Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2015 | Aug. 03, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LIONS GATE ENTERTAINMENT CORP /CN/ | |
Entity Central Index Key | 929,351 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 148,303,421 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 196,550 | $ 102,697 |
Restricted cash | 2,508 | 2,508 |
Accounts receivable, net of reserves for returns and allowances of $49,508 (March 31, 2015 - $64,362) and provision for doubtful accounts of $4,175 (March 31, 2015 - $4,120) | 761,216 | 891,880 |
Investment in films and television programs, net | 1,539,828 | 1,381,829 |
Property and equipment, net | 28,354 | 26,651 |
Investments | 499,009 | 438,298 |
Goodwill | 323,328 | 323,328 |
Other assets | 75,278 | 74,784 |
Deferred tax assets | 43,716 | 50,114 |
Total assets | 3,469,787 | 3,292,089 |
LIABILITIES | ||
Senior revolving credit facility | 0 | 0 |
5.25% Senior Notes | 225,000 | 225,000 |
Term Loan | 400,000 | 375,000 |
Accounts payable and accrued liabilities | 220,314 | 332,473 |
Participations and residuals | 501,760 | 471,661 |
Film obligations and production loans | 776,411 | 656,755 |
Convertible senior subordinated notes | 98,463 | 114,126 |
Deferred revenue | 291,812 | 274,787 |
Total liabilities | $ 2,513,760 | $ 2,449,802 |
Commitments and contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Common shares, no par value, 500,000,000 shares authorized, 148,261,908 shares issued (March 31, 2015 - 145,532,978 shares) | $ 868,487 | $ 830,786 |
Retained earnings | 44,028 | 13,720 |
Accumulated other comprehensive income (loss) | 43,512 | (2,219) |
Total shareholders’ equity | 956,027 | 842,287 |
Total liabilities and shareholders’ equity | $ 3,469,787 | $ 3,292,089 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands, None in scaling factor is -9223372036854775296 | Jun. 30, 2015 | Mar. 31, 2015 |
Reserve for returns and allowances on accounts receivable | $ 49,508 | $ 64,362 |
Provision for doubtful accounts on accounts receivable | $ 4,175 | $ 4,120 |
Common stock, no par value | ||
Authorized common shares | 500,000,000 | 500,000,000 |
Common stock, shares issued | 148,261,908 | 145,532,978 |
5.25% Senior Notes [Member] | Senior Secured Second-Priority Notes [Member] | ||
Coupon rate | 5.25% | 5.25% |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | $ 408,941 | $ 449,383 |
Expenses: | ||
Direct operating | 230,310 | 238,873 |
Distribution and marketing | 71,924 | 97,321 |
General and administration | 60,712 | 64,079 |
Depreciation and amortization | 1,830 | 1,346 |
Total expenses | 364,776 | 401,619 |
Operating income | 44,165 | 47,764 |
Interest expense | ||
Cash interest | 10,371 | 9,442 |
Amortization of debt discount and deferred financing costs | 2,254 | 3,530 |
Total interest expense | 12,625 | 12,972 |
Interest and other income | (600) | (1,018) |
Total other expenses, net | 12,025 | 11,954 |
Income before equity interests and income taxes | 32,140 | 35,810 |
Equity interests income | 11,388 | 18,210 |
Income before income taxes | 43,528 | 54,020 |
Income tax provision | 2,844 | 10,759 |
Net income | $ 40,684 | $ 43,261 |
Basic net income per common share (in usd per share) | $ 0.28 | $ 0.31 |
Diluted net income per common share (in usd per share) | $ 0.26 | $ 0.30 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 147,619 | 138,509 |
Diluted (in shares) | 157,498 | 152,210 |
Dividends declared per common share (in usd per share) | $ 0.07 | $ 0.05 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 40,684 | $ 43,261 |
Foreign currency translation adjustments, net of tax | 3,490 | 1,482 |
Net unrealized gain on available-for-sale securities, net of $6,311 tax | 42,234 | 0 |
Net unrealized gain (loss) on foreign exchange contracts, net of tax | 7 | (811) |
Comprehensive income | $ 86,415 | $ 43,932 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statement of Comprehensive Income (Parenthetical) $ in Thousands | 3 Months Ended |
Jun. 30, 2015USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Other comprehensive income, available-for-sale securities, tax | $ 6,311 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statement of Shareholders' Equity - 3 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total | Common Shares [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Mar. 31, 2015 | $ 842,287 | $ 830,786 | $ 13,720 | $ (2,219) |
Beginning balance, shares at Mar. 31, 2015 | 145,532,978 | |||
Exercise of stock options | 3,197 | $ 3,197 | ||
Exercise of stock options, shares | 188,825 | |||
Share-based compensation, net of withholding tax obligations of $15,489 | 18,109 | $ 18,109 | ||
Share-based compensation, net of withholding tax obligations of $15,489, shares | 551,164 | |||
Conversion of April 2009 3.625% Notes | 16,162 | $ 16,162 | ||
Conversion of April 2009 3.625% Notes, shares | 1,983,058 | |||
Issuance of common shares to directors for services | 188 | $ 188 | ||
Issuance of common shares to directors for services, shares | 5,883 | |||
Dividends declared | (10,376) | (10,376) | ||
Excess tax benefits on equity-based compensation awards | 45 | $ 45 | ||
Net income | 40,684 | 40,684 | ||
Foreign currency translation adjustments, net of tax | 3,490 | 3,490 | ||
Net unrealized gain on available-for-sale securities, net of tax | 42,234 | 42,234 | ||
Net unrealized gain on foreign exchange contracts, net of tax | 7 | 7 | ||
Ending balance at Jun. 30, 2015 | $ 956,027 | $ 868,487 | $ 44,028 | $ 43,512 |
Ending balance, shares at Jun. 30, 2015 | 148,261,908 |
Unaudited Condensed Consolidat8
Unaudited Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended |
Jun. 30, 2015 | |
Withholding tax obligations for share-based compensation | $ 15,489 |
Convertible Senior Subordinated Notes [Member] | April 2009 Notes [Member] | |
Coupon rate | 3.625% |
Unaudited Condensed Consolidat9
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities: | ||
Net income | $ 40,684 | $ 43,261 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 1,830 | 1,346 |
Amortization of films and television programs | 160,419 | 158,808 |
Amortization of debt discount and deferred financing costs | 2,254 | 3,530 |
Non-cash share-based compensation | 16,591 | 16,537 |
Distribution from equity method investee | 0 | 6,230 |
Equity interests income | (11,388) | (18,210) |
Deferred income taxes | 791 | 5,105 |
Changes in operating assets and liabilities: | ||
Restricted cash | 0 | 1,391 |
Accounts receivable, net | 134,173 | 169,514 |
Investment in films and television programs | (315,861) | (263,851) |
Other assets | (2,514) | 382 |
Accounts payable and accrued liabilities | (95,336) | (95,666) |
Participations and residuals | 29,916 | (1,539) |
Film obligations | (9,218) | (34,589) |
Deferred revenue | 16,776 | (4,883) |
Net Cash Flows Used In Operating Activities | (30,883) | (12,634) |
Investing Activities: | ||
Proceeds from the sale of equity method investees | 0 | 14,575 |
Investment in equity method investees | (800) | (9,650) |
Purchases of property and equipment | (3,248) | (1,427) |
Net Cash Flows Provided By (Used In) Investing Activities | (4,048) | 3,498 |
Financing Activities: | ||
Senior revolving credit facility - borrowings | 0 | 170,000 |
Senior revolving credit facility - repayments | 0 | (183,619) |
Term Loan - borrowings, net of deferred financing costs of $616 | 24,384 | 0 |
Convertible senior subordinated notes - repurchases | (5) | (16) |
Production loans - borrowings | 203,087 | 207,953 |
Production loans - repayments | (74,276) | (36,859) |
Repurchase of common shares | 0 | (109,529) |
Dividends paid | (10,187) | (7,066) |
Excess tax benefits on equity-based compensation awards | 45 | 2,771 |
Exercise of stock options | 3,118 | 406 |
Tax withholding required on equity awards | (16,082) | (10,247) |
Net Cash Flows Provided By Financing Activities | 130,084 | 33,794 |
Net Change In Cash And Cash Equivalents | 95,153 | 24,658 |
Foreign Exchange Effects on Cash | (1,300) | 22 |
Cash and Cash Equivalents - Beginning Of Period | 102,697 | 25,692 |
Cash and Cash Equivalents - End Of Period | $ 196,550 | $ 50,372 |
Unaudited Condensed Consolida10
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Term Loan [Member] | ||
Deferred financing costs | $ 616 | $ 0 |
General
General | 3 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Nature of Operations Lions Gate Entertainment Corp. (the “Company,” “Lionsgate,” "Lions Gate," “we,” “us” or “our”) is a premier next generation global content leader with a strong and diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, digital distribution, channel platforms and international distribution and sales. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lionsgate and all of its majority-owned and controlled subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to quarterly report on Form 10-Q under the Securities Exchange Act of 1934, as amended, and Article 10 of Regulation S-X. 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 consolidated financial statements. Operating results for the three months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2016 . The balance sheet at March 31, 2015 has been derived from the audited 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 consolidated financial statements should be read together with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2015 . Certain amounts presented in prior years have been reclassified to conform to the current year’s presentation. 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 for investment in films and television programs; estimates of sales returns and other allowances and provisions for doubtful accounts; fair value of equity-based compensation; fair value of assets and liabilities for allocation of the purchase price of companies acquired; income taxes and accruals for contingent liabilities; and impairment assessments for investment in films and television programs, property and equipment, equity investments, goodwill and intangible assets. Actual results could differ from such estimates. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standard update relating to the recognition of revenue from contracts with customers, which will supersede most current U.S. GAAP revenue recognition guidance, including industry-specific guidance. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. In July 2015, the FASB voted to defer the effective date to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods), with early adoption permitted to the original effective date of December 15, 2016. As a result, the guidance will be effective for the Company's fiscal year beginning April 1, 2018, and can be applied either retrospectively or under a cumulative-effect transition method. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. In April 2015, the FASB issued an accounting standards update relating to the presentation of debt issuance costs. The accounting update requires companies to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, rather than as an asset. The guidance is effective for the Company's fiscal year beginning April 1, 2016, with early adoption permitted. The Company plans to adopt the new guidance effective April 1, 2016. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Investment In Films And Televis
Investment In Films And Television Programs | 3 Months Ended |
Jun. 30, 2015 | |
Investment In Films And Television Programs [Abstract] | |
Investment In Films And Television Programs | Investment in Films and Television Programs June 30, March 31, (Amounts in thousands) Motion Pictures Segment - Theatrical and Non-Theatrical Films Released, net of accumulated amortization $ 492,178 $ 507,628 Acquired libraries, net of accumulated amortization 7,609 9,357 Completed and not released 37,523 76,968 In progress 677,964 478,879 In development 25,597 21,054 Product inventory 24,127 23,023 1,264,998 1,116,909 Television Production Segment - Direct-to-Television Programs Released, net of accumulated amortization 201,403 231,470 In progress 68,256 28,585 In development 5,171 4,865 274,830 264,920 $ 1,539,828 $ 1,381,829 The following table sets forth acquired libraries that represent titles released three years prior to the date of acquisition. These libraries are being amortized over their expected revenue stream from the acquisition date over a period up to 20 years: Total Amortization Period Remaining Amortization Period Unamortized Costs Acquired Library Acquisition Date June 30, March 31, (In years) (Amounts in thousands) Artisan Entertainment December 2003 20.00 8.50 $ 3,738 $ 5,122 Summit Entertainment January 2012 20.00 16.50 3,871 4,235 Total acquired libraries $ 7,609 $ 9,357 The Company expects approximately 46% of completed films and television programs, net of accumulated amortization, will be amortized during the one-year period ending June 30, 2016 . Additionally, the Company expects approximately 81% of completed and released films and television programs, net of accumulated amortization and excluding acquired libraries, will be amortized during the three-year period ending June 30, 2018 . |
Investments
Investments | 3 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments, Cost Method Investments, and Investments in Debt and Equity [Abstract] | |
Investments | Investments The carrying amounts of investments, by category, at June 30, 2015 and March 31, 2015 were as follows: June 30, March 31, (Amounts in thousands) Equity method investments $ 246,391 $ 234,202 Available-for-sale securities 210,570 162,024 Cost method investments 42,048 42,072 $ 499,009 $ 438,298 Equity Method Investments: The carrying amounts of equity method investments at June 30, 2015 and March 31, 2015 were as follows: June 30, Equity Method Investee Ownership Percentage June 30, March 31, (Amounts in thousands) EPIX 31.2% $ 132,760 $ 119,688 Pop 50.0% 92,116 91,683 Other Equity Method Investments (1) Various 21,515 22,831 $ 246,391 $ 234,202 Equity interests in equity method investments for the three months ended June 30, 2015 and 2014 were as follows (income (loss)): Three Months Ended June 30, Equity Method Investee 2015 2014 (Amounts in thousands) EPIX $ 13,072 $ 8,508 Pop (367 ) (2,225 ) Other Equity Method Investments (1) (1,317 ) 11,927 $ 11,388 $ 18,210 _________________________ (1) The Company records its share of the net income or loss of Other Equity Method Investments on a one quarter lag. Equity interest income from Other Equity Method Investments of $11.9 million for the three months ended June 30, 2014 includes a gain on sale of the Company's investment in FEARnet of $11.4 million . EPIX . In April 2008, the Company formed a joint venture with Viacom, its Paramount Pictures unit and Metro-Goldwyn-Mayer Studios to create a premium television channel and subscription video-on-demand service named “EPIX”. The Company invested $80.4 million through September 30, 2010, and no additional amounts have been funded since. During the three months ended June 30, 2014 , the Company received distributions from EPIX of $6.2 million . No distributions were made during the three months ended June 30, 2015 . Since the Company's original investment in April 2008, the Company has received distributions from EPIX of $28.0 million . EPIX Financial Information: The following table presents summarized balance sheet data as of June 30, 2015 and March 31, 2015 for EPIX: June 30, March 31, (Amounts in thousands) Current assets $ 293,314 $ 285,819 Non-current assets $ 305,594 $ 277,888 Current liabilities $ 95,394 $ 121,451 Non-current liabilities $ 25,940 $ 6,753 The following table presents the summarized statement of operations for the three months ended June 30, 2015 and 2014 for EPIX and a reconciliation of the net income reported by EPIX to equity interest income recorded by the Company: Three Months Ended June 30, 2015 2014 (Amounts in thousands) Revenues $ 111,351 $ 91,449 Expenses: Operating expenses 62,937 57,506 Selling, general and administrative expenses 5,789 5,755 Operating income 42,625 28,188 Interest and other expense (509 ) (394 ) Net income $ 42,116 $ 27,794 Reconciliation of net income reported by EPIX to equity interest income: Net income reported by EPIX $ 42,116 $ 27,794 Ownership interest in EPIX 31.15 % 31.15 % The Company's share of net income 13,119 8,658 Eliminations of the Company’s share of profits on licensing sales to EPIX (1) (2,795 ) (1,867 ) Realization of the Company’s share of profits on licensing sales to EPIX (2) 2,748 1,717 Total equity interest income recorded $ 13,072 $ 8,508 __________________ (1) Represents the elimination of the gross profit recognized by the Company on licensing sales to EPIX in proportion to the Company's ownership interest in EPIX. (2) Represents the realization of a portion of the profits previously eliminated. This profit remains eliminated until realized by EPIX. EPIX initially records the license fee for the title as inventory on its balance sheet and amortizes the inventory over the license period. Accordingly, the profit is realized as the inventory on EPIX's books is amortized. Pop. The Company’s investment interest in Pop consists of an equity investment in its common stock units and mandatorily redeemable preferred stock units. The Company's partner in Pop, CBS TVG Inc. ("CBS"), has a call option to purchase a portion of the Company's ownership interest in Pop at fair market value, which would result in CBS owning 80% of Pop, exercisable beginning March 26, 2018 for a period of 30 days . During the three months ended June 30, 2015 , the Company made contributions to Pop of $0.8 million (2014 - $7.5 million ). The mandatorily redeemable preferred stock units carry a dividend rate of 10% compounded annually and are mandatorily redeemable in May 2019 at the stated value plus the dividend return and any additional capital contributions less previous distributions. The mandatorily redeemable preferred stock units were initially recorded based on their estimated fair value, as determined using an option pricing model. The mandatorily redeemable preferred stock units and the 10% dividend are being accreted up to their redemption amount over the ten -year period to the redemption date, which is recorded as income within equity interest. Pop Financial Information: The following table presents summarized balance sheet data as of June 30, 2015 and March 31, 2015 for Pop: June 30, March 31, (Amounts in thousands) Current assets $ 32,104 $ 32,815 Non-current assets $ 186,027 $ 187,985 Current liabilities $ 24,654 $ 26,048 Non-current liabilities $ 5,078 $ 7,196 Redeemable preferred stock $ 414,485 $ 399,247 The following table presents the summarized statement of operations for the three months ended June 30, 2015 and 2014 for Pop and a reconciliation of the net loss reported by Pop to equity interest loss recorded by the Company: Three Months Ended June 30, 2015 2014 (Amounts in thousands) Revenues $ 20,554 $ 18,828 Expenses: Cost of services 9,365 8,490 Selling, marketing, and general and administration 9,892 12,471 Depreciation and amortization 1,944 1,997 Operating loss (647 ) (4,130 ) Other expense — 110 Interest expense, net 111 210 Accretion of redeemable preferred stock units (1) 13,638 10,932 Total interest expense, net 13,749 11,252 Net loss $ (14,396 ) $ (15,382 ) Reconciliation of net loss reported by Pop to equity interest loss: Net loss reported by Pop $ (14,396 ) $ (15,382 ) Ownership interest in Pop 50 % 50 % The Company's share of net loss (7,198 ) (7,691 ) Accretion of dividend and interest income on redeemable preferred stock units (1) 6,819 5,466 Elimination of the Company's share of profits on licensing sales to Pop (133 ) — Realization of the Company’s share of profits on licensing sales to Pop 145 — Total equity interest loss recorded $ (367 ) $ (2,225 ) ___________________ (1) Accretion of mandatorily redeemable preferred stock units represents Pop's 10% dividend and the amortization of discount on its mandatorily redeemable preferred stock units held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest loss. Other Equity Method Investments Defy Media . In June 2007, the Company acquired an interest in Break Media, a multi-platform digital media company and a leader in male-targeted content creation and distribution. In October 2013, Break Media merged with Alloy Digital, a multi-platform digital media company with a strong presence in the youth market, to create Defy Media. The Company's effective economic interest in Defy Media through its investment in Break Media and its direct investment in Defy Media is approximately 16.0% . The Company is accounting for its investment in Defy Media, a limited liability company, under the equity method of accounting due to the Company's board representation that provides significant influence over the investee. Roadside Attractions . Roadside Attractions is an independent theatrical distribution company. The Company owns a 43.0% interest in Roadside Attractions. Pantelion Films. Pantelion Films is a joint venture with Videocine, an affiliate of Televisa, which produces, acquires and distributes a slate of English and Spanish language feature films that target Hispanic moviegoers in the U.S. The Company owns a 49.0% interest in Pantelion Films. Atom Tickets (formerly MovieFriends). Atom Tickets is a theatrical movie discovery service. The Company made initial investments totaling $4.3 million in Atom Tickets during the year ended March 31, 2015. The Company owns an interest of approximately 18.1% in Atom Tickets. The Company is accounting for its investment