Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Feb. 06, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | LIONS GATE ENTERTAINMENT CORP /CN/ | |
Entity Central Index Key | 929,351 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Voting Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 81,056,905 | |
Class B Non-Voting Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 123,729,449 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 595 | $ 58 |
Restricted cash | 3 | 3 |
Accounts receivable, net | 777 | 570 |
Program rights | 236 | 0 |
Other current assets | 259 | 237 |
Total current assets | 1,870 | 868 |
Investment in films and television programs and program rights, net | 1,816 | 1,458 |
Property and equipment, net | 168 | 43 |
Investments | 357 | 464 |
Intangible assets | 2,024 | 11 |
Goodwill | 2,734 | 535 |
Other assets | 405 | 321 |
Deferred tax assets | 6 | 134 |
Total assets | 9,380 | 3,834 |
LIABILITIES | ||
Accounts payable and accrued liabilities | 531 | 355 |
Participations and residuals | 499 | 437 |
Film obligations and production loans | 257 | 663 |
Debt - short term portion | 118 | 40 |
Deferred revenue | 180 | 246 |
Total current liabilities | 1,585 | 1,741 |
Debt | 3,457 | 825 |
Participations and residuals | 304 | 170 |
Film obligations and production loans | 162 | 52 |
Other liabilities | 33 | 23 |
Dissenting shareholders' liability | 886 | 0 |
Deferred revenue | 76 | 82 |
Deferred tax liabilities | 461 | 0 |
Redeemable noncontrolling interest | 94 | 91 |
Commitments and contingencies (Note 16) | ||
SHAREHOLDERS' EQUITY | ||
Common shares | 0 | 886 |
Retained earnings (accumulated deficit) | (52) | 8 |
Accumulated other comprehensive loss | (21) | (44) |
Total shareholders' equity | 2,322 | 850 |
Total liabilities and shareholders' equity | 9,380 | 3,834 |
Class A Voting Shares | ||
SHAREHOLDERS' EQUITY | ||
Common shares | 582 | 0 |
Class B Non-Voting Shares | ||
SHAREHOLDERS' EQUITY | ||
Common shares | $ 1,813 | $ 0 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Mar. 31, 2016 |
Common shares, no par value | ||
Authorized common shares | 500,000,000 | |
Common shares, shares issued | 0 | 146,785,940 |
Class A Voting Shares | ||
Common shares, no par value | $ 0 | $ 0 |
Authorized common shares | 500,000,000 | 0 |
Common shares, shares issued | 78,811,162 | 0 |
Class B Non-Voting Shares | ||
Common shares, no par value | $ 0 | $ 0 |
Authorized common shares | 500,000,000 | 0 |
Common shares, shares issued | 120,964,447 | 0 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Statement [Abstract] | |||||
Revenues | $ 752 | $ 671 | $ 1,945 | $ 1,556 | |
Expenses: | |||||
Direct operating | 430 | 404 | 1,183 | 927 | |
Distribution and marketing | 175 | 203 | 522 | 428 | |
General and administration | 89 | 57 | 235 | 180 | |
Depreciation and amortization | 13 | 3 | 23 | 7 | |
Restructuring and other | 52 | 13 | 70 | 18 | |
Total expenses | 759 | 680 | 2,033 | 1,560 | |
Operating loss | (7) | (9) | (88) | (4) | |
Interest expense | |||||
Cash interest | 24 | 12 | 50 | 33 | |
Discount and financing costs amortization | 3 | 2 | 8 | 7 | |
Total interest expense | 27 | 14 | 58 | 40 | |
Interest and other income | (1) | 0 | (4) | (2) | |
Gain on Starz investment | (20) | 0 | (20) | 0 | |
Loss on extinguishment of debt | 28 | 0 | 28 | 0 | |
Total other expenses, net | 34 | 14 | 62 | 38 | |
Loss before equity interests and income taxes | (41) | (23) | (150) | (42) | |
Equity interests income (loss) | (2) | 11 | 11 | 29 | |
Loss before income taxes | (43) | (12) | (139) | (13) | |
Income tax benefit | (12) | (45) | (92) | (44) | |
Net income (loss) | (31) | 33 | (47) | 31 | |
Less: Net loss attributable to noncontrolling interest | 0 | 8 | 0 | 8 | |
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (31) | $ 41 | $ (47) | $ 39 | |
Per share information attributable to Lions Gate Entertainment Corp. shareholders: | |||||
Basic net income (loss) per common share (in usd per share) | $ (0.19) | $ 0.27 | $ (0.31) | $ 0.26 | |
Diluted net income (loss) per common share (in usd per share) | $ (0.19) | $ 0.26 | $ (0.31) | $ 0.26 | |
Weighted average number of common shares outstanding: | |||||
Basic (in shares) | [1] | 161.4 | 149.5 | 152.2 | 148.5 |
Diluted (in shares) | 161.4 | 159.4 | 152.2 | 154.4 | |
Dividends declared per common share (in usd per share) | $ 0 | $ 0.09 | $ 0.09 | $ 0.25 | |
[1] | The weighted average common shares outstanding for the three and nine months ended December 31, 2016 do not include the equity portion of the merger consideration related to the dissenting Starz shareholders as discussed in Note 2 and Note 16. |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (31) | $ 33 | $ (47) | $ 31 |
Foreign currency translation adjustments, net of tax | (2) | (1) | (8) | 1 |
Net unrealized gain (loss) on available-for-sale securities, net of tax | 32 | (16) | 55 | (4) |
Reclassification adjustment for gain on available-for-sale securities realized in net loss | (20) | 0 | (20) | 0 |
Net unrealized gain (loss) on foreign exchange contracts, net of tax | (2) | (1) | (5) | 2 |
Comprehensive income (loss) | (23) | 15 | (25) | 30 |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 8 | 0 | 8 |
Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (23) | $ 23 | $ (25) | $ 38 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statement of Shareholders' Equity - 9 months ended Dec. 31, 2016 - USD ($) $ in Millions | Total | Common Shares | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Class A Voting SharesCommon Shares | Class B Non-Voting SharesCommon Shares |
Beginning balance, shares at Mar. 31, 2016 | 146,785,940 | 0 | 0 | |||
Beginning balance at Mar. 31, 2016 | $ 850 | $ 886 | $ 8 | $ (44) | $ 0 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options, shares | 575,426 | 13,175 | ||||
Exercise of stock options | 0 | $ 1 | $ 0 | |||
Share-based compensation, net of withholding tax obligations, shares | 1,043,342 | 5,235 | 164,706 | |||
Share-based compensation | 8 | $ 36 | $ 2 | $ 6 | ||
Issuance of common shares to directors for services, shares | 18,912 | |||||
Issuance of common shares to directors for services | 0 | $ 0 | ||||
Dividends declared | (13) | $ (7) | (6) | |||
Reclassification of common shares, shares | (148,423,620) | 74,212,042 | 74,212,042 | |||
Reclassification of common shares | 0 | $ (916) | $ 458 | $ 458 | ||
Issuance of common shares related to Starz Merger, shares | 4,593,885 | 45,226,998 | ||||
Issuance of common shares related to Starz Merger | 1,284 | $ 122 | $ 1,162 | |||
Issuance of replacement equity awards related to the Starz Merger, shares | 1,347,526 | |||||
Issuance of replacement equity awards related to the Starz Merger | 187 | $ 187 | ||||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | (47) | (47) | ||||
Foreign currency translation adjustments, net of tax | (8) | (1) | (7) | |||
Net unrealized gain (loss) on available-for-sale securities, net of tax | 55 | 55 | ||||
Reclassification adjustment for gain on available-for-sale securities realized in net loss | (20) | |||||
Net unrealized loss on foreign exchange contracts, net of tax | (5) | (5) | ||||
Noncontrolling interest adjustments to redemption value | (6) | (6) | ||||
Ending balance, shares at Dec. 31, 2016 | 0 | 78,811,162 | 120,964,447 | |||
Ending balance at Dec. 31, 2016 | $ 2,322 | $ 0 | $ (52) | $ (21) | $ 582 | $ 1,813 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | ||
Net income (loss) | $ (47) | $ 31 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 23 | 7 |
Amortization of films and television programs and program rights | 902 | 655 |
Discount and financing costs amortization | 8 | 7 |
Non-cash share-based compensation | 74 | 47 |
Other non-cash items | 4 | 1 |
Distribution from equity method investee | 14 | 0 |
Gain on Starz investment | (20) | 0 |
Loss on extinguishment of debt | (28) | 0 |
Equity interests income | (11) | (29) |
Deferred income taxes | (109) | (55) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 59 | (37) |
Investment in films and television programs and program rights, net | (660) | (771) |
Other assets | (6) | (2) |
Accounts payable and accrued liabilities | 79 | (8) |
Participations and residuals | 126 | 77 |
Film obligations | 24 | (30) |
Deferred revenue | (72) | (4) |
Net Cash Flows Provided By (Used In) Operating Activities | 416 | (111) |
Investing Activities: | ||
Investment in equity method investees and other | (13) | (4) |
Distributions from equity method investees | 2 | 0 |
Purchase of Starz, net of cash acquired of $73 (see Note 2) | (1,057) | 0 |
Purchase of Pilgrim Media Group, net of cash acquired of $16 (see Note 2) | 0 | (127) |
Capital expenditures | (16) | (14) |
Net Cash Flows Used In Investing Activities | (1,084) | (145) |
Financing Activities: | ||
Debt - borrowings | 3,911 | 262 |
Debt - repayments | (2,252) | (238) |
Production loans - borrowings | 231 | 510 |
Production loans - repayments | (623) | (241) |
Dividends paid | (27) | (34) |
Distributions to noncontrolling interest | (6) | 0 |
Exercise of stock options | 1 | 6 |
Tax withholding required on equity awards | (32) | (23) |
Net Cash Flows Provided By Financing Activities | 1,203 | 242 |
Net Change In Cash And Cash Equivalents | 535 | (14) |
Foreign Exchange Effects on Cash | 2 | (1) |
Cash and Cash Equivalents - Beginning Of Period | 58 | 103 |
Cash and Cash Equivalents - End Of Period | $ 595 | $ 88 |
Unaudited Condensed Consolidat8
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Starz | ||
Cash acquired from acquisition | $ 73 | |
Pilgrim Media Group | ||
Cash acquired from acquisition | $ 16 |
General
General | 9 Months Ended |
Dec. 31, 2016 | |
