurement inputs for the PIPE with reduction right liability as of their measurement dates: Inputs: As of As of Ordinary share stock price $ 10.70 $ 10.60 Term (1) 0.11 0.28 Risk-free rate of interest (2) 5.37 % 5.20 % Probability of completing the Lionsgate Business Combination (3) 94.9 % 91 % (1) Assumes the transaction closes on May 10, 2024 as of March 31, 2024 and April 10, 2024 as of December 31, 2023. (2) Reflects 1-month 3-month (3) Estimated by solving for the implied probability of completing the Lionsgate Business Combination based on the public warrant price and the contemplated exchange price of $0.50, adjusted for the time value of money. The change in the fair value of the PIPE with reduction right liability for the quarter ended March 31, 2024 is summarized as follows: Level 3 PIPE reduction right liability December 31, 2022 $ — Issuance of PIPE with reduction right liability on December 22, 2023 18,797,300 Change in fair value of PIPE reduction right liability (544,290 ) Level 3 PIPE reduction right liability December 31, 2023 18,253,010 Change in fair value of PIPE reduction right liability 1,146,117 Level 3 PIPE reduction right liability March 31, 2024 $ 19,399,127 | Note 11-Recurring Fair Value Measurements As of December 31, 2023, investment securities in the Company’s Trust Account consisted of $ in a money market fund. As of December 31, 2022, investment securities in the Company’s Trust Account consisted of $ in United States Treasury Bills and $ The fair value of private placement warrants was initially and subsequently measured at fair value using a Black-Scholes Option Pricing Model. For the year s ate The fair value of the PIPE with reduction right liability was initially and subsequently measured at fair value utilizing observable market prices for public shares, relative to the present value of contractual cash proceeds, each adjusted for the probability of closing the Business Combination with StudioCo. For the year ended December 31, 2023, the Company recognized a PIPE with reduction right expense of $18,797,300 and a gain resulting from a decrease in the fair value of the PIPE with reduction right liability of $544,290. The gain is presented as a change in fair value of PIPE with reduction right liability in the accompanying consolidated statements of operations. The following table sets forth by level within the fair value hierarchy the Company’s liabilities that were accounted for at fair value on a recurring basis: (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2023 $ — $ — $ 469,333 PIPE with reduction right liability as of December 31, 2023 $ — $ — $ 18,253,010 (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2022 $ — $ — $ 3,285,333 The following table provides quantitative information regarding Level 3 fair value measurement inputs for the private placement warrants as of their measurement dates: Inputs: As of December 31, 2023 As of December 31, 2022 Ordinary share stock price $ 10.60 $ 9.94 Exercise price 11.50 11.50 Volatility 45 % 31 % Term 5.28 5.75 Risk-free rate of interest 3.85 % 3.98 % Dividend yield 0 % 0 % Probability of completing the Business Combination 91 % (1) N/A Probability of completing a different business combination 0.8 % (2) 9 % (3) Note: The private placement will be forfeited for no consideration if the announced Business Combination with StudioCo is completed (estimated probability of (1) Estimated by solving for the implied probability of completing the Business Combination with StudioCo (2) Derived as follows: 9%*(1-91%), with StudioCo (3) Based on public trading of rights for special purpose acquisition companies and their implied business combination probabilities as of December 31, 2022. The change in the fair value of the warrant liabilities for the years ended December 31, 2022 and 2023, respectively, is summarized as follows: Level 3 Derivative warrant liability at December 31, 2021 $ — Issuance of Private Warrants on January 10, 2022 17,482,666 Change in fair value of derivative warrant liability (14,197,333 ) Level 3 Derivative warrant liability at December 31, 2022 3,285,333 Change in fair value of derivative warrant liability (2,816,000 ) Level 3 Derivative warrant liability at December 31, 2023 $ 469,333 The following table provides quantitative information regarding Level 3 fair value measurement inputs for the PIPE with reduction right liability as of their measurement dates: Inputs: As of As of Ordinary share stock price $ 10.62 $ 10.60 Term (1) 0.30 0.28 Risk-free rate of interest (2) 5.24 % 5.20 % Probability of completing the Business Combination (3) 91 % 91 % (1) Assumes the transaction closes on April 10, 2024. (2) Reflects 3-month US treasury, secondary market rate as of the valuation date. (3) Estimated by solving for the implied probability of completing the Business Combination with St u based on the public warrant price and the contemplated exchange price of $ 0.50 , adjusted for the time value of money. The change in the fair value of the PIPE with reduction right liability for the year ended December 31, 2023 is summarized as follows: Level 3 PIPE reduction right liability December 31, 2022 $ — Issuance of PIPE with 18,797,300 Change in fair value of PIPE reduction right liability (544,290 ) Level 3 PIPE with $ 18,253,010 |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Noncontrolling Interests | 9. Noncontrolling Interests Redeemable Noncontrolling Interests The table below presents the reconciliation of changes in redeemable noncontrolling interests: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Beginning balance $ 343.6 $ 321.2 Net loss attributable to redeemable noncontrolling interests (7.3 ) (7.4 ) Noncontrolling interests discount accretion — 13.4 Adjustments to redemption value 71.5 34.7 Cash distributions (1.0 ) (4.8 ) Purchase of noncontrolling interest (0.6 ) — Ending balance $ 406.2 $ 357.1 Redeemable noncontrolling interests (included in temporary equity on the unaudited condensed combined balance sheets) primarily relate to the November 12, 2015 acquisition of a controlling interest in Pilgrim Media Group and the May 29, 2018 acquisition of a controlling interest in 3 Arts Entertainment. 3 Arts Entertainment. The noncontrolling interest holders are employees of 3 Arts Entertainment. Pursuant to the various 3 Arts Entertainment acquisition and related agreements, a portion of the noncontrolling interest holders’ participation in the put and call proceeds is based on the noncontrolling interest holders’ performance during the period. Further, if the employment of a noncontrolling interest holder is terminated, under certain circumstances, their participation in distributions cease and the put and call value is discounted from the fair value of their equity ownership percentage. Accordingly, earned distributions are accounted for as compensation and are being expensed within general and administrative expense as incurred. Additionally, the amount of the put and call proceeds subject to the discount is accounted for as compensation, and is amortized over the vesting period within general and administrative expense and reflected as an addition to redeemable noncontrolling interest over the vesting period which ended in November 2022. On January 2, 2024, Lionsgate closed on the acquisition of an additional 25% of 3 Arts Entertainment representing approximately half of the noncontrolling interest for approximately $194 million. In addition, Lionsgate purchased certain profit interests held by certain managers and entered into certain option rights agreements, which replaced the put and call rights discussed above by providing noncontrolling interest holders the right to sell to the Company and Lionsgate the right to purchase their remaining (24%) interest beginning in January 2027. Pilgrim Media Group Redeemable noncontrolling interests are measured at the greater of (i) the redemption amount that would be paid if settlement occurred at the balance sheet date less the amount attributed to unamortized noncontrolling interest discount if applicable, or (ii) the historical value resulting from the original acquisition date value plus or minus any earnings or loss attribution, plus the amount of amortized noncontrolling interest discount, less the amount of cash distributions that are not accounted for as compensation, if any. The amount of the redemption value in excess of the historical values of the noncontrolling interest, if any, is recognized as an increase to redeemable noncontrolling interest and a charge to parent net investment. Other. Other Noncontrolling Interests The Company has other immaterial noncontrolling interests that are not redeemable. | 11. Noncontrolling Interests Redeemable Noncontrolling Interests The table below presents the reconciliation of changes in redeemable noncontrolling interests: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Beginning balance $ 321.2 $ 219.1 $ 167.8 Net loss attributable to redeemable noncontrolling interests (9.2 ) (17.7 ) (15.9 ) Noncontrolling interests discount accretion 13.2 22.7 22.7 Adjustments to redemption value 78.4 98.6 47.1 Other 1.7 — — Cash distributions (6.6 ) (1.5 ) (2.6 ) Purchase of noncontrolling interest (55.1 ) — — Ending balance $ 343.6 $ 321.2 $ 219.1 Redeemable noncontrolling interests (included in temporary equity on the combined balance sheets) relate to the November 12, 2015 acquisition of a controlling interest in Pilgrim Media Group and the May 29, 2018 acquisition of a controlling interest in 3 Arts Entertainment. 3 Arts Entertainment. non-compensatory 30 60 In addition, the noncontrolling interest holders have continued as employees of 3 Arts Entertainment. Pursuant to the various 3 Arts Entertainment acquisition and related agreements, a portion of the noncontrolling interest holders’ participation in the put and call proceeds is based on the noncontrolling interest holders’ performance during the period. Further, if the employment of a noncontrolling interest holder is terminated, under certain circumstances, their participations in distributions cease and the put and call value is discounted from the fair value of their equity ownership percentage. Accordingly, earned distributions are accounted for as compensation and are being expensed within general and administrative expense as incurred. Additionally, the amount of the put and call proceeds subject to the discount is also accounted for as compensation, and is being amortized over the vesting period within general and administrative expense and reflected as an addition to redeemable noncontrolling interest. A portion of the purchase price of the controlling interest in 3 Arts Entertainment, up to $38.3 million, may be recoupable for a five-year period commencing on the acquisition date of May 29, 2018, contingent upon the continued employment of certain employees, or the achievement of certain EBITDA targets, as defined in the 3 Arts Entertainment acquisition and related agreements. Accordingly, $38.3 million was initially recorded as a deferred compensation arrangement within other current and non-current Pilgrim Media Group. In addition, the noncontrolling interest holder is the President and CEO of Pilgrim Media Group. Pursuant to the original operating agreement of Pilgrim Media Group, if the employment of the noncontrolling interest holder was terminated, under certain circumstances as defined in the operating agreement, the Company could call and the noncontrolling interest holder could put the noncontrolling interest at a discount to fair value, which was being expensed over the call periods in the original operating agreement. Pursuant to the amendment to the operating agreement on April 2, 2021, this discount was eliminated and therefore the remaining unamortized discount of $2.7 million was expensed in the first quarter ended June 30, 2021. The amortization of the discount through June 30, 2021 was included in general and administrative expense of Pilgrim Media Group for the year ended March 31, 2022, and reflected as an addition to redeemable noncontrolling interest. Redeemable noncontrolling interests are measured at the greater of (i) the redemption amount that would be paid if settlement occurred at the balance sheet date less the amount attributed to unamortized noncontrolling interest discount if applicable, or (ii) the historical value resulting from the original acquisition date value plus or minus any earnings or loss attribution, plus the amount of amortized noncontrolling interest discount, less the amount of cash distributions that are not accounted for as compensation, if any. The amount of the redemption value in excess of the historical values of the noncontrolling interest, if any, is recognized as an increase to redeemable noncontrolling interest and a charge to parent net investment. Other. Other Noncontrolling Interests The Company has other immaterial noncontrolling interests that are not redeemable. |
Revenue
Revenue | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10. Revenue Revenue by Segment, Market or Product Line The table below presents revenues by segment, market or product line for the nine months ended December 31, 2023 and 2022: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Revenue by Type: Motion Picture Theatrical $ 194.2 $ 28.6 Home Entertainment Digital Media 495.3 378.5 Packaged Media 63.0 55.3 Total Home Entertainment 558.3 433.8 Television 214.5 147.0 International 255.3 166.5 Other 23.3 15.7 Total Motion Picture revenues (1) 1,245.6 791.6 Television Production Television 554.2 973.1 International 137.7 219.4 Home Entertainment Digital Media 113.4 205.1 Packaged Media 1.0 2.7 Total Home Entertainment 114.4 207.8 Other 54.4 68.3 Total Television Production revenues (2) 860.7 1,468.6 Total revenues $ 2,106.3 $ 2,260.2 (1) Total Motion Picture revenues for the nine months ended December 31, 2023 and 2022, includes $113.7 million and $30.0 million, respectively, of revenues from licensing Motion Picture segment product to the Starz Business. (2) Total Television Production revenues for the nine months ended December 31, 2023 and 2022, includes $308.4 million and $618.6 million, respectively, of revenues from licensing Television Production segment product to the Starz Business. Remaining Performance Obligations Remaining performance obligations represent deferred revenue on the balance sheet plus fixed fee or minimum guarantee contracts where the revenue will be recognized and the cash received in the future (i.e., backlog). Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at December 31, 2023 are as follows: Year Ending March 31, Rest of Year Ending 2025 2026 Thereafter Total (Amounts in millions) Remaining Performance Obligations $ 486.2 $ 917.3 $ 431.9 $ 106.7 $ 1,942.1 The above table does not include estimates of variable consideration for transactions involving sales or usage-based royalties in exchange for licenses of intellectual property. The revenues included in the above table include all fixed fee contracts regardless of duration. Revenues of $236.2 million, including variable and fixed fee arrangements, were recognized during the nine months ended December 31, 2023 from performance obligations satisfied prior to March 31, 2023. These revenues were primarily associated with the distribution of television and theatrical product in electronic sell-through and video-on-demand Accounts Receivable, Contract Assets and Deferred Revenue The timing of revenue recognition, billings and cash collections affects the recognition of accounts receivable, contract assets and deferred revenue. See the unaudited condensed combined balance sheets or Note 17 for accounts receivable, contract assets and deferred revenue balances at December 31, 2023 and March 31, 2023. Accounts Receivable. The Company performs ongoing credit evaluations and monitors its credit exposure through active review of customers’ financial condition, aging of receivable balances, historical collection trends, and expectations about relevant future events that may significantly affect collectability. The Company generally does not require collateral for its trade accounts receivable. Changes in the provision for doubtful accounts consisted of the following: March 31, (Benefit) provision Other (1) Uncollectible written-off (2) December 31, (Amounts in millions) Provision for doubtful accounts $ 8.7 $ 0.3 $ 1.3 $ (3.3 ) $ 7.0 (1) Represents the provision for doubtful accounts acquired in the acquisition of eOne (see Note 2). (2) Represents primarily accounts receivable previously reserved for bad debt from customers in Russia, related to Russia’s invasion of Ukraine. Contract Assets. Deferred Revenue. during the nine months ended | 12. Revenue Revenue by Segment, Market or Product Line The table below presents revenues by segment, market or product line for the fiscal years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Revenue by Type: Motion Picture Theatrical $ 120.7 $ 65.3 $ 12.0 Home Entertainment Digital Media 527.5 497.1 461.5 Packaged Media 70.5 115.0 139.5 Total Home Entertainment 598.0 612.1 601.0 Television 217.8 257.9 230.2 International 365.0 234.4 217.0 Other 22.2 15.6 20.9 Total Motion Picture revenues (1) 1,323.7 1,185.3 1,081.1 Television Production Television 1,144.3 1,094.5 474.0 International 277.7 256.5 164.5 Home Entertainment Digital Media 241.7 85.1 127.1 Packaged Media 3.3 6.9 5.7 Total Home Entertainment 245.0 92.0 132.8 Other 93.1 88.0 60.5 Total Television Production revenues (2) 1,760.1 1,531.0 831.8 Total revenues $ 3,083.8 $ 2,716.3 $ 1,912.9 (1) Total Motion Picture revenues for the years ended March 31, 2023, 2022 and 2021, includes $44.2 million, $38.0 million and $19.8 million, respectively, of revenues from licensing Motion Picture segment product to the Starz Business. (2) Total Television Production revenues for the years ended March 31, 2023, 2022 and 2021, includes $731.3 million, $610.2 million and $184.3 million, respectively, of revenues from licensing Television Production segment product to the Starz Business. Remaining Performance Obligations Remaining performance obligations represent deferred revenue on the balance sheet plus fixed fee or minimum guarantee contracts where the revenue will be recognized and the cash received in the future (i.e., backlog). Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at March 31, 2023 are as follows: Year Ending March 31, 2024 2025 2026 Thereafter Total (Amounts in millions) Remaining Performance Obligations $ 1,053.2 $ 440.1 $ 118.1 $ 86.5 $ 1,697.9 The above table does not include estimates of variable consideration for transactions involving sales or usage-based royalties in exchange for licenses of intellectual property. The revenues included in the above table include all fixed fee contracts regardless of duration. Revenues of $156.5 million, including variable and fixed fee arrangements, were recognized during the year ended March 31, 2023 from performance obligations satisfied prior to March 31, 2022. These revenues were primarily associated with the distribution of television and theatrical product in electronic sell-through and video-on-demand Accounts Receivable, Contract Assets and Deferred Revenue The timing of revenue recognition, billings and cash collections affects the recognition of accounts receivable, contract assets and deferred revenue. See Note 1 for further information. See the combined balance sheets or Note 19 for accounts receivable, contract assets and deferred revenue balances at March 31, 2023 and 2022. Accounts Receivable. The Company performs ongoing credit evaluations and monitors its credit exposure through active review of customers’ financial condition, aging of receivable balances, historical collection trends, and expectations about relevant future events that may significantly affect collectability. The Company generally does not require collateral for its trade accounts receivable. Changes in the provision for doubtful accounts consisted of the following: March 31, 2022 (Benefit) provision (1) Uncollectible written-off (2) March 31, (Amounts in millions) Trade accounts receivable $ 11.4 $ 0.7 $ (3.4 ) $ 8.7 (1) Represents a provision for doubtful accounts offset by collections on accounts receivable previously reserved. (2) Includes $2.5 million related to accounts receivable previously reserved for bad debt from customers in Russia, related to Russia’s invasion of Ukraine. Contract Assets. Deferred Revenue. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Share-Based Compensation | 11. Share-Based Compensation The Company recognized the following share-based compensation expense during the nine months ended December 31, 2023 and 2022: Nine Months Ended 2023 2022 (Amounts in millions) Compensation Expense: Stock options $ 1.4 $ 1.4 Restricted share units and other share-based compensation 32.6 21.6 Share appreciation rights 0.2 0.1 Total Studio employee share-based compensation expense 34.2 23.1 Corporate allocation of share-based compensation 12.1 17.0 $ 46.3 $ 40.1 Impact of accelerated vesting on equity awards (1) 7.3 2.1 Total share-based compensation expense $ 53.6 $ 42.2 (1) Represents the impact of the acceleration of vesting schedules for equity awards pursuant to certain severance arrangements. Share-based compensation expense, by expense category, consisted of the following: Nine Months Ended 2023 2022 (Amounts in millions) Share-Based Compensation Expense: General and administration $ 46.3 $ 40.1 Restructuring and other 7.3 2.1 $ 53.6 $ 42.2 The following table sets forth the stock option, share appreciation rights (“SARs”), restricted stock and restricted share unit activity on grants related directly to the Company employees and Lionsgate corporate and shared service employees during the nine months ended December 31, 2023: Stock Options and SARs Restricted Stock and Restricted Share Units Lions Gate Class A Lions Gate Class B Non-Voting Lions Gate Class A Lions Gate Class B Non-Voting Number Weighted- Number Weighted- Number Weighted- Number Weighted- Grant-Date (Number of shares in millions) Outstanding at March 31, 2023 4.3 $ 26.35 19.0 $ 15.50 — (1) $ 10.95 10.8 $ 9.90 Granted — — 0.3 $ 8.88 0.1 $ 8.87 6.2 $ 8.20 Options exercised or restricted stock or RSUs vested — (1) $ 7.70 (0.1 ) $ 7.11 — (1) $ 10.89 (6.9 ) $ 9.33 Forfeited or expired (1.9 ) $ 30.81 (2.1 ) $ 27.72 — — (0.3 ) $ 8.72 Outstanding at December 31, 2023 2.4 $ 22.96 17.1 $ 13.92 0.1 $ 9.27 9.8 $ 8.69 (1) Represents less than 0.1 million shares. | 13. Share-Based Compensation General. The following disclosures of unit data are based on grants related directly to Company employees and Lionsgate corporate and shared employees, and exclude unit data related to employees of the Starz Business. The amounts presented are not necessarily indicative of future awards and do not necessarily reflect the results that the Company would have experienced as a standalone company for the periods presented. Stock options are generally granted at exercise prices equal to or exceeding the market price of shares of existing Lionsgate common stock at the date of grant. Substantially all stock options vest ratably over one seven one The measurement of all share-based awards uses a fair value method and the recognition of the related share-based compensation expense in the combined financial statements is recorded over the requisite service period. Further, Lionsgate estimates forfeitures for share-based awards that are not expected to vest. As share-based compensation expense allocated to the Company and recognized in the Company’s combined financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Lionsgate Exchange Program. Share-Based Compensation Expense. Year Ended March 31, 2023 2022 2021 (Amounts in millions) Compensation Expense: Stock options $ 2.3 $ 9.6 $ 5.6 Restricted share units and other share-based compensation 39.3 38.6 27.7 Share appreciation rights 0.9 2.4 3.2 Total Studio employee share-based compensation expense 42.5 50.6 36.5 Corporate allocation of share-based compensation 26.7 19.6 18.0 69.2 70.2 54.5 Impact of accelerated vesting on equity awards (1) 4.2 — 3.5 Total share-based compensation expense 73.4 70.2 58.0 Tax impact (2) (17.8 ) (16.7 ) (13.8 ) Reduction in net income $ 55.6 $ 53.5 $ 44.2 (1) Represents the impact of the acceleration of vesting schedules for equity awards pursuant to certain severance arrangements. (2) Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements prior to the effects of changes in the valuation allowance. Share-based compensation expense, by expense category, consisted of the following: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Share-Based Compensation Expense: General and administration $ 69.2 $ 70.2 $ 54.5 Restructuring and other 4.2 — 3.5 $ 73.4 $ 70.2 $ 58.0 Stock Options The following table sets forth the stock option, and share appreciation rights (“SARs”) activity on grants related directly to the Company employees and Lionsgate corporate and shared service employees during the year ended March 31, 2023: Stock Options and SARs Existing Class A Common Stock Existing Class B Common Stock Number Weighted- Weighted- Aggregate (2) Number Weighted- Weighted- Aggregate (2) (Amounts in millions, except for weighted-average exercise price and years) Outstanding at March 31, 2022 5.4 $ 24.34 20.5 $ 15.58 Granted — $ — 0.3 $ 8.97 Exercised — (1) $ 7.70 (0.4 ) $ 10.10 Forfeited or expired (1.1 ) $ 16.81 (1.3 ) $ 16.86 Outstanding at March 31, 2023 4.3 $ 26.35 2.16 $ 0.2 19.1 $ 15.50 5.44 $ 11.6 Vested or expected to vest at March 31, 2023 4.3 $ 26.35 2.16 $ 0.2 19.0 $ 15.52 5.43 $ 11.5 Exercisable at March 31, 2023 4.1 $ 26.60 2.36 $ 0.2 15.2 $ 17.09 4.89 $ 5.1 (1) Represents less than 0.1 million shares. (2) The intrinsic value is calculated for each in the money stock option and SAR as the difference between the closing price of Lionsgate’s common stock on March 31, 2023 and the exercise price. The fair value of each option award is estimated on the date of grant using a closed-form option valuation model (Black-Scholes). The following table presents the weighted average grant-date fair value of options granted in the years ended March 31, 2023, 2022 and 2021, and the weighted average applicable assumptions used in the Black-Scholes option-pricing model for stock options and share-appreciation rights granted during the years then ended: Year Ended March 31, 2023 2022 2021 Weighted average fair value of grants $4.56 $6.16 $3.06 Weighted average assumptions: Risk-free interest rate (1) 2.8% - 3.7% 1.1% - 2.45% 0.2% - 0.9% Expected option lives (in years) (2) 3.5 - 7 3.3 - 7 2.5 - 7 Expected volatility for options (3) 44% 42% - 44% 37% - 42% Expected dividend yield (4) 0% 0% 0% (1) The risk-free rate assumed in valuing the options is based on the U.S. Treasury Yield curve in effect applied against the expected term of the option at the time of the grant. (2) The expected term of options granted represents the period of time that options granted are expected to be outstanding. (3) Expected volatilities are based on implied volatilities from traded options on Lionsgate’s shares, historical volatility of Lionsgate’s shares and other factors. (4) The expected dividend yield is estimated by dividing the expected annual dividend by the market price of Lionsgate’s shares at the date of grant. The total intrinsic value (based on Lionsgate’s share price) of options During the year ended March 31, 2023, less than 0.1 million shares (2022 and 2021—less than 0.1 million shares) were cancelled to fund withholding tax obligations upon exercise of options. Restricted Share Units The following table sets forth the restricted share unit and restricted stock activity on grants related directly to Company employees and Lionsgate corporate and shared service employees during the year ended March 31, 2023: Restricted Share Units and Restricted Stock Existing Class A Weighted- Existing Weighted- (Amounts in millions, except for weighted-average grant date fair value) Outstanding at March 31, 2022 — (1) $ 11.51 5.5 $ 11.87 Granted — (1) $ 10.27 9.3 $ 9.08 Vested — (1) $ 11.19 (3.8 ) $ 11.89 Forfeited — (1) $ 30.56 (0.2 ) $ 10.22 Outstanding at March 31, 2023 — (1) $ 10.95 10.8 $ 9.90 (1) Represents less than 0.1 million shares. The fair values of restricted share units and restricted stock are determined based on the market value of the shares on the date of grant. The total fair value of restricted share units and restricted stock vested during the year ended March 31, 2023 was $40.0 million (2022—$51.0 million, 2021—$26.0 million). The following table summarizes the total remaining unrecognized compensation cost as of March 31, 2023 related to non-vested Total Unrecognized Compensation Cost Weighted Average Remaining Years (Amounts in Stock Options $ 4.9 0.6 Restricted Share Units and Restricted Stock 44.7 1.0 Total (1) $ 49.6 (1) Represents remaining unrecognized compensation cost related to the Company’s employees and an allocation of compensation costs for Lionsgate corporate and shared service employees. Under Lionsgate’s stock option and long term incentive plans, Lionsgate withholds shares to satisfy minimum statutory federal, state and local tax withholding obligations arising from the vesting of restricted share units and restricted stock. During the year ended March 31, 2023, 1.5 million shares (2022 —1.8 million shares, 2021—0.7 million shares) were withheld upon the vesting of restricted share units and restricted stock. Lionsgate, and hence the Company, becomes entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the stock options and restricted share units when vesting or exercise occurs, the restrictions are released and the shares are issued. Restricted share units are forfeited if the employees are terminated prior to vesting. The Company recognized excess tax deficiencies of $8.7 million associated with its equity awards in its tax provision for the year ended March 31, 2023 (2022—benefits of $12.7 million, 2021—deficiencies of $7.7 million). Other Share-Based Compensation Pursuant to the terms of certain employment agreements, during the year ended March 31, 2023, Lionsgate granted the equivalent of $2.3 million (2022—$2.3 million, 2021—$2.3 million) in shares to certain Company employees through the term of their employment contracts, which were recorded as compensation expense in the applicable period. Pursuant to this arrangement, for the year ended March 31, 2023, Lionsgate issued 0.3 million shares (2022—0.1 million shares, 2021-0.3 million shares), net of shares withheld to satisfy minimum tax withholding obligations. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |
Lessee Operating Leases [Line Items] | |
Leases | 9. Leases The Company has operating leases primarily for office space, studio facilities, and other equipment. The Company’s leases have remaining lease terms of up to approximately 7 years. The following disclosures are based on leases whereby the Company has a contract for which the leased asset and lease liability is recognized on the Company’s combined balance sheets and reflect leases related to the Studio Business’s operations and Lionsgate corporate leases. The amounts presented are not necessarily indicative of future lease arrangements and do not necessarily reflect the results that the Company would have experienced as a standalone company for the periods presented. The components of lease cost were as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Operating lease cost (1) $ 35.3 $ 42.1 $ 34.6 Short-term lease cost (2) 145.0 233.1 129.5 Variable lease cost (3) 2.8 1.3 2.5 Total lease cost $ 183.1 $ 276.5 $ 166.6 (1) Operating lease cost amounts primarily represent the amortization of right-of-use (2) Short-term lease cost primarily consists of leases of facilities and equipment associated with film and television productions and are capitalized when incurred. (3) Variable lease cost primarily consists of insurance, taxes, maintenance and other operating costs. Supplemental balance sheet information related to leases was as follows: Category Balance Sheet Location March 31, March 31, Operating Leases (Amounts in millions) Right-of-use Other assets—non-current $ 116.8 $ 126.0 Lease liabilities (current) Other accrued liabilities $ 37.7 $ 31.4 Lease liabilities (non-current) Other liabilities—non-current 96.4 112.7 $ 134.1 $ 144.1 March 31, March 31, Weighted average remaining lease term (in years): Operating leases 4.3 3.6 Weighted average discount rate: Operating leases 3.65 % 2.42 % The expected future payments relating to the Company’s lease liabilities at March 31, 2023 are as follows: Operating Leases (Amounts in Year ending March 31, 2024 $ 41.7 2025 32.4 2026 24.6 2027 17.1 2028 16.2 Thereafter 13.3 Total lease payments 145.3 Less imputed interest (11.2 ) Total $ 134.1 As of March 31, 2023, the Company has entered into certain leases that have not yet commenced primarily related to studio facilities, certain of which are owned by an equity-method investee, for which construction related to those leases has not yet been completed. The leases are for terms up to 10.5 years, commencing upon completion of construction (currently expected to be ranging from calendar years 2023 to 2025). The leases include an option to terminate the leases prior to expiration of lease year seven, and an option to extend the initial term for an additional 10 years. The total minimum lease payments under these leases in aggregate are approximately $254.1 million. See Note 20 for further information related to leases with equity-method investees. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Measurements | NOTE 11-RECURRING FAIR VALUE MEASUREMENT As of March 31, 2024, investment securities in the Company’s Trust Account consisted of $ 804,228,813 in a demand deposit account. As of December 31, 2023, investment securities in the Company’s Trust Account consisted of $ 794,750,266 in a money market fund. See Note 6 for fair value information for the Trust Account. The fair value of private placement warrants was initially and subsequently measured at fair value using a Black-Scholes Option Pricing Model. For the three months ended March 31, 2024, the Company recognized a gain resulting from a decrease in the fair value of the private placement warrants of $ 234,667 . The gain from change in fair value of the private placement warrants are presented as change in fair value of warrant liability in the accompanying unaudited consolidated statement 469,333 , presented as change in fair value of warrant liability in the accompanying unaudited consolidated statement The following table sets forth by level within the fair value hierarchy the Company’s liability that was accounted for at fair value on a recurring basis: (Level 1) (Level 2) (Level 3) Private placement warrants as of March 31, 2024 $ — $ — $ 234,667 PIPE with reduction right liability as of March 31, 2024 $ — $ — $ 19,399,127 (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2023 $ — $ — $ 469,333 PIPE with reduction right liability as of December 31, 2023 $ — $ — $ 18,253,010 The following table provides quantitative information regarding Level 3 fair value measurements inputs as of their measurement dates: March 31, December 31, Ordinary share price $ 10.70 $ 10.60 Exercise price $ 11.50 $ 11.50 Volatility 40 % 45 % Term 5.11 5.28 Risk-free rate 4.21 % 3.85 % Dividend yield 0 % 0 % Probability of completing Lionsgate Business Combination (1) 94.9 % 91.0 % Probability of completing a different business combination 0.6 % (2) 0.8 % ( 3 ) Note: The private placement will be forfeited for no consideration if the announced Lionsgate Business Combination is completed (estimated probability of 94.9 % as of March 31, 2024). (1) Estimated by solving for the implied probability of completing the Lionsgate Business Combination based on the public warrant price and the contemplated exchange price of $0.50, adjusted for the time value of money. (2) Derived as follows: 11%*(1-94.9%), where 11 % represents the probability of completing a different business combination based on public trading of rights for special purpose acquisition companies and 94.9 % represents the probability of completing the Lionsgate Business Combination. (3) Derived as follows: 9%*(1-91%), where 9 % represents the probability of completing a different business combination based on public trading of rights for special purpose acquisition companies and 91 % represents the probability of completing the Lionsgate Business Combination. The change in the fair value of the warrant liabilities for the three months ended March 31, 2024 and 2023 is summarized as follows: Level 3 Derivative warrant liability at December 31, 2023 $ 469,333 Change in fair value of derivative warrant liability (234,666 ) Level 3 Derivative warrant liability at March 31, 2024 $ 234,667 Level 3 Derivative warrant liability at December 31, 202 2 $ 3,285,333 Change in fair value of derivative warrant liability (469,333 ) Level 3 Derivative warrant liability at March 31, 202 3 $ 2,816,000 The following table provides quantitative information regarding Level 3 fair value measurement inputs for the PIPE with reduction right liability as of their measurement dates: Inputs: As of As of Ordinary share stock price $ 10.70 $ 10.60 Term (1) 0.11 0.28 Risk-free rate of interest (2) 5.37 % 5.20 % Probability of completing the Lionsgate Business Combination (3) 94.9 % 91 % (1) Assumes the transaction closes on May 10, 2024 as of March 31, 2024 and April 10, 2024 as of December 31, 2023. (2) Reflects 1-month 3-month (3) Estimated by solving for the implied probability of completing the Lionsgate Business Combination based on the public warrant price and the contemplated exchange price of $0.50, adjusted for the time value of money. The change in the fair value of the PIPE with reduction right liability for the quarter ended March 31, 2024 is summarized as follows: Level 3 PIPE reduction right liability December 31, 2022 $ — Issuance of PIPE with reduction right liability on December 22, 2023 18,797,300 Change in fair value of PIPE reduction right liability (544,290 ) Level 3 PIPE reduction right liability December 31, 2023 18,253,010 Change in fair value of PIPE reduction right liability 1,146,117 Level 3 PIPE reduction right liability March 31, 2024 $ 19,399,127 | Note 11-Recurring Fair Value Measurements As of December 31, 2023, investment securities in the Company’s Trust Account consisted of $ in a money market fund. As of December 31, 2022, investment securities in the Company’s Trust Account consisted of $ in United States Treasury Bills and $ The fair value of private placement warrants was initially and subsequently measured at fair value using a Black-Scholes Option Pricing Model. For the year s ate The fair value of the PIPE with reduction right liability was initially and subsequently measured at fair value utilizing observable market prices for public shares, relative to the present value of contractual cash proceeds, each adjusted for the probability of closing the Business Combination with StudioCo. For the year ended December 31, 2023, the Company recognized a PIPE with reduction right expense of $18,797,300 and a gain resulting from a decrease in the fair value of the PIPE with reduction right liability of $544,290. The gain is presented as a change in fair value of PIPE with reduction right liability in the accompanying consolidated statements of operations. The following table sets forth by level within the fair value hierarchy the Company’s liabilities that were accounted for at fair value on a recurring basis: (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2023 $ — $ — $ 469,333 PIPE with reduction right liability as of December 31, 2023 $ — $ — $ 18,253,010 (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2022 $ — $ — $ 3,285,333 The following table provides quantitative information regarding Level 3 fair value measurement inputs for the private placement warrants as of their measurement dates: Inputs: As of December 31, 2023 As of December 31, 2022 Ordinary share stock price $ 10.60 $ 9.94 Exercise price 11.50 11.50 Volatility 45 % 31 % Term 5.28 5.75 Risk-free rate of interest 3.85 % 3.98 % Dividend yield 0 % 0 % Probability of completing the Business Combination 91 % (1) N/A Probability of completing a different business combination 0.8 % (2) 9 % (3) Note: The private placement will be forfeited for no consideration if the announced Business Combination with StudioCo is completed (estimated probability of (1) Estimated by solving for the implied probability of completing the Business Combination with StudioCo (2) Derived as follows: 9%*(1-91%), with StudioCo (3) Based on public trading of rights for special purpose acquisition companies and their implied business combination probabilities as of December 31, 2022. The change in the fair value of the warrant liabilities for the years ended December 31, 2022 and 2023, respectively, is summarized as follows: Level 3 Derivative warrant liability at December 31, 2021 $ — Issuance of Private Warrants on January 10, 2022 17,482,666 Change in fair value of derivative warrant liability (14,197,333 ) Level 3 Derivative warrant liability at December 31, 2022 3,285,333 Change in fair value of derivative warrant liability (2,816,000 ) Level 3 Derivative warrant liability at December 31, 2023 $ 469,333 The following table provides quantitative information regarding Level 3 fair value measurement inputs for the PIPE with reduction right liability as of their measurement dates: Inputs: As of As of Ordinary share stock price $ 10.62 $ 10.60 Term (1) 0.30 0.28 Risk-free rate of interest (2) 5.24 % 5.20 % Probability of completing the Business Combination (3) 91 % 91 % (1) Assumes the transaction closes on April 10, 2024. (2) Reflects 3-month US treasury, secondary market rate as of the valuation date. (3) Estimated by solving for the implied probability of completing the Business Combination with St u based on the public warrant price and the contemplated exchange price of $ 0.50 , adjusted for the time value of money. The change in the fair value of the PIPE with reduction right liability for the year ended December 31, 2023 is summarized as follows: Level 3 PIPE reduction right liability December 31, 2022 $ — Issuance of PIPE with 18,797,300 Change in fair value of PIPE reduction right liability (544,290 ) Level 3 PIPE with $ 18,253,010 | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Measurements | 8. Fair Value Measurements Fair Value Accounting guidance and standards about fair value define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value Hierarchy Fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting guidance and standards establish three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of December 31, 2023 and March 31, 2023: December 31, 2023 March 31, 2023 Level 1 Level 2 Total Level 1 Level 2 Total (Amounts in millions) Assets: Forward exchange contracts (see Note 16) $ — $ — $ — $ — $ 2.9 $ 2.9 Interest rate swaps (see Note 16) — 34.2 34.2 — 41.1 41.1 Liabilities: Forward exchange contracts (see Note 16) — (2.1 ) (2.1 ) — (0.1 ) (0.1 ) The following table sets forth the carrying values and fair values of the Company’s outstanding debt and film related obligations at December 31, 2023 and March 31, 2023: December 31, 2023 March 31, 2023 (Amounts in millions) Carrying Value Fair Value (1) Carrying Fair Value (1) (Level 2) (Level 2) Term Loan A $ 404.1 $ 403.0 $ 424.2 $ 415.4 Term Loan B 819.5 814.1 827.2 817.1 Production Loans 1,275.4 1,279.2 1,346.1 1,349.9 Production Tax Credit Facility 248.4 250.0 229.4 231.8 Backlog Facility and Other 173.9 175.0 223.7 226.0 IP Credit Facility 114.9 117.3 140.8 143.8 (1) The Company measures the fair value of its outstanding debt and interest rate swaps using discounted cash flow techniques that use observable market inputs, such as SOFR-based yield curves, swap rates, and credit ratings (Level 2 measurements). The Company’s financial instruments also include cash and cash equivalents, accounts receivable, accounts payable, content related payables, other accrued liabilities, other liabilities, and borrowings under the Revolving Credit Facility, if any. The carrying values of these financial instruments approximated the fair values at December 31, 2023 and March 31, 2023. | 10. Fair Value Measurements Fair Value Accounting guidance and standards about fair value define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value Hierarchy Fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting guidance and standards establish three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of March 31, 2023 and 2022: March 31, 2023 March 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in millions) Equity securities with a readily determinable fair value $ — $ — $ — $ 0.5 $ — $ 0.5 Forward exchange contracts (see Note 18) — 2.9 2.9 — 3.5 3.5 Interest rate swaps (see Note 18) (1) — 41.1 41.1 — 120.1 120.1 Liabilities: Forward exchange contracts (see Note 18) — (0.1 ) (0.1 ) — (2.8 ) (2.8 ) Interest rate swaps (see Note 18) — — — — 28.6 28.6 (1) Amounts at March 31, 2022 exclude $88.1 million of financing component of interest rate swaps presented in the table below (none at March 31, 2023). The following table sets forth the carrying values and fair values of the Company’s outstanding debt, film related obligations, and interest rate swaps at March 31, 2023 and 2022: March 31, 2023 March 31, 2022 (Amounts in millions) Carrying Value Fair (1) Carrying Fair (1) (Level 2) (Level 2) Term Loan A $ 424.2 $ 415.4 $ 631.9 $ 625.7 Term Loan B 827.2 817.1 837.5 828.3 Production Loans 1,346.1 1,349.9 963.7 966.3 Production Tax Credit Facility 229.4 231.8 221.1 224.0 Backlog Facility and Other 223.7 226.0 — — IP Credit Facility 140.8 143.8 120.6 123.5 Financing component of interest rate swaps (2) — — 134.0 122.9 (1) The Company measures the fair value of its outstanding debt and interest rate swaps using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements). (2) Amounts at March 31, 2022 include $88.1 million recorded as a reduction of assets under master netting arrangements (none at March 31, 2023). The Company’s financial instruments also include cash and cash equivalents, accounts receivable, accounts payable, content related payables, other accrued liabilities, other liabilities, and borrowings under the Revolving Credit Facility, if any. The carrying values of these financial instruments approximated the fair values at March 31, 2023 and 2022. |
Income Taxes
Income Taxes | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Income Taxes | 12. Income Taxes For purposes of the condensed combined financial statements, income taxes have been calculated as if the Company files income tax returns on a standalone basis. The Company’s U.S. operations and certain of its non-U.S. The income tax provision for the nine months ended December 31, 2023 and 2022 is calculated by estimating the Company’s annual effective tax rate (estimated annual tax provision divided by estimated annual income before income taxes), and then applying the effective tax rate to income (loss) before income taxes for the period, plus or minus the tax effects of items that relate discretely to the period, if any. The Company’s income tax provision differs from the federal statutory rate multiplied by pre-tax pre-tax The Company’s income tax provision can be affected by many factors, including the overall level of pre-tax pre-tax | 14. Income Taxes The components of pretax income (loss), net of intercompany eliminations, are as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) United States $ (33.5 ) $ 20.4 $ (26.4 ) International 38.9 (9.2 ) 8.5 $ 5.4 $ 11.2 $ (17.9 ) The Company’s current and deferred income tax provision are as follows: Year Ended March 31, 2023 2022 2021 Current provision: (Amounts in millions) Federal $ 3.1 $ 5.7 $ 3.8 States (0.5 ) 3.2 8.1 International 10.0 7.2 3.5 Total current provision 12.6 16.1 15.4 Deferred provision: Federal 0.5 0.9 1.0 States (0.1 ) 0.3 0.9 International 1.3 — — Total deferred provision 1.7 1.2 1.9 Total provision for income taxes $ 14.3 $ 17.3 $ 17.3 The Company’s income tax provision differs from the federal statutory rate multiplied by pre-tax pre-tax The differences between income taxes expected at U.S. statutory income tax rates and the income tax provision are as set forth below: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Income taxes computed at Federal statutory rate $ 1.1 $ 2.4 $ (3.7 ) Foreign operations subject to different income tax rates 5.0 7.1 5.1 State income tax (0.6 ) 3.5 9.0 Remeasurements of originating deferred tax assets and liabilities (4.7 ) (9.2 ) 9.9 Permanent differences 2.1 — (1.1 ) Nondeductible share-based compensation 1.8 (2.7 ) 1.6 Nondeductible officers compensation 9.8 5.1 7.1 Non-controlling 1.8 3.7 3.3 Foreign derived intangible income (1.4 ) — (5.9 ) Other 1.7 1.5 0.5 Changes in valuation allowance (2.3 ) 5.9 (8.5 ) Total provision for income taxes $ 14.3 $ 17.3 $ 17.3 The income tax effects of temporary differences between the book value and tax basis of assets and liabilities are as follows: March 31, 2023 March 31, 2022 (Amounts in millions) Deferred tax assets: Net operating losses $ 94.1 $ 103.0 Foreign tax credits 7.2 3.8 Accrued compensation 50.7 45.5 Operating leases- liabilities 24.4 26.5 Other assets 14.5 34.6 Reserves 8.0 10.7 Interest 21.8 — Total deferred tax assets 220.7 224.1 Valuation allowance (152.2 ) (184.6 ) Deferred tax assets, net of valuation allowance 68.5 39.5 Deferred tax liabilities: Intangible assets (8.0 ) (7.7 ) Investment in film and television programs (3.6 ) (3.5 ) Unrealized gains on derivative contracts (33.5 ) (11.4 ) Operating leases—assets (21.9 ) (23.9 ) Other (19.6 ) (9.4 ) Total deferred tax liabilities (86.6 ) (55.9 ) Net deferred tax liabilities $ (18.1 ) $ (16.4 ) The Company has recorded valuation allowances for certain deferred tax assets, which are primarily related to U.S. and foreign net operating loss carryforwards and U.S. foreign tax credit carryforwards as sufficient uncertainty exists regarding the future realization of these assets. As computed on a separate return basis, with the combined historical results of the Studio Business presented on a managed basis as discussed in Note 1, at March 31, 2023, the Company had U.S. net operating loss carryforwards (“NOLs”) of approximately $27.0 million, which would not expire, and state NOLs of approximately $53.9 million, which would expire in varying amounts beginning in 2024 2032 The following table summarizes the changes to the gross unrecognized tax benefits, exclusive of interest and penalties, for the years ended March 31, 2023, 2022 and 2021: Amounts in millions Gross unrecognized tax benefits at March 31, 2020 $ 0.6 Increases related to current year tax position — Increases related to prior year tax positions — Decreases related to prior year tax positions — Settlements — Lapse in statute of limitations — Gross unrecognized tax benefits at March 31, 2021 0.6 Increases related to current year tax position — Increases related to prior year tax positions 0.4 Decreases related to prior year tax positions — Settlements — Lapse in statute of limitations — Gross unrecognized tax benefits at March 31, 2022 1.0 Increases related to current year tax position — Increases related to prior year tax positions — Decreases related to prior year tax positions — Settlements — Lapse in statute of limitations (0.7 ) Gross unrecognized tax benefits at March 31, 2023 $ 0.3 The Company records interest and penalties on unrecognized tax benefits as part of its income tax provision. For the years ended March 31, 2023, 2022 and 2021, the Company recognized insignificant amounts of net interest and penalties related to uncertain tax positions. The total amount of unrecognized tax benefits as of March 31, 2023 that, if recognized, would benefit the Company’s tax provision are $0.4 million. The Company estimates the liability for unrecognized tax benefits will not decrease in the next twelve months. The Company is subject to taxation in the U.S. and various state, local, and foreign jurisdictions. To the extent allowed by law, the taxing authorities may have the right to examine prior periods where NOLs were generated and carried forward and make adjustments up to the amount of the NOLs. Currently, audits are occurring in various U.S. federal, state and local tax jurisdictions for tax years ended in 2018 through 2020. Lionsgate is currently under examination by the Canadian tax authority for the years ended March 31, 2018 through March 31, 2019. |
Restructuring and Other