in Atom Tickets, a limited liability company, under the equity method of accounting due to the Company's board representation that provides significant influence over the investee. Tribeca Short List. Tribeca Short List is a subscription video-on-demand (SVOD) service. The Company made an initial investment of $2.1 million during the year ended March 31, 2015. The Company holds a 75.0% economic interest, however, the power to direct the activities that most significantly impact the economic performance of Tribeca Short List is shared equally with Tribeca Enterprises. Accordingly, the Company's interest in Tribeca Short List is being accounted for under the equity method of accounting. Available-for-Sale Securities: The cost basis, unrealized gains and fair market value of available-for-sale securities are set forth below: June 30, March 31, (Amounts in thousands) Cost basis $ 158,916 $ 158,916 Gross unrealized gain 51,654 3,108 Fair value $ 210,570 $ 162,024 Starz. At June 30, 2015 and March 31, 2015 , available-for-sale securities consisted of the Company's minority interest in Starz. On March 27, 2015, pursuant to the terms of a stock exchange agreement entered into on February 10, 2015 (the "Exchange Agreement"), the Company exchanged 4,967,695 of its newly issued common shares for 2,118,038 shares of Series A common stock of Starz and 2,590,597 shares of Series B common stock of Starz held by certain affiliates of John C. Malone ("Dr. Malone") (the exchange transaction, the "Exchange" ). The Exchange Agreement placed certain restrictions on the ability to transfer the shares issued by the Company. The Starz shares acquired by the Company represent approximately 14.7% of the total voting power of the issued and outstanding Starz common stock as of June 30, 2015 . However, under the Exchange Agreement, the Company granted an irrevocable proxy to Dr. Malone and the affiliates of Dr. Malone to vote the shares the Company acquired except with respect to proposals related to extraordinary transactions, including any proposals related to any sale or issuance of securities, or any business combination, merger, consolidation, liquidation, reorganization, recapitalization, sale or disposition of all or substantially all of Starz's assets or similar extraordinary transaction, whether or not involving the Company. The Company classifies the Series A common stock of Starz within Level 1 of the fair value hierarchy as the valuation inputs are based on quoted prices in active markets (see Note 8). The Series B common stock of Starz are considered a Level 2 security because the quoted market prices are based on infrequent transactions. Therefore, the fair value of the Series B common stock, which is convertible, at the holder’s option, into Series A common stock of Starz is based on the quoted market price of the Series A common stock, which is an equivalent security other than for the voting rights. Cost Method Investments: Telltale. Telltale Games ("Telltale") is a creator, developer and publisher of interactive software episodic games based upon popular stories and characters across all major gaming and entertainment platforms. In February 2015, the Company invested $40.0 million in Telltale, which consisted of a cash investment in Telltale of $28.0 million in exchange for 2,628,072 of Series D Convertible Preferred Stock, and 361,229 newly issued common shares of the Company with a fair value of approximately $12.0 million in exchange for approximately 1,126,316 existing common shares of Telltale, representing in the aggregate an approximately 14% economic interest in Telltale. Next Games. Next Games is a mobile games development company headquartered in Helsinki, Finland, with a focus on crafting visually impressive, highly engaging games. In July 2014, the Company invested $2.0 million in Next Games for a small minority ownership interest. |
Other Assets
Other Assets | 3 Months Ended |
Jun. 30, 2015 | |
Other Assets, Unclassified [Abstract] | |
Other Assets | Other Assets The composition of the Company’s other assets is as follows as of June 30, 2015 and March 31, 2015 : June 30, March 31, (Amounts in thousands) Deferred financing costs, net of accumulated amortization $ 26,936 $ 28,060 Prepaid expenses and other 47,228 45,537 Finite-lived intangible assets 1,114 1,187 $ 75,278 $ 74,784 Deferred Financing Costs . Deferred financing costs primarily include costs incurred in connection with the Company's various debt issuances (see Note 5). Prepaid Expenses and Other . Prepaid expenses and other primarily include prepaid expenses, security deposits, and other assets. Finite-lived Intangible Assets. Finite-lived intangibles consist primarily of sales agency relationships and trademarks. |
Corporate Debt
Corporate Debt | 3 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Corporate Debt | Corporate Debt The total carrying values of corporate debt of the Company, excluding film obligations and production loans, were as follows as of June 30, 2015 and March 31, 2015 : June 30, March 31, (Amounts in thousands) Senior revolving credit facility $ — $ — 5.25% Senior Notes 225,000 225,000 Term Loan Due 2022 400,000 375,000 Convertible senior subordinated notes, net of unamortized discount of $3,387 (March 31, 2015 - $3,891) 98,463 114,126 $ 723,463 $ 714,126 The following table sets forth future annual contractual principal payment commitments of corporate debt as of June 30, 2015 : Conversion Price Per Share at June 30, 2015 Maturity Date Year Ended March 31, Debt Type 2016 2017 2018 2019 2020 Thereafter Total (Amounts in thousands) Senior revolving credit facility N/A September 2017 $ — $ — $ — $ — $ — $ — $ — 5.25% Senior Notes N/A August 2018 — — — 225,000 — — 225,000 Term Loan Due 2022 N/A March 2022 — — — — — 400,000 400,000 Principal amounts of convertible senior subordinated notes: January 2012 4.00% Notes $10.36 January 2017 — 41,850 — — — — 41,850 April 2013 1.25% Notes $29.59 April 2018 — — — 60,000 — — 60,000 $ — $ 41,850 $ — $ 285,000 $ — $ 400,000 726,850 Less aggregate unamortized discount (3,387 ) $ 723,463 Senior Revolving Credit Facility Availability of Funds. The senior revolving credit facility provides for borrowings and letters of credit up to an aggregate of $800 million , and at June 30, 2015 there was $800.0 million available ( March 31, 2015 — $800.0 million ). The availability of funds is limited by a borrowing base and also reduced by outstanding letters of credit which amounted to nil at June 30, 2015 ( March 31, 2015 — nil ). Maturity Date. September 27, 2017. Interest. Interest is payable at an alternative base rate, as defined, plus 1.5% , or LIBOR plus 2.5% as designated by the Company. Commitment Fee. The Company is required to pay a quarterly commitment fee of 0.375% to 0.5% per annum, depending on the average balance of borrowings outstanding during the period, on the total senior revolving credit facility of $800 million less the amount drawn. Security. Obligations are secured by collateral (as defined in the credit agreement) granted by the Company and certain subsidiaries of the Company, as well as a pledge of equity interests in certain of the Company’s subsidiaries. Covenants. The senior revolving credit facility contains a number of covenants that, among other things, require the Company to satisfy certain financial covenants and restrict the ability of the Company to incur additional debt, pay dividends, make certain investments and acquisitions, repurchase its stock, prepay certain indebtedness, create liens, enter into agreements with affiliates, modify the nature of its business, enter into sale-leaseback transactions, transfer and sell material assets and merge or consolidate. As of June 30, 2015 , the Company was in compliance with all applicable covenants. Change in Control. The Company may also be subject to an event of default upon a change in control (as defined in the credit agreement) which, among other things, includes a person or group acquiring ownership or control in excess of 50% of the Company’s common shares. 5.25% Senior Notes Issuance Date. On July 19, 2013, Lions Gate Entertainment Corp. issued $225.0 million aggregate principal amount of 5.25% Senior Secured Second-Priority Notes (the " 5.25% Senior Notes"). Interest. Interest is payable semi-annually on February 1 and August 1 of each year at a rate of 5.25% per year, and commenced on February 1, 2014. Maturity Date. August 1, 2018. Covenants. The 5.25% Senior Notes contain certain restrictions and covenants that, subject to certain exceptions, limit the Company’s ability to incur additional indebtedness, pay dividends or repurchase the Company’s common shares, make certain loans or investments, and sell or otherwise dispose of certain assets subject to certain conditions, among other limitations. As of June 30, 2015 , the Company was in compliance with all applicable covenants. Term Loan Due 2022 Issuance Date. On March 17, 2015, Lions Gate Entertainment Corp. entered into a second lien credit and guarantee agreement (the "Credit Agreement"), and pursuant to the Credit Agreement, borrowed a term loan in an aggregate amount of $375 million (the "Term Loan Due 2022"). In May 2015, Lions Gate Entertainment Corp. amended the Credit Agreement governing its Term Loan Due 2022, and pursuant to the amended Credit Agreement, borrowed an additional term loan in an aggregate amount of $25.0 million . Contemporaneously with the issuance of the Term Loan Due 2022 (which carries a fixed interest rate of 5.00% ), the Company used a portion of the proceeds to redeem its $225.0 million principal amount term loan (the "Term Loan Due 2020") (which carried a variable interest rate of LIBOR, subject to a 1.00% floor, plus 4.00% ). Interest. Interest on the Term Loan Due 2022 is payable on the last business day of each April, July, October and January at a rate of 5.00% per year. Maturity Date. The Term Loan Due 2022 matures on March 17, 2022. Covenants. Substantially similar to the 5.25% Senior Notes discussed above. As of June 30, 2015 , the Company was in compliance with all applicable covenants. Convertible Senior Subordinated Notes Outstanding Amount and Terms. The following table sets forth the convertible senior subordinated notes outstanding and certain key terms of these notes at June 30, 2015 and March 31, 2015 : Maturity Date Conversion Price Per Share at June 30, 2015 June 30, 2015 March 31, 2015 Convertible Senior Subordinated Notes Principal Unamortized Discount Net Carrying Amount Principal Unamortized Discount Net Carrying Amount (Amounts in thousands) April 2009 3.625% Notes N/A N/A $ — $ — $ — $ 16,167 $ — $ 16,167 January 2012 4.00% Notes January 11, 2017 $10.36 41,850 (3,387 ) 38,463 41,850 (3,891 ) 37,959 April 2013 1.25% Notes April 15, 2018 $29.59 60,000 — 60,000 60,000 — 60,000 $ 101,850 $ (3,387 ) $ 98,463 $ 118,017 $ (3,891 ) $ 114,126 April 2009 3.625% Notes: On March 17, 2015, the April 2009 3.625% Notes were called for redemption and in April 2015, the holders of the notes converted substantially all of the outstanding principal amounts into common shares. January 2012 4.00% Notes: In January 2012, LGEI issued approximately $45.0 million of January 2012 4.00% Notes, of which $10.1 million was allocated to the equity component. Interest is payable semi-annually on January 15 and July 15 of each year. April 2013 1.25% Notes: In April 2013, LGEI issued approximately $60.0 million in aggregate principal amount of April 2013 1.25% Notes. Interest is payable semi-annually on April 15 and October 15 of each year, and commenced on October 15, 2013. Conversion Features: The convertible senior subordinated notes are convertible, at any time, into the number of common shares of the Company determined by the principal amount being converted divided by the conversion price, subject to adjustment in certain circumstances. The January 2012 4.00% Notes provide that upon conversion, the Company has the option to deliver, in lieu of common shares, cash or a combination of cash and common shares of the Company. Accounting guidance require that convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) are recorded by separately accounting for the liability and equity component (i.e., conversion feature), thereby reducing the principal amount with a debt discount that is amortized as interest expense over the expected life of the note using the effective interest method. The effective interest rate on the liability component of the January 2012 4.00% Notes is 9.56% . The April 2013 1.25% Notes are convertible only into the Company's common shares and do not carry an option to be settled in cash upon conversion, and accordingly, have been recorded at their principal amount (not reduced by a debt discount for the equity component). Conversions. The following conversions were completed with respect to the Company's convertible senior subordinated notes in the three months ended June 30, 2015 and 2014 : Three Months Ended June 30, 2015 2014 (Amounts in thousands, except share amounts) April 2009 3.625% Notes Principal amount converted $ 16,162 $ 10 Common shares issued upon conversion 1,983,058 1,212 Weighted average conversion price per share $ 8.15 $ 8.25 October 2004 2.9375% Notes Principal amount converted $ — $ 99 Common shares issued upon conversion — 8,634 Weighted average conversion price per share $ — $ 11.46 Total Principal amount converted $ 16,162 $ 109 Common shares issued upon conversion 1,983,058 9,846 Weighted average conversion price per share $ 8.15 $ 11.07 Interest Expense. Interest expense recognized for the convertible senior subordinated notes for the three months ended June 30, 2015 and 2014 is presented below: Three Months Ended June 30, 2015 2014 (Amounts in thousands) Interest Expense Contractual interest coupon $ 549 $ 973 Amortization of discount on liability component and debt issuance costs 517 1,619 $ 1,066 $ 2,592 |
Participations and Residuals
Participations and Residuals | 3 Months Ended |
Jun. 30, 2015 | |
Participations And Residuals [abstract] | |
Participations And Residuals | Participations and Residuals The Company expects approximately 67% of accrued participations and residuals will be paid during the one -year period ending June 30, 2016 . Theatrical Slate Participation On March 10, 2015, the Company entered into a theatrical slate participation arrangement with TIK Films (U.S.), Inc. and TIK Films (Hong Kong) Limited (collectively, "TIK Films"), both wholly owned subsidiaries of Hunan TV & Broadcast Intermediary Co. Ltd. Under the arrangement, TIK Films, in general and subject to certain limitations including per picture and annual caps, will contribute a minority share of 25% , of the Company’s production or acquisition costs of “qualifying” theatrical feature films, released during the three -year period ending January 23, 2018, and participate in a pro-rata portion of the pictures’ net profits or losses similar to a co-production arrangement based on the portion of costs funded. The arrangement excludes among others, any theatrical feature film incorporating any elements from the Twilight, Hunger Games or Divergent franchises. The percentage of the contribution could vary on certain pictures. Amounts provided from TIK Films are reflected as a participation liability in the Company's consolidated balance sheet and amounted to $24.9 million at June 30, 2015 (March 31, 2015 - $13.6 million ). The difference between the ultimate participation expected to be paid to TIK Films and the amount provided by TIK Films is amortized as a charge to or a reduction of participation expense under the individual-film-forecast method. |
Film Obligations and Production
Film Obligations and Production Loans | 3 Months Ended |
Jun. 30, 2015 | |
Film Obligations And Production Loans [Abstract] | |
Film Obligations And Production Loans | Film Obligations and Production Loans June 30, March 31, (Amounts in thousands) Film obligations $ 46,656 $ 55,811 Production loans 729,755 600,944 Total film obligations and production loans $ 776,411 $ 656,755 The following table sets forth future annual repayment of film obligations and production loans as of June 30, 2015 : Nine Months Ended March 31, Year Ended March 31, 2016 2017 2018 2019 2020 Thereafter Total (Amounts in thousands) Film obligations $ 40,911 $ 2,964 $ 2,000 $ 1,000 $ — $ — $ 46,875 Production loans 250,646 479,109 — — — — 729,755 $ 291,557 $ 482,073 $ 2,000 $ 1,000 $ — $ — 776,630 Less imputed interest on film obligations (219 ) $ 776,411 Film Obligations Film obligations include minimum guarantees, which represent amounts payable for film rights that the Company has acquired and certain theatrical marketing obligations for amounts received from third parties that are contractually committed for theatrical marketing expenditures associated with specific titles. Production Loans Production loans represent individual loans for the production of film and television programs that the Company produces. The majority of production loans have contractual repayment dates either at or near the expected completion date, with the exception of certain loans containing repayment dates on a longer term basis, and incur interest at rates ranging from 3.29% to 3.54% . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 2 liabilities that are not required to be measured at fair value on a recurring basis include the Company’s convertible senior subordinated notes, production loans, 5.25% Senior Notes, and Term Loan, which are priced using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The Company measures the fair value of its investment in Pop's Mandatorily Redeemable Preferred Stock Units using primarily a discounted cash flow analysis based on the expected cash flows of the investment. The analysis reflects the contractual terms of the investment, including the period to maturity, and uses a discount rate commensurate with the risk associated with the investment. The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of June 30, 2015 and March 31, 2015 : June 30, 2015 March 31, 2015 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in thousands) Available-for-sale securities (see Note 3): Starz Series A common stock (1) $ 94,719 $ — $ 94,719 $ 72,882 $ — $ 72,882 Starz Series B common stock (1) — 115,851 115,851 — 89,142 89,142 Forward exchange contracts (see Note 16) — 8,128 8,128 — 8,335 8,335 Liabilities: Forward exchange contracts (see Note 16) — (1,598 ) (1,598 ) — (2,024 ) (2,024 ) $ 94,719 $ 122,381 $ 217,100 $ 72,882 $ 95,453 $ 168,335 (1) As of August 6, 2015, the fair value of the Company's minority interest in Starz was $168.9 million , compared to the Company's original cost basis of $158.9 million . The following table sets forth the carrying values and fair values of the Company’s investment in Pop's mandatorily redeemable preferred stock units and outstanding debt at June 30, 2015 and March 31, 2015 : June 30, 2015 March 31, 2015 (Amounts in thousands) Carrying Value Fair Value Carrying Value Fair Value (Level 3) (Level 3) Assets: Investment in Pop's Mandatorily Redeemable Preferred Stock Units $ 92,116 $ 110,000 $ 91,683 $ 110,000 Carrying Value Fair Value Carrying Value Fair Value (Level 2) (Level 2) Liabilities: April 2009 3.625% Notes $ — $ — $ 16,167 $ 16,167 January 2012 4.00% Notes 38,463 42,140 37,959 41,473 April 2013 1.25% Notes 60,000 53,710 60,000 53,241 Production loans 729,755 729,755 600,944 600,944 5.25% Senior Notes 225,000 231,750 225,000 233,438 Term Loan 400,000 400,500 375,000 375,938 $ 1,453,218 $ 1,457,855 $ 1,315,070 $ 1,321,201 |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is calculated based on the weighted average common shares outstanding for the period. Basic net income per share for the three months ended June 30, 2015 and 2014 is presented below: Three Months Ended June 30, 2015 2014 (Amounts in thousands, except per share amounts) Basic Net Income Per Common Share: Numerator: Net income $ 40,684 $ 43,261 Denominator: Weighted average common shares outstanding 147,619 138,509 Basic net income per common share $ 0.28 $ 0.31 Diluted net income per common share reflects the potential dilutive effect, if any, of the conversion of convertible senior subordinated notes under the "if converted" method. Diluted net income per common share also reflects share purchase options, including equity-settled share appreciation rights and restricted share units ("RSUs") using the treasury stock method when dilutive, and any contingently issuable shares when dilutive. Diluted net income per common share for the three months ended June 30, 2015 and 2014 is presented below: Three Months Ended June 30, 2015 2014 (Amounts in thousands, except per share amounts) Diluted Net Income Per Common Share: Numerator: Net income $ 40,684 $ 43,261 Add: Interest on convertible notes, net of tax 676 1,643 Numerator for diluted net income per common share $ 41,360 $ 44,904 Denominator: Weighted average common shares outstanding 147,619 138,509 Effect of dilutive securities: Conversion of notes 6,325 10,909 Share purchase options 3,130 2,366 Restricted share units 424 426 Adjusted weighted average common shares outstanding 157,498 152,210 Diluted net income per common share $ 0.26 $ 0.30 For the three months ended June 30, 2015 and 2014 , the outstanding common shares issuable presented below were excluded from diluted net income per common share because their inclusion would have had an anti-dilutive effect. Three Months Ended June 30, 2015 2014 (Amounts in thousands) Anti-dilutive shares issuable Share purchase options 3,945 5,107 Restricted share units 67 288 Contingently issuable shares 397 275 Total weighted average anti-dilutive shares issuable excluded from diluted net income per common share 4,409 5,670 |