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 vertically integrated next generation global content leader with a diversified presence in motion picture production and distribution, television programming and syndication, premium pay television networks, home entertainment, global distribution and sales, interactive ventures and games and location-based entertainment. 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 and nine months ended December 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2017 . The balance sheet at March 31, 2016 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, 2016 . Balance Sheet Reclassifications: Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. Historically, the Company has presented an unclassified balance sheet. As a result of the merger with Starz (see Note 2), the Company is now presenting a classified balance sheet and, accordingly, reclassification adjustments to the Company's historical unclassified balance sheet have been made to present an unaudited condensed consolidated classified balance sheet. In addition to these reclassification adjustments, the Company has made the following reclassifications to the unaudited condensed consolidated balance sheet as of March 31, 2016 to conform to the current year presentation: (i) reclassified $21 million of product inventory from investment in film and television programs to other current assets; (ii) reclassified $222 million of long-term accounts receivable to other non-current assets; (iii) reclassified $190 million of short-term tax credits receivable to other current assets and $67 million of long-term tax credits receivable to other non-current assets; (iv) reclassified $11 million of intangible assets from other assets to the new separate line item for intangible assets; (v) reclassified the carrying value of its previous senior revolving credit facility ( $156 million ), former 5.25% senior notes ( $221 million ), former term loan ( $388 million ) and convertible senior subordinated notes ( $100 million ) into the new separate line item for debt (current and non-current) on the unaudited condensed consolidated balance sheet. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; the allocations made in connection with the amortization of program rights; 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 including the assessment of valuation allowances for deferred tax assets; 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. Significant Accounting Policies The Company's significant accounting policies are summarized in Note 1 to the consolidated financial statements included in our Form 10-K for the year ended March 31, 2016. An update and supplement to these accounting policies associated with our merger with Starz (see Note 2) is below. Program Rights: The cost of program rights for films and television programs exhibited on the Starz premium networks are generally amortized on a title-by-title or episode-by-episode basis over the anticipated number of exhibitions. The number of exhibitions is estimated based on the number of exhibitions allowed in the agreement (if specified) and the expected usage of the content. Certain other program rights are amortized to expense on a straight-line basis over the respective lives of the agreements. Programming rights may include rights to more than one exploitation window under its output and library agreements. For films with multiple windows, the license fee is allocated between the windows based upon the proportionate estimated fair value of each window which generally results in the majority of the cost allocated to the first window. The cost of original series in the Company's new Media Networks reporting segment (see Note 15) is allocated between the pay television market, and the ancillary revenue markets (e.g., home video, digital platforms, international television, etc.) based on the estimated relative fair values of these markets. The amount associated with the pay television market is reclassified from investment in film and television programs to program rights when the program is aired and the portion attributable to the ancillary markets remains in investment in films and television programs within the Media Networks segment. All the costs of original programming that is produced by the Media Networks segment are classified as long term. Amounts included in program rights, other than internally produced programming, that are expected to be amortized within a year from the balance sheet date are classified as short-term. Revenue Recognition: Programming revenue is recognized in the period during which programming is provided, pursuant to affiliation agreements. If an affiliation agreement has expired, revenue is recognized based on the terms of the expired agreement or the actual payment from the distributor, whichever is less. Any funds received in excess of fixed and determinable programming revenue are recorded as a liability in deferred revenue until the discrepancy is resolved. Payments to distributors for marketing support costs for which the Company does not receive a direct benefit are recorded as a reduction of revenue. Advertising and Marketing Costs: Advertising and marketing costs are expensed as incurred. Certain of Starz’s affiliation agreements require Starz to provide marketing support to the distributor based upon certain criteria as stipulated in the agreements. Marketing support includes cooperative advertising and marketing efforts between Starz and its distributors such as cross channel, direct mail and point of sale incentives. Marketing support is recorded as an expense and not a reduction of revenue when Starz has received a direct benefit and the fair value of such benefit is determinable. Recent Accounting Pronouncements Revenue Recognition : In May 2014, the Financial Accounting Standards Board (the "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 new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. Based on the current guidance, the new framework will become effective on either a full or modified retrospective basis for the Company on April 1, 2018. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. Presentation of Debt Issuance Costs : 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, and must be applied on a retrospective basis to all prior periods presented in the financial statements. The Company adopted the new guidance effective April 1, 2016, which resulted in the reclassification of approximately $21 million of debt issuance costs from other assets to their respective debt liabilities in the unaudited condensed consolidated balance sheets as of March 31, 2016. Balance Sheet Classification of Deferred Taxes: In April 2015, the FASB issued guidance to simplify the presentation of deferred income taxes, which removes the requirement to separate deferred tax liabilities and assets into current and non-current amounts and instead requires all such amounts be classified as non-current on the Company's consolidated balance sheets. The guidance is effective for the Company's fiscal year beginning April 1, 2017, with early adoption permitted, and can be adopted on either a retrospective or prospective basis. The Company adopted the new guidance on a retrospective basis effective October 1, 2016. As discussed in Note 1, the Company previously presented an unclassified balance sheet and upon changing to presenting a classified balance sheet, all deferred tax assets and liabilities have been classified as long-term. Recognition and Measurement of Financial Instruments : In January 2016, the FASB issued new guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other provisions, the new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. For investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. The guidance is effective for the Company's fiscal year beginning April 1, 2018. Early adoption is not permitted, except for certain provisions relating to financial liabilities. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. Accounting for Leases : In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The new guidance also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The guidance is effective for the Company's fiscal year beginning April 1, 2019, with early adoption permitted, and is required to be implemented using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. Employee Share-Based Payment Accounting : In March 2016, the FASB issued amended guidance related to employee share-based payment accounting. One aspect of the guidance, which will become effective on a prospective basis, requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. In addition, the guidance eliminates the requirement that excess tax benefits be realized (i.e., through a reduction in income taxes payable) before companies can recognize them. This part of the guidance will be applied using a modified retrospective transition method and will result in the Company recording a cumulative-effect adjustment in retained earnings for excess tax benefits not previously recognized. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retrospectively or prospectively. The guidance also increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. Finally, the guidance provides for an election to account for forfeitures of share-based payments either by (1) recognizing forfeitures of awards as they occur or (2) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change (as is required under the current guidance). The guidance is effective for the Company's fiscal year beginning April 1, 2017. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. Equity Method of Accounting : In March 2016, the FASB issued guidance that changes the requirements for equity method accounting when an investment qualifies for use of the equity method as a result of an increase in the investor’s ownership interest in or degree of influence over an investee. The guidance (i) eliminates the need to retroactively apply the equity method of accounting upon qualifying for such treatment, (ii) requires that the cost of acquiring the additional interest in an investee be added to the basis of the previously held interest and (iii) requires that unrealized holding gains or losses for available-for-sale equity securities that qualify for the equity method of accounting be recognized in earnings at the date the investment becomes qualified for use of the equity method of accounting. The guidance is effective for the Company's fiscal year beginning April 1, 2017. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. Classification of Certain Cash Receipts and Cash Payments: In August 2016, the FASB issued guidance that clarifies how entities should classify certain cash receipts and payments on the statement of cash flows. The guidance primarily relates to the classification of cash flows associated with certain (i) debt transactions including debt prepayment or extinguishment costs, (ii) contingent consideration arrangements related to a business combination, (iii) insurance claims and policies, (iv) distributions from equity method investees and (v) securitization transactions. This guidance is effective for the Company's fiscal year beginning April 1, 2018, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this new guidance will have on its statement of cash flows. Restricted Cash: In November 2016, the FASB issued guidance to clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The guidance will be applied retrospectively and is effective for the Company’s fiscal year beginning April 1, 2018, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Mergers and Acquisitions