Restructuring and Other | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Restructuring and Other | 13. Restructuring and Other Restructuring and other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, when applicable. During the nine months ended December 31, 2023 and 2022, the Company also incurred certain other unusual charges or benefits, which are included in direct operating expense in the condensed combined statements of operations and are described below. The following table sets forth restructuring and other and these other unusual charges or benefits and the statement of operations line items they are included in for the nine months ended December 31, 2023 and 2022: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Restructuring and other: Other impairments (1) $ — $ 5.9 Severance (2) Cash 24.3 9.2 Accelerated vesting on equity awards (see Note 11) 7.3 2.1 Total severance costs 31.6 11.3 COVID-19 — 0.1 Transaction and other costs (3) 29.9 3.3 Total Restructuring and Other 61.5 20.6 Other unusual charges not included in restructuring and other or the Company’s operating segments: Content charges included in direct operating expense (4) 1.1 7.7 COVID-19 (5) (0.5 ) (6.2 ) Total restructuring and other and other unusual charges not included in restructuring and other $ 62.1 $ 22.1 (1) Amounts in the nine months ended December 31, 2022 include an impairment of an operating lease right-of-use (2) Severance costs were primarily related to restructuring activities and other cost-saving initiatives. In the nine months ended December 31, 2023, amounts were due to restructuring activities including integration of the acquisition of eOne, and our Motion Picture and Television Production segments. (3) Transaction and other costs in the nine months ended December 31, 2023 includes approximately $16.6 million of a loss associated with a theft at a production of a 51% owned consolidated entity. The Company expects to recover a portion of this amount under its insurance coverage and from the noncontrolling interest holders of this entity. In addition, amounts in the nine months ended December 31, 2023 and 2022 reflect transaction, integration and legal costs associated with certain strategic transactions, and restructuring activities and also include costs and benefits associated with certain legal matters. (4) In the nine months ended December 31, 2022, the amounts represent development costs written off as a result of changes in strategy across the Company’s theatrical slate in connection with certain management changes and changes in the theatrical marketplace in the Motion Picture segment. These charges are excluded from segment results and included in amortization of investment in film and television programs in direct operating expense on the combined statements of operations. (5) Amounts include incremental costs, if any, incurred due to circumstances associated with the COVID-19 Changes in the restructuring and other severance liability were as follows for the nine months ended December 31, 2023 and 2022: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Severance liability Beginning balance $ 3.7 $ 0.8 Accruals 24.3 9.2 Severance payments (5.4 ) (3.7 ) Ending balance (1) $ 22.6 $ 6.3 (1) As of December 31, 2023, the remaining severance liability of approximately $22.6 million is expected to be paid in the next 12 months. | 15. Restructuring and Other Restructuring and other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, when applicable. During the years ended March 31, 2023, 2022 and 2021, the Company also incurred certain other unusual charges, which are included in direct operating expense and distribution and marketing expense in the combined statements of operations and are described below. The following table sets forth restructuring and other and these other unusual charges or benefits and the statement of operations line items they are included in for the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Restructuring and other: Other impairments (1) $ 5.9 $ — $ — Severance (2) Cash 10.8 2.8 12.4 Accelerated vesting on equity awards (see Note 13) 4.2 — 3.5 Total severance costs 15.0 2.8 15.9 COVID-19 (3) 0.1 1.0 2.4 Transaction and other costs (4) 6.2 2.5 2.8 Total Restructuring and Other 27.2 6.3 21.1 Other unusual charges not included in restructuring and other: Content charges included in direct operating expense (5) 8.1 — — COVID-19 Direct operating expense (6) (8.9 ) (5.2 ) 34.2 Distribution and marketing expense (6) — — 16.7 Charges related to Russia’s invasion of Ukraine included in direct operating expense (7) — 5.9 — Total restructuring and other and other unusual charges not included in restructuring and other $ 26.4 $ 7.0 $ 72.0 (1) Amounts in the fiscal year ended March 31, 2023 include impairment of an operating lease right-of-use (2) Severance costs in the fiscal years ended March 31, 2023, 2022 and 2021 were primarily related to restructuring activities and other cost-saving initiatives. (3) Amounts represent certain incremental general and administrative costs associated with the COVID-19 return-to-office COVID-19 (4) Transaction and other costs in the fiscal years ended March 31, 2023, 2022 and 2021 reflect transaction, integration and legal costs associated with certain strategic transactions, and restructuring activities and also include costs and benefits associated with legal matters. (5) Amounts represent development costs of $7.2 million written off as a result of changes in strategy across the Company’s theatrical slate in connection with certain management changes and changes in the theatrical marketplace in the Motion Picture segment, with the remaining amount reflecting other corporate development costs written off. These charges are excluded from segment results and included in amortization of investment in film and television programs in direct operating expense on the combined statement of operations. (6) Amounts reflected in direct operating expense include incremental costs associated with the pausing and restarting of productions including paying/hiring certain cast and crew, maintaining idle facilities and equipment costs resulting from circumstances associated with the COVID-19 insurance recoveries of $8.4 million, $15.6 million and immaterial amounts in fiscal 2023, 2022 and 2021, respectively. In fiscal 2021, these charges also included film impairment due to changes in performance expectations resulting from circumstances associated with the COVID-19 (7) Amounts represent charges related to Russia’s invasion of Ukraine, primarily related to bad debt reserves for accounts receivable from customers in Russia, included in direct operating expense in the combined statements of operations. Changes in the restructuring and other severance liability were as follows for the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Severance liability Beginning balance $ 0.8 $ 3.9 $ 8.1 Accruals 10.8 2.8 12.4 Severance payments (7.9 ) (5.9 ) (16.6 ) Ending balance (1) $ 3.7 $ 0.8 $ 3.9 (1) As of March 31, 2023, the remaining severance liability of approximately $3.7 million is expected to be paid in the next 12 months. |
Segment Information
Segment Information | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Information | 14. Segment Information The Company’s reportable segments have been determined based on the distinct nature of their operations, the Company’s internal management structure, and the financial information that is evaluated regularly by the Company’s chief operating decision maker. The Company has two reportable business segments: (1) Motion Picture and (2) Television Production. Motion Picture. Television Production. non-fiction Segment information is presented in the table below: Nine Months Ended 2023 2022 (Amounts in millions) Segment revenues Motion Picture $ 1,245.6 $ 791.6 Television Production 860.7 1,468.6 Total revenue $ 2,106.3 $ 2,260.2 Gross contribution Motion Picture $ 320.3 $ 248.9 Television Production 134.6 136.6 Total gross contribution 454.9 385.5 Segment general and administration Motion Picture 83.2 66.2 Television Production 40.5 32.0 Total segment general and administration 123.7 98.2 Segment profit Motion Picture 237.1 182.7 Television Production 94.1 104.6 Total segment profit $ 331.2 $ 287.3 The Company’s primary measure of segment performance is segment profit. Segment profit is defined as gross contribution (revenues, less direct operating and distribution and marketing expense) less segment general and administration expenses. Segment profit excludes, when applicable, corporate and allocated general and administrative expense, restructuring and other costs, share-based compensation, certain content charges as a result of changes in management and/or content strategy, certain charges related to the COVID-19 The reconciliation of total segment profit to the Company’s income (loss) before income taxes is as follows: Nine Months Ended 2023 2022 (Amounts in millions) Company’s total segment profit $ 331.2 $ 287.3 Corporate general and administrative expenses (1) (76.2 ) (57.7 ) Adjusted depreciation and amortization (2) (7.1 ) (8.9 ) Restructuring and other (3) (61.5 ) (20.6 ) COVID-19 (4) 0.5 6.2 Content charges (5) (1.1 ) (7.7 ) Adjusted share-based compensation expense 6) (46.3 ) (40.1 ) Purchase accounting and related adjustments (7) (19.4 ) (51.4 ) Operating income 120.1 107.1 Interest expense (157.1 ) (117.8 ) Interest and other income 6.9 4.9 Other expense (14.3 ) (17.2 ) Loss on extinguishment of debt — (1.3 ) Gain on investments, net 2.7 42.1 Equity interests income 5.7 0.8 Income (loss) before income taxes $ (36.0 ) $ 18.6 (1) Corporate general and administrative expenses reflect the allocations of certain general and administrative expenses from Lionsgate related to certain corporate and shared service functions historically provided by Lionsgate, including, but not limited to, executive oversight, accounting, tax, legal, human resources, occupancy, and other shared services (see Note 1 and Note 18 for further information). Amount excludes allocation of share-based compensation expense discussed below. The costs included in corporate general and administrative expenses represent certain corporate executive expense (such as salaries and wages for the office of the Chief Executive Officer, Chief Financial Officer, General Counsel and other corporate officers), investor relations costs, costs of maintaining corporate facilities, and other unallocated common administrative support functions, including corporate accounting, finance and financial reporting, internal and external audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense. (2) Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed combined statements of operations less the depreciation and amortization related to the non-cash Nine Months Ended 2023 2022 (Amounts in millions) Depreciation and amortization $ 11.1 $ 13.2 Less: Amount included in purchase accounting and related adjustments (4.0 ) (4.3 ) Adjusted depreciation and amortization $ 7.1 $ 8.9 (3) Restructuring and other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, when applicable. See Note 13 for further information on restructuring and other. (4) Amounts represent the incremental costs included in direct operating expense resulting from circumstances associated with the COVID-19 (5) Content charges represent certain charges included in direct operating expense in the combined statements of operations, and excluded from segment operating results (see Note 13 for further information). (6) The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Total share-based compensation expense (i) $ 53.6 $ 42.2 Less: Amount included in restructuring and other (ii) (7.3 ) (2.1 ) Adjusted share-based compensation $ 46.3 $ 40.1 (i) Total share-based compensation expense in the nine months ended December 31, 2023 and 2022 includes $12.1 million and $17.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense. (ii) Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of vesting schedules for equity awards pursuant to certain severance arrangements. (7) Purchase accounting and related adjustments primarily represent the amortization of non-cash Nine Months Ended 2023 2022 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ — $ 0.7 General and administrative expense (i) 15.4 46.4 Depreciation and amortization 4.0 4.3 $ 19.4 $ 51.4 (i) These adjustments include the non-cash non-cash equity interest in the distributable earnings of 3 Arts Entertainment are reflected as an expense rather than noncontrolling interest in the combined statements of operations due to the relationship to continued employment. Nine Months Ended 2023 2022 (Amounts in millions) Amortization of recoupable portion of the purchase price $ 1.3 $ 5.7 Noncontrolling interest discount amortization — 13.3 Noncontrolling equity interest in distributable earnings 14.1 27.4 $ 15.4 $ 46.4 See Note 10 for revenues by media or product line as broken down by segment for the nine months ended December 31, 2023 and 2022. The following table reconciles segment general and administration expense to the Company’s total combined general and administration expense: Nine Months Ended 2023 2022 (Amounts in millions) General and administration Segment general and administrative expenses $ 123.7 $ 98.2 Corporate general and administrative expenses 76.2 57.7 Share-based compensation expense included in general and administrative expense (1) 46.3 40.1 Purchase accounting and related adjustments 15.4 46.4 $ 261.6 $ 242.4 (1) Includes share-based compensation expense related to the allocation of Lionsgate corporate and shared employee share-based compensation expenses of $12.1 million in the nine months ended December 31, 2023 (2022—$17.0 million). The reconciliation of total segment assets to the Company’s total combined assets is as follows: December 31, March 31, (Amounts in millions) Assets Motion Picture $ 1,744.2 $ 1,759.4 Television Production 2,393.6 1,949.1 Other unallocated assets (1) 981.3 704.2 $ 5,119.1 $ 4,412.7 (1) Other unallocated assets primarily consist of cash, other assets and investments. | 16. Segment Information The Company’s reportable segments have been determined based on the distinct nature of their operations, the Company’s internal management structure, and the financial information that is evaluated regularly by the Company’s chief operating decision maker. The Company has two reportable business segments: (1) Motion Picture and (2) Television Production. Motion Picture. Television Production. non-fiction Segment information is presented in the table below: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Segment revenues Motion Picture $ 1,323.7 $ 1,185.3 $ 1,081.1 Television Production 1,760.1 1,531.0 831.8 Total revenue $ 3,083.8 $ 2,716.3 $ 1,912.9 Gross contribution Motion Picture $ 386.3 $ 356.0 $ 401.8 Television Production 185.3 124.1 126.3 Total gross contribution 571.6 480.1 528.1 Segment general and administration Motion Picture 109.8 93.1 106.2 Television Production 51.9 40.2 42.7 Total segment general and administration 161.7 133.3 148.9 Segment profit Motion Picture 276.5 262.9 295.6 Television Production 133.4 83.9 83.6 Total segment profit $ 409.9 $ 346.8 $ 379.2 The Company’s primary measure of segment performance is segment profit. Segment profit is defined as gross contribution (revenues, less direct operating and distribution and marketing expense) less segment general and administration expenses. Segment profit excludes, when applicable, corporate and allocated general and administrative expense, restructuring and other costs, share-based compensation, certain charges related to the COVID-19 The reconciliation of total segment profit to the Company’s income (loss) before income taxes is as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Company’s total segment profit $ 409.9 $ 346.8 $ 379.2 Corporate general and administrative expenses (1) (100.9 ) (80.0 ) (91.4 ) Adjusted depreciation and amortization (2) (12.2 ) (12.4 ) (13.4 ) Restructuring and other (3) (27.2 ) (6.3 ) (21.1 ) COVID-19 (4) 8.9 5.2 (50.9 ) Content charges (5) (8.1 ) — — Charges related to Russia’s invasion of Ukraine (6) — (5.9 ) — Adjusted share-based compensation expense (7) (69.2 ) (70.2 ) (54.5 ) Purchase accounting and related adjustments (8) (61.6 ) (65.3 ) (52.0 ) Operating income 139.6 111.9 95.9 Interest expense (162.6 ) (115.0 ) (109.7 ) Interest and other income 6.4 28.0 6.1 Other expense (21.2 ) (8.6 ) (4.7 ) Loss on extinguishment of debt (1.3 ) (3.4 ) — Gain on investments 44.0 1.3 0.6 Equity interests income (loss) 0.5 (3.0 ) (6.1 ) Income (loss) before income taxes $ 5.4 $ 11.2 $ (17.9 ) (1) Corporate general and administrative expenses reflect the allocations of certain general and administrative expenses from Lionsgate related to certain corporate and shared service functions historically provided by Lionsgate, including, but not limited to, executive oversight, accounting, tax, legal, human resources, occupancy, and other shared services (see Note 1 and Note 20 for further information). Amount excludes allocation of share-based compensation expense discussed below. The costs included in corporate general and administrative expenses represent certain corporate executive expense (such as salaries and wages for the office of the Chief Executive Officer, Chief Financial Officer, General Counsel and other corporate officers), investor relations costs, costs of maintaining corporate facilities, and other unallocated common administrative support functions, including corporate accounting, finance and financial reporting, internal and external audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense. (2) Adjusted depreciation and amortization represents depreciation and amortization as presented on the combined statements of operations less the depreciation and amortization related to the non-cash Year Ended March 31, 2023 2022 2021 (Amounts in millions) Depreciation and amortization $ 17.9 $ 18.1 $ 17.2 Less: Amount included in purchase accounting and related adjustments (5.7 ) (5.7 ) (3.8 ) Adjusted depreciation and amortization $ 12.2 $ 12.4 $ 13.4 (3) Restructuring and includes and costs transaction related and unusual when applicable Note further restructuring other (4) Amounts represent the incremental costs included in direct operating expense and distribution and marketing expense resulting from circumstances associated with the COVID-19 (5) Content charges represent certain charges included in direct operating expense in the combined statements of operations, and excluded from segment operating results (see Note 15 for further information). (6) Amounts represent charges related to Russia’s invasion of Ukraine, primarily related to bad debt reserves for accounts receivable from customers in Russia, included in direct operating expense in the combined statements of operations, and excluded from segment operating results. (7) The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Total share-based compensation expense (i) $ 73.4 $ 70.2 $ 58.0 Less: Amount included in restructuring and other (ii) (4.2 ) — (3.5 ) Adjusted share-based compensation $ 69.2 $ 70.2 $ 54.5 (i) Total share-based compensation expense in the years ended March 31, 2023, 2022 and 2021 includes $26.7 million, $19.6 million and $18.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense. (ii) Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. (8) Purchase accounting and related adjustments primarily represent the amortization of non-cash Year Ended March 31, 2023 2022 2021 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 0.7 $ 0.4 $ 1.0 General and administrative expense (i) 55.2 59.2 47.2 Depreciation and amortization 5.7 5.7 3.8 $ 61.6 $ 65.3 $ 52.0 (i) These adjustments include the non-cash non-cash Year Ended March 31, 2023 2022 2021 (Amounts in millions) Amortization of recoupable portion of the purchase price $ 7.7 $ 7.7 $ 7.7 Noncontrolling interest discount amortization 13.2 22.7 22.7 Noncontrolling equity interest in distributable earnings 34.3 28.8 16.8 $ 55.2 $ 59.2 $ 47.2 See Note 12 for revenues by media or product line as broken down by segment for the fiscal years ended March 31, 2023, 2022 and 2021. The following table reconciles segment general and administration to the Company’s total combined general and administration expense: Year Ended March 31, 2023 2022 2021 (Amounts in millions) General and administration Segment general and administrative expenses $ 161.7 $ 133.3 $ 148.9 Corporate general and administrative expenses 100.9 80.0 91.4 Share-based compensation expense included in general and administrative (1) 69.2 70.2 54.5 Purchase accounting and related adjustments 55.2 59.2 47.2 $ 387.0 $ 342.7 $ 342.0 (1) Includes share-based compensation expense related to the allocation of Lionsgate corporate and shared employee share-based compensation expenses of $26.7 million in fiscal year 2023 (2022- $19.6 million, 2021—$18.0 million). The reconciliation of total segment assets to the Company’s total combined assets is as follows: March 31, March 31, (Amounts in millions) Assets Motion Picture $ 1,759.4 $ 1,622.6 Television Production 1,949.1 1,978.9 Other unallocated assets (1) 704.2 724.2 $ 4,412.7 $ 4,325.7 (1) Other unallocated assets primarily consist of cash, other assets and investments. The following table sets forth acquisition of investment in films and television programs, as broken down by segment for the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Acquisition of investment in films and television programs Motion Picture $ 484.5 $ 463.1 $ 325.8 Television Production 1,083.9 1,287.0 856.1 $ 1,568.4 $ 1,750.1 $ 1,181.9 The following table sets forth capital expenditures, as broken down by segment for the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Capital expenditures Motion Picture $ — $ — $ — Television Production 0.3 0.4 0.4 Corporate (1) 6.2 5.7 9.8 $ 6.5 $ 6.1 $ 10.2 (1) Represents unallocated capital expenditures primarily related to the Company’s corporate headquarters. Revenue by geographic location, based on the location of the customers, with no other foreign country individually comprising greater than 10% of total revenue, is as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Revenue Canada $ 64.0 $ 56.7 $ 41.0 United States 2,348.8 2,084.0 1,470.8 Other foreign 671.0 575.6 401.1 $ 3,083.8 $ 2,716.3 $ 1,912.9 Long-lived assets by geographic location are as follows: March 31, March 31, (Amounts in millions) Long-lived assets (1) United States $ 1,736.5 $ 1,859.7 Other foreign 190.8 164.2 $ 1,927.3 $ 2,023.9 (1) Long-lived assets represents total assets less the following: current assets, investments, long-term receivables, intangible assets, goodwill and deferred tax assets. For the years ended March 31, 2023, 2022 and 2021, the Company had revenue from the Starz Business of $775.5 million, $648.2 million and $204.1 million, respectively, which represented greater than 10% of combined revenues, primarily related to the Company’s Television Production segment. See Note 20 for further information. For the year ended March 31, 2023, the Company had revenue from one individual external customer which represented greater than 10% of combined revenues, amounting to $337.1 million, related to the Company’s Motion Picture and Television Production segments. In the year ended March 31, 2021, the Company also had revenue from one individual external customer which represented greater than 10% of combined revenues, amounting to $293.5 million, related to the Company’s Motion Picture and Television Production segments. As of March 31, 2023 and 2022, the Company had accounts receivable due from one customer which individually represented greater than 10% of combined accounts receivable. Accounts receivable due from this one customer amounted to 10.5% and 10.3% of total combined accounts receivable (current and non-current) |
Financial Instruments
Financial Instruments | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Derivative [Line Items] | ||
Financial Instruments | 16. Derivative Instruments and Hedging Activities Forward Foreign Exchange Contracts The Company enters into forward foreign exchange contracts to hedge its foreign currency exposures on future production expenses and tax credit receivables denominated in various foreign currencies (i.e., cash flow hedges). The Company also enters into forward foreign exchange contracts that economically hedge certain of its foreign currency risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. Changes in the fair value of the foreign exchange contracts that are designated as hedges are reflected in accumulated other comprehensive income (loss), and changes in the fair value of foreign exchange contracts that are not designated as hedges and do not qualify for hedge accounting are recorded in direct operating expense. Gains and losses realized upon settlement of the foreign exchange contracts that are designated as hedges are amortized to direct operating expense on the same basis as the production expenses being hedged. As of December 31, 2023, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 20 months from December 31, 2023): December 31, 2023 Foreign Currency Foreign Currency US Dollar Weighted Average (Amounts in (Amounts in British Pound Sterling 0.4 GBP in exchange for $ 0.4 0.82 GBP Czech Koruna 180.0 CZK in exchange for $ 8.1 22.13 CZK Euro 15.3 EUR in exchange for $ 15.4 1.10 EUR Canadian Dollar 29.5 CAD in exchange for $ 1.0 1.34 CAD Mexican Peso 35.9 MXN in exchange for $ 1.7 20.52 MXN South African Rand 53.2 ZAR in exchange for $ 2.9 18.95 ZAR Interest Rate Swaps The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows. The Company primarily uses pay-fixed Pay-fixed Cash settlements related to interest rate contracts are generally classified as operating activities on the condensed combined statements of cash flows. However, due to a financing component (debt host) on a portion of our previously outstanding interest rate swaps, the cash flows related to these contracts are classified as financing activities through the date of termination. Designated Cash Flow Hedges. pay-fixed Effective Date Notional Amount Fixed Rate Paid Maturity Date (in millions) May 23, 2018 $ 300.0 2.915 % March 24, 2025 May 23, 2018 $ 700.0 2.915 % March 24, 2025 (1) June 25, 2018 $ 200.0 2.723 % March 23, 2025 (1) July 31, 2018 $ 300.0 2.885 % March 23, 2025 (1) December 24, 2018 $ 50.0 2.744 % March 23, 2025 (1) December 24, 2018 $ 100.0 2.808 % March 23, 2025 (1) December 24, 2018 $ 50.0 2.728 % March 23, 2025 (1) Total $ 1,700.0 (1) Represents the “Re-designated May 2022 Transactions : re-designated The receipt of approximately $56.4 million as a result of the termination was recorded as a reduction of the asset values of the derivatives amounting to $188.7 million and a reduction of the financing component (debt host) of the Terminated Swaps amounting to $131.3 million. At the time of the termination of the Terminated Swaps, there was approximately $180.4 million of unrealized gains recorded in accumulated other comprehensive income (loss) related to these Terminated Swaps. This amount will be amortized as a reduction of interest expense through the remaining term of the swaps unless it becomes probable that the cash flows originally hedged will not occur, in which case the proportionate amount of the gain will be recorded as a reduction to interest expense at that time. In addition, the liability amount of $6.8 million for the Re-designated re-designation Re-designated The receipt of approximately $ 56.4 188.7 134.5 Financial Statement Effect of Derivatives Unaudited condensed combined statements of operations and comprehensive income (loss): pre-tax Nine Months Ended 2023 2022 (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in accumulated other comprehensive income (loss) $ (7.3 ) $ 7.4 Loss reclassified from accumulated other comprehensive income (loss) into direct operating expense (2.5 ) (0.7 ) Interest rate swaps Gain recognized in accumulated other comprehensive income (loss) $ 24.7 $ 87.8 Gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense 31.5 (5.7 ) Derivatives not designated as cash flow hedges: Interest rate swaps Loss reclassified from accumulated other comprehensive income (loss) into interest expense $ (5.5 ) $ (9.9 ) Total direct operating expense on combined statements of operations $ 1,306.0 $ 1,687.9 Total interest expense on combined statements of operations $ 157.1 $ 117.8 Unaudited condensed combined balance sheets: As of December 31, 2023 and March 31, 2023, the Company had the following amounts recorded in the accompanying unaudited condensed combined balance sheets related to the Company’s use of derivatives: December 31, 2023 Other Current Other Non- Current Assets Other Accrued Other Non- Current (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ — $ — $ 2.1 $ — Interest rate swaps — 34.2 — — Fair value of derivatives $ — $ 34.2 $ 2.1 $ — March 31, 2023 Other Current Other Non- Current Assets Other Accrued Other Non- Current (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 2.9 $ — $ 0.1 $ — Interest rate swaps — 41.1 — — Fair value of derivatives $ 2.9 $ 41.1 $ 0.1 $ — As of December 31, 2023, based on the current release schedule, the Company estimates approximately $2.0 million of losses associated with forward foreign exchange contract cash flow hedges in accumulated other comprehensive income (loss) will be reclassified into earnings during the one-year As of December 31, 2023, the Company estimates approximately $25.4 million of gains recorded in accumulated other comprehensive income associated with interest rate swap agreement cash flow hedges will be reclassified into interest expense during the one-year | 18. Financial Instruments (a) Credit Risk Concentration of credit risk with the Company’s customers is limited due to the Company’s customer base and the diversity of its sales throughout the world. The Company performs ongoing credit evaluations and maintains a provision for potential credit losses. The Company generally does not require collateral for its trade accounts receivable. (b) Derivative Instruments and Hedging Activities Forward Foreign Exchange Contracts The Company enters into forward foreign exchange contracts to hedge its foreign currency exposures on future production expenses and tax credit receivables denominated in various foreign currencies (i.e., cash flow hedges). The Company also enters into forward foreign exchange contracts that economically hedge certain of its foreign currency risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. Changes in the fair value of the foreign exchange contracts that are designated as hedges are reflected in accumulated other comprehensive income (loss), and changes in the fair value of foreign exchange contracts that are not designated as hedges and do not qualify for hedge accounting are recorded in direct operating expense. Gains and losses realized upon settlement of the foreign exchange contracts that are designated as hedges are amortized to direct operating expense on the same basis as the production expenses being hedged. As of March 31, 2023, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 30 months from March 31, 2023): March 31, 2023 Foreign Currency Foreign Currency US Dollar Weighted Average (Amounts in (Amounts in British Pound Sterling 3.1 GBP in exchange for $ 2.3 1.33 GBP Czech Koruna 180.0 CZK in exchange for $ 8.6 20.88 CZK Euro 11.0 EUR in exchange for $ 10.0 1.10 EUR Canadian Dollar 5.1 CAD in exchange for $ 3.6 1.42 CAD Polish Zloty 8.0 PLN in exchange for $ 1.8 4.33 PLN Mexican Peso 237.8 MXN in exchange for $ 12.6 18.86 MXN Interest Rate Swaps The Company is exposed to the impact of interest rate changes, primarily through its borrowing activities in the Company’s capacity as primary borrower of Lionsgate’s Senior Credit Facilities. See Note 7 for further information. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows. The Company primarily uses pay-fixed Pay-fixed Cash settlements related to interest rate contracts are generally classified as operating activities on the combined statements of cash flows. However, due to a financing component (debt host) on a portion of the Company’s previously outstanding interest rate swaps (see Designated Cash Flow Hedges at March 31, 2022 Outstanding at March 31, 2022. pay-fixed pay-fixed pay-variable format Designated Cash Flow Hedges at March 31, 2022: Effective Date Notional Amount Fixed Rate Paid Maturity Date (1) (in millions) May 23, 2018 $ 300.0 2.915% March 24, 2025 May 19, 2020 $ 700.0 1.923% March 23, 2030 (2)(3) May 19, 2020 $ 350.0 2.531% March 23, 2027 (2)(3) June 15, 2020 $ 150.0 2.343% March 23, 2027 (2)(3) August 14, 2020 $ 200.0 1.840% March 23, 2030 (2)(3) Total $ 1,700.0 (1) Subject to a mandatory early termination date of March 23, 2025. (2) These pay-fixed at-market (3) Terminated in May 2022, see May 2022 Transactions Not Designated Cash Flow Hedges at March 31, 2022: Pay-Fixed (1) Offsetting Pay-Variable (1) Effective Date Notional Fixed Effective Date Notional Fixed Rate Maturity Date (in millions) (in millions) May 23, 2018 $ 700.0 2.915% (3) May 19, 2020 $ 700.0 2.915% (2) March 24, 2025 June 25, 2018 $ 200.0 2.723% (3) August 14, 2020 $ 200.0 2.723% (2) March 23, 2025 July 31, 2018 $ 300.0 2.885% (3) May 19, 2020 $ 300.0 2.885% (2) March 23, 2025 December 24, 2018 $ 50.0 2.744% (3) May 19, 2020 $ 50.0 2.744% (2) March 23, 2025 December 24, 2018 $ 100.0 2.808% (3) June 15, 2020 $ 100.0 2.808% (2) March 23, 2025 December 24, 2018 $ 50.0 2.728% (3) June 15, 2020 $ 50.0 2.728% (2) March 23, 2025 Total $ 1,400.0 Total $ 1,400.0 (1) During the fiscal year ended March 31, 2021, the Company completed a series of transactions to amend and extend certain interest rate swap agreements, and as part of these transactions, the $1.4 billion pay-fixed de-designated, pay-variable pay-fixed de-designation pay-fixed de-designated pay-fixed de-designated pay-variable (2) Terminated in May 2022, see May 2022 Transactions (3) Re-designated May 2022 Transactions May 2022 Transactions : re-designated “Re-designated 1.4 Re-designated Designated Cash Flow Hedges at March 31, 2023 The receipt of approximately $56.4 million as a result of the termination was recorded as a reduction of the asset values of the derivatives amounting to $188.7 million and a reduction of the financing component (debt host) of the Terminated Swaps amounting to $131.3 million. At the time of the termination of the Terminated Swaps, there was approximately $180.4 million of unrealized gains recorded in accumulated other comprehensive income (loss) related to these Terminated Swaps. This amount will be amortized as a reduction of interest expense through the remaining term of the swaps unless it becomes probable that the cash flows originally hedged will not occur, in which case the proportionate amount of the gain will be recorded as a reduction to interest expense at that time. In addition, the liability amount of $6.8 million for the Re-designated Designated Cash Flow Hedges at March 31, 2023 re-designation Re-designated The receipt of approximately $56.4 million was classified in the combined statement of cash flows as cash provided by operating activities of $188.7 million reflecting the amount received for the derivative portion of the termination of swaps, and a use of cash in financing activities of $134.5 million reflecting the pay down of the financing component of the Terminated Swaps (inclusive of payments made between April 1, 2022 and the termination date amounting to $3.2 million). Outstanding at March 31, 2023. pay-fixed Designated Cash Flow Hedges at March 31, 2023 Effective Date Notional Amount Fixed Rate Paid Maturity Date (in millions) May 23, 2018 $ 300.0 2.915% March 24, 2025 May 23, 2018 $ 700.0 2.915% March 24, 2025 (1) June 25, 2018 $ 200.0 2.723% March 23, 2025 (1) July 31, 2018 $ 300.0 2.885% March 23, 2025 (1) December 24, 2018 $ 50.0 2.744% March 23, 2025 (1) December 24, 2018 $ 100.0 2.808% March 23, 2025 (1) December 24, 2018 $ 50.0 2.728% March 23, 2025 (1) Total $ 1,700.0 (1) Represents the Re-designated May 2022 Transactions Financial Statement Effect of Derivatives Combined statement of operations and comprehensive income (loss): pre-tax Year Ended March 31, 2023 2022 2021 (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in accumulated other comprehensive income (loss) $ 1.7 $ 1.7 $ (1.0 ) Gain (loss) reclassified from accumulated other comprehensive income (loss) into direct operating expense (0.3 ) (0.2 ) 0.2 Interest rate swaps Gain recognized in accumulated other comprehensive income (loss) $ 81.1 $ 66.5 $ 72.0 Gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense 1.4 (15.0 ) (20.0 ) Derivatives not designated as cash flow hedges: Forward exchange contracts Gain recognized in direct operating expense $ — $ — $ 0.3 Interest rate swaps Loss reclassified from accumulated other comprehensive income (loss) into interest expense $ (11.8 ) $ (33.8 ) $ (28.3 ) Total direct operating expense on combined statements of operations $ 2,207.9 $ 1,922.1 $ 1,220.0 Total interest expense on combined statements of operations $ 162.6 $ 115.0 $ 109.7 Combined balance sheets: assets—non-current liabilities—non-current As of March 31, 2023 and 2022, the Company had the following amounts recorded in the accompanying combined balance sheets related to the Company’s use of derivatives: March 31, 2023 Other Other Non-Current Other Other Non-Current (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 2.9 $ — $ 0.1 $ — Interest rate swaps — 41.1 — — Fair value of derivatives $ 2.9 $ 41.1 $ 0.1 $ — March 31, 2022 Other Other Non-Current Other Other Non-Current (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 3.5 $ — $ 2.8 $ — Interest rate swaps — 109.1 — (39.4 ) Derivatives not designated as cash flow hedges: Interest rate swaps (1) — (77.1 ) — 56.8 Fair value of derivatives $ 3.5 $ 32.0 $ 2.8 $ 17.4 (1) Includes $88.1 million and $46.0 million included in other non-current non-current pay-variable As of March 31, 2023, based on the current release schedule, the Company estimates approximately $2.9 million of gains associated with forward foreign exchange contract cash flow hedges in accumulated other comprehensive income (loss) will be reclassified into earnings during the one-year As of March 31, 2023, the Company estimates approximately $23.5 million of gains recorded in accumulated other comprehensive income (loss) associated with interest rate swap agreement cash flow hedges will be reclassified into interest expense during the one-year |
Additional Financial Informatio
Additional Financial Information | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Additional Financial Information [Line Items] | ||
Additional Financial Information | 17. Additional Financial Information The following tables present supplemental information related to the unaudited condensed combined financial statements. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the unaudited condensed combined balance sheets to the total amounts reported in the unaudited condensed combined statements of cash flows at December 31, 2023 and March 31, 2023. At December 31, 2023 and March 31, 2023, restricted cash represents primarily amounts related to required cash reserves for interest payments associated with the Production Tax Credit Facility, IP Credit Facility, and Backlog Facility. December 31, March 31, (Amounts in millions) Cash and cash equivalents $ 247.1 $ 210.9 Restricted cash included in other current assets 36.4 27.5 Restricted cash included in other non-current 13.9 13.0 Total cash, cash equivalents and restricted cash $ 297.4 $ 251.4 Other Assets The composition of the Company’s other assets is as follows as of December 31, 2023 and March 31, 2023: December 31, March 31, (Amounts in millions) Other current assets Prepaid expenses and other $ 50.1 $ 36.0 Restricted cash 36.4 27.5 Contract assets 56.8 63.5 Tax credits receivable 273.8 129.5 $ 417.1 $ 256.5 Other non-current Prepaid expenses and other $ 21.5 $ 7.4 Restricted cash 13.9 13.0 Accounts receivable 105.9 37.8 Contract assets 3.3 5.1 Tax credits receivable 312.8 341.8 Operating lease right-of-use (1) 318.8 116.8 Interest rate swap assets 34.2 41.1 $ 810.4 $ 563.0 (1) During the nine months ended December 31, 2023, the Company extended certain of its operating leases and entered into new operating leases. The Company recorded an increase to operating lease right-of-use non-current liabilities—non-current”, right-of-use non-current liabilities—non-current”, Accounts Receivable Monetization Under the Company’s accounts receivable monetization programs, the Company has entered into (1) individual agreements to monetize certain of its trade accounts receivable directly with third-party purchasers and (2) a revolving agreement to monetize designated pools of trade accounts receivable with various financial institutions, as further described below. Under these programs, the Company transfers receivables to purchasers in exchange for cash proceeds, and the Company continues to service the receivables for the purchasers. The Company accounts for the transfers of these receivables as a sale, removes (derecognizes) the carrying amount of the receivables from its balance sheets and classifies the proceeds received as cash flows from operating activities in the statements of cash flows. The Company records a loss on the sale of these receivables reflecting the net proceeds received (net of any obligations incurred), less the carrying amount of the receivables transferred. The loss is reflected in the “other expense” line item on the unaudited condensed combined statements of operations. The Company receives fees for servicing the accounts receivable for the purchasers, which represent the fair value of the services and were immaterial for the nine months ended December 31, 2023 and 2022. Individual Monetization Agreements. non-payment Nine Months Ended 2023 2022 (Amounts in millions) Carrying value of receivables transferred and derecognized $ 385.8 $ 314.9 Net cash proceeds received 370.7 300.0 Loss recorded related to transfers of receivables 15.1 14.9 At December 31, 2023, the outstanding amount of receivables derecognized from the Company’s unaudited condensed combined balance sheets, but which the Company continues to service, related to the Company’s individual agreements to monetize trade accounts receivable was $420.8 million (March 31, 2023—$350.9 million). Pooled Monetization Agreement. non-payment The following table sets forth a summary of the receivables transferred under the pooled monetization agreement during the nine months ended December 31, 2023 and 2022: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Gross cash proceeds received for receivables transferred and derecognized $ 22.2 $ 156.0 Less amounts from collections reinvested under revolving agreement (9.1 ) (83.3 ) Proceeds from new transfers 13.1 72.7 Collections not reinvested and remitted or to be remitted (13.4 ) (48.0 ) Net cash proceeds received (paid or to be paid) (1) $ (0.3 ) $ 24.7 Carrying value of receivables transferred and derecognized (2) $ 22.1 $ 154.2 Obligations recorded $ 2.1 $ 4.4 Loss recorded related to transfers of receivables $ 2.0 $ 2.6 (1) During the nine months ended December 31, 2023, the Company voluntarily repurchased $46.0 million of receivables previously transferred. In addition, during the nine months ended December 31, 2022, the Company repurchased $27.4 million of receivables previously transferred, as separately agreed upon with the third-party purchasers, in order to monetize such receivables under the individual monetization program discussed above without being subject to the collateral requirements under the pooled monetization program. (2) Receivables net of unamortized discounts on long-term, non-interest At December 31, 2023, there were no outstanding receivables derecognized from the Company’s unaudited condensed combined balance sheet, for which the Company continues to service, related to the pooled monetization agreement (March 31, 2023—$52.3 million). Content related payables Content related payables include minimum guarantees and accrued licensed program rights obligations, which represent amounts payable for film or television rights that the Company has acquired or licensed. Other Accrued Liabilities Other accrued liabilities include employee related liabilities (such as accrued bonuses and salaries and wages) of $114.5 million and $102.8 million at December 31, 2023 and March 31, 2023, respectively. Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in the components of accumulated other comprehensive income (loss), net of tax. During the nine months ended December 31, 2023 and 2022, there was no income tax expense or benefit reflected in other comprehensive income (loss) due to the income tax impact being offset by changes in the Company’s deferred tax valuation allowance. Foreign currency Net unrealized gain Total (Amounts in millions) March 31, 2023 $ (41.1 ) $ 142.6 $ 101.5 Other comprehensive income (loss) 1.8 17.4 19.2 Reclassifications to net loss (1) — (23.5 ) (23.5 ) December 31, 2023 $ (39.3 ) $ 136.5 $ 97.2 March 31, 2022 $ (38.9 ) $ 49.1 $ 10.2 Other comprehensive income (loss) (3.7 ) 95.2 91.5 Reclassifications to net loss (1) — 16.3 16.3 December 31, 2022 $ (42.6 ) $ 160.6 $ 118.0 (1) Represents a loss of $2.5 million included in direct operating expense and a gain of $26.0 million included in interest expense on the unaudited condensed combined statement of operations in the nine months ended December 31, 2023 (nine months ended December 31, 2022—loss of $0.7 million included in direct operating expense and a loss of $15.6 million included in interest expense) (see Note 16). Supplemental Cash Flow Information Significant non-cash There were no significant non-cash | 19. Additional Financial Information The following tables present supplemental information related to the combined financial statements. Cash, Cash Equivalents and Restricted Cash Cash equivalents consist of investments that are readily convertible into cash. Cash equivalents are carried at cost, which approximates fair value. The Company classifies its cash equivalents within Level 1 of the fair value hierarchy because the Company uses quoted market prices to measure the fair value of these investments. See Note 10 for further information. The Company monitors concentrations of credit risk with respect to cash and cash equivalents by placing such balances with higher quality financial institutions or investing such amounts in liquid, short-term, highly-rated instruments or investment funds holding similar instruments. As of March 31, 2023, the majority of the Company’s cash and cash equivalents were held in bank depository accounts. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the combined balance sheets to the total amounts reported in the combined statements of cash flows at March 31, 2023 and 2022. At March 31, 2023 and 2022, restricted cash included in other current assets represents primarily amounts related to required cash reserves for interest payments associated with the Production Tax Credit Facility, IP Credit Facility and Backlog Facility. March 31, March 31, (Amounts in millions) Cash and cash equivalents $ 210.9 $ 256.9 Restricted cash included in other current assets 27.5 13.4 Restricted cash included in other non-current 13.0 — Total cash, cash equivalents and restricted cash $ 251.4 $ 270.3 Accounts Receivable Monetization Under the Company’s accounts receivable monetization programs, the Company has entered into (1) individual agreements to monetize certain of its trade accounts receivable directly with third-party purchasers and (2) a revolving agreement to monetize designated pools of trade accounts receivable with various financial institutions, as further described below. Under these programs, the Company transfers receivables to purchasers in exchange for cash proceeds, and the Company continues to service the receivables for the purchasers. The Company accounts for the transfers of these receivables as a sale, removes (derecognizes) the carrying amount of the receivables from its balance sheets and classifies the proceeds received as cash flows from operating activities in the statements of cash flows. The Company records a loss on the sale of these receivables reflecting the net proceeds received (net of any obligations incurred), less the carrying amount of the receivables transferred. The loss is reflected in the “other expense” line item on the combined statements of operations. The Company receives fees for servicing the accounts receivable for the purchasers, which represent the fair value of the services and were immaterial for the years ended March 31, 2023, 2022 and 2021. Individual Monetization Agreements. non-payment Year Ended March 31, 2023 2022 2021 (Amounts in millions) Carrying value of receivables transferred and derecognized $ 400.5 $ 285.0 $ 251.8 Net cash proceeds received 383.0 278.3 247.9 Loss recorded related to transfers of receivables 17.5 6.7 3.9 At March 31, 2023, the outstanding amount of receivables derecognized from the Company’s combined balance sheets, but which the Company continues to service, related to the Company’s individual agreements to monetize trade accounts receivable was $350.9 million (March 31, 2022—$274.1 million). Pooled Monetization Agreement. pledged as collateral under this agreement. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment The following table sets forth a summary of the receivables transferred under the pooled monetization agreement during the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Gross cash proceeds received for receivables transferred and derecognized $ 167.0 $ 155.5 $ 173.1 Less amounts from collections reinvested under revolving agreement (94.3 ) (102.7 ) (138.7 ) Proceeds from new transfers 72.7 52.8 34.4 Collections not reinvested and remitted or to be remitted (66.6 ) (46.8 ) (27.9 ) Net cash proceeds received (paid or to be paid) (1) $ 6.1 $ 6.0 $ 6.5 Carrying value of receivables transferred and derecognized (2) $ 164.8 $ 154.5 $ 172.0 Obligations recorded $ 5.9 $ 2.9 $ 1.9 Loss recorded related to transfers of receivables $ 3.7 $ 1.9 $ 0.8 (1) In addition, during the years ended March 31, 2023 and 2022, the Company repurchased $27.4 million and $25.5 million, respectively, of receivables previously transferred, as separately agreed upon with the third-party purchasers, in order to monetize such receivables under the individual monetization program discussed above without being subject to the collateral requirements under the pooled monetization program. (2) Receivables net of unamortized discounts on long-term, non-interest At March 31, 2023, the outstanding amount of receivables derecognized from the Company’s combined balance sheet, but which the Company continues to service, related to the pooled monetization agreement was approximately $52.3 million (March 31, 2022—$79.5 million). Other Assets The composition of the Company’s other assets is as follows as of March 31, 2023 and 2022: March 31, March 31, (Amounts in millions) Other current assets Prepaid expenses and other (1) $ 36.0 $ 47.5 Restricted cash 27.5 13.4 Contract assets 63.5 40.5 Tax credits receivable 129.5 128.3 $ 256.5 $ 229.7 Other non-current Prepaid expenses and other $ 7.4 $ 9.9 Restricted cash 13.0 — Accounts receivable (2) 37.8 38.3 Contract assets (2) 5.1 9.3 Tax credits receivable 341.8 316.1 Operating lease right-of-use 116.8 126.0 Interest rate swap assets 41.1 32.0 $ 563.0 $ 531.6 (1) Includes home entertainment product inventory which consists of Packaged Media and is stated at the lower of cost or market value (first-in, first-out (2) Unamortized discounts on long-term, non-interest Content Related Payables Content related payables include minimum guarantees and accrued licensed program rights obligations, which represent amounts payable for film or television rights that the Company has acquired or licensed. Other Accrued Liabilities Other accrued liabilities include employee related liabilities (such as accrued bonuses and salaries and wages) of $102.8 million and $53.0 million at March 31, 2023 and 2022, respectively. Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in the components of accumulated other comprehensive income (loss), net of tax. During the years ended March 31, 2023, 2022 and 2021, there was no income tax expense or benefit reflected in other comprehensive income (loss) due to the income tax impact being offset by changes in the Company’s deferred tax valuation allowance. Foreign currency Net unrealized gain Total (Amounts in millions) March 31, 2020 $ (38.8 ) $ (187.1 ) $ (225.9 ) Other comprehensive loss 4.5 70.9 75.4 Reclassifications to net loss (1) — 48.1 48.1 March 31, 2021 (34.3 ) (68.1 ) (102.4 ) Other comprehensive income (4.6 ) 68.2 63.6 Reclassifications to net loss (1) — 49.0 49.0 March 31, 2022 (38.9 ) 49.1 10.2 Other comprehensive income (loss) (2.2 ) 82.8 80.6 Reclassifications to net loss (1) — 10.7 10.7 March 31, 2023 $ (41.1 ) $ 142.6 $ 101.5 (1) Represents a loss of $0.3 million included in direct operating expense and a loss of $10.4 million included in interest expense on the combined statement of operations in the year ended March 31, 2023 (2022- loss of $0.2 million included in direct operating expense and a loss of $48.8 million included in interest expense; 2021—gain of $0.2 million included in direct operating expense and loss of $48.3 million included in interest expense). See Note 18 for further information. Supplemental Cash Flow Information Interest paid during the fiscal year ended March 31, 2023 amounted to $137.7 million (2022—$85.0 million; 2021—$82.8 million). Income taxes paid during the fiscal year ended March 31, 2023 amounted to net tax paid of $14.3 million (2022—net tax paid of $13.9 million; 2021—net tax paid of $4.1 million). Significant non-cash There were no significant non-cash non-cash Year Ended March 31, 2023 2022 2021 (Amounts in millions) Non-cash Accrued equity method investment $ — $ 19.0 $ — Supplemental cash flow information related to leases was as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 40.3 $ 44.9 $ 38.3 Right-of-use Operating leases $ 11.3 $ 51.1 $ 20.3 Increase in right-of-use Operating leases—increase in right-of-use $ 17.4 $ 30.9 $ — Operating leases—increase in lease liability $ 17.4 $ 30.9 $ — |
Related Party Transactions
Related Party Transactions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||||