Capital Stock
Capital Stock | 3 Months Ended |
Jun. 30, 2015 | |
Equity and Share-based Compensation [Abstract] | |
Capital Stock | Capital Stock (a) Common Shares The Company had 500 million authorized common shares at June 30, 2015 and March 31, 2015 . The table below outlines common shares reserved for future issuance: June 30, March 31, (Amounts in thousands) Stock options outstanding, average exercise price $23.61 (March 31, 2015 - $22.22) 14,246 12,215 Restricted share units — unvested 1,503 1,662 Share purchase options and restricted share units available for future issuance 4,767 7,163 Shares issuable upon conversion of April 2009 3.625% Notes at conversion price of $8.15 per share at March 31, 2015 — 1,984 Shares issuable upon conversion of January 2012 4.00% Notes at conversion price of $10.36 per share (March 31, 2015 - $10.38) 4,040 4,032 Shares issuable upon conversion of April 2013 1.25% Notes at conversion price of $29.59 per share (March 31, 2015 - $29.65) 2,028 2,024 Shares reserved for future issuance 26,584 29,080 In September 2012, the Company adopted the 2012 Performance Incentive Plan, as amended on September 9, 2014 (the "2012 Plan"). The 2012 Plan provides for the issuance of up to 27.6 million common shares of the Company, stock options, share appreciation rights, restricted shares, stock bonuses and other forms of awards granted or denominated in common shares or units of common shares of the Company, as well as certain cash bonus awards to eligible directors of the Company, officers or employees of the Company or any of its subsidiaries, and certain consultants and advisors to the Company or any of its subsidiaries. (b) Share-based Compensation The Company recognized the following share-based compensation expense during the three months ended June 30, 2015 , and 2014 : Three Months Ended June 30, 2015 2014 (Amounts in thousands) Compensation Expense: Stock Options $ 9,234 $ 8,643 Restricted Share Units and Other Share-based Compensation 7,357 6,049 Share Appreciation Rights 288 1,729 16,879 16,421 Impact of accelerated vesting on stock options and restricted share units (1) — 1,194 Total share-based compensation expense $ 16,879 $ 17,615 Tax impact (2) (6,190 ) (6,458 ) Reduction in net income $ 10,689 $ 11,157 ____________________________ (1) Represents the impact of the acceleration of certain vesting schedules for stock options and restricted share units pursuant to the severance arrangements related to the integration of the marketing operations of the Company's Lionsgate and Summit film labels. (2) Represents the income tax benefit recognized in the statements of income for share-based compensation arrangements. The following table sets forth the stock option and restricted share unit activity during the three months ended June 30, 2015 : Stock Options Weighted-Average Exercise Price Restricted Share Units Weighted-Average Grant-Date Fair Value Outstanding at March 31, 2015 13,214,696 $21.26 1,662,028 $28.10 Granted 2,222,298 $30.62 808,470 $30.97 Options exercised or RSUs vested (301,825 ) $14.05 (946,326 ) $28.90 Forfeited or expired (1,929 ) $23.75 (21,243 ) $30.60 Outstanding at June 30, 2015 15,133,240 $22.78 1,502,929 $29.10 During the three months ended June 30, 2014, 75,000 cash-settled share appreciation rights were exercised resulting in a cash payment of $1.7 million . The excess tax benefits realized from tax deductions associated with option exercises and RSU activity were insignificant and $2.8 million for the three months ended June 30, 2015 and 2014 , respectively. Total unrecognized compensation cost related to unvested stock options and restricted share unit awards at June 30, 2015 are $66.2 million and $31.1 million , respectively, and are expected to be recognized over a weighted average period of 1.9 and 1.7 years, respectively. (c) Dividends On June 15, 2015, the Company's Board of Directors declared a quarterly cash dividend of $0.07 per common share payable on August 7, 2015, to shareholders of record as of June 30, 2015. As of June 30, 2015 , the Company had $10.4 million of cash dividends payable included in accounts payable and accrued liabilities on the unaudited condensed consolidated balance sheet. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision for the three months ended June 30, 2015 and 2014 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 before income taxes for the quarter, plus or minus the tax effects of items that relate discretely to the quarter, if any. The Company's effective tax rate differs from the federal statutory rate and has changed from the prior period and could fluctuate significantly in the future, as the Company's effective tax rates are affected by many factors, including the overall level of pre-tax income, the mix of pre-tax income generated across the various jurisdictions in which the Company operates, changes in tax laws and regulations in those jurisdictions, changes in valuation allowances on its deferred tax assets, tax planning strategies available to the Company and other discrete items. |
Government Assistance
Government Assistance | 3 Months Ended |
Jun. 30, 2015 | |
Government Assistance [Abstract] | |
Government Assistance | Government Assistance Tax credits earned for film and television production activity for the three months ended June 30, 2015 and 2014 totaled $17.8 million and $77.5 million , respectively and are recorded as a reduction of the cost of the related film and television program. Accounts receivable at June 30, 2015 includes $213.6 million with respect to tax credits receivable (March 31, 2015 - $219.2 million ). The Company is subject to routine inquiries and review by regulatory authorities of its various incentive claims which have been received or are receivable. Adjustments of claims have generally not been material historically. |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s reportable segments are determined based on the distinct nature of their operations and each segment is a strategic business unit that offers different products and services and is managed separately. The Company has two reportable business segments as of June 30, 2015 : Motion Pictures and Television Production. Motion Pictures 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 programming. Segment information by business unit is as follows: Three Months Ended June 30, 2015 2014 (Amounts in thousands) Segment revenues Motion Pictures $ 275,387 $ 331,916 Television Production 133,554 117,467 $ 408,941 $ 449,383 Direct operating expenses Motion Pictures $ 129,355 $ 147,194 Television Production 100,955 91,679 $ 230,310 $ 238,873 Distribution and marketing Motion Pictures $ 62,466 $ 88,605 Television Production 9,458 8,716 $ 71,924 $ 97,321 Gross segment contribution Motion Pictures $ 83,566 $ 96,117 Television Production 23,141 17,072 $ 106,707 $ 113,189 Segment general and administration Motion Pictures $ 18,202 $ 17,353 Television Production 4,383 3,410 $ 22,585 $ 20,763 Segment profit Motion Pictures $ 65,364 $ 78,764 Television Production 18,758 13,662 $ 84,122 $ 92,426 Gross segment contribution is defined as segment revenue less segment direct operating and distribution and marketing expenses. Segment profit is defined as segment revenue less segment direct operating, distribution and marketing, and general and administration expenses. The reconciliation of total segment profit to the Company’s income before income taxes is as follows: Three Months Ended June 30, 2015 2014 (Amounts in thousands) Company’s total segment profit $ 84,122 $ 92,426 Shared services and corporate expenses: Share-based compensation expense (16,879 ) (16,421 ) Restructuring and other items (1) — (4,888 ) Other shared services and corporate expenses (21,248 ) (22,007 ) Total shared services and corporate expenses (38,127 ) (43,316 ) Depreciation and amortization (1,830 ) (1,346 ) Operating income 44,165 47,764 Interest expense (12,625 ) (12,972 ) Interest and other income 600 1,018 Equity interests income 11,388 18,210 Income before income taxes $ 43,528 $ 54,020 ________________________ (1) Restructuring and other items includes certain unusual items, such as severance and restructuring charges, and certain transaction related costs, when applicable. Amounts in the three months ended June 30, 2014 primarily represent severance costs associated with the integration of the marketing operations of the Company's Lionsgate and Summit film labels and costs related to the move of our international sales and distribution organization to the United Kingdom. Approximately $1.2 million of the costs are non-cash charges resulting from the acceleration of vesting of stock awards (see Note 10). The following table sets forth significant assets as broken down by segment and other unallocated assets as of June 30, 2015 and March 31, 2015 : June 30, 2015 March 31, 2015 Motion Pictures Television Production Total Motion Pictures Television Production Total (Amounts in thousands) Significant assets by segment Accounts receivable $ 399,041 $ 362,175 $ 761,216 $ 538,515 $ 353,365 $ 891,880 Investment in films and television programs, net 1,264,998 274,830 1,539,828 1,116,909 264,920 1,381,829 Goodwill 294,367 28,961 323,328 294,367 28,961 323,328 $ 1,958,406 $ 665,966 $ 2,624,372 $ 1,949,791 $ 647,246 $ 2,597,037 Other unallocated assets (primarily cash, other assets, and investments) 845,415 695,052 Total assets $ 3,469,787 $ 3,292,089 The following table sets forth acquisition of investment in films and television programs as broken down by segment for the three months ended June 30, 2015 and 2014 : Three Months Ended June 30, 2015 2014 (Amounts in thousands) Acquisition of investment in films and television programs Motion Pictures $ 235,237 $ 152,421 Television Production 80,624 111,430 $ 315,861 $ 263,851 Purchases of property and equipment amounted to $3.2 million and $1.4 million for the three months ended June 30, 2015 and 2014, respectively, primarily pertaining to purchases for the Company’s corporate headquarters. |
Contingencies
Contingencies | 3 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Two purported Lions Gate stockholders have initiated legal proceedings in the United States District Court for the Southern District of New York relating to the March 13, 2014 announcement that the Company had entered into an administrative order with the United States Securities and Exchange Commission (the "SEC") that resolved the SEC’s investigation into transactions that the Company announced on July 20, 2010. These actions are captioned Laborers Pension Trust Fund-Detroit & Vicinity v. Lions Gate Entertainment Corp., et al., Case No. 14 CV 5197 (filed July 11, 2014) and Barger v. Lions Gate Entertainment Corp., Case No. 14 CV 5477 (filed July 21, 2014). The actions allege, among other things, that the Company and certain of its current and former officers and directors violated the federal securities laws by failing to disclose the SEC’s investigation prior to March 13, 2014. On October 28, 2014, the court consolidated the actions under the caption In re Lions Gate Entertainment Corp. Securities Litigation, Case No. 1:14-cv-05197-JGK, and appointed lead plaintiff and lead counsel. Lead plaintiff filed a consolidated amended complaint on December 29, 2014 and a second consolidated amended complaint on March 30, 2015. On April 30, 2015, defendants moved to dismiss the action. The Company does not believe the action has any merit and intends to vigorously defend against it. In addition, on May 16, 2014, the Company received a letter from another purported stockholder, Arkansas Teacher Retirement System, demanding that the Company seek to recover the costs of the SEC investigation, including the fine paid, from the directors who were on the board (and certain officers) at the time the July 20, 2010 transactions occurred. On August 6, 2014, the board created a Special Committee of independent directors (composed of Mr. Frank Giustra and Mr. Gordon Crawford) to consider the demand. On October 1, 2014, the Arkansas Teacher Retirement System filed a petition in the Supreme Court of British Columbia seeking an order granting it leave to prosecute the claims in the name and on behalf of Lions Gate. The Special Committee concluded that commencing an action in British Columbia against the proposed defendants (or any of them) as demanded by the Arkansas Teacher Retirement System would not be in the best interests of the Company, and the Company has taken steps to oppose the petition, including through filing materials in opposition in December 2014 and January 2015. The Arkansas Teacher Retirement System has filed materials in reply. The parties are now arranging a hearing date, which is expected to be in the week of November 23, 2015. From time to time, the Company is involved in other claims and legal proceedings arising in the normal course of business. While the resolution of these matters cannot be predicted with certainty, we do not believe, based on current knowledge, that the outcome of any currently pending legal proceedings in which the Company is currently involved will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flow. |
Consolidating Financial Informa
Consolidating Financial Information - Convertible Senior Subordinated Notes | 3 Months Ended |
Jun. 30, 2015 | |
Convertible Senior Subordinated Notes [Member] | |
Consolidating Financial Information [Line Items] | |
Consolidating Financial Information - Convertible Senior Subordinated Notes | Consolidating Financial Information — Convertible Senior Subordinated Notes The January 2012 4.00% Notes and the April 2013 1.25% Notes by their terms, are fully and unconditionally guaranteed by the Company. LGEI, the issuer of the January 2012 4.00% Notes, and the April 2013 1.25% Notes that are guaranteed by the Company, is 100% owned by the parent company guarantor, Lions Gate Entertainment Corp. The following tables present condensed consolidating financial information as of June 30, 2015 and March 31, 2015 , and for the three months ended June 30, 2015 and 2014 for (1) the Company, on a stand-alone basis, (2) LGEI, on a stand-alone basis, (3) the non-guarantor subsidiaries of the Company (including the subsidiaries of LGEI), on a combined basis (collectively, the “Non-guarantor Subsidiaries”) and (4) the Company, on a consolidated basis. As of June 30, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) BALANCE SHEET Assets Cash and cash equivalents $ 15,111 $ 106,833 $ 74,606 $ — $ 196,550 Restricted cash — 2,508 — — 2,508 Accounts receivable, net 613 9,839 750,764 — 761,216 Investment in films and television programs, net — 6,406 1,533,422 — 1,539,828 Property and equipment, net — 26,602 1,752 — 28,354 Investments 40,048 8,770 450,191 — 499,009 Goodwill 10,172 — 313,156 — 323,328 Other assets 8,574 62,684 9,809 (5,789 ) 75,278 Deferred tax assets 9,377 33,135 1,204 — 43,716 Subsidiary investments and advances 1,519,199 1,511,389 2,739,071 (5,769,659 ) — $ 1,603,094 $ 1,768,166 $ 5,873,975 $ (5,775,448 ) $ 3,469,787 Liabilities and Shareholders’ Equity (Deficiency) Senior revolving credit facility $ — $ — $ — $ — $ — 5.25% Senior Notes 225,000 — — — 225,000 Term Loan 400,000 — — — 400,000 Accounts payable and accrued liabilities 22,067 57,225 141,022 — 220,314 Participations and residuals — 3,663 498,097 — 501,760 Film obligations and production loans — — 776,411 — 776,411 Convertible senior subordinated notes — 98,463 — — 98,463 Deferred revenue — 7,448 284,364 — 291,812 Intercompany payable — 1,726,280 2,640,601 (4,366,881 ) — Shareholders’ equity (deficiency) 956,027 (124,913 ) 1,533,480 (1,408,567 ) 956,027 $ 1,603,094 $ 1,768,166 $ 5,873,975 $ (5,775,448 ) $ 3,469,787 Three Months Ended June 30, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) STATEMENT OF INCOME Revenues $ — $ 2,105 $ 406,999 $ (163 ) $ 408,941 EXPENSES: Direct operating — (1,504 ) 231,814 — 230,310 Distribution and marketing — 522 71,402 — 71,924 General and administration 858 36,916 23,332 (394 ) 60,712 Depreciation and amortization — 1,551 279 — 1,830 Total expenses 858 37,485 326,827 (394 ) 364,776 OPERATING INCOME (LOSS) (858 ) (35,380 ) 80,172 231 44,165 Other expenses (income): Interest expense 8,985 53,542 42,160 (92,062 ) 12,625 Interest and other income (50,534 ) (162 ) (41,841 ) 91,937 (600 ) Total other expenses (income) (41,549 ) 53,380 319 (125 ) 12,025 INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES 40,691 (88,760 ) 79,853 356 32,140 Equity interests income (loss) 677 89,484 11,848 (90,621 ) 11,388 INCOME (LOSS) BEFORE INCOME TAXES 41,368 724 91,701 (90,265 ) 43,528 Income tax provision (benefit) 684 47 6,092 (3,979 ) 2,844 NET INCOME (LOSS) 40,684 677 85,609 (86,286 ) 40,684 Foreign currency translation adjustments, net of tax 45,731 45,915 (1,543 ) (86,613 ) 3,490 Net unrealized gain on available-for-sale securities, net of tax — — 42,234 — 42,234 Net unrealized gain on foreign exchange contracts, net of tax — — 7 — 7 COMPREHENSIVE INCOME (LOSS) $ 86,415 $ 46,592 $ 126,307 $ (172,899 ) $ 86,415 Three Months Ended June 30, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) STATEMENT OF CASH FLOWS NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 10,380 $ 62,627 $ (103,890 ) $ — $ (30,883 ) INVESTING ACTIVITIES: Investment in equity method investees — — (800 ) — (800 ) Purchases of property and equipment — (3,124 ) (124 ) — (3,248 ) NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES — (3,124 ) (924 ) — (4,048 ) FINANCING ACTIVITIES: Term Loan - borrowings, net of deferred financing costs of $616 24,384 — — — 24,384 Convertible senior subordinated notes - repurchases — (5 ) — — (5 ) Production loans - borrowings — — 203,087 — 203,087 Production loans - repayments — — (74,276 ) — (74,276 ) Dividends paid (10,187 ) — — — (10,187 ) Excess tax benefits on equity-based compensation awards — 45 — — 45 Exercise of stock options 3,118 — — — 3,118 Tax withholding required on equity awards (16,082 ) — — — (16,082 ) NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,233 40 128,811 — 130,084 NET CHANGE IN CASH AND CASH EQUIVALENTS 11,613 59,543 23,997 — 95,153 FOREIGN EXCHANGE EFFECTS ON CASH (1 ) — (1,299 ) — (1,300 ) CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD 3,499 47,290 51,908 — 102,697 CASH AND CASH EQUIVALENTS — END OF PERIOD $ 15,111 $ 106,833 $ 74,606 $ — $ 196,550 As of March 31, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) BALANCE SHEET Assets Cash and cash equivalents $ 3,499 $ 47,290 $ 51,908 $ — $ 102,697 Restricted cash — 2,508 — — 2,508 Accounts receivable, net 617 7,933 883,330 — 891,880 Investment in films and television programs, net — 6,402 1,375,427 — 1,381,829 Property and equipment, net — 24,938 1,713 — 26,651 Investments 40,072 9,229 388,997 — 438,298 Goodwill 10,172 — 313,156 — 323,328 Other assets 8,109 61,409 11,180 (5,914 ) 74,784 Deferred tax assets 10,524 32,252 7,338 — 50,114 Subsidiary investments and advances 1,385,522 1,378,571 2,571,801 (5,335,894 ) — $ 1,458,515 $ 1,570,532 $ 5,604,850 $ (5,341,808 ) $ 3,292,089 Liabilities and Shareholders’ Equity (Deficiency) Senior revolving credit facility $ — $ — $ — $ — $ — 5.25% Senior Notes 225,000 — — — 225,000 Term Loan 375,000 — — — 375,000 Accounts payable and accrued liabilities 16,228 86,472 229,773 — 332,473 Participations and residuals — 3,417 468,244 — 471,661 Film obligations and production loans — — 656,755 — 656,755 Convertible senior subordinated notes — 114,126 — — 114,126 Deferred revenue — 7,722 267,065 — 274,787 Intercompany payable — 1,530,299 2,547,928 (4,078,227 ) — Shareholders’ equity (deficiency) 842,287 (171,504 ) 1,435,085 (1,263,581 ) 842,287 $ 1,458,515 $ 1,570,532 $ 5,604,850 $ (5,341,808 ) $ 3,292,089 Three Months Ended June 30, 2014 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) STATEMENT OF INCOME Revenues $ — $ 2,896 $ 446,586 $ (99 ) $ 449,383 EXPENSES: Direct operating 2 (829 ) 239,586 114 238,873 Distribution and marketing — 568 96,753 — 97,321 General and administration 564 39,942 23,692 (119 ) 64,079 Depreciation and amortization — 752 594 — 1,346 Total expenses 566 40,433 360,625 (5 ) 401,619 OPERATING INCOME (LOSS) (566 ) (37,537 ) 85,961 (94 ) 47,764 Other expenses (income): Interest expense 7,373 46,575 33,125 (74,101 ) 12,972 Interest and other income (43,039 ) (31 ) (31,933 ) 73,985 (1,018 ) Total other expenses (income) (35,666 ) 46,544 1,192 (116 ) 11,954 INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES 35,100 (84,081 ) 84,769 22 35,810 Equity interests income (loss) 8,550 94,758 18,050 (103,148 ) 18,210 INCOME (LOSS) BEFORE INCOME TAXES 43,650 10,677 102,819 (103,126 ) 54,020 Income tax provision (benefit) 389 2,127 20,477 (12,234 ) 10,759 NET INCOME (LOSS) 43,261 8,550 82,342 (90,892 ) 43,261 Foreign currency translation adjustments, net of tax 671 2,217 (391 ) (1,015 ) 1,482 Net unrealized loss on foreign exchange contracts, net of tax — — (811 ) — (811 ) COMPREHENSIVE INCOME (LOSS) $ 43,932 $ 10,767 $ 81,140 $ (91,907 ) $ 43,932 Three Months Ended June 30, 2014 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) STATEMENT OF CASH FLOWS NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 142,265 $ (26 ) $ (154,873 ) $ — $ (12,634 ) INVESTING ACTIVITIES: Proceeds from the sale of equity method investees — — 14,575 — 14,575 Investment in equity method investees — (2,150 ) (7,500 ) — (9,650 ) Purchases of property and equipment — (1,305 ) (122 ) — (1,427 ) NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES — (3,455 ) 6,953 — 3,498 FINANCING ACTIVITIES: Senior revolving credit facility - borrowings 170,000 — — — 170,000 Senior revolving credit facility - repayments (183,619 ) — — — (183,619 ) Convertible senior subordinated notes - repurchases — (16 ) — — (16 ) Production loans - borrowings — — 207,953 — 207,953 Production loans - repayments — — (36,859 ) — (36,859 ) Repurchase of common shares (109,529 ) — — — (109,529 ) Dividends paid (7,066 ) — — — (7,066 ) Excess tax benefits on equity-based compensation awards — 2,771 — — 2,771 Exercise of stock options 406 — — — 406 Tax withholding required on equity awards (10,247 ) — — — (10,247 ) NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES (140,055 ) 2,755 171,094 — 33,794 NET CHANGE IN CASH AND CASH EQUIVALENTS 2,210 (726 ) 23,174 — 24,658 FOREIGN EXCHANGE EFFECTS ON CASH — — 22 — 22 CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD 8,128 5,999 11,565 — 25,692 CASH AND CASH EQUIVALENTS — END OF PERIOD $ 10,338 $ 5,273 $ 34,761 $ — $ 50,372 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company enters into forward foreign exchange contracts to hedge its foreign currency exposures on future production expenses denominated in various foreign currencies. As of June 30, 2015 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 17 months from June 30, 2015 ): June 30, 2015 Foreign Currency Foreign Currency Amount US Dollar Amount Weighted Average Exchange Rate Per $1 USD (Amounts in millions) (Amounts in millions) British Pound Sterling £9.7 in exchange for $14.8 £0.65 Australian Dollar A$56.8 in exchange for $50.6 A$1.12 Euro €1.5 in exchange for $1.7 €0.93 Canadian Dollar C$3.9 in exchange for $3.2 C$1.20 Changes in the fair value representing a net unrealized fair value gain (loss) on foreign exchange contracts that qualified as effective hedge contracts outstanding during the three months ended June 30, 2015 were gains of less than $0.1 million (2014 - losses of $0.8 million ), and are included in accumulated other comprehensive loss, a separate component of shareholders’ equity. Changes in the fair value representing a net unrealized fair value gain on foreign exchange contracts that did not qualify as effective hedge contracts outstanding during the three months ended June 30, 2015 were $0.1 million (2014 - nil ) and are included in direct operating expenses in the consolidated statement of income. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. As of June 30, 2015 , $8.1 million was included in other assets and $1.6 million in accounts payable and accrued liabilities ( March 31, 2015 - $8.3 million in other assets and $2.0 million in accounts payable and accrued liabilities) in the accompanying consolidated balance sheets related to the Company's use of foreign currency derivatives. The Company classifies its forward foreign exchange contracts within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. During the three months ended June 30, 2015 , the Company did not have any significant amounts reclassified out of accumulated other comprehensive income. |