Mergers and Acquisitions | 9 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | Mergers and Acquisitions Starz Merger On December 8, 2016, upon shareholder approval, pursuant to the Agreement and Plan of Merger dated June 30, 2016 ("Merger Agreement"), Lionsgate and Starz consummated the merger, under which Lionsgate acquired Starz for a combination of cash and common stock (the "Starz Merger"). Reclassification of Capital Stock and Purchase Consideration. Immediately prior to the consummation of the Starz Merger, Lionsgate effected the reclassification of its capital stock, pursuant to which each existing Lionsgate common share was converted into 0.5 shares of a newly issued class of Lionsgate Class A voting shares and 0.5 shares of a newly issued class of Lionsgate Class B non-voting shares, subject to the terms and conditions of the Merger Agreement. Following the reclassification (a) each share of Starz Series A common stock was converted into the right to receive $18.00 in cash and 0.6784 of a share of Lionsgate Class B non-voting shares, and (b) each share of Starz Series B common stock was converted into the right to receive $7.26 in cash, 0.6321 of a share of Lionsgate Class B non-voting shares and 0.6321 of a share of Lionsgate Class A voting shares, in each case, subject to the terms and conditions of the Merger Agreement. As a result of the reclassification discussed above, the fair value of Lions Gate Class A voting shares and Lions Gate Class B non-voting shares was estimated based on the closing price of the common shares on December 8, 2016 (i.e., $26.09 ) before the reclassification and applying a small premium or discount to the Class A voting and Class B non-voting shares, based on a historical analysis of the spread of trading prices of voting and non-voting stock of comparable companies. Accordingly, a value of $26.48 was estimated with respect to the Class A voting shares, and $25.70 was estimated with respect to the Class B non-voting shares for purposes of recording the share portion of the consideration to be paid to Starz stockholders. In connection with the merger between the Company and Starz, as of December 31, 2016, Starz has received demands for appraisal from purported holders of approximately 25.0 million shares of Starz Series A common stock. Neither the Company nor Starz has determined at this time whether any of such demands satisfy the requirements of Delaware law for perfecting appraisal rights. As of December 31, 2016, the Company has not paid the merger consideration for the shares that have demanded appraisal but has recorded a liability of $886 million that is included in dissenting shareholders' liability on the unaudited condensed consolidated balance sheet for the estimated value of the merger consideration that would have been payable for such shares. Since the merger closed on December 8, 2016, three petitions for appraisal have been filed in the Court of Chancery of the State of Delaware. See Note 16 for a discussion of these proceedings. Should the pending appraisal proceedings reach a verdict, stockholders that are determined to have validly perfected their appraisal rights will be entitled to a cash payment equal to the fair value of their shares, plus interest, as determined by the court. The amounts, if any, that the Company may be required to pay to stockholders in connection with the pending appraisal proceedings is uncertain at this time, but could be greater than the merger consideration to which such stockholders would have been entitled had they not demanded appraisal. At any time within 60 days after the effective date of the merger or, February 6, 2017, dissenting shareholders had the right to withdraw their demand for appraisal rights and accept the merger consideration in accordance with the Merger Agreement. The Company received notices from dissenting shareholders withdrawing such demands totaling 2,510,485 shares. The following table summarizes the components of the estimated purchase consideration, inclusive of Lions Gate’s existing ownership of Starz common stock and Starz’s share-based equity awards outstanding as of December 8, 2016: (Amounts in millions) Market value, as of December 8, 2016, of Starz Series A and Series B common stock already owned by Lionsgate (1) $ 179 Cash consideration paid to Starz stockholders Starz Series A common stock at $18.00 $ 1,077 Starz Series B common stock at $7.26 53 1,130 Fair value of Lionsgate voting and non-voting shares issued to Starz's stockholders Starz Series A common stock at exchange ratio of 0.6784 Lionsgate non-voting shares $ 1,044 Starz Series B common stock at exchange ratio of 0.6321 Lionsgate voting shares 122 Starz Series B common stock at exchange ratio of 0.6321 Lionsgate non-voting shares 118 1,284 Replacement of Starz share-based payment awards (2) 187 Liability for dissenting shareholders 886 Total preliminary estimated purchase consideration $ 3,666 (1) The difference between the fair value of the Starz available-for-sale securities owned by Lionsgate and the original cost of the Starz available-for-sale securities of $159 million , of $20 million , has been reflected in the gain on Starz investment line item in the unaudited condensed consolidated statement of operations for the three and nine months ended December 31, 2016. See Note 4. (2) Upon the closing of the merger, each outstanding share-based equity award (i.e., stock options, restricted stock, and restricted stock units) of Starz was replaced by a Lions Gate non-voting share-based equity award (“Lions Gate replacement award”) with terms equivalent to the existing awards based on the exchange ratio set forth in the Merger Agreement. Each Starz outstanding award was measured at fair value on the date of acquisition and the portion attributable to pre-combination service was recorded as part of the purchase consideration. The fair value of the Lions Gate replacement award measured on the date of acquisition in excess of the fair value of the Starz award attributed to and recorded as part of the purchase consideration was attributed to post-combination services and will be recognized as share-based compensation expense over the remaining post-combination service period. The estimated aggregate fair value of the Lions Gate replacement awards to be recorded as part of the purchase consideration is $187 million , and the estimated remaining aggregate fair value totaling $43 million will be recognized in future periods in accordance with each respective award’s vesting terms. The fair value of the Lions Gate replacement restricted stock and restricted stock unit awards was determined based on the value estimated for the Class A voting shares and Class B non-voting shares as of the acquisition date as discussed above. The fair value of Lions Gate replacement stock option awards was determined using the Black-Scholes option valuation model using the estimated fair value of the Class B non-voting shares underlying the replacement stock options. For purposes of valuing the Lions Gate replacement awards, the following weighted-average applicable assumptions were used in the Black-Scholes option valuation model: Weighted average assumptions: Risk-free interest rate 0.00% - 1.83% Expected option lives (years) 0.01 - 5.50 years Expected volatility 35% Expected dividend yield 0% The risk-free rate assumed in valuing the options is based on the U.S. Treasury Yield curve in effect applied against the expected term of the option at the time of the grant. The expected option lives represents the period of time that options are expected to be outstanding. Expected volatilities are based on implied volatilities from traded options on Lions Gate’s stock, historical volatility of Lions Gate’s stock and other factors. The expected dividend yield is based on an assumption that the combined company has suspended the quarterly dividend. Allocation of Preliminary Purchase Consideration. The Company has made a preliminary allocation of the estimated purchase price of Starz to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value. The preliminary allocation of the estimated purchase price is based upon management's estimates and is subject to revision, as a more detailed analysis of program rights, investment in films and television programs, intangible assets, certain tangible capital assets, and tax and other liabilities is completed and additional information on the fair value of assets and liabilities becomes available, including receipt of final appraisals of the net assets acquired. A change in the fair value of the net assets may change the amount of the purchase price allocable to goodwill, and could impact the amounts of amortization expense. The preliminary estimated purchase price of Starz has been allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value as follows: (Amounts in millions) Cash and cash equivalents $ 73 Accounts receivable 257 Investment in films and television programs and program rights 843 Property and equipment 121 Investments 12 Intangible assets 2,021 Other assets 128 Accounts payable and accrued liabilities (114 ) Corporate debt and capital lease obligations (1,016 ) Deferred tax liabilities (701 ) Other liabilities (157 ) Fair value of net assets acquired 1,467 Goodwill 2,199 Total estimated purchase consideration $ 3,666 Fair Value Estimates: The fair value of the assets acquired and liabilities assumed were preliminarily determined using income, cost and market approaches. The fair value measurements were primarily based on significant inputs that are not observable in the market and thus represent a Level 3 measurement as defined in ASC 820, other than the long-term debt assumed in the acquisition. The income approach was primarily used to value the intangible assets, consisting primarily of acquired customer relationships and tradenames. The intangible assets acquired include customer relationships with a weighted average estimated useful life of 17 years and tradenames with an indefinite useful life (see Note 5). The fair value of customer relationships was preliminarily estimated based on the estimated future cash flows to be generated from the customer affiliation contracts considering assumptions related to contract renewal rates and revenue growth based on the number of subscribers and contract rates. The earnings expected to be generated by the customer relationships were forecasted over the estimated duration of the intangible asset. The earnings were then adjusted by taxes and the required return for the use of the contributory assets and discounted to present value at a rate commensurate with the risk of the asset. The fair value of tradenames was preliminarily estimated based on the present value of the theoretical cost savings that could be realized by the owner of the tradenames as a result of not having to pay a stream of royalty payments to another party. These cost savings were calculated based on the hypothetical royalty payment that a licensee would be required to pay in exchange for use of the tradenames, reduced by the tax shield realized by the licensee on the royalty payments. The cost savings were discounted to present value at a rate commensurate with the risk of the asset. Investment in films and television programs include the cost of completed films and television programs (including original series) which have been produced by Starz or for which Starz has acquired distribution rights, as well as the costs of films and television programs in production, pre-production and development. For film and television programs in