Related Party Transactions | NOTE 5-RELATED Founder Shares On November 5, 2021, the Sponsor paid an aggregate of $25,000 to cover certain offering and formation costs of the Company in consideration for 17,250,000 of the Company’s Class B Ordinary Shares (the “Founder Shares”). On December 13, 2021, the Company effected a share recapitalization with respect to the Class B Ordinary Shares whereby the Company issued one and one-quarter The Founder Shares included an aggregate of up to 2,812,500 shares subject to forfeiture by the Sponsor to the extent that the underwriters’ over- allotment is not exercised in full or in part, so that the number of Founder Shares will collectively represent 20% of the Company’s issued and outstanding shares upon the completion of the Initial Public Offering. On February 19, 2022, 2,812,500 Founder Shares were forfeited because the underwriters did not exercise their over-allotment option, resulting in the Company’s Sponsor holding 18,750,000 Founder Shares. The Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur of (A) one year after the completion of a Business Combination; and (B) subsequent to a Business Combination, (x) if the closing price of the Class A Ordinary Shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, 30-trading Promissory Note On November 5, 2021, the Company issued the promissory note to the Sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $300,000 (the “Promissory Note”). The Promissory Note is non-interest bearing and payable on the earlier of (i) December 31, 2022 or (ii) the completion of the Initial Public Offering. As of December 31, 2021, there was $ outstanding under the Promissory Note. On January 11, 2022, the amount outstanding under the Promissory Note was repaid in full, and borrowings under the Promissory Note are no longer available. Due to Sponsor As of December 31, 2021, the amount due to the Sponsor was $14,537. The amounts were unpaid reimbursements of offering costs paid by the Sponsor on behalf of the Company. On January 11, 2022, the amount outstanding due to the Sponsor was repaid in full. Administrative Services Agreement The Company entered into an agreement with the Sponsor and Global Eagle Acquisition LLC (“GEA”), an entity affiliated with the Sponsor and the members of the Company’s management team, pursuant to which, commencing on January 5, 2022, it agreed to pay GEA $ 15,000 per month for office space, utilities, secretarial and administrative support services. Upon completion of a Business Combination or its liquidation, the Company will cease paying these monthly fees. During the three months ended March 31, 2024 and 2023, the Company incurred $ 15,000 and $ 45,000 , respectively , 15,000 and $ 45,000 , respectively, are sheets, respectively. In addition, the Company has agreed that it will indemnify the Sponsor from any claims arising out of or relating to the Initial Public Offering or the Company’s operations or conduct of the Company’s business or any claim against the Sponsor alleging any expressed or implied management or endorsement by the Sponsor of any of the Company’s activities or any express or implied association between the Sponsor and the Company or any of its affiliates, which agreement will provide that the indemnified parties cannot access the funds held in the Trust Account. Related Party Loans In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes may be repaid upon completion of a Business Combination, without interest. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. On May 7, 2024, the Company issued a promissory note to the Sponsor in connection with the Working Capital Loans with a principal amount of up to $2.0 million. See note 12 for additional information. There have been no borrowings under this arrangement to date. | Note 5-Related Founder Shares On November 5, 2021, the Sponsor paid an aggregate of $25,000 to cover certain offering and one-quarter Founder Shares. The Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur of (A) one year after the completion of a Business Combination; and (B) subsequent to a Business Combination, (x) if the closing price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, 30-trading Promissory Note On November 5, 2021, the Company issued the promissory note to the Sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $300,000 (the “Promissory Note”). The Promissory Note is non-interest Due to Sponsor As of December 31, 2021, the amount due to Sponsor was $14,537. The amounts were unpaid reimbursements of offering costs paid by the Sponsor on behalf of the Company. On January 11, 2022, the amount outstanding due to Sponsor was repaid in full. Administrative Services Agreement The Company entered into an agreement with the Sponsor and Global Eagle Acquisition LLC GEA pursuant to which, commencing on January 5, 2022, it agreed to pay GEA, an affiliate of the Sponsor, $ per month for office space, utilities, secretarial and administrative support services. Upon completion of a Business Combination or its liquidation, the Company will cease paying these monthly fees. During the years ended December 31, 2023 and 2022 and the period from November 3, 2021 (inception) to December 31, 2021, the Company incurred $ , $ 180,000 and $ 0, respectively, in expenses for services provided by the Sponsor in connection with the aforementioned agreement. As of December 31, 2023 and December 31, 2022, $ In addition, the Company has agreed that it will indemnify the Sponsor from any claims arising out of or relating to the initial public offering or the Company’s operations or conduct of the Company’s business or any claim against the Sponsor alleging any expressed or implied management or endorsement by the Sponsor of any of the Company’s activities or any express or implied association between the Sponsor and the Company or any of its affiliates, which agreement will provide that the indemnified parties cannot access the funds held in the Trust Account. Related Party Loans In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes may be repaid upon completion of a Business Combination, without interest, or, at the lender’s discretion, such loans may be converted upon completion of a Business Combination into warr an per going concern note. Such warrants would be identical to the private placement warrants. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account wo u | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transactions | 18. Related Party Transactions Transactions with Lionsgate As described in Note 1, Lionsgate utilizes a centralized approach to cash management. Cash generated by the Company or borrowed under certain debt obligations is managed by Lionsgate’s centralized treasury function and is routinely transferred to the Company or to the Starz Business to fund operating activities of the Studio Business and the Starz Business when needed. Becaus In the normal course of business, the Company enters into transactions with Lionsgate and the Starz Business which include the following, which unless otherwise indicated are settled through net parent investment at the time of the transaction: Licensing of content to the Starz Business: Corporate expense allocations: Operating expense reimbursement Share-based compensation: Monetization of certain accounts receivables: Parent The net transfers to and from Lionsgate discussed above were as follows: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Cash pooling and general financing activities $ (241.7 ) $ 111.5 Licensing of content (1) 428.8 623.7 Corporate reimbursements 5.9 8.0 Corporate expense allocations (excluding allocation of share-based compensation) 20.2 12.3 Funding of purchases of accounts receivables held for collateral (85.6 ) (135.4 ) Net transfers to Parent per combined statements of cash flows $ 127.6 $ 620.1 Share based compensation (including allocation of share-based compensation) (53.6 ) (42.2 ) Other non-cash 16.6 — Net transfers to Parent per combined statements of equity (deficit) $ 90.6 $ 577.9 (1) Reflects the settlement of amounts due from the Starz Business related to the Company’s licensing arrangements with the Starz Business. | 20. Related Party Transactions Transactions with Lionsgate As described in Note 1, Lionsgate utilizes a centralized approach to cash management. Cash generated by the Company or borrowed under certain debt obligations is managed by Lionsgate’s centralized treasury function and is routinely transferred to the Company or to the Starz Business to fund operating activities of the Studio Business and the Starz Business when needed. Because of this centralized approach to cash management, financial transactions for cash movement and the settlement of payables and receivables when due with Lionsgate are generally accounted for through the net parent investment account. Net parent investment is presented in the combined statements of equity (deficit). Settlements of amounts payable and receivable when due through the net parent investment account are reflected as cash payments or receipts for the applicable operating transaction within operating activities in the combined statements of cash flows, with the net change in parent net investment included within financing activities in the combined statements of cash flows. In the normal course of business, the Company enters into transactions with Lionsgate and the Starz Business which include the following, which unless otherwise indicated are settled through net parent investment at the time of the transaction: Licensing of content to the Starz Business: reflected in due from the Starz Business on the combined balance sheets. The consideration to which the Company is entitled under the license agreements with the Starz Business is included in revenue from contracts with customers and presented separately in the combined statement of operations. See Note 12 for further information. Corporate expense allocations: Operating expense reimbursement: Share- based compensation: Monetization of certain accounts receivables: Parent Net Investment The net transfers to and from Lionsgate discussed above were as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Cash pooling and general financing activities $ 36.1 $ (305.2 ) $ (143.5 ) Licensing of content (1) 733.3 567.7 209.4 Corporate reimbursements 13.3 10.8 8.0 Corporate expense allocations (excluding allocation of share-based compensation) 22.3 19.3 22.4 Funding of purchases of accounts receivables held for collateral (183.7 ) (172.9 ) (212.5 ) Net transfers to (from) Parent per combined statements of cash flows $ 621.3 $ 119.7 $ (116.2 ) Share-based compensation (including allocation of share-based compensation) (73.4 ) (70.2 ) (58.0 ) Other non-cash 2.5 — — Net transfers to (from) Parent per combined statements of equity (deficit) $ 550.4 $ 49.5 $ (174.2 ) (1) Reflects the settlement of amounts due from the Starz Business related to the Company’s licensing arrangements with the Starz Business. Other Related Party Transactions In April 2004, the Company entered into agreements (as amended) with Ignite, LLC (“Ignite”) for distribution rights to certain films. Michael Burns, the Vice Chair and a director of Lionsgate, owns a 65.45% interest in Ignite, and Hardwick Simmons, a director of Lionsgate, owns a 24.24% interest in Ignite. During the year ended March 31, 2023, $0.4 million was paid to Ignite under these agreements. Transactions with Equity Method Investees Equity Method Investees. March 31, 2023 2022 (Amounts in Combined Balance Sheets Accounts receivable $ 10.8 $ 10.5 Investment in films and television programs (1) 7.9 1.6 Other assets, noncurrent (1)(2) 45.8 43.5 Total due from related parties $ 64.5 $ 55.6 Accounts payable (3) $ 16.8 $ 17.0 Other accrued liabilities (1) 6.7 5.2 Participations and residuals, current 7.5 5.9 Participations and residuals, noncurrent 2.0 1.1 Other liabilities (1) 41.4 38.3 Total due to related parties $ 74.4 $ 67.5 Year Ended March 31, 2023 2022 2021 (Amounts in millions) Combined Statements of Operations Revenues $ 4.8 $ 3.0 $ 6.3 Direct operating expense $ 8.3 $ 6.5 $ 10.8 Distribution and marketing expense $ 0.4 $ 0.2 $ 0.2 Interest and other income $ — $ 3.0 $ 2.9 (1) During the year ended March 31, 2022, the Company entered into certain operating leases related to a studio facility owned by an equity-method investee. Amounts related to these leases are included in investment in films and television programs, other assets—noncurrent, other accrued liabilities and other liabilities in the combined balance sheets at March 31, 2023 and 2022. (2) During the years ended March 31, 2022 and 2021, the Company made loans (including accrued interest) of $3.0 million and $2.9 million, respectively, to certain of its equity method investees (2023—none). As of March 31, 2023 and 2022, no amounts are included in other assets, noncurrent in the Company’s combined balance sheets related to these loans (net of equity interests losses applied against such loans). (3) Amounts primarily represent production related advances due to certain of its equity method investees. In addition, as of March 31, 2023, the Company has entered into certain leases that have not yet commenced primarily related to studio facilities owned by an equity-method investee, for which construction has not yet been completed. See Note 9 for further information. |
Subsequent Events
Subsequent Events | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | |
Subsequent Event [Line Items] | ||||
Subsequent Events | NOTE 12-SUBSEQUENT The Company evaluated subsequent events and transactions that occurred after the consolidated balance sheet date up to the date that the financial statements were issued. Based upon this review, other than as noted below, the Company did not identify any subsequent events, that have occurred that would require adjustments to the disclosures in the consolidated financial statements. On April 9, 2024, the Company held the Extension Meeting at which the Company received approval to amend its Articles to, among other things, extend the date by which the Company must consummate a Business Combination from April 10, 2024 to June 15, 2024. In connection with the Extension Meeting, holders of 57,824,777 Public Shares properly exercised their right to redeem such shares for cash at a redemption price of approximately $10.74 per share, representing an aggregate of approximately $620.8 million. After the satisfaction of such redemptions, the balance in the Trust Account was approximately $184.4 million. On April 11 , 2024 , the Business Combination Agreement was amended to, among other things , 175,000,000 to $ 225,000,000 ; (ii) upsize the amount of aggregate transaction proceeds to be no greater than $ 409,500,000 and no less than $ 350,000,000 , from the prior requirement of $ 350,000,000 in aggregate transaction proceeds; and (iii) based on the net cash in the Trust Account following the Extension Meeting, remove the provisions requiring cash to potentially be paid to non-redeeming holders of Public Shares as part of the merger consideration for their Class A Ordinary Shares, which requirement had been intended to limit dilution of Lions Gate Parent’s ownership in the combined company, and instead provide that the holders of Public Shares who do not redeem their Class A Ordinary Shares at the extraordinary general meeting of the Company’s shareholders to be held to approve the Lionsgate Business Combination will receive only common shares of Pubco (“Pubco Common Shares”) in exchange for their Class A Ordinary Shares on a one-for-one basis. On Apr 4,918,839 Pubco Common Shares at a purchase price of $ 10.165 per share, for an aggregate cash amount of $ 50,000,000 . The Additional Subscription Agreement is in substantially the same form as the Initial Subscription Agreement, expect that it does not provide the reduction right to the investor the rein. On April 24, 2024, SEAC and Pubco entered into share purchase and non-redemption agreements (the “Non-Redemption Agreements”) with certain investors, pursuant to which such investors agreed, among other things, to (i) certify that they had purchased an aggregate of approximately $20 million of Public Shares in the open On May 7, 2024, the Company issued a promissory note to the Sponsor with a principal amount of up to $2.0 million to cover advancements made by the Sponsor to finance certain transaction expenses on behalf of the Company (the “Note”). The Note bears no interest and is repayable in full upon the earlier of (a) the date of the consummation of the Company’s Business Combination, and (b) the date of the Company’s liquidation. If the Company does not consummate a Business Combination, the Note will be repaid only from funds held outside of the Trust Account (to the extent there are any) or will be forfeited, eliminated or otherwise forgiven. | Note 12-Subsequent The Company evaluated subsequent events and transactions that occurred after the consolidated balance sheet date up to the date that the financial statements were issued. Based upon this review, other than as noted below, the Company did not identify any subsequent events, that have occurred that would require adjustments to the disclosures in the financial statements. Subsequent to December 31, 2023 and in consideration of Citigroup Global Markets Inc.’s (“ Citi PIPE deferred underwriting fee payable to it pursuant to the terms of that certain underwriting agreement, dated January 5, 2022 (the “ Underwriting Agreement In addition, on January 3, 2024, the Company received a letter from Goldman Sachs whereby Goldman Sachs waived its entitlement to any portion underwriting fee payable pursuant to the Underwriting Agreement. The Company did not seek out the reasons why Goldman Sachs waived its deferred underwriting fee, despite Goldman Sachs having already completed its services under the Underwriting Agreement. Goldman Sachs received no additional consideration for the waiver of its entitlement to the deferred underwriting fee. On January 26, 2024, the Company amended the Trust Agreement, to permit Continental Stock Transfer & Trust Company (the “Trustee”), to hold the assets in the Trust Account in an interest-bearing demand deposit account or cash until the earlier of the consummation of an initial business combination or the Company’s liquidation. On the same day, the Company instructed the Trustee to liquidate the investments held in the Trust Account and move the funds to an interest-bearing demand deposit account, with Continental continuing to act as trustee. As a result, following the liquidation of investments in the Trust Account, the remaining proceeds from the initial pu bli | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||
Subsequent Event [Line Items] | ||||
Subsequent Events | 19. Subsequent Events The Company has evaluated subsequent events through March 8, 2024, the date which the combined financial statements were iss ue d. On January 2, 2024, the Company closed on t he acquisition of an additional 25% of 3 Arts Entertainment representing approximately half of the noncontrolling interest for approximately $194 million. In addition, the Company purchased certain profit interests held by certain managers and entered into certain option rights agreements, which replaced the put and call rights discussed in Note 9 by providing noncontrolling interest holders the right to sell to the Company and the Company the right to purchase their remaining (24%) interest beginning in January 2027, see Note 9. | 21. Subsequent Events The Company has evaluated subsequent events through July 12, 2023, the date which the combined financial statements were issued. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected through December 31, 2024 or any future periods. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K | Basis of presentation The accompanying financial statements of the Company are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Use of Estimates | Use of Estimates The preparation of unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Two of the more significant accounting estimates included in these financial statements is the determination of the fair value of the warrant liability and PIPE with reduction right liability. Such estimates may be subject to change as more current in form eco | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Two of the more significant accounting estimates included in these financial statements is the determination of the fair value of the warrant liability and PIPE with reduction right liability. Such estimates may be subject to change as more current information becomes available and the actual results could differ significantly from those estimates. | ||
Cash Equivalents | Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents as of March 31, 2024. | Cash equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. | ||
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation limit of $250,000, and investments held in Trust Account. The Company has not experienced losses on these accounts. | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation limit of $250,000, and investments held in Trust Account. The Company has not experienced losses on these accounts. | ||
Investments Held in Trust Account | Investments Held in Trust Account The Company’s portfolio of investments was comprised solely of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less, or investments in money market funds that invest in U.S. government securities, or a combination thereof until January 2024, when the trustee liquidated such investments and moved the proceeds to an interest-bearing demand deposit account. The Company classifies its U.S. Treasury and equivalent securities as held to maturity in accordance with ASC Topic 320, “Investments-Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost on the accompanying consolidated balance sheets and adjusted for the amortization or accretion of premiums or discounts. Money market funds and demand deposits are presented at fair value at the end of each reporting period (see Note 11). | Investments Held in Trust Account The Company’s portfolio of investments was comprised solely of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less, or investments in money market funds that invest in U.S. government securities, or a combination thereof until January 2024, when the trustee liquidated such investments and moved the proceeds to an interest-bearing demand deposit account. The Company classifies its U.S. Treasury and equivalent securities as held-to-maturity Held-to-maturity Held-to-maturity | ||
Offering Costs | Offering Costs Offering costs consisted of underwriting, legal, accounting and other expenses incurred directly related to the Initial Public Offering. Upon completion of the Initial Public Offering, offering costs were allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received. Offering costs associated with warrant liability were charged to operations. Offering costs allocated to Class A Ordinary Shares were initially charged to temporary equity and then accreted to ordinary shares subject to possible redemption upon the completion of the Initial Public Offering. Offering costs amounted to $ , of which $ was charged to temporary equity upon the completion of the Initial Public Offering and $ was expensed to the unaudited consolidated statements of operations. | Offering costs Offering costs consisted of underwriting, legal, accounting and other expenses incurred directly related to the initial public offering. Upon completion of the initial public offering, offering costs were allocated to the separable financial instruments issued in the initial public offering based on a relative fair value basis, compared to total proceeds received. Offering costs associated with warrant liability were charged to operations. Offering costs allocated to Class A Ordinary Shares were initially charged to temporary equity and then accreted to ordinary shares subject to possible redemption upon the completion of the initial public offering. Offering costs amounted to $42,130,216, of which $42,110,034 was charged to temporary equity upon the completion of the initial public offering and $20,182 was expensed to the consolidated statements of operations. | ||
Class A Ordinary Shares subject to possible redemption | Class A Ordinary Shares Subject to Possible Redemption The Company accounts for its Class A Ordinary Shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity (deficit). The Company’s Class A Ordinary Shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at March 31, 2024 and December 31, 2023, Class A Ordinary Shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of Class A Ordinary Shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against additional paid-in As of March 31, 2024 and December 31, 2023, the Class A Ordinary Shares reflected on the consolidated balance sheets are reconciled in the following table: Gross proceeds $ 750,000,000 Less: Fair value of Public Warrants at issuance (36,750,000 ) Class A Ordinary Share issuance costs (42,110,034 ) Plus: Accretion of carrying value to redemption value 123,510,300 Class A Ordinary Shares subject to possible redemption, December 31, 2023 794,650,266 Plus: Waiver of offering costs allocated to Class A Ordinary Share subject to possible redemption 17,325,000 Less: Accretion of carrying value to redemption value (7,846,453 ) Class A Ordinary Shares subject to possible redemption, March 31, 2024 $ 804,128,813 | Class A Ordinary Shares subject to possible redemption The Company accounts for its Class A Ordinary Shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity (“ASC 480”).” Ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Class A ordinary shares of the Company feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at December 31, 2023 and 2022, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ equity (deficit) section of the Company’s consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of Class A ordinary shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against additional paid-in As of December 31, 2023 and 2022, the Class A ordinary shares reflected on the consolidated balance sheets are reconciled in the following table: Gross proceeds $ 750,000,000 Less Fair value of Public Warrants at issuance (36,750,000 ) Class A ordinary share issuance costs (42,110,034 ) Plus: Accretion of carrying value to redemption value 85,722,976 Class A Ordinary Shares subject to possible redemption as of December 31, 756,862,942 Plus: Accretion of carrying value to redemption value 37,787,324 Class A ordinary shares subject to possible redemption as of December 31, $ 794,650,266 | ||
Derivative financial instruments | Derivative Financial Instruments The Company accounts for derivative financial instruments in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value upon issuance and remeasured at each reporting date, with changes in the fair value reported in the unaudited consolidated statements of operations. The classification of derivative financial instruments is evaluated at the end of each reporting period. The Company accounts for the private placement warrants as liabilities at fair value on the consolidated balance sheets. The private placement warrants are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of other income (expense), net on the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the private placement warrants. At that time, the portion of the warrant liability related to the private placement warrants will be reclassified to additional paid-in capital. The Company accounts for the Subscription Agreements (as defined below) as a liability at fair value on the consolidated balance sheets (the “PIPE with reduction right liability”). The Subscription Agreements are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of other income (expense), net on the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the closing of the transactions contemplated by the Subscription Agreements or expiration of the Subscription Agreements. At that time, the PIPE with reduction right liability will be reclassified to additional paid-in | Derivative financial instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC Topic 815, “Derivatives and Hedging”. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed The Company accounts for the private placement warrants as liabilities at fair value on the consolidated balance sheets. The private placement warrants are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of other income (expense), net on the statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the private placement warrants. At that time, the portion of the warrant liability related to the private placement warrants will be reclassified to additional paid-in The Company accounts for the Subscription Agreements as a liability at fair value on the consolidated balance sheets (the “ PIPE with reduction right liability | ||
Income taxes | Income Taxes The Company accounts for income taxes under ASC 740, “Income Taxes” (“ASC 740”), which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of March 31, 2024 and December 31, 2023. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company has been There is currently no taxation imposed on income by the government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s consolidated financial statements. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. | Income taxes The Company accounts for income taxes under ASC Topic 740, “Income Taxes” which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not There is currently no taxation imposed on income by the government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change ove r the | ||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying consolidated balance sheets, primarily due to their short-term nature, except for the warrant liability (see Note 11). | Fair value of financial instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: • Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; • Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and • Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. | ||
Net income per ordinary share | Net Income Per Ordinary Shares The Company has two classes of shares, Class A Ordinary Shares and Class B Ordinary Shares. Income and losses are shared pro rata between the two classes of shares. The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share”. Net income per share is computed by dividing net income by the weighted average number of ordinary shares outstanding for the period. Accretion associated with the redeemable shares of Class A Ordinary Shares is excluded from earnings per share as the redemption value approximates fair value. The calculation of diluted income (loss) per share does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering, and (ii) the private placement since the exercise of the warrants is contingent upon the occurrence of future events. The warrants are exercisable to purchase 36,733,333 Class A Ordinary Shares For the three months ended March 31, 2024 and 2023, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company. As a result, diluted net income per share of ordinary shares is the same as basic net income per shares of ordinary shares for the periods presented. The following table reflects the calculation of basic and diluted net income per ordinary shares for the three months ended March 31, 2024 and 2023: For the Three Months Ended For the Three Months Ended Class A Class B Class A Class B Basic and diluted net income per ordinary share Numerator: Allocation of net income $ 4,129,801 $ 1,032,450 $ 6,406,917 $ 1,601,729 Denominator: Basic and diluted weighted average shares outstanding 75,000,000 18,750,000 75,000,000 18,750,000 Basic and diluted net income per ordinary shares $ 0.06 $ 0.06 $ 0.09 $ 0.09 | Net income (loss) per ordinary share The Company has two classes of shares, Class A ordinary shares and Class B ordinary shares. Income and losses are shared pro rata between the two classes of shares. The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share”. Net income per share is computed by dividing net income by the weighted average number of ordinary shares outstanding for the period. Accretion associated with the redeemable shares of Class A ordinary share is excluded from earnings per share as the redemption value approximates fair value. The calculation of diluted income (loss) per share does not consider the effect of the warrants issued in connection with the (i) initial public offering, and (ii) the private placement since the exercise of the warrants is contingent upon the occurrence of future events. The warrants are exercisable to purchase 36,733,333 Class A ordinary share in the aggregate. As of December 31, 2023 and 2022, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary share, and then share in the earnings of the Company. As a result, diluted net income per share is the same as basic net income per share for the period presented. For The Year Ended December 31, 2023 For the Year Ended December 31, 2022 For the Period From November 3, 2021 Class A Class B Class A Class B Class A Class B Basic and diluted net income (loss) per ordinary share Numerator: Allocation of net income (loss) $ 13,360,506 $ 3,340,127 $ 17,918,827 $ 4,592,958 $ — $ (5,000 ) Denominator: Basic and diluted weighted average shares 75,000,000 18,750,000 73,150,685 18,750,000 — 18,750,000 Basic and diluted net income per share $ 0.18 $ 0.18 $ 0.24 $ 0.24 $ — $ — | ||
Recently Issued Accounting Standards | Recently Issued Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. | Recently issued accounting standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial stateme nts. | ||
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||
Warrant liability | Warrant Liability The Company accounts for the private placement warrants as liabilities at fair value on the consolidated balance sheets. The private placement warrants are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of other income (expense), net on the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the private placement warrants. At that time, the portion of the warrant liability related to the private placement warrants will be reclassified to additional paid-in | |||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||
Basis of Presentation | Basis of Presentation The Studio Business has historically operated as part of Lionsgate and not as a standalone company. The Studio Business’s condensed combined financial statements, representing the historical assets, liabilities, operations and cash flows of the combination of the operations making up the worldwide Studio Business, have been derived from the separate historical accounting records maintained by Lionsgate, and are presented on a carve-out carve-out All revenues and costs as well as assets and liabilities directly associated with the business activity of the Studio Business are included in the accompanying condensed combined financial statements. Revenues and costs associated with the Studio Business are specifically identifiable in the accounting records maintained by Lionsgate and primarily represent the revenue and costs used for the determination of segment profit of the Motion Picture and Television Production segments of Lionsgate. In addition, the Studio Business costs include an allocation of corporate general and administrative expense (inclusive of share-based compensation) which has been allocated to the Studio Business as further discussed below. Other costs excluded from the Motion Picture and Television Production segment profit but relating to the Studio Business are generally specifically identifiable as costs of the Studio Business in the accounting records of Lionsgate and are included in the accompanying combined financial statements. Lionsgate utilizes a centralized approach to cash management. Cash generated by the Studio Business is managed by Lionsgate’s centralized treasury function and cash is routinely transferred to the Company or to the Starz Business to fund operating activities when needed. Cash and cash equivalents of the Studio Business are reflected in the combined balance sheets. Payables to and receivables from Lionsgate, primarily related to the Starz Business, are often settled through movement to the intercompany accounts between Lionsgate, the Starz Business and the Studio Business. Other than certain specific balances related to unsettled payables or receivables, the intercompany balances between the Studio Business and Lionsgate have been accounted for as parent net investment. See Note 18 for further details. The Studio Business is the primary borrower of certain indebtedness (the revolving credit facility, term loan A, and term loan B, together referred to as the “Senior Credit Facilities”) of Lionsgate. The Senior Credit Facilities are generally used as a method of financing Lionsgate’s operations in totality and are not specifically identifiable to the Studio Business or the Starz Business. It is not practical to determine what the capital structure would have been historically for the Studio Business or the Starz Business as standalone companies. A portion of Lionsgate’s corporate debt, Lionsgate’s 5.500% senior notes due April 15, 2029 (the “Senior Notes”) and related interest expense are not reflected in the Studio Business’s condensed combined financial statements. The Studio Business remains a guarantor under the Senior Notes indenture agreement. See Note 6 for further details. Additional indebtedness directly related to the Studio Business, including production loans, borrowing under the Production Tax Credit and IP Credit Facility, Backlog Facility (each as defined below) and other obligations, are reflected in the Studio Business’s condensed combined financial statements. See Note 7 for further details. Lionsgate’s corporate general and administrative functions and costs have historically provided oversight over both the Starz Business and the Studio Business. These functions and costs include, but are not limited to, salaries and wages for certain executives and other corporate officers related to executive oversight, investor relations costs, costs for the maintenance of corporate facilities, and other common administrative support functions, including corporate accounting, finance and financial reporting, audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense. Accordingly, the condensed combined financial statements of the Studio Business include allocations of certain general and administrative expenses (inclusive of share-based compensation) from Lionsgate related to these corporate and shared service functions historically provided by Lionsgate. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis of consolidated Lionsgate revenue, payroll expense or other measures considered to be a reasonable reflection of the historical utilization levels of these services. Accordingly, the Studio Business financial statements may not necessarily be indicative of the conditions that would have existed or the results of operations if the Company had been operated as an unaffiliated entity, and may not be indicative of the expenses that the Company will incur in the future. The Company also pays certain costs on behalf of the Starz Business such as certain rent expense, employee benefits, insurance and other administrative operating costs which are reflected as expenses of the Starz Business. The Starz Business also pays certain costs on behalf of the Company such as legal expenses, software development costs and severance which are reflected as expenses of the Studio Business. The settlement of reimbursable expenses between the Studio Business and the Starz Business have been accounted for as parent net investment. See Note 18 for further detail of parent net investment included in these condensed combined financial statements. Management believes the assumptions underlying these condensed combined financial statements, including the assumptions regarding the allocation of general and administrative expenses from Lionsgate to the Studio Business, are reasonable. However, the allocations may not include all of the actual expenses that would have been incurred by the Studio Business and may not reflect its combined results of operations, financial position and cash flows had it been a standalone company during the periods presented. It is not practicable to estimate actual costs that would have been incurred had the Studio Business been a standalone company and operated as an unaffiliated entity during the periods presented. Actual costs that might have been incurred had the Studio Business been a standalone company would depend on a number of factors, including the organizational structure, what corporate functions the Studio Business might have performed directly or outsourced, and strategic decisions the Company might have made in areas such as executive management, legal and other professional services, and certain corporate overhead functions. See Note 18 for further detail of the allocations included in these condensed combined financial statements. The unaudited condensed combined financial statements have been prepared in accordance with U.S. GAAP for interim financial information and accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these unaudited condensed combined financial statements. Operating results for the nine months ended December 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2024. The balance sheet at March 31, 2023 has been derived from the audited combined financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed combined financial statements should be read together with the combined financial statements and related notes included in the audited combined financial statements for the fiscal year ended March 31, 2023. | Basis of Presentation The Studio Business has historically operated as part of Lionsgate and not as a standalone company. The Studio Business’s combined financial statements, representing the historical assets, liabilities, operations and cash flows of the combination of the operations making up the worldwide Studio Business, have been derived from the separate historical accounting records maintained by Lionsgate, and are presented on a carve-out carve-out All revenues and costs as well as assets and liabilities directly associated with the business activity of the Studio Business are included in the accompanying combined financial statements. Revenues and costs associated with the Studio Business are specifically identifiable in the accounting records maintained by Lionsgate and primarily represent the revenue and costs used for the determination of segment profit of the Motion Picture and Television Production segments of Lionsgate. In addition, the Studio Business costs include an allocation of corporate general and administrative expense (inclusive of share-based compensation) which has been allocated to the Studio Business as further discussed below. Other costs excluded from the Motion Picture and Television Production segment profit but relating to the Studio Business are generally specifically identifiable as costs of the Studio Business in the accounting records of Lionsgate and are included in the accompanying combined financial statements. Lionsgate utilizes a centralized approach to cash management. Cash generated by the Studio Business is managed by Lionsgate’s centralized treasury function and cash is routinely transferred to the Company or to the Starz Business to fund operating activities when needed. Cash and cash equivalents of the Studio Business are reflected in the combined balance sheets. Payables to and receivables from Lionsgate, primarily related to the Starz Business, are often settled through movement to the intercompany accounts between Lionsgate, the Starz Business and the Studio Business. Other than certain specific balances related to unsettled payables or receivables, the intercompany balances between the Studio Business and Lionsgate have been accounted for as parent net investment. See Note 20 for further details. The Studio Business is the primary borrower of certain corporate indebtedness (the revolving credit facility, term loan A and term loan B, together referred to as the “Senior Credit Facilities”) of Lionsgate. The Senior Credit Facilities are generally used as a method of financing Lionsgate’s operations in totality and are not specifically identifiable to the Studio Business or the Starz Business. It is not practical to determine what the capital structure would have been historically for the Studio Business or the Starz Business as standalone companies. A portion of Lionsgate’s corporate debt, Lionsgate’s 5.500% senior notes due April 15, 2029 (the “Senior Notes”) and related interest expense are not reflected in the Studio Business’s combined financial statements. The Studio Business remains a guarantor under the Senior Notes indenture agreement. See Note 7 for further details. Additional indebtedness directly related to the Studio Business, including production loans, borrowings under the Production Tax Credit Facility, IP Credit Facility, and Backlog Facility (each as defined below) and other obligations, are reflected in the Studio Business combined financial statements. See Note 8 for further details. Lionsgate’s corporate general and administrative functions and costs have historically provided oversight over both the Starz Business and the Studio Business. These functions and costs include, but are not limited to, salaries and wages for certain executives and other corporate officers related to executive oversight, investor relations costs, costs for the maintenance of corporate facilities, and other common administrative support functions, including corporate accounting, finance and financial reporting, audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense. Accordingly, the audited financial statements of the Studio Business, include allocations of certain general and administrative expenses (inclusive of share-based compensation) from Lionsgate related to these corporate and shared service functions historically provided by Lionsgate. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis of consolidated Lionsgate revenue, payroll expense or other measures considered to be a reasonable reflection of the historical utilization levels of these services. Accordingly, the Studio Business financial statements may not necessarily be indicative of the conditions that would have existed or the results of operations if the Company had been operated as an unaffiliated entity, and may not be indicative of the expenses that the Company will incur in the future. The Company also pays certain costs on behalf of the Starz Business such as certain rent expense, employee benefits, insurance and other administrative operating costs which are reflected as expenses of the Starz Business. The Starz Business also pays certain costs on behalf of the Company such as legal expenses, software development costs and severance which are reflected as expenses of the Studio Business. The settlement of reimbursable expenses between the Studio Business and the Starz Business have been accounted for as parent net investment. See Note 20 for further detail of parent net investment included in these combined financial statements. Management believes the assumptions underlying these combined financial statements, including the assumptions regarding the allocation of general and administrative expenses from Lionsgate to the Studio Business, are reasonable. However, the allocations may not include all of the actual expenses that would have been incurred by the Studio Business and may not reflect its combined results of operations, financial position and cash flows had it been a standalone company during the periods presented. It is not practicable to estimate actual costs that would have been incurred had the Studio Business been a standalone company and operated as an unaffiliated entity during the periods presented. Actual costs that might have been incurred had the Studio Business been a standalone company would depend on a number of factors, including the organizational structure, what corporate functions the Studio Business might have performed directly or outsourced, and strategic decisions the Company might have made in areas such as executive management, legal and other professional services, and certain corporate overhead functions. See Note 20 for further detail of the allocations included in these combined financial statements. | ||
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 disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; estimates related to the revenue recognition of sales or usage-based royalties; fair value of equity-based compensation; the allocations of costs to the Company for certain corporate and shared service functions in preparing the condensed combined financial statements on a carve-out | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; estimates related to the revenue recognition of sales or usage-based royalties; fair value of equity-based compensation; the allocations of costs to the Company for certain corporate and shared service functions in preparing the combined financial statements on a carve-out | ||
Investments Held in Trust Account | Restricted Cash At March 31, 2023 and 2022, the Company had restricted cash of $40.5 million and $13.4 million, respectively, primarily representing amounts related to required cash reserves for interest payments associated with the Production Tax Credit Facility, IP Credit Facility and Backlog Facility. Restricted cash is included within the “Other current assets” and “Other assets—non-current” | |||
Income taxes | Income Taxes The Company’s results have historically been included in the consolidated U.S. federal income tax return and U.S. state income tax filings of Lionsgate. The Company has computed its provision for income taxes on a separate return basis in these combined financial statements. The separate return method applies the accounting guidance for income taxes to the stand-alone financial statements as if the Company was a separate taxpayer and a stand-alone enterprise for the periods presented. The calculation of income taxes for the Company on a separate return basis requires significant judgment and use of both estimates and allocations. However, as discussed above in Note 1, the combined historical results of the Studio Business are presented on a managed basis rather than a legal entity basis, with certain deductions and other items that are included in the consolidated financial statements of Lionsgate, but not included in the combined financial statements of the Studio Business. Income taxes are accounted for using an asset and liability approach for financial accounting and reporting for income taxes and recognition and measurement of deferred assets are based upon the likelihood of realization of tax benefits in future years. Under this method, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax return purposes. Valuation allowances are established when management determines that it is more likely than not that some portion or all of the net deferred tax asset, on a jurisdiction-by-jurisdiction From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination, based on their technical merits. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. | |||
Description of Business | Description of Business Lions Gate Entertainment Corp. (“Lionsgate” or “Parent”) encompasses world-class motion picture and television studio operations (collectively referred to as the “Studio Business”) and the STARZ premium global subscription platforms (the “Starz Business”) to bring a unique and varied portfolio of entertainment to consumers around the world. Lionsgate has historically had three reportable business segments: (1) Motion Picture, (2) Television Production and (3) Media Networks. The Studio Business was substantially reflected in the Lionsgate Motion Picture and Television Production segments. These financial statements reflect the combination of the assets, liabilities, operations and cash flows reflecting the Studio Business which is referred to in these condensed combined financial statements as the “Studio Business” or the “Company”. These condensed combined financial statements of the Studio Business have been prepared on a carve-out The Studio Business consists of the Motion Picture and Television Production reportable segments, together with a substantially all of Lionsgate’s corporate general and administrative costs. Motion Picture consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired. Television Production consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series, and non-fiction | Description of Business Lions Gate Entertainment Corp. (“Lionsgate,” or “Parent”) encompasses world-class motion picture and television studio operations (collectively referred to as the “Studio Business”) and the STARZ-branded premium global subscription platforms (the “Starz Business”) to bring a unique and varied portfolio of entertainment to consumers around the world. Lionsgate has historically had three reportable business segments: (1) Motion Picture, (2) Television Production and (3) Media Networks. The Studio Business is substantially reflected in the Lionsgate Motion Picture and Television Production segments. These financial statements reflect the combination of the assets, liabilities, operations and cash flows reflecting the Studio Business which is referred to in these combined financial statements as the “Studio Business” or the “Company”. These combined financial statements of the Studio Business have been prepared on a carve-out The Studio Business consists of the Motion Picture and Television Production reportable segments, together with substantially all of Lionsgate’s corporate general and administrative costs. Motion Picture consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired. Television Production consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series, and non-fiction | ||
Generally Accepted Accounting Principles | Generally Accepted Accounting Principles These combined financial statements have been prepared in accordance with GAAP. | |||
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed combined financial statements of the Company have been derived from the consolidated financial statements and accounting records of Lionsgate and reflect certain allocations from Lionsgate as further discussed above. All significant intercompany balances and transactions within the Company have been eliminated in these condensed combined financial statements. | Principles of Consolidation The accompanying combined financial statements of the Company have been derived from the consolidated financial statements and accounting records of Lionsgate and reflect certain allocations from Lionsgate as further discussed above. All significant intercompany balances and transactions within the Company have been eliminated in these combined financial statements. | ||
Reclassifications | Reclassifications Certain amounts presented in prior years have been reclassified to conform to the current year’s presentation. | |||
Significant Accounting Policies | Significant Accounting Policies Revenue Recognition The Company’s Motion Picture and Television Production segments generate revenue principally from the licensing of content in domestic theatrical exhibition, home entertainment (e.g., digital media and packaged media), television, and international market places. Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax. Revenue also includes licensing of motion pictures and television programming (including Starz original productions) to the Starz Business. See Note 20 for further details. | |||
Licensing Arrangements | Licensing Arrangements. Fixed Fee or Minimum Guarantees: Sales or Usage Based Royalties: Revenues by Market or Product Line. • Theatrical. picture-by-picture sub-distributor • Home Entertainment. • Digital Media. (pay-per-view video-on-demand Digital Transaction Revenue Sharing Arrangements: nominal or no upfront sales price, the Company shares in the rental or sales revenues generated by the platform on a title-by-title download-to-own, download-to-rent, video-on-demand. Licenses of Content to Digital Platforms: subscription-video-on-demand • Packaged Media. Blu-ray, • Television . non-fiction • International. territory-by-territory non-fiction • Other. Revenues from the licensing of film and television content and the sales and licensing of music are recognized when the content has been delivered and the license period has begun, as discussed above. Revenues from the licensing of symbolic intellectual property (i.e., licenses of motion pictures or television characters, brands, storylines, themes or logos) is recognized over the corresponding license term. Commissions are recognized as such services are provided. | |||
Deferred Revenue | Deferred Revenue. Deferred revenue also relates to customer payments made in advance of when the Company fulfills its performance obligation and recognizes revenue. This primarily occurs under television production contracts, in which payments may be received as the production progresses, international motion picture contracts, where a portion of the payments are received prior to the completion of the movie and prior to license rights start dates, and pay television contracts with multiple windows with a portion of the revenues deferred until the subsequent exploitation windows commence. These arrangements do not contain significant financing components because the reason for the payment structure is not for the provision of financing to the Company, but rather to mitigate the Company’s risk of customer non-performance See Note 12 for further information. | |||
Investment in Films and Television Programs | Investment in Films and Television Programs General. Recording Cost. 12.8 Amortization. management’s estimate of ultimate revenue at the beginning of the current year expected to be recognized from the exploitation, exhibition or sale of the films or television programs. Ultimate Revenue. Development. Impairment Assessment. The fair value is determined based on a discounted cash flow analysis of the cash flows directly attributable to the title. To the extent the unamortized costs exceed the fair value, an impairment charge is recorded for the excess. The discounted cash flow analysis includes cash flows estimates of ultimate revenue and costs as well as a discount rate (a Level 3 fair value measurement, see Note 10 for further information). The discount rate utilized in the discounted cash flow analysis is based on the weighted average cost of capital of the Company plus a risk premium representing the risk associated with producing a particular film or television program. Estimates of future revenue involve measurement uncertainty and it is therefore possible that reductions in the carrying value of investment in films and television programs may be required as a consequence of changes in management’s future revenue estimates. | |||
Property and Equipment, net | Property and Equipment, net Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided for on a straight line basis over the following useful lives: Computer equipment and software 3—5 years Furniture and equipment 3—5 years Leasehold improvements Lease term or the useful life, whichever is shorter Land Not depreciated The Company periodically reviews and evaluates the recoverability of property and equipment. Where applicable, estimates of net future cash flows, on an undiscounted basis, are calculated based on future revenue estimates. If appropriate and where deemed necessary, a reduction in the carrying amount is recorded based on the difference between the carrying amount and the fair value based on discounted cash flows. | |||