Supplementary Cash Flow Stateme
Supplementary Cash Flow Statement Information | 3 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplementary Cash Flow Statement Information | Supplementary Cash Flow Statement Information The supplemental schedule of non-cash investing and financing activities for the three months ended June 30, 2015 and 2014 is presented below. Three Months Ended June 30, 2015 2014 (Amounts in thousands) Non-cash financing activities: Accrued dividends (see Note 10) $ 10,376 $ 6,881 Conversions of convertible senior subordinated notes (see Note 5) $ 16,162 $ 109 There were no non-cash investing activities for the three months ended June 30, 2015 and 2014 . |
General (Policies)
General (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lionsgate and all of its majority-owned and controlled subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to quarterly report on Form 10-Q under the Securities Exchange Act of 1934, as amended, and Article 10 of Regulation S-X. 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 consolidated financial statements. Operating results for the three months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2016 . The balance sheet at March 31, 2015 has been derived from the audited 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 consolidated financial statements should be read together with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2015 . Certain amounts presented in prior years have been reclassified to conform to the current year’s presentation. |
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 for investment in films and television programs; estimates of sales returns and other allowances and provisions for doubtful accounts; fair value of equity-based compensation; fair value of assets and liabilities for allocation of the purchase price of companies acquired; income taxes and accruals for contingent liabilities; and impairment assessments for investment in films and television programs, property and equipment, equity investments, goodwill and intangible assets. Actual results could differ from such estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standard update relating to the recognition of revenue from contracts with customers, which will supersede most current U.S. GAAP revenue recognition guidance, including industry-specific guidance. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. In July 2015, the FASB voted to defer the effective date to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods), with early adoption permitted to the original effective date of December 15, 2016. As a result, the guidance will be effective for the Company's fiscal year beginning April 1, 2018, and can be applied either retrospectively or under a cumulative-effect transition method. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. In April 2015, the FASB issued an accounting standards update relating to the presentation of debt issuance costs. The accounting update requires companies to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, rather than as an asset. The guidance is effective for the Company's fiscal year beginning April 1, 2016, with early adoption permitted. The Company plans to adopt the new guidance effective April 1, 2016. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Net Income Per Share | Basic net income per share is calculated based on the weighted average common shares outstanding for the period. Diluted net income per common share reflects the potential dilutive effect, if any, of the conversion of convertible senior subordinated notes under the "if converted" method. Diluted net income per common share also reflects share purchase options, including equity-settled share appreciation rights and restricted share units ("RSUs") using the treasury stock method when dilutive, and any contingently issuable shares when dilutive. |
Investment In Films And Telev29
Investment In Films And Television Programs (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Investment In Films And Television Programs [Abstract] | |
Investment In Films And Television Programs | June 30, March 31, (Amounts in thousands) Motion Pictures Segment - Theatrical and Non-Theatrical Films Released, net of accumulated amortization $ 492,178 $ 507,628 Acquired libraries, net of accumulated amortization 7,609 9,357 Completed and not released 37,523 76,968 In progress 677,964 478,879 In development 25,597 21,054 Product inventory 24,127 23,023 1,264,998 1,116,909 Television Production Segment - Direct-to-Television Programs Released, net of accumulated amortization 201,403 231,470 In progress 68,256 28,585 In development 5,171 4,865 274,830 264,920 $ 1,539,828 $ 1,381,829 |
Schedule of Acquired Libraries Unamortized Costs | The following table sets forth acquired libraries that represent titles released three years prior to the date of acquisition. These libraries are being amortized over their expected revenue stream from the acquisition date over a period up to 20 years: Total Amortization Period Remaining Amortization Period Unamortized Costs Acquired Library Acquisition Date June 30, March 31, (In years) (Amounts in thousands) Artisan Entertainment December 2003 20.00 8.50 $ 3,738 $ 5,122 Summit Entertainment January 2012 20.00 16.50 3,871 4,235 Total acquired libraries $ 7,609 $ 9,357 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments, Cost Method Investments, and Investments in Debt and Equity [Abstract] | |
Carrying Amount of Investments, By Category | The carrying amounts of investments, by category, at June 30, 2015 and March 31, 2015 were as follows: June 30, March 31, (Amounts in thousands) Equity method investments $ 246,391 $ 234,202 Available-for-sale securities 210,570 162,024 Cost method investments 42,048 42,072 $ 499,009 $ 438,298 |
Schedule of Equity Method Investments [Line Items] | |
Carrying Amount of Equity Method Investments | The carrying amounts of equity method investments at June 30, 2015 and March 31, 2015 were as follows: June 30, Equity Method Investee Ownership Percentage June 30, March 31, (Amounts in thousands) EPIX 31.2% $ 132,760 $ 119,688 Pop 50.0% 92,116 91,683 Other Equity Method Investments (1) Various 21,515 22,831 $ 246,391 $ 234,202 |
Equity Method Investee, Income (Loss) | Equity interests in equity method investments for the three months ended June 30, 2015 and 2014 were as follows (income (loss)): Three Months Ended June 30, Equity Method Investee 2015 2014 (Amounts in thousands) EPIX $ 13,072 $ 8,508 Pop (367 ) (2,225 ) Other Equity Method Investments (1) (1,317 ) 11,927 $ 11,388 $ 18,210 _________________________ (1) The Company records its share of the net income or loss of Other Equity Method Investments on a one quarter lag. Equity interest income from Other Equity Method Investments of $11.9 million for the three months ended June 30, 2014 includes a gain on sale of the Company's investment in FEARnet of $11.4 million |
Available-for-sale Securities [Abstract] | |
Available-for-sale Securities | The cost basis, unrealized gains and fair market value of available-for-sale securities are set forth below: June 30, March 31, (Amounts in thousands) Cost basis $ 158,916 $ 158,916 Gross unrealized gain 51,654 3,108 Fair value $ 210,570 $ 162,024 |
EPIX [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Balance Sheet | The following table presents summarized balance sheet data as of June 30, 2015 and March 31, 2015 for EPIX: June 30, March 31, (Amounts in thousands) Current assets $ 293,314 $ 285,819 Non-current assets $ 305,594 $ 277,888 Current liabilities $ 95,394 $ 121,451 Non-current liabilities $ 25,940 $ 6,753 |
Summarized Statement of Operations | The following table presents the summarized statement of operations for the three months ended June 30, 2015 and 2014 for EPIX and a reconciliation of the net income reported by EPIX to equity interest income recorded by the Company: Three Months Ended June 30, 2015 2014 (Amounts in thousands) Revenues $ 111,351 $ 91,449 Expenses: Operating expenses 62,937 57,506 Selling, general and administrative expenses 5,789 5,755 Operating income 42,625 28,188 Interest and other expense (509 ) (394 ) Net income $ 42,116 $ 27,794 Reconciliation of net income reported by EPIX to equity interest income: Net income reported by EPIX $ 42,116 $ 27,794 Ownership interest in EPIX 31.15 % 31.15 % The Company's share of net income 13,119 8,658 Eliminations of the Company’s share of profits on licensing sales to EPIX (1) (2,795 ) (1,867 ) Realization of the Company’s share of profits on licensing sales to EPIX (2) 2,748 1,717 Total equity interest income recorded $ 13,072 $ 8,508 __________________ (1) Represents the elimination of the gross profit recognized by the Company on licensing sales to EPIX in proportion to the Company's ownership interest in EPIX. (2) Represents the realization of a portion of the profits previously eliminated. This profit remains eliminated until realized by EPIX. EPIX initially records the license fee for the title as inventory on its balance sheet and amortizes the inventory over the license period. Accordingly, the profit is realized as the inventory on EPIX's books is amortized. |
Pop [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Balance Sheet | The following table presents summarized balance sheet data as of June 30, 2015 and March 31, 2015 for Pop: June 30, March 31, (Amounts in thousands) Current assets $ 32,104 $ 32,815 Non-current assets $ 186,027 $ 187,985 Current liabilities $ 24,654 $ 26,048 Non-current liabilities $ 5,078 $ 7,196 Redeemable preferred stock $ 414,485 $ 399,247 |
Summarized Statement of Operations | The following table presents the summarized statement of operations for the three months ended June 30, 2015 and 2014 for Pop and a reconciliation of the net loss reported by Pop to equity interest loss recorded by the Company: Three Months Ended June 30, 2015 2014 (Amounts in thousands) Revenues $ 20,554 $ 18,828 Expenses: Cost of services 9,365 8,490 Selling, marketing, and general and administration 9,892 12,471 Depreciation and amortization 1,944 1,997 Operating loss (647 ) (4,130 ) Other expense — 110 Interest expense, net 111 210 Accretion of redeemable preferred stock units (1) 13,638 10,932 Total interest expense, net 13,749 11,252 Net loss $ (14,396 ) $ (15,382 ) Reconciliation of net loss reported by Pop to equity interest loss: Net loss reported by Pop $ (14,396 ) $ (15,382 ) Ownership interest in Pop 50 % 50 % The Company's share of net loss (7,198 ) (7,691 ) Accretion of dividend and interest income on redeemable preferred stock units (1) 6,819 5,466 Elimination of the Company's share of profits on licensing sales to Pop (133 ) — Realization of the Company’s share of profits on licensing sales to Pop 145 — Total equity interest loss recorded $ (367 ) $ (2,225 ) ___________________ (1) Accretion of mandatorily redeemable preferred stock units represents Pop's 10% dividend and the amortization of discount on its mandatorily redeemable preferred stock units held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest loss. |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Other Assets, Unclassified [Abstract] | |
Other Assets | The composition of the Company’s other assets is as follows as of June 30, 2015 and March 31, 2015 : June 30, March 31, (Amounts in thousands) Deferred financing costs, net of accumulated amortization $ 26,936 $ 28,060 Prepaid expenses and other 47,228 45,537 Finite-lived intangible assets 1,114 1,187 $ 75,278 $ 74,784 |
Corporate Debt (Tables)
Corporate Debt (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Carrying Values of Corporate Debt, Excluding Film Obligations and Production Loans | The total carrying values of corporate debt of the Company, excluding film obligations and production loans, were as follows as of June 30, 2015 and March 31, 2015 : June 30, March 31, (Amounts in thousands) Senior revolving credit facility $ — $ — 5.25% Senior Notes 225,000 225,000 Term Loan Due 2022 400,000 375,000 Convertible senior subordinated notes, net of unamortized discount of $3,387 (March 31, 2015 - $3,891) 98,463 114,126 $ 723,463 $ 714,126 |
Future Annual Contractual Principal Payment Commitments Under Corporate Debt | The following table sets forth future annual contractual principal payment commitments of corporate debt as of June 30, 2015 : Conversion Price Per Share at June 30, 2015 Maturity Date Year Ended March 31, Debt Type 2016 2017 2018 2019 2020 Thereafter Total (Amounts in thousands) Senior revolving credit facility N/A September 2017 $ — $ — $ — $ — $ — $ — $ — 5.25% Senior Notes N/A August 2018 — — — 225,000 — — 225,000 Term Loan Due 2022 N/A March 2022 — — — — — 400,000 400,000 Principal amounts of convertible senior subordinated notes: January 2012 4.00% Notes $10.36 January 2017 — 41,850 — — — — 41,850 April 2013 1.25% Notes $29.59 April 2018 — — — 60,000 — — 60,000 $ — $ 41,850 $ — $ 285,000 $ — $ 400,000 726,850 Less aggregate unamortized discount (3,387 ) $ 723,463 |
Convertible Senior Subordinated Notes Outstanding and Certain Key Terms | The following table sets forth the convertible senior subordinated notes outstanding and certain key terms of these notes at June 30, 2015 and March 31, 2015 : Maturity Date Conversion Price Per Share at June 30, 2015 June 30, 2015 March 31, 2015 Convertible Senior Subordinated Notes Principal Unamortized Discount Net Carrying Amount Principal Unamortized Discount Net Carrying Amount (Amounts in thousands) April 2009 3.625% Notes N/A N/A $ — $ — $ — $ 16,167 $ — $ 16,167 January 2012 4.00% Notes January 11, 2017 $10.36 41,850 (3,387 ) 38,463 41,850 (3,891 ) 37,959 April 2013 1.25% Notes April 15, 2018 $29.59 60,000 — 60,000 60,000 — 60,000 $ 101,850 $ (3,387 ) $ 98,463 $ 118,017 $ (3,891 ) $ 114,126 |
Conversions of Convertible Senior Subordinated Notes | The following conversions were completed with respect to the Company's convertible senior subordinated notes in the three months ended June 30, 2015 and 2014 : Three Months Ended June 30, 2015 2014 (Amounts in thousands, except share amounts) April 2009 3.625% Notes Principal amount converted $ 16,162 $ 10 Common shares issued upon conversion 1,983,058 1,212 Weighted average conversion price per share $ 8.15 $ 8.25 October 2004 2.9375% Notes Principal amount converted $ — $ 99 Common shares issued upon conversion — 8,634 Weighted average conversion price per share $ — $ 11.46 Total Principal amount converted $ 16,162 $ 109 Common shares issued upon conversion 1,983,058 9,846 Weighted average conversion price per share $ 8.15 $ 11.07 |
Interest Expense on Convertible Senior Subordinated Notes | Interest expense recognized for the convertible senior subordinated notes for the three months ended June 30, 2015 and 2014 is presented below: Three Months Ended June 30, 2015 2014 (Amounts in thousands) Interest Expense Contractual interest coupon $ 549 $ 973 Amortization of discount on liability component and debt issuance costs 517 1,619 $ 1,066 $ 2,592 |
Film Obligations and Producti33
Film Obligations and Production Loans (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Film Obligations And Production Loans [Abstract] | |
Films Obligations And Production Loans | June 30, March 31, (Amounts in thousands) Film obligations $ 46,656 $ 55,811 Production loans 729,755 600,944 Total film obligations and production loans $ 776,411 $ 656,755 |
Future Annual Repayment of Film Obligations and Production Loans | The following table sets forth future annual repayment of film obligations and production loans as of June 30, 2015 : Nine Months Ended March 31, Year Ended March 31, 2016 2017 2018 2019 2020 Thereafter Total (Amounts in thousands) Film obligations $ 40,911 $ 2,964 $ 2,000 $ 1,000 $ — $ — $ 46,875 Production loans 250,646 479,109 — — — — 729,755 $ 291,557 $ 482,073 $ 2,000 $ 1,000 $ — $ — 776,630 Less imputed interest on film obligations (219 ) $ 776,411 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
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 June 30, 2015 and March 31, 2015 : June 30, 2015 March 31, 2015 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in thousands) Available-for-sale securities (see Note 3): Starz Series A common stock (1) $ 94,719 $ — $ 94,719 $ 72,882 $ — $ 72,882 Starz Series B common stock (1) — 115,851 115,851 — 89,142 89,142 Forward exchange contracts (see Note 16) — 8,128 8,128 — 8,335 8,335 Liabilities: Forward exchange contracts (see Note 16) — (1,598 ) (1,598 ) — (2,024 ) (2,024 ) $ 94,719 $ 122,381 $ 217,100 $ 72,882 $ 95,453 $ 168,335 |
Carrying Values and Fair Values of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis | The following table sets forth the carrying values and fair values of the Company’s investment in Pop's mandatorily redeemable preferred stock units and outstanding debt at June 30, 2015 and March 31, 2015 : June 30, 2015 March 31, 2015 (Amounts in thousands) Carrying Value Fair Value Carrying Value Fair Value (Level 3) (Level 3) Assets: Investment in Pop's Mandatorily Redeemable Preferred Stock Units $ 92,116 $ 110,000 $ 91,683 $ 110,000 Carrying Value Fair Value Carrying Value Fair Value (Level 2) (Level 2) Liabilities: April 2009 3.625% Notes $ — $ — $ 16,167 $ 16,167 January 2012 4.00% Notes 38,463 42,140 37,959 41,473 April 2013 1.25% Notes 60,000 53,710 60,000 53,241 Production loans 729,755 729,755 600,944 600,944 5.25% Senior Notes 225,000 231,750 225,000 233,438 Term Loan 400,000 400,500 375,000 375,938 $ 1,453,218 $ 1,457,855 $ 1,315,070 $ 1,321,201 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic Net Income Per Common Share | Basic net income per share for the three months ended June 30, 2015 and 2014 is presented below: Three Months Ended June 30, 2015 2014 (Amounts in thousands, except per share amounts) Basic Net Income Per Common Share: Numerator: Net income $ 40,684 $ 43,261 Denominator: Weighted average common shares outstanding 147,619 138,509 Basic net income per common share $ 0.28 $ 0.31 |
Diluted Net Income Per Common Share | Diluted net income per common share for the three months ended June 30, 2015 and 2014 is presented below: Three Months Ended June 30, 2015 2014 (Amounts in thousands, except per share amounts) Diluted Net Income Per Common Share: Numerator: Net income $ 40,684 $ 43,261 Add: Interest on convertible notes, net of tax 676 1,643 Numerator for diluted net income per common share $ 41,360 $ 44,904 Denominator: Weighted average common shares outstanding 147,619 138,509 Effect of dilutive securities: Conversion of notes 6,325 10,909 Share purchase options 3,130 2,366 Restricted share units 424 426 Adjusted weighted average common shares outstanding 157,498 152,210 Diluted net income per common share $ 0.26 $ 0.30 |