production, pre-production and development, the fair value has been preliminarily estimated to be the recorded book value. For completed films and television programs, the fair value was preliminarily estimated based on forecasted cash flows discounted to present value at a rate commensurate with the risk of the assets. For tangible capital assets held under capital leases the income approach was utilized in valuing the tangible capital assets, including the satellite transponders and the real property, under a right-to-use scenario. The fair value of the capital asset was estimated by forecasting a market lease rate over the remaining term of the contract and discounting the payments using a market participant lease rate reflective of the riskiness of the asset. The fair value of the capital lease liability was estimated by forecasting the contract lease rate over the remaining term of the contract and discounting payments using a market participant debt rate reflective of the riskiness of the lessee. We estimated the fair value of the asset retirement obligation by utilizing an estimate of cost to retire the asset, inflating it to the end of the contract term and discounting it at a market participant debt rate reflective of the riskiness of the lessee. The cost approach was utilized in valuing the tangible personal property using standard methodologies to estimate a replacement cost new and depreciation effects for each asset. Replacement cost new was estimated using historical costs and acquisition dates of the assets along with inflationary measures specific to the types of assets included in the valuation. Depreciation effects encompass physical deterioration, functional obsolescence, and economic obsolescence. Replacement cost new less depreciation results in an estimate of fair value when using the cost approach. The fair value of program rights has been preliminarily assumed to be the recorded book value, based on an assessment that such content is acquired or produced at fair value and aired over relatively short periods (a few years) and thus the amortization of the cost reflects the decline in the fair value of the content over time. As part of the acquisition, we assumed and immediately extinguished Starz's senior notes, which had a principal amount outstanding of $675 million , and Starz's credit facility, which had an outstanding amount of $255 million (see Note 6). The former Starz senior notes were adjusted to fair value prior to extinguishment using quoted market values, and the fair value of the outstanding amounts under Starz's credit facility were estimated to approximate their carrying value. Deferred taxes were adjusted to record the deferred tax impact of acquisition accounting adjustments primarily related to intangible assets. The incremental deferred tax liabilities were calculated based on the tax effect of the step-up in book basis of the net assets of Starz, excluding the amount attributable to goodwill, using the estimated statutory tax rates. Goodwill of $2.2 billion represents the excess of the estimated purchase price over the fair value of the underlying tangible and identifiable intangible assets acquired and liabilities assumed. The acquisition goodwill arises from the increase in the combined company’s content creation capability and enhanced scale to its global distribution footprint across mobile, broadband, cable and satellite platforms. In addition, the acquisition goodwill arises from the opportunity for a broad range of new content partnerships and accelerates the growth of Lionsgate and Starz’s over-the-top (which primarily represent internet streaming services and which the Company refers to as “OTT”) services, as well as other anticipated revenue and cost synergies. The goodwill recorded as part of this acquisition is included in the Motion Pictures and Media Networks segment (see Note 5). The goodwill will not be amortized for financial reporting purposes, and will not be deductible for federal tax purposes. Pro Forma Statement of Operations Information. The merger was accounted for under the acquisition method of accounting, with the results of operations of Starz included in the Company's consolidated results from December 8, 2016. Revenues and income before income taxes for the period from December 8, 2016 through December 31, 2016 of Starz were $97 million and $40 million , respectively. The following unaudited pro forma condensed consolidated statements of operations information presented below illustrate the results of operations of the Company as if the Starz Merger and related debt financing (see Note 6) occurred on April 1, 2015. Nine Months Ended December 31, 2016 2015 (Amounts in millions, except per share amounts) Revenues $ 3,063 $ 2,806 Net income attributable to Lions Gate Entertainment Corp. shareholders $ 119 $ 134 Basic Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.61 $ 0.68 Diluted Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.60 $ 0.63 The unaudited pro forma condensed consolidated statement of operations information does not include adjustments for any operating efficiencies or cost savings, and exclude $61 million of acquisition-related and restructuring costs that were expensed in restructuring and other expenses during the nine months ended December 31, 2016. During the three months ended December 31, 2016, the Company incurred approximately $49 million of merger-related costs that were expensed in restructuring and other expenses in the unaudited condensed consolidated statements of operations. Pilgrim Media Group On November 12, 2015, the Company purchased 62.5% of the membership interests in Pilgrim Media Group, LLC ("Pilgrim Media Group"), a worldwide independent reality television producer and distributor. The aggregate purchase price was approximately $202 million . The purchase price consisted of $145 million in cash and 1,517,451 of the Company's former common shares, valued at $57 million . These shares were valued based on the closing price of the Company’s common shares on the date of closing of the acquisition, discounted to the fair value of the shares considering certain transfer restrictions. The Company incurred approximately $3 million of acquisition-related costs that were expensed in restructuring and other expenses during the year ended March 31, 2016. Pro Forma Statement of Operations Information. The following unaudited pro forma condensed consolidated statement of operations information presented below illustrate the results of operations of the Company as if the acquisition of Pilgrim Media Group as described above occurred on April 1, 2015. The statement of operations information below includes the statement of income of Pilgrim Media Group for the nine months ended September 30, 2015 combined with the Company's statement of operations for the nine months ended December 31, 2015. Nine Months Ended December 31, 2015 (Amounts in millions, except per share amounts) Revenues $ 1,662 Net income attributable to Lions Gate Entertainment Corp. shareholders $ 46 Basic Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.31 Diluted Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.30 The unaudited pro forma condensed consolidated statement of operations information does not include adjustments for any restructuring activities, operating efficiencies or cost savings, and exclude certain one-time transactional costs of $8 million attributable to the noncontrolling shareholder expensed in connection with the transaction, as well as $3 million of acquisition-related costs that were expensed in restructuring and other expenses during the year ended March 31, 2016. |
Investment In Films and Televis
Investment In Films and Television Programs and Program Rights | 9 Months Ended |
Dec. 31, 2016 | |
Investment In Films And Television Programs and Program Rights [Abstract] | |
Investment In Films and Television Programs and Program Rights | Investment in Films and Television Programs and Program Rights December 31, March 31, (Amounts in millions) Motion Pictures Segment - Theatrical and Non-Theatrical Films Released, net of accumulated amortization $ 576 $ 584 Acquired libraries, net of accumulated amortization 3 4 Completed and not released 35 34 In progress 279 422 In development 38 28 931 1,072 Television Production Segment - Direct-to-Television Programs Released, net of accumulated amortization 210 189 In progress 119 191 In development 7 6 336 386 Media Networks Segment Licensed program rights, net of accumulated amortization 503 — Produced programming Released, net of accumulated amortization 107 — In progress 168 — In development 7 — 785 — Investment in films and television programs and program rights, net 2,052 1,458 Less current portion of program rights (236 ) — Non-current portion $ 1,816 $ 1,458 The Company expects approximately 51% of completed films and television programs, excluding licensed program rights, will be amortized during the one-year period ending December 31, 2017 . Additionally, the Company expects approximately 83% of completed and released films and television programs, excluding licensed program rights and acquired libraries, will be amortized during the three-year period ending December 31, 2019 . Licensed program rights expected to be amortized within one-year from the balance sheet date are classified as short-term in the unaudited condensed consolidated balance sheet. During the three and nine months ended December 31, 2016 and 2015, the Company performed fair value measurements related to films having indicators of impairment. In determining the fair value of its films, the Company employs a discounted cash flows ("DCF") methodology that includes cash flow estimates of a film’s ultimate revenue and costs as well as a discount rate. The discount rate utilized in the DCF analysis is based on the Company’s weighted average cost of capital plus a risk premium representing the risk associated with producing a particular film. As the primary determination of fair value is determined using a DCF model, the resulting fair value is considered a Level 3 measurement (see Note 9). During the three and nine months ended December 31, 2016 , the Company recorded $2 million and $7 million , respectively, of fair value film write-downs, as compared to $3 million and $12 million , respectively, of fair value film write-downs recorded during the three and nine months months ended December 31, 2015. |
Investments
Investments | 9 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments, Cost Method Investments, and Investments in Debt and Equity [Abstract] | |