Leases | Leases The Company determines if an arrangement is a lease at its inception. The expected term of the lease used for computing the lease liability and right-of-use non-lease non-lease Operating Leases. assets—non-current” liabilities—non-current” The present value of the lease payments is calculated using a rate implicit in the lease, when readily determinable. However, as most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate to determine the present value of the lease payments for the majority of its leases. Variable lease payments that are based on an index or rate are included in the measurement of ROU assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in the measurement of ROU assets and lease liabilities. The Company did not have any finance leases during the years ended March 31, 2023 and 2022. | |||
Investments | Investments Investments include investments accounted for under the equity method of accounting, and equity investments with and without readily determinable fair value. Equity Method Investments: Under the equity method of accounting, the Company’s share of the investee’s earnings (losses) are included in the “equity interests income (loss)” line item in the combined statements of operations. The Company records its share of the net income or loss of most equity method investments on a one quarter lag and, accordingly, during the years ended March 31, 2023, 2022 and 2021, the Company recorded its share of the income or loss generated by these entities for the years ended December 31, 2022, 2021 and 2020, respectively. Dividends and other distributions from equity method investees are recorded as a reduction of the Company’s investment. Distributions received up to the Company’s interest in the investee’s retained earnings are considered returns on investments and are classified within cash flows from operating activities in the combined statement of cash flows. Distributions from equity method investments in excess of the Company’s interest in the investee’s retained earnings are considered returns of investments and are classified within cash flows provided by investing activities in the combined statements of cash flows. Other Equity Investments: Impairments of Investments: For investments accounted for using the equity method of accounting or equity investments without a readily determinable fair value, the Company evaluates information available (e.g., budgets, business plans, financial statements, etc.) in addition to quoted market prices, if any, in determining whether an other-than-temporary decline in value exists. Factors indicative of an other-than-temporary decline include recurring operating losses, credit defaults and subsequent rounds of financing at an amount below the cost basis of the Company’s investment. | |||
Finite-Lived Intangible Assets | Finite-Lived Intangible Assets Identifiable intangible assets with finite lives are amortized to depreciation and amortization expense over their estimated useful lives, ranging from 5 to 15 years. Amortizable intangible assets are tested for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of the asset may not be recoverable. If a triggering event has occurred, an impairment analysis is required. The impairment test first requires a comparison of undiscounted future cash flows expected to be generated over the remaining useful life of an asset to the carrying value of the asset. The impairment test is performed at the lowest level of cash flows associated with the asset. If the carrying value of the asset exceeds the undiscounted future cash flows, the asset would not be deemed to be recoverable. Impairment would then be measured as the excess of the asset’s carrying value over its fair value, which would generally be estimated based on a discounted cash flow (“DCF”) model. The Company monitors its finite-lived intangible assets and changes in the underlying circumstances each reporting period for indicators of possible impairments or a change in the useful life or method of amortization of its finite-lived intangible assets. No such triggering events were identified during the years ended March 31, 2023 and 2022. | |||
Goodwill | Goodwill At March 31, 2023, the carrying value of goodwill was $795.6 million. Goodwill is allocated to the Company’s reporting units, which are its operating segments or one level below its operating segments (component level). Reporting units are determined by the discrete financial information available for the component and whether that information is regularly reviewed by segment management. Components are aggregated into a single reporting unit if they share similar economic characteristics. The Company’s reporting units for purposes of goodwill impairment testing during the years ended March 31, 2023, 2022 and 2021 were Motion Picture, and the Television and Talent Management businesses, both of which are part of the Television Production segment. Goodwill is not amortized, but is reviewed for impairment each fiscal year or between the annual tests if an event occurs or circumstances change that indicates it is more-likely-than-not likely than not that the fair value is less than the carrying value of the reporting unit. If the Company believes that as a result of its qualitative assessment it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, a quantitative impairment test is not required but may be performed at the option of the Company. A quantitative assessment requires determining the fair value of the Company’s reporting units. The determination of the fair value of each reporting unit utilizes DCF analyses and market-based valuation methodologies, which represent Level 3 fair value measurements. Fair value determinations require considerable judgment and requires assumptions and estimates of many factors, including revenue and market growth, operating margins and cash flows, market multiples and discount rates, and are sensitive to changes in these underlying assumptions and factors. Goodwill Impairment Assessments: For the Company’s annual goodwill impairment test for fiscal 2022, due to overall macroeconomic conditions, including the uncertainty of the longer-term economic impacts of the COVID-19 In fiscal 2023, during the second quarter ended September 30, 2022, due to continued adverse macro and microeconomic conditions, including the competitive environment, continued inflationary trends, recessionary economies worldwide, a decline in market valuations for companies in the media and entertainment industry, as well as potential capital market transactions, the Company updated its quantitative impairment assessment for all of its reporting units as of September 30, 2022 based on the most recent data. The DCF analysis components of the fair value estimates were determined primarily by discounting estimated future cash flows, which included weighted average perpetual nominal growth rates ranging from 1.5% to 3.5%, at a weighted average cost of capital (discount rate) ranging from 11.0% to 13.0%, which considered the risk of achieving the projected cash flows, including the risk applicable to the reporting unit, industry and market as a whole. Based on its quantitative impairment assessment, the Company determined that the fair value of its reporting units exceeded the carrying values for all of its reporting units. For the Company’s annual goodwill impairment test for fiscal 2023, the Company performed a qualitative goodwill impairment assessment for all of its reporting units. The Company’s qualitative assessment considered the increase in the market price of the Company’s common shares from September 30, 2022, the recent performance of the Company’s reporting units, and updated forecasts of performance and cash flows, as well as the continuing micro and macroeconomic environment, and industry considerations, and determined that since the quantitative assessment performed in the quarter ended September 30, 2022, there were no events or circumstances that rise to a level that would more likely than not reduce the fair value of those reporting units below their carrying values; therefore, a quantitative goodwill impairment analysis was not required. Management will continue to monitor all of its reporting units for changes in the business environment that could impact the recoverability of goodwill in future periods. The recoverability of goodwill is dependent upon the continued growth of revenue and cash flows from the Company’s business activities. Examples of events or circumstances that could result in changes to the underlying key assumptions and judgments used in the Company’s goodwill impairment tests, and ultimately impact the estimated fair value of the Company’s reporting units may include the duration of the COVID-19 | |||
Prints, Advertising and Marketing Expenses | Prints, Advertising and Marketing Expenses The costs of prints, advertising and marketing expenses are expensed as incurred. Advertising expenses for the year ended March 31, 2023 were $203.4 million (2022 — $201.6 million, 2021—$119.2 million) which were recorded as distribution and marketing expenses in the accompanying combined statements of operations. | |||
Government Assistance | Government Assistance The Company has access to government programs that are designed to promote film and television production and distribution in certain foreign countries. The Company also has access to similar programs in certain states within the U.S. that are designed to promote film and television production in those states. Tax credits earned with respect to expenditures on qualifying film and television productions are recorded as a reduction to investment in films and television programs when the qualifying expenditures have been incurred provided that there is reasonable assurance that the credits will be realized. See Note 3 and Note 19 for further information. | |||
Foreign Currency Translation | Foreign Currency Translation Monetary assets and liabilities denominated in currencies other than the functional currency are translated at exchange rates in effect at the balance sheet date. Resulting unrealized and realized gains and losses are included in the combined statements of operations. Foreign company assets and liabilities in foreign currencies are translated into U.S. dollars at the exchange rate in effect at the balance sheet date. Foreign company revenue and expense items are translated at the average rate of exchange for the fiscal year. Gains or losses arising on the translation of the accounts of foreign companies are included in accumulated other comprehensive income or loss, a separate component of equity. | |||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivative financial instruments are used by the Company in the management of its foreign currency and interest rate exposures. The Company’s policy is not to use derivative financial instruments for trading or speculative purposes. The Company uses derivative financial instruments to hedge its exposures to foreign currency exchange rate and interest rate risks. All derivative financial instruments are recorded at fair value in the combined balance sheets. See Note 10 for further information. The effective changes in fair values of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income or loss and included in unrealized gains (losses) on cash flow hedges until the underlying hedged item is recognized in earnings. The effective changes in the fair values of derivatives designated as cash flow hedges are reclassified from accumulated other comprehensive income or loss to net income or net loss when the underlying hedged item is recognized in earnings. If the derivative is not designated as a hedge, changes in the fair value of the derivative are recognized in earnings. See Note 18 for further discussion of the Company’s derivative financial instruments. | |||
Parent Net Investment | Parent Net Investment Parent net investment in the combined balance sheets is presented in lieu of shareholders’ equity and represents Lionsgate historical investment in the Company, the accumulated net earnings (losses) after taxes and the net effect of settled transactions with and allocations from Lionsgate. All transactions reflected in parent net investment by Lionsgate in the accompanying combined balance sheets have been considered as financing activities for purposes of the combined statements of cash flows. | |||
Share-Based Compensation | Share-Based Compensation Certain Company employees participate in the share-based compensation plans sponsored by Lionsgate. Lionsgate share-based compensation awards granted to employees of the Company consist of stock options, restricted share units and share appreciation rights. As such, the awards to Company employees are reflected in parent net investment within the combined statements of equity (deficit) at the time they are expensed. The combined statements of operations also include an allocation of Lionsgate corporate and shared employee share-based compensation expenses. The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value is recognized in earnings over the period during which an employee is required to provide service. See Note 13 for further discussion of the Company’s share-based compensation. | |||
Transfers of Financial Assets | Transfers of Financial Assets The Company enters into arrangements to sell certain financial assets (i.e., monetize its trade accounts receivables). For a transfer of financial assets to be considered a sale, the asset must be legally isolated from the Company and the purchaser must have control of the asset. Determining whether all the requirements have been met includes an evaluation of legal considerations, the extent of the Company’s continuing involvement with the assets transferred and any other relevant considerations. When the true sales criteria are met, the Company derecognizes the carrying value of the financial asset transferred and recognizes a net gain or loss on the sale. The proceeds from these arrangements with third party purchasers are reflected as cash provided by operating activities in the combined statements of cash flows. If the sales criteria are not met, the transfer is considered a secured borrowing and the financial asset remains on the combined balance sheets with proceeds from the sale recognized as debt and recorded as cash flows from financing activities in the combined statements of cash flows. See Note 19 for discussion of the Company’s accounts receivable monetization. | |||
Accounts Receivable | Accounts Receivable. | |||
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits at financial institutions and investments in money market mutual funds. | |||
Recent Accounting Pronouncements | Recent Accounting Pronouncements Segment Reporting: expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and therefore will be effective beginning with the Company’s financial statements issued for the fiscal year ending March 31, 2025 and subsequent interim periods, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance on its combined financial statements and disclosures. Income Taxes: | Recent Accounting Pronouncements Accounting Guidance Adopted in Fiscal 2023 Government Assistance: Accounting Guidance Adopted in Fiscal 2022 Reference Rate Reform: |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Accounting Policies [Line Items] | |||
Summary of Reconciliation Of Proceeds From Temporary Equity To Outstanding Value (Detail) | As of March 31, 2024 and December 31, 2023, the Class A Ordinary Shares reflected on the consolidated balance sheets are reconciled in the following table: Gross proceeds $ 750,000,000 Less: Fair value of Public Warrants at issuance (36,750,000 ) Class A Ordinary Share issuance costs (42,110,034 ) Plus: Accretion of carrying value to redemption value 123,510,300 Class A Ordinary Shares subject to possible redemption, December 31, 2023 794,650,266 Plus: Waiver of offering costs allocated to Class A Ordinary Share subject to possible redemption 17,325,000 Less: Accretion of carrying value to redemption value (7,846,453 ) Class A Ordinary Shares subject to possible redemption, March 31, 2024 $ 804,128,813 | As of December 31, 2023 and 2022, the Class A ordinary shares reflected on the consolidated balance sheets are reconciled in the following table: Gross proceeds $ 750,000,000 Less Fair value of Public Warrants at issuance (36,750,000 ) Class A ordinary share issuance costs (42,110,034 ) Plus: Accretion of carrying value to redemption value 85,722,976 Class A Ordinary Shares subject to possible redemption as of December 31, 756,862,942 Plus: Accretion of carrying value to redemption value 37,787,324 Class A ordinary shares subject to possible redemption as of December 31, $ 794,650,266 | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reflects the calculation of basic and diluted net income per ordinary shares for the three months ended March 31, 2024 and 2023: For the Three Months Ended For the Three Months Ended Class A Class B Class A Class B Basic and diluted net income per ordinary share Numerator: Allocation of net income $ 4,129,801 $ 1,032,450 $ 6,406,917 $ 1,601,729 Denominator: Basic and diluted weighted average shares outstanding 75,000,000 18,750,000 75,000,000 18,750,000 Basic and diluted net income per ordinary shares $ 0.06 $ 0.06 $ 0.09 $ 0.09 | As a result, diluted net income per share is the same as basic net income per share for the period presented. For The Year Ended December 31, 2023 For the Year Ended December 31, 2022 For the Period From November 3, 2021 Class A Class B Class A Class B Class A Class B Basic and diluted net income (loss) per ordinary share Numerator: Allocation of net income (loss) $ 13,360,506 $ 3,340,127 $ 17,918,827 $ 4,592,958 $ — $ (5,000 ) Denominator: Basic and diluted weighted average shares 75,000,000 18,750,000 73,150,685 18,750,000 — 18,750,000 Basic and diluted net income per share $ 0.18 $ 0.18 $ 0.24 $ 0.24 $ — $ — | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||
Accounting Policies [Line Items] | |||
Schedule Of Property and Equipment is Carried at Cost Less Accumulated Depreciation | Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided for on a straight line basis over the following useful lives: Computer equipment and software 3—5 years Furniture and equipment 3—5 years Leasehold improvements Lease term or the useful life, whichever is shorter Land Not depreciated |
Acquisition (Tables)
Acquisition (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended |
Dec. 31, 2023 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions | The preliminary allocation of the purchase price to the assets acquired and liabilities assumed, and a reconciliation to total consideration transferred is presented in the table below: (Amounts in millions) Cash and cash equivalents $ 54.1 Accounts receivable 287.6 Investment in films and television programs 367.9 Property and equipment 14.0 Intangible assets 4.0 Other assets (1) 205.0 Accounts payable and accrued liabilities (72.0 ) Content related payable (37.3 ) Participations and residuals (1) (203.7 ) Film related obligations (1) (105.8 ) Other liabilities and deferred revenue (1) (134.5 ) Preliminary fair value of net assets acquired 379.3 Goodwill 5.8 Preliminary purchase price consideration $ 385.1 (1) Includes current and non-current |
Schedule of Business Acquisition Pro Forma Information | Nine Months Ended 2023 2022 (Amounts in millions) Revenues $ 2,525.6 $ 2,778.4 Net income (loss) attributable Parent $ (323.7 ) $ 60.4 |
Investment in Films and Telev_2
Investment in Films and Television Programs (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Summary of Company's Investments in Films and Television Programs | The predominant monetization strategy for all of the Company’s investments in films and television programs is on an individual film basis. Total investment in films and television programs is as follows: December 31, March 31, (Amounts in millions) Investment in Films and Television Programs: Released, net of accumulated amortization $ 987.8 $ 779.9 Completed and not released 296.1 289.8 In progress 561.4 649.1 In development 62.9 67.9 Investment in films and television programs, net $ 1,908.2 $ 1,786.7 | The predominant monetization strategy for all of the Company’s investments in films and television programs is on an individual film basis. Total investment in films and television programs is as follows: March 31, March 31, (Amounts in millions) Investment in Films and Television Programs (1)(2) Released, net of accumulated amortization $ 779.9 $ 663.2 Completed and not released 289.8 121.4 In progress 649.1 980.1 In development 67.9 103.2 Investment in films and television programs, net $ 1,786.7 $ 1,867.9 (1) At March 31, 2023, the unamortized balance related to completed and not released and in progress theatrical films was $561.5 million. (2) Production tax credits reduced total investment in films and television programs by $181.2 million during the year ended March 31, 2023, which resulted in a reduction of direct operating expense related to the amortization of investment in films and television programs cost of approximately $84.3 million for the year ended March 31, 2023. |
Schedule of Estimated Future Amortization Expense of the Company in Film and Television Programs | The table below summarizes estimated future amortization expense for the Company’s investment in film and television programs as of March 31, 2023: Year Ending March 31, 2024 2025 2026 (Amounts in millions) Estimated future amortization expense: Released investment in films and television programs $ 369.3 $ 108.1 $ 82.7 Completed and not released investment in films and television programs $ 170.4 n/a n/a | |
Summary of Impairment in Investment in Films and Television Programs | Impairments: Nine Months Ended 2023 2022 (Amounts in millions) Impairments by segment: Motion Picture $ 27.5 $ 1.1 Television Production 6.6 4.7 $ 34.1 $ 5.8 | Impairments. Year Ended March 31, 2023 2022 2021 (Amounts in millions) Impairments by segment: Motion Picture $ 6.2 $ 1.2 $ 19.4 Television Production 4.6 34.9 10.3 Impairments not included in segment operating results (1) — — 15.4 $ 10.8 $ 36.1 $ 45.1 (1) Fiscal 2021: COVID-19 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |
Property, Plant and Equipment [Line Items] | |
Summary of Property and Equipment | March 31, 2023 March 31, 2022 (Amounts in millions) Leasehold improvements $ 27.6 $ 26.1 Property and equipment 15.2 19.0 Computer equipment and software 71.5 67.0 114.3 112.1 Less accumulated depreciation and amortization (91.7 ) (83.3 ) 22.6 28.8 Land 1.2 1.2 $ 23.8 $ 30.0 |
Investments (Tables)
Investments (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2023 | |
Summary of Company's Investments | The Company’s investments consisted of the following: December 31, March 31, (Amounts in millions) Investments in equity method investees $ 67.1 $ 63.1 Other investments 4.4 1.6 $ 71.5 $ 64.7 | The Company’s investments consisted of the following: March 31, March 31, (Amounts in millions) Investments in equity method investees $ 63.1 $ 53.9 Other investments 1.6 2.1 $ 64.7 $ 56.0 |
Summary of Summarized Financial Information | Summarized Financial Information. March 31, March 31, (Amounts in millions) Current assets $ 189.0 $ 125.3 Non-current $ 203.0 $ 166.4 Current liabilities $ 215.5 $ 253.9 Non-current $ 65.0 $ 59.8 | |
Summary of Financial Information for The Company's Equity Method Investees | Year Ended 2023 2022 2021 (Amounts in millions) Revenues $ 185.3 $ 86.0 $ 84.6 Gross profit $ 35.1 $ 26.5 $ 32.0 Net loss $ (39.0 ) $ (46.1 ) $ (62.6 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2023 | |
Summary of Goodwill | Changes in the carrying value of goodwill by reporting segment were Motion Picture Television Production Total (Amounts in millions) Balance as of March 31, 2023 $ 393.7 $ 401.9 $ 795.6 Acquisition of eOne (see Note 2) 1.0 4.8 5.8 Balance as of December 31, 2023 $ 394.7 $ 406.7 $ 801.4 | Goodwill There have been no changes to the balance of goodwill during each of the years ended March 31, 2023, 2022 and 2021. Goodwill by reportable segment for each period is as follows: Motion Picture Television Production Total (Amounts in millions) Balance as of March 31, 2023, 2022 and 2021 $ 393.7 $ 401.9 $ 795.6 |
Summary of Intangible Assets | Intangible Assets Finite-Lived Intangible Assets. March 31, 2023 March 31, 2022 Gross Accumulated Net Carrying Gross Accumulated Net Carrying (Amounts in millions) Finite-lived intangible assets subject to amortization: Customer relationships $ 31.0 $ 10.0 $ 21.0 $ 31.0 $ 7.9 $ 23.1 Trademarks and trade names 3.6 2.6 1.0 3.6 2.2 1.4 Other 23.9 19.0 4.9 23.9 15.8 8.1 $ 58.5 $ 31.6 $ 26.9 $ 58.5 $ 25.9 $ 32.6 |
Debt (Tables)
Debt (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Summary of Total Debt | Total debt of the Company, excluding film related obligations, was as follows: December 31, 2023 March 31, 2023 (Amounts in millions) Senior Credit Facilities: Revolving Credit Facility $ 375.0 $ — Term Loan A 407.1 428.2 Term Loan B 822.3 831.7 Total corporate debt 1,604.4 1,259.9 Unamortized debt issuance costs (11.7 ) (16.3 ) Total debt, net 1,592.7 1,243.6 Less current portion (50.3 ) (41.4 ) Non-current $ 1,542.4 $ 1,202.2 | Total debt of the Company, excluding film related and other obligations, was as follows: March 31, March 31, (Amounts in millions) Senior Credit Facilities: Revolving Credit Facility $ — $ — Term Loan A 428.2 638.5 Term Loan B 831.7 844.2 Total corporate debt 1,259.9 1,482.7 Unamortized debt issuance costs (16.3 ) (23.6 ) Total debt, net 1,243.6 1,459.1 Less current portion (41.4 ) (222.8 ) Non-current $ 1,202.2 $ 1,236.3 |
Summary of Future Annual Contractual Principal Payment Commitments of Debt | The following table sets forth future annual contractual principal payment commitments of debt as of March 31, 2023: Maturity Year Ending March 31, Debt Type 2024 2025 2026 2027 Thereafter Total (Amounts in millions) Revolving Credit Facility April 2026 $ — $ — $ — $ — $ — $ — Term Loan A April 2026 28.9 41.2 44.5 313.6 — 428.2 Term Loan B March 2025 12.5 819.2 — — — 831.7 $ 41.4 $ 860.4 $ 44.5 $ 313.6 $ — $ 1,259.9 Less aggregate unamortized debt issuance costs (16.3 ) $ 1,243.6 | |
Summary of Loss on Extinguishment of Debt | Year Ended March 31, 2023 2022 (Amounts in millions) Loss on Extinguishment of Debt: Term Loan A prepayment $ (1.3 ) $ — Credit Agreement amendment (Revolving Credit Facility and Term Loan A) (1) — (1.7 ) Termination of a portion of Revolving Credit Facility commitments — (1.1 ) Term Loan B repurchases and other — (0.6 ) $ (1.3 ) $ (3.4 ) (1) See Accounting for the Credit Agreement Amendment | |
Summary of Accounting for the Credit Agreement Amendment | The following table summarizes the accounting for the Credit Agreement Amendment on April 6, 2021, as described above: Year Ended March 31, 2022 Loss on Recorded as a Total (Amounts in millions) Credit Agreement amendment (Revolving Credit Facility and Term Loan A): New debt issuance costs and call premiums $ 0.6 $ 5.6 $ 6.2 Previously incurred debt issuance costs 1.1 18.4 19.5 $ 1.7 $ 24.0 $ 25.7 |
Film Related Obligations (Table
Film Related Obligations (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Disclosure In Entirety Of Film Related Obligations [Line Items] | |||
Summary of Disclosure In Entirety Of Film Related Obligations | December 31, March 31, (Amounts in millions) Film related obligations: Production Loans $ 1,279.2 $ 1,349.9 Production Tax Credit Facility 250.0 231.8 Backlog Facility and Other 175.0 226.0 IP Credit Facility 117.3 143.8 Total film related obligations 1,821.5 1,951.5 Unamortized debt issuance costs (8.9 ) (11.4 ) Total film related obligations, net 1,812.6 1,940.1 Less current portion (1,258.2 ) (923.7 ) Total non-current $ 554.4 $ 1,016.4 | March 31, March 31, (Amounts in millions) Film related obligations: Production Loans $ 1,349.9 $ 966.3 Production Tax Credit Facility 231.8 224.0 Backlog Facility and Other 226.0 — IP Credit Facility 143.8 123.5 Total film related obligations 1,951.5 1,313.8 Unamortized debt issuance costs (11.4 ) (8.4 ) Total film related obligations, net 1,940.1 1,305.4 Less current portion (923.7 ) (659.5 ) Total non-current $ 1,016.4 $ 645.9 | |
Summary of Forth Future Annual Repayment | The following table sets forth future annual contractual principal payment commitments of debt as of March 31, 2023: Maturity Year Ending March 31, Debt Type 2024 2025 2026 2027 Thereafter Total (Amounts in millions) Revolving Credit Facility April 2026 $ — $ — $ — $ — $ — $ — Term Loan A April 2026 28.9 41.2 44.5 313.6 — 428.2 Term Loan B March 2025 12.5 819.2 — — — 831.7 $ 41.4 $ 860.4 $ 44.5 $ 313.6 $ — $ 1,259.9 Less aggregate unamortized debt issuance costs (16.3 ) $ 1,243.6 | ||
Summary of IP Credit Facility Subject To Cumulative Minimum Guaranteed Payment | The cash flows generated from the exploitation of the rights will be applied to repay the IP Credit Facility subject to cumulative minimum guaranteed payment amounts as set forth below: Cumulative Period From September 29, 2022 Through: Cumulative Minimum Payment Due Date (in millions) September 30, 2023 $ 30.4 November 14, 2023 September 30, 2024 $ 60.7 November 14, 2024 September 30, 2025 $ 91.1 November 14, 2025 September 30, 2026 $ 121.4 November 14, 2026 July 30, 2027 $ 161.9 July 30, 2027 | The cash flows generated from the exploitation of the rights will be applied to repay the IP Credit Facility subject to cumulative minimum guaranteed payment amounts as set forth below: Cumulative Period From September 29, 2022 Through: Cumulative Payment Due Date (Amounts in millions) September 30, 2023 $30.4 November 14, 2023 September 30, 2024 $60.7 November 14, 2024 September 30, 2025 $91.1 November 14, 2025 September 30, 2026 $121.4 November 14, 2026 July 30, 2027 $161.9 July 30, 2027 | |
Film Related Obligations [Member] | |||
Disclosure In Entirety Of Film Related Obligations [Line Items] | |||
Summary of Forth Future Annual Repayment | The following table sets forth future annual repayment of film related obligations as of March 31, 2023: Year Ending March 31, 2024 2025 2026 2027 2028 Thereafter Total (Amounts in millions) Production Loans $ 810.0 $ 539.9 $ — $ — $ — $ — $ 1,349.9 Production Tax Credit Facility (1) — 231.8 — — — — 231.8 Backlog Facility and Other (1) 77.6 — 29.4 — 119.0 — 226.0 IP Credit Facility (2) 36.1 24.6 30.4 30.4 22.3 — 143.8 $ 923.7 $ 796.3 $ 59.8 $ 30.4 $ 141.3 $ — $ 1,951.5 Less unamortized debt issuance costs (11.4 ) $ 1,940.1 (1) The repayment dates are based on the projected future amount of collateral available under these facilities. Net advances and payments under these facilities can fluctuate depending on the amount of collateral available. (2) Repayment dates are based on the projected future cash flows generated from the exploitation of the rights, subject to a minimum guaranteed payment amount, as applicable (see further information below). |
Trust Account (Tables)
Trust Account (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Securities, Available-for-Sale and Held-to-Maturity, after Allowance for Credit Loss [Abstract] | ||
Summary of Available-for-sale Securities Reconciliation | Since all of the Company’s permitted investments consist of a money market fund and a demand deposit account, fair values of its investments are determined by Level 1 inputs utilizing quoted prices (unadjusted) in active markets for identical assets as follows: Quoted Prices Money market fund as of December 31, 2023 $ 794,750,266 | Since all of the Company’s permitted investments consist of U.S. government treasury bills and cash, fair values of its investments are determined by Level 1 inputs utilizing quoted prices (unadjusted) in active markets for identical assets as follows: Quoted Prices in Active Markets (Level 1) Money market fund as of December 31, 2022 $ 441,037 Money market fund as of December 31, 2023 $ 794,750,266 |
Summary of excluding gross unrealized holding gain | The carrying value, excluding gross unrealized holding gain and fair value of held to maturity securities on December 31 Amortized Cost Gross Holding Gain Quoted Prices in Active Markets (Level 1) U.S. Government Treasury Securities as of December 31, 2022 (1) $ 759,271,905 $ 161,421 $ 759,433,326 (1) Maturity date March 23, 2023. |
Recurring Fair Value Measurem_2
Recurring Fair Value Measurements (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | ||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth by level within the fair value hierarchy the Company’s liability that was accounted for at fair value on a recurring basis: (Level 1) (Level 2) (Level 3) Private placement warrants as of March 31, 2024 $ — $ — $ 234,667 PIPE with reduction right liability as of March 31, 2024 $ — $ — $ 19,399,127 (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2023 $ — $ — $ 469,333 PIPE with reduction right liability as of December 31, 2023 $ — $ — $ 18,253,010 | The following table sets forth by level within the fair value hierarchy the Company’s liabilities that were accounted for at fair value on a recurring basis: (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2023 $ — $ — $ 469,333 PIPE with reduction right liability as of December 31, 2023 $ — $ — $ 18,253,010 (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2022 $ — $ — $ 3,285,333 |
Summary of quantitative information regarding Level 3 fair value measurements inputs as their measurement dates | The following table provides quantitative information regarding Level 3 fair value measurements inputs as of their measurement dates: March 31, December 31, Ordinary share price $ 10.70 $ 10.60 Exercise price $ 11.50 $ 11.50 Volatility 40 % 45 % Term 5.11 5.28 Risk-free rate 4.21 % 3.85 % Dividend yield 0 % 0 % Probability of completing Lionsgate Business Combination (1) 94.9 % 91.0 % Probability of completing a different business combination 0.6 % (2) 0.8 % ( 3 ) Note: The private placement will be forfeited for no consideration if the announced Lionsgate Business Combination is completed (estimated probability of 94.9 % as of March 31, 2024). (1) Estimated by solving for the implied probability of completing the Lionsgate Business Combination based on the public warrant price and the contemplated exchange price of $0.50, adjusted for the time value of money. (2) Derived as follows: 11%*(1-94.9%), where 11 % represents the probability of completing a different business combination based on public trading of rights for special purpose acquisition companies and 94.9 % represents the probability of completing the Lionsgate Business Combination. (3) Derived as follows: 9%*(1-91%), where 9 % represents the probability of completing a different business combination based on public trading of rights for special purpose acquisition companies and 91 % represents the probability of completing the Lionsgate Business Combination. | The following table provides quantitative information regarding Level 3 fair value measurement inputs for the private placement warrants as of their measurement dates: Inputs: As of December 31, 2023 As of December 31, 2022 Ordinary share stock price $ 10.60 $ 9.94 Exercise price 11.50 11.50 Volatility 45 % 31 % Term 5.28 5.75 Risk-free rate of interest 3.85 % 3.98 % Dividend yield 0 % 0 % Probability of completing the Business Combination 91 % (1) N/A Probability of completing a different business combination 0.8 % (2) 9 % (3) Note: The private placement will be forfeited for no consideration if the announced Business Combination with StudioCo is completed (estimated probability of (1) Estimated by solving for the implied probability of completing the Business Combination with StudioCo (2) Derived as follows: 9%*(1-91%), with StudioCo (3) Based on public trading of rights for special purpose acquisition companies and their implied business combination probabilities as of December 31, 2022. |
Summary of The change in the fair value of the warrant liabilities | The change in the fair value of the warrant liabilities for the three months ended March 31, 2024 and 2023 is summarized as follows: Level 3 Derivative warrant liability at December 31, 2023 $ 469,333 Change in fair value of derivative warrant liability (234,666 ) Level 3 Derivative warrant liability at March 31, 2024 $ 234,667 Level 3 Derivative warrant liability at December 31, 202 2 $ 3,285,333 Change in fair value of derivative warrant liability (469,333 ) Level 3 Derivative warrant liability at March 31, 202 3 $ 2,816,000 | The change in the fair value of the warrant liabilities for the years ended December 31, 2022 and 2023, respectively, is summarized as follows: Level 3 Derivative warrant liability at December 31, 2021 $ — Issuance of Private Warrants on January 10, 2022 17,482,666 Change in fair value of derivative warrant liability (14,197,333 ) Level 3 Derivative warrant liability at December 31, 2022 3,285,333 Change in fair value of derivative warrant liability (2,816,000 ) Level 3 Derivative warrant liability at December 31, 2023 $ 469,333 |
Summary of quantitative information regarding Level 3 fair value measurement inputs for the PIPE with reduction right liability | The following table provides quantitative information regarding Level 3 fair value measurement inputs for the PIPE with reduction right liability as of their measurement dates: Inputs: As of As of Ordinary share stock price $ 10.70 $ 10.60 Term (1) 0.11 0.28 Risk-free rate of interest (2) 5.37 % 5.20 % Probability of completing the Lionsgate Business Combination (3) 94.9 % 91 % (1) Assumes the transaction closes on May 10, 2024 as of March 31, 2024 and April 10, 2024 as of December 31, 2023. (2) Reflects 1-month 3-month (3) Estimated by solving for the implied probability of completing the Lionsgate Business Combination based on the public warrant price and the contemplated exchange price of $0.50, adjusted for the time value of money. | The following table provides quantitative information regarding Level 3 fair value measurement inputs for the PIPE with reduction right liability as of their measurement dates: Inputs: As of As of Ordinary share stock price $ 10.62 $ 10.60 Term (1) 0.30 0.28 Risk-free rate of interest (2) 5.24 % 5.20 % Probability of completing the Business Combination (3) 91 % 91 % (1) Assumes the transaction closes on April 10, 2024. (2) Reflects 3-month US treasury, secondary market rate as of the valuation date. (3) Estimated by solving for the implied probability of completing the Business Combination with St u based on the public warrant price and the contemplated exchange price of $ 0.50 , adjusted for the time value of money. |
Summary fair value of the PIPE with reduction right liability | The change in the fair value of the PIPE with reduction right liability for the quarter ended March 31, 2024 is summarized as follows: Level 3 PIPE reduction right liability December 31, 2022 $ — Issuance of PIPE with reduction right liability on December 22, 2023 18,797,300 Change in fair value of PIPE reduction right liability (544,290 ) Level 3 PIPE reduction right liability December 31, 2023 18,253,010 Change in fair value of PIPE reduction right liability 1,146,117 Level 3 PIPE reduction right liability March 31, 2024 $ 19,399,127 | The change in the fair value of the PIPE with reduction right liability for the year ended December 31, 2023 is summarized as follows: Level 3 PIPE reduction right liability December 31, 2022 $ — Issuance of PIPE with 18,797,300 Change in fair value of PIPE reduction right liability (544,290 ) Level 3 PIPE with $ 18,253,010 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Summary of redeemable noncontrolling interests | The table below presents the reconciliation of changes in redeemable noncontrolling interests: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Beginning balance $ 343.6 $ 321.2 Net loss attributable to redeemable noncontrolling interests (7.3 ) (7.4 ) Noncontrolling interests discount accretion — 13.4 Adjustments to redemption value 71.5 34.7 Cash distributions (1.0 ) (4.8 ) Purchase of noncontrolling interest (0.6 ) — Ending balance $ 406.2 $ 357.1 | The table below presents the reconciliation of changes in redeemable noncontrolling interests: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Beginning balance $ 321.2 $ 219.1 $ 167.8 Net loss attributable to redeemable noncontrolling interests (9.2 ) (17.7 ) (15.9 ) Noncontrolling interests discount accretion 13.2 22.7 22.7 Adjustments to redemption value 78.4 98.6 47.1 Other 1.7 — — Cash distributions (6.6 ) (1.5 ) (2.6 ) Purchase of noncontrolling interest (55.1 ) — — Ending balance $ 343.6 $ 321.2 $ 219.1 |
Revenue (Tables)
Revenue (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Summary of revenue by segment, market or product line | The table below presents revenues by segment, market or product line for the nine months ended December 31, 2023 and 2022: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Revenue by Type: Motion Picture Theatrical $ 194.2 $ 28.6 Home Entertainment Digital Media 495.3 378.5 Packaged Media 63.0 55.3 Total Home Entertainment 558.3 433.8 Television 214.5 147.0 International 255.3 166.5 Other 23.3 15.7 Total Motion Picture revenues (1) 1,245.6 791.6 Television Production Television 554.2 973.1 International 137.7 219.4 Home Entertainment Digital Media 113.4 205.1 Packaged Media 1.0 2.7 Total Home Entertainment 114.4 207.8 Other 54.4 68.3 Total Television Production revenues (2) 860.7 1,468.6 Total revenues $ 2,106.3 $ 2,260.2 (1) Total Motion Picture revenues for the nine months ended December 31, 2023 and 2022, includes $113.7 million and $30.0 million, respectively, of revenues from licensing Motion Picture segment product to the Starz Business. (2) Total Television Production revenues for the nine months ended December 31, 2023 and 2022, includes $308.4 million and $618.6 million, respectively, of revenues from licensing Television Production segment product to the Starz Business. | The table below presents revenues by segment, market or product line for the fiscal years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Revenue by Type: Motion Picture Theatrical $ 120.7 $ 65.3 $ 12.0 Home Entertainment Digital Media 527.5 497.1 461.5 Packaged Media 70.5 115.0 139.5 Total Home Entertainment 598.0 612.1 601.0 Television 217.8 257.9 230.2 International 365.0 234.4 217.0 Other 22.2 15.6 20.9 Total Motion Picture revenues (1) 1,323.7 1,185.3 1,081.1 Television Production Television 1,144.3 1,094.5 474.0 International 277.7 256.5 164.5 Home Entertainment Digital Media 241.7 85.1 127.1 Packaged Media 3.3 6.9 5.7 Total Home Entertainment 245.0 92.0 132.8 Other 93.1 88.0 60.5 Total Television Production revenues (2) 1,760.1 1,531.0 831.8 Total revenues $ 3,083.8 $ 2,716.3 $ 1,912.9 (1) Total Motion Picture revenues for the years ended March 31, 2023, 2022 and 2021, includes $44.2 million, $38.0 million and $19.8 million, respectively, of revenues from licensing Motion Picture segment product to the Starz Business. (2) Total Television Production revenues for the years ended March 31, 2023, 2022 and 2021, includes $731.3 million, $610.2 million and $184.3 million, respectively, of revenues from licensing Television Production segment product to the Starz Business. |
Summary of remaining performance obligations | Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at December 31, 2023 are as follows: Year Ending March 31, Rest of Year Ending 2025 2026 Thereafter Total (Amounts in millions) Remaining Performance Obligations $ 486.2 $ 917.3 $ 431.9 $ 106.7 $ 1,942.1 | Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at March 31, 2023 are as follows: Year Ending March 31, 2024 2025 2026 Thereafter Total (Amounts in millions) Remaining Performance Obligations $ 1,053.2 $ 440.1 $ 118.1 $ 86.5 $ 1,697.9 |
Summary of accounts receivable, contract assets and deferred revenue | Changes in the provision for doubtful accounts consisted of the following: March 31, (Benefit) provision Other (1) Uncollectible written-off (2) December 31, (Amounts in millions) Provision for doubtful accounts $ 8.7 $ 0.3 $ 1.3 $ (3.3 ) $ 7.0 (1) Represents the provision for doubtful accounts acquired in the acquisition of eOne (see Note 2). (2) Represents primarily accounts receivable previously reserved for bad debt from customers in Russia, related to Russia’s invasion of Ukraine. | Changes in the provision for doubtful accounts consisted of the following: March 31, 2022 (Benefit) provision (1) Uncollectible written-off (2) March 31, (Amounts in millions) Trade accounts receivable $ 11.4 $ 0.7 $ (3.4 ) $ 8.7 (1) Represents a provision for doubtful accounts offset by collections on accounts receivable previously reserved. (2) Includes $2.5 million related to accounts receivable previously reserved for bad debt from customers in Russia, related to Russia’s invasion of Ukraine. |
Share-Based Compensation (Table
Share-Based Compensation (Table) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Summary Of Share-Based Compensation Expense | The Company recognized the following share-based compensation expense during the nine months ended December 31, 2023 and 2022: Nine Months Ended 2023 2022 (Amounts in millions) Compensation Expense: Stock options $ 1.4 $ 1.4 Restricted share units and other share-based compensation 32.6 21.6 Share appreciation rights 0.2 0.1 Total Studio employee share-based compensation expense 34.2 23.1 Corporate allocation of share-based compensation 12.1 17.0 $ 46.3 $ 40.1 Impact of accelerated vesting on equity awards (1) 7.3 2.1 Total share-based compensation expense $ 53.6 $ 42.2 (1) Represents the impact of the acceleration of vesting schedules for equity awards pursuant to certain severance arrangements. | The Company recognized the following share-based compensation expense during the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Compensation Expense: Stock options $ 2.3 $ 9.6 $ 5.6 Restricted share units and other share-based compensation 39.3 38.6 27.7 Share appreciation rights 0.9 2.4 3.2 Total Studio employee share-based compensation expense 42.5 50.6 36.5 Corporate allocation of share-based compensation 26.7 19.6 18.0 69.2 70.2 54.5 Impact of accelerated vesting on equity awards (1) 4.2 — 3.5 Total share-based compensation expense 73.4 70.2 58.0 Tax impact (2) (17.8 ) (16.7 ) (13.8 ) Reduction in net income $ 55.6 $ 53.5 $ 44.2 (1) Represents the impact of the acceleration of vesting schedules for equity awards pursuant to certain severance arrangements. (2) Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements prior to the effects of changes in the valuation allowance. |
Summary Of Share-Based Compensation Expense, By Expense Category | Share-based compensation expense, by expense category, consisted of the following: Nine Months Ended 2023 2022 (Amounts in millions) Share-Based Compensation Expense: General and administration $ 46.3 $ 40.1 Restructuring and other 7.3 2.1 $ 53.6 $ 42.2 | Share-based compensation expense, by expense category, consisted of the following: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Share-Based Compensation Expense: General and administration $ 69.2 $ 70.2 $ 54.5 Restructuring and other 4.2 — 3.5 $ 73.4 $ 70.2 $ 58.0 |
Summary Of Stock Option, And Share Appreciation Rights | The following table sets forth the stock option, share appreciation rights (“SARs”), restricted stock and restricted share unit activity on grants related directly to the Company employees and Lionsgate corporate and shared service employees during the nine months ended December 31, 2023: Stock Options and SARs Restricted Stock and Restricted Share Units Lions Gate Class A Lions Gate Class B Non-Voting Lions Gate Class A Lions Gate Class B Non-Voting Number Weighted- Number Weighted- Number Weighted- Number Weighted- Grant-Date (Number of shares in millions) Outstanding at March 31, 2023 4.3 $ 26.35 19.0 $ 15.50 — (1) $ 10.95 10.8 $ 9.90 Granted — — 0.3 $ 8.88 0.1 $ 8.87 6.2 $ 8.20 Options exercised or restricted stock or RSUs vested — (1) $ 7.70 (0.1 ) $ 7.11 — (1) $ 10.89 (6.9 ) $ 9.33 Forfeited or expired (1.9 ) $ 30.81 (2.1 ) $ 27.72 — — (0.3 ) $ 8.72 Outstanding at December 31, 2023 2.4 $ 22.96 17.1 $ 13.92 0.1 $ 9.27 9.8 $ 8.69 (1) Represents less than 0.1 million shares. | The following table sets forth the stock option, and share appreciation rights (“SARs”) activity on grants related directly to the Company employees and Lionsgate corporate and shared service employees during the year ended March 31, 2023: Stock Options and SARs Existing Class A Common Stock Existing Class B Common Stock Number Weighted- Weighted- Aggregate (2) Number Weighted- Weighted- Aggregate (2) (Amounts in millions, except for weighted-average exercise price and years) Outstanding at March 31, 2022 5.4 $ 24.34 20.5 $ 15.58 Granted — $ — 0.3 $ 8.97 Exercised — (1) $ 7.70 (0.4 ) $ 10.10 Forfeited or expired (1.1 ) $ 16.81 (1.3 ) $ 16.86 Outstanding at March 31, 2023 4.3 $ 26.35 2.16 $ 0.2 19.1 $ 15.50 5.44 $ 11.6 Vested or expected to vest at March 31, 2023 4.3 $ 26.35 2.16 $ 0.2 19.0 $ 15.52 5.43 $ 11.5 Exercisable at March 31, 2023 4.1 $ 26.60 2.36 $ 0.2 15.2 $ 17.09 4.89 $ 5.1 (1) Represents less than 0.1 million shares. (2) The intrinsic value is calculated for each in the money stock option and SAR as the difference between the closing price of Lionsgate’s common stock on March 31, 2023 and the exercise price. |
Summary Of Weighted Average Grant-Date Fair Value Of Options Granted | The fair value of each option award is estimated on the date of grant using a closed-form option valuation model (Black-Scholes). The following table presents the weighted average grant-date fair value of options granted in the years ended March 31, 2023, 2022 and 2021, and the weighted average applicable assumptions used in the Black-Scholes option-pricing model for stock options and share-appreciation rights granted during the years then ended: Year Ended March 31, 2023 2022 2021 Weighted average fair value of grants $4.56 $6.16 $3.06 Weighted average assumptions: Risk-free interest rate (1) 2.8% - 3.7% 1.1% - 2.45% 0.2% - 0.9% Expected option lives (in years) (2) 3.5 - 7 3.3 - 7 2.5 - 7 Expected volatility for options (3) 44% 42% - 44% 37% - 42% Expected dividend yield (4) 0% 0% 0% (1) The risk-free rate assumed in valuing the options is based on the U.S. Treasury Yield curve in effect applied against the expected term of the option at the time of the grant. (2) The expected term of options granted represents the period of time that options granted are expected to be outstanding. (3) Expected volatilities are based on implied volatilities from traded options on Lionsgate’s shares, historical volatility of Lionsgate’s shares and other factors. (4) The expected dividend yield is estimated by dividing the expected annual dividend by the market price of Lionsgate’s shares at the date of grant. The total intrinsic value (based on Lionsgate’s share price) of options During the year ended March 31, 2023, less than 0.1 million shares (2022 and 2021—less than 0.1 million shares) were cancelled to fund withholding tax obligations upon exercise of options. | |
Summary Of Restricted Share Unit And Restricted Stock Activity | Restricted Share Units The following table sets forth the restricted share unit and restricted stock activity on grants related directly to Company employees and Lionsgate corporate and shared service employees during the year ended March 31, 2023: Restricted Share Units and Restricted Stock Existing Class A Weighted- Existing Weighted- (Amounts in millions, except for weighted-average grant date fair value) Outstanding at March 31, 2022 — (1) $ 11.51 5.5 $ 11.87 Granted — (1) $ 10.27 9.3 $ 9.08 Vested — (1) $ 11.19 (3.8 ) $ 11.89 Forfeited — (1) $ 30.56 (0.2 ) $ 10.22 Outstanding at March 31, 2023 — (1) $ 10.95 10.8 $ 9.90 (1) Represents less than 0.1 million shares. The fair values of restricted share units and restricted stock are determined based on the market value of the shares on the date of grant. The total fair value of restricted share units and restricted stock vested during the year ended March 31, 2023 was $40.0 million (2022—$51.0 million, 2021—$26.0 million). | |
Summary Of Total Remaining Unrecognized Compensation Cost | The following table summarizes the total remaining unrecognized compensation cost as of March 31, 2023 related to non-vested Total Unrecognized Compensation Cost Weighted Average Remaining Years (Amounts in Stock Options $ 4.9 0.6 Restricted Share Units and Restricted Stock 44.7 1.0 Total (1) $ 49.6 (1) Represents remaining unrecognized compensation cost related to the Company’s employees and an allocation of compensation costs for Lionsgate corporate and shared service employees. Under Lionsgate’s stock option and long term incentive plans, Lionsgate withholds shares to satisfy minimum statutory federal, state and local tax withholding obligations arising from the vesting of restricted share units and restricted stock. During the year ended March 31, 2023, 1.5 million shares (2022 —1.8 million shares, 2021—0.7 million shares) were withheld upon the vesting of restricted share units and restricted stock. |
Leases (Table)
Leases (Table) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 12 Months Ended |
Mar. 31, 2023 | |
Lessee Operating Leases [Line Items] | |
Summary Of Components Of Lease Cost | The components of lease cost were as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Operating lease cost (1) $ 35.3 $ 42.1 $ 34.6 Short-term lease cost (2) 145.0 233.1 129.5 Variable lease cost (3) 2.8 1.3 2.5 Total lease cost $ 183.1 $ 276.5 $ 166.6 (1) Operating lease cost amounts primarily represent the amortization of right-of-use (2) Short-term lease cost primarily consists of leases of facilities and equipment associated with film and television productions and are capitalized when incurred. (3) Variable lease cost primarily consists of insurance, taxes, maintenance and other operating costs. |
Summary Of Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to leases was as follows: Category Balance Sheet Location March 31, March 31, Operating Leases (Amounts in millions) Right-of-use Other assets—non-current $ 116.8 $ 126.0 Lease liabilities (current) Other accrued liabilities $ 37.7 $ 31.4 Lease liabilities (non-current) Other liabilities—non-current 96.4 112.7 $ 134.1 $ 144.1 |
Summary Of Weighted Average In Operating Leases | March 31, March 31, Weighted average remaining lease term (in years): Operating leases 4.3 3.6 Weighted average discount rate: Operating leases 3.65 % 2.42 % |
Summary Of Expected Future Payments Relating To The Company's Lease Liabilities | The expected future payments relating to the Company’s lease liabilities at March 31, 2023 are as follows: Operating Leases (Amounts in Year ending March 31, 2024 $ 41.7 2025 32.4 2026 24.6 2027 17.1 2028 16.2 Thereafter 13.3 Total lease payments 145.3 Less imputed interest (11.2 ) Total $ 134.1 |
Fair Value Measurements (Table)