Anti-dilutive Shares Issuable | For the three months ended June 30, 2015 and 2014 , the outstanding common shares issuable presented below were excluded from diluted net income per common share because their inclusion would have had an anti-dilutive effect. Three Months Ended June 30, 2015 2014 (Amounts in thousands) Anti-dilutive shares issuable Share purchase options 3,945 5,107 Restricted share units 67 288 Contingently issuable shares 397 275 Total weighted average anti-dilutive shares issuable excluded from diluted net income per common share 4,409 5,670 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Equity and Share-based Compensation [Abstract] | |
Common Shares Reserved For Future Issuance | The table below outlines common shares reserved for future issuance: June 30, March 31, (Amounts in thousands) Stock options outstanding, average exercise price $23.61 (March 31, 2015 - $22.22) 14,246 12,215 Restricted share units — unvested 1,503 1,662 Share purchase options and restricted share units available for future issuance 4,767 7,163 Shares issuable upon conversion of April 2009 3.625% Notes at conversion price of $8.15 per share at March 31, 2015 — 1,984 Shares issuable upon conversion of January 2012 4.00% Notes at conversion price of $10.36 per share (March 31, 2015 - $10.38) 4,040 4,032 Shares issuable upon conversion of April 2013 1.25% Notes at conversion price of $29.59 per share (March 31, 2015 - $29.65) 2,028 2,024 Shares reserved for future issuance 26,584 29,080 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Expense | The Company recognized the following share-based compensation expense during the three months ended June 30, 2015 , and 2014 : Three Months Ended June 30, 2015 2014 (Amounts in thousands) Compensation Expense: Stock Options $ 9,234 $ 8,643 Restricted Share Units and Other Share-based Compensation 7,357 6,049 Share Appreciation Rights 288 1,729 16,879 16,421 Impact of accelerated vesting on stock options and restricted share units (1) — 1,194 Total share-based compensation expense $ 16,879 $ 17,615 Tax impact (2) (6,190 ) (6,458 ) Reduction in net income $ 10,689 $ 11,157 ____________________________ (1) Represents the impact of the acceleration of certain vesting schedules for stock options and restricted share units pursuant to the severance arrangements related to the integration of the marketing operations of the Company's Lionsgate and Summit film labels. (2) Represents the income tax benefit recognized in the statements of income for share-based compensation arrangements. |
Schedule of Stock Option and Restricted Share Unit Activity | The following table sets forth the stock option and restricted share unit activity during the three months ended June 30, 2015 : Stock Options Weighted-Average Exercise Price Restricted Share Units Weighted-Average Grant-Date Fair Value Outstanding at March 31, 2015 13,214,696 $21.26 1,662,028 $28.10 Granted 2,222,298 $30.62 808,470 $30.97 Options exercised or RSUs vested (301,825 ) $14.05 (946,326 ) $28.90 Forfeited or expired (1,929 ) $23.75 (21,243 ) $30.60 Outstanding at June 30, 2015 15,133,240 $22.78 1,502,929 $29.10 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information By Business Unit | Segment information by business unit is as follows: Three Months Ended June 30, 2015 2014 (Amounts in thousands) Segment revenues Motion Pictures $ 275,387 $ 331,916 Television Production 133,554 117,467 $ 408,941 $ 449,383 Direct operating expenses Motion Pictures $ 129,355 $ 147,194 Television Production 100,955 91,679 $ 230,310 $ 238,873 Distribution and marketing Motion Pictures $ 62,466 $ 88,605 Television Production 9,458 8,716 $ 71,924 $ 97,321 Gross segment contribution Motion Pictures $ 83,566 $ 96,117 Television Production 23,141 17,072 $ 106,707 $ 113,189 Segment general and administration Motion Pictures $ 18,202 $ 17,353 Television Production 4,383 3,410 $ 22,585 $ 20,763 Segment profit Motion Pictures $ 65,364 $ 78,764 Television Production 18,758 13,662 $ 84,122 $ 92,426 |
Reconciliation Of Total Segment Profit To The Company's Income Before Income Taxes | The reconciliation of total segment profit to the Company’s income before income taxes is as follows: Three Months Ended June 30, 2015 2014 (Amounts in thousands) Company’s total segment profit $ 84,122 $ 92,426 Shared services and corporate expenses: Share-based compensation expense (16,879 ) (16,421 ) Restructuring and other items (1) — (4,888 ) Other shared services and corporate expenses (21,248 ) (22,007 ) Total shared services and corporate expenses (38,127 ) (43,316 ) Depreciation and amortization (1,830 ) (1,346 ) Operating income 44,165 47,764 Interest expense (12,625 ) (12,972 ) Interest and other income 600 1,018 Equity interests income 11,388 18,210 Income before income taxes $ 43,528 $ 54,020 ________________________ (1) Restructuring and other items includes certain unusual items, such as severance and restructuring charges, and certain transaction related costs, when applicable. Amounts in the three months ended June 30, 2014 primarily represent severance costs associated with the integration of the marketing operations of the Company's Lionsgate and Summit film labels and costs related to the move of our international sales and distribution organization to the United Kingdom. Approximately $1.2 million of the costs are non-cash charges resulting from the acceleration of vesting of stock awards (see Note 10). |
Reconciliation of Assets from Segment to Consolidated | The following table sets forth significant assets as broken down by segment and other unallocated assets as of June 30, 2015 and March 31, 2015 : June 30, 2015 March 31, 2015 Motion Pictures Television Production Total Motion Pictures Television Production Total (Amounts in thousands) Significant assets by segment Accounts receivable $ 399,041 $ 362,175 $ 761,216 $ 538,515 $ 353,365 $ 891,880 Investment in films and television programs, net 1,264,998 274,830 1,539,828 1,116,909 264,920 1,381,829 Goodwill 294,367 28,961 323,328 294,367 28,961 323,328 $ 1,958,406 $ 665,966 $ 2,624,372 $ 1,949,791 $ 647,246 $ 2,597,037 Other unallocated assets (primarily cash, other assets, and investments) 845,415 695,052 Total assets $ 3,469,787 $ 3,292,089 |
Acquisition of Investment in Films and Television Programs by Segment | The following table sets forth acquisition of investment in films and television programs as broken down by segment for the three months ended June 30, 2015 and 2014 : Three Months Ended June 30, 2015 2014 (Amounts in thousands) Acquisition of investment in films and television programs Motion Pictures $ 235,237 $ 152,421 Television Production 80,624 111,430 $ 315,861 $ 263,851 |
Consolidating Financial Infor38
Consolidating Financial Information - Convertible Senior Subordinated Notes (Tables) - Convertible Senior Subordinated Notes [Member] | 3 Months Ended |
Jun. 30, 2015 | |
Consolidating Financial Information [Line Items] | |
Consolidated Financial Information - Balance Sheet | As of March 31, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) BALANCE SHEET Assets Cash and cash equivalents $ 3,499 $ 47,290 $ 51,908 $ — $ 102,697 Restricted cash — 2,508 — — 2,508 Accounts receivable, net 617 7,933 883,330 — 891,880 Investment in films and television programs, net — 6,402 1,375,427 — 1,381,829 Property and equipment, net — 24,938 1,713 — 26,651 Investments 40,072 9,229 388,997 — 438,298 Goodwill 10,172 — 313,156 — 323,328 Other assets 8,109 61,409 11,180 (5,914 ) 74,784 Deferred tax assets 10,524 32,252 7,338 — 50,114 Subsidiary investments and advances 1,385,522 1,378,571 2,571,801 (5,335,894 ) — $ 1,458,515 $ 1,570,532 $ 5,604,850 $ (5,341,808 ) $ 3,292,089 Liabilities and Shareholders’ Equity (Deficiency) Senior revolving credit facility $ — $ — $ — $ — $ — 5.25% Senior Notes 225,000 — — — 225,000 Term Loan 375,000 — — — 375,000 Accounts payable and accrued liabilities 16,228 86,472 229,773 — 332,473 Participations and residuals — 3,417 468,244 — 471,661 Film obligations and production loans — — 656,755 — 656,755 Convertible senior subordinated notes — 114,126 — — 114,126 Deferred revenue — 7,722 267,065 — 274,787 Intercompany payable — 1,530,299 2,547,928 (4,078,227 ) — Shareholders’ equity (deficiency) 842,287 (171,504 ) 1,435,085 (1,263,581 ) 842,287 $ 1,458,515 $ 1,570,532 $ 5,604,850 $ (5,341,808 ) $ 3,292,089 As of June 30, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) BALANCE SHEET Assets Cash and cash equivalents $ 15,111 $ 106,833 $ 74,606 $ — $ 196,550 Restricted cash — 2,508 — — 2,508 Accounts receivable, net 613 9,839 750,764 — 761,216 Investment in films and television programs, net — 6,406 1,533,422 — 1,539,828 Property and equipment, net — 26,602 1,752 — 28,354 Investments 40,048 8,770 450,191 — 499,009 Goodwill 10,172 — 313,156 — 323,328 Other assets 8,574 62,684 9,809 (5,789 ) 75,278 Deferred tax assets 9,377 33,135 1,204 — 43,716 Subsidiary investments and advances 1,519,199 1,511,389 2,739,071 (5,769,659 ) — $ 1,603,094 $ 1,768,166 $ 5,873,975 $ (5,775,448 ) $ 3,469,787 Liabilities and Shareholders’ Equity (Deficiency) Senior revolving credit facility $ — $ — $ — $ — $ — 5.25% Senior Notes 225,000 — — — 225,000 Term Loan 400,000 — — — 400,000 Accounts payable and accrued liabilities 22,067 57,225 141,022 — 220,314 Participations and residuals — 3,663 498,097 — 501,760 Film obligations and production loans — — 776,411 — 776,411 Convertible senior subordinated notes — 98,463 — — 98,463 Deferred revenue — 7,448 284,364 — 291,812 Intercompany payable — 1,726,280 2,640,601 (4,366,881 ) — Shareholders’ equity (deficiency) 956,027 (124,913 ) 1,533,480 (1,408,567 ) 956,027 $ 1,603,094 $ 1,768,166 $ 5,873,975 $ (5,775,448 ) $ 3,469,787 |
Consolidated Financial Information - Statement of Income | Three Months Ended June 30, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) STATEMENT OF INCOME Revenues $ — $ 2,105 $ 406,999 $ (163 ) $ 408,941 EXPENSES: Direct operating — (1,504 ) 231,814 — 230,310 Distribution and marketing — 522 71,402 — 71,924 General and administration 858 36,916 23,332 (394 ) 60,712 Depreciation and amortization — 1,551 279 — 1,830 Total expenses 858 37,485 326,827 (394 ) 364,776 OPERATING INCOME (LOSS) (858 ) (35,380 ) 80,172 231 44,165 Other expenses (income): Interest expense 8,985 53,542 42,160 (92,062 ) 12,625 Interest and other income (50,534 ) (162 ) (41,841 ) 91,937 (600 ) Total other expenses (income) (41,549 ) 53,380 319 (125 ) 12,025 INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES 40,691 (88,760 ) 79,853 356 32,140 Equity interests income (loss) 677 89,484 11,848 (90,621 ) 11,388 INCOME (LOSS) BEFORE INCOME TAXES 41,368 724 91,701 (90,265 ) 43,528 Income tax provision (benefit) 684 47 6,092 (3,979 ) 2,844 NET INCOME (LOSS) 40,684 677 85,609 (86,286 ) 40,684 Foreign currency translation adjustments, net of tax 45,731 45,915 (1,543 ) (86,613 ) 3,490 Net unrealized gain on available-for-sale securities, net of tax — — 42,234 — 42,234 Net unrealized gain on foreign exchange contracts, net of tax — — 7 — 7 COMPREHENSIVE INCOME (LOSS) $ 86,415 $ 46,592 $ 126,307 $ (172,899 ) $ 86,415 Three Months Ended June 30, 2014 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) STATEMENT OF INCOME Revenues $ — $ 2,896 $ 446,586 $ (99 ) $ 449,383 EXPENSES: Direct operating 2 (829 ) 239,586 114 238,873 Distribution and marketing — 568 96,753 — 97,321 General and administration 564 39,942 23,692 (119 ) 64,079 Depreciation and amortization — 752 594 — 1,346 Total expenses 566 40,433 360,625 (5 ) 401,619 OPERATING INCOME (LOSS) (566 ) (37,537 ) 85,961 (94 ) 47,764 Other expenses (income): Interest expense 7,373 46,575 33,125 (74,101 ) 12,972 Interest and other income (43,039 ) (31 ) (31,933 ) 73,985 (1,018 ) Total other expenses (income) (35,666 ) 46,544 1,192 (116 ) 11,954 INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES 35,100 (84,081 ) 84,769 22 35,810 Equity interests income (loss) 8,550 94,758 18,050 (103,148 ) 18,210 INCOME (LOSS) BEFORE INCOME TAXES 43,650 10,677 102,819 (103,126 ) 54,020 Income tax provision (benefit) 389 2,127 20,477 (12,234 ) 10,759 NET INCOME (LOSS) 43,261 8,550 82,342 (90,892 ) 43,261 Foreign currency translation adjustments, net of tax 671 2,217 (391 ) (1,015 ) 1,482 Net unrealized loss on foreign exchange contracts, net of tax — — (811 ) — (811 ) COMPREHENSIVE INCOME (LOSS) $ 43,932 $ 10,767 $ 81,140 $ (91,907 ) $ 43,932 |
Consolidated Financial Information - Statement of Cash Flows | Three Months Ended June 30, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) STATEMENT OF CASH FLOWS NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 10,380 $ 62,627 $ (103,890 ) $ — $ (30,883 ) INVESTING ACTIVITIES: Investment in equity method investees — — (800 ) — (800 ) Purchases of property and equipment — (3,124 ) (124 ) — (3,248 ) NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES — (3,124 ) (924 ) — (4,048 ) FINANCING ACTIVITIES: Term Loan - borrowings, net of deferred financing costs of $616 24,384 — — — 24,384 Convertible senior subordinated notes - repurchases — (5 ) — — (5 ) Production loans - borrowings — — 203,087 — 203,087 Production loans - repayments — — (74,276 ) — (74,276 ) Dividends paid (10,187 ) — — — (10,187 ) Excess tax benefits on equity-based compensation awards — 45 — — 45 Exercise of stock options 3,118 — — — 3,118 Tax withholding required on equity awards (16,082 ) — — — (16,082 ) NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,233 40 128,811 — 130,084 NET CHANGE IN CASH AND CASH EQUIVALENTS 11,613 59,543 23,997 — 95,153 FOREIGN EXCHANGE EFFECTS ON CASH (1 ) — (1,299 ) — (1,300 ) CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD 3,499 47,290 51,908 — 102,697 CASH AND CASH EQUIVALENTS — END OF PERIOD $ 15,111 $ 106,833 $ 74,606 $ — $ 196,550 Three Months Ended June 30, 2014 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in thousands) STATEMENT OF CASH FLOWS NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 142,265 $ (26 ) $ (154,873 ) $ — $ (12,634 ) INVESTING ACTIVITIES: Proceeds from the sale of equity method investees — — 14,575 — 14,575 Investment in equity method investees — (2,150 ) (7,500 ) — (9,650 ) Purchases of property and equipment — (1,305 ) (122 ) — (1,427 ) NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES — (3,455 ) 6,953 — 3,498 FINANCING ACTIVITIES: Senior revolving credit facility - borrowings 170,000 — — — 170,000 Senior revolving credit facility - repayments (183,619 ) — — — (183,619 ) Convertible senior subordinated notes - repurchases — (16 ) — — (16 ) Production loans - borrowings — — 207,953 — 207,953 Production loans - repayments — — (36,859 ) — (36,859 ) Repurchase of common shares (109,529 ) — — — (109,529 ) Dividends paid (7,066 ) — — — (7,066 ) Excess tax benefits on equity-based compensation awards — 2,771 — — 2,771 Exercise of stock options 406 — — — 406 Tax withholding required on equity awards (10,247 ) — — — (10,247 ) NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES (140,055 ) 2,755 171,094 — 33,794 NET CHANGE IN CASH AND CASH EQUIVALENTS 2,210 (726 ) 23,174 — 24,658 FOREIGN EXCHANGE EFFECTS ON CASH — — 22 — 22 CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD 8,128 5,999 11,565 — 25,692 CASH AND CASH EQUIVALENTS — END OF PERIOD $ 10,338 $ 5,273 $ 34,761 $ — $ 50,372 |
Derivative Instruments and He39
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Forward Foreign Exchange Contracts | As of June 30, 2015 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 17 months from June 30, 2015 ): June 30, 2015 Foreign Currency Foreign Currency Amount US Dollar Amount Weighted Average Exchange Rate Per $1 USD (Amounts in millions) (Amounts in millions) British Pound Sterling £9.7 in exchange for $14.8 £0.65 Australian Dollar A$56.8 in exchange for $50.6 A$1.12 Euro €1.5 in exchange for $1.7 €0.93 Canadian Dollar C$3.9 in exchange for $3.2 C$1.20 |
Supplementary Cash Flow State40
Supplementary Cash Flow Statement Information (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Schedule of Non-Cash Investing and Financing Activities | The supplemental schedule of non-cash investing and financing activities for the three months ended June 30, 2015 and 2014 is presented below. Three Months Ended June 30, 2015 2014 (Amounts in thousands) Non-cash financing activities: Accrued dividends (see Note 10) $ 10,376 $ 6,881 Conversions of convertible senior subordinated notes (see Note 5) $ 16,162 $ 109 There were no non-cash investing activities for the three months ended June 30, 2015 and 2014 . |
Investment In Films And Telev41
Investment In Films And Television Programs (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2015 | |
Investment In Films And Television Programs [Abstract] | |
Percentage of unamortized film costs, one year | 46.00% |
Percentage of unamortized film costs, three years | 81.00% |
Investment In Films And Telev42
Investment In Films And Television Programs (Schedule of Investment In Films And Television Programs) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Investment in Films and Television Programs [Line Items] | ||
Acquired libraries, net of accumulated amortization | $ 7,609 | $ 9,357 |
Total investment in film and television programs | 1,539,828 | 1,381,829 |
Motion Pictures [Member] | ||
Investment in Films and Television Programs [Line Items] | ||
Total investment in film and television programs | 1,264,998 | 1,116,909 |
Motion Pictures [Member] | Theatrical And Non-Theatrical Films [Member] | ||
Investment in Films and Television Programs [Line Items] | ||
Released, net of accumulated amortization | 492,178 | 507,628 |
Acquired libraries, net of accumulated amortization | 7,609 | 9,357 |
Completed and not released | 37,523 | 76,968 |
In progress | 677,964 | 478,879 |
In development | 25,597 | 21,054 |
Product inventory | 24,127 | 23,023 |
Total investment in film and television programs | 1,264,998 | 1,116,909 |
Television Production [Member] | ||
Investment in Films and Television Programs [Line Items] | ||
Total investment in film and television programs | 274,830 | 264,920 |
Television Production [Member] | Direct-to-Television Programs [Member] | ||
Investment in Films and Television Programs [Line Items] | ||
Released, net of accumulated amortization | 201,403 | 231,470 |
In progress | 68,256 | 28,585 |
In development | 5,171 | 4,865 |
Total investment in film and television programs | $ 274,830 | $ 264,920 |
Investment In Films And Telev43
Investment In Films And Television Programs (Schedule Of Acquired Libraries) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Total acquired libraries | $ 7,609 | $ 9,357 |
Artisan Entertainment [Member] | ||
Total amortization period (in years) | 20 years | |
Remaining amortization period (in years) | 8 years 6 months | |
Total acquired libraries | $ 3,738 | 5,122 |
Summit Entertainment [Member] | ||
Total amortization period (in years) | 20 years | |
Remaining amortization period (in years) | 16 years 6 months | |
Total acquired libraries | $ 3,871 | $ 4,235 |
Maximum [Member] | ||
Total amortization period (in years) | 20 years |
Investments (Investments by Cat
Investments (Investments by Category) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Equity Method Investments, Cost Method Investments, and Investments in Debt and Equity [Abstract] | ||
Equity method investments | $ 246,391 | $ 234,202 |
Available-for-sale securities | 210,570 | 162,024 |
Cost method investments | 42,048 | 42,072 |
Investments | $ 499,009 | $ 438,298 |
Investments (Carrying Amount Of
Investments (Carrying Amount Of Equity Method Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 246,391 | $ 234,202 | ||
EPIX [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 31.15% | 31.15% | ||
Equity method investments | $ 132,760 | 119,688 | ||
Pop [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||
Equity method investments | $ 92,116 | 91,683 | ||
Other Equity Method Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | [1] | $ 21,515 | $ 22,831 | |
[1] | The Company records its share of the net income or loss of Other Equity Method Investments on a one quarter lag. Equity interest income from Other Equity Method Investments of $11.9 million for the three months ended June 30, 2014 includes a gain on sale of the Company's investment in FEARnet of $11.4 million. |
Investments (Equity Method Inve
Investments (Equity Method Investee, Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Schedule of Equity Method Investments [Line Items] | |||
Equity interests income | $ 11,388 | $ 18,210 | |
EPIX [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interests income | 13,072 | 8,508 | |
Pop [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interests income | (367) | (2,225) | |
Other Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interests income | [1] | $ (1,317) | 11,927 |
FEARnet [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Gain on sale of equity method investee | $ 11,400 | ||
[1] | The Company records its share of the net income or loss of Other Equity Method Investments on a one quarter lag. Equity interest income from Other Equity Method Investments of $11.9 million for the three months ended June 30, 2014 includes a gain on sale of the Company's investment in FEARnet of $11.4 million. |