Investments | Investments The carrying amounts of investments, by category, at December 31, 2016 and March 31, 2016 were as follows: December 31, March 31, (Amounts in millions) Equity method investments $ 314 $ 297 Available-for-sale securities — 124 Cost method investments 43 43 $ 357 $ 464 Equity Method Investments: The carrying amounts of equity method investments at December 31, 2016 and March 31, 2016 were as follows: December 31, Equity Method Investee Ownership Percentage December 31, March 31, (Amounts in millions) EPIX 31.2% $ 179 $ 172 Pop 50.0% 94 99 Other Various 41 26 $ 314 $ 297 Equity interests in equity method investments for the three and nine months ended December 31, 2016 and 2015 were as follows (income (loss)): Three Months Ended Nine Months Ended December 31, December 31, Equity Method Investee 2016 2015 2016 2015 (Amounts in millions) EPIX $ 5 $ 13 $ 21 $ 34 Pop (3 ) — (5 ) 1 Other (4 ) (2 ) (5 ) (6 ) $ (2 ) $ 11 $ 11 $ 29 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 million through September 30, 2010, and no additional amounts have been funded since. Since the Company's original investment in April 2008, the Company has received distributions from EPIX of $42 million . During the three and nine months ended December 31, 2016 , the Company received distributions from EPIX of $14 million ( three and nine months ended December 31, 2015 - none ). EPIX Financial Information: The following table presents summarized balance sheet data as of December 31, 2016 and March 31, 2016 for EPIX: December 31, March 31, (Amounts in millions) Current assets $ 386 $ 356 Non-current assets $ 393 $ 360 Current liabilities $ 113 $ 91 Non-current liabilities $ 23 $ 24 The following table presents the summarized statements of income for the three and nine months ended December 31, 2016 and 2015 for EPIX and a reconciliation of the net income reported by EPIX to equity interest income recorded by the Company: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Revenues $ 101 $ 98 $ 298 $ 315 Expenses: Operating expenses 73 56 194 190 Selling, general and administrative expenses 5 6 18 18 Operating income 23 36 86 107 Interest and other expense — — — (2 ) Net income $ 23 $ 36 $ 86 $ 105 Reconciliation of net income reported by EPIX to equity interest income: Net income reported by EPIX $ 23 $ 36 $ 86 $ 105 Ownership interest in EPIX 31.15 % 31.15 % 31.15 % 31.15 % The Company's share of net income 7 11 27 33 Eliminations of the Company’s share of profits on licensing sales to EPIX (1) (4 ) — (10 ) (6 ) Realization of the Company’s share of profits on licensing sales to EPIX (2) 2 2 4 7 Total equity interest income recorded $ 5 $ 13 $ 21 $ 34 _________________________ (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. Pop is the Company's joint venture with CBS. The Company’s investment interest in Pop consists of an equity investment in its common stock units and mandatorily redeemable preferred stock units. 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 and nine months ended December 31, 2016 , the Company made no contributions to Pop (2015 - none and $1 million , respectively). 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. 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 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 10% . 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% 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% interest in Pantelion Films. Atom Tickets. Atom Tickets is the first-of-its-kind theatrical mobile ticketing platform and app. The Company made initial investments totaling $4 million in Atom Tickets during the year ended March 31, 2015. During the year ended March 31, 2016, the Company agreed to participate in an equity offering of Atom Tickets and subscribed for an additional $8 million in equity interests. The Company owns an interest of approximately 19% 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. Playco. Playco Holdings Limited ("Playco") offers a STARZ-branded online subscription video-on-demand service in the Middle East and North Africa. The Company owns an approximately 41.3% interest in Playco. Other. In addition to the equity method investments discussed above, the Company holds ownership interests in other immaterial equity method investees. Available-for-Sale Securities: The cost basis, unrealized losses and fair market value of available-for-sale securities were as set forth below: March 31, (Amounts in millions) Cost basis $ 159 Gross unrealized loss (35 ) Fair value $ 124 Starz. At March 31, 2016 , 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 the then 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"). On December 8, 2016, the Company merged with Starz (see Note 2), and accordingly, the difference between the fair value of the Starz available-for-sale securities on December 8, 2016 of $179 million and the original cost of the Starz available-for-sale securities of $159 million represented a gain of $20 million , which has been reflected in in the gain on Starz investment line item in the Company's unaudited condensed consolidated statements of operations for the three and nine months ended December 31, 2016. Such amounts have been reclassified out of accumulated other comprehensive loss to net loss for the three and nine months ended December 31, 2016. 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 million in Telltale, which consisted of cash of $28 million and 361,229 shares of then newly issued common shares of the Company with a fair value of approximately $12 million 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 million in Next Games for a small minority ownership interest. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Changes in the carrying value of goodwill by reporting segment were as follows: Motion Pictures Television Production Media Networks Total (Amounts in millions) Balance as of March 31, 2016 $ 294 $ 241 $ — $ 535 Starz Merger 68 — 2,131 2,199 Balance as of December 31, 2016 $ 362 $ 241 $ 2,131 $ 2,734 As a result of the reorganization of the Company's reporting segments (see Note 15) in connection with the Starz Merger (see Note 2), the goodwill resulting from the acquisition was allocated to the Media Networks and Motion Pictures segments based on the estimate of the relative fair value of the businesses included in each segment. Intangible Assets Finite-lived intangible assets consisted of the following as of December 31, 2016 and March 31, 2016 : December 31, 2016 March 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Amounts in millions) Finite-lived intangible assets subject to amortization: Customer relationships $ 1,771 $ 7 $ 1,764 $ — $ — $ — Trademarks and trade names 9 7 2 9 7 2 Other 10 2 8 9 — 9 $ 1,790 $ 16 $ 1,774 $ 18 $ 7 $ 11 Indefinite-lived intangible assets not subject to amortization consisted of the following: December 31, 2016 March 31, 2016 (Amounts in millions) Indefinite-lived intangible assets not subject to amortization: Tradenames $ 250 $ — The increase in the carrying value of intangible assets from March 31, 2016 was primarily due to intangible assets acquired in the Starz Merger. The intangible assets acquired were (i) customer relationships primarily representing affiliation agreements with distributors, and (ii) tradenames primarily related to the Starz brand name, which have an indefinite useful life and are not amortized, but rather are assessed for impairment at least annually or more frequently whenever events or circumstances indicate that the rights might be impaired. The allocation of the intangible assets acquired is preliminary and subject to revision as a more detailed analysis is completed and additional information on the fair value of assets and liabilities becomes available, including receipt of final appraisals of the net assets acquired. See Note 2 for further information. Amortization expense associated with the Company's intangible assets for the three and nine months ended December 31, 2016 was approximately $7 million and $8 million , respectively (2015 - $1 million and $2 million , respectively). Amortization expense remaining relating to intangible assets for each of the years ending March 31, 2017 through 2021 is estimated to be approximately $27 million , $106 million , $106 million , $106 million , and $106 million , respectively. |
Debt
Debt | 9 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Corporate Debt | Total debt of the Company, excluding film obligations and production loans, was as follows as of December 31, 2016 and March 31, 2016 : December 31, March 31, (Amounts in millions) Corporate debt: Revolving credit facilities $ — $ 161 Term Loan A 1,000 — Term Loan B 2,000 — 5.875% Senior Notes 520 — 5.25% Senior Notes — 225 Term Loan Due 2022 — 400 Total corporate debt 3,520 786 Convertible senior subordinated notes 102 102 Capital lease obligations 59 — Total debt 3,681 888 Unamortized discount and debt issuance costs, net of fair value adjustment on capital lease obligations (106 ) (23 ) Total debt, net 3,575 865 Less current portion (118 ) (40 ) Non-current portion of debt $ 3,457 $ 825 The following table sets forth future annual contractual principal payment commitments of debt as of December 31, 2016 : Maturity Date Year Ended March 31, Debt Type 2017 2018 2019 2020 2021 Thereafter Total (Amounts in millions) Revolving credit facility December 2021 $ — $ — $ — $ — $ — $ — $ — Term Loan A December 2021 13 50 55 77 100 705 1,000 Term Loan B December 2023 5 20 20 20 20 1,915 2,000 5.875% Senior Notes November 2024 — — — — — 520 520 Capital lease obligations Various 1 6 6 4 3 39 59 Principal amounts of convertible senior subordinated notes: January 2012 4.00% Notes January 2017 42 — — — — — 42 April 2013 1.25% Notes April 2018 — — 60 — — — 60 $ 61 $ 76 $ 141 $ 101 $ 123 $ 3,179 3,681 Less aggregate unamortized discount & debt issuance costs, net of fair value adjustment on capital lease obligations (106 ) $ 3,575 Senior Credit Facilities Issuance. On December 8, 2016, Lions Gate Entertainment Corp. entered into a credit and guarantee agreement (the "Credit Agreement"), providing for a $1.0 billion five -year revolving credit facility (ii) a $1.0 billion five -year term loan A facility (the "Term Loan A") and (iii) a $2.0 billion seven -year term loan B facility (the "Term Loan B" and together, the "Senior Credit Facilities"). The Term Loan B facility was issued at 99.5% . Revolving Credit Facility Availability of Funds & Commitment Fee. The revolving credit facility provides for borrowings and letters of credit up to an aggregate of $1.0 billion , and at December 31, 2016 there was $1.0 billion available. However, borrowing levels are subject to certain financial covenants as discussed below. There were no letters of credit outstanding at December 31, 2016 . The Company is required to pay a quarterly commitment fee on the revolving credit facility of 0.250% to 0.375% per annum, depending on the achievement of certain leverage ratios, as defined in the credit agreement, on the total revolving credit facility of $1.0 billion less the amount drawn. Maturity Date: • Revolving Credit Facility & Term Loan A: December 8, 2021. • Term Loan B: December 8, 2023. Interest: • Revolving Credit Facility & Term Loan A: Initially bears interest at a rate per annum equal to LIBOR plus 2.5% (or an alternative base rate plus 