Fair Value Measurements (Table) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Summary Of Assets And Liabilities Required To Be Carried At Fair Value On A Recurring Basis | The following table sets forth by level within the fair value hierarchy the Company’s liability that was accounted for at fair value on a recurring basis: (Level 1) (Level 2) (Level 3) Private placement warrants as of March 31, 2024 $ — $ — $ 234,667 PIPE with reduction right liability as of March 31, 2024 $ — $ — $ 19,399,127 (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2023 $ — $ — $ 469,333 PIPE with reduction right liability as of December 31, 2023 $ — $ — $ 18,253,010 | The following table sets forth by level within the fair value hierarchy the Company’s liabilities that were accounted for at fair value on a recurring basis: (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2023 $ — $ — $ 469,333 PIPE with reduction right liability as of December 31, 2023 $ — $ — $ 18,253,010 (Level 1) (Level 2) (Level 3) Private placement warrants as of December 31, 2022 $ — $ — $ 3,285,333 | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Summary Of Assets And Liabilities Required To Be Carried At Fair Value On A Recurring Basis | The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of December 31, 2023 and March 31, 2023: December 31, 2023 March 31, 2023 Level 1 Level 2 Total Level 1 Level 2 Total (Amounts in millions) Assets: Forward exchange contracts (see Note 16) $ — $ — $ — $ — $ 2.9 $ 2.9 Interest rate swaps (see Note 16) — 34.2 34.2 — 41.1 41.1 Liabilities: Forward exchange contracts (see Note 16) — (2.1 ) (2.1 ) — (0.1 ) (0.1 ) | The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of March 31, 2023 and 2022: March 31, 2023 March 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in millions) Equity securities with a readily determinable fair value $ — $ — $ — $ 0.5 $ — $ 0.5 Forward exchange contracts (see Note 18) — 2.9 2.9 — 3.5 3.5 Interest rate swaps (see Note 18) (1) — 41.1 41.1 — 120.1 120.1 Liabilities: Forward exchange contracts (see Note 18) — (0.1 ) (0.1 ) — (2.8 ) (2.8 ) Interest rate swaps (see Note 18) — — — — 28.6 28.6 (1) Amounts at March 31, 2022 exclude $88.1 million of financing component of interest rate swaps presented in the table below (none at March 31, 2023). | ||
Summary Of Carrying Values And Fair Values Of The Company | The following table sets forth the carrying values and fair values of the Company’s outstanding debt and film related obligations at December 31, 2023 and March 31, 2023: December 31, 2023 March 31, 2023 (Amounts in millions) Carrying Value Fair Value (1) Carrying Fair Value (1) (Level 2) (Level 2) Term Loan A $ 404.1 $ 403.0 $ 424.2 $ 415.4 Term Loan B 819.5 814.1 827.2 817.1 Production Loans 1,275.4 1,279.2 1,346.1 1,349.9 Production Tax Credit Facility 248.4 250.0 229.4 231.8 Backlog Facility and Other 173.9 175.0 223.7 226.0 IP Credit Facility 114.9 117.3 140.8 143.8 (1) The Company measures the fair value of its outstanding debt and interest rate swaps using discounted cash flow techniques that use observable market inputs, such as SOFR-based yield curves, swap rates, and credit ratings (Level 2 measurements). The Company’s financial instruments also include cash and cash equivalents, accounts receivable, accounts payable, content related payables, other accrued liabilities, other liabilities, and borrowings under the Revolving Credit Facility, if any. The carrying values of these financial instruments approximated the fair values at December 31, 2023 and March 31, 2023. | The following table sets forth the carrying values and fair values of the Company’s outstanding debt, film related obligations, and interest rate swaps at March 31, 2023 and 2022: March 31, 2023 March 31, 2022 (Amounts in millions) Carrying Value Fair (1) Carrying Fair (1) (Level 2) (Level 2) Term Loan A $ 424.2 $ 415.4 $ 631.9 $ 625.7 Term Loan B 827.2 817.1 837.5 828.3 Production Loans 1,346.1 1,349.9 963.7 966.3 Production Tax Credit Facility 229.4 231.8 221.1 224.0 Backlog Facility and Other 223.7 226.0 — — IP Credit Facility 140.8 143.8 120.6 123.5 Financing component of interest rate swaps (2) — — 134.0 122.9 (1) The Company measures the fair value of its outstanding debt and interest rate swaps using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements). (2) Amounts at March 31, 2022 include $88.1 million recorded as a reduction of assets under master netting arrangements (none at March 31, 2023). |
Income Taxes (Table)
Income Taxes (Table) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 12 Months Ended |
Mar. 31, 2023 | |
Summary Of Components Of Pretax Income (Loss) | The components of pretax income (loss), net of intercompany eliminations, are as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) United States $ (33.5 ) $ 20.4 $ (26.4 ) International 38.9 (9.2 ) 8.5 $ 5.4 $ 11.2 $ (17.9 ) |
Summary Of Company's Current And Deferred Income Tax Provision | The Company’s current and deferred income tax provision are as follows: Year Ended March 31, 2023 2022 2021 Current provision: (Amounts in millions) Federal $ 3.1 $ 5.7 $ 3.8 States (0.5 ) 3.2 8.1 International 10.0 7.2 3.5 Total current provision 12.6 16.1 15.4 Deferred provision: Federal 0.5 0.9 1.0 States (0.1 ) 0.3 0.9 International 1.3 — — Total deferred provision 1.7 1.2 1.9 Total provision for income taxes $ 14.3 $ 17.3 $ 17.3 |
Summary Of Differences Between Income Tax Rates And The Income Tax Provision | The differences between income taxes expected at U.S. statutory income tax rates and the income tax provision are as set forth below: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Income taxes computed at Federal statutory rate $ 1.1 $ 2.4 $ (3.7 ) Foreign operations subject to different income tax rates 5.0 7.1 5.1 State income tax (0.6 ) 3.5 9.0 Remeasurements of originating deferred tax assets and liabilities (4.7 ) (9.2 ) 9.9 Permanent differences 2.1 — (1.1 ) Nondeductible share-based compensation 1.8 (2.7 ) 1.6 Nondeductible officers compensation 9.8 5.1 7.1 Non-controlling 1.8 3.7 3.3 Foreign derived intangible income (1.4 ) — (5.9 ) Other 1.7 1.5 0.5 Changes in valuation allowance (2.3 ) 5.9 (8.5 ) Total provision for income taxes $ 14.3 $ 17.3 $ 17.3 |
Restructuring and Other (Tables
Restructuring and Other (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Summary of Restructuring and Other and Other Unusual Charges or Benefits | The following table sets forth restructuring and other and these other unusual charges or benefits and the statement of operations line items they are included in for the nine months ended December 31, 2023 and 2022: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Restructuring and other: Other impairments (1) $ — $ 5.9 Severance (2) Cash 24.3 9.2 Accelerated vesting on equity awards (see Note 11) 7.3 2.1 Total severance costs 31.6 11.3 COVID-19 — 0.1 Transaction and other costs (3) 29.9 3.3 Total Restructuring and Other 61.5 20.6 Other unusual charges not included in restructuring and other or the Company’s operating segments: Content charges included in direct operating expense (4) 1.1 7.7 COVID-19 (5) (0.5 ) (6.2 ) Total restructuring and other and other unusual charges not included in restructuring and other $ 62.1 $ 22.1 (1) Amounts in the nine months ended December 31, 2022 include an impairment of an operating lease right-of-use (2) Severance costs were primarily related to restructuring activities and other cost-saving initiatives. In the nine months ended December 31, 2023, amounts were due to restructuring activities including integration of the acquisition of eOne, and our Motion Picture and Television Production segments. (3) Transaction and other costs in the nine months ended December 31, 2023 includes approximately $16.6 million of a loss associated with a theft at a production of a 51% owned consolidated entity. The Company expects to recover a portion of this amount under its insurance coverage and from the noncontrolling interest holders of this entity. In addition, amounts in the nine months ended December 31, 2023 and 2022 reflect transaction, integration and legal costs associated with certain strategic transactions, and restructuring activities and also include costs and benefits associated with certain legal matters. (4) In the nine months ended December 31, 2022, the amounts represent development costs written off as a result of changes in strategy across the Company’s theatrical slate in connection with certain management changes and changes in the theatrical marketplace in the Motion Picture segment. These charges are excluded from segment results and included in amortization of investment in film and television programs in direct operating expense on the combined statements of operations. (5) Amounts include incremental costs, if any, incurred due to circumstances associated with the COVID-19 | The following table sets forth restructuring and other and these other unusual charges or benefits and the statement of operations line items they are included in for the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Restructuring and other: Other impairments (1) $ 5.9 $ — $ — Severance (2) Cash 10.8 2.8 12.4 Accelerated vesting on equity awards (see Note 13) 4.2 — 3.5 Total severance costs 15.0 2.8 15.9 COVID-19 (3) 0.1 1.0 2.4 Transaction and other costs (4) 6.2 2.5 2.8 Total Restructuring and Other 27.2 6.3 21.1 Other unusual charges not included in restructuring and other: Content charges included in direct operating expense (5) 8.1 — — COVID-19 Direct operating expense (6) (8.9 ) (5.2 ) 34.2 Distribution and marketing expense (6) — — 16.7 Charges related to Russia’s invasion of Ukraine included in direct operating expense (7) — 5.9 — Total restructuring and other and other unusual charges not included in restructuring and other $ 26.4 $ 7.0 $ 72.0 (1) Amounts in the fiscal year ended March 31, 2023 include impairment of an operating lease right-of-use (2) Severance costs in the fiscal years ended March 31, 2023, 2022 and 2021 were primarily related to restructuring activities and other cost-saving initiatives. (3) Amounts represent certain incremental general and administrative costs associated with the COVID-19 return-to-office COVID-19 (4) Transaction and other costs in the fiscal years ended March 31, 2023, 2022 and 2021 reflect transaction, integration and legal costs associated with certain strategic transactions, and restructuring activities and also include costs and benefits associated with legal matters. (5) Amounts represent development costs of $7.2 million written off as a result of changes in strategy across the Company’s theatrical slate in connection with certain management changes and changes in the theatrical marketplace in the Motion Picture segment, with the remaining amount reflecting other corporate development costs written off. These charges are excluded from segment results and included in amortization of investment in film and television programs in direct operating expense on the combined statement of operations. (6) Amounts reflected in direct operating expense include incremental costs associated with the pausing and restarting of productions including paying/hiring certain cast and crew, maintaining idle facilities and equipment costs resulting from circumstances associated with the COVID-19 insurance recoveries of $8.4 million, $15.6 million and immaterial amounts in fiscal 2023, 2022 and 2021, respectively. In fiscal 2021, these charges also included film impairment due to changes in performance expectations resulting from circumstances associated with the COVID-19 (7) Amounts represent charges related to Russia’s invasion of Ukraine, primarily related to bad debt reserves for accounts receivable from customers in Russia, included in direct operating expense in the combined statements of operations. |
Summary of Changes in the Restructuring and Other Severance Liability | Changes in the restructuring and other severance liability were as follows for the nine months ended December 31, 2023 and 2022: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Severance liability Beginning balance $ 3.7 $ 0.8 Accruals 24.3 9.2 Severance payments (5.4 ) (3.7 ) Ending balance (1) $ 22.6 $ 6.3 (1) As of December 31, 2023, the remaining severance liability of approximately $22.6 million is expected to be paid in the next 12 months. | Changes in the restructuring and other severance liability were as follows for the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Severance liability Beginning balance $ 0.8 $ 3.9 $ 8.1 Accruals 10.8 2.8 12.4 Severance payments (7.9 ) (5.9 ) (16.6 ) Ending balance (1) $ 3.7 $ 0.8 $ 3.9 (1) As of March 31, 2023, the remaining severance liability of approximately $3.7 million is expected to be paid in the next 12 months. |
Segment Information (Tables)
Segment Information (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Summary Of Segment Reporting Information By Segment | Segment information is presented in the table below: Nine Months Ended 2023 2022 (Amounts in millions) Segment revenues Motion Picture $ 1,245.6 $ 791.6 Television Production 860.7 1,468.6 Total revenue $ 2,106.3 $ 2,260.2 Gross contribution Motion Picture $ 320.3 $ 248.9 Television Production 134.6 136.6 Total gross contribution 454.9 385.5 Segment general and administration Motion Picture 83.2 66.2 Television Production 40.5 32.0 Total segment general and administration 123.7 98.2 Segment profit Motion Picture 237.1 182.7 Television Production 94.1 104.6 Total segment profit $ 331.2 $ 287.3 | Segment information is presented in the table below: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Segment revenues Motion Picture $ 1,323.7 $ 1,185.3 $ 1,081.1 Television Production 1,760.1 1,531.0 831.8 Total revenue $ 3,083.8 $ 2,716.3 $ 1,912.9 Gross contribution Motion Picture $ 386.3 $ 356.0 $ 401.8 Television Production 185.3 124.1 126.3 Total gross contribution 571.6 480.1 528.1 Segment general and administration Motion Picture 109.8 93.1 106.2 Television Production 51.9 40.2 42.7 Total segment general and administration 161.7 133.3 148.9 Segment profit Motion Picture 276.5 262.9 295.6 Television Production 133.4 83.9 83.6 Total segment profit $ 409.9 $ 346.8 $ 379.2 |
Summary Of Reconciliation Of Total Segment Profit To The Company's Income (loss) | The reconciliation of total segment profit to the Company’s income (loss) before income taxes is as follows: Nine Months Ended 2023 2022 (Amounts in millions) Company’s total segment profit $ 331.2 $ 287.3 Corporate general and administrative expenses (1) (76.2 ) (57.7 ) Adjusted depreciation and amortization (2) (7.1 ) (8.9 ) Restructuring and other (3) (61.5 ) (20.6 ) COVID-19 (4) 0.5 6.2 Content charges (5) (1.1 ) (7.7 ) Adjusted share-based compensation expense 6) (46.3 ) (40.1 ) Purchase accounting and related adjustments (7) (19.4 ) (51.4 ) Operating income 120.1 107.1 Interest expense (157.1 ) (117.8 ) Interest and other income 6.9 4.9 Other expense (14.3 ) (17.2 ) Loss on extinguishment of debt — (1.3 ) Gain on investments, net 2.7 42.1 Equity interests income 5.7 0.8 Income (loss) before income taxes $ (36.0 ) $ 18.6 | The reconciliation of total segment profit to the Company’s income (loss) before income taxes is as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Company’s total segment profit $ 409.9 $ 346.8 $ 379.2 Corporate general and administrative expenses (1) (100.9 ) (80.0 ) (91.4 ) Adjusted depreciation and amortization (2) (12.2 ) (12.4 ) (13.4 ) Restructuring and other (3) (27.2 ) (6.3 ) (21.1 ) COVID-19 (4) 8.9 5.2 (50.9 ) Content charges (5) (8.1 ) — — Charges related to Russia’s invasion of Ukraine (6) — (5.9 ) — Adjusted share-based compensation expense (7) (69.2 ) (70.2 ) (54.5 ) Purchase accounting and related adjustments (8) (61.6 ) (65.3 ) (52.0 ) Operating income 139.6 111.9 95.9 Interest expense (162.6 ) (115.0 ) (109.7 ) Interest and other income 6.4 28.0 6.1 Other expense (21.2 ) (8.6 ) (4.7 ) Loss on extinguishment of debt (1.3 ) (3.4 ) — Gain on investments 44.0 1.3 0.6 Equity interests income (loss) 0.5 (3.0 ) (6.1 ) Income (loss) before income taxes $ 5.4 $ 11.2 $ (17.9 ) |
Summary Of Adjusted Depreciation And Amortization Reporting Segment | Nine Months Ended 2023 2022 (Amounts in millions) Depreciation and amortization $ 11.1 $ 13.2 Less: Amount included in purchase accounting and related adjustments (4.0 ) (4.3 ) Adjusted depreciation and amortization $ 7.1 $ 8.9 | Year Ended March 31, 2023 2022 2021 (Amounts in millions) Depreciation and amortization $ 17.9 $ 18.1 $ 17.2 Less: Amount included in purchase accounting and related adjustments (5.7 ) (5.7 ) (3.8 ) Adjusted depreciation and amortization $ 12.2 $ 12.4 $ 13.4 |
Summary Of Reconciles Total Share Based Compensation Expense | (6) The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Total share-based compensation expense (i) $ 53.6 $ 42.2 Less: Amount included in restructuring and other (ii) (7.3 ) (2.1 ) Adjusted share-based compensation $ 46.3 $ 40.1 (i) Total share-based compensation expense in the nine months ended December 31, 2023 and 2022 includes $12.1 million and $17.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense. (ii) Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of vesting schedules for equity awards pursuant to certain severance arrangements. | (7) The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Total share-based compensation expense (i) $ 73.4 $ 70.2 $ 58.0 Less: Amount included in restructuring and other (ii) (4.2 ) — (3.5 ) Adjusted share-based compensation $ 69.2 $ 70.2 $ 54.5 |
Summary Of Purchase Accounting And Related Adjustments | Nine Months Ended 2023 2022 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ — $ 0.7 General and administrative expense (i) 15.4 46.4 Depreciation and amortization 4.0 4.3 $ 19.4 $ 51.4 (i) These adjustments include the non-cash non-cash equity interest in the distributable earnings of 3 Arts Entertainment are reflected as an expense rather than noncontrolling interest in the combined statements of operations due to the relationship to continued employment. | Year Ended March 31, 2023 2022 2021 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 0.7 $ 0.4 $ 1.0 General and administrative expense (i) 55.2 59.2 47.2 Depreciation and amortization 5.7 5.7 3.8 $ 61.6 $ 65.3 $ 52.0 |
Summary Of Noncontrolling Equity Interest In The Distributable Earnings | Nine Months Ended 2023 2022 (Amounts in millions) Amortization of recoupable portion of the purchase price $ 1.3 $ 5.7 Noncontrolling interest discount amortization — 13.3 Noncontrolling equity interest in distributable earnings 14.1 27.4 $ 15.4 $ 46.4 | Year Ended March 31, 2023 2022 2021 (Amounts in millions) Amortization of recoupable portion of the purchase price $ 7.7 $ 7.7 $ 7.7 Noncontrolling interest discount amortization 13.2 22.7 22.7 Noncontrolling equity interest in distributable earnings 34.3 28.8 16.8 $ 55.2 $ 59.2 $ 47.2 |
Summary Of General And Administration Of The Company | The following table reconciles segment general and administration expense to the Company’s total combined general and administration expense: Nine Months Ended 2023 2022 (Amounts in millions) General and administration Segment general and administrative expenses $ 123.7 $ 98.2 Corporate general and administrative expenses 76.2 57.7 Share-based compensation expense included in general and administrative expense (1) 46.3 40.1 Purchase accounting and related adjustments 15.4 46.4 $ 261.6 $ 242.4 (1) Includes share-based compensation expense related to the allocation of Lionsgate corporate and shared employee share-based compensation expenses of $12.1 million in the nine months ended December 31, 2023 (2022—$17.0 million). | The following table reconciles segment general and administration to the Company’s total combined general and administration expense: Year Ended March 31, 2023 2022 2021 (Amounts in millions) General and administration Segment general and administrative expenses $ 161.7 $ 133.3 $ 148.9 Corporate general and administrative expenses 100.9 80.0 91.4 Share-based compensation expense included in general and administrative (1) 69.2 70.2 54.5 Purchase accounting and related adjustments 55.2 59.2 47.2 $ 387.0 $ 342.7 $ 342.0 (1) Includes share-based compensation expense related to the allocation of Lionsgate corporate and shared employee share-based compensation expenses of $26.7 million in fiscal year 2023 (2022- $19.6 million, 2021—$18.0 million). |
Summary Of Reconciliation Of Total Segments Assets To The Company | The reconciliation of total segment assets to the Company’s total combined assets is as follows: December 31, March 31, (Amounts in millions) Assets Motion Picture $ 1,744.2 $ 1,759.4 Television Production 2,393.6 1,949.1 Other unallocated assets (1) 981.3 704.2 $ 5,119.1 $ 4,412.7 (1) Other unallocated assets primarily consist of cash, other assets and investments. | The reconciliation of total segment assets to the Company’s total combined assets is as follows: March 31, March 31, (Amounts in millions) Assets Motion Picture $ 1,759.4 $ 1,622.6 Television Production 1,949.1 1,978.9 Other unallocated assets (1) 704.2 724.2 $ 4,412.7 $ 4,325.7 (1) Other unallocated assets primarily consist of cash, other assets and investments. |
Summary Of Acquisition Of Investment In Films And Television Programs | The following table sets forth acquisition of investment in films and television programs, as broken down by segment for the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Acquisition of investment in films and television programs Motion Picture $ 484.5 $ 463.1 $ 325.8 Television Production 1,083.9 1,287.0 856.1 $ 1,568.4 $ 1,750.1 $ 1,181.9 | |
Summary Of Capital Expenditures | The following table sets forth capital expenditures, as broken down by segment for the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Capital expenditures Motion Picture $ — $ — $ — Television Production 0.3 0.4 0.4 Corporate (1) 6.2 5.7 9.8 $ 6.5 $ 6.1 $ 10.2 (1) Represents unallocated capital expenditures primarily related to the Company’s corporate headquarters. | |
Summary Of Revenue From External Customers By Geographic Areas | Revenue by geographic location, based on the location of the customers, with no other foreign country individually comprising greater than 10% of total revenue, is as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Revenue Canada $ 64.0 $ 56.7 $ 41.0 United States 2,348.8 2,084.0 1,470.8 Other foreign 671.0 575.6 401.1 $ 3,083.8 $ 2,716.3 $ 1,912.9 | |
Summary Of Long-lived Assets By Geographic Areas | Long-lived assets by geographic location are as follows: March 31, March 31, (Amounts in millions) Long-lived assets (1) United States $ 1,736.5 $ 1,859.7 Other foreign 190.8 164.2 $ 1,927.3 $ 2,023.9 (1) Long-lived assets represents total assets less the following: current assets, investments, long-term receivables, intangible assets, goodwill and deferred tax assets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |
Contractual Obligation Fiscal Year Maturity Schedule [Line Items] | |
Schedule of annual repayment of contractual commitments | The following table sets forth the Company’s future annual repayment of contractual commitments as of March 31, 2023: Year Ending March 31, 2024 2025 2026 2027 2028 Thereafter Total (Amounts in millions) Contractual commitments by expected repayment date (off-balance Film related obligations commitments (1) $ 149.6 $ 141.0 $ 14.1 $ 6.5 $ — $ 4.1 $ 315.3 Interest payments (2) 139.9 81.3 36.6 10.1 3.2 — 271.1 Other contractual obligations 81.0 57.9 45.7 40.3 36.9 138.0 399.8 Total future commitments under contractual obligations (3) $ 370.5 $ 280.2 $ 96.4 $ 56.9 $ 40.1 $ 142.1 $ 986.2 (1) Film related obligations commitments are not reflected on the combined balance sheets as they did not then meet the criteria for recognition and include the following items: (i) Distribution and marketing commitments represent contractual commitments for future expenditures associated with distribution and marketing of films which the Company will distribute. The payment dates of these amounts are primarily based on the anticipated release date of the film. (ii) Minimum guarantee commitments represent contractual commitments related to the purchase of film rights for pictures to be delivered in the future. (iii) Production loan commitments represent amounts committed for future film production and development to be funded through production financing and recorded as a production loan liability when incurred. Future payments under these commitments are based on anticipated delivery or release dates of the related film or contractual due dates of the commitment. The amounts include estimated future interest payments associated with the commitment. (2) Includes cash interest payments on the Company’s Senior Credit Facilities and film related obligations, based on the applicable LIBOR and SOFR interest rates as of March 31, 2023, net of payments and receipts from the Company’s interest rate swaps, and excluding the interest payments on the revolving credit facility as future amounts are not fixed or determinable due to fluctuating balances and interest rates. (3) Not included in the amounts above are $343.6 million of redeemable noncontrolling interest, as future amounts and timing are subject to a number of uncertainties such that the Company is unable to make sufficiently reliable estimations of future payments |
Financial Instruments (Tables)
Financial Instruments (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Summary of Outstanding Forward Foreign Exchange Contracts | As of December 31, 2023, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 20 months from December 31, 2023): December 31, 2023 Foreign Currency Foreign Currency US Dollar Weighted Average (Amounts in (Amounts in British Pound Sterling 0.4 GBP in exchange for $ 0.4 0.82 GBP Czech Koruna 180.0 CZK in exchange for $ 8.1 22.13 CZK Euro 15.3 EUR in exchange for $ 15.4 1.10 EUR Canadian Dollar 29.5 CAD in exchange for $ 1.0 1.34 CAD Mexican Peso 35.9 MXN in exchange for $ 1.7 20.52 MXN South African Rand 53.2 ZAR in exchange for $ 2.9 18.95 ZAR | As of March 31, 2023, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 30 months from March 31, 2023): March 31, 2023 Foreign Currency Foreign Currency US Dollar Weighted Average (Amounts in (Amounts in British Pound Sterling 3.1 GBP in exchange for $ 2.3 1.33 GBP Czech Koruna 180.0 CZK in exchange for $ 8.6 20.88 CZK Euro 11.0 EUR in exchange for $ 10.0 1.10 EUR Canadian Dollar 5.1 CAD in exchange for $ 3.6 1.42 CAD Polish Zloty 8.0 PLN in exchange for $ 1.8 4.33 PLN Mexican Peso 237.8 MXN in exchange for $ 12.6 18.86 MXN |
Summary of Derivative Instruments Designated As Cash Flow Hedges | Designated Cash Flow Hedges. pay-fixed Effective Date Notional Amount Fixed Rate Paid Maturity Date (in millions) May 23, 2018 $ 300.0 2.915 % March 24, 2025 May 23, 2018 $ 700.0 2.915 % March 24, 2025 (1) June 25, 2018 $ 200.0 2.723 % March 23, 2025 (1) July 31, 2018 $ 300.0 2.885 % March 23, 2025 (1) December 24, 2018 $ 50.0 2.744 % March 23, 2025 (1) December 24, 2018 $ 100.0 2.808 % March 23, 2025 (1) December 24, 2018 $ 50.0 2.728 % March 23, 2025 (1) Total $ 1,700.0 (1) Represents the “Re-designated | Designated Cash Flow Hedges at March 31, 2022: Effective Date Notional Amount Fixed Rate Paid Maturity Date (1) (in millions) May 23, 2018 $ 300.0 2.915% March 24, 2025 May 19, 2020 $ 700.0 1.923% March 23, 2030 (2)(3) May 19, 2020 $ 350.0 2.531% March 23, 2027 (2)(3) June 15, 2020 $ 150.0 2.343% March 23, 2027 (2)(3) August 14, 2020 $ 200.0 1.840% March 23, 2030 (2)(3) Total $ 1,700.0 (1) Subject to a mandatory early termination date of March 23, 2025. (2) These pay-fixed at-market (3) Terminated in May 2022, see May 2022 Transactions |
Summary of Derivative Instruments Not Designated As Cash Flow Hedges | Not Designated Cash Flow Hedges at March 31, 2022: Pay-Fixed (1) Offsetting Pay-Variable (1) Effective Date Notional Fixed Effective Date Notional Fixed Rate Maturity Date (in millions) (in millions) May 23, 2018 $ 700.0 2.915% (3) May 19, 2020 $ 700.0 2.915% (2) March 24, 2025 June 25, 2018 $ 200.0 2.723% (3) August 14, 2020 $ 200.0 2.723% (2) March 23, 2025 July 31, 2018 $ 300.0 2.885% (3) May 19, 2020 $ 300.0 2.885% (2) March 23, 2025 December 24, 2018 $ 50.0 2.744% (3) May 19, 2020 $ 50.0 2.744% (2) March 23, 2025 December 24, 2018 $ 100.0 2.808% (3) June 15, 2020 $ 100.0 2.808% (2) March 23, 2025 December 24, 2018 $ 50.0 2.728% (3) June 15, 2020 $ 50.0 2.728% (2) March 23, 2025 Total $ 1,400.0 Total $ 1,400.0 (1) During the fiscal year ended March 31, 2021, the Company completed a series of transactions to amend and extend certain interest rate swap agreements, and as part of these transactions, the $1.4 billion pay-fixed de-designated, pay-variable pay-fixed de-designation pay-fixed de-designated pay-fixed de-designated pay-variable (2) Terminated in May 2022, see May 2022 Transactions (3) Re-designated May 2022 Transactions | |
Summary of Fixed Interest Rate Swaps Predesignated Cash Flow Hedges | Designated Cash Flow Hedges at March 31, 2023 Effective Date Notional Amount Fixed Rate Paid Maturity Date (in millions) May 23, 2018 $ 300.0 2.915% March 24, 2025 May 23, 2018 $ 700.0 2.915% March 24, 2025 (1) June 25, 2018 $ 200.0 2.723% March 23, 2025 (1) July 31, 2018 $ 300.0 2.885% March 23, 2025 (1) December 24, 2018 $ 50.0 2.744% March 23, 2025 (1) December 24, 2018 $ 100.0 2.808% March 23, 2025 (1) December 24, 2018 $ 50.0 2.728% March 23, 2025 (1) Total $ 1,700.0 (1) Represents the Re-designated May 2022 Transactions | |
Summary of Financial Statement Effect of Derivatives | The following table presents the pre-tax Nine Months Ended 2023 2022 (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in accumulated other comprehensive income (loss) $ (7.3 ) $ 7.4 Loss reclassified from accumulated other comprehensive income (loss) into direct operating expense (2.5 ) (0.7 ) Interest rate swaps Gain recognized in accumulated other comprehensive income (loss) $ 24.7 $ 87.8 Gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense 31.5 (5.7 ) Derivatives not designated as cash flow hedges: Interest rate swaps Loss reclassified from accumulated other comprehensive income (loss) into interest expense $ (5.5 ) $ (9.9 ) Total direct operating expense on combined statements of operations $ 1,306.0 $ 1,687.9 Total interest expense on combined statements of operations $ 157.1 $ 117.8 | The following table presents the pre-tax Year Ended March 31, 2023 2022 2021 (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in accumulated other comprehensive income (loss) $ 1.7 $ 1.7 $ (1.0 ) Gain (loss) reclassified from accumulated other comprehensive income (loss) into direct operating expense (0.3 ) (0.2 ) 0.2 Interest rate swaps Gain recognized in accumulated other comprehensive income (loss) $ 81.1 $ 66.5 $ 72.0 Gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense 1.4 (15.0 ) (20.0 ) Derivatives not designated as cash flow hedges: Forward exchange contracts Gain recognized in direct operating expense $ — $ — $ 0.3 Interest rate swaps Loss reclassified from accumulated other comprehensive income (loss) into interest expense $ (11.8 ) $ (33.8 ) $ (28.3 ) Total direct operating expense on combined statements of operations $ 2,207.9 $ 1,922.1 $ 1,220.0 Total interest expense on combined statements of operations $ 162.6 $ 115.0 $ 109.7 |
Summary of Balance Sheets Related to the Company's Use of Derivatives | As of December 31, 2023 and March 31, 2023, the Company had the following amounts recorded in the accompanying unaudited condensed combined balance sheets related to the Company’s use of derivatives: December 31, 2023 Other Current Other Non- Current Assets Other Accrued Other Non- Current (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ — $ — $ 2.1 $ — Interest rate swaps — 34.2 — — Fair value of derivatives $ — $ 34.2 $ 2.1 $ — March 31, 2023 Other Current Other Non- Current Assets Other Accrued Other Non- Current (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 2.9 $ — $ 0.1 $ — Interest rate swaps — 41.1 — — Fair value of derivatives $ 2.9 $ 41.1 $ 0.1 $ — | As of March 31, 2023 and 2022, the Company had the following amounts recorded in the accompanying combined balance sheets related to the Company’s use of derivatives: March 31, 2023 Other Other Non-Current Other Other Non-Current (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 2.9 $ — $ 0.1 $ — Interest rate swaps — 41.1 — — Fair value of derivatives $ 2.9 $ 41.1 $ 0.1 $ — March 31, 2022 Other Other Non-Current Other Other Non-Current (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 3.5 $ — $ 2.8 $ — Interest rate swaps — 109.1 — (39.4 ) Derivatives not designated as cash flow hedges: Interest rate swaps (1) — (77.1 ) — 56.8 Fair value of derivatives $ 3.5 $ 32.0 $ 2.8 $ 17.4 (1) Includes $88.1 million and $46.0 million included in other non-current non-current pay-variable |
Additional Financial Informat_2
Additional Financial Information (Tables) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | |
Additional Financial Information [Line Items] | |||
Summary of the Receivables Transferred Under the Pooled Monetization Agreement | The following table sets forth a summary of the receivables transferred under the pooled monetization agreement during the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Gross cash proceeds received for receivables transferred and derecognized $ 167.0 $ 155.5 $ 173.1 Less amounts from collections reinvested under revolving agreement (94.3 ) (102.7 ) (138.7 ) Proceeds from new transfers 72.7 52.8 34.4 Collections not reinvested and remitted or to be remitted (66.6 ) (46.8 ) (27.9 ) Net cash proceeds received (paid or to be paid) (1) $ 6.1 $ 6.0 $ 6.5 Carrying value of receivables transferred and derecognized (2) $ 164.8 $ 154.5 $ 172.0 Obligations recorded $ 5.9 $ 2.9 $ 1.9 Loss recorded related to transfers of receivables $ 3.7 $ 1.9 $ 0.8 (1) In addition, during the years ended March 31, 2023 and 2022, the Company repurchased $27.4 million and $25.5 million, respectively, of receivables previously transferred, as separately agreed upon with the third-party purchasers, in order to monetize such receivables under the individual monetization program discussed above without being subject to the collateral requirements under the pooled monetization program. (2) Receivables net of unamortized discounts on long-term, non-interest | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||
Additional Financial Information [Line Items] | |||
Summary of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the unaudited condensed combined balance sheets to the total amounts reported in the unaudited condensed combined statements of cash flows at December 31, 2023 and March 31, 2023. At December 31, 2023 and March 31, 2023, restricted cash represents primarily amounts related to required cash reserves for interest payments associated with the Production Tax Credit Facility, IP Credit Facility, and Backlog Facility. December 31, March 31, (Amounts in millions) Cash and cash equivalents $ 247.1 $ 210.9 Restricted cash included in other current assets 36.4 27.5 Restricted cash included in other non-current 13.9 13.0 Total cash, cash equivalents and restricted cash $ 297.4 $ 251.4 | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the combined balance sheets to the total amounts reported in the combined statements of cash flows at March 31, 2023 and 2022. At March 31, 2023 and 2022, restricted cash included in other current assets represents primarily amounts related to required cash reserves for interest payments associated with the Production Tax Credit Facility, IP Credit Facility and Backlog Facility. March 31, March 31, (Amounts in millions) Cash and cash equivalents $ 210.9 $ 256.9 Restricted cash included in other current assets 27.5 13.4 Restricted cash included in other non-current 13.0 — Total cash, cash equivalents and restricted cash $ 251.4 $ 270.3 | |
Summary of the Receivables Transferred Under Individual Agreements or Purchases | The following table sets forth a summary of the receivables transferred under individual agreements or purchases during the nine months ended December 31, 2023 and 2022: Nine Months Ended 2023 2022 (Amounts in millions) Carrying value of receivables transferred and derecognized $ 385.8 $ 314.9 Net cash proceeds received 370.7 300.0 Loss recorded related to transfers of receivables 15.1 14.9 | The following table sets forth a summary of the receivables transferred under individual agreements or purchases during the years ended March 31, 2023, 2022 and 2021: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Carrying value of receivables transferred and derecognized $ 400.5 $ 285.0 $ 251.8 Net cash proceeds received 383.0 278.3 247.9 Loss recorded related to transfers of receivables 17.5 6.7 3.9 | |
Summary of the Receivables Transferred Under the Pooled Monetization Agreement | The following table sets forth a summary of the receivables transferred under the pooled monetization agreement during the nine months ended December 31, 2023 and 2022: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Gross cash proceeds received for receivables transferred and derecognized $ 22.2 $ 156.0 Less amounts from collections reinvested under revolving agreement (9.1 ) (83.3 ) Proceeds from new transfers 13.1 72.7 Collections not reinvested and remitted or to be remitted (13.4 ) (48.0 ) Net cash proceeds received (paid or to be paid) (1) $ (0.3 ) $ 24.7 Carrying value of receivables transferred and derecognized (2) $ 22.1 $ 154.2 Obligations recorded $ 2.1 $ 4.4 Loss recorded related to transfers of receivables $ 2.0 $ 2.6 (1) During the nine months ended December 31, 2023, the Company voluntarily repurchased $46.0 million of receivables previously transferred. In addition, during the nine months ended December 31, 2022, the Company repurchased $27.4 million of receivables previously transferred, as separately agreed upon with the third-party purchasers, in order to monetize such receivables under the individual monetization program discussed above without being subject to the collateral requirements under the pooled monetization program. (2) Receivables net of unamortized discounts on long-term, non-interest | ||
Summary of Composition of the Company's Other Assets | The composition of the Company’s other assets is as follows as of December 31, 2023 and March 31, 2023: December 31, March 31, (Amounts in millions) Other current assets Prepaid expenses and other $ 50.1 $ 36.0 Restricted cash 36.4 27.5 Contract assets 56.8 63.5 Tax credits receivable 273.8 129.5 $ 417.1 $ 256.5 Other non-current Prepaid expenses and other $ 21.5 $ 7.4 Restricted cash 13.9 13.0 Accounts receivable 105.9 37.8 Contract assets 3.3 5.1 Tax credits receivable 312.8 341.8 Operating lease right-of-use (1) 318.8 116.8 Interest rate swap assets 34.2 41.1 $ 810.4 $ 563.0 (1) During the nine months ended December 31, 2023, the Company extended certain of its operating leases and entered into new operating leases. The Company recorded an increase to operating lease right-of-use non-current liabilities—non-current”, right-of-use non-current liabilities—non-current”, | The composition of the Company’s other assets is as follows as of March 31, 2023 and 2022: March 31, March 31, (Amounts in millions) Other current assets Prepaid expenses and other (1) $ 36.0 $ 47.5 Restricted cash 27.5 13.4 Contract assets 63.5 40.5 Tax credits receivable 129.5 128.3 $ 256.5 $ 229.7 Other non-current Prepaid expenses and other $ 7.4 $ 9.9 Restricted cash 13.0 — Accounts receivable (2) 37.8 38.3 Contract assets (2) 5.1 9.3 Tax credits receivable 341.8 316.1 Operating lease right-of-use 116.8 126.0 Interest rate swap assets 41.1 32.0 $ 563.0 $ 531.6 (1) Includes home entertainment product inventory which consists of Packaged Media and is stated at the lower of cost or market value (first-in, first-out (2) Unamortized discounts on long-term, non-interest | |
Summary of Changes in the Components of Accumulated Other Comprehensive Income Loss | The following table summarizes the changes in the components of accumulated other comprehensive income (loss), net of tax. During the nine months ended December 31, 2023 and 2022, there was no income tax expense or benefit reflected in other comprehensive income (loss) due to the income tax impact being offset by changes in the Company’s deferred tax valuation allowance. Foreign currency Net unrealized gain Total (Amounts in millions) March 31, 2023 $ (41.1 ) $ 142.6 $ 101.5 Other comprehensive income (loss) 1.8 17.4 19.2 Reclassifications to net loss (1) — (23.5 ) (23.5 ) December 31, 2023 $ (39.3 ) $ 136.5 $ 97.2 March 31, 2022 $ (38.9 ) $ 49.1 $ 10.2 Other comprehensive income (loss) (3.7 ) 95.2 91.5 Reclassifications to net loss (1) — 16.3 16.3 December 31, 2022 $ (42.6 ) $ 160.6 $ 118.0 (1) Represents a loss of $2.5 million included in direct operating expense and a gain of $26.0 million included in interest expense on the unaudited condensed combined statement of operations in the nine months ended December 31, 2023 (nine months ended December 31, 2022—loss of $0.7 million included in direct operating expense and a loss of $15.6 million included in interest expense) (see Note 16). | The following table summarizes the changes in the components of accumulated other comprehensive income (loss), net of tax. During the years ended March 31, 2023, 2022 and 2021, there was no income tax expense or benefit reflected in other comprehensive income (loss) due to the income tax impact being offset by changes in the Company’s deferred tax valuation allowance. Foreign currency Net unrealized gain Total (Amounts in millions) March 31, 2020 $ (38.8 ) $ (187.1 ) $ (225.9 ) Other comprehensive loss 4.5 70.9 75.4 Reclassifications to net loss (1) — 48.1 48.1 March 31, 2021 (34.3 ) (68.1 ) (102.4 ) Other comprehensive income (4.6 ) 68.2 63.6 Reclassifications to net loss (1) — 49.0 49.0 March 31, 2022 (38.9 ) 49.1 10.2 Other comprehensive income (loss) (2.2 ) 82.8 80.6 Reclassifications to net loss (1) — 10.7 10.7 March 31, 2023 $ (41.1 ) $ 142.6 $ 101.5 (1) Represents a loss of $0.3 million included in direct operating expense and a loss of $10.4 million included in interest expense on the combined statement of operations in the year ended March 31, 2023 (2022- loss of $0.2 million included in direct operating expense and a loss of $48.8 million included in interest expense; 2021—gain of $0.2 million included in direct operating expense and loss of $48.3 million included in interest expense). See Note 18 for further information. | |
Summary of Non Cash Investing Activities | There were no significant non-cash non-cash Year Ended March 31, 2023 2022 2021 (Amounts in millions) Non-cash Accrued equity method investment $ — $ 19.0 $ — | ||
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 40.3 $ 44.9 $ 38.3 Right-of-use Operating leases $ 11.3 $ 51.1 $ 20.3 Increase in right-of-use Operating leases—increase in right-of-use $ 17.4 $ 30.9 $ — Operating leases—increase in lease liability $ 17.4 $ 30.9 $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Summary of Net Transfers to and from Lionsgate | The net transfers to and from Lionsgate discussed above were as follows: Nine Months Ended December 31, 2023 2022 (Amounts in millions) Cash pooling and general financing activities $ (241.7 ) $ 111.5 Licensing of content (1) 428.8 623.7 Corporate reimbursements 5.9 8.0 Corporate expense allocations (excluding allocation of share-based compensation) 20.2 12.3 Funding of purchases of accounts receivables held for collateral (85.6 ) (135.4 ) Net transfers to Parent per combined statements of cash flows $ 127.6 $ 620.1 Share based compensation (including allocation of share-based compensation) (53.6 ) (42.2 ) Other non-cash 16.6 — Net transfers to Parent per combined statements of equity (deficit) $ 90.6 $ 577.9 (1) Reflects the settlement of amounts due from the Starz Business related to the Company’s licensing arrangements with the Starz Business. | The net transfers to and from Lionsgate discussed above were as follows: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Cash pooling and general financing activities $ 36.1 $ (305.2 ) $ (143.5 ) Licensing of content (1) 733.3 567.7 209.4 Corporate reimbursements 13.3 10.8 8.0 Corporate expense allocations (excluding allocation of share-based compensation) 22.3 19.3 22.4 Funding of purchases of accounts receivables held for collateral (183.7 ) (172.9 ) (212.5 ) Net transfers to (from) Parent per combined statements of cash flows $ 621.3 $ 119.7 $ (116.2 ) Share-based compensation (including allocation of share-based compensation) (73.4 ) (70.2 ) (58.0 ) Other non-cash 2.5 — — Net transfers to (from) Parent per combined statements of equity (deficit) $ 550.4 $ 49.5 $ (174.2 ) (1) Reflects the settlement of amounts due from the Starz Business related to the Company’s licensing arrangements with the Starz Business. |
Summary of Company's Combined Balance Sheets and Statements of Operations | March 31, 2023 2022 (Amounts in Combined Balance Sheets Accounts receivable $ 10.8 $ 10.5 Investment in films and television programs (1) 7.9 1.6 Other assets, noncurrent (1)(2) 45.8 43.5 Total due from related parties $ 64.5 $ 55.6 Accounts payable (3) $ 16.8 $ 17.0 Other accrued liabilities (1) 6.7 5.2 Participations and residuals, current 7.5 5.9 Participations and residuals, noncurrent 2.0 1.1 Other liabilities (1) 41.4 38.3 Total due to related parties $ 74.4 $ 67.5 Year Ended March 31, 2023 2022 2021 (Amounts in millions) Combined Statements of Operations Revenues $ 4.8 $ 3.0 $ 6.3 Direct operating expense $ 8.3 $ 6.5 $ 10.8 Distribution and marketing expense $ 0.4 $ 0.2 $ 0.2 Interest and other income $ — $ 3.0 $ 2.9 (1) During the year ended March 31, 2022, the Company entered into certain operating leases related to a studio facility owned by an equity-method investee. Amounts related to these leases are included in investment in films and television programs, other assets—noncurrent, other accrued liabilities and other liabilities in the combined balance sheets at March 31, 2023 and 2022. (2) During the years ended March 31, 2022 and 2021, the Company made loans (including accrued interest) of $3.0 million and $2.9 million, respectively, to certain of its equity method investees (2023—none). As of March 31, 2023 and 2022, no amounts are included in other assets, noncurrent in the Company’s combined balance sheets related to these loans (net of equity interests losses applied against such loans). (3) Amounts primarily represent production related advances due to certain of its equity method investees. |
Organization Consolidation And
Organization Consolidation And Presentation Of Financial Statements (Detail) - USD ($) | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jan. 11, 2022 | Jan. 10, 2022 | Dec. 31, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 09, 2024 | ||
Organization And Plan Of Operation [Line Items] | ||||||||
Proceeds from initial public offer | $ 0 | $ 0 | $ 750,000,000 | |||||
Proceeds from the issuance of warrants | 0 | 0 | 17,600,000 | |||||
Deferred underwriting commission non current. | $ 26,250,000 | 26,250,000 | ||||||
Payments to Acquire Restricted Investments | $ 750,000,000 | $ 0 | $ 0 | $ 750,000,000 | ||||
Per share value of restricted investments | $ 10 | |||||||
Term of restricted investments | 185 days | 185 days | ||||||
Minimum percentage of net assets of the acquire | 80% | 80% | ||||||
Temporary equity, redemption price per share | $ 10.72 | $ 10.6 | $ 10.09 | $ 10.74 | ||||
Minimum networth needed to consummate business combination | $ 5,000,001 | |||||||
Minimum percentage of public shares that can be transferred without restriction | 20% | 20% | ||||||
Percentage of public shares to be redeemed in case business combination is not consummated | 100% | 100% | ||||||
Time limit for the consummation of business combination two. | 27 months | |||||||
Date before which business combination shall be consummated two. | Jun. 15, 2024 | Apr. 10, 2024 | ||||||
Number of days after the the cut off date within which public shareholders shall be redeemed in case business combination is not consummated | 10 days | 10 days | ||||||
Liquidation basis of accounting, accrued costs to dispose of assets and liabilities | $ 100,000 | $ 100,000 | ||||||
Cash | 437,163 | 999,152 | $ 117,696 | |||||
Assets held-in-trust, noncurrent | 804,228,813 | 794,750,266 | 759,712,942 | $ 184,400,000 | ||||
Working capital loans convertible into equity warrants | 1,500,000 | |||||||
Maximum release permitted to be withdrawn | 3,000,000 | 3,000,000 | ||||||
Working capital deficiency | 25,420,259 | 20,949,357 | ||||||
Accrued legal expenses | 5,983,947 | 3,576,713 | ||||||
Accounts payable accrued expenses current | 6,458,295 | 3,695,499 | 338,004 | |||||
Derivative liabilites current | [1] | 19,399,127 | 18,253,010 | $ 0 | ||||
Temporary Equity, Aggregate Amount of Redemption Requirement | $ 620,800,000 | |||||||
Temporary Equity, Shares Authorized | 57,824,777 | |||||||
Will not impact current assets [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Accounts payable accrued expenses current | 6,458,295 | 3,695,499 | ||||||
PIPE with reduction right liability [Member] | Non cash item [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Derivative liabilites current | 19,399,127 | $ 18,253,010 | ||||||
Sponsor [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
loan from Sponsor | $ 300,000 | |||||||
Working Capital Loans [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Debt instrument, convertible, conversion price | $ 1.5 | |||||||
Working capital deficiency | 25,342,177 | |||||||
Working Capital Loans [Member] | Sponsor [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Working capital loans convertible into equity warrants | $ 1,500,000 | $ 1,500,000 | ||||||
Debt instrument, convertible, conversion price | $ 1.5 | $ 1.5 | ||||||
Maximum [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Per share to be maintained in the trust account | 10 | 10 | ||||||
Minimum [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Per share to be maintained in the trust account | $ 10 | $ 10 | ||||||
Private Placement Warrants [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Proceeds from the issuance of warrants | $ 17,600,000 | $ 17,600,000 | ||||||
Common Class A [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Temporary equity, redemption price per share | $ 10.72 | $ 10.6 | ||||||
Founder Shares [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Stock Issued During Period, Value, Issued for Services | $ 25,000 | |||||||
IPO [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Proceeds from initial public offer | $ 750,000,000 | $ 735,000,000 | $ 735,000,000 | |||||
IPO [Member] | Common Class A [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Stock issued during the period shares new issues | 75,000,000 | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | |||||||
Class of warrants or rights exercise price per warrant | 11.5 | |||||||
Sale of stock issue price per share | $ 10 | |||||||
Transaction costs share issue | 42,130,216 | 42,130,216 | ||||||
Underwriting fees | 15,000,000 | 15,000,000 | ||||||
Other offering costs | 880,216 | 880,216 | ||||||
Private Placement [Member] | Private Placement Warrants [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Class of warrants or rights issued during the period units | 11,733,333 | |||||||
Class of warrants or rights issue price per unit | $ 1.5 | |||||||
Private Placement [Member] | Common Class A [Member] | Private Placement Warrants [Member] | ||||||||
Organization And Plan Of Operation [Line Items] | ||||||||
Class of warrants or rights exercise price per warrant | $ 11.5 | |||||||
Class of warrants or rights issued during the period units | 11,733,333 | |||||||
Class of warrants or rights issue price per unit | $ 1.5 | |||||||
Proceeds from the issuance of warrants | $ 17,600,000 | $ 17,600,000 | ||||||
[1]Equity linked contract that is classified as a liability given potential for variable share settlement at close of the Business Combination. PIPE reflects common equity in the pro forma, combined company post-close of the Business Combination with StudioCo (Note 10). |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Line Items] | |||||||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Accrued interest and penalties on unrecognized tax benefits | 0 | 0 | 0 | $ 0 | $ 0 | ||||
Cash insured with federal insurance corporation | $ 250,000 | $ 250,000 | $ 250,000 | ||||||
Common Class A [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Class of warrants or rights number of securities covered by the warrants or rights | 36,733,333 | 36,733,333 | 36,733,333 | ||||||
IPO [Member] | Common Class A [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Transaction costs share issue | $ 42,130,216 | $ 42,130,216 | |||||||
Offering costs charged to temporary equity | 42,110,034 | 42,110,034 | |||||||
Offering costs expensed | $ 20,182 | $ 20,182 | |||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Debt instrument, maturity date | Apr. 15, 2029 | Apr. 15, 2029 | |||||||
Restricted cash | $ 40,500,000 | $ 13,400,000 | |||||||
Interest costs capitalized | $ 28,100,000 | 12,800,000 | $ 2,800,000 | ||||||
Lessor, operating lease, term of contract | 12 months | ||||||||
Finite-lived intangible asset, useful life | 5 years | ||||||||
Advertising Expense | $ 203,400,000 | 201,600,000 | 119,200,000 | ||||||
Unrecognized tax benefits | $ 300,000 | $ 1,000,000 | $ 600,000 | $ 600,000 | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Equity Method Investments Investee [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Equity method investment, ownership percentage | 20% | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Minimum [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Variable interest entity, qualitative or quantitative information, ownership percentage | 20% | ||||||||
Finite-lived intangible asset, useful life | 5 years | ||||||||
Weighted average perpetual nominal growth rates | 1.50% | ||||||||
Weighted average cost of capital discount rate | 11% | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Minimum [Member] | Equity Method Investments Investee [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Equity method investment, ownership percentage | 20% | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Maximum [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Finite-lived intangible asset, useful life | 15 years | ||||||||
Weighted average perpetual nominal growth rates | 3.50% | ||||||||
Weighted average cost of capital discount rate | 13% | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Maximum [Member] | Equity Method Investments Investee [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Equity method investment, ownership percentage | 50% | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Lionsgate [Member] | |||||||||
Accounting Policies [Line Items] | |||||||||
Debt instrument, interest rate, stated percentage | 5.50% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Reconciliation of Proceeds from Temporary Equity to Outstanding Value (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Proceeds from Temporary Equity to Outstanding Value [Line Items] | |||
Gross proceeds | $ 750,000,000 | ||
Fair value of Public Warrants at issuance | (36,750,000) | ||
Class A Ordinary Share issuance costs | (42,110,034) | ||
Accretion of carrying value to redemption value | $ (7,846,453) | 123,510,300 | |
Class A Ordinary Shares subject to possible redemption | 804,128,813 | 794,650,266 | $ 756,862,942 |
Waiver of offering costs allocated to Class A Ordinary Share subject to possible redemption | $ 17,325,000 | ||
Previously Reported [Member] | |||
Reconciliation of Proceeds from Temporary Equity to Outstanding Value [Line Items] | |||
Gross proceeds | 750,000,000 | ||
Fair value of Public Warrants at issuance | (36,750,000) | ||
Class A Ordinary Share issuance costs | (42,110,034) | ||
Accretion of carrying value to redemption value | 37,787,324 | 85,722,976 | |
Class A Ordinary Shares subject to possible redemption | $ 794,650,266 | $ 756,862,942 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Detail) - USD ($) | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Numerator: | |||||
Allocation of net income | $ (5,000) | $ 5,162,251 | $ 8,008,646 | $ 16,700,633 | $ 22,511,785 |
Common Class A [Member] | |||||
Numerator: | |||||
Allocation of net income | $ 4,129,801 | $ 6,406,917 | $ 13,360,506 | $ 17,918,827 | |
Denominator: | |||||
Basic weighted average shares outstanding | 75,000,000 | 75,000,000 | 75,000,000 | 73,150,685 | |
Diluted weighted average shares outstanding | 75,000,000 | 75,000,000 | 75,000,000 | 73,150,685 | |
Basic net income per ordinary shares | $ 0 | $ 0.06 | $ 0.09 | $ 0.18 | $ 0.24 |