Investments (Equity Method In47
Investments (Equity Method Investments Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 30 Months Ended | 57 Months Ended | 87 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Sep. 30, 2010 | Jun. 30, 2015 | Jun. 30, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in equity method investee | $ 800 | $ 9,650 | ||||
Equity method investments | 246,391 | $ 234,202 | $ 246,391 | $ 246,391 | ||
EPIX [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in equity method investee | $ 80,400 | $ 0 | ||||
Equity method investment distributions received | $ 0 | $ 6,200 | $ 28,000 | |||
Equity method investment, ownership percentage | 31.15% | 31.15% | 31.15% | 31.15% | ||
Equity method investments | $ 132,760 | 119,688 | $ 132,760 | $ 132,760 | ||
Pop [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in equity method investee | $ 800 | $ 7,500 | ||||
Ownership interest percentage after call option, partner in equity method investment | 80.00% | 80.00% | 80.00% | |||
Call option, period exercisable beginning March 26, 2018 | 30 days | |||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | ||
Equity method investments | $ 92,116 | 91,683 | $ 92,116 | $ 92,116 | ||
Defy Media [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Effective economic interest in Defy Media | 16.00% | 16.00% | 16.00% | |||
Roadside Attractions [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 43.00% | 43.00% | 43.00% | |||
Pantelion Films [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | 49.00% | |||
Atom Tickets [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in equity method investee | 4,300 | |||||
Equity method investment, ownership percentage | 18.10% | 18.10% | 18.10% | |||
Tribeca Short List [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in equity method investee | $ 2,100 | |||||
Equity method investment, ownership percentage | 75.00% | 75.00% | 75.00% | |||
Redeemable Preferred Stock [Member] | Pop [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Rate of dividend on preferred stock | 10.00% | |||||
Total accretion period to redemption date of mandatorily redeemable preferred stock units and dividend | 10 years |
Investments (Summarized Balance
Investments (Summarized Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
EPIX [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 293,314 | $ 285,819 |
Non-current assets | 305,594 | 277,888 |
Current liabilities | 95,394 | 121,451 |
Non-current liabilities | 25,940 | 6,753 |
Pop [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 32,104 | 32,815 |
Non-current assets | 186,027 | 187,985 |
Current liabilities | 24,654 | 26,048 |
Non-current liabilities | 5,078 | 7,196 |
Redeemable preferred stock | $ 414,485 | $ 399,247 |
Investments (Summarized Stateme
Investments (Summarized Statement Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Reconciliation of net income (loss) reported by investee to equity interest income (loss): | |||
Total equity interest income (loss) recorded | $ 11,388 | $ 18,210 | |
EPIX [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 111,351 | 91,449 | |
Expenses: | |||
Operating expenses | 62,937 | 57,506 | |
Selling, marketing, general and administrative expenses | 5,789 | 5,755 | |
Operating income (loss) | 42,625 | 28,188 | |
Interest and other income (expense) | (509) | (394) | |
Reconciliation of net income (loss) reported by investee to equity interest income (loss): | |||
Net income (loss) | $ 42,116 | $ 27,794 | |
Ownership interest in investee | 31.15% | 31.15% | |
The Company's share of net income (loss) | $ 13,119 | $ 8,658 | |
Eliminations of the Company's share of profits on licensing sales to investee | [1] | (2,795) | (1,867) |
Realization of the Company's share of profits on licensing sales to investee | [2] | 2,748 | 1,717 |
Total equity interest income (loss) recorded | 13,072 | 8,508 | |
Pop [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 20,554 | 18,828 | |
Expenses: | |||
Cost of services | 9,365 | 8,490 | |
Selling, marketing, general and administrative expenses | 9,892 | 12,471 | |
Depreciation and amortization | 1,944 | 1,997 | |
Operating income (loss) | (647) | (4,130) | |
Other expense | 0 | 110 | |
Interest expense, net | 111 | 210 | |
Accretion of redeemable preferred stock units | [3] | 13,638 | 10,932 |
Total interest expense, net | 13,749 | 11,252 | |
Reconciliation of net income (loss) reported by investee to equity interest income (loss): | |||
Net income (loss) | $ (14,396) | $ (15,382) | |
Ownership interest in investee | 50.00% | 50.00% | |
The Company's share of net income (loss) | $ (7,198) | $ (7,691) | |
Accretion of dividend and interest income on redeemable preferred stock units | [3] | 6,819 | 5,466 |
Eliminations of the Company's share of profits on licensing sales to investee | (133) | 0 | |
Realization of the Company's share of profits on licensing sales to investee | 145 | 0 | |
Total equity interest income (loss) recorded | $ (367) | $ (2,225) | |
[1] | Represents the elimination of the gross profit recognized by the Company on licensing sales to EPIX in proportion to the Company's ownership interest in EPIX. | ||
[2] | Represents the realization of a portion of the profits previously eliminated. This profit remains eliminated until realized by EPIX. EPIX initially records the license fee for the title as inventory on its balance sheet and amortizes the inventory over the license period. Accordingly, the profit is realized as the inventory on EPIX's books is amortized. | ||
[3] | Accretion of mandatorily redeemable preferred stock units represents Pop's 10% dividend and the amortization of discount on its mandatorily redeemable preferred stock units held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest loss. |
Investments (Available-for-sale
Investments (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Cost basis | $ 158,916 | $ 158,916 |
Gross unrealized gain | 51,654 | 3,108 |
Fair value | $ 210,570 | $ 162,024 |
Investments (Available-for-sa51
Investments (Available-for-sale Narrative) (Details) - Starz [Member] - shares | Mar. 27, 2015 | Jun. 30, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Issuance of common shares related to investments, shares | 4,967,695 | |
Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Ownership interest held upon share exchange | 14.70% | |
Series A Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Shares received in exchange (in shares) | 2,118,038 | |
Series B Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Shares received in exchange (in shares) | 2,590,597 |
Investments (Cost Method Invest
Investments (Cost Method Investments) (Details) - USD ($) | 1 Months Ended | ||
Feb. 28, 2015 | Jul. 31, 2014 | Jun. 30, 2015 | |
Telltale [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Cost method investments, amount invested | $ 40,000,000 | ||
Payments to acquire cost method investments | $ 28,000,000 | ||
Cost method investments, ownership percentage | 14.00% | ||
Shares issued to purchase cost method investment (in shares) | 361,229 | ||
Value of shares issued to purchase cost method investment | $ 12,000,000 | ||
Next Games [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Payments to acquire cost method investments | $ 2,000,000 | ||
Common Stock [Member] | Telltale [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Shares received (in shares) | 1,126,316 | ||
Convertible Preferred Stock [Member] | Series D Convertible Preferred Stock [Member] | Telltale [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Shares received (in shares) | 2,628,072 |
Other Assets (Composition Of Ot
Other Assets (Composition Of Other Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Other Assets, Unclassified [Abstract] | ||
Deferred financing costs, net of accumulated amortization | $ 26,936 | $ 28,060 |
Prepaid expenses and other | 47,228 | 45,537 |
Finite-lived intangible assets | 1,114 | 1,187 |
Total other assets | $ 75,278 | $ 74,784 |
Corporate Debt (Narrative - Sen
Corporate Debt (Narrative - Senior Revolving Credit Facility) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Senior Revolving Credit Facility [Member] | ||
Line of Credit Facility [Abstract] | ||
Senior revolving credit facility, available amount | $ 800 | $ 800 |
Senior revolving credit facility, maximum borrowing capacity | $ 800 | |
Change in control, trigger percentage | 50.00% | |
Letter of Credit [Member] | ||
Line of Credit Facility [Abstract] | ||
Letters of credit outstanding, amount | $ 0 | $ 0 |
Minimum [Member] | Senior Revolving Credit Facility [Member] | ||
Line of Credit Facility [Abstract] | ||
Senior revolving credit facility, commitment fee annual percentage | 0.375% | |
Maximum [Member] | Senior Revolving Credit Facility [Member] | ||
Line of Credit Facility [Abstract] | ||
Senior revolving credit facility, commitment fee annual percentage | 0.50% | |
Base Rate [Member] | Senior Revolving Credit Facility [Member] | ||
Line of Credit Facility [Abstract] | ||
Basis spread on variable interest rate | 1.50% | |
LIBOR [Member] | Senior Revolving Credit Facility [Member] | ||
Line of Credit Facility [Abstract] | ||
Basis spread on variable interest rate | 2.50% |
Corporate Debt (Narrative - 5.2
Corporate Debt (Narrative - 5.25% Senior Notes and Term Loan Due 2022) (Details) - USD ($) $ in Thousands | Mar. 17, 2015 | Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Jul. 19, 2013 |
Debt Instrument [Line Items] | |||||
Carrying value of debt outstanding | $ 723,463 | $ 714,126 | |||
5.25% Senior Notes [Member] | Senior Secured Second-Priority Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Coupon rate | 5.25% | 5.25% | |||
Principal amount of notes | $ 225,000 | ||||
Carrying value of debt outstanding | $ 225,000 | $ 225,000 | |||
Term Loan Due 2022 [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Coupon rate | 5.00% | ||||
Carrying value of debt outstanding | $ 375,000 | $ 400,000 | $ 25,000 | $ 375,000 | |
Term Loan Due 2020 [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of notes | $ 225,000 | ||||
Term Loan Due 2020 [Member] | LIBOR [Member] | Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate floor | 1.00% | ||||
Basis spread on variable interest rate | 4.00% |
Corporate Debt (Narrative - Con
Corporate Debt (Narrative - Convertible Senior Subordinated Notes) (Details) - Convertible Senior Subordinated Notes [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Apr. 30, 2013 | Jan. 31, 2012 |
April 2009 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Coupon rate | 3.625% | 3.625% | 3.625% | ||
January 2012 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Coupon rate | 4.00% | ||||
Principal amount of notes | $ 45 | ||||
Equity component | $ 10.1 | ||||
Effective interest rate of liability component | 9.56% | ||||
April 2013 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Coupon rate | 1.25% | ||||
Principal amount of notes | $ 60 |
Corporate Debt (Carrying Values
Corporate Debt (Carrying Values of Corporate Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Mar. 17, 2015 |
Debt Instrument [Line Items] | ||||
Senior revolving credit facility | $ 0 | $ 0 | ||
Corporate debt | 723,463 | 714,126 | ||
Unamortized discount | 3,387 | |||
Senior Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior revolving credit facility | 0 | 0 | ||
Convertible Senior Subordinated Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior revolving credit facility | 0 | 0 | ||
Corporate debt | 98,463 | 114,126 | ||
Unamortized discount | 3,387 | 3,891 | ||
5.25% Senior Notes [Member] | Senior Secured Second-Priority Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Corporate debt | $ 225,000 | $ 225,000 | ||
Coupon rate | 5.25% | 5.25% | ||
Term Loan Due 2022 [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Corporate debt | $ 400,000 | $ 25,000 | $ 375,000 | $ 375,000 |
Coupon rate | 5.00% |
Corporate Debt (Future Annual C
Corporate Debt (Future Annual Contractual Principal Payment Commitments) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Mar. 17, 2015 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Year Ended March 31, 2016 | $ 0 | |||
Year Ended March 31, 2017 | 41,850 | |||
Year Ended March 31, 2018 | 0 | |||
Year Ended March 31, 2019 | 285,000 | |||
Year Ended March 31, 2020 | 0 | |||
Thereafter | 400,000 | |||
Total | 726,850 | |||
Less aggregate unamortized discount | (3,387) | |||
Carrying value of debt outstanding | 723,463 | $ 714,126 | ||
Senior Revolving Credit Facility [Member] | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Year Ended March 31, 2016 | 0 | |||
Year Ended March 31, 2017 | 0 | |||
Year Ended March 31, 2018 | 0 | |||
Year Ended March 31, 2019 | 0 | |||
Year Ended March 31, 2020 | 0 | |||
Thereafter | 0 | |||
Total | 0 | |||
Convertible Senior Subordinated Notes [Member] | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Total | 101,850 | 118,017 | ||
Less aggregate unamortized discount | (3,387) | (3,891) | ||
Carrying value of debt outstanding | 98,463 | 114,126 | ||
5.25% Senior Notes [Member] | Senior Secured Second-Priority Notes [Member] | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Year Ended March 31, 2016 | 0 | |||
Year Ended March 31, 2017 | 0 | |||
Year Ended March 31, 2018 | 0 | |||
Year Ended March 31, 2019 | 225,000 | |||
Year Ended March 31, 2020 | 0 | |||
Thereafter | 0 | |||
Total | 225,000 | |||
Carrying value of debt outstanding | $ 225,000 | $ 225,000 | ||
Coupon rate | 5.25% | 5.25% | ||
Term Loan Due 2022 [Member] | Term Loan [Member] | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Year Ended March 31, 2016 | $ 0 | |||
Year Ended March 31, 2017 | 0 | |||
Year Ended March 31, 2018 | 0 | |||
Year Ended March 31, 2019 | 0 | |||
Year Ended March 31, 2020 | 0 | |||
Thereafter | 400,000 | |||
Total | 400,000 | |||
Carrying value of debt outstanding | $ 400,000 | $ 25,000 | $ 375,000 | $ 375,000 |
Coupon rate | 5.00% | |||
January 2012 Notes [Member] | Convertible Senior Subordinated Notes [Member] | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Year Ended March 31, 2016 | $ 0 | |||
Year Ended March 31, 2017 | 41,850 | |||
Year Ended March 31, 2018 | 0 | |||
Year Ended March 31, 2019 | 0 | |||
Year Ended March 31, 2020 | 0 | |||
Thereafter | 0 | |||
Total | 41,850 | 41,850 | ||
Less aggregate unamortized discount | (3,387) | (3,891) | ||
Carrying value of debt outstanding | $ 38,463 | 37,959 | ||
Conversion price per share (in usd per share) | $ 10.36 | |||
Coupon rate | 4.00% | |||
April 2013 Notes [Member] | Convertible Senior Subordinated Notes [Member] | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
Year Ended March 31, 2016 | $ 0 | |||
Year Ended March 31, 2017 | 0 | |||
Year Ended March 31, 2018 | 0 | |||
Year Ended March 31, 2019 | 60,000 | |||
Year Ended March 31, 2020 | 0 | |||
Thereafter | 0 | |||
Total | 60,000 | 60,000 | ||
Less aggregate unamortized discount | 0 | 0 | ||
Carrying value of debt outstanding | $ 60,000 | $ 60,000 | ||
Conversion price per share (in usd per share) | $ 29.59 | |||
Coupon rate | 1.25% |
Corporate Debt (Convertible Sen
Corporate Debt (Convertible Senior Subordinated Notes Outstanding and Certain Key Terms) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 |
Debt Instrument [Line Items] | |||
Principal amount of debt outstanding | $ 726,850 | ||
Unamortized Discount | (3,387) | ||
Net carrying amount | 723,463 | $ 714,126 | |
Convertible Senior Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt outstanding | 101,850 | 118,017 | |
Unamortized Discount | (3,387) | (3,891) | |
Net carrying amount | 98,463 | 114,126 | |
April 2009 Notes [Member] | Convertible Senior Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt outstanding | 0 | 16,167 | |
Unamortized Discount | 0 | 0 | |
Net carrying amount | $ 0 | $ 16,167 | |
Coupon rate | 3.625% | 3.625% | 3.625% |
January 2012 Notes [Member] | Convertible Senior Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt outstanding | $ 41,850 | $ 41,850 | |
Unamortized Discount | (3,387) | (3,891) | |
Net carrying amount | $ 38,463 | 37,959 | |
Coupon rate | 4.00% | ||
Conversion price per share (in usd per share) | $ 10.36 | ||
April 2013 Notes [Member] | Convertible Senior Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt outstanding | $ 60,000 | 60,000 | |
Unamortized Discount | 0 | 0 | |
Net carrying amount | $ 60,000 | $ 60,000 | |
Coupon rate | 1.25% | ||
Conversion price per share (in usd per share) | $ 29.59 |
Corporate Debt (Conversions of
Corporate Debt (Conversions of Convertible Senior Subordinated Notes) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Debt Instrument [Line Items] | |||
Principal amount converted | $ 16,162 | $ 109 | |
Convertible Senior Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount converted | $ 16,162 | $ 109 | |
Common shares issued upon conversion (in shares) | 1,983,058 | 9,846 | |
Weighted average conversion price per share (in usd per share) | $ 8.15 | $ 11.07 | |
Convertible Senior Subordinated Notes [Member] | April 2009 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount converted | $ 16,162 | $ 10 | |
Common shares issued upon conversion (in shares) | 1,983,058 | 1,212 | |
Weighted average conversion price per share (in usd per share) | $ 8.15 | $ 8.25 | |
Coupon rate | 3.625% | 3.625% | 3.625% |
Convertible Senior Subordinated Notes [Member] | October 2004 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount converted | $ 0 | $ 99 | |
Common shares issued upon conversion (in shares) | 0 | 8,634 | |
Weighted average conversion price per share (in usd per share) | $ 0 | $ 11.46 | |
Coupon rate | 2.9375% | 2.9375% |
Corporate Debt (Interest Expens
Corporate Debt (Interest Expense) (Details) - Convertible Senior Subordinated Notes [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||
Contractual interest coupon | $ 549 | $ 973 |
Amortization of discount on liability component and debt issuance costs | 517 | 1,619 |
Interest expense, total | $ 1,066 | $ 2,592 |
Participations and Residuals (D
Participations and Residuals (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Participations And Residuals [abstract] | ||
Percentage of accrued participations and residuals payable within one year | 67.00% | |
Contribution of TIK Films, in general, subject to certain limitations | 25.00% | |
Theatrical slate participation arrangement, length of term ending January 23, 2018 | 3 years | |
Theatrical slate participation arrangement, amount payable to TIK Films | $ 24.9 | $ 13.6 |
Film Obligations and Producti63
Film Obligations and Production Loans (Narrative) (Details) - Production Loans [Member] | 3 Months Ended |
Jun. 30, 2015 | |
Interest rate range, minimum | 3.29% |
Interest rate range, maximum | 3.54% |
Film Obligations and Producti64
Film Obligations and Production Loans (Film Obligations And Production Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Film obligations | $ 46,656 | $ 55,811 |
Production loans | 729,755 | 600,944 |
Total film obligations and production loans | $ 776,411 | $ 656,755 |
Film Obligations and Producti65
Film Obligations and Production Loans (Future Annual Repayment of Film Obligations And Production Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Future Annual Repayment Of Film Obligations And Production Loans | ||
Nine Months Ended March 31, 2016 | $ 291,557 | |
Year Ended March 31, 2017 | 482,073 | |
Year Ended March 31, 2018 | 2,000 | |
Year Ended March 31, 2019 | 1,000 | |
Year Ended March 31, 2020 | 0 | |
Thereafter | 0 | |
Total | 776,630 | |
Less imputed interest on film obligations | (219) | |
Total film obligations and production loans | 776,411 | $ 656,755 |
Film Obligations [Member] | ||
Future Annual Repayment Of Film Obligations And Production Loans | ||
Nine Months Ended March 31, 2016 | 40,911 | |
Year Ended March 31, 2017 | 2,964 | |
Year Ended March 31, 2018 | 2,000 | |
Year Ended March 31, 2019 | 1,000 | |
Year Ended March 31, 2020 | 0 | |
Thereafter | 0 | |
Total | 46,875 | |
Production Loans [Member] | ||
Future Annual Repayment Of Film Obligations And Production Loans | ||
Nine Months Ended March 31, 2016 | 250,646 | |
Year Ended March 31, 2017 | 479,109 | |
Year Ended March 31, 2018 | 0 | |
Year Ended March 31, 2019 | 0 | |
Year Ended March 31, 2020 | 0 | |
Thereafter | 0 | |
Total | $ 729,755 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Required to be Carried at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Aug. 06, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |
Assets: | ||||
Available-for-sale securities, original cost basis | $ 158,916 | $ 158,916 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Forward exchange contracts | 8,128 | 8,335 | ||
Liabilities: | ||||
Forward exchange contracts | (1,598) | (2,024) | ||
Total | 217,100 | 168,335 | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets: | ||||
Forward exchange contracts | 0 | 0 | ||
Liabilities: | ||||
Forward exchange contracts | 0 | 0 | ||
Total | 94,719 | 72,882 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets: | ||||
Forward exchange contracts | 8,128 | 8,335 | ||
Liabilities: | ||||
Forward exchange contracts | (1,598) | (2,024) | ||
Total | 122,381 | 95,453 | ||
Starz [Member] | Series A Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Available-for-sale securities | [1] | 94,719 | 72,882 | |
Starz [Member] | Series A Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets: | ||||
Available-for-sale securities | [1] | 94,719 | 72,882 | |
Starz [Member] | Series A Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets: | ||||