1.5% ) margin, subject to possible reductions in the margin of up to 50 basis points ( two reductions of 25 basis points each) upon achievement of certain net first lien leverage ratios, as defined in the credit agreement (effective interest rate of 3.19% as of December 31, 2016 ). • Term Loan B: Initially bears interest at a rate per annum equal to LIBOR (subject to a LIBOR floor of 0.75% ) plus 3.00% (or an alternative base rate plus 2.00% ) margin (effective interest rate of 3.75% as of December 31, 2016 ). Required Principal Payments: • Term Loan A: Quarterly principal payments beginning the last day of the first full fiscal quarter ending after December 8, 2016, at quarterly rates of 1.25% for the first and second years, 1.75% for the third year, and 2.50% for the fourth and fifth years, with the balance payable at maturity. • Term Loan B: Quarterly principal payments beginning the last day of the first full fiscal quarter ending after December 8, 2016, at a quarterly rate of 0.25% , with the balance payable at maturity. The Term Loan A and Term Loan B also require mandatory prepayments in connection with certain asset sales, subject to certain significant exceptions, and the Term Loan B is subject to additional mandatory repayment from specified percentages of excess cash flow, as defined in the Credit Agreement. Optional Prepayment: • Revolving Credit Facility & Term Loan A: The Company may voluntarily prepay the revolving credit facility and Term Loan A at any time without premium or penalty. • Term Loan B: The Company may voluntarily prepay the Term Loan B at any time, provided that if prepaid in connection with a Repricing Transaction (as defined in the Credit Agreement) on or before 12 months after the Closing Date (as defined in the Credit Agreement), the Company shall pay to lenders a prepayment premium of 1.0% of the loans prepaid. Security. The Senior Credit Facilities are guaranteed by the Guarantors (as defined in the Credit Agreement) and are secured by a security interest in substantially all of the assets of Lionsgate and the Guarantors (as defined in the Credit Agreement), subject to certain exceptions. Covenants. The Senior Credit Facilities contain representations and warranties, events of default and affirmative and negative covenants that are customary for similar financings and which include, among other things and subject to certain significant exceptions, restrictions on the ability to declare or pay dividends, create liens, incur additional indebtedness, make investments, dispose of assets and merge or consolidate with any other person. In addition, a net first lien leverage maintenance covenant and an interest coverage ratio maintenance covenant apply to the revolving credit facility and the Term Loan A and are tested quarterly. As of December 31, 2016 , 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. 5.875% Senior Notes Issuance. On October 27, 2016, Lions Gate Entertainment Corp. issued $520 million aggregate principal amount of 5.875% senior notes due 2024 (the " 5.875% Senior Notes"). Interest. Bears interest at 5.875% annually. Maturity Date. November 1, 2024. Optional Redemption: (i) Prior to November 1, 2019, the 5.875% Senior Notes are redeemable under certain circumstances (as defined in the indenture governing the 5.875% Senior Notes), in whole at any time or in part from time to time, at a price equal to 100% of the principal amount, plus the Applicable Premium (as defined in the indenture governing the 5.875% Senior Notes). The Applicable Premium is the greater of (i) 1.0% of the principal amount redeemed and (ii) the excess of the present value of the redemption amount at November 1, 2019 (see below) of the notes redeemed plus interest through the redemption date (discounted at the treasury rate on the redemption date plus 50 basis points) over the principal amount of the notes redeemed on the redemption date. (ii) On and after November 1, 2019, redeemable by the Company, in whole or in part, at the redemption prices set forth as follows (as a percentage of the principal amount redeemed), plus accrued and unpaid interest to the redemption date: (i) on or after November 1, 2019 - 104.406% ; (ii) on or after November 1, 2020 - 102.938% ; (iii) on or after November 1, 2021 - 101.439% ; and (iv) on or after November 1, 2022 - 100% . Security. The 5.875% Senior Notes are guaranteed on an unsubordinated, unsecured basis. Covenants. The 5.875% 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 December 31, 2016 , the Company was in compliance with all applicable covenants. Change in Control. The occurrence of a change of control will be a triggering event requiring the Company to offer to purchase from holders all of the 5.875% Senior Notes, at a price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase. In addition, certain asset dispositions will be triggering events that may require the Company to use the excess proceeds from such dispositions to make an offer to purchase the 5.875% Senior Notes at 100% of their principal amount, plus accrued and unpaid interest, if any to the date of purchase. Debt Redemptions and Repayments The Company used the proceeds of the 5.875% Senior Notes, the Term Loan A, the Term Loan B, and a portion of the revolving credit facility (amounting to $50 million ) to finance a portion of the consideration and transaction costs for the Starz Merger (see Note 2) and the associated transactions, including the repayment of all amounts outstanding under Lionsgate's previous senior revolving credit facility, term loan and senior notes and the discharge of Starz's senior notes and repayment of all amounts outstanding under Starz's credit agreement. The details of the debt redemptions and repayments are as follows: Repayment of Lionsgate's Senior Revolving Credit Facility, Term Loan Due 2022 and 5.25% Senior Notes. On December 8, 2016, all outstanding obligations (i.e., $241 million ) under Lionsgate's previous $800 million senior revolving credit facility were repaid and the credit agreement was terminated. The previous credit facility bore interest at an alternative base rate, as defined, plus 1.5% , or LIBOR plus 2.5% , as designated by the Company (effective interest rate of 2.94% on borrowings outstanding as of March 31, 2016). On December 8, 2016, the Company redeemed its previous $400 million seven -year term loan due March 2022 (the "Term Loan Due 2022"), which carried interest at a rate of 5.00% per year. In conjunction with the early redemption of the Term Loan Due 2022, the Company paid a prepayment premium of $8 million , or 2.0% on the principal amount prepaid, pursuant to the terms of the agreement governing the Term Loan Due 2022. On December 8, 2016, the Company redeemed in full the $225 million outstanding principal amount of the 5.25% Senior Secured Second-Priority Notes due August 2018 (the " 5.25% Senior Notes"), which bore interest at a rate of 5.25% per year. In conjunction with the early redemption of the 5.25% Senior Notes, the Company paid a prepayment premium of $15 million pursuant to the terms of the indenture governing the 5.25% Senior Notes. Accounting for the Repayment of Lionsgate's Senior Revolving Credit Facility: Any fees paid to creditors or third parties related to the issuance of the new revolving credit facility are capitalized and amortized over the term of the new revolving credit facility. To the extent the borrowing capacity, measured as the amount available under the revolving credit facility multiplied by the remaining term, on a creditor by creditor basis, was more than under the previous revolving credit facility, any prior unamortized debt issuance costs are capitalized and amortized over the term of the new revolving credit facility. To the extent the borrowing capacity on a creditor by creditor basis was less than under the previous credit facility the prior unamortized debt issuance costs were written off as a loss on extinguishment of debt in proportion to the decrease in borrowing capacity under the former revolving credit facility. The table below sets forth the applicable costs associated with the issuance and repayment of the senior revolving credit facility: Total Amortize Over Life of New Revolving Credit Facility Loss on Extinguishment of Debt (Amounts in millions) Previously incurred unamortized debt issuance costs of senior revolving credit facility $ 3 $ 2 $ 1 New costs incurred to issue the new revolving credit facility 20 20 — Total $ 23 $ 22 $ 1 Redemption of Lionsgate's Term Loan Due 2022 and 5.25% Senior Notes: In accounting for each contemporaneous issuance of the Term Loan A, the Term Loan B and the 5.875% Senior Notes and redemption of the Term Loan Due 2022 and 5.25% Senior Notes, a portion of the issuance and redemption was considered a modification of terms with creditors who participated in both the new issuances and the redeemed debt, and a portion was considered a debt extinguishment. To the extent a portion of the issuance and redemption was considered a modification, the call premium and any fees or other amounts paid to creditors plus the remaining unamortized debt issuance costs and debt discount on the redeemed debt will be amortized over the life of the new issuance, and to the extent a portion of the issuance and redemption was considered an extinguishment, these costs were expensed as a loss on extinguishment of debt. The new issuance costs paid to third parties related to each issuance were capitalized and will be amortized over the life of the new issuance to the extent the issuance and redemption was considered an extinguishment, and expensed as a loss on extinguishment of debt to the extent considered to be a modification of terms. All costs and expenses associated with new creditors are capitalized and amortized over the life of the new issuance. Deferred financing costs and any debt discount are amortized using the effective interest method. The table below sets forth the applicable costs associated with the issuance of the Term Loan A, the Term Loan B, and the 5.875% Senior Notes and the redemption of the Term Loan Due 2022 and the 5.25% Senior Notes, respectively (as discussed above), and the applicable accounting for such: Total Amortize Over Life of 5.875% Senior Notes, Term Loan A and Term Loan B Loss on Extinguishment of Debt (Amounts in millions) Early redemption/ call premium on 5.25% Senior Notes and Term Loan Due 2022 and other fees paid to creditors $ 23 $ 11 $ 12 Previously incurred unamortized net discount/premium and debt issuance costs of 5.25% Senior Notes and Term Loan Due 2022 13 9 4 36 20 16 New costs incurred to issue the 5.875% Senior Notes, Term Loan A and Term Loan B 92 84 8 Total $ 128 $ 104 $ 24 Repayment of Starz Credit Facility and Redemption of Starz Senior Notes. On December 8, 2016, all outstanding obligations (i.e., $255 million ) under Starz's existing $1.0 billion revolving credit facility that were assumed as part of the Starz Merger were repaid and the