Diluted net income per ordinary shares | $ 0 | $ 0.06 | $ 0.09 | $ 0.18 | $ 0.24 |
Common Class B [Member] | |||||
Numerator: | |||||
Allocation of net income | $ (5,000) | $ 1,032,450 | $ 1,601,729 | $ 3,340,127 | $ 4,592,958 |
Denominator: | |||||
Basic weighted average shares outstanding | 18,750,000 | 18,750,000 | 18,750,000 | 18,750,000 | 18,750,000 |
Diluted weighted average shares outstanding | 18,750,000 | 18,750,000 | 18,750,000 | 18,750,000 | 18,750,000 |
Basic net income per ordinary shares | $ 0 | $ 0.06 | $ 0.09 | $ 0.18 | $ 0.24 |
Diluted net income per ordinary shares | $ 0 | $ 0.06 | $ 0.09 | $ 0.18 | $ 0.24 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property and Equipment is Carried at Cost Less Accumulated Depreciation (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 12 Months Ended |
Mar. 31, 2023 | |
Computer Equipment [Member] | Maximum [Member] | |
Schedule Of Depreciation On A Straight Line Basis Over The Following Useful Lives [Line Items] | |
Depreciation term | 5 |
Computer Equipment [Member] | Minimum [Member] | |
Schedule Of Depreciation On A Straight Line Basis Over The Following Useful Lives [Line Items] | |
Depreciation term | 3 |
Furniture and Fixtures [Member] | Maximum [Member] | |
Schedule Of Depreciation On A Straight Line Basis Over The Following Useful Lives [Line Items] | |
Depreciation term | 5 |
Furniture and Fixtures [Member] | Minimum [Member] | |
Schedule Of Depreciation On A Straight Line Basis Over The Following Useful Lives [Line Items] | |
Depreciation term | 3 |
Acquisition - Addtional Informa
Acquisition - Addtional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Dec. 27, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Asset Acquisition [Line Items] | ||||||
Purchase of feature film titles | 200 | |||||
Film cost | $ 191.4 | |||||
Film, monetized in film group, amortization expense | 10 | $ 10 | $ 171.4 | |||
Aggregate cash price | $ 375 | |||||
Payment made by company | 331 | |||||
Net of cash acquired | $ 54.1 | |||||
Acquisition related costs | $ 8.8 | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||
Asset Acquisition [Line Items] | ||||||
Film, monetized in film group, amortization expense | $ 948.1 | $ 1,295.6 | $ 1,649.3 | $ 1,497.5 | $ 746 | |
Finite-lived intangible asset, useful life | 5 years | |||||
Impairment of goodwill | $ 296.2 | |||||
Gross proceeds | 350 | |||||
Private investments in public equities financing amount | $ 175 | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Lionsgate [Member] | ||||||
Asset Acquisition [Line Items] | ||||||
Equity method investment, ownership percentage | 87.30% | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Screaming Eagle [Member] | ||||||
Asset Acquisition [Line Items] | ||||||
Equity method investment, ownership percentage | 12.70% | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Minimum [Member] | ||||||
Asset Acquisition [Line Items] | ||||||
Estimated useful life | 10 years | |||||
Finite-lived intangible asset, useful life | 5 years | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Maximum [Member] | ||||||
Asset Acquisition [Line Items] | ||||||
Estimated useful life | 5 years | |||||
Finite-lived intangible asset, useful life | 15 years |
Acquisition - Schedule of Busin
Acquisition - Schedule of Business Acquisitions (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 801.4 | $ 795.6 | $ 795.6 |
eOne Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 54.1 | ||
Accounts receivable | 287.6 | ||
Investment in films and television programs | 367.9 | ||
Property and equipment | 14 | ||
Intangible assets | 4 | ||
Other assets | 205 | ||
Accounts payable and accrued liabilities | (72) | ||
Content related payable | (37.3) | ||
Participations and residuals | (203.7) | ||
Film related obligations | (105.8) | ||
Other liabilities and deferred revenue | (134.5) | ||
Preliminary fair value of net assets acquired | 379.3 | ||
Goodwill | 5.8 | ||
Preliminary purchase price consideration | $ 385.1 |
Acquisition - Schedule of Bus_2
Acquisition - Schedule of Business Acquisition Pro Forma Information (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Revenues | $ 2,525.6 | $ 2,778.4 |
Net income (loss) attributable Parent | $ (323.7) | $ 60.4 |
Investment in Films and Telev_3
Investment in Films and Television Programs - Summary of Company's Investments in Films and Television Programs (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Investments [Line Items] | |||
Investment in films and television programs, net | $ 1,908.2 | $ 1,786.7 | $ 1,867.9 |
Released, net of accumulated amortization [Member] | |||
Schedule of Investments [Line Items] | |||
Investment in films and television programs, net | 987.8 | 779.9 | 663.2 |
Completed and not released [Member] | |||
Schedule of Investments [Line Items] | |||
Investment in films and television programs, net | 296.1 | 289.8 | 121.4 |
In progress [Member] | |||
Schedule of Investments [Line Items] | |||
Investment in films and television programs, net | 561.4 | 649.1 | 980.1 |
In development [Member] | |||
Schedule of Investments [Line Items] | |||
Investment in films and television programs, net | $ 62.9 | $ 67.9 | $ 103.2 |
Investment in Films and Telev_4
Investment in Films and Television Programs - Summary of Company's Investments in Films and Television Programs (Parenthetical) (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Investments [Line Items] | |||
Unamortized Film Cost | $ 561.5 | ||
Production Tax Credits Reduced Total Investment In Films And Television Programs | 181.2 | ||
Film, Monetized on Its Own, Amortization Expense | 84.3 | ||
Impairments Not Included In Segment Operating Results | $ 0 | $ 0 | $ 15.4 |
Investment in Films and Telev_5
Investment in Films and Television Programs - Summary of direct operating expense on the combined statements of operations (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Impairment In Investment In Films And Television Programs [Line Items] | |||||
Motion Picture | $ 27.5 | $ 1.1 | $ 6.2 | $ 1.2 | $ 19.4 |
Television Production | 6.6 | 4.7 | 4.6 | 34.9 | 10.3 |
Impairments Not Included In Segment Operating Results | 0 | 0 | 15.4 | ||
Impairment Cost | $ 34.1 | $ 5.8 | $ 10.8 | $ 36.1 | $ 45.1 |
Investment in Films and Telev_6
Investment in Films and Television Programs - Summary of Company's investment in film and television programs (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2026 | Mar. 31, 2025 | Mar. 31, 2024 | |
Released [Member] | |||
Schedule Of Estimated Future Amortization Expense Of The Company In Film And Television Programs [Line Items] | |||
Estimated future amortization expense | $ 82.7 | $ 108.1 | $ 369.3 |
Completed And Not Released [Member] | |||
Schedule Of Estimated Future Amortization Expense Of The Company In Film And Television Programs [Line Items] | |||
Estimated future amortization expense | $ 170.4 |
Initial Public Offering - Addit
Initial Public Offering - Additional Information (Detail) - IPO [Member] - Common Class A [Member] | Jan. 10, 2022 $ / shares shares |
Initial Public Offer [Line Items] | |
Stock issued during the period shares new issues | shares | 75,000,000 |
Sale of stock issue price per share | $ 10 |
Class of warrants or rights exercise price per warrant | 11.5 |
Public Warrants [Member] | |
Initial Public Offer [Line Items] | |
Class of warrants or rights exercise price per warrant | $ 11.5 |
Private Placement - Additional
Private Placement - Additional Information (Detail) - USD ($) | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 10, 2022 | Dec. 31, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Private Placement [Line Items] | |||||
Proceeds from the issuance of warrants | $ 0 | $ 0 | $ 17,600,000 | ||
Private Placement Warrants [Member] | |||||
Private Placement [Line Items] | |||||
Proceeds from the issuance of warrants | $ 17,600,000 | 17,600,000 | |||
Private Placement [Member] | Private Placement Warrants [Member] | |||||
Private Placement [Line Items] | |||||
Class of warrants or rights issued during the period units | 11,733,333 | ||||
Class of warrants or rights issue price per unit | $ 1.5 | ||||
Private Placement [Member] | Private Placement Warrants [Member] | Common Class A [Member] | |||||
Private Placement [Line Items] | |||||
Class of warrants or rights issued during the period units | 11,733,333 | ||||
Class of warrants or rights issue price per unit | $ 1.5 | ||||
Class of warrants or rights exercise price per share | $ 11.5 | ||||
Proceeds from the issuance of warrants | $ 17,600,000 | $ 17,600,000 |
Investment in Films and Telev_7
Investment in Films and Television Programs - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Investments [Line Items] | |||||
Operating Cycle | 18 years 2 months 12 days | ||||
Film, monetized in film group, amortization expense | $ 10 | $ 10 | $ 171.4 | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Schedule of Investments [Line Items] | |||||
Unamortized Film and Television Libraries Cost | $ 233.5 | $ 132.8 | 132.8 | 149.9 | |
Operating Cycle | 13 years | ||||
Film, monetized in film group, amortization expense | $ 948.1 | $ 1,295.6 | $ 1,649.3 | $ 1,497.5 | $ 746 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 114.3 | $ 112.1 | |
Less accumulated depreciation and amortization | (91.7) | (83.3) | |
Property, Plant and Equipment, Other, Gross | 22.6 | 28.8 | |
Property, Plant and Equipment, Net | $ 35.9 | 23.8 | 30 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 27.6 | 26.1 | |
Property and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 15.2 | 19 | |
Computer equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 71.5 | 67 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1.2 | $ 1.2 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 12.2 | $ 12.4 | $ 11.5 |
Investments - Summary of Compan
Investments - Summary of Company's Investments (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Investments in equity method investees | $ 67.1 | $ 63.1 | $ 53.9 |
Other investments | 4.4 | 1.6 | 2.1 |
Investments | $ 71.5 | $ 64.7 | $ 56 |
Investments - Summary of Summar
Investments - Summary of Summarized Financial Information (Detail) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Current assets | $ 515,245 | $ 1,157,294 | $ 699,480 | ||
Current liabilities | $ 25,857,422 | 21,948,509 | $ 338,004 | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Current assets | 1,464,800,000 | $ 1,152,000,000 | $ 1,012,000,000 | ||
Current liabilities | $ 2,696,500,000 | 2,108,800,000 | 1,887,100,000 | ||
Equity Method Investee [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Current assets | 189,000,000 | 125,300,000 | |||
Non-current assets | 203,000,000 | 166,400,000 | |||
Current liabilities | 215,500,000 | 253,900,000 | |||
Non-current liabilities | $ 65,000,000 | $ 59,800,000 |
Investments - Summary of Financ
Investments - Summary of Financial Information for The Company's Equity Method Investees (Detail) - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net loss | $ 5,000 | $ (5,162,251) | $ (8,008,646) | $ (16,700,633) | $ (22,511,785) | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||||||
Revenues | $ 2,106,300,000 | $ 2,260,200,000 | $ 3,083,800,000 | $ 2,716,300,000 | $ 1,912,900,000 | |||||
Net loss | $ 46,500,000 | $ (20,700,000) | $ 300,000 | (11,100,000) | 19,600,000 | |||||
Equity Method Investee [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||||||
Revenues | 185,300,000 | 86,000,000 | 84,600,000 | |||||||
Gross profit | 35,100,000 | 26,500,000 | 32,000,000 | |||||||
Net loss | $ (39,000,000) | $ (46,100,000) | $ (62,600,000) |
Investments - Additional Inform
Investments - Additional Information (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Oct. 17, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income (loss) from equity method investments | $ 43.4 | $ 5.7 | $ 0.8 | $ 0.5 | $ (3) | $ (6.1) |
STARZPLAY Arabia [Member] | ||||||
Equity method investment, amount sold | $ 43.4 | |||||
Minimum [Member] | Equity Method Investment [Member] | ||||||
Equity method investment, ownership percentage | 6% | 6% | ||||
Maximum [Member] | Equity Method Investment [Member] | ||||||
Equity method investment, ownership percentage | 49% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | |||
Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill | $ 795.6 | |||
Acquisition of eOne | 5.8 | |||
Goodwill | 801.4 | |||
Goodwill | $ 795.6 | $ 795.6 | $ 795.6 | |
Motion Picture [Member] | ||||
Goodwill | 393.7 | |||
Acquisition of eOne | 1 | |||
Goodwill | 394.7 | |||
Goodwill | 393.7 | 393.7 | 393.7 | |
Television Production [Member] | ||||
Goodwill | 401.9 | |||
Acquisition of eOne | 4.8 | |||
Goodwill | $ 406.7 | |||
Goodwill | $ 401.9 | $ 401.9 | $ 401.9 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Mar. 31, 2023 | Mar. 31, 2022 |
Gross Carrying Amount | $ 58.5 | $ 58.5 |
Accumulated Amortization | 31.6 | 25.9 |
Net Carrying Amount | 26.9 | 32.6 |
Customer Relationships [Member] | ||
Gross Carrying Amount | 31 | 31 |
Accumulated Amortization | 10 | 7.9 |
Net Carrying Amount | 21 | 23.1 |
Trademarks and Trade Names [Member] | ||
Gross Carrying Amount | 3.6 | 3.6 |
Accumulated Amortization | 2.6 | 2.2 |
Net Carrying Amount | 1 | 1.4 |
Other [Member] | ||
Gross Carrying Amount | 23.9 | 23.9 |
Accumulated Amortization | 19 | 15.8 |
Net Carrying Amount | $ 4.9 | $ 8.1 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2028 | Mar. 31, 2027 | Mar. 31, 2026 | Mar. 31, 2025 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||||
Amortization of intangible assets | $ 2.2 | $ 2.2 | $ 2.5 | $ 4.2 | $ 5.1 | $ 5.7 | $ 5.7 | $ 5.7 |
Debt - Summary of Total Debt (D
Debt - Summary of Total Debt (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Debt Instrument [Line Items] | |||
Total corporate debt | $ 1,604.4 | $ 1,259.9 | $ 1,482.7 |
Unamortized debt issuance costs | (11.7) | (16.3) | (23.6) |
Total debt, net | 1,592.7 | 1,243.6 | 1,459.1 |
Less current portion | (50.3) | (41.4) | (222.8) |
Non-current portion of debt | 1,542.4 | 1,202.2 | 1,236.3 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total corporate debt | 375 | 0 | 0 |
Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Total corporate debt | 407.1 | 428.2 | 638.5 |
Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Total corporate debt | $ 822.3 | $ 831.7 | $ 844.2 |
Debt - Summary of Future Annual
Debt - Summary of Future Annual Contractual Principal Payment Commitments of Debt (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
2024 | $ 41.4 | ||
2025 | 860.4 | ||
2026 | 44.5 | ||
2027 | 313.6 | ||
Thereafter | 0 | ||
Total | 1,259.9 | $ 1,604.4 | $ 1,482.7 |
Less aggregate unamortized debt issuance costs | (16.3) | ||
Total debt, net | $ 1,243.6 | 1,592.7 | 1,459.1 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | 2026-04 | ||
2024 | $ 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
Thereafter | 0 | ||
Total | $ 0 | 375 | 0 |
Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | 2026-04 | ||
2024 | $ 28.9 | ||
2025 | 41.2 | ||
2026 | 44.5 | ||
2027 | 313.6 | ||
Thereafter | 0 | ||
Total | $ 428.2 | 407.1 | 638.5 |
Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Maturity Date | 2025-03 | ||
2024 | $ 12.5 | ||
2025 | 819.2 | ||
2026 | 0 | ||
2027 | 0 | ||
Thereafter | 0 | ||
Total | $ 831.7 | $ 822.3 | $ 844.2 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jun. 14, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Apr. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Apr. 07, 2021 | Apr. 06, 2021 | |
Debt Instrument [Line Items] | ||||||||||||
Gain loss on extinguishment of debt | $ 0 | $ 1.3 | ||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Minimum percentage in the difference between the present value of cash flows after the amendment and before the amendment | 10% | |||||||||||
Debt instrument, maturity date | Apr. 15, 2029 | Apr. 15, 2029 | ||||||||||
Gain loss on extinguishment of debt | $ 0 | $ (1.3) | $ (1.3) | $ (3.4) | $ 0 | |||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility Including Letter of Credit [Member] | LIBOR One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate spread | 1.75% | |||||||||||
Long term debt floor interest rate percentage | 1.75% | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility Including Letter of Credit [Member] | Alternative Base Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate spread | 0.75% | 0.75% | ||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility Including Letter of Credit [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate spread | 0.10% | |||||||||||
Long term debt interest rate margin percentage | 1.75% | |||||||||||
Long term debt floor interest rate percentage | 0% | |||||||||||
Potential increase in margin percentage one | 25% | |||||||||||
Potential increase in margin percentage two | 25% | |||||||||||
Potential increase in margin percentage total | 50% | |||||||||||
Long term debt effective interest rate percentage | 6.61% | 7.20% | 6.61% | |||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan A [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayment of long term debt | $ 193.6 | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan A [Member] | Credit Agreement Amendment [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument face value | $ 215.1 | $ 444.9 | ||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan A [Member] | Beginning September 30, 2022 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long term debt principal repayment percentage | 1.25% | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan A [Member] | Beginning September 30, 2023 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long term debt principal repayment percentage | 1.75% | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan A [Member] | Beginning September 30, 2024 through March 31, 2026 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long term debt principal repayment percentage | 2.50% | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan A [Member] | LIBOR One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate spread | 1.75% | |||||||||||
Long term debt floor interest rate percentage | 1.75% | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan A [Member] | Alternative Base Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate spread | 0.75% | 0.75% | ||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan A [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate spread | 0.10% | |||||||||||
Long term debt interest rate margin percentage | 1.75% | |||||||||||
Long term debt floor interest rate percentage | 0% | |||||||||||
Potential increase in margin percentage one | 25% | |||||||||||
Potential increase in margin percentage two | 25% | |||||||||||
Potential increase in margin percentage total | 50% | |||||||||||
Long term debt effective interest rate percentage | 6.61% | 6.61% | ||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long term debt principal repayment percentage | 0.25% | |||||||||||
Repayment of long term debt | 95.3 | |||||||||||
Debt instrument principal amount of debt repurchased | 96 | |||||||||||
Long term debt beyond beyond which repayment is necessary | $ 250 | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan B [Member] | LIBOR One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate spread | 2.25% | 2.25% | ||||||||||
Long term debt effective interest rate percentage | 7.70% | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan B [Member] | Alternative Base Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate spread | 1.25% | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan B [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate spread | 0.10% | |||||||||||
Long term debt interest rate margin percentage | 2.25% | |||||||||||
Long term debt effective interest rate percentage | 7.11% | 7.20% | 7.11% | |||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Line of Credit Term Loan A and Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of ownership change beyond which event of default could be triggered | 50% | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility [Member] | Credit Agreement Amendment [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit maximum borrowing capacity | $ 250 | $ 1,250 | ||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Lions Gate Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior notes outstanding | $ 800 | $ 715 | $ 800 | $ 1,000 | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility And Term Loan A [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, maturity date | Apr. 06, 2026 | |||||||||||
Line of credit facility contingent due date | Dec. 23, 2024 | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, maturity date | Mar. 24, 2025 | Mar. 24, 2025 | ||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility Including Letter of Credit [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit maximum borrowing capacity | 1,250 | $ 1,250 | $ 1,250 | |||||||||
Line of credit current Borrowing capacity | $ 875 | |||||||||||
Letters of credit | $ 0 | $ 0 | ||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility Including Letter of Credit [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument variable interest rate spread | 0.10% | |||||||||||
Long term debt interest rate margin percentage | 1.75% | |||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility Including Letter of Credit [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility commitment fee percentage | 0.25% | 0.25% | ||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility Including Letter of Credit [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility commitment fee percentage | 0.375% | 0.375% |
Debt - Summary of Loss on Extin
Debt - Summary of Loss on Extinguishment of Debt (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Extinguishment of Debt [Line Items] | ||||||
Loss on Extinguishment of Debt | $ 0 | $ 1.3 | ||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Loss on Extinguishment of Debt | $ 0 | $ (1.3) | $ (1.3) | $ (3.4) | $ 0 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan A [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Loss on Extinguishment of Debt | (1.3) | 0 | ||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility And Term Loan A [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Loss on Extinguishment of Debt | [1] | 0 | (1.7) | |||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Revolving Credit Facility [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Loss on Extinguishment of Debt | 0 | (1.1) | ||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Term Loan B [Member] | ||||||
Extinguishment of Debt [Line Items] | ||||||
Loss on Extinguishment of Debt | $ 0 | $ (0.6) | ||||
[1]See Accounting for the Credit Agreement Amendment section below. |
Debt - Summary of Accounting fo
Debt - Summary of Accounting for the Credit Agreement Amendment (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - Revolving Credit Facility And Term Loan A [Member] $ in Millions | 12 Months Ended |
Mar. 31, 2022 USD ($) | |
Disclosure In Tabular Form Of Credit Agreement [Line Items] | |
Loss on Extinguishment of Debt | $ 1.7 |
Recorded as a Reduction of Outstanding Debt Balances & Amortized Over Life of New Issuances | 24 |
Total | 25.7 |
New Debt Issuance Costs and Call Premiums [Member] | |
Disclosure In Tabular Form Of Credit Agreement [Line Items] | |
Loss on Extinguishment of Debt | 0.6 |
Recorded as a Reduction of Outstanding Debt Balances & Amortized Over Life of New Issuances | 5.6 |
Total | 6.2 |
Previously Incurred Debt Issuance Costs [Member] | |
Disclosure In Tabular Form Of Credit Agreement [Line Items] | |
Loss on Extinguishment of Debt | 1.1 |
Recorded as a Reduction of Outstanding Debt Balances & Amortized Over Life of New Issuances | 18.4 |
Total | $ 19.5 |
Film Related Obligations - Summ
Film Related Obligations - Summary of Disclosure In Entirety Of Film Related Obligations (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Disclosure In Entirety Of Film Related Obligations [Line Items] | |||
Film related obligations | $ 1,604.4 | $ 1,259.9 | $ 1,482.7 |
Less unamortized debt issuance costs | (16.3) | ||
Total debt, net | 1,592.7 | 1,243.6 | 1,459.1 |
Less current portion | (50.3) | (41.4) | (222.8) |
Non-current portion of debt | 1,542.4 | 1,202.2 | 1,236.3 |
Film Related Obligations [Member] | |||
Disclosure In Entirety Of Film Related Obligations [Line Items] | |||
Film related obligations | 1,821.5 | 1,951.5 | 1,313.8 |
Less unamortized debt issuance costs | (8.9) | (11.4) | (8.4) |
Total debt, net | 1,812.6 | 1,940.1 | 1,305.4 |
Less current portion | (1,258.2) | (923.7) | (659.5) |
Non-current portion of debt | 554.4 | 1,016.4 | 645.9 |
Film Related Obligations [Member] | Production Loans [Member] | |||
Disclosure In Entirety Of Film Related Obligations [Line Items] | |||
Film related obligations | 1,279.2 | 1,349.9 | 966.3 |
Film Related Obligations [Member] | Production Tax Credit Facility [Member] | |||
Disclosure In Entirety Of Film Related Obligations [Line Items] | |||
Film related obligations | 250 | 231.8 | 224 |
Film Related Obligations [Member] | Back Log Facility And Other [Member] | |||
Disclosure In Entirety Of Film Related Obligations [Line Items] | |||
Film related obligations | 175 | 226 | 0 |
Film Related Obligations [Member] | IP Credit Facility [Member] | |||
Disclosure In Entirety Of Film Related Obligations [Line Items] | |||
Film related obligations | $ 117.3 | $ 143.8 | $ 123.5 |
Film Related Obligations - Su_2
Film Related Obligations - Summary of Forth Future Annual Repayment (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Debt Instrument [Line Items] | |||
2024 | $ 41.4 | ||
2025 | 860.4 | ||
2026 | 44.5 | ||
2027 | 313.6 | ||
Total | $ 1,604.4 | 1,259.9 | $ 1,482.7 |
Less unamortized debt issuance costs | (16.3) | ||
Long-term debt | 1,592.7 | 1,243.6 | 1,459.1 |
Film Related Obligations [Member] | |||
Debt Instrument [Line Items] | |||
2024 | 923.7 | ||
2025 | 796.3 | ||
2026 | 59.8 | ||
2027 | 30.4 | ||
2028 | 141.3 | ||
Thereafter | 0 | ||
Total | 1,821.5 | 1,951.5 | 1,313.8 |
Less unamortized debt issuance costs | (8.9) | (11.4) | (8.4) |
Long-term debt | 1,812.6 | 1,940.1 | 1,305.4 |
Film Related Obligations [Member] | Production Loans [Member] | |||
Debt Instrument [Line Items] | |||
2024 | 810 | ||
2025 | 539.9 | ||
2026 | 0 | ||
2027 | 0 | ||
2028 | 0 | ||
Thereafter | 0 | ||
Total | 1,279.2 | 1,349.9 | 966.3 |
Film Related Obligations [Member] | Production Tax Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
2024 | 0 | ||
2025 | 231.8 | ||
2026 | 0 | ||
2027 | 0 | ||
2028 | 0 | ||
Thereafter | 0 | ||
Total | 250 | 231.8 | 224 |
Film Related Obligations [Member] | Back Log Facility And Other [Member] | |||
Debt Instrument [Line Items] | |||
2024 | 77.6 | ||
2025 | 0 | ||
2026 | 29.4 | ||
2027 | 0 | ||
2028 | 119 | ||
Thereafter | 0 | ||
Total | 175 | 226 | 0 |
Film Related Obligations [Member] | IP Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
2024 | 36.1 | ||
2025 | 24.6 | ||
2026 | 30.4 | ||
2027 | 30.4 | ||
2028 | 22.3 | ||
Thereafter | 0 | ||
Total | $ 117.3 | $ 143.8 | $ 123.5 |
Film Related Obligations - Su_3
Film Related Obligations - Summary of IP Credit Facility Subject To Cumulative Minimum Guaranteed Payment (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - Film Related Obligations [Member] - IP Credit Facility [Member] $ in Millions | Sep. 29, 2022 USD ($) |
September 30, 2023 [Member] | |
Disclosure In Tabular Form Of Minimum Guaranteed Payments IP Credit Facility [Line Items] | |
Cumulative Minimum Guaranteed Payment Amounts | $ 30.4 |
Payment Due Date | Nov. 14, 2023 |
September 30, 2024 [Member] | |
Disclosure In Tabular Form Of Minimum Guaranteed Payments IP Credit Facility [Line Items] | |
Cumulative Minimum Guaranteed Payment Amounts | $ 60.7 |
Payment Due Date | Nov. 14, 2024 |
September 30, 2025 [Member] | |
Disclosure In Tabular Form Of Minimum Guaranteed Payments IP Credit Facility [Line Items] | |
Cumulative Minimum Guaranteed Payment Amounts | $ 91.1 |
Payment Due Date | Nov. 14, 2025 |
September 30, 2026 [Member] | |
Disclosure In Tabular Form Of Minimum Guaranteed Payments IP Credit Facility [Line Items] | |
Cumulative Minimum Guaranteed Payment Amounts | $ 121.4 |
Payment Due Date | Nov. 14, 2026 |
July 30, 2027 [Member] | |
Disclosure In Tabular Form Of Minimum Guaranteed Payments IP Credit Facility [Line Items] | |
Cumulative Minimum Guaranteed Payment Amounts | $ 161.9 |
Payment Due Date | Jul. 30, 2027 |
Film Related Obligations - Addi
Film Related Obligations - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 4 Months Ended | 7 Months Ended | |||||
Dec. 31, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2023 | Aug. 30, 2022 | Mar. 31, 2022 | |
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Line of credit facility moratorium period | 90 days | |||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Long term debt gross | $ 1,604.4 | $ 1,259.9 | $ 1,259.9 | $ 1,259.9 | $ 1,259.9 | $ 1,482.7 | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Long term debt gross | $ 1,821.5 | $ 1,951.5 | $ 1,951.5 | $ 1,951.5 | $ 1,951.5 | 1,313.8 | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Production Loans [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Long term debt weighted average interest rate | 6.91% | 6.74% | 6.74% | 6.74% | 6.74% | |||
Long term debt gross | $ 1,279.2 | $ 1,349.9 | $ 1,349.9 | $ 1,349.9 | $ 1,349.9 | 966.3 | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Production Loans [Member] | Secured Portion [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Long term debt gross | 1,109.2 | 1,277.8 | 1,277.8 | 1,277.8 | 1,277.8 | |||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Production Loans [Member] | Unsecured Portion [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Long term debt gross | 170 | 72.1 | 72.1 | 72.1 | 72.1 | |||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Production Tax Credit Facility [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Long term debt gross | 250 | 231.8 | 231.8 | 231.8 | 231.8 | 224 | ||
Line of credit maximum borrowing capacity | $ 250 | $ 235 | $ 235 | $ 235 | $ 235 | |||
Debt instrument effective interest rate percentage | 6.95% | 6.41% | 6.41% | 6.41% | 6.41% | |||
Line of credit current Borrowing capacity | $ 3.2 | $ 3.2 | $ 3.2 | $ 3.2 | ||||
Line of credit facility expiration date | Jan. 27, 2025 | Jan. 27, 2025 | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Production Tax Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument additional margin percentage | 1.50% | 1.50% | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Production Tax Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument variable interest rate spread | 0.10% | 0.10% | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Production Tax Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument variable interest rate spread | 0.25% | 0.25% | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Production Tax Credit Facility [Member] | Base Rate [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument variable interest rate spread | 0.50% | 0.50% | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | IP Credit Facility [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Long term debt gross | $ 117.3 | $ 143.8 | 143.8 | 143.8 | 143.8 | 123.5 | ||
Line of credit maximum borrowing capacity | $ 161.9 | $ 161.9 | $ 161.9 | $ 161.9 | $ 161.9 | |||
Line of credit facility expiration date | Jul. 30, 2027 | Jul. 30, 2027 | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | IP Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument additional margin percentage | 2.25% | 2.25% | ||||||
Long Term Debt Floor Interest Rate Percentage | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% | |||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | IP Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument variable interest rate spread | 0.11% | 0.11% | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | IP Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument variable interest rate spread | 0.26% | 0.26% | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | IP Credit Facility [Member] | Base Rate [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument variable interest rate spread | 1.25% | 1.25% | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Back Log Facility And Other [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Long term debt gross | $ 175 | $ 226 | $ 226 | $ 226 | $ 226 | 0 | ||
Line of credit maximum borrowing capacity | 175 | 175 | $ 175 | 175 | ||||
Line of credit facility expiration date | May 16, 2025 | |||||||
Line of credit expiration period | 2 years | |||||||
Line of credit facility outstanding | 175 | 175 | $ 175 | 175 | $ 0 | |||
Line of credit facility remaining borrowing capacity | $ 0 | 0 | $ 0 | 0 | $ 0 | |||
Proceeds from line of credit | $ 118.6 | |||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Back Log Facility And Other [Member] | September Two Thousand And Twenty Two Distribution Loan [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Line of credit facility expiration date | Mar. 28, 2026 | |||||||
Proceeds from long term line of credit | $ 43.4 | |||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Back Log Facility And Other [Member] | December Two Thousand And Twenty Two Distribution Loan [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Line of credit facility expiration date | Nov. 01, 2025 | |||||||
Proceeds from long term line of credit | $ 16.2 | |||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Back Log Facility And Other [Member] | September Two Thousand And Twenty Two And December Two Thousand And Twenty Two Distribution Loan [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Line of credit maximum borrowing capacity | 18.7 | 18.7 | 18.7 | 18.7 | ||||
Line of credit facility outstanding | $ 51 | $ 51 | $ 51 | $ 51 | ||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Back Log Facility And Other [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument additional margin percentage | 1.15% | |||||||
Debt instrument effective interest rate percentage | 6.60% | 6.06% | ||||||
Debt instrument potential additional margin percentage one | 1.25% | |||||||
Debt instrument potential additional margin percentage two | 1.50% | |||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Back Log Facility And Other [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | September Two Thousand And Twenty Two Distribution Loan [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument variable interest rate spread | 0.11% | |||||||
Debt instrument additional margin percentage | 1.50% | |||||||
Debt instrument effective interest rate percentage | 6.42% | 6.42% | 6.42% | 6.42% | ||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Back Log Facility And Other [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | December Two Thousand And Twenty Two Distribution Loan [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument variable interest rate spread | 0.11% | |||||||
Debt instrument additional margin percentage | 2.10% | |||||||
Debt instrument effective interest rate percentage | 7.02% | 7.02% | 7.02% | 7.02% | ||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Back Log Facility And Other [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument variable interest rate spread | 0.10% | |||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Film Related Obligations [Member] | Back Log Facility And Other [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member] | ||||||||
Disclosure In Entirety Of Film Related Obligations [Line Items] | ||||||||
Debt instrument variable interest rate spread | 0.25% |
Trust Account - Additional Info
Trust Account - Additional Information (Detail) - USD ($) | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 10, 2022 | Dec. 31, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
United States Treasury Bills [Line Items] | |||||
Proceeds from Issuance or Sale of Equity | $ 750,000,000 | $ 750,000,000 | |||
Proceeds from Issuance Initial Public Offering | $ 0 | 0 | $ 750,000,000 | ||
Cash | 804,228,813 | 794,750,266 | 441,037 | ||
Fair value, measurement with unobservable inputs reconciliation, recurring basis, liability, transfers, net | 0 | 0 | |||
IPO [Member] | |||||
United States Treasury Bills [Line Items] | |||||
Proceeds from Issuance Initial Public Offering | $ 750,000,000 | 735,000,000 | 735,000,000 | ||
Private Placement [Member] | |||||
United States Treasury Bills [Line Items] | |||||
Proceeds from Issuance of Private Placement | 15,000,000 | 15,000,000 | |||
US Treasury Bills [Member] | |||||
United States Treasury Bills [Line Items] | |||||
Debt securities, held-to-maturity | $ 804,228,813 | $ 794,750,266 | $ 759,271,905 |
Trust Account - Summary of Avai
Trust Account - Summary of Available-for-sale Securities Reconciliation (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Trust Account [Line Items] | ||
Quoted Prices in Active Markets (Level 1) | $ 794,750,266 | $ 441,037 |
Trust Account - Summary of Excl
Trust Account - Summary of Excluding Gross Unrealized Holding Gain (Detail) - Fair Value, Inputs, Level 1 [Member] - U.S. Government Treasury Securities [Member] | Dec. 31, 2022 USD ($) | [1] |
Trust Account [Line Items] | ||
Amortized Cost | $ 759,271,905 | |
Gross Holding Gain | 161,421 | |
Quoted Prices in Active Markets (Level 1) | $ 759,433,326 | |
[1]Maturity date March 23, 2023. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Jan. 03, 2024 | |
Commitments and Contingencies [Line Items] | ||||||
Deferred underwriting commission per unit, shares | $ 0.35 | $ 0.35 | ||||
Deferred underwriting commissions noncurrent | $ 26,250,000 | $ 26,250,000 | ||||
Deferred underwriting fee | $ 26,250,000 | |||||
Deferred underwriting fee waivable | 26,250,000 | |||||
Temporary equity offering cost | $ 17,325,000 | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Redeemable Non controlling Interest | $ 343,600,000 | |||||
Multiemployer Plan, Employee Increase (Decrease), Percentage | 80% | |||||
Percentage Of Motion Picture Industry Pension Plan | 69.80% | |||||
Percentage Of Screen Actors Guild Producers Pension Plan | 78.95% | |||||
Multiemployer Plan, Pension, Significant, Employer Contribution, Cost | $ 87,000,000 | $ 90,400,000 | $ 62,900,000 | |||
Litigation Settlement, Amount Awarded from Other Party | $ 22,700,000 | |||||
Subsequent Event [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Deferred fee payable | 26,250,000 | |||||
Deferred underwriting fee | $ 26,250,000 | |||||
Over-Allotment Option [Member] | ||||||
Commitments and Contingencies [Line Items] | ||||||
Over allotment option period | 45 days | 45 days | ||||
Stock issued during period shares | 11,250,000 | 11,250,000 |
Shareholders' Deficit - Additio
Shareholders' Deficit - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Feb. 19, 2022 | Dec. 13, 2021 | Nov. 05, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shareholders Deficit [Line Items] | ||||||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Preferred Stock, Shares Issued | 0 | 0 | 0 | 0 | ||||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 | 0 | ||||
Temporary Equity, Shares Outstanding | 75,000,000 | 75,000,000 | 75,000,000 | |||||
Founder Shares [Member] | ||||||||
Shareholders Deficit [Line Items] | ||||||||
Stock Conversion Basis | one vote | one vote | ||||||
Stockholders' Equity Note, Stock Split | one and one-quarter | |||||||
Founder Shares [Member] | Sponsor [Member] | ||||||||
Shareholders Deficit [Line Items] | ||||||||
Common Stock, Shares, Outstanding | 18,750,000 | |||||||
Common Class A [Member] | ||||||||
Shareholders Deficit [Line Items] | ||||||||
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | 400,000,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Stock Conversion Basis | one vote | one vote | ||||||
Temporary Equity, Shares Outstanding | 75,000,000 | 75,000,000 | 75,000,000 | |||||
Temporary Equity, Shares Issued | 75,000,000 | 75,000,000 | 75,000,000 | 75,000,000 | ||||
Percentage of ownership held by initial shareholders | 20% | |||||||
Common Stock, Shares, Issued | 0 | 0 | 0 | 0 | ||||
Common Stock, Shares, Outstanding | 0 | 0 | 0 | 0 | ||||
Common Class B [Member] | ||||||||
Shareholders Deficit [Line Items] | ||||||||
Common Stock, Shares Authorized | 80,000,000 | 80,000,000 | 80,000,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Percentage of ownership held by initial shareholders | 20% | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, Forfeited | 2,812,500 | 2,812,500 | 2,812,500 | |||||
Common Stock, Shares, Issued | 4,312,500 | 17,250,000 | 18,750,000 | 18,750,000 | 18,750,000 | 19 | ||
Common Stock, Shares, Outstanding | 18,750,000 | 17,250,000 | 18,750,000 | 18,750,000 | 18,750,000 | |||
Offering and formation cost | $ 25,000 | |||||||
Common Class B [Member] | Founder Shares [Member] | ||||||||
Shareholders Deficit [Line Items] | ||||||||
Common Stock, Shares Authorized | 80,000,000 | 80,000,000 | ||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||||||
Shares Issued, Shares, Share-based Payment Arrangement, Forfeited | 21,562,500 | |||||||
Common Stock, Shares, Outstanding | 21,562,500 |
Warrants - Additional Informati
Warrants - Additional Information (Detail) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Warrants [Line Items] | ||
Minimum lock In period for transfer, assign or sell warrants after completion of IPO | 30 days | 30 days |
Public Warrants [Member] | ||
Warrants [Line Items] | ||
Number of warrants or rights outstanding | 25,000,000 | 25,000,000 |
Warrants exercisable term from the date of completion of business combination | 20 days | 20 days |
Private Placement Warrants [Member] | ||
Warrants [Line Items] | ||
Number of warrants or rights outstanding | 11,733,333 | 11,733,333 |
Redemption of warrants [Member] | Share Price Equal or Exceeds Eighteen Rupees per dollar [Member] | Common Class A [Member] | ||
Warrants [Line Items] | ||
Class of warrants, redemption price per unit | 0.01% | 0.01% |
Class of warrants, redemption notice period | 30 days | 30 days |
Share price | $ 18 | $ 18 |
Number of consecutive trading days for determining share price | 20 days | 20 days |
Number of trading days for determining share price | 30 days | 30 days |
PIPE with Reduction Right Lia_2
PIPE with Reduction Right Liability - Additional Information (Detail) - Subscription Agreement [Member] - Accredited Investors [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Disclosure Of Private Investment In Public Equity [Line Items] | ||
Common stock shares subscirbed but not issued | 18,172,378 | 18,172,378 |
Sale of stock issue price per share | $ 9.63 | $ 9.63 |
Common stock value subscribed | $ 175,000,000 | $ 175,000,000 |
Common Class A [Member] | ||
Disclosure Of Private Investment In Public Equity [Line Items] | ||
Class of warrant or right, exercise price of warrants or rights | $ 0.0001 | $ 0.0001 |
Class of warrant or right, number of securities called by each warrant or right | 0.1111 | 0.1111 |
Reduction Right Shares [Member] | ||
Disclosure Of Private Investment In Public Equity [Line Items] | ||
Minimum proceeds from the issue of equity estimated | $ 175,000,000 | $ 175,000,000 |
Recurring Fair Value Measurem_3
Recurring Fair Value Measurements - Additional Information (Detail) - USD ($) | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash | $ 804,228,813 | $ 794,750,266 | $ 441,037 | ||
Unrealized gain loss on derivatives | $ 0 | (1,146,117) | $ 0 | 544,290 | 0 |
Private Investment In Public Equity Reduction Right Liability [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Reduction right expenses | 18,797,300 | ||||
Unrealized gain loss on derivatives | 544,290 | ||||
Private Placement Warrants [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value Adjustment of Warrants | $ 234,667 | $ 469,333 | 2,816,000 | 14,197,333 | |
United States Treasury Bills [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Debt Securities, Held-to-Maturity | $ 794,750,266 | $ 759,271,905 |
Recurring Fair Value Measurem_4
Recurring Fair Value Measurements - Schedule of Fair Value Hierarchy the Company's Liabilities that were Accounted for at Fair Value on a Recurring Basis (Detail) - Level 3 [Member] - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
PIPE with reduction right liability [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
PIPE with reduction right liability as of March 31, 2024 | $ 19,399,127 | $ 18,253,010 | |
Private placement warrants [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrants and Rights Outstanding | $ 234,667 | $ 469,333 | $ 3,285,333 |
Recurring Fair Value Measurem_5
Recurring Fair Value Measurements - Summary of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs as their Measurement Dates (Detail) - Fair Value, Inputs, Level 3 [Member] | Mar. 31, 2024 yr $ / shares | Dec. 31, 2023 $ / shares yr | Dec. 31, 2022 yr $ / shares | ||||
Ordinary share stock price [Member] | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | 10.7 | 10.6 | 9.94 | ||||
Exercise price [Member] | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | 11.5 | 11.5 | 11.5 | ||||
Volatility [Member] | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | 40 | 45 | 31 | ||||
Term [Member] | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | yr | 5.11 | 5.28 | 5.75 | ||||
Risk-free rate [Member] | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | 4.21 | 3.85 | 3.98 | ||||
Dividend yield [Member] | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | 0 | 0 | 0 | ||||
Probability of completing the Business Combination [Member] | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | [1] | 91 | |||||
Probability of completing a different business combination [Member] | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | 0.6 | [2] | 0.8 | [3],[4] | 9 | [5] | |
Probability of completing lionsgate business combination [Member] | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Warrants and Rights Outstanding, Measurement Input | [6] | 94.9 | 91 | ||||
[1]Estimated by solving for the implied probability of completing the Business Combination with StudioCo based on the public warrant price and the contemplated exchange price of $0.50, adjusted for the time value of money.[2]Derived as follows: 11%*(1-94.9%), where 11% represents the probability of completing a different business combination based on public trading of rights for special purpose acquisition companies and 94.9% represents the probability of completing the Lionsgate Business Combination.[3]Derived as follows: 9%*(1-91%), where 9% represents the probability of completing a different business combination based on public trading of rights for special purpose acquisition companies and 91% represents the probability of completing the Business Combination with StudioCo.[4]Derived as follows: 9%*(1-91%), where 9% represents the probability of completing a different business combination based on public trading of rights for special purpose acquisition companies and 91% represents the probability of completing the Lionsgate Business Combination.[5]Based on public trading of rights for special purpose acquisition companies and their implied business combination probabilities as of December 31, 2022.[6]Estimated by solving for the implied probability of completing the Lionsgate Business Combination based on the public warrant price and the contemplated exchange price of $0.50, adjusted for the time value of money. |
Recurring Fair Value Measurem_6
Recurring Fair Value Measurements - Summary of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs as their Measurement Dates (Parenthetical) (Detail) - Studio Co [Member] | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Probability of consummating a business combination | 94.90% | 91% |
Measurement Input Probability Rate Of Different Business Combination [Member] | SPAC Market Data Published By Third Party [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 94.9 | 91 |
Measurement Input Probability of Completing The Business Combination [Member] | SPAC Market Data Published By Third Party [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 11 | 9 |
Measurement Input, Share Price [Member] | SPAC Market Data Published By Third Party [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 0.5 | 0.5 |
Recurring Fair Value Measurem_7
Recurring Fair Value Measurements - Summary of the Change in the Fair Value of the Warrant Liabilities (Detail) - Warrant Liability [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Level 3 Derivative warrant liability Beginning Balance | $ 469,333 | $ 3,285,333 | $ 3,285,333 | $ 0 |
Issuance of Private Warrants on January 10, 2022 | 17,482,666 | |||
Change in fair value of derivative warrant liability | (234,666) | (469,333) | (2,816,000) | (14,197,333) |
Level 3 Derivative warrant liability Ending Balance | $ 234,667 | $ 2,816,000 | $ 469,333 | $ 3,285,333 |
Recurring Fair Value Measurem_8
Recurring Fair Value Measurements - Summary of Quantitative Information Regarding Level 3 Fair Value Measurement Inputs for the PIPE with Reduction Right Liability (Detail) - PIPE with reduction right liability [Member] | Mar. 31, 2024 $ / shares yr | Dec. 31, 2023 yr $ / shares | Dec. 22, 2023 $ / shares yr | ||||
Ordinary share stock price [Member] | |||||||
Disclosure In Tabular Form Of Significant Unobservable Inputs Used In The Fair Value Measurement Of Private Investment In Public Equity [Line Items] | |||||||
Quantitative information regarding Level 3 fair value measurement inputs | $ / shares | 10.7 | 10.6 | 10.62 | ||||
Term [Member] | |||||||
Disclosure In Tabular Form Of Significant Unobservable Inputs Used In The Fair Value Measurement Of Private Investment In Public Equity [Line Items] | |||||||
Quantitative information regarding Level 3 fair value measurement inputs | yr | 0.11 | [1] | 0.28 | [1],[2] | 0.3 | [2] | |
Risk-free rate [Member] | |||||||
Disclosure In Tabular Form Of Significant Unobservable Inputs Used In The Fair Value Measurement Of Private Investment In Public Equity [Line Items] | |||||||
Quantitative information regarding Level 3 fair value measurement inputs | 5.37 | [3] | 5.2 | [3],[4] | 5.24 | [4] | |
Probability of completing the Business Combination [Member] | |||||||
Disclosure In Tabular Form Of Significant Unobservable Inputs Used In The Fair Value Measurement Of Private Investment In Public Equity [Line Items] | |||||||
Quantitative information regarding Level 3 fair value measurement inputs | [5] | 91 | 91 | ||||
Probability of completing the Lionsgate Business Combination [Member] | |||||||
Disclosure In Tabular Form Of Significant Unobservable Inputs Used In The Fair Value Measurement Of Private Investment In Public Equity [Line Items] | |||||||
Quantitative information regarding Level 3 fair value measurement inputs | [6] | 94.9 | 91 | ||||
[1]Assumes the transaction closes on May 10, 2024 as of March 31, 2024 and April 10, 2024 as of December 31, 2023.[2]Assumes the transaction closes on April 10, 2024.[3]Reflects 1-month U.S. treasury bill rate as of March 31, 2024 and 3-month U.S. treasury bill rate as of December 31, 2023.[4]Reflects 3-month US treasury, secondary market rate as of the valuation date.[5]Estimated by solving for the implied probability of completing the Business Combination with StudioCo based on the public warrant price and the contemplated exchange price of $0.50, adjusted for the time value of money.[6]Estimated by solving for the implied probability of completing the Lionsgate Business Combination based on the public warrant price and the contemplated exchange price of $0.50, adjusted for the time value of money. |
Recurring Fair Value Measurem_9
Recurring Fair Value Measurements - Summary of Quantitative Information Regarding Level 3 Fair Value Measurement Inputs for the PIPE with Reduction Right Liability (Parenthetical) (Detail) - PIPE with reduction right liability [Member] | Mar. 31, 2024 | Dec. 31, 2023 |
Disclosure In Tabular Form Of Significant Unobservable Inputs Used In The Fair Value Measurement Of Private Investment In Public Equity [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 0.5 | |
Studio Co [Member] | ||
Disclosure In Tabular Form Of Significant Unobservable Inputs Used In The Fair Value Measurement Of Private Investment In Public Equity [Line Items] | ||
Warrants and Rights Outstanding, Measurement Input | 0.5 |
Recurring Fair Value Measure_10
Recurring Fair Value Measurements - Summary of Change in the Fair Value of the PIPE with Reduction Right Liability (Detail) - PIPE with reduction right liability [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Disclosure In Tabular Form Of Reconciliation In Fair Value Of Private Investment In Public Equity Reduction Right Liability [Line Items] | ||
Level 3 Derivative warrant liability Beginning Balance | $ 18,253,010 | $ 0 |
Issuance of PIPE with reduction right liability on December 22, 2023 | 18,797,300 | |
Change in fair value of PIPE reduction right liability | 1,146,117 | (544,290) |
Level 3 Derivative warrant liability Ending Balance | $ 19,399,127 | $ 18,253,010 |
Noncontrolling Interests - Summ
Noncontrolling Interests - Summary of Redeemable Noncontrolling Interests (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |||||
Beginning balance | $ 343.6 | $ 321.2 | $ 321.2 | $ 219.1 | $ 167.8 |
Net loss attributable to redeemable noncontrolling interests | (7.3) | (7.4) | (9.2) | (17.7) | (15.9) |
Noncontrolling interests discount accretion | 0 | 13.4 | 13.2 | 22.7 | 22.7 |
Adjustments to redemption value | 71.5 | 34.7 | 78.4 | 98.6 | 47.1 |
Other | 1.7 | 0 | 0 | ||
Cash distributions | (1) | (4.8) | (6.6) | (1.5) | (2.6) |
Purchase of noncontrolling interest | (0.6) | 0 | (55.1) | 0 | 0 |
Ending balance | $ 406.2 | $ 357.1 | $ 343.6 | $ 321.2 | $ 219.1 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Jan. 02, 2024 | Jun. 26, 2023 | Feb. 28, 2023 | Apr. 02, 2021 | May 29, 2018 | Dec. 31, 2023 | Nov. 14, 2022 | Nov. 12, 2015 |
Subsequent Event [Member] | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Percentage of redeemable non controlling interest ownership percentage | 25% | |||||||
Noncontrolling Interest, Increase from Business Combination | $ 194 | |||||||
Percentage of Right to Acquire Non-Cotrolling Interest | 24% | |||||||
Three Arts Entertainment [Member] | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Non compensatory non controlling interest | $ 15.8 | |||||||
Percentage of redeemable non controlling interest ownership percentage | 25% | 49% | 49% | |||||
Exercisable fair value period of redeemable non controlling interest | 60 days | |||||||
Beginning period of exercisable fair value period of redeemable non controlling interest | 30 days | |||||||
Recoupable non controlling interest value | $ 38.3 | |||||||
Period of recoupable non controlling interest | 5 years | |||||||
Deferred compensation | $ 38.3 | |||||||
Amortized period of deferred compensation | 5 years | |||||||
Three Arts Entertainment [Member] | Subsequent Event [Member] | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Noncontrolling Interest, Increase from Business Combination | $ 194 | |||||||
Percentage of Right to Acquire Non-Cotrolling Interest | 24% | |||||||
Pilgrim Media Group [Member] | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||
Non compensatory non controlling interest | $ 90.1 | |||||||
Percentage of redeemable non controlling interest ownership percentage | 25% | 12.50% | 25% | 37.50% | ||||
Exercisable fair value period of redeemable non controlling interest | 30 days | |||||||
Payment on exercised of non controlling interest | $ 36.5 | |||||||
Carrying value of non controlling interest | 55.1 | |||||||
Reduction in parent net investment | $ 18.6 | |||||||
Non controlling interest unamortized discount | $ 2.7 |