Available-for-sale securities | [1] | 0 | 0 | |
Starz [Member] | Series B Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Available-for-sale securities | [1] | 115,851 | 89,142 | |
Starz [Member] | Series B Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets: | ||||
Available-for-sale securities | [1] | 0 | 0 | |
Starz [Member] | Series B Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets: | ||||
Available-for-sale securities | [1] | $ 115,851 | $ 89,142 | |
Subsequent Event [Member] | Starz [Member] | ||||
Assets: | ||||
Available-for-sale securities, original cost basis | $ 158,900 | |||
Subsequent Event [Member] | Starz [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Assets: | ||||
Available-for-sale securities | $ 168,900 | |||
[1] | As of August 6, 2015, the fair value of the Company's minority interest in Starz was $168.9 million, compared to the Company's original cost basis of $158.9 million. |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values And Fair Values Of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 |
Convertible Senior Subordinated Notes [Member] | April 2009 Notes [Member] | |||
Fair Value, Carrying Values and Fair Values of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis [Line Items] | |||
Coupon rate | 3.625% | 3.625% | 3.625% |
Convertible Senior Subordinated Notes [Member] | January 2012 Notes [Member] | |||
Fair Value, Carrying Values and Fair Values of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis [Line Items] | |||
Coupon rate | 4.00% | ||
Convertible Senior Subordinated Notes [Member] | April 2013 Notes [Member] | |||
Fair Value, Carrying Values and Fair Values of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis [Line Items] | |||
Coupon rate | 1.25% | ||
Senior Secured Second-Priority Notes [Member] | 5.25% Senior Notes [Member] | |||
Fair Value, Carrying Values and Fair Values of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis [Line Items] | |||
Coupon rate | 5.25% | 5.25% | |
Term Loan [Member] | Term Loan [Member] | |||
Fair Value, Carrying Values and Fair Values of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis [Line Items] | |||
Coupon rate | 5.00% | ||
Carrying Value [Member] | |||
Assets: | |||
Investments in Pop's Mandatorily Redeemable Preferred Stock Units | $ 92,116 | $ 91,683 | |
Liabilities: | |||
Total liabilities, fair value disclosure | 1,453,218 | 1,315,070 | |
Carrying Value [Member] | Convertible Senior Subordinated Notes [Member] | April 2009 Notes [Member] | |||
Liabilities: | |||
Convertible notes, fair value disclosures | 0 | 16,167 | |
Carrying Value [Member] | Convertible Senior Subordinated Notes [Member] | January 2012 Notes [Member] | |||
Liabilities: | |||
Convertible notes, fair value disclosures | 38,463 | 37,959 | |
Carrying Value [Member] | Convertible Senior Subordinated Notes [Member] | April 2013 Notes [Member] | |||
Liabilities: | |||
Convertible notes, fair value disclosures | 60,000 | 60,000 | |
Carrying Value [Member] | Production Loans [Member] | Production Loans [Member] | |||
Liabilities: | |||
Loans, fair value disclosure | 729,755 | 600,944 | |
Carrying Value [Member] | Senior Secured Second-Priority Notes [Member] | 5.25% Senior Notes [Member] | |||
Liabilities: | |||
Senior Notes, fair value disclosure | 225,000 | 225,000 | |
Carrying Value [Member] | Term Loan [Member] | Term Loan [Member] | |||
Liabilities: | |||
Loans, fair value disclosure | 400,000 | 375,000 | |
Fair Value [Member] | Fair Value (Level 3) [Member] | |||
Assets: | |||
Investments in Pop's Mandatorily Redeemable Preferred Stock Units | 110,000 | 110,000 | |
Fair Value [Member] | Fair Value (Level 2) [Member] | |||
Liabilities: | |||
Total liabilities, fair value disclosure | 1,457,855 | 1,321,201 | |
Fair Value [Member] | Fair Value (Level 2) [Member] | Convertible Senior Subordinated Notes [Member] | April 2009 Notes [Member] | |||
Liabilities: | |||
Convertible notes, fair value disclosures | 0 | 16,167 | |
Fair Value [Member] | Fair Value (Level 2) [Member] | Convertible Senior Subordinated Notes [Member] | January 2012 Notes [Member] | |||
Liabilities: | |||
Convertible notes, fair value disclosures | 42,140 | 41,473 | |
Fair Value [Member] | Fair Value (Level 2) [Member] | Convertible Senior Subordinated Notes [Member] | April 2013 Notes [Member] | |||
Liabilities: | |||
Convertible notes, fair value disclosures | 53,710 | 53,241 | |
Fair Value [Member] | Fair Value (Level 2) [Member] | Production Loans [Member] | Production Loans [Member] | |||
Liabilities: | |||
Loans, fair value disclosure | 729,755 | 600,944 | |
Fair Value [Member] | Fair Value (Level 2) [Member] | Senior Secured Second-Priority Notes [Member] | 5.25% Senior Notes [Member] | |||
Liabilities: | |||
Senior Notes, fair value disclosure | 231,750 | 233,438 | |
Fair Value [Member] | Fair Value (Level 2) [Member] | Term Loan [Member] | Term Loan [Member] | |||
Liabilities: | |||
Loans, fair value disclosure | $ 400,500 | $ 375,938 |
Net Income Per Share (Basic) (D
Net Income Per Share (Basic) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||
Net income | $ 40,684 | $ 43,261 |
Denominator: | ||
Weighted average common shares outstanding (in shares) | 147,619 | 138,509 |
Basic net income per common share (in usd per share) | $ 0.28 | $ 0.31 |
Net Income Per Share (Diluted)
Net Income Per Share (Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||
Net income | $ 40,684 | $ 43,261 |
Interest on convertible notes, net of tax | 676 | 1,643 |
Numerator for diluted net income per common share | $ 41,360 | $ 44,904 |
Denominator: | ||
Weighted average common shares outstanding (in shares) | 147,619 | 138,509 |
Conversion of notes (in shares) | 6,325 | 10,909 |
Share purchase options (in shares) | 3,130 | 2,366 |
Restricted share units (in shares) | 424 | 426 |
Adjusted weighted average common shares outstanding (in shares) | 157,498 | 152,210 |
Diluted net income per common share (in usd per share) | $ 0.26 | $ 0.30 |
Net Income Per Share (Anti-dilu
Net Income Per Share (Anti-dilutive Shares Issuable) (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Anti-dilutive shares issuable [Line Items] | ||
Anti-dilutive shares issuable (in shares) | 4,409 | 5,670 |
Share Purchase Options [Member] | ||
Anti-dilutive shares issuable [Line Items] | ||
Anti-dilutive shares issuable (in shares) | 3,945 | 5,107 |
Restricted Share Units (RSUs) [Member] | ||
Anti-dilutive shares issuable [Line Items] | ||
Anti-dilutive shares issuable (in shares) | 67 | 288 |
Contingently Issuable Shares [Member] | ||
Anti-dilutive shares issuable [Line Items] | ||
Anti-dilutive shares issuable (in shares) | 397 | 275 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 15, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized common shares (in shares) | 500,000,000 | 500,000,000 | ||
Excess tax benefits on equity-based compensation awards | $ 45 | |||
Dividends declared per common share (in usd per share) | $ 0.07 | $ 0.07 | $ 0.05 | |
Cash dividends payable | $ 10,376 | $ 6,881 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation cost | $ 66,200 | |||
Total unrecognized compensation cost, weighted average period for recognition | 1 year 10 months 24 days | |||
Restricted Share Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation cost | $ 31,100 | |||
Total unrecognized compensation cost, weighted average period for recognition | 1 year 8 months 12 days | |||
Share Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash-settled SARs exercised (in shares) | 75,000 | |||
Cash paid for the exercise of cash-settled SARs | $ 1,700 | |||
Performance Incentive Plan of 2012 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of common shares available for grant under the share-based compensation arrangement plan (in shares) | 27,600,000 | |||
Common Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Excess tax benefits on equity-based compensation awards | $ 45 | $ 2,800 |
Capital Stock (Common Shares Re
Capital Stock (Common Shares Reserved for Future Issuance) (Details) - $ / shares shares in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 |
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 26,584 | 29,080 | |
Stock Options [Member] | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 14,246 | 12,215 | |
Stock options outstanding, average exercise price (in usd per share) | $ 23.61 | $ 22.22 | |
Restricted Share Units (RSUs) - Unvested [Member] | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 1,503 | 1,662 | |
Share Purchase Options and Restricted Share Units [Member] | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 4,767 | 7,163 | |
Convertible Senior Subordinated Notes [Member] | April 2009 Notes [Member] | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 0 | 1,984 | |
Conversion price per share (in usd per share) | $ 8.15 | ||
Convertible Senior Subordinated Notes [Member] | January 2012 Notes [Member] | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 4,040 | 4,032 | |
Conversion price per share (in usd per share) | $ 10.36 | $ 10.38 | |
Convertible Senior Subordinated Notes [Member] | April 2013 Notes [Member] | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 2,028 | 2,024 | |
Conversion price per share (in usd per share) | $ 29.59 | $ 29.65 | |
April 2009 Notes [Member] | Convertible Senior Subordinated Notes [Member] | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Coupon rate | 3.625% | 3.625% | 3.625% |
January 2012 Notes [Member] | Convertible Senior Subordinated Notes [Member] | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Conversion price per share (in usd per share) | $ 10.36 | ||
Coupon rate | 4.00% | ||
April 2013 Notes [Member] | Convertible Senior Subordinated Notes [Member] | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Conversion price per share (in usd per share) | $ 29.59 | ||
Coupon rate | 1.25% |
Capital Stock (Share-Based Comp
Capital Stock (Share-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Share-Based Compensation Expense [Line Items] | |||
Share-based compensation expense | $ 16,879 | $ 16,421 | |
Impact of accelerated vesting on stock options and restricted share units | [1] | 0 | 1,194 |
Total share-based compensation expense | 16,879 | 17,615 | |
Tax impact | [2] | (6,190) | (6,458) |
Reduction in net income | 10,689 | 11,157 | |
Stock Options [Member] | |||
Share-Based Compensation Expense [Line Items] | |||
Share-based compensation expense | 9,234 | 8,643 | |
Restricted Share Units and Other Share-based Compensation [Member] | |||
Share-Based Compensation Expense [Line Items] | |||
Share-based compensation expense | 7,357 | 6,049 | |
Share Appreciation Rights (SARs) [Member] | |||
Share-Based Compensation Expense [Line Items] | |||
Share-based compensation expense | $ 288 | $ 1,729 | |
[1] | Represents the impact of the acceleration of certain vesting schedules for stock options and restricted share units pursuant to the severance arrangements related to the integration of the marketing operations of the Company's Lionsgate and Summit film labels. | ||
[2] | Represents the income tax benefit recognized in the statements of income for share-based compensation arrangements. |
Capital Stock (Stock Option and
Capital Stock (Stock Option and Restricted Share Unit Activity) (Details) - 3 months ended Jun. 30, 2015 - $ / shares | Total |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at March 31, 2015 (in shares) | 13,214,696 |
Granted (in shares) | 2,222,298 |
Options exercised (in shares) | (301,825) |
Forfeited or expired (in shares) | (1,929) |
Outstanding at June 30, 2015 (in shares) | 15,133,240 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding, weighted average exercise price (in usd per share) | $ 21.26 |
Granted, weighted average exercise price (in usd per share) | 30.62 |
Options exercised, weighted average exercise price (in usd per share) | 14.05 |
Forfeited or expired, weighted average exercise price (in usd per share) | 23.75 |
Outstanding, weighted average exercise price (in usd per share) | $ 22.78 |
Restricted Share Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at March 31, 2015 (in shares) | 1,662,028 |
Granted (in shares) | 808,470 |
RSUs vested (in shares) | (946,326) |
Forfeited or expired (in shares) | (21,243) |
Outstanding at June 30, 2015 (in shares) | 1,502,929 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding, weighted average grant-date fair value (in usd per share) | $ 28.10 |
Granted, weighted average grant date fair value (in usd per share) | 30.97 |
RSUs vested, weighted average grant-date fair value (in usd per share) | 28.90 |
Forfeited or expired, weighted average grant-date fair value (in usd per share) | 30.60 |
Outstanding, weighted average grant-date fair value (in usd per share) | $ 29.10 |
Government Assistance (Narrativ
Government Assistance (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Government Assistance [Abstract] | |||
Tax credits earned for film and television production activity | $ 17.8 | $ 77.5 | |
Tax credits receivable for film and television production | $ 213.6 | $ 219.2 |
Segment Information (Segment In
Segment Information (Segment Information By Business Unit) (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable business segments | segment | 2 | |
Segment revenues | $ 408,941 | $ 449,383 |
Direct operating expenses | 230,310 | 238,873 |
Distribution and marketing | 71,924 | 97,321 |
Gross segment contribution | 106,707 | 113,189 |
Segment general and administration | 22,585 | 20,763 |
Segment profit | 84,122 | 92,426 |
Motion Pictures [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | 275,387 | 331,916 |
Direct operating expenses | 129,355 | 147,194 |
Distribution and marketing | 62,466 | 88,605 |
Gross segment contribution | 83,566 | 96,117 |
Segment general and administration | 18,202 | 17,353 |
Segment profit | 65,364 | 78,764 |
Television Production [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | 133,554 | 117,467 |
Direct operating expenses | 100,955 | 91,679 |
Distribution and marketing | 9,458 | 8,716 |
Gross segment contribution | 23,141 | 17,072 |
Segment general and administration | 4,383 | 3,410 |
Segment profit | $ 18,758 | $ 13,662 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Total Segment Profit To The Company's Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Segment Reporting [Abstract] | |||
Company’s total segment profit | $ 84,122 | $ 92,426 | |
Shared services and corporate expenses: | |||
Share-based compensation expense | (16,879) | (16,421) | |
Restructuring and other items | [1] | 0 | (4,888) |
Other shared services and corporate expenses | (21,248) | (22,007) | |
Total shared services and corporate expenses | (38,127) | (43,316) | |
Depreciation and amortization | (1,830) | (1,346) | |
Operating income | 44,165 | 47,764 | |
Interest expense | (12,625) | (12,972) | |
Interest and other income | 600 | 1,018 | |
Equity interests income | 11,388 | 18,210 | |
Income before income taxes | 43,528 | 54,020 | |
Non-cash charges resulting from the acceleration of vesting of stock awards | [2] | $ 0 | $ 1,194 |
[1] | Restructuring and other items includes certain unusual items, such as severance and restructuring charges, and certain transaction related costs, when applicable. Amounts in the three months ended June 30, 2014 primarily represent severance costs associated with the integration of the marketing operations of the Company's Lionsgate and Summit film labels and costs related to the move of our international sales and distribution organization to the United Kingdom. Approximately $1.2 million of the costs are non-cash charges resulting from the acceleration of vesting of stock awards (see Note 10). | ||
[2] | Represents the impact of the acceleration of certain vesting schedules for stock options and restricted share units pursuant to the severance arrangements related to the integration of the marketing operations of the Company's Lionsgate and Summit film labels. |
Segment Information (Significan
Segment Information (Significant Assets Broken Down By Segment And Other Unallocated Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Significant assets by segment | |||
Accounts receivable | $ 761,216 | $ 891,880 | |
Investment in films and television programs, net | 1,539,828 | 1,381,829 | |
Goodwill | 323,328 | 323,328 | |
Total allocated assets by segment | 2,624,372 | 2,597,037 | |
Other unallocated assets (primarily cash, other assets, and investments) | 845,415 | 695,052 | |
Total assets | 3,469,787 | 3,292,089 | |
Purchases of property and equipment | 3,248 | $ 1,427 | |
Motion Pictures [Member] | |||
Significant assets by segment | |||
Accounts receivable | 399,041 | 538,515 | |
Investment in films and television programs, net | 1,264,998 | 1,116,909 | |
Goodwill | 294,367 | 294,367 | |
Total allocated assets by segment | 1,958,406 | 1,949,791 | |
Television Production [Member] | |||
Significant assets by segment | |||
Accounts receivable | 362,175 | 353,365 | |
Investment in films and television programs, net | 274,830 | 264,920 | |
Goodwill | 28,961 | 28,961 | |
Total allocated assets by segment | $ 665,966 | $ 647,246 |
Segment Information (Acquisitio
Segment Information (Acquisition of Investment in Films and Television Programs by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||
Acquisition of investment in films and television programs | $ 315,861 | $ 263,851 |
Motion Pictures [Member] | ||
Segment Reporting Information [Line Items] | ||
Acquisition of investment in films and television programs | 235,237 | 152,421 |
Television Production [Member] | ||
Segment Reporting Information [Line Items] | ||
Acquisition of investment in films and television programs | $ 80,624 | $ 111,430 |
Consolidating Financial Infor80
Consolidating Financial Information - Convertible Senior Subordinated Notes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Consolidating Financial Information [Line Items] | ||
Other comprehensive income, available-for-sale securities, tax | $ 6,311 | |
January 2012 Notes [Member] | Convertible Senior Subordinated Notes [Member] | ||
Consolidating Financial Information [Line Items] | ||
Coupon rate | 4.00% | |
April 2013 Notes [Member] | Convertible Senior Subordinated Notes [Member] | ||
Consolidating Financial Information [Line Items] | ||
Coupon rate | 1.25% | |
5.25% Senior Notes [Member] | Senior Secured Second-Priority Notes [Member] | ||
Consolidating Financial Information [Line Items] | ||
Coupon rate | 5.25% | 5.25% |
Lions Gate Entertainment Corp. [Member] | Convertible Senior Subordinated Notes [Member] | ||
Consolidating Financial Information [Line Items] | ||
Deferred financing costs | $ 616 | |
Lions Gate Entertainment Inc. [Member] | ||
Consolidating Financial Information [Line Items] | ||
Percentage ownership of LGEI, the issuer, by parent company guarantor | 100.00% | |
Non-guarantor Subsidiaries [Member] | Convertible Senior Subordinated Notes [Member] | ||
Consolidating Financial Information [Line Items] | ||
Other comprehensive income, available-for-sale securities, tax | $ 6,311 |
Consolidating Financial Infor81
Consolidating Financial Information - Convertible Senior Subordinated Notes (Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 196,550 | $ 102,697 | $ 50,372 | $ 25,692 |
Restricted cash | 2,508 | 2,508 | ||
Accounts receivable, net | 761,216 | 891,880 | ||
Investment in films and television programs, net | 1,539,828 | 1,381,829 | ||
Property and equipment, net | 28,354 | 26,651 | ||
Investments | 499,009 | 438,298 | ||
Goodwill | 323,328 | 323,328 | ||
Other assets | 75,278 | 74,784 | ||
Deferred tax assets | 43,716 | 50,114 | ||
Total assets | 3,469,787 | 3,292,089 | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Senior revolving credit facility | 0 | 0 | ||
5.25% Senior Notes | 225,000 | 225,000 | ||
Term Loan | 400,000 | 375,000 | ||
Accounts payable and accrued liabilities | 220,314 | 332,473 | ||
Participations and residuals | 501,760 | 471,661 | ||
Film obligations and production loans | 776,411 | 656,755 | ||
Convertible senior subordinated notes | 98,463 | 114,126 | ||
Deferred revenue | 291,812 | 274,787 | ||
Shareholders' equity (deficiency) | 956,027 | 842,287 | ||
Total liabilities and shareholders’ equity | 3,469,787 | 3,292,089 | ||
Convertible Senior Subordinated Notes [Member] | ||||
Assets | ||||
Cash and cash equivalents | 196,550 | 102,697 | 50,372 | 25,692 |
Restricted cash | 2,508 | 2,508 | ||
Accounts receivable, net | 761,216 | 891,880 | ||
Investment in films and television programs, net | 1,539,828 | 1,381,829 | ||
Property and equipment, net | 28,354 | 26,651 | ||
Investments | 499,009 | 438,298 | ||
Goodwill | 323,328 | 323,328 | ||
Other assets | 75,278 | 74,784 | ||
Deferred tax assets | 43,716 | 50,114 | ||
Subsidiary investments and advances | 0 | 0 | ||
Total assets | 3,469,787 | 3,292,089 | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Senior revolving credit facility | 0 | 0 | ||
5.25% Senior Notes | 225,000 | 225,000 | ||
Term Loan | 400,000 | 375,000 | ||
Accounts payable and accrued liabilities | 220,314 | 332,473 | ||
Participations and residuals | 501,760 | 471,661 | ||
Film obligations and production loans | 776,411 | 656,755 | ||
Convertible senior subordinated notes | 98,463 | 114,126 | ||
Deferred revenue | 291,812 | 274,787 | ||
Intercompany payable | 0 | 0 | ||
Shareholders' equity (deficiency) | 956,027 | 842,287 | ||
Total liabilities and shareholders’ equity | 3,469,787 | 3,292,089 | ||
Convertible Senior Subordinated Notes [Member] | Lions Gate Entertainment Corp. [Member] | ||||
Assets | ||||