Revenue - Summary of Revenue by
Revenue - Summary of Revenue by Segment, Market or Product Line (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | $ 2,106.3 | $ 2,260.2 | $ 3,083.8 | $ 2,716.3 | $ 1,912.9 |
Operating Segments [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 3,083.8 | 2,716.3 | 1,912.9 | ||
Operating Segments [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 2,106.3 | 2,260.2 | |||
Operating Segments [Member] | Motion Picture Segment [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 1,323.7 | 1,185.3 | 1,081.1 | ||
Operating Segments [Member] | Motion Picture Segment [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 1,245.6 | 791.6 | |||
Operating Segments [Member] | Motion Picture Segment [Member] | Theatrical [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 120.7 | 65.3 | 12 | ||
Operating Segments [Member] | Motion Picture Segment [Member] | Theatrical [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 194.2 | 28.6 | |||
Operating Segments [Member] | Motion Picture Segment [Member] | Home Entertainment [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 598 | 612.1 | 601 | ||
Operating Segments [Member] | Motion Picture Segment [Member] | Home Entertainment [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 558.3 | 433.8 | |||
Operating Segments [Member] | Motion Picture Segment [Member] | Home Entertainment [Member] | Digital Media [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 527.5 | 497.1 | 461.5 | ||
Operating Segments [Member] | Motion Picture Segment [Member] | Home Entertainment [Member] | Digital Media [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 495.3 | 378.5 | |||
Operating Segments [Member] | Motion Picture Segment [Member] | Home Entertainment [Member] | Packaged Media [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 70.5 | 115 | 139.5 | ||
Operating Segments [Member] | Motion Picture Segment [Member] | Home Entertainment [Member] | Packaged Media [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 63 | 55.3 | |||
Operating Segments [Member] | Motion Picture Segment [Member] | Televison [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 217.8 | 257.9 | 230.2 | ||
Operating Segments [Member] | Motion Picture Segment [Member] | Televison [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 214.5 | 147 | |||
Operating Segments [Member] | Motion Picture Segment [Member] | International [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 365 | 234.4 | 217 | ||
Operating Segments [Member] | Motion Picture Segment [Member] | International [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 255.3 | 166.5 | |||
Operating Segments [Member] | Motion Picture Segment [Member] | Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 22.2 | 15.6 | 20.9 | ||
Operating Segments [Member] | Motion Picture Segment [Member] | Other [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 23.3 | 15.7 | |||
Operating Segments [Member] | Television Production [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 1,760.1 | 1,531 | 831.8 | ||
Operating Segments [Member] | Television Production [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 860.7 | 1,468.6 | |||
Operating Segments [Member] | Television Production [Member] | Home Entertainment [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 245 | 92 | 132.8 | ||
Operating Segments [Member] | Television Production [Member] | Home Entertainment [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 114.4 | 207.8 | |||
Operating Segments [Member] | Television Production [Member] | Home Entertainment [Member] | Digital Media [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 241.7 | 85.1 | 127.1 | ||
Operating Segments [Member] | Television Production [Member] | Home Entertainment [Member] | Digital Media [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 113.4 | 205.1 | |||
Operating Segments [Member] | Television Production [Member] | Home Entertainment [Member] | Packaged Media [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 3.3 | 6.9 | 5.7 | ||
Operating Segments [Member] | Television Production [Member] | Home Entertainment [Member] | Packaged Media [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 1 | 2.7 | |||
Operating Segments [Member] | Television Production [Member] | Televison [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 1,144.3 | 1,094.5 | 474 | ||
Operating Segments [Member] | Television Production [Member] | Televison [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 554.2 | 973.1 | |||
Operating Segments [Member] | Television Production [Member] | International [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 277.7 | 256.5 | 164.5 | ||
Operating Segments [Member] | Television Production [Member] | International [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | 137.7 | 219.4 | |||
Operating Segments [Member] | Television Production [Member] | Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | $ 93.1 | $ 88 | $ 60.5 | ||
Operating Segments [Member] | Television Production [Member] | Other [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue by segment, market or product line | $ 54.4 | $ 68.3 |
Revenue - Summary of Revenue _2
Revenue - Summary of Revenue by Segment, Market or Product Line (Parenthetical) (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer excluding assessed tax | $ 2,106.3 | $ 2,260.2 | $ 3,083.8 | $ 2,716.3 | $ 1,912.9 |
Motion Picture Segment [Member] | Starz Business [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer excluding assessed tax | 113.7 | 30 | 44.2 | 38 | 19.8 |
Television Production [Member] | Starz Business [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer excluding assessed tax | $ 308.4 | $ 618.6 | $ 731.3 | $ 610.2 | $ 184.3 |
Revenue - Summary of Remaining
Revenue - Summary of Remaining Performance Obligations (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 1,942.1 | $ 1,697.9 |
Rest of Year Ending March 31, 2024 [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | 486.2 | |
2024 [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | 1,053.2 | |
2025 [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | 917.3 | 440.1 |
2026 [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | 431.9 | 118.1 |
Thereafter [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 106.7 | $ 86.5 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Contract with Customer, Liability, Revenue Recognized | $ 103 | $ 141.3 |
Television Production [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer performance obligation satisfied in the previous period fixed and variable fee | $ 236.2 | $ 156.5 |
Revenue - Summary of Accounts R
Revenue - Summary of Accounts Receivable, Contract Assets and Deferred Revenue (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Trade accounts receivable (Opening) | $ 8.7 | $ 11.4 |
(Benefit) provision for doubtful accounts | 0.3 | 0.7 |
Other | 1.3 | |
Uncollectible accounts written-off | (3.3) | (3.4) |
Trade accounts receivable (Closing) | $ 7 | $ 8.7 |
Revenue - Summary of Accounts_2
Revenue - Summary of Accounts Receivable, Contract Assets and Deferred Revenue (Parenthetical) (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Accounts Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for doubtful accounts receivables write off | $ 3.3 | $ 3.4 |
RUSSIAN FEDERATION | ||
Accounts Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for doubtful accounts receivables write off | $ 2.5 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary Of Share-Based Compensation Expense (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Total share-based compensation expense | [1] | $ 53.6 | $ 42.2 | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Compensation Expense: | 46.3 | 40.1 | $ 69.2 | $ 70.2 | $ 54.5 | ||||
Impact of accelerated vesting on equity awards | 7.3 | 2.1 | 4.2 | 0 | 3.5 | ||||
Total share-based compensation expense | 53.6 | 42.2 | 73.4 | [2] | 70.2 | [2] | 58 | [2] | |
Tax impact | (17.8) | (16.7) | (13.8) | ||||||
Reduction in net income | 55.6 | 53.5 | 44.2 | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Reportable Subsegments [Member] | |||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Compensation Expense: | 34.2 | 23.1 | 42.5 | 50.6 | 36.5 | ||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Reportable Subsegments [Member] | Stock options [Member] | |||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Compensation Expense: | 1.4 | 1.4 | 2.3 | 9.6 | 5.6 | ||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Reportable Subsegments [Member] | Restricted share units and other share-based compensation [Member] | |||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Compensation Expense: | 32.6 | 21.6 | 39.3 | 38.6 | 27.7 | ||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Reportable Subsegments [Member] | Share appreciation rights [Member] | |||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Compensation Expense: | 0.2 | 0.1 | 0.9 | 2.4 | 3.2 | ||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Corporate Segment [Member] | |||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Compensation Expense: | $ 12.1 | $ 17 | $ 26.7 | $ 19.6 | $ 18 | ||||
[1]Total share-based compensation expense in the nine months ended December 31, 2023 and 2022 includes $12.1 million and $17.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense.[2]Total share-based compensation expense in the years ended March 31, 2023, 2022 and 2021 includes $26.7 million, $19.6 million and $18.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense. |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary Of Share-Based Compensation Expense, By Expense Category (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Share-Based Compensation Expense: | [1] | $ 53.6 | $ 42.2 | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Share-Based Compensation Expense: | 53.6 | 42.2 | $ 73.4 | [2] | $ 70.2 | [2] | $ 58 | [2] | |
General and administration [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Share-Based Compensation Expense: | 46.3 | 40.1 | 69.2 | 70.2 | 54.5 | ||||
Restructuring and other [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||||||||
Share-Based Compensation Expense: | $ 7.3 | $ 2.1 | $ 4.2 | $ 0 | $ 3.5 | ||||
[1]Total share-based compensation expense in the nine months ended December 31, 2023 and 2022 includes $12.1 million and $17.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense.[2]Total share-based compensation expense in the years ended March 31, 2023, 2022 and 2021 includes $26.7 million, $19.6 million and $18.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense. |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary Of Stock Option, And Share Appreciation Rights (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Common Class A [Member] | Restricted Stock And Restricted Stock Unit [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted- Average Grant- Date Fair Value Beginning | $ 10.95 | $ 11.51 |
Weighted- Average Grant- Date Fair Value Granted | 10.27 | |
Weighted- Average Grant- Date Fair Value Vested | 11.19 | |
Weighted- Average Grant- Date Fair Value Forfeited | 30.56 | |
Weighted- Average Grant- Date Fair Value Ending | $ 10.95 | |
Common Class A [Member] | Two Thousand And Nineteen Lions Gate Plan [Member] | Stock Option And Share Appreciation Rights [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Shares Beginning | 4,300,000 | 5,400,000 |
Number of Shares Granted | 0 | |
Number of Shares Exercised | 0 | |
Number of Shares Forfeited or expired | (1,900,000) | (1,100,000) |
Number of Shares Ending | 2,400,000 | 4,300,000 |
Number of Shares Vested or expected to vest | 4,300,000 | |
Number of Shares Exercisable | 4,100,000 | |
Weighted- Average Exercise Price Beginning | $ 26.35 | $ 24.34 |
Weighted- Average Exercise Price Granted | 0 | |
Weighted- Average Exercise Price Exercised | 7.7 | 7.7 |
Weighted- Average Exercise Price Exercised Forfeited or expired | 30.81 | 16.81 |
Weighted- Average Exercise Price Ending | 22.96 | 26.35 |
Weighted- Average Exercise Price Vested or expected to vest | 26.35 | |
Weighted- Average Exercise Price Exercisable Exercised Forfeited or expired | $ 26.6 | |
Weighted- Average Remaining Contractual Term Ending | 2 years 1 month 28 days | |
Weighted- Average Remaining Contractual Term Vested or expected to vest | 2 years 1 month 28 days | |
Weighted- Average Remaining Contractual Term | 2 years 4 months 9 days | |
Aggregate Intrinsic Value Ending | $ 0.2 | |
Aggregate Intrinsic Value Vested or expected to vest | 0.2 | |
Aggregate Intrinsic Value Exercisable | $ 0.2 | |
Common Class A [Member] | Two Thousand And Nineteen Lions Gate Plan [Member] | Restricted Stock And Restricted Stock Unit [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted- Average Grant- Date Fair Value Beginning | 10.95 | |
Weighted- Average Grant- Date Fair Value Granted | 8.87 | |
Weighted- Average Grant- Date Fair Value Vested | 10.89 | |
Weighted- Average Grant- Date Fair Value Forfeited | 0 | |
Weighted- Average Grant- Date Fair Value Ending | $ 9.27 | $ 10.95 |
Beginning | 0 | |
Granted | 100,000 | |
Vested | 0 | |
Forfeited | 0 | |
Ending | 100,000 | 0 |
Common Class B [Member] | Restricted Stock And Restricted Stock Unit [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted- Average Grant- Date Fair Value Beginning | $ 9.9 | $ 11.87 |
Weighted- Average Grant- Date Fair Value Granted | 9.08 | |
Weighted- Average Grant- Date Fair Value Vested | 11.89 | |
Weighted- Average Grant- Date Fair Value Forfeited | 10.22 | |
Weighted- Average Grant- Date Fair Value Ending | $ 9.9 | |
Beginning | 10.8 | 5.5 |
Granted | 9.3 | |
Vested | (3.8) | |
Forfeited | (0.2) | |
Ending | 10.8 | |
Common Class B [Member] | Two Thousand And Nineteen Lions Gate Plan [Member] | Stock Option And Share Appreciation Rights [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of Shares Beginning | 19,100,000 | 20,500,000 |
Number of Shares Granted | 300,000 | 300,000 |
Number of Shares Exercised | (100,000) | (400,000) |
Number of Shares Forfeited or expired | (2,100,000) | (1,300,000) |
Number of Shares Ending | 17,100,000 | 19,100,000 |
Number of Shares Vested or expected to vest | 19,000,000 | |
Number of Shares Exercisable | 15,200,000 | |
Weighted- Average Exercise Price Beginning | $ 15.5 | $ 15.58 |
Weighted- Average Exercise Price Granted | 8.88 | 8.97 |
Weighted- Average Exercise Price Exercised | 7.11 | 10.1 |
Weighted- Average Exercise Price Exercised Forfeited or expired | 27.72 | 16.86 |
Weighted- Average Exercise Price Ending | 13.92 | 15.5 |
Weighted- Average Exercise Price Vested or expected to vest | 15.52 | |
Weighted- Average Exercise Price Exercisable Exercised Forfeited or expired | $ 17.09 | |
Weighted- Average Remaining Contractual Term Ending | 5 years 5 months 8 days | |
Weighted- Average Remaining Contractual Term Vested or expected to vest | 5 years 5 months 4 days | |
Weighted- Average Remaining Contractual Term | 4 years 10 months 20 days | |
Aggregate Intrinsic Value Ending | $ 11.6 | |
Aggregate Intrinsic Value Vested or expected to vest | 11.5 | |
Aggregate Intrinsic Value Exercisable | $ 5.1 | |
Common Class B [Member] | Two Thousand And Nineteen Lions Gate Plan [Member] | Restricted Stock And Restricted Stock Unit [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted- Average Grant- Date Fair Value Beginning | 9.9 | |
Weighted- Average Grant- Date Fair Value Granted | 8.2 | |
Weighted- Average Grant- Date Fair Value Vested | 9.33 | |
Weighted- Average Grant- Date Fair Value Forfeited | 8.72 | |
Weighted- Average Grant- Date Fair Value Ending | $ 8.69 | $ 9.9 |
Beginning | 10,800,000 | |
Granted | 6,200,000 | |
Vested | (6,900,000) | |
Forfeited | (300,000) | |
Ending | 9,800,000 | 10,800,000 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary Of Stock Option, And Share Appreciation Rights (Parenthetical) (Detail) - Maximum [Member] - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - shares shares in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share based compensation options exercised during the period | 0.1 | |
Stock Option And Share Appreciation Rights [Member] | Common Class A [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share based compensation options exercised during the period | 0.1 |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary Of Weighted Average Grant-Date Fair Value Of Options Granted (Parenthetical) (Detail) - Two Thousand And Nineteen Lions Gate Plan [Member] - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share based compensation by share based award aggregate intrinsic value of stock options exercised during the period | $ 1.1 | $ 2.1 | $ 0.5 |
Maximum [Member] | Stock options [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares paid for tax witholding for share based compensation | 0.1 | 0.1 | 0.1 |
Share-Based Compensation - Su_6
Share-Based Compensation - Summary Of Restricted Share Unit And Restricted Stock Activity (Detail) - Restricted Stock And Restricted Stock Unit [Member] - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | 12 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Common Class A [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Weighted- Average Grant- Date Fair Value Beginning | $ 11.51 |
Weighted- Average Grant- Date Fair Value Granted | 10.27 |
Weighted- Average Grant- Date Fair Value Vested | 11.19 |
Weighted- Average Grant- Date Fair Value Forfeited | 30.56 |
Weighted- Average Grant- Date Fair Value Ending | 10.95 |
Common Class B [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Weighted- Average Grant- Date Fair Value Beginning | 11.87 |
Weighted- Average Grant- Date Fair Value Granted | 9.08 |
Weighted- Average Grant- Date Fair Value Vested | 11.89 |
Weighted- Average Grant- Date Fair Value Forfeited | 10.22 |
Weighted- Average Grant- Date Fair Value Ending | $ 9.9 |
Beginning | shares | 5.5 |
Existing Granted | shares | 9.3 |
Existing Vested | shares | (3.8) |
Existing Forfeited | shares | (0.2) |
Ending | shares | 10.8 |
Share-Based Compensation - Su_7
Share-Based Compensation - Summary Of Restricted Share Unit And Restricted Stock Activity (Parenthetical) (Detail) - Maximum [Member] - Restricted Stock And Restricted Stock Unit [Member] - Two Thousand And Nineteen Lions Gate Plan [Member] - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share based compensation by share based award equity instruments other than options granted during the period | 0.1 | ||
Share based compensation by share based award equity instruments other than options vested during the period | $ 40 | $ 51 | $ 26 |
Share-Based Compensation - Su_8
Share-Based Compensation - Summary Of Total Remaining Unrecognized Compensation Cost (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] $ in Millions | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Total Unrecognized Compensation Cost | |
Stock Options | $ 4.9 |
Restricted Share Units and Restricted Stock | 44.7 |
Total | $ 49.6 |
Stock options [Member] | |
Total Unrecognized Compensation Cost | |
Weighted Average Remaining Years | 7 months 6 days |
Restricted Stock And Restricted Stock Unit [Member] | |
Total Unrecognized Compensation Cost | |
Weighted Average Remaining Years | 1 year |
Share-Based Compensation - Su_9
Share-Based Compensation - Summary Of Total Remaining Unrecognized Compensation Cost (Parenthetical) (Detail) - shares shares in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Restricted Stock And Restricted Stock Unit [Member] | Two Thousand And Nineteen Lions Gate Plan [Member] | STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share based payment arrangement shares with held for tax obligation | 1.5 | 1.8 | 0.7 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
May 07, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Two Thousand And Nineteen Lions Gate Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Income tax expense benefit associated with share based compensation | $ 8.7 | $ 12.7 | $ 7.7 | |
Lions Gate Exchange Programmer [Member] | Common Class A [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation by share based award stock options and share appreciation rights exchanged | 1.1 | |||
Share based compensation by share based award new stock options and share appreciation rights | 0.1 | |||
Share based compensation by share based award stock options and share appreciation rights exchanges exercise price | $ 7.7 | |||
Lions Gate Exchange Programmer [Member] | Common Class B [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation by share based award stock options and share appreciation rights exchanged | 3.3 | |||
Share based compensation by share based award new stock options and share appreciation rights | 0.7 | |||
Share based compensation by share based award stock options and share appreciation rights exchanges exercise price | $ 7.13 | |||
Other Share Based Compensation [Member] | Two Thousand And Nineteen Lions Gate Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation by share based award shares granted during the period value | $ 2.3 | $ 2.3 | $ 2.3 | |
Share based compensation by share based award shares granted during the period shares | 0.3 | 0.1 | 0.3 | |
Maximum [Member] | Stock options [Member] | Two Thousand And Nineteen Lions Gate Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation by share based award period of service | 4 years | |||
Share based compensation by share based expiration period | 10 years | |||
Maximum [Member] | Restricted Stock And Restricted Share Units [Member] | Two Thousand And Nineteen Lions Gate Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation by share based award period of service | 3 years | |||
Minimum [Member] | Stock options [Member] | Two Thousand And Nineteen Lions Gate Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation by share based award period of service | 1 year | |||
Share based compensation by share based expiration period | 7 years | |||
Minimum [Member] | Restricted Stock And Restricted Share Units [Member] | Two Thousand And Nineteen Lions Gate Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation by share based award period of service | 1 year |
Share-Based Compensation - S_10
Share-Based Compensation - Summary Of Weighted Average Grant-Date Fair Value Of Options Granted (Detail) - Two Thousand And Nineteen Lions Gate Plan [Member] - Share-Based Payment Arrangement, Option [Member] - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Weighted average fair value of grants | $ 4.56 | $ 6.16 | $ 3.06 |
Weighted average assumptions: | |||
Risk-free interest rate minimum | 2.80% | 1.10% | 0.20% |
Risk-free interest rate maximum | 3.70% | 2.45% | 0.90% |
Expected volatility for options | 44% | ||
Expected volatility for options minimum | 42% | 37% | |
Expected volatility for options maximum | 44% | 42% | |
Expected dividend yield | 0% | 0% | 0% |
Maximum [Member] | |||
Weighted average assumptions: | |||
Expected option lives (in years) | 7 years | 7 years | 7 years |
Minimum [Member] | |||
Weighted average assumptions: | |||
Expected option lives (in years) | 3 years 6 months | 3 years 3 months 18 days | 2 years 6 months |
Leases - Summary Of Components
Leases - Summary Of Components Of Lease Cost (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Lessee Operating Leases [Line Items] | |||
Operating lease cost | $ 35.3 | $ 42.1 | $ 34.6 |
Short-term lease cost | 145 | 233.1 | 129.5 |
Variable lease cost | 2.8 | 1.3 | 2.5 |
Total lease cost | $ 183.1 | $ 276.5 | $ 166.6 |
Leases - Summary Of Supplementa
Leases - Summary Of Supplemental Balance Sheet Information Related To Leases (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Lessee Operating Leases [Line Items] | |||
Right-of-use assets | $ 318.8 | $ 116.8 | $ 126 |
Lease liabilities (current) | 37.7 | 31.4 | |
Lease liabilities (non-current) | 96.4 | 112.7 | |
Operating Leases | $ 134.1 | $ 144.1 |
Leases - Summary Of Weighted Av
Leases - Summary Of Weighted Average In Operating Leases (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Mar. 31, 2023 | Mar. 31, 2022 |
Lessee Operating Leases [Line Items] | ||
Weighted average remaining lease term (in years) | 4 years 3 months 18 days | 3 years 7 months 6 days |
Weighted average discount rate | 3.65% | 2.42% |
Leases - Summary Of Expected Fu
Leases - Summary Of Expected Future Payments Relating To The Company's Lease Liabilities (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Mar. 31, 2023 | Mar. 31, 2022 |
Lessee Operating Leases [Line Items] | ||
2024 | $ 41.7 | |
2025 | 32.4 | |
2026 | 24.6 | |
2027 | 17.1 | |
2028 | 16.2 | |
Thereafter | 13.3 | |
Total lease payments | 145.3 | |
Less imputed interest | (11.2) | |
Total | $ 134.1 | $ 144.1 |
Leases - Additional Information
Leases - Additional Information (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] $ in Millions | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Lessee Operating Leases [Line Items] | |
Lessee, Operating Lease, Remaining Lease Term | 7 years |
Lessee, Operating Lease, Term of Contract | 10 years 6 months |
Lessee, Operating Lease, Option to Terminate | seven |
Lessee, Operating Lease, Option to Extend | 10 |
Operating Lease, Payments | $ 254.1 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary Of Assets And Liabilities Required To Be Carried At Fair Value On A Recurring Basis (Detail) - Fair Value, Recurring [Member] - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Equity securities with a readily determinable fair value [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative Asset | $ 0.5 | ||
Equity securities with a readily determinable fair value [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative Asset | 0.5 | ||
Forward exchange contracts [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative Asset | $ 0 | $ 2.9 | 3.5 |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative Liability | (2.1) | (0.1) | (2.8) |
Forward exchange contracts [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative Asset | 0 | 2.9 | 3.5 |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative Liability | (2.1) | (0.1) | (2.8) |
Interest rate swaps [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative Asset | 34.2 | 41.1 | 120.1 |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative Liability | 28.6 | ||
Interest rate swaps [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Derivative Asset | $ 34.2 | $ 41.1 | 120.1 |
Liabilities, Fair Value Disclosure [Abstract] | |||
Derivative Liability | $ 28.6 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary Of Assets And Liabilities Required To Be Carried At Fair Value On A Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Mar. 31, 2022 |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amount Excluding Financing Component Of Interest Rate Swaps | $ 0 | $ 88.1 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary Of Carrying Values And Fair Values Of The Company (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Term Loan A [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 404.1 | $ 424.2 | $ 631.9 |
Fair Value | 403 | 415.4 | 625.7 |
Term Loan B [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 819.5 | 827.2 | 837.5 |
Fair Value | 814.1 | 817.1 | 828.3 |
Production Loans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 1,275.4 | 1,346.1 | 963.7 |
Fair Value | 1,279.2 | 1,349.9 | 966.3 |
Production Tax Credit Facility [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 248.4 | 229.4 | 221.1 |
Fair Value | 250 | 231.8 | 224 |
Backlog Facility and Other [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 173.9 | 223.7 | |
Fair Value | 175 | 226 | |
IP Credit Facility [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 114.9 | 140.8 | 120.6 |
Fair Value | $ 117.3 | $ 143.8 | 123.5 |
Financing Component Of Interest Rate Swaps [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value | 134 | ||
Fair Value | $ 122.9 |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary Of Carrying Values And Fair Values Of The Company (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Mar. 31, 2022 |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Reduction Of Assets Under Master Netting Arrangements | $ 0 | $ 88.1 |
Income Taxes - Summary Of Compo
Income Taxes - Summary Of Components Of Pretax Income (Loss) (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Income Before Income Tax Domestic And Foreign [Line Items] | |||
United States | $ (33.5) | $ 20.4 | $ (26.4) |
International | 38.9 | (9.2) | 8.5 |
Pre Income Tax Expense Benefit | $ 5.4 | $ 11.2 | $ (17.9) |
Income Taxes - Summary Of Compa
Income Taxes - Summary Of Company's Current And Deferred Income Tax Provision (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Current provision: | |||||
Federal | $ 3.1 | $ 5.7 | $ 3.8 | ||
States | (0.5) | 3.2 | 8.1 | ||
International | 10 | 7.2 | 3.5 | ||
Total current provision | 12.6 | 16.1 | 15.4 | ||
Deferred provision: | |||||
Federal | 0.5 | 0.9 | 1 | ||
States | (0.1) | 0.3 | 0.9 | ||
International | 1.3 | 0 | 0 | ||
Total deferred provision | 1.7 | 1.2 | 1.9 | ||
Total provision for income taxes | $ 16.7 | $ 5.2 | $ 14.3 | $ 17.3 | $ 17.3 |
Income Taxes - Summary Of Diffe
Income Taxes - Summary Of Differences Between Income Tax Rates And The Income Tax Provision (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Differences Between Income Taxes Expected At US Statutory Income Tax Rates And The Income Tax Provision [Line Items] | |||||
Income taxes computed at Federal statutory rate | $ 1.1 | $ 2.4 | $ (3.7) | ||
Foreign operations subject to different income tax rates | 5 | 7.1 | 5.1 | ||
State income tax | (0.6) | 3.5 | 9 | ||
Remeasurements of originating deferred tax assets and liabilities | (4.7) | (9.2) | 9.9 | ||
Permanent differences | 2.1 | 0 | (1.1) | ||
Nondeductible share-based compensation | 1.8 | (2.7) | 1.6 | ||
Nondeductible officers compensation | 9.8 | 5.1 | 7.1 | ||
Non-controlling interest in partnerships | 1.8 | 3.7 | 3.3 | ||
Foreign derived intangible income | (1.4) | 0 | (5.9) | ||
Other | 1.7 | 1.5 | 0.5 | ||
Changes in valuation allowance | (2.3) | 5.9 | (8.5) | ||
Total provision for income taxes | $ 16.7 | $ 5.2 | $ 14.3 | $ 17.3 | $ 17.3 |
Income Taxes - Summary Of The G
Income Taxes - Summary Of The Gross Unrecognized Tax Benefits, Exclusive Of Interest And Penalties (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Gross unrecognized tax benefits, Beginning Balance | $ 1 | $ 0.6 | $ 0.6 |
Increases related to current year tax position | 0 | 0 | 0 |
Increases related to prior year tax positions | 0 | 0.4 | 0 |
Decreases related to prior year tax positions | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Lapse in statute of limitations | (0.7) | 0 | 0 |
Gross unrecognized tax benefits, Ending Balance | $ 0.3 | $ 1 | $ 0.6 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] $ in Millions | Mar. 31, 2023 USD ($) |
Tax Credit Carryforward, Amount | $ 7.2 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0.4 |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards | 27 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards | $ 53.9 |
Restructuring and Other - Summa
Restructuring and Other - Summary of Restructuring and Other and Other Unusual Charges or Benefits (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |||||||
Total Restructuring and Other | [1] | $ 61.5 | $ 20.6 | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||||
Other impairments | 0 | [2] | 5.9 | [2] | $ 5.9 | [3] | $ 0 | [3] | $ 0 | [3] | |
Cash | 24.3 | [4] | 9.2 | [4] | 10.8 | [5] | 2.8 | [5] | 12.4 | [5] | |
Accelerated vesting on equity awards (see Note 13) | 7.3 | [4] | 2.1 | [4] | 4.2 | [5] | 0 | [5] | 3.5 | [5] | |
Total severance costs | 31.6 | 11.3 | 15 | 2.8 | 15.9 | ||||||
COVID-19 related charges included in restructuring and other | 0 | 0.1 | 0.1 | [6] | 1 | [6] | 2.4 | [6] | |||
Transaction and other costs | 29.9 | [7] | 3.3 | [7] | 6.2 | [8] | 2.5 | [8] | 2.8 | [8] | |
Total Restructuring and Other | 61.5 | 20.6 | 27.2 | [9] | 6.3 | [9] | 21.1 | [9] | |||
Content charges included in direct operating expense | 1.1 | [10] | 7.7 | [10] | 8.1 | [11] | 0 | [11] | 0 | [11] | |
COVID-19 related charges (benefit) included in Direct operating expense | (0.5) | [12] | (6.2) | [12] | (8.9) | [13] | (5.2) | [13] | 34.2 | [13] | |
COVID-19 related charges (benefit) included in Distribution and marketing expense | [13] | 0 | 0 | 16.7 | |||||||
Charges related to Russia's invasion of Ukraine included in direct operating expense | [14] | 0 | 5.9 | 0 | |||||||
Total restructuring and other and other unusual charges not included in restructuring and other | $ 62.1 | $ 22.1 | $ 26.4 | $ 7 | $ 72 | ||||||
[1]Restructuring and other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, when applicable. See Note 13 for further information on restructuring and other.[2]Amounts in the nine months ended December 31, 2022 include an impairment of an operating lease right-of-use asset related to the Studio Business and corporate facilities amounting to $5.8 million associated with a portion of a facility lease that will no longer be utilized by the Company. The impairment reflects a decline in market conditions since the inception of the lease impacting potential sublease opportunities, and represents the difference between the estimated fair value, which was determined based on the expected discounted future cash flows of the lease asset, and the carrying value.[3]Amounts in the fiscal year ended March 31, 2023 include impairment of an operating lease right-of-use asset related to the Studio Business and corporate facilities amounting to $5.8 million associated with a portion of a facility lease that will no longer be utilized by the Company. The impairment reflects a decline in market conditions since the inception of the lease impacting potential sublease opportunities, and represents the difference between the estimated fair value, which was determined based on the expected discounted future cash flows of the lease asset, and the carrying value.[4]Severance costs were primarily related to restructuring activities and other cost-saving initiatives. In the nine months ended December 31, 2023, amounts were due to restructuring activities including integration of the acquisition of eOne, and our Motion Picture and Television Production segments.[5]Severance costs in the fiscal years ended March 31, 2023, 2022 and 2021 were primarily related to restructuring activities and other cost-saving initiatives.[6]Amounts represent certain incremental general and administrative costs associated with the COVID-19 global pandemic, such as costs related to transitioning the Company to a remote-work environment, costs associated with return-to-office safety protocols, and other incremental general and administrative costs associated with the COVID-19 global pandemic.[7]Transaction and other costs in the nine months ended December 31, 2023 includes approximately $16.6 million of a loss associated with a theft at a production of a 51% owned consolidated entity. The Company expects to recover a portion of this amount under its insurance coverage and from the noncontrolling interest holders of this entity. In addition, amounts in the nine months ended December 31, 2023 and 2022 reflect transaction, integration and legal costs associated with certain strategic transactions, and restructuring activities and also include costs and benefits associated with certain legal matters.[8]Transaction and other costs in the fiscal years ended March 31, 2023, 2022 and 2021 reflect transaction, integration and legal costs associated with certain strategic transactions, and restructuring activities and also include costs and benefits associated with legal matters.[9]Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable. See Note 15 for further information on restructuring and other.[10]In the nine months ended December 31, 2022, the amounts represent development costs written off as a result of changes in strategy across the Company’s theatrical slate in connection with certain management changes and changes in the theatrical marketplace in the Motion Picture segment. These charges are excluded from segment results and included in amortization of investment in film and television programs in direct operating expense on the combined statements of operations.[11]Amounts represent development costs of $7.2 million written off as a result of changes in strategy across the Company’s theatrical slate in connection with certain management changes and changes in the theatrical marketplace in the Motion Picture segment, with the remaining amount reflecting other corporate development costs written off. These charges are excluded from segment results and included in amortization of investment in film and television programs in direct operating expense on the combined statement of operations.[12]Amounts include incremental costs, if any, incurred due to circumstances associated with the COVID-19 global pandemic, net of insurance recoveries of $0.6 million in the nine months ended December 31, 2023 (nine months ended December 31, 2022—insurance recoveries of $6.9 million). In the nine months ended December 31, 2023 and 2022, insurance and bad debt recoveries exceeded the incremental costs expensed in the period, resulting in a net benefit included in direct operating expense. The Company is in the process of seeking additional insurance recovery for some of these costs. The ultimate amount of insurance recovery cannot be estimated at this time.[13]Amounts reflected in direct operating expense include incremental costs associated with the pausing and restarting of productions including paying/hiring certain cast and crew, maintaining idle facilities and equipment costs resulting from circumstances associated with the COVID-19 global pandemic, net of insurance recoveries of $8.4 million, $15.6 million and immaterial amounts in fiscal 2023, 2022 and 2021, respectively. In fiscal 2021, these charges also included film impairment due to changes in performance expectations resulting from circumstances associated with the COVID-19 global pandemic. In fiscal years 2023 and 2022, insurance and bad debt recoveries exceeded the incremental costs expensed in the year, resulting in a net benefit included in direct operating expense. The costs included in distribution and marketing expense primarily consist of contractual marketing spends for film releases and events that have been canceled or delayed and will provide no economic benefit. The Company is in the process of seeking additional insurance recovery for some of these costs. The ultimate amount of insurance recovery cannot be estimated at this time.[14]Amounts represent charges related to Russia’s invasion of Ukraine, primarily related to bad debt reserves for accounts receivable from customers in Russia, included in direct operating expense in the combined statements of operations. |
Restructuring and Other - Sum_2
Restructuring and Other - Summary of Restructuring and Other and Other Unusual Charges or Benefits (Parenthetical) (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Lease, Impairment Loss | $ 5.8 | $ 5.8 | ||
Development Costs, Period Cost | 7.2 | |||
Equipment Cost For Insurance Recoveries Amount | $ 0.6 | $ 6.9 | $ 8.4 | $ 15.6 |
Fifty One Percent Consolidated Entity [Member] | ||||
Equity method investment ownership percentage | 51% | |||
Loss associated with theft | $ 16.6 |
Restructuring and Other - Sum_3
Restructuring and Other - Summary of Changes in the Restructuring and Other Severance Liability (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||||||
Beginning balance | $ 3.7 | $ 0.8 | $ 0.8 | $ 3.9 | $ 8.1 | |||||
Accruals | 24.3 | 9.2 | 10.8 | 2.8 | 12.4 | |||||
Severance payments | (5.4) | (3.7) | (7.9) | (5.9) | (16.6) | |||||
Ending Balance | $ 22.6 | [1] | $ 6.3 | [1] | $ 3.7 | [2] | $ 0.8 | [2] | $ 3.9 | [2] |
[1]As of December 31, 2023, the remaining severance liability of approximately $22.6 million is expected to be paid in the next 12 months.[2]As of March 31, 2023, the remaining severance liability of approximately $3.7 million is expected to be paid in the next 12 months. |
Restructuring and Other - Sum_4
Restructuring and Other - Summary of Changes in the Restructuring and Other Severance Liability (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||
Severance Liability | $ 22.6 | $ 3.7 |
Segment Information - Summary O
Segment Information - Summary Of Segment Reporting Information By Segment (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 2,106.3 | $ 2,260.2 | $ 3,083.8 | $ 2,716.3 | $ 1,912.9 |
Gross Contribution | 454.9 | 385.5 | 571.6 | 480.1 | 528.1 |
Segment general and administration | 123.7 | 98.2 | 161.7 | 133.3 | 148.9 |
Segment profit | 331.2 | 287.3 | 409.9 | 346.8 | 379.2 |
Motion Picture [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,245.6 | 791.6 | 1,323.7 | 1,185.3 | 1,081.1 |
Gross Contribution | 320.3 | 248.9 | 386.3 | 356 | 401.8 |
Segment general and administration | 83.2 | 66.2 | 109.8 | 93.1 | 106.2 |
Segment profit | 237.1 | 182.7 | 276.5 | 262.9 | 295.6 |
Television Production [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 860.7 | 1,468.6 | 1,760.1 | 1,531 | 831.8 |
Gross Contribution | 134.6 | 136.6 | 185.3 | 124.1 | 126.3 |
Segment general and administration | 40.5 | 32 | 51.9 | 40.2 | 42.7 |
Segment profit | $ 94.1 | $ 104.6 | $ 133.4 | $ 83.9 | $ 83.6 |
Segment Information - Summary_2
Segment Information - Summary Of Reconciliation Of Total Segment Profit To The Company's Income (loss) (Detail) - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Corporate general and administrative expenses | [1] | $ (76,200,000) | $ (57,700,000) | |||||||||||
Adjusted depreciation and amortization | [2] | (7,100,000) | (8,900,000) | |||||||||||
Restructuring and other | [3] | (61,500,000) | (20,600,000) | |||||||||||
COVID-19 related benefit (charges) included in direct operating expense and distribution and marketing expense | [4] | 500,000 | 6,200,000 | |||||||||||
Content charges | [5] | (1,100,000) | (7,700,000) | |||||||||||
Purchase accounting and related adjustments | [6] | (19,400,000) | (51,400,000) | |||||||||||
Loss from operations | $ (5,000) | $ (3,404,845) | $ (540,513) | $ (24,446,982) | $ (1,628,308) | |||||||||
Loss on extinguishment of debt | 0 | 1,300,000 | ||||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||||
Company's total segment profit | 331,200,000 | 287,300,000 | $ 409,900,000 | $ 346,800,000 | $ 379,200,000 | |||||||||
Corporate general and administrative expenses | (76,200,000) | (57,700,000) | (100,900,000) | [7] | (80,000,000) | [7] | (91,400,000) | [7] | ||||||
Adjusted depreciation and amortization | (7,100,000) | (8,900,000) | (12,200,000) | [8] | (12,400,000) | [8] | (13,400,000) | [8] | ||||||
Restructuring and other | (61,500,000) | (20,600,000) | (27,200,000) | [9] | (6,300,000) | [9] | (21,100,000) | [9] | ||||||
COVID-19 related benefit (charges) included in direct operating expense and distribution and marketing expense | [10] | 8,900,000 | 5,200,000 | (50,900,000) | ||||||||||
Content charges | [11] | (8,100,000) | 0 | 0 | ||||||||||
Charges related to Russia's invasion of Ukraine | [12] | 0 | (5,900,000) | 0 | ||||||||||
Adjusted share-based compensation expense | [13] | (46,300,000) | (40,100,000) | (69,200,000) | (70,200,000) | (54,500,000) | ||||||||
Purchase accounting and related adjustments | (19,400,000) | (51,400,000) | (61,600,000) | [14] | (65,300,000) | [14] | (52,000,000) | [14] | ||||||
Loss from operations | 120,100,000 | 107,100,000 | 139,600,000 | 111,900,000 | 95,900,000 | |||||||||
Interest expense | (157,100,000) | (117,800,000) | (162,600,000) | (115,000,000) | (109,700,000) | |||||||||
Interest and other income | 6,900,000 | 4,900,000 | 6,400,000 | 28,000,000 | 6,100,000 | |||||||||
Other expense | (14,300,000) | (17,200,000) | (21,200,000) | (8,600,000) | (4,700,000) | |||||||||
Loss on extinguishment of debt | 0 | (1,300,000) | (1,300,000) | (3,400,000) | 0 | |||||||||
Gain on investments | 2,700,000 | 42,100,000 | 44,000,000 | 1,300,000 | 600,000 | |||||||||
Equity interests income (loss) | 5,700,000 | 800,000 | 500,000 | (3,000,000) | (6,100,000) | |||||||||
Income (loss) before income taxes | $ (36,000,000) | $ 18,600,000 | $ 5,400,000 | $ 11,200,000 | $ (17,900,000) | |||||||||
[1]Corporate general and administrative expenses reflect the allocations of certain general and administrative expenses from Lionsgate related to certain corporate and shared service functions historically provided by Lionsgate, including, but not limited to, executive oversight, accounting, tax, legal, human resources, occupancy, and other shared services (see Note 1 and Note 18 for further information). Amount excludes allocation of share-based compensation expense discussed below. The costs included in corporate general and administrative expenses represent certain corporate executive expense (such as salaries and wages for the office of the Chief Executive Officer, Chief Financial Officer, General Counsel and other corporate officers), investor relations costs, costs of maintaining corporate facilities, and other unallocated common administrative support functions, including corporate accounting, finance and financial reporting, internal and external audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense.[2]Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed combined statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below:[3]Restructuring and other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, when applicable. See Note 13 for further information on restructuring and other.[4]Amounts represent the incremental costs included in direct operating expense resulting from circumstances associated with the COVID-19 global pandemic, net of insurance recoveries. During the nine months ended December 31, 2023 and 2022, the Company incurred a net benefit in direct operating expense due to insurance and bad debt recoveries in excess of the incremental costs expensed in the periods (see Note 13). These charges (benefits) are excluded from segment operating results.[5]Content charges represent certain charges included in direct operating expense in the combined statements of operations, and excluded from segment operating results (see Note 13 for further information).[6]Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements:[7]Corporate general and administrative expenses reflect the allocations of certain general and administrative expenses from Lionsgate related to certain corporate and shared service functions historically provided by Lionsgate, including, but not limited to, executive oversight, accounting, tax, legal, human resources, occupancy, and other shared services (see Note 1 and Note 20 for further information). Amount excludes allocation of share-based compensation expense discussed below. The costs included in corporate general and administrative expenses represent certain corporate executive expense (such as salaries and wages for the office of the Chief Executive Officer, Chief Financial Officer, General Counsel and other corporate officers), investor relations costs, costs of maintaining corporate facilities, and other unallocated common administrative support functions, including corporate accounting, finance and financial reporting, internal and external audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense.[8]Adjusted depreciation and amortization represents depreciation and amortization as presented on the combined statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Depreciation and amortization $ 17.9 $ 18.1 $ 17.2 Less: Amount included in purchase accounting and related adjustments (5.7 ) (5.7 ) (3.8 ) Adjusted depreciation and amortization $ 12.2 $ 12.4 $ 13.4[9]Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable. See Note 15 for further information on restructuring and other.[10]Amounts represent the incremental costs included in direct operating expense and distribution and marketing expense resulting from circumstances associated with the COVID-19 global pandemic, net of insurance recoveries. During the fiscal years ended March 31, 2023 and 2022, the Company has incurred a net benefit in direct operating expense due to insurance and bad debt recoveries in excess of the incremental cost expensed in the period. See Note 15 for further information. These charges (benefits) are excluded from segment operating results.[11]Content charges represent certain charges included in direct operating expense in the combined statements of operations, and excluded from segment operating results (see Note 15 for further information).[12]Amounts represent charges related to Russia’s invasion of Ukraine, primarily related to bad debt reserves for accounts receivable from customers in Russia, included in direct operating expense in the combined statements of operations, and excluded from segment operating results.[13]The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Total share-based compensation expense(i) $ 73.4 $ 70.2 $ 58.0 Less: Amount included in restructuring and other(ii) (4.2 ) — (3.5 ) Adjusted share-based compensation $ 69.2 $ 70.2 $ 54.5 (i) Total share-based compensation expense in the years ended March 31, 2023, 2022 and 2021 includes $26.7 million, $19.6 million and $18.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense. (ii) Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements.[14]Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. The following sets forth the amounts included in each line item in the financial statements: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 0.7 $ 0.4 $ 1.0 General and administrative expense(i) 55.2 59.2 47.2 Depreciation and amortization 5.7 5.7 3.8 $ 61.6 $ 65.3 $ 52.0 F-79 Table of Contents (i) These adjustments include the non-cash charge for the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the non-cash charge for the amortization of the recoupable portion of the purchase price and the expense associated with the noncontrolling equity interests in the distributable earnings related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense, as presented in the table below. The noncontrolling equity interest in the distributable earnings of 3 Arts Entertainment are reflected in as an expense rather than noncontrolling interest in the combined statements of operations due to the relationship to continued employment. Year Ended March 31, 2023 2022 2021 (Amounts in millions) Amortization of recoupable portion of the purchase price $ 7.7 $ 7.7 $ 7.7 Noncontrolling interest discount amortization 13.2 22.7 22.7 Noncontrolling equity interest in distributable earnings 34.3 28.8 16.8 $ 55.2 $ 59.2 $ 47.2 See Note 12 for revenues by media or product line as broken down by segment for the fiscal years ended March 31, 2023, 2022 and 2021. |
Segment Information - Summary_3
Segment Information - Summary Of Adjusted Depreciation And Amortization Reporting Segment (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |||||
Adjusted depreciation and amortization | [1] | $ 7.1 | $ 8.9 | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||
Depreciation and amortization | 11.1 | 13.2 | $ 17.9 | $ 18.1 | $ 17.2 | ||||
Less: Amount included in purchase accounting and related adjustments | (4) | (4.3) | (5.7) | (5.7) | (3.8) | ||||
Adjusted depreciation and amortization | $ 7.1 | $ 8.9 | $ 12.2 | [2] | $ 12.4 | [2] | $ 13.4 | [2] | |
[1]Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed combined statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below:[2]Adjusted depreciation and amortization represents depreciation and amortization as presented on the combined statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Depreciation and amortization $ 17.9 $ 18.1 $ 17.2 Less: Amount included in purchase accounting and related adjustments (5.7 ) (5.7 ) (3.8 ) Adjusted depreciation and amortization $ 12.2 $ 12.4 $ 13.4 |
Segment Information - Summary_4
Segment Information - Summary Of Reconciles Total Share Based Compensation Expense (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |||||
Total share-based compensation expense | [1] | $ 53.6 | $ 42.2 | ||||||
Amount included in restructuring and other | [2] | (7.3) | (2.1) | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||
Total share-based compensation expense | 53.6 | 42.2 | $ 73.4 | [3] | $ 70.2 | [3] | $ 58 | [3] | |
Amount included in restructuring and other | [4] | (4.2) | 0 | (3.5) | |||||
Adjusted share-based compensation | [5] | $ 46.3 | $ 40.1 | $ 69.2 | $ 70.2 | $ 54.5 | |||
[1]Total share-based compensation expense in the nine months ended December 31, 2023 and 2022 includes $12.1 million and $17.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense.[2]Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of vesting schedules for equity awards pursuant to certain severance arrangements.[3]Total share-based compensation expense in the years ended March 31, 2023, 2022 and 2021 includes $26.7 million, $19.6 million and $18.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense.[4]Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements.[5]The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Total share-based compensation expense(i) $ 73.4 $ 70.2 $ 58.0 Less: Amount included in restructuring and other(ii) (4.2 ) — (3.5 ) Adjusted share-based compensation $ 69.2 $ 70.2 $ 54.5 (i) Total share-based compensation expense in the years ended March 31, 2023, 2022 and 2021 includes $26.7 million, $19.6 million and $18.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense. (ii) Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. |
Segment Information - Summary_5
Segment Information - Summary Of Reconciles Total Share Based Compensation Expense (Parentheticals) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Total share-based compensation expense | $ 12.1 | $ 17 | $ 26.7 | $ 19.6 | $ 18 |
Segment Information - Summary_6
Segment Information - Summary Of Purchase Accounting And Related Adjustments (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |||||||
Purchase accounting and related adjustments | [1] | $ 19.4 | $ 51.4 | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||||
Direct operating | 0 | 0.7 | $ 0.7 | $ 0.4 | $ 1 | ||||||
General and administrative expense | 15.4 | [2] | 46.4 | [2] | 55.2 | [3] | 59.2 | [3] | 47.2 | [3] | |
Depreciation and amortization | 4 | 4.3 | 5.7 | 5.7 | 3.8 | ||||||
Purchase accounting and related adjustments | $ 19.4 | $ 51.4 | $ 61.6 | [4] | $ 65.3 | [4] | $ 52 | [4] | |||