Cash and cash equivalents | 15,111 | 3,499 | 10,338 | 8,128 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 613 | 617 | ||
Investment in films and television programs, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Investments | 40,048 | 40,072 | ||
Goodwill | 10,172 | 10,172 | ||
Other assets | 8,574 | 8,109 | ||
Deferred tax assets | 9,377 | 10,524 | ||
Subsidiary investments and advances | 1,519,199 | 1,385,522 | ||
Total assets | 1,603,094 | 1,458,515 | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Senior revolving credit facility | 0 | 0 | ||
5.25% Senior Notes | 225,000 | 225,000 | ||
Term Loan | 400,000 | 375,000 | ||
Accounts payable and accrued liabilities | 22,067 | 16,228 | ||
Participations and residuals | 0 | 0 | ||
Film obligations and production loans | 0 | 0 | ||
Convertible senior subordinated notes | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Shareholders' equity (deficiency) | 956,027 | 842,287 | ||
Total liabilities and shareholders’ equity | 1,603,094 | 1,458,515 | ||
Convertible Senior Subordinated Notes [Member] | Lions Gate Entertainment Inc. [Member] | ||||
Assets | ||||
Cash and cash equivalents | 106,833 | 47,290 | 5,273 | 5,999 |
Restricted cash | 2,508 | 2,508 | ||
Accounts receivable, net | 9,839 | 7,933 | ||
Investment in films and television programs, net | 6,406 | 6,402 | ||
Property and equipment, net | 26,602 | 24,938 | ||
Investments | 8,770 | 9,229 | ||
Goodwill | 0 | 0 | ||
Other assets | 62,684 | 61,409 | ||
Deferred tax assets | 33,135 | 32,252 | ||
Subsidiary investments and advances | 1,511,389 | 1,378,571 | ||
Total assets | 1,768,166 | 1,570,532 | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Senior revolving credit facility | 0 | 0 | ||
5.25% Senior Notes | 0 | 0 | ||
Term Loan | 0 | 0 | ||
Accounts payable and accrued liabilities | 57,225 | 86,472 | ||
Participations and residuals | 3,663 | 3,417 | ||
Film obligations and production loans | 0 | 0 | ||
Convertible senior subordinated notes | 98,463 | 114,126 | ||
Deferred revenue | 7,448 | 7,722 | ||
Intercompany payable | 1,726,280 | 1,530,299 | ||
Shareholders' equity (deficiency) | (124,913) | (171,504) | ||
Total liabilities and shareholders’ equity | 1,768,166 | 1,570,532 | ||
Convertible Senior Subordinated Notes [Member] | Non-guarantor Subsidiaries [Member] | ||||
Assets | ||||
Cash and cash equivalents | 74,606 | 51,908 | 34,761 | 11,565 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 750,764 | 883,330 | ||
Investment in films and television programs, net | 1,533,422 | 1,375,427 | ||
Property and equipment, net | 1,752 | 1,713 | ||
Investments | 450,191 | 388,997 | ||
Goodwill | 313,156 | 313,156 | ||
Other assets | 9,809 | 11,180 | ||
Deferred tax assets | 1,204 | 7,338 | ||
Subsidiary investments and advances | 2,739,071 | 2,571,801 | ||
Total assets | 5,873,975 | 5,604,850 | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Senior revolving credit facility | 0 | 0 | ||
5.25% Senior Notes | 0 | 0 | ||
Term Loan | 0 | 0 | ||
Accounts payable and accrued liabilities | 141,022 | 229,773 | ||
Participations and residuals | 498,097 | 468,244 | ||
Film obligations and production loans | 776,411 | 656,755 | ||
Convertible senior subordinated notes | 0 | 0 | ||
Deferred revenue | 284,364 | 267,065 | ||
Intercompany payable | 2,640,601 | 2,547,928 | ||
Shareholders' equity (deficiency) | 1,533,480 | 1,435,085 | ||
Total liabilities and shareholders’ equity | 5,873,975 | 5,604,850 | ||
Convertible Senior Subordinated Notes [Member] | Consolidating Adjustments [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Investment in films and television programs, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Investments | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | (5,789) | (5,914) | ||
Deferred tax assets | 0 | 0 | ||
Subsidiary investments and advances | (5,769,659) | (5,335,894) | ||
Total assets | (5,775,448) | (5,341,808) | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Senior revolving credit facility | 0 | 0 | ||
5.25% Senior Notes | 0 | 0 | ||
Term Loan | 0 | 0 | ||
Accounts payable and accrued liabilities | 0 | 0 | ||
Participations and residuals | 0 | 0 | ||
Film obligations and production loans | 0 | 0 | ||
Convertible senior subordinated notes | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Intercompany payable | (4,366,881) | (4,078,227) | ||
Shareholders' equity (deficiency) | (1,408,567) | (1,263,581) | ||
Total liabilities and shareholders’ equity | $ (5,775,448) | $ (5,341,808) |
Consolidating Financial Infor82
Consolidating Financial Information - Convertible Senior Subordinated Notes (Statement of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | $ 408,941 | $ 449,383 |
Expenses: | ||
Direct operating | 230,310 | 238,873 |
Distribution and marketing | 71,924 | 97,321 |
General and administration | 60,712 | 64,079 |
Depreciation and amortization | 1,830 | 1,346 |
Total expenses | 364,776 | 401,619 |
Operating income | 44,165 | 47,764 |
Other expenses (income): | ||
Interest expense | 12,625 | 12,972 |
Interest and other income | (600) | (1,018) |
Total other expenses (income) | 12,025 | 11,954 |
Income before equity interests and income taxes | 32,140 | 35,810 |
Equity interests income | 11,388 | 18,210 |
Income (loss) before income taxes | 43,528 | 54,020 |
Income tax provision (benefit) | 2,844 | 10,759 |
Foreign currency translation adjustments, net of tax | 3,490 | 1,482 |
Net unrealized gain on available-for-sale securities, net of $6,311 tax | 42,234 | 0 |
Net unrealized gain (loss) on foreign exchange contracts, net of tax | 7 | (811) |
Comprehensive income | 86,415 | 43,932 |
Convertible Senior Subordinated Notes [Member] | ||
Revenues | 408,941 | 449,383 |
Expenses: | ||
Direct operating | 230,310 | 238,873 |
Distribution and marketing | 71,924 | 97,321 |
General and administration | 60,712 | 64,079 |
Depreciation and amortization | 1,830 | 1,346 |
Total expenses | 364,776 | 401,619 |
Operating income | 44,165 | 47,764 |
Other expenses (income): | ||
Interest expense | 12,625 | 12,972 |
Interest and other income | (600) | (1,018) |
Total other expenses (income) | 12,025 | 11,954 |
Income before equity interests and income taxes | 32,140 | 35,810 |
Equity interests income | 11,388 | 18,210 |
Income (loss) before income taxes | 43,528 | 54,020 |
Income tax provision (benefit) | 2,844 | 10,759 |
Net income | 40,684 | 43,261 |
Foreign currency translation adjustments, net of tax | 3,490 | 1,482 |
Net unrealized gain on available-for-sale securities, net of $6,311 tax | 42,234 | |
Net unrealized gain (loss) on foreign exchange contracts, net of tax | 7 | (811) |
Comprehensive income | 86,415 | 43,932 |
Convertible Senior Subordinated Notes [Member] | Lions Gate Entertainment Corp. [Member] | ||
Revenues | 0 | 0 |
Expenses: | ||
Direct operating | 0 | 2 |
Distribution and marketing | 0 | 0 |
General and administration | 858 | 564 |
Depreciation and amortization | 0 | 0 |
Total expenses | 858 | 566 |
Operating income | (858) | (566) |
Other expenses (income): | ||
Interest expense | 8,985 | 7,373 |
Interest and other income | (50,534) | (43,039) |
Total other expenses (income) | (41,549) | (35,666) |
Income before equity interests and income taxes | 40,691 | 35,100 |
Equity interests income | 677 | 8,550 |
Income (loss) before income taxes | 41,368 | 43,650 |
Income tax provision (benefit) | 684 | 389 |
Net income | 40,684 | 43,261 |
Foreign currency translation adjustments, net of tax | 45,731 | 671 |
Net unrealized gain on available-for-sale securities, net of $6,311 tax | 0 | |
Net unrealized gain (loss) on foreign exchange contracts, net of tax | 0 | 0 |
Comprehensive income | 86,415 | 43,932 |
Convertible Senior Subordinated Notes [Member] | Lions Gate Entertainment Inc. [Member] | ||
Revenues | 2,105 | 2,896 |
Expenses: | ||
Direct operating | (1,504) | (829) |
Distribution and marketing | 522 | 568 |
General and administration | 36,916 | 39,942 |
Depreciation and amortization | 1,551 | 752 |
Total expenses | 37,485 | 40,433 |
Operating income | (35,380) | (37,537) |
Other expenses (income): | ||
Interest expense | 53,542 | 46,575 |
Interest and other income | (162) | (31) |
Total other expenses (income) | 53,380 | 46,544 |
Income before equity interests and income taxes | (88,760) | (84,081) |
Equity interests income | 89,484 | 94,758 |
Income (loss) before income taxes | 724 | 10,677 |
Income tax provision (benefit) | 47 | 2,127 |
Net income | 677 | 8,550 |
Foreign currency translation adjustments, net of tax | 45,915 | 2,217 |
Net unrealized gain on available-for-sale securities, net of $6,311 tax | 0 | |
Net unrealized gain (loss) on foreign exchange contracts, net of tax | 0 | 0 |
Comprehensive income | 46,592 | 10,767 |
Convertible Senior Subordinated Notes [Member] | Non-guarantor Subsidiaries [Member] | ||
Revenues | 406,999 | 446,586 |
Expenses: | ||
Direct operating | 231,814 | 239,586 |
Distribution and marketing | 71,402 | 96,753 |
General and administration | 23,332 | 23,692 |
Depreciation and amortization | 279 | 594 |
Total expenses | 326,827 | 360,625 |
Operating income | 80,172 | 85,961 |
Other expenses (income): | ||
Interest expense | 42,160 | 33,125 |
Interest and other income | (41,841) | (31,933) |
Total other expenses (income) | 319 | 1,192 |
Income before equity interests and income taxes | 79,853 | 84,769 |
Equity interests income | 11,848 | 18,050 |
Income (loss) before income taxes | 91,701 | 102,819 |
Income tax provision (benefit) | 6,092 | 20,477 |
Net income | 85,609 | 82,342 |
Foreign currency translation adjustments, net of tax | (1,543) | (391) |
Net unrealized gain on available-for-sale securities, net of $6,311 tax | 42,234 | |
Net unrealized gain (loss) on foreign exchange contracts, net of tax | 7 | (811) |
Comprehensive income | 126,307 | 81,140 |
Convertible Senior Subordinated Notes [Member] | Consolidating Adjustments [Member] | ||
Revenues | (163) | (99) |
Expenses: | ||
Direct operating | 0 | 114 |
Distribution and marketing | 0 | 0 |
General and administration | (394) | (119) |
Depreciation and amortization | 0 | 0 |
Total expenses | (394) | (5) |
Operating income | 231 | (94) |
Other expenses (income): | ||
Interest expense | (92,062) | (74,101) |
Interest and other income | 91,937 | 73,985 |
Total other expenses (income) | (125) | (116) |
Income before equity interests and income taxes | 356 | 22 |
Equity interests income | (90,621) | (103,148) |
Income (loss) before income taxes | (90,265) | (103,126) |
Income tax provision (benefit) | (3,979) | (12,234) |
Net income | (86,286) | (90,892) |
Foreign currency translation adjustments, net of tax | (86,613) | (1,015) |
Net unrealized gain on available-for-sale securities, net of $6,311 tax | 0 | |
Net unrealized gain (loss) on foreign exchange contracts, net of tax | 0 | 0 |
Comprehensive income | $ (172,899) | $ (91,907) |
Consolidating Financial Infor83
Consolidating Financial Information - Convertible Senior Subordinated Notes (Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | $ (30,883) | $ (12,634) | |
Investing Activities: | |||
Proceeds from the sale of equity method investees | 0 | 14,575 | |
Investment in equity method investees | (800) | (9,650) | |
Purchases of property and equipment | (3,248) | (1,427) | |
Net Cash Flows Provided By (Used In) Investing Activities | (4,048) | 3,498 | |
Financing Activities: | |||
Senior revolving credit facility - borrowings | 0 | 170,000 | |
Senior revolving credit facility - repayments | 0 | (183,619) | |
Term Loan - borrowings, net of deferred financing costs of $616 | 24,384 | 0 | |
Convertible senior subordinated notes - repurchases | (5) | (16) | |
Production loans - borrowings | 203,087 | 207,953 | |
Production loans - repayments | (74,276) | (36,859) | |
Repurchase of common shares | 0 | (109,529) | |
Dividends paid | (10,187) | (7,066) | |
Excess tax benefits on equity-based compensation awards | 45 | 2,771 | |
Exercise of stock options | 3,118 | 406 | |
Tax withholding required on equity awards | (16,082) | (10,247) | |
Net Cash Flows Provided By Financing Activities | 130,084 | 33,794 | |
Net Change In Cash And Cash Equivalents | 95,153 | 24,658 | |
Foreign Exchange Effects on Cash | (1,300) | 22 | |
Cash and Cash Equivalents - Beginning Of Period | 102,697 | 25,692 | $ 25,692 |
Cash and Cash Equivalents - End Of Period | 196,550 | 50,372 | 102,697 |
Convertible Senior Subordinated Notes [Member] | |||
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | (30,883) | (12,634) | |
Investing Activities: | |||
Proceeds from the sale of equity method investees | 14,575 | ||
Investment in equity method investees | (800) | (9,650) | |
Purchases of property and equipment | (3,248) | (1,427) | |
Net Cash Flows Provided By (Used In) Investing Activities | (4,048) | 3,498 | |
Financing Activities: | |||
Senior revolving credit facility - borrowings | 170,000 | ||
Senior revolving credit facility - repayments | (183,619) | ||
Term Loan - borrowings, net of deferred financing costs of $616 | 24,384 | ||
Convertible senior subordinated notes - repurchases | (5) | (16) | |
Production loans - borrowings | 203,087 | 207,953 | |
Production loans - repayments | (74,276) | (36,859) | |
Repurchase of common shares | (109,529) | ||
Dividends paid | (10,187) | (7,066) | |
Excess tax benefits on equity-based compensation awards | 45 | 2,771 | |
Exercise of stock options | 3,118 | 406 | |
Tax withholding required on equity awards | (16,082) | (10,247) | |
Net Cash Flows Provided By Financing Activities | 130,084 | 33,794 | |
Net Change In Cash And Cash Equivalents | 95,153 | 24,658 | |
Foreign Exchange Effects on Cash | (1,300) | 22 | |
Cash and Cash Equivalents - Beginning Of Period | 102,697 | 25,692 | 25,692 |
Cash and Cash Equivalents - End Of Period | 196,550 | 50,372 | 102,697 |
Convertible Senior Subordinated Notes [Member] | Lions Gate Entertainment Corp. [Member] | |||
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | 10,380 | 142,265 | |
Investing Activities: | |||
Proceeds from the sale of equity method investees | 0 | ||
Investment in equity method investees | 0 | 0 | |
Purchases of property and equipment | 0 | 0 | |
Net Cash Flows Provided By (Used In) Investing Activities | 0 | 0 | |
Financing Activities: | |||
Senior revolving credit facility - borrowings | 170,000 | ||
Senior revolving credit facility - repayments | (183,619) | ||
Term Loan - borrowings, net of deferred financing costs of $616 | 24,384 | ||
Convertible senior subordinated notes - repurchases | 0 | 0 | |
Production loans - borrowings | 0 | 0 | |
Production loans - repayments | 0 | 0 | |
Repurchase of common shares | (109,529) | ||
Dividends paid | (10,187) | (7,066) | |
Excess tax benefits on equity-based compensation awards | 0 | 0 | |
Exercise of stock options | 3,118 | 406 | |
Tax withholding required on equity awards | (16,082) | (10,247) | |
Net Cash Flows Provided By Financing Activities | 1,233 | (140,055) | |
Net Change In Cash And Cash Equivalents | 11,613 | 2,210 | |
Foreign Exchange Effects on Cash | (1) | 0 | |
Cash and Cash Equivalents - Beginning Of Period | 3,499 | 8,128 | 8,128 |
Cash and Cash Equivalents - End Of Period | 15,111 | 10,338 | 3,499 |
Convertible Senior Subordinated Notes [Member] | Lions Gate Entertainment Inc. [Member] | |||
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | 62,627 | (26) | |
Investing Activities: | |||
Proceeds from the sale of equity method investees | 0 | ||
Investment in equity method investees | 0 | (2,150) | |
Purchases of property and equipment | (3,124) | (1,305) | |
Net Cash Flows Provided By (Used In) Investing Activities | (3,124) | (3,455) | |
Financing Activities: | |||
Senior revolving credit facility - borrowings | 0 | ||
Senior revolving credit facility - repayments | 0 | ||
Term Loan - borrowings, net of deferred financing costs of $616 | 0 | ||
Convertible senior subordinated notes - repurchases | (5) | (16) | |
Production loans - borrowings | 0 | 0 | |
Production loans - repayments | 0 | 0 | |
Repurchase of common shares | 0 | ||
Dividends paid | 0 | 0 | |
Excess tax benefits on equity-based compensation awards | 45 | 2,771 | |
Exercise of stock options | 0 | 0 | |
Tax withholding required on equity awards | 0 | 0 | |
Net Cash Flows Provided By Financing Activities | 40 | 2,755 | |
Net Change In Cash And Cash Equivalents | 59,543 | (726) | |
Foreign Exchange Effects on Cash | 0 | 0 | |
Cash and Cash Equivalents - Beginning Of Period | 47,290 | 5,999 | 5,999 |
Cash and Cash Equivalents - End Of Period | 106,833 | 5,273 | 47,290 |
Convertible Senior Subordinated Notes [Member] | Non-guarantor Subsidiaries [Member] | |||
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | (103,890) | (154,873) | |
Investing Activities: | |||
Proceeds from the sale of equity method investees | 14,575 | ||
Investment in equity method investees | (800) | (7,500) | |
Purchases of property and equipment | (124) | (122) | |
Net Cash Flows Provided By (Used In) Investing Activities | (924) | 6,953 | |
Financing Activities: | |||
Senior revolving credit facility - borrowings | 0 | ||
Senior revolving credit facility - repayments | 0 | ||
Term Loan - borrowings, net of deferred financing costs of $616 | 0 | ||
Convertible senior subordinated notes - repurchases | 0 | 0 | |
Production loans - borrowings | 203,087 | 207,953 | |
Production loans - repayments | (74,276) | (36,859) | |
Repurchase of common shares | 0 | ||
Dividends paid | 0 | 0 | |
Excess tax benefits on equity-based compensation awards | 0 | 0 | |
Exercise of stock options | 0 | 0 | |
Tax withholding required on equity awards | 0 | 0 | |
Net Cash Flows Provided By Financing Activities | 128,811 | 171,094 | |
Net Change In Cash And Cash Equivalents | 23,997 | 23,174 | |
Foreign Exchange Effects on Cash | (1,299) | 22 | |
Cash and Cash Equivalents - Beginning Of Period | 51,908 | 11,565 | 11,565 |
Cash and Cash Equivalents - End Of Period | 74,606 | 34,761 | 51,908 |
Convertible Senior Subordinated Notes [Member] | Consolidating Adjustments [Member] | |||
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | 0 | 0 | |
Investing Activities: | |||
Proceeds from the sale of equity method investees | 0 | ||
Investment in equity method investees | 0 | 0 | |
Purchases of property and equipment | 0 | 0 | |
Net Cash Flows Provided By (Used In) Investing Activities | 0 | 0 | |
Financing Activities: | |||
Senior revolving credit facility - borrowings | 0 | ||
Senior revolving credit facility - repayments | 0 | ||
Term Loan - borrowings, net of deferred financing costs of $616 | 0 | ||
Convertible senior subordinated notes - repurchases | 0 | 0 | |
Production loans - borrowings | 0 | 0 | |
Production loans - repayments | 0 | 0 | |
Repurchase of common shares | 0 | ||
Dividends paid | 0 | 0 | |
Excess tax benefits on equity-based compensation awards | 0 | 0 | |
Exercise of stock options | 0 | 0 | |
Tax withholding required on equity awards | 0 | 0 | |
Net Cash Flows Provided By Financing Activities | 0 | 0 | |
Net Change In Cash And Cash Equivalents | 0 | 0 | |
Foreign Exchange Effects on Cash | 0 | 0 | |
Cash and Cash Equivalents - Beginning Of Period | 0 | 0 | 0 |
Cash and Cash Equivalents - End Of Period | $ 0 | $ 0 | $ 0 |
Derivative Instruments and He84
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Derivative [Line Items] | |||
Remaining maturity of forward foreign exchange contracts, maximum | 17 months | ||
Net unrealized fair value gain (loss) on foreign exchange contracts, effective portion | $ 7 | $ (811) | |
Net unrealized fair value gain on foreign exchange contracts that did not qualify as effective hedge contracts | 100 | $ 0 | |
Other Assets [Member] | Foreign Exchange Forward [Member] | |||
Derivative [Line Items] | |||
Derivative asset | 8,100 | $ 8,300 | |
Accounts Payable and Accrued Liabilities [Member] | Foreign Exchange Forward [Member] | |||
Derivative [Line Items] | |||
Derivative liability | 1,600 | $ 2,000 | |
Maximum [Member] | |||
Derivative [Line Items] | |||
Net unrealized fair value gain (loss) on foreign exchange contracts, effective portion | $ 100 |
Derivative Instruments and He85
Derivative Instruments and Hedging Activities (Outstanding Forward Foreign Exchange Contracts) (Details) - Jun. 30, 2015 - Foreign Exchange Forward [Member] € in Millions, £ in Millions, CAD in Millions, AUD in Millions, $ in Millions | USD ($) | AUD | CAD | GBP (£) | EUR (€) |
British Pounds Sterling | |||||
Derivative [Line Items] | |||||
Foreign Currency Amount | £ | £ 9.7 | ||||
US Dollar Amount | $ 14.8 | ||||
Weighted average exchange rate per $1 USD | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 |
Australia, Dollars | |||||
Derivative [Line Items] | |||||
Foreign Currency Amount | AUD | AUD 56.8 | ||||
US Dollar Amount | $ 50.6 | ||||
Weighted average exchange rate per $1 USD | 1.12 | 1.12 | 1.12 | 1.12 | 1.12 |
Euro Member Countries, Euro | |||||
Derivative [Line Items] | |||||
Foreign Currency Amount | € | € 1.5 | ||||
US Dollar Amount | $ 1.7 | ||||
Weighted average exchange rate per $1 USD | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 |
Canada, Dollars | |||||
Derivative [Line Items] | |||||
Foreign Currency Amount | CAD | CAD 3.9 | ||||
US Dollar Amount | $ 3.2 | ||||
Weighted average exchange rate per $1 USD | 1.20 | 1.20 | 1.20 | 1.20 | 1.20 |
Supplementary Cash Flow State86
Supplementary Cash Flow Statement Information (Non-Cash Investing and Financing Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Non-cash financing activities | ||
Accrued dividends (see Note 10) | $ 10,376 | $ 6,881 |
Conversions of convertible senior subordinated notes (see Note 5) | $ 16,162 | $ 109 |