[1]Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements:[2]These adjustments include the non-cash charge for the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the non-cash charge for the amortization of the recoupable portion of the purchase price and the expense associated with the noncontrolling equity interests in the distributable earnings related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense, as presented in the table below. The noncontrolling equity interest in the distributable earnings of 3 Arts Entertainment are reflected as an expense rather than noncontrolling interest in the combined statements of operations due to the relationship to continued employment.[3]These adjustments include the non-cash charge for the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the non-cash charge for the amortization of the recoupable portion of the purchase price and the expense associated with the noncontrolling equity interests in the distributable earnings related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense, as presented in the table below. The noncontrolling equity interest in the distributable earnings of 3 Arts Entertainment are reflected in as an expense rather than noncontrolling interest in the combined statements of operations due to the relationship to continued employment.[4]Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. The following sets forth the amounts included in each line item in the financial statements: Year Ended March 31, 2023 2022 2021 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 0.7 $ 0.4 $ 1.0 General and administrative expense(i) 55.2 59.2 47.2 Depreciation and amortization 5.7 5.7 3.8 $ 61.6 $ 65.3 $ 52.0 F-79 Table of Contents (i) These adjustments include the non-cash charge for the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the non-cash charge for the amortization of the recoupable portion of the purchase price and the expense associated with the noncontrolling equity interests in the distributable earnings related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense, as presented in the table below. The noncontrolling equity interest in the distributable earnings of 3 Arts Entertainment are reflected in as an expense rather than noncontrolling interest in the combined statements of operations due to the relationship to continued employment. Year Ended March 31, 2023 2022 2021 (Amounts in millions) Amortization of recoupable portion of the purchase price $ 7.7 $ 7.7 $ 7.7 Noncontrolling interest discount amortization 13.2 22.7 22.7 Noncontrolling equity interest in distributable earnings 34.3 28.8 16.8 $ 55.2 $ 59.2 $ 47.2 See Note 12 for revenues by media or product line as broken down by segment for the fiscal years ended March 31, 2023, 2022 and 2021. |
Segment Information - Summary_7
Segment Information - Summary Of Noncontrolling Equity Interest In The Distributable Earnings (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Amortization of recoupable portion of the purchase price | $ 1.3 | $ 5.7 | $ 7.7 | $ 7.7 | $ 7.7 |
Noncontrolling interest discount amortization | 0 | 13.3 | 13.2 | 22.7 | 22.7 |
Noncontrolling equity interest in distributable earnings | 14.1 | 27.4 | 34.3 | 28.8 | 16.8 |
Noncontrolling equity interest | $ 15.4 | $ 46.4 | $ 55.2 | $ 59.2 | $ 47.2 |
Segment Information - Summary_8
Segment Information - Summary Of General And Administration Of The Company (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |||||||
Corporate general and administrative expenses | [1] | $ 76.2 | $ 57.7 | ||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||||
Segment general and administrative expenses | 123.7 | 98.2 | $ 161.7 | $ 133.3 | $ 148.9 | ||||||
Corporate general and administrative expenses | 76.2 | 57.7 | 100.9 | [2] | 80 | [2] | 91.4 | [2] | |||
Share-based compensation expense included in general and administrative expense | 46.3 | [3] | 40.1 | [3] | 69.2 | [4] | 70.2 | [4] | 54.5 | [4] | |
Purchase accounting and related adjustments | 15.4 | [5] | 46.4 | [5] | 55.2 | [6] | 59.2 | [6] | 47.2 | [6] | |
Reconciles segment of general and administration | $ 261.6 | $ 242.4 | $ 387 | $ 342.7 | $ 342 | ||||||
[1]Corporate general and administrative expenses reflect the allocations of certain general and administrative expenses from Lionsgate related to certain corporate and shared service functions historically provided by Lionsgate, including, but not limited to, executive oversight, accounting, tax, legal, human resources, occupancy, and other shared services (see Note 1 and Note 18 for further information). Amount excludes allocation of share-based compensation expense discussed below. The costs included in corporate general and administrative expenses represent certain corporate executive expense (such as salaries and wages for the office of the Chief Executive Officer, Chief Financial Officer, General Counsel and other corporate officers), investor relations costs, costs of maintaining corporate facilities, and other unallocated common administrative support functions, including corporate accounting, finance and financial reporting, internal and external audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense.[2]Corporate general and administrative expenses reflect the allocations of certain general and administrative expenses from Lionsgate related to certain corporate and shared service functions historically provided by Lionsgate, including, but not limited to, executive oversight, accounting, tax, legal, human resources, occupancy, and other shared services (see Note 1 and Note 20 for further information). Amount excludes allocation of share-based compensation expense discussed below. The costs included in corporate general and administrative expenses represent certain corporate executive expense (such as salaries and wages for the office of the Chief Executive Officer, Chief Financial Officer, General Counsel and other corporate officers), investor relations costs, costs of maintaining corporate facilities, and other unallocated common administrative support functions, including corporate accounting, finance and financial reporting, internal and external audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense.[3]Includes share-based compensation expense related to the allocation of Lionsgate corporate and shared employee share-based compensation expenses of $12.1 million in the nine months ended December 31, 2023 (2022—$17.0 million).[4]Includes share-based compensation expense related to the allocation of Lionsgate corporate and shared employee share-based compensation expenses of $26.7 million in fiscal year 2023 (2022- $19.6 million, 2021—$18.0 million).[5]These adjustments include the non-cash charge for the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the non-cash charge for the amortization of the recoupable portion of the purchase price and the expense associated with the noncontrolling equity interests in the distributable earnings related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense, as presented in the table below. The noncontrolling equity interest in the distributable earnings of 3 Arts Entertainment are reflected as an expense rather than noncontrolling interest in the combined statements of operations due to the relationship to continued employment.[6]These adjustments include the non-cash charge for the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the non-cash charge for the amortization of the recoupable portion of the purchase price and the expense associated with the noncontrolling equity interests in the distributable earnings related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense, as presented in the table below. The noncontrolling equity interest in the distributable earnings of 3 Arts Entertainment are reflected in as an expense rather than noncontrolling interest in the combined statements of operations due to the relationship to continued employment. |
Segment Information - Summary_9
Segment Information - Summary Of General And Administration Of The Company (Parentheticals) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||
Share-based compensation expense | $ 12.1 | $ 17 | $ 26.7 | $ 19.6 | $ 18 |
Segment Information - Summar_10
Segment Information - Summary Of Reconciliation Of Total Segments Assets To The Company (Detail) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Assets | $ 804,744,058 | $ 795,907,560 | $ 760,412,422 | |||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||
Assets | 5,119,100,000 | $ 4,412,700,000 | $ 4,325,700,000 | |||
Other Assets | [1] | 981,300,000 | 704,200,000 | 724,200,000 | ||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Motion Picture [Member] | ||||||
Assets | 1,744,200,000 | 1,759,400,000 | 1,622,600,000 | |||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Television Production [Member] | ||||||
Assets | $ 2,393,600,000 | $ 1,949,100,000 | $ 1,978,900,000 | |||
[1]Other unallocated assets primarily consist of cash, other assets and investments. |
Segment Information - Summar_11
Segment Information - Summary Of Acquisition Of Investment In Films And Television Programs (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Acquisition of investment in films and television programs | $ 1,568.4 | $ 1,750.1 | $ 1,181.9 |
Motion Picture [Member] | |||
Acquisition of investment in films and television programs | 484.5 | 463.1 | 325.8 |
Television Production [Member] | |||
Acquisition of investment in films and television programs | $ 1,083.9 | $ 1,287 | $ 856.1 |
Segment Information - Summar_12
Segment Information - Summary Of Capital Expenditures (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Capital expenditures | $ 5.1 | $ 4.5 | $ 6.5 | $ 6.1 | $ 10.2 | |
Motion Picture [Member] | ||||||
Capital expenditures | 0 | 0 | 0 | |||
Television Production [Member] | ||||||
Capital expenditures | 0.3 | 0.4 | 0.4 | |||
Corporate [Member] | ||||||
Capital expenditures | [1] | $ 6.2 | $ 5.7 | $ 9.8 | ||
[1]Represents unallocated capital expenditures primarily related to the Company’s corporate headquarters. |
Segment Information - Summar_13
Segment Information - Summary Of Revenue From External Customers By Geographic Areas (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | $ 2,106.3 | $ 2,260.2 | $ 3,083.8 | $ 2,716.3 | $ 1,912.9 |
Maximum [Member] | |||||
Percentage Of Total Revenue | 10% | 10% | |||
Canada [Member] | |||||
Revenue | $ 64 | 56.7 | 41 | ||
United States [Member] | |||||
Revenue | 2,348.8 | 2,084 | 1,470.8 | ||
Other foreign [Member] | |||||
Revenue | $ 671 | $ 575.6 | $ 401.1 |
Segment Information - Summar_14
Segment Information - Summary Of Long-lived Assets By Geographic Areas (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | $ 1,927.3 | $ 2,023.9 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | 1,736.5 | 1,859.7 |
Other foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | [1] | $ 190.8 | $ 164.2 |
[1]Long-lived assets represents total assets less the following: current assets, investments, long-term receivables, intangible assets, goodwill and deferred tax assets. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | $ 2,106.3 | $ 2,260.2 | $ 3,083.8 | $ 2,716.3 | $ 1,912.9 |
Percentage of accounts receivable due from one customer | 10.50% | 10.30% | |||
Accounts receivable | $ 60 | $ 48 | |||
Starz Business [Member] | |||||
Revenues | 775.5 | 648.2 | 204.1 | ||
Amount due from customer | 157.6 | $ 126.8 | |||
Motion Picture And Television Production [Member] | |||||
Revenue from one individual external customer | $ 337.1 | $ 293.5 | |||
Maximum [Member] | |||||
Percentage of total revenue | 10% | 10% | |||
Percentage of accounts receivable due from one customer | 10% | ||||
Maximum [Member] | Motion Picture And Television Production [Member] | |||||
Percentage of revenue from one individual external customer | 10% | 10% |
Financial Instruments - Summary
Financial Instruments - Summary of Balance Sheets Related to the Company's Use of Derivatives (Parenthetical) (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - Cash Flow Hedging [Member] - Interest Rate Swap [Member] $ in Millions | Mar. 31, 2022 USD ($) |
Derivative [Line Items] | |
Embedded derivative assets offset | $ 88.1 |
Embedded derivative liabilities off set | $ 46 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 1 Months Ended | |
May 31, 2022 | Mar. 31, 2023 | |
Interest Rate Swaption [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative amount received on termination of certain contracts | $ 56.4 | |
Reduction in the asset value of the derivative due to termination | 188.7 | |
Reduction in the liability value of the derivative due to termination | 131.3 | |
Cash flow on termination of derivatives classified as operating activities | 188.7 | |
Payment towards derivative instruments classified as financing activities | 134.5 | |
Other payments derivative instruments | $ 3.2 | |
Interest Rate Swaption [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Interest rate derivative liability | $ 6.8 | |
Redesignated Interest Swaps [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative liability notional amount | 1,400 | |
Other Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative liability notional amount | 300 | |
Redesignated Interest Swaps And Other Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative liability notional amount | 1,700 | |
Interest rate derivative liability | 9.8 | |
Derivative assets subject to master netting arrangement net | 169.6 | |
Derivative liability subject to master netting arrangement net | 147.3 | |
Interest rate derivative swaps assets | 32 | |
Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Foreign currency cash flow hedge to be reclassified the next twelve months | 2.9 | |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Interest rate cash flow hedge to be reclassified during the next twelve months | $ 23.5 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Balance Sheets Related to the Company's Use of Derivatives (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Other Current Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | $ 3.5 | ||
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Asset | $ 0 | $ 2.9 | |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative Asset | 0 | 2.9 | 3.5 |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Asset | 0 | 0 | 0 |
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Assets Interest Rate Swap Off Set | 0 | ||
Other Noncurrent Assets [Member] | |||
Derivative [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | 32 | ||
Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Asset | 34.2 | 41.1 | |
Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative Asset | 0 | 0 | 0 |
Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Asset | 34.2 | 41.1 | 109.1 |
Other Noncurrent Assets [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Assets Interest Rate Swap Off Set | (77.1) | ||
Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | 2.8 | ||
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 2.1 | 0.1 | |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 2.1 | 0.1 | 2.8 |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 0 | 0 | 0 |
Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities Off Set | 0 | ||
Other Noncurrent Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | 17.4 | ||
Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 0 | 0 | |
Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | 0 | 0 | 0 |
Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Liability | $ 0 | $ 0 | (39.4) |
Other Noncurrent Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative Liabilities Off Set | $ 56.8 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Financial Statement Effect of Derivatives (Detail) - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disclosure In Tabular Form Of Impact Of Derivatives On Income Statement And Comprehensive Income Statement [Line Items] | ||||||||||
Gain recognized in direct operating expense | $ 0 | $ (1,146,117) | $ 0 | $ 544,290 | $ 0 | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||||||
Disclosure In Tabular Form Of Impact Of Derivatives On Income Statement And Comprehensive Income Statement [Line Items] | ||||||||||
Total direct operating expense on combined statements of operations | $ 1,306,000,000 | $ 1,687,900,000 | $ 2,207,900,000 | $ 1,922,100,000 | $ 1,220,000,000 | |||||
Total interest expense on combined statements of operations | 157,100,000 | 117,800,000 | 162,600,000 | 115,000,000 | 109,700,000 | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Cash Flow Hedging [Member] | ||||||||||
Disclosure In Tabular Form Of Impact Of Derivatives On Income Statement And Comprehensive Income Statement [Line Items] | ||||||||||
Total direct operating expense on combined statements of operations | 1,306,000,000 | 1,687,900,000 | 2,207,900,000 | 1,922,100,000 | 1,220,000,000 | |||||
Total interest expense on combined statements of operations | 157,100,000 | 117,800,000 | 162,600,000 | 115,000,000 | 109,700,000 | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||||||||||
Disclosure In Tabular Form Of Impact Of Derivatives On Income Statement And Comprehensive Income Statement [Line Items] | ||||||||||
Gain (loss) recognized in accumulated other comprehensive income (loss) | (7,300,000) | 7,400,000 | 1,700,000 | 1,700,000 | (1,000,000) | |||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into direct operating expense | 31,500,000 | (5,700,000) | (300,000) | (200,000) | 200,000 | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||||||||
Disclosure In Tabular Form Of Impact Of Derivatives On Income Statement And Comprehensive Income Statement [Line Items] | ||||||||||
Gain (loss) recognized in accumulated other comprehensive income (loss) | 24,700,000 | 87,800,000 | 81,100,000 | 66,500,000 | 72,000,000 | |||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into direct operating expense | (2,500,000) | (700,000) | 1,400,000 | (15,000,000) | (20,000,000) | |||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Cash Flow Hedging [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Direct Operating Expense [Member] | ||||||||||
Disclosure In Tabular Form Of Impact Of Derivatives On Income Statement And Comprehensive Income Statement [Line Items] | ||||||||||
Gain recognized in direct operating expense | 0 | 0 | 300,000 | |||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Cash Flow Hedging [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | ||||||||||
Disclosure In Tabular Form Of Impact Of Derivatives On Income Statement And Comprehensive Income Statement [Line Items] | ||||||||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into direct operating expense | $ (5,500,000) | $ (9,900,000) | $ (11,800,000) | $ (33,800,000) | $ (28,300,000) |
Financial Instruments - Summa_4
Financial Instruments - Summary of Fixed Interest Rate Swaps Predesignated Cash Flow Hedges (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | ||||
Derivative [Line Items] | |||||||
Notional Amount | $ 1,700 | ||||||
Interest Rate Swaption [Member] | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 1,700 | $ 1,700 | $ 1,700 | ||||
Interest Rate Swaption [Member] | Tranche One [Member] | |||||||
Derivative [Line Items] | |||||||
Effective Date | May 23, 2018 | May 23, 2018 | May 23, 2018 | ||||
Notional Amount | $ 300 | $ 300 | $ 300 | ||||
Fixed Rate Received | 2.915% | 2.915% | 2.915% | ||||
Maturity Date | Mar. 24, 2025 | Mar. 24, 2025 | Mar. 24, 2025 | ||||
Interest Rate Swaption [Member] | Tranche Two [Member] | |||||||
Derivative [Line Items] | |||||||
Effective Date | May 23, 2018 | May 23, 2018 | May 23, 2018 | ||||
Notional Amount | $ 700 | $ 700 | $ 700 | ||||
Fixed Rate Received | 2.915% | 2.915% | 2.915% | ||||
Maturity Date | Mar. 24, 2025 | [1] | Mar. 24, 2025 | [1] | Mar. 24, 2025 | [2] | |
Interest Rate Swaption [Member] | Tranche Three [Member] | |||||||
Derivative [Line Items] | |||||||
Effective Date | Jun. 25, 2018 | Jun. 25, 2018 | Jun. 25, 2018 | ||||
Notional Amount | $ 200 | $ 200 | $ 200 | ||||
Fixed Rate Received | 2.723% | 2.723% | 2.723% | ||||
Maturity Date | Mar. 23, 2025 | [1] | Mar. 23, 2025 | [1] | Mar. 23, 2025 | [2] | |
Interest Rate Swaption [Member] | Tranche Four [Member] | |||||||
Derivative [Line Items] | |||||||
Effective Date | Jul. 31, 2018 | Jul. 31, 2018 | Jul. 31, 2018 | ||||
Notional Amount | $ 300 | $ 300 | $ 300 | ||||
Fixed Rate Received | 2.885% | 2.885% | 2.885% | ||||
Maturity Date | Mar. 23, 2025 | [1] | Mar. 23, 2025 | [1] | Mar. 23, 2025 | [2] | |
Interest Rate Swaption [Member] | Tranche Five [Member] | |||||||
Derivative [Line Items] | |||||||
Effective Date | Dec. 24, 2018 | Dec. 24, 2018 | Dec. 24, 2018 | ||||
Notional Amount | $ 50 | $ 50 | $ 50 | ||||
Fixed Rate Received | 2.744% | 2.744% | 2.744% | ||||
Maturity Date | Mar. 23, 2025 | [1] | Mar. 23, 2025 | [1] | Mar. 23, 2025 | [2] | |
Interest Rate Swaption [Member] | Tranche Six [Member] | |||||||
Derivative [Line Items] | |||||||
Effective Date | Dec. 24, 2018 | Dec. 24, 2018 | Dec. 24, 2018 | ||||
Notional Amount | $ 100 | $ 100 | $ 100 | ||||
Fixed Rate Received | 2.808% | 2.808% | 2.808% | ||||
Maturity Date | Mar. 23, 2025 | [1] | Mar. 23, 2025 | [1] | Mar. 23, 2025 | [2] | |
Interest Rate Swaption [Member] | Tranche Seven [Member] | |||||||
Derivative [Line Items] | |||||||
Effective Date | Dec. 24, 2018 | Dec. 24, 2018 | Dec. 24, 2018 | ||||
Notional Amount | $ 50 | $ 50 | $ 50 | ||||
Fixed Rate Received | 2.728% | 2.728% | 2.728% | ||||
Maturity Date | Mar. 23, 2025 | [1] | Mar. 23, 2025 | [1] | Mar. 23, 2025 | [2] | |
[1]Represents the “Re-designated Swaps” as described in the May 2022 Transactions section below that were previously not designated cash flow hedges at March 31, 2022.[2]Represents the Re-designated Swaps as described in the May 2022 Transactions section above that were previously not designated cash flow hedges at March 31, 2022. |
Financial Instruments - Summa_5
Financial Instruments - Summary of Not Designated As Cash Flow Hedges (Parenthetical) (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 12 Months Ended | |||||
Mar. 31, 2021 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2020 | |
Derivative [Line Items] | ||||||
Accumulated other comprehensive income loss net of tax cash flow hedges | $ (68.1) | $ 136.5 | $ 142.6 | $ 160.6 | $ 49.1 | $ (187.1) |
Interest Rate Swaption [Member] | Cash Flow Hedging [Member] | ||||||
Derivative [Line Items] | ||||||
Accumulated other comprehensive income loss net of tax cash flow hedges | (163) | |||||
Interest Rate Swaption [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||
Derivative [Line Items] | ||||||
Receive fixed pay variable derivative contracts entered | 1,400 | |||||
Interest Rate Swaption [Member] | Not Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||
Derivative [Line Items] | ||||||
Pay Fixed Receive Variable Derivative Instruments De Designated | $ 1,400 |
Financial Instruments - Summa_6
Financial Instruments - Summary of Not Designated As Cash Flow Hedges (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - Not Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] $ in Millions | 12 Months Ended | |
Mar. 31, 2022 USD ($) | ||
Tranche One [Member] | ||
Derivative [Line Items] | ||
Maturity Date | Mar. 24, 2025 | |
Tranche Two [Member] | ||
Derivative [Line Items] | ||
Maturity Date | Mar. 23, 2025 | |
Tranche Three [Member] | ||
Derivative [Line Items] | ||
Maturity Date | Mar. 23, 2025 | |
Tranche Four [Member] | ||
Derivative [Line Items] | ||
Maturity Date | Mar. 23, 2025 | |
Tranche Five [Member] | ||
Derivative [Line Items] | ||
Maturity Date | Mar. 23, 2025 | |
Tranche Six [Member] | ||
Derivative [Line Items] | ||
Maturity Date | Mar. 23, 2025 | |
Pay Fixed Receive Variable Interest Rate [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,400 | [1] |
Pay Fixed Receive Variable Interest Rate [Member] | Tranche One [Member] | ||
Derivative [Line Items] | ||
Effective Date | May 23, 2018 | [1] |
Notional Amount | $ 700 | [1] |
Fixed Rate Received | 2.915% | [1],[2] |
Pay Fixed Receive Variable Interest Rate [Member] | Tranche Two [Member] | ||
Derivative [Line Items] | ||
Effective Date | Jun. 25, 2018 | [1] |
Notional Amount | $ 200 | [1] |
Fixed Rate Received | 2.723% | [1],[2] |
Pay Fixed Receive Variable Interest Rate [Member] | Tranche Three [Member] | ||
Derivative [Line Items] | ||
Effective Date | Jul. 31, 2018 | [1] |
Notional Amount | $ 300 | [1] |
Fixed Rate Received | 2.885% | [1],[2] |
Pay Fixed Receive Variable Interest Rate [Member] | Tranche Four [Member] | ||
Derivative [Line Items] | ||
Effective Date | Dec. 24, 2018 | [1] |
Notional Amount | $ 50 | [1] |
Fixed Rate Received | 2.744% | [1],[2] |
Pay Fixed Receive Variable Interest Rate [Member] | Tranche Five [Member] | ||
Derivative [Line Items] | ||
Effective Date | Dec. 24, 2018 | [1] |
Notional Amount | $ 100 | [1] |
Fixed Rate Received | 2.808% | [1],[2] |
Pay Fixed Receive Variable Interest Rate [Member] | Tranche Six [Member] | ||
Derivative [Line Items] | ||
Effective Date | Dec. 24, 2018 | [1] |
Notional Amount | $ 50 | [1] |
Fixed Rate Received | 2.728% | [1],[2] |
Offsetting Pay Variable Receive Fixed Interest Rate [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,400 | [1] |
Offsetting Pay Variable Receive Fixed Interest Rate [Member] | Tranche One [Member] | ||
Derivative [Line Items] | ||
Effective Date | May 19, 2020 | [1] |
Notional Amount | $ 700 | [1] |
Fixed Rate Received | 2.915% | [1],[3] |
Offsetting Pay Variable Receive Fixed Interest Rate [Member] | Tranche Two [Member] | ||
Derivative [Line Items] | ||
Effective Date | Aug. 14, 2020 | [1] |
Notional Amount | $ 200 | [1] |
Fixed Rate Received | 2.723% | [1],[3] |
Offsetting Pay Variable Receive Fixed Interest Rate [Member] | Tranche Three [Member] | ||
Derivative [Line Items] | ||
Effective Date | May 19, 2020 | [1] |
Notional Amount | $ 300 | [1] |
Fixed Rate Received | 2.885% | [1],[3] |
Offsetting Pay Variable Receive Fixed Interest Rate [Member] | Tranche Four [Member] | ||
Derivative [Line Items] | ||
Effective Date | May 19, 2020 | [1] |
Notional Amount | $ 50 | [1] |
Fixed Rate Received | 2.744% | [1],[3] |
Offsetting Pay Variable Receive Fixed Interest Rate [Member] | Tranche Five [Member] | ||
Derivative [Line Items] | ||
Effective Date | Jun. 15, 2020 | [1] |
Notional Amount | $ 100 | [1] |
Fixed Rate Received | 2.808% | [1],[3] |
Offsetting Pay Variable Receive Fixed Interest Rate [Member] | Tranche Six [Member] | ||
Derivative [Line Items] | ||
Effective Date | Jun. 15, 2020 | [1] |
Notional Amount | $ 50 | [1] |
Fixed Rate Received | 2.728% | [1],[3] |
[1]During the fiscal year ended March 31, 2021, the Company completed a series of transactions to amend and extend certain interest rate swap agreements, and as part of these transactions, the $1.4 billion pay-fixed receive-variable interest rate swaps presented in the table above were de-designated, and the Company entered into $1.4 billion of pay-variable receive-fixed interest rate swaps, as presented in the table above, which are designed to offset the terms of the $1.4 billion of pay-fixed receive-variable swaps in the table above. At the time of the de-designation of the above $1.4 billion in pay-fixed receive-variable interest rate swaps, there was approximately $163.0 million of unrealized losses recorded in accumulated other comprehensive income (loss). This amount is being amortized to interest expense through the remaining term of the de-designated swaps unless it becomes probable that the cash flows originally hedged will not occur, in which case the proportionate amount of the loss will be recorded to interest expense at that time. The $1.4 billion of pay-fixed receive-variable interest rate swaps de-designated as cash flow hedges and the $1.4 billion of offsetting pay-variable receive-fixed swaps were marked to market with changes in fair value recognized, along with the fixed and variable payments on these swaps, in interest expense, which netted to an immaterial amount.[2]Re-designated in May 2022, see May 2022 Transactions description below.[3]Terminated in May 2022, see May 2022 Transactions description below. |
Financial Instruments - Summa_7
Financial Instruments - Summary of Designated As Cash Flow Hedges (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] $ in Millions | 12 Months Ended | |
Mar. 31, 2022 USD ($) | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,700 | |
Tranche One [Member] | ||
Derivative [Line Items] | ||
Effective Date | May 23, 2018 | |
Notional Amount | $ 300 | |
Fixed Rate Paid | 2.915% | |
Maturity Date | Mar. 24, 2025 | [1] |
Tranche Two [Member] | ||
Derivative [Line Items] | ||
Effective Date | May 19, 2020 | |
Notional Amount | $ 700 | |
Fixed Rate Paid | 1.923% | |
Maturity Date | Mar. 23, 2030 | [1],[2],[3] |
Tranche Three [Member] | ||
Derivative [Line Items] | ||
Effective Date | May 19, 2020 | |
Notional Amount | $ 350 | |
Fixed Rate Paid | 2.531% | |
Maturity Date | Mar. 23, 2027 | [1],[2],[3] |
Tranche Four [Member] | ||
Derivative [Line Items] | ||
Effective Date | Jun. 15, 2020 | |
Notional Amount | $ 150 | |
Fixed Rate Paid | 2.343% | |
Maturity Date | Mar. 23, 2027 | [1],[2],[3] |
Tranche Five [Member] | ||
Derivative [Line Items] | ||
Effective Date | Aug. 14, 2020 | |
Notional Amount | $ 200 | |
Fixed Rate Paid | 1.84% | |
Maturity Date | Mar. 23, 2030 | [1],[2],[3] |
[1]Subject to a mandatory early termination date of March 23, 2025.[2]Terminated in May 2022, see May 2022 Transactions description below.[3]These pay-fixed interest rate swaps were considered hybrid instruments with a financing component (debt host) and an embedded at-market derivative that was designated as a cash flow hedge. |
Financial Instruments - Summa_8
Financial Instruments - Summary of Outstanding Forward Foreign Exchange Contracts (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - Foreign Exchange Forward [Member] € in Millions, £ in Millions, zł in Millions, R in Millions, Kč in Millions, $ in Millions, $ in Millions, $ in Millions | Dec. 31, 2023 GBP (£) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CZK (Kč) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 MXN ($) | Dec. 31, 2023 ZAR (R) | Mar. 31, 2023 GBP (£) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 CZK (Kč) | Mar. 31, 2023 EUR (€) | Mar. 31, 2023 CAD ($) | Mar. 31, 2023 PLN (zł) | Mar. 31, 2023 MXN ($) |
GBP | ||||||||||||||
Disclosure In Tabular Form Of Foreign Exchange Forward Contracts [Line Items] | ||||||||||||||
Derivative Liability, Notional Amount | £ 0.4 | $ 0.4 | £ 3.1 | $ 2.3 | ||||||||||
Derivative, Average Forward Exchange Rate | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 | 1.33 | 1.33 | 1.33 | 1.33 | 1.33 | 1.33 | 1.33 |
CZK | ||||||||||||||
Disclosure In Tabular Form Of Foreign Exchange Forward Contracts [Line Items] | ||||||||||||||
Derivative Liability, Notional Amount | $ 8.1 | Kč 180 | $ 8.6 | Kč 180 | ||||||||||
Derivative, Average Forward Exchange Rate | 22.13 | 22.13 | 22.13 | 22.13 | 22.13 | 22.13 | 22.13 | 20.88 | 20.88 | 20.88 | 20.88 | 20.88 | 20.88 | 20.88 |
EUR | ||||||||||||||
Disclosure In Tabular Form Of Foreign Exchange Forward Contracts [Line Items] | ||||||||||||||
Derivative Liability, Notional Amount | $ 15.4 | € 15.3 | $ 10 | € 11 | ||||||||||
Derivative, Average Forward Exchange Rate | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 | 1.1 |
CAD | ||||||||||||||
Disclosure In Tabular Form Of Foreign Exchange Forward Contracts [Line Items] | ||||||||||||||
Derivative Liability, Notional Amount | $ 1 | $ 29.5 | $ 3.6 | $ 5.1 | ||||||||||
Derivative, Average Forward Exchange Rate | 1.34 | 1.34 | 1.34 | 1.34 | 1.34 | 1.34 | 1.34 | 1.42 | 1.42 | 1.42 | 1.42 | 1.42 | 1.42 | 1.42 |
PLN | ||||||||||||||
Disclosure In Tabular Form Of Foreign Exchange Forward Contracts [Line Items] | ||||||||||||||
Derivative Liability, Notional Amount | $ 1.8 | zł 8 | ||||||||||||
Derivative, Average Forward Exchange Rate | 4.33 | 4.33 | 4.33 | 4.33 | 4.33 | 4.33 | 4.33 | |||||||
MXN | ||||||||||||||
Disclosure In Tabular Form Of Foreign Exchange Forward Contracts [Line Items] | ||||||||||||||
Derivative Liability, Notional Amount | $ 1.7 | $ 35.9 | $ 12.6 | $ 237.8 | ||||||||||
Derivative, Average Forward Exchange Rate | 20.52 | 20.52 | 20.52 | 20.52 | 20.52 | 20.52 | 20.52 | 18.86 | 18.86 | 18.86 | 18.86 | 18.86 | 18.86 | 18.86 |
ZAR | ||||||||||||||
Disclosure In Tabular Form Of Foreign Exchange Forward Contracts [Line Items] | ||||||||||||||
Derivative Liability, Notional Amount | $ 2.9 | R 53.2 | ||||||||||||
Derivative, Average Forward Exchange Rate | 18.95 | 18.95 | 18.95 | 18.95 | 18.95 | 18.95 | 18.95 |
Additional Financial Informat_3
Additional Financial Information - Additional Information (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Additional Financial Information [Line Items] | |||||||
Accounts receivable, net | $ 527 | $ 398.6 | $ 734.1 | ||||
Proceeds from Accounts Receivable Securitization | $ 100 | $ 150 | |||||
Additional Receivables Held | 61.8 | ||||||
Employee Related Liabilities Current And Noncurrent | 102.8 | 53 | 114.5 | $ 102.8 | |||
Interest Paid During the Year | 137.7 | 85 | $ 82.8 | ||||
Income Taxes Paid During the Year | 14.3 | 13.9 | $ 4.1 | ||||
Pooled Monetization Agreement [Member] | |||||||
Additional Financial Information [Line Items] | |||||||
Accounts receivable, net | 52.3 | 79.5 | |||||
Trade Accounts Receivable [Member] | |||||||
Additional Financial Information [Line Items] | |||||||
Accounts receivable, net | $ 350.9 | $ 274.1 | $ 420.8 |
Additional Financial Informat_4
Additional Financial Information - Summary of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Nov. 02, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Cash and Cash Equivalents [Line Items] | |||||||||
Cash and cash equivalents | $ 437,163 | $ 999,152 | $ 117,696 | ||||||
Total cash, cash equivalents and restricted cash | $ 437,163 | 999,152 | $ 72,520 | 117,696 | $ 0 | $ 0 | |||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||
Cash and Cash Equivalents [Line Items] | |||||||||
Cash and cash equivalents | 247,100,000 | 210,900,000 | $ 256,900,000 | ||||||
Restricted cash included in other current assets | 36,400,000 | 27,500,000 | 13,400,000 | ||||||
Restricted cash included in other non-current assets | 13,900,000 | 13,000,000 | 0 | ||||||
Total cash, cash equivalents and restricted cash | $ 297,400,000 | $ 251,400,000 | $ 341,100,000 | $ 270,300,000 | $ 361,300,000 | $ 224,800,000 |
Additional Financial Informat_5
Additional Financial Information - Summary of the Receivables Transferred Under Individual Agreements or Purchases (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivables Transferred Under Individual Agreement [Line Items] | |||||
Carrying value of receivables transferred and derecognized | $ 385.8 | $ 314.9 | $ 400.5 | $ 285 | $ 251.8 |
Net cash proceeds received | 370.7 | 300 | 383 | 278.3 | 247.9 |
Loss recorded related to transfers of receivables | $ 15.1 | $ 14.9 | $ 17.5 | $ 6.7 | $ 3.9 |
Additional Financial Informat_6
Additional Financial Information - Summary of the Receivables Transferred Under the Pooled Monetization Agreement (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivables Transferred Under Agreement [Line Items] | |||||
Gross cash proceeds received for receivables transferred and derecognized | $ 22.2 | $ 156 | $ 167 | $ 155.5 | $ 173.1 |
Less amounts from collections reinvested under revolving agreement | (9.1) | (83.3) | (94.3) | (102.7) | (138.7) |
Proceeds from new transfers | 13.1 | 72.7 | 72.7 | 52.8 | 34.4 |
Collections not reinvested and remitted or to be remitted | (13.4) | (48) | (66.6) | (46.8) | (27.9) |
Net cash proceeds received (paid or to be paid) | (0.3) | 24.7 | 6.1 | 6 | 6.5 |
Carrying value of receivables transferred and derecognized | 22.1 | 154.2 | 164.8 | 154.5 | 172 |
Obligations recorded | 2.1 | 4.4 | 5.9 | 2.9 | 1.9 |
Loss recorded related to transfers of receivables | $ 2 | $ 2.6 | $ 3.7 | $ 1.9 | $ 0.8 |
Additional Financial Informat_7
Additional Financial Information - Summary of the Receivables Transferred Under the Pooled Monetization Agreement (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||
Accounts Receivables Transferred Under Agreement [Line Items] | ||||
Receivables Repurchased during the Period | $ 46 | $ 27.4 | $ 27.4 | $ 25.5 |
Additional Financial Informat_8
Additional Financial Information - Summary of Composition of the Company's Other Assets (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule Of Other Assets [Line Items] | |||
Prepaid expenses and other | $ 50.1 | $ 36 | $ 47.5 |
Restricted cash | 36.4 | 27.5 | 13.4 |
Contract assets | 56.8 | 63.5 | 40.5 |
Tax credits receivable | 273.8 | 129.5 | 128.3 |
Other current assets | 417.1 | 256.5 | 229.7 |
Prepaid expenses and other | 21.5 | 7.4 | 9.9 |
Restricted cash | 13.9 | 13 | 0 |
Accounts receivable | 105.9 | 37.8 | 38.3 |
Contract assets | 3.3 | 5.1 | 9.3 |
Tax credits receivable | 312.8 | 341.8 | 316.1 |
Operating lease right-of-use assets | 318.8 | 116.8 | 126 |
Interest rate swap assets | 34.2 | 41.1 | 32 |
Other non-current assets | $ 810.4 | $ 563 | $ 531.6 |
Additional Financial Informat_9
Additional Financial Information - Summary of Composition of the Company's Other Assets (Parenthetical) (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Other Assets [Line Items] | ||||
Unamortized discounts on Long Term Non Interest Bearing Receivables | $ 3.5 | $ 1.8 | ||
Unamortized Discounts on Contract Assets | 0.5 | 0.5 | ||
Operating lease right of use assets obtained in exchange for operating lease liability | 11.3 | 51.1 | $ 20.3 | |
Operating Lease, Right-of-Use Asset | $ 318.8 | 116.8 | 126 | |
Operating lease liability current | 37.7 | 31.4 | ||
Operating lease liability non current | $ 96.4 | $ 112.7 | ||
Other Noncurrent Assets [Member] | Extended Certain Properties And Entered Into New Operating Leases [Member] | ||||
Schedule Of Other Assets [Line Items] | ||||
Operating lease right of use assets obtained in exchange for operating lease liability | 211.9 | |||
Other Noncurrent Assets [Member] | E One [Member] | ||||
Schedule Of Other Assets [Line Items] | ||||
Operating Lease, Right-of-Use Asset | 21.3 | |||
Other Accrued Liabilities Non Current [Member] | Extended Certain Properties And Entered Into New Operating Leases [Member] | ||||
Schedule Of Other Assets [Line Items] | ||||
Decrease in operating lease liabiltiy non current | 1.3 | |||
Other Accrued Liabilities Non Current [Member] | E One [Member] | ||||
Schedule Of Other Assets [Line Items] | ||||
Operating lease liability current | 6.9 | |||
Other Noncurrent Liabilities [Member] | Extended Certain Properties And Entered Into New Operating Leases [Member] | ||||
Schedule Of Other Assets [Line Items] | ||||
Increase in operating lease liabiltiy non current | 213.2 | |||
Other Noncurrent Liabilities [Member] | E One [Member] | ||||
Schedule Of Other Assets [Line Items] | ||||
Operating lease liability non current | $ 17.3 |
Additional Financial Informa_10
Additional Financial Information - Summary of Non Cash Investing Activities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||
Cash Flow Supplemental [Line Items] | |||
Accrued equity method investment | $ 0 | $ 19 | $ 0 |
Additional Financial Informa_11
Additional Financial Information - Summary of Changes in the Components of Accumulated Other Comprehensive Income Loss (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning Balance Foreign currency translation adjustments | $ (41.1) | $ (38.9) | $ (38.9) | $ (34.3) | $ (38.8) |
Other comprehensive loss | 1.8 | (3.7) | (2.2) | (4.6) | 4.5 |
Reclassifications to net loss | 0 | 0 | 0 | 0 | 0 |
Ending Balance Foreign currency translation adjustments | (39.3) | (42.6) | (41.1) | (38.9) | (34.3) |
Beginning Balance Net unrealized gain (loss) on cash flow hedges | 142.6 | 49.1 | 49.1 | (68.1) | (187.1) |
Other comprehensive loss | 17.4 | 95.2 | 82.8 | 68.2 | 70.9 |
Reclassifications to net loss | (23.5) | 16.3 | 10.7 | 49 | 48.1 |
Ending Balance Net unrealized gain (loss) on cash flow hedges | 136.5 | 160.6 | 142.6 | 49.1 | (68.1) |
Beginning Balance Total | 101.5 | 10.2 | 10.2 | (102.4) | (225.9) |
Other comprehensive loss | 19.2 | 91.5 | 80.6 | 63.6 | 75.4 |
Reclassifications to net loss | (23.5) | 16.3 | 10.7 | 49 | 48.1 |
Ending Balance Total | $ 97.2 | $ 118 | $ 101.5 | $ 10.2 | $ (102.4) |
Additional Financial Informa_12
Additional Financial Information - Summary of Changes in the Components of Accumulated Other Comprehensive Income Loss (Parenthetical) (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Additional Financial Information [Line Items] | |||||
Loss Included in Direct Operating Expense | $ 2.5 | $ 0.3 | |||
Loss included in Interest Expense | $ 10.4 | ||||
Gain included in Interest Expense | $ 26 | $ 0.2 | |||
Other Comprehensive Income (Loss) [Member] | |||||
Additional Financial Information [Line Items] | |||||
Loss Included in Direct Operating Expense | $ 0.7 | $ 0.2 | |||
Loss included in Interest Expense | $ 15.6 | $ 48.8 | $ 48.3 |
Additional Financial Informa_13
Additional Financial Information - Summary of Supplemental Cash Flow Information Related to Leases (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flow Supplemental Disclosures Related To Leases [Line Items] | |||
Operating cash flows for operating leases | $ 40.3 | $ 44.9 | $ 38.3 |
Operating leases | 11.3 | 51.1 | 20.3 |
Operating leases—increase in right-of-use assets | 17.4 | 30.9 | 0 |
Operating leases—increase in lease liability | $ 17.4 | $ 30.9 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of annual repayment of contractual commitments (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] $ in Millions | Mar. 31, 2023 USD ($) | |
Contractual Obligation Fiscal Year Maturity Schedule [Line Items] | ||
2024 | $ 370.5 | [1] |
2025 | 280.2 | [1] |
2026 | 96.4 | [1] |
2027 | 56.9 | [1] |
2028 | 40.1 | [1] |
Thereafter | 142.1 | [1] |
Total | 986.2 | [1] |
Film Related Obligations Commitments [Member] | ||
Contractual Obligation Fiscal Year Maturity Schedule [Line Items] | ||
2024 | 149.6 | [2] |
2025 | 141 | [2] |
2026 | 14.1 | [2] |
2027 | 6.5 | [2] |
2028 | 0 | [2] |
Thereafter | 4.1 | [2] |
Total | 315.3 | [2] |
Interest Payments [Member] | ||
Contractual Obligation Fiscal Year Maturity Schedule [Line Items] | ||
2024 | 139.9 | [3] |
2025 | 81.3 | [3] |
2026 | 36.6 | [3] |
2027 | 10.1 | [3] |
2028 | 3.2 | [3] |
Thereafter | 0 | [3] |
Total | 271.1 | [3] |
Other Contractual Obligations [Member] | ||
Contractual Obligation Fiscal Year Maturity Schedule [Line Items] | ||
2024 | 81 | |
2025 | 57.9 | |
2026 | 45.7 | |
2027 | 40.3 | |
2028 | 36.9 | |
Thereafter | 138 | |
Total | $ 399.8 | |
[1]Not included in the amounts above are $343.6 million of redeemable noncontrolling interest, as future amounts and timing are subject to a number of uncertainties such that the Company is unable to make sufficiently reliable estimations of future payments. See Note 11 for further information.[2]Film related obligations commitments are not reflected on the combined balance sheets as they did not then meet the criteria for recognition and include the following items: (i) Distribution and marketing commitments represent contractual commitments for future expenditures associated with distribution and marketing of films which the Company will distribute. The payment dates of these amounts are primarily based on the anticipated release date of the film. (ii) Minimum guarantee commitments represent contractual commitments related to the purchase of film rights for pictures to be delivered in the future. (iii) Production loan commitments represent amounts committed for future film production and development to be funded through production financing and recorded as a production loan liability when incurred. Future payments under these commitments are based on anticipated delivery or release dates of the related film or contractual due dates of the commitment. The amounts include estimated future interest payments associated with the commitment.[3]Includes cash interest payments on the Company’s Senior Credit Facilities and film related obligations, based on the applicable LIBOR and SOFR interest rates as of March 31, 2023, net of payments and receipts from the Company’s interest rate swaps, and excluding the interest payments on the revolving credit facility as future amounts are not fixed or determinable due to fluctuating balances and interest rates. |
Income Taxes - Summary Of Incom
Income Taxes - Summary Of Income Tax Effects Of Temporary Differences Between The Book Value And Tax Basis Of Assets And Liabilities (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | Mar. 31, 2023 | Mar. 31, 2022 |
Deferred tax assets: | ||
Net operating losses | $ 94.1 | $ 103 |
Foreign tax credits | 7.2 | 3.8 |
Accrued compensation | 50.7 | 45.5 |
Operating leases- liabilities | 24.4 | 26.5 |
Other assets | 14.5 | 34.6 |
Reserves | 8 | 10.7 |
Interest | 21.8 | 0 |
Total deferred tax assets | 220.7 | 224.1 |
Valuation allowance | (152.2) | (184.6) |
Deferred tax assets, net of valuation allowance | 68.5 | 39.5 |
Deferred tax liabilities: | ||
Intangible assets | (8) | (7.7) |
Investment in film and television programs | (3.6) | (3.5) |
Unrealized gains on derivative contracts | (33.5) | (11.4) |
Operating leases—assets | (21.9) | (23.9) |
Other | (19.6) | (9.4) |
Total deferred tax liabilities | (86.6) | (55.9) |
Net deferred tax liabilities | $ (18.1) | $ (16.4) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Feb. 19, 2022 | Dec. 13, 2021 | Nov. 05, 2021 | Dec. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | May 07, 2024 | |
Related Party Transactions [Line Items] | ||||||||||||||
Notes payable to related party current | $ 300,000 | |||||||||||||
Working capital loans convertible into equity warrants | $ 1,500,000 | |||||||||||||
Promissory Note Issued To The Sponsor [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Debt instrument face value | $ 300,000 | |||||||||||||
Promissory Note Issued To The Sponsor [Member] | Subsequent Event [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Debt instrument face value | $ 2,000,000 | |||||||||||||
Administrative Services Agreement [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Related party transaction expenses payable per month | $ 15,000 | |||||||||||||
Accounts payable and accrued expenses | $ 15,000 | $ 45,000 | 45,000 | $ 45,000 | ||||||||||
Expenses from transactions with related party | 0 | $ 15,000 | $ 45,000 | $ 180,000 | $ 180,000 | |||||||||
Working Capital Loans [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Debt instrument conversion price per share | $ 1.5 | |||||||||||||
Related Party [Member] | Affiliated Entity [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Due to affiliate current | $ 14,537 | |||||||||||||
Common Class B [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Stock issued during the period shares for services | 25,000 | |||||||||||||
Stock issued durig the period value for services | $ 17,250,000 | |||||||||||||
Common stock, shares, outstanding | 18,750,000 | 17,250,000 | 18,750,000 | 18,750,000 | 18,750,000 | 18,750,000 | ||||||||
Stock forfeited during the period shares | 2,812,500 | 2,812,500 | 2,812,500 | |||||||||||
Percentage of common stock issued and outstanding | 20% | 20% | ||||||||||||
Common stock shares lock in period | 1 year | |||||||||||||
Share price | $ 12 | |||||||||||||
Number of trading days for determining the share price | 20 days | |||||||||||||
Total number of trading days for determining the share price | 30 days | |||||||||||||
Common stock shares lock in period one | 180 days | |||||||||||||
Common Class B [Member] | Founder Shares [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Common stock, shares, outstanding | 21,562,500 | |||||||||||||
Stock forfeited during the period shares | 21,562,500 | |||||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Corporate expense allocation | $ 76,200,000 | $ 57,700,000 | $ 100,900,000 | $ 80,000,000 | $ 91,400,000 | |||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Ignite [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Payment made for distribution rights | $ 400,000 | |||||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Ignite [Member] | Michael Burns [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Equity ownership percentage excluding consolidated entity and equity method investee | 65.45% | 65.45% | ||||||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Ignite [Member] | Hardwick Simmons [Member] | ||||||||||||||
Related Party Transactions [Line Items] | ||||||||||||||
Equity ownership percentage excluding consolidated entity and equity method investee | 24.24% | 24.24% |
Related Party Transactions - Su
Related Party Transactions - Summary of Net Transfers to and from Lionsgate (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |||||
Related Party Transaction [Line Items] | |||||||||
Share-based compensation (including allocation of share-based compensation) | [1] | $ (53.6) | $ (42.2) | ||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Cash pooling and general financing activities | (241.7) | 111.5 | $ 36.1 | $ (305.2) | $ (143.5) | ||||
Licensing of content | [2] | 428.8 | 623.7 | 733.3 | 567.7 | 209.4 | |||
Corporate reimbursements | 5.9 | 8 | 13.3 | 10.8 | 8 | ||||
Corporate expense allocations (excluding allocation of share-based compensation) | 20.2 | 12.3 | 22.3 | 19.3 | 22.4 | ||||
Funding of purchases of accounts receivables held for collateral | (85.6) | (135.4) | (183.7) | (172.9) | (212.5) | ||||
Net transfers to (from) Parent per combined statements of cash flows | 127.6 | 620.1 | 621.3 | 119.7 | (116.2) | ||||
Share-based compensation (including allocation of share-based compensation) | (53.6) | (42.2) | (73.4) | [3] | (70.2) | [3] | (58) | [3] | |
Other non-cash transfer | 16.6 | 0 | 2.5 | 0 | 0 | ||||
Net transfers to (from) Parent per combined statements of equity (deficit) | $ 90.6 | $ 577.9 | $ 550.4 | $ 49.5 | $ (174.2) | ||||
[1]Total share-based compensation expense in the nine months ended December 31, 2023 and 2022 includes $12.1 million and $17.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense.[2]Reflects the settlement of amounts due from the Starz Business related to the Company’s licensing arrangements with the Starz Business.[3]Total share-based compensation expense in the years ended March 31, 2023, 2022 and 2021 includes $26.7 million, $19.6 million and $18.0 million, respectively, of corporate allocation of share-based compensation expense, representing the allocation of Lionsgate’s corporate employee share-based compensation expense. |
Related Party Transactions - _2
Related Party Transactions - Summary of Company's Combined Balance Sheets and Statements of Operations (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Combined Balance Sheets | ||||||
Accounts receivable | $ 734.1 | $ 527 | $ 398.6 | |||
Investment in films and television programs | 1,908.2 | 1,786.7 | 1,867.9 | |||
Other assets, noncurrent | 810.4 | 563 | 531.6 | |||
Accounts payable | 214.1 | 251.1 | 197 | |||
Other accrued liabilities | 263.3 | 215.4 | 167.2 | |||
Participations and residuals, current | 595.9 | 524.4 | 450.8 | |||
Participations and residuals, noncurrent | 472 | 329.6 | 265.1 | |||
Other liabilities | 338.8 | 120.9 | 163.4 | |||
Combined Statements of Operations | ||||||
Revenues | 2,106.3 | $ 2,260.2 | 3,083.8 | 2,716.3 | $ 1,912.9 | |
Direct operating expense | 1,306 | 1,687.9 | 2,207.9 | 1,922.1 | 1,220 | |
Distribution and marketing expense | 346 | 189 | 304.2 | 315.2 | 216.7 | |
Interest and other income | $ 6.9 | $ 4.9 | 6.4 | 28 | 6.1 | |
Related Party [Member] | ||||||
Combined Balance Sheets | ||||||
Accounts receivable | 10.8 | 10.5 | ||||
Investment in films and television programs | [1] | 7.9 | 1.6 | |||
Other assets, noncurrent | [1],[2] | 45.8 | 43.5 | |||
Total due from related parties | 64.5 | 55.6 | ||||
Accounts payable | [3] | 16.8 | 17 | |||
Other accrued liabilities | [1] | 6.7 | 5.2 | |||
Participations and residuals, current | 7.5 | 5.9 | ||||
Participations and residuals, noncurrent | 2 | 1.1 | ||||
Other liabilities | [1] | 41.4 | 38.3 | |||
Total due to related parties | 74.4 | 67.5 | ||||
Combined Statements of Operations | ||||||
Revenues | 4.8 | 3 | 6.3 | |||
Direct operating expense | 8.3 | 6.5 | 10.8 | |||
Distribution and marketing expense | 0.4 | 0.2 | 0.2 | |||
Interest and other income | $ 0 | $ 3 | $ 2.9 | |||
[1]During the year ended March 31, 2022, the Company entered into certain operating leases related to a studio facility owned by an equity-method investee. Amounts related to these leases are included in investment in films and television programs, other assets—noncurrent, other accrued liabilities and other liabilities in the combined balance sheets at March 31, 2023 and 2022.[2]During the years ended March 31, 2022 and 2021, the Company made loans (including accrued interest) of $3.0 million and $2.9 million, respectively, to certain of its equity method investees (2023—none). As of March 31, 2023 and 2022, no amounts are included in other assets, noncurrent in the Company’s combined balance sheets related to these loans (net of equity interests losses applied against such loans).[3]Amounts primarily represent production related advances due to certain of its equity method investees. |
Related Party Transactions - _3
Related Party Transactions - Summary of Company's Combined Balance Sheets and Statements of Operations (Parenthetical) (Detail) - STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] - Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Loans and leases receivable related parties additions | $ 0 | $ 3 | $ 2.9 |
Other Noncurrent Assets [Member] | |||
Related Party Transaction [Line Items] | |||
Loans and leases receivable related parties | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Apr. 24, 2024 USD ($) $ / shares | Jan. 02, 2024 USD ($) | May 07, 2024 USD ($) | Apr. 11, 2024 USD ($) $ / shares shares | Apr. 09, 2024 USD ($) $ / shares shares | Mar. 31, 2024 USD ($) $ / shares | Jan. 03, 2024 USD ($) | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Nov. 05, 2021 USD ($) |
Subsequent Event [Line Items] | ||||||||||
Deferred Underwriting Fee Waived | $ 26,250,000 | |||||||||
Assets Held-in-trust, Noncurrent | $ 184,400,000 | $ 804,228,813 | $ 794,750,266 | $ 759,712,942 | ||||||
Temporary Equity, Aggregate Amount of Redemption Requirement | $ 620,800,000 | |||||||||
Temporary Equity, Redemption Price Per Share | $ / shares | $ 10.74 | $ 10.72 | $ 10.6 | $ 10.09 | ||||||
Temporary Equity, Shares Authorized | shares | 57,824,777 | |||||||||
Promissory Note Issued To The Sponsor [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument face value | $ 300,000 | |||||||||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Deferred Underwriting Fee Payable | 26,250,000 | |||||||||
Deferred Underwriting Fee Waived | $ 26,250,000 | |||||||||
Aggregate Transaction Proceeds to Consummate Business Combination | $ 350,000,000 | |||||||||
Common stock value subscribed | 225,000,000 | |||||||||
Assets Held-in-trust, Noncurrent | $ 184,400,000 | |||||||||
Temporary Equity, Aggregate Amount of Redemption Requirement | $ 620,800,000 | |||||||||
Temporary Equity, Redemption Price Per Share | $ / shares | $ 10.74 | |||||||||
Temporary Equity, Shares Authorized | shares | 57,824,777 | |||||||||
Subsequent Event [Member] | Promissory Note Issued To The Sponsor [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt instrument face value | $ 2,000,000 | |||||||||
Subsequent Event [Member] | Accredited Investors [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Common stock value subscribed | $ 175,000,000 | |||||||||
Subsequent Event [Member] | Additional Subscription Agreement [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Sale of stock issue price per share | $ / shares | $ 10.165 | |||||||||
Common stock shares subscribed but not issued | shares | 4,918,839 | |||||||||
Common stock value subscribed | $ 50,000,000 | |||||||||
Subsequent Event [Member] | Commitment Share [Member] | Share Purchase And Non Redemption Agreement [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Sale of stock issue price per share | $ / shares | $ 0.0001 | |||||||||
Stock split ratio | 0.0526 | |||||||||
Aggregate open market value of shares issued by the investors | $ 20,000,000 | |||||||||
Subsequent Event [Member] | Maximum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Aggregate Transaction Proceeds to Consummate Business Combination | 409,500,000 | |||||||||
Subsequent Event [Member] | Minimum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Aggregate Transaction Proceeds to Consummate Business Combination | $ 350,000,000 | |||||||||
STUDIO BUSINESS OF LIONS GATE ENTERTAINMENT CORP [Member] | Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Percentage of Redeemable Non-Controlling Interest Ownership Percentage | 25% | |||||||||
Noncontrolling Interest, Increase from Business Combination | $ 194,000,000 | |||||||||
Percentage of Right to Acquire Non-Cotrolling Interest | 24% |