credit agreement was terminated. On December 8, 2016, the Company discharged the $675 million outstanding principal amount of the previous Starz senior notes due September 15, 2019 (the "Starz Senior Notes") that were assumed as part of the Starz Merger. In conjunction with the discharge of the Starz Senior Notes, the Company paid a call premium of $8 million . The repayment of the Starz credit facility and discharge of the Starz Senior Notes were accounted for as debt extinguishments, and a loss on extinguishment of debt of $3 million was recorded in the unaudited condensed consolidated statements of operations in the three and nine months ended December 31, 2016 related to these transactions. The following table summarizes the loss on extinguishment of debt recorded in the three and nine months ended December 31, 2016: (in millions) Loss on Extinguishment of Debt Senior revolving credit facility $ 1 Term Loan Due 2022 & 5.25% Senior Notes 24 Starz credit facility & Starz Senior Notes 3 $ 28 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 December 31, 2016 and March 31, 2016 : Maturity Date Conversion Price Per Share at December 31, 2016 December 31, 2016 March 31, 2016 Convertible Senior Subordinated Notes Principal Unamortized Discount & Debt Issuance Costs Net Carrying Amount Principal Unamortized Discount & Debt Issuance Costs Net Carrying Amount (Amounts in millions) January 2012 4.00% Notes January 11, 2017 $10.21 $ 42 $ — $ 42 $ 42 $ (2 ) $ 40 April 2013 1.25% Notes April 15, 2018 $29.19 60 — 60 60 — 60 $ 102 $ — $ 102 $ 102 $ (2 ) $ 100 January 2012 4.00% Notes: In January 2012, Lions Gate Entertainment Inc., a subsidiary of the Company, ("LGEI") issued approximately $45 million of 4.00% convertible senior subordinated notes due 2017 (the "January 2012 4.00% Notes"), of which $10 million was allocated to the equity component. April 2013 1.25% Notes: In April 2013, LGEI issued approximately $60 million in aggregate principal amount of 1.25% convertible senior subordinated notes due 2018 (the "April 2013 1.25% Notes"). 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, including upon the issuance of dividends. 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. 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 nine months ended December 31, 2015 (none in the nine months ended December 31, 2016 ). In January 2017, the outstanding principal amount of the January 2012 4.00% Notes was converted; see Subsequent Events Note 20 for further details. Nine Months Ended December 31, 2015 (Amounts in millions) April 2009 3.625% Notes Principal amount converted $ 16 Common shares issued upon conversion 2 Weighted average conversion price per share $ 8.15 Capital Lease Obligations Capital lease obligations represent lease agreements acquired in the Starz Merger (see Note 2), and include a ten -year commercial lease for a building with an imputed annual interest rate of 6.4% , and capital lease arrangements for Starz's transponder capacity that expire from 2018 to 2021 and have imputed annual interest rates ranging from 5.5% to 7.0% . |
Participations and Residuals
Participations and Residuals | 9 Months Ended |
Dec. 31, 2016 | |
Participations And Residuals [abstract] | |
Participations And Residuals | Participations and Residuals 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 unaudited condensed consolidated balance sheets and amounted to $131 million at December 31, 2016 (March 31, 2016 - $61 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 | 9 Months Ended |
Dec. 31, 2016 | |
Film Obligations And Production Loans [Abstract] | |
Film Obligations and Production Loans | Film Obligations and Production Loans December 31, March 31, (Amounts in millions) Film obligations $ 122 $ 25 Production loans 298 690 Total film obligations and production loans 420 715 Unamortized debt issuance costs (1 ) — Total film obligations and production loans, net 419 715 Less current portion (257 ) (663 ) Total non-current film obligations and production loans $ 162 $ 52 The following table sets forth future annual repayment of film obligations and production loans as of December 31, 2016 : Three Months Ending March 31, Year Ended March 31, 2017 2018 2019 2020 2021 Thereafter Total (Amounts in millions) Film obligations $ 61 $ 26 $ 11 $ 14 $ 4 $ 7 $ 123 Production loans 37 232 29 — — — 298 $ 98 $ 258 $ 40 $ 14 $ 4 $ 7 $ 421 Less imputed interest on film obligations and debt issuance costs on production loans (2 ) $ 419 Film Obligations Film obligations include minimum guarantees and accrued licensed program rights obligations, 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 3.69% to 3.98% . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2016 | |
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, 5.875% Senior Notes, Term Loan A and Term Loan B, 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 December 31, 2016 and March 31, 2016 : December 31, 2016 March 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in millions) Available-for-sale securities (see Note 4) (1) : Starz Series A common stock $ — $ — $ — $ 56 $ — $ 56 Starz Series B common stock — — — — 68 68 Forward exchange contracts (see Note 18) — — — — 9 9 Liabilities: Forward exchange contracts (see Note 18) — (2 ) (2 ) — (1 ) (1 ) $ — $ (2 ) $ (2 ) $ 56 $ 76 $ 132 (1) At March 31, 2016, the Company classified the Series A common stock of Starz within Level 1 of the fair value hierarchy as the valuation inputs were based on quoted prices in active markets. The Series B common stock of Starz was considered a Level 2 security because the quoted market prices were based on infrequent transactions. Therefore, the fair value of the Series B common stock, which was convertible, at the holder’s option, into Series A common stock of Starz was based on the quoted market price of the Series A common stock, which was an equivalent security other than for the voting rights. 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 December 31, 2016 and March 31, 2016 : December 31, 2016 March 31, 2016 (Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value (Level 3) (Level 3) Assets: Investment in Pop's mandatorily redeemable preferred stock units $ 94 $ 115 $ 99 $ 115 Carrying Value Fair Value Carrying Value Fair Value (Level 2) (Level 2) Liabilities: Term Loan A 975 1,003 — — Term Loan B 1,944 2,010 — — 5.875% Senior Notes 498 528 — — January 2012 4.00% Notes 42 43 40 41 April 2013 1.25% Notes 60 58 60 54 Production loans 298 298 690 690 5.25% Senior Notes — — 221 230 Term Loan Due 2022 — — 388 401 $ 3,817 $ 3,940 $ 1,399 $ 1,417 |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 9 Months Ended |
Dec. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest In connection with the acquisition of a controlling interest in Pilgrim Media Group on November 12, 2015, the Company recorded a redeemable noncontrolling interest of $90 million , representing 37.5% of Pilgrim Media Group. The noncontrolling interest holder has a right to put and the Company has a right to call a portion of the noncontrolling interest, equal to 17.5% of Pilgrim Media Group, at fair value, subject to a cap, exercisable at five years after the acquisition date of November 12, 2015. In addition, the noncontrolling interest holder has a right to put and the Company has a right to call the remaining amount of noncontrolling interest at fair value, subject to a cap, exercisable at seven years after the acquisition date of November 12, 2015. The put and call options have been determined to be embedded in the noncontrolling interest, and because the put rights are outside the control of the Company and require partial cash settlement, the noncontrolling interest holder's interest is presented as redeemable noncontrolling interest outside of shareholders' equity on the Company's unaudited condensed consolidated balance sheets. In addition, the noncontrolling interest holder is the President and CEO of Pilgrim Media Group. Pursuant to the operating agreement of Pilgrim Media Group, if the employment of the noncontrolling interest holder is terminated, under certain circumstances as defined in the operating agreement, the Company can call and the noncontrolling interest holder can put the noncontrolling interest at a discount to fair value. The amount of the discount related to the 17.5% noncontrolling interest is being expensed through the five -year call period, and the portion of the discount related to the remaining noncontrolling interest is being expensed over the seven -year call period. The amounts are included in general and administrative expense of Pilgrim Media Group and reflected as an addition to redeemable noncontrolling interest. Redeemable noncontrolling interest is measured at the greater of (i) the redemption amount that would be paid if settlement occurred at the balance sheet date less the amount attributed to unamortized noncontrolling interest discount, as discussed above, or (ii) the historical value resulting from the original acquisition date value plus or minus any earnings or loss attribution, plus the amount of unamortized noncontrolling interest discount as discussed above. The amount of the redemption value in excess of the historical values of the noncontrolling interest, if any, is recognized as an increase to noncontrolling interest and a charge to retained earnings. The table below presents the reconciliation of changes in redeemable noncontrolling interest: Nine Months Ended December 31, 2016 (Amounts in millions) Beginning balance $ 90 Net loss of Pilgrim Media Group attributable to noncontrolling interest — Noncontrolling interest discount accretion 4 Adjustments to redemption value 6 Cash distributions (6 ) Ending balance $ 94 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is calculated based on the weighted average common shares outstanding for the period. Basic net income (loss) per share for the three and nine months ended December 31, 2016 and 2015 is presented below: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions, except per share amounts) Basic Net Income (Loss) Per Common Share: Numerator: Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (31 ) $ 41 $ (47 ) $ 39 Denominator: Weighted average common shares outstanding (1) 161.4 149.5 152.2 148.5 Basic net income (loss) per common share $ (0.19 ) $ 0.27 $ (0.31 ) $ 0.26 ___________________ (1) The weighted average common shares outstanding for the three and nine months ended December 31, 2016 do not include the equity portion of the merger consideration related to the dissenting Starz shareholders as discussed in Note 2 and Note 16. Diluted net income (loss) 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 (loss) per common share also reflects share purchase options, including equity-settled share appreciation rights, restricted share units ("RSUs") and restricted stock using the treasury stock method when dilutive, and any contingently issuable shares when dilutive. Diluted net income (loss) per common share for the three and nine months ended December 31, 2016 and 2015 is presented below: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions, except per share amounts) Diluted Net Income (Loss) Per Common Share: Numerator: Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (31 ) $ 41 $ (47 ) $ 39 Add: Interest on convertible notes, net of tax — 1 — 1 Numerator for diluted net income (loss) per common share $ (31 ) $ 42 $ (47 ) $ 40 Denominator: Weighted average common shares outstanding 161.4 149.5 152.2 148.5 Effect of dilutive securities: Conversion of notes — 6.1 — 2.1 Share purchase options — 3.4 — 3.4 Restricted share units and restricted stock — 0.4 — 0.4 Adjusted weighted average common shares outstanding 161.4 159.4 152.2 154.4 Diluted net income (loss) per common share $ (0.19 ) $ 0.26 $ (0.31 ) $ 0.26 For the three and nine months ended December 31, 2016 and 2015 , the outstanding common shares issuable presented below were excluded from diluted net income (loss) per common share because their inclusion would have had an anti-dilutive effect. Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Anti-dilutive shares issuable Conversion of notes 6.2 — 6.1 4.0 Share purchase options 2.7 3.2 2.3 3.4 Restricted share units 0.2 0.1 0.1 0.1 Other issuable shares (1) 5.0 0.5 1.7 0.4 Total weighted average anti-dilutive shares issuable excluded from diluted net income per common share 14.1 3.8 10.2 7.9 ___________________ (1) For the three and nine months ended December 31, 2016, includes the impact of the equity portion of the merger consideration related to the dissenting Starz shareholders as discussed in Note 2 and Note 16. |
Capital Stock
Capital Stock | 9 Months Ended |
Dec. 31, 2016 | |
Equity and Share-based Compensation [Abstract] | |
Capital Stock | Capital Stock (a) Common Shares As discussed in Note 2, immediately prior to the consummation of the Starz Merger, Lionsgate effected the reclassification of its capital stock, pursuant to which each existing Lionsgate common share was converted into 0.5 shares of a newly issued class of Class A voting shares and 0.5 shares of a newly issued class of Class B non-voting shares, subject to the terms and conditions of the Merger Agreement, resulting in 74.2 million shares issued of Class A voting shares and 74.2 million shares issued of Class B non-voting shares. As of December 31, 2016, there were 17.0 million shares of the Company’s Class B non-voting shares that had not been issued to the former holders of 25.0 million of former Starz Series A common stock who are exercising their right to judicial appraisal under Delaware law (see Note 2 and Note 16). The Company had 500 million authorized Class A voting shares and 500 million authorized Class B non-voting shares at December 31, 2016 ( 500 million authorized common shares at March 31, 2016 ). The table below outlines common shares reserved for future issuance: December 31, March 31, (Amounts in millions) Stock options outstanding, Class A voting shares average exercise price $25.93, Class B non-voting shares average exercise price $18.82 (March 31, 2016 - common shares average exercise price $24.55) 36 15 Restricted stock and restricted share units — unvested 3 2 Common shares available for future issuance under Lionsgate plan 1 2 Common shares available for future issuance under Starz plan 12 — Shares issuable upon conversion of January 2012 4.00% Notes at conversion price of $10.21 per share (March 31, 2016 - $10.26) 4 4 Shares issuable upon conversion of April 2013 1.25% Notes at conversion price of $29.19 per share (March 31, 2016 - $29.32) 2 2 Shares reserved for future issuance 58 25 The Company's 2012 Performance Incentive Plan was amended on October 3, 2016 (the "2012 Plan") to provide for the issuance of up to 31.6 million (an increase of 4 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. At the effective time of the closing of the merger, Starz had outstanding equity awards under the Starz Transitional Stock Adjustment Plan, Starz 2011 Incentive Plan, Starz 2011 Nonemployee Director Plan and Starz 2016 Omnibus Incentive Plan (collectively, the “Starz Plans”). In accordance with the Merger Agreement, at the effective time of the closing of the merger, Lions Gate assumed the Starz Plans and the restricted stock unit awards, unvested stock options and restricted stock awards, in each case, granted under the Starz Plans (collectively, the “Assumed Awards”). As a result of this assumption, at the effective time of the closing of the Merger, the Assumed Awards were converted into corresponding awards relating to Class B non-voting shares, after giving effect to appropriate adjustments to reflect the consummation of the merger. There are currently 30.3 million Class B non-voting shares issuable in connection with the Assumed Awards held by Starz employees and awards to be granted under the Starz Plans following the merger. (b) Share-based Compensation The Company recognized the following share-based compensation expense during the three and nine months ended December 31, 2016 , and 2015 : Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Compensation Expense: Stock options $ 13 $ 6 $ 29 $ 26 Restricted share units and other share-based compensation 9 7 23 21 Share appreciation rights — — — 1 22 13 52 48 Immediately vested restricted share units issued under annual bonus program (1) 7 — 20 — Impact of accelerated vesting on equity awards (2) — — 2 — Total share-based compensation expense $ 29 $ 13 $ 74 $ 48 Tax impact (3) (10 ) (5 ) (26 ) (17 ) Reduction in net income $ 19 $ 8 $ 48 $ 31 ___________________ (1) Represents the impact of immediately vested stock awards granted as part of our annual bonus program, and issued in lieu of cash bonuses. (2) Represents the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. (3) Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements. The following tables sets forth the stock option and restricted share unit activity during the nine months ended December 31, 2016 . The activity prior to the December 8, 2016 consummation of the Starz Merger and related reclassification of Lionsgate stock discussed above is presented in the table below: Stock Options Weighted-Average Exercise Price Restricted Share Units Weighted-Average Grant-Date Fair Value Outstanding at March 31, 2016 16,093,896 $23.83 1,647,432 $31.74 Granted 5,997,539 $22.73 1,537,632 $20.89 Options exercised or RSUs vested (2,145,852 ) $9.78 (1,789,908 ) $25.01 Forfeited or expired (552,067 ) $32.39 (164,592 ) $30.18 Outstanding at December 8, 2016 before share reclassification 19,393,516 $24.80 1,230,564 $28.18 Reclassification of common stock to newly issued Class A voting shares and Class B non-voting shares (19,393,516 ) (1,230,564 ) Outstanding at December 8, 2016 after share reclassification — — Immediately prior to the consummation of the Starz Merger and in accordance with the reclassification of Lionsgate stock discussed above, each outstanding share-based equity award (i.e., stock options and restricted share units) of Lionsgate was also adjusted to reflect the reclassification of the underlying stock of each award. Upon the closing of the Starz Merger, each outstanding share-based equity award (i.e., stock options, restricted stock, and restricted stock units) of Starz was replaced by a Class B non-voting share-based equity award (“Lions Gate replacement award”) with terms equivalent to the existing awards based on the exchange ratio set forth in the Merger Agreement. The stock option, restricted stock and restricted share unit activity from the December 8, 2016 consummation of the Starz Merger and related reclassification of Lionsgate stock discussed above, through December 31, 2016 is presented in the table below: Stock Options Restricted Stock and Restricted Share Units Class A Voting Shares Weighted-Average Exercise Price Class B Non-Voting Shares Weighted-Average Exercise Price Class A Voting Shares Weighted-Average Grant-Date Fair Value Class B Non-Voting Shares Weighted-Average Grant-Date Fair Value Issuance of Class A voting shares and Class B non-voting upon reclassification of common stock at December 8, 2016 9,528,634 $25.53 9,528,634 $24.68 615,103 $26.48 615,103 $25.70 Issuance for Lions Gate replacement awards — — 15,395,707 $14.68 — — 1,861,342 $25.70 Granted 4,913 $41.95 666,740 $25.38 2,916 $26.40 109,790 $25.45 Options exercised or restricted stock or RSUs vested — — (13,175 ) $20.83 (8,419 ) $26.92 (259,198 ) $25.74 Forfeited or expired (2,600 ) $38.73 (17,823 ) $26.57 (1,718 ) $36.92 (45,830 ) $26.12 Outstanding at December 31, 2016 9,530,947 $25.93 25,560,083 $18.82 607,882 $28.18 2,281,207 $26.35 There were no excess tax benefits realized from tax deductions associated with equity awards activity for the nine months ended December 31, 2016 ( 2015 - none ). Total unrecognized compensation cost related to unvested stock options, and related to restricted stock and restricted share unit awards at December 31, 2016 are $72 million and $44 million , respectively, and are expected to be recognized over a weighted average period of 2.6 and 2.2 years, respectively. (c) Dividends On September 22, 2016, the Company announced that, as contemplated in the Registration Statement on Form S-4 filed with the Securities and Exchange Commission on August 1, 2016, as amended, its Board of Directors suspended the Company’s quarterly cash dividend beginning immediately due to its merger with Starz. (d) Other In connection with an amendment of an affiliation agreement with a customer and effective upon the close of the Starz Merger (December 8, 2016), Lionsgate has agreed to issue to the customer three $16.67 million annual installments of equity (or cash at Lionsgate's election). The total value of the contract of $50 million is being amortized as a reduction of revenue over the period from December 8, 2016 to August 31, 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In the quarter ended December 31, 2016, the Company determined that a small change in its estimated pretax results for the year ending March 31, 2017 would create a large change in its expected annual effective rate. Accordingly, it was determined that a reliable estimate of the expected annual effective tax rate could not be made. As a result, the Company computed its tax benefit using the cut-off method which resulted in an income tax benefit of $12 million and $92 million for the three and nine months ended December 31, 2016, respectively, based on the actual taxes attributable to its year-to-date earnings. This tax benefit is primarily related to the mix of the Company's pre-tax income (loss) generated across the various jurisdictions in which the Company operates in addition to the tax deductions generated by the Company's capital structure. In the quarter ended December 31, 2015, the Company determined that a small change in its estimated pretax results for the year ended March 31, 2016 would create a large change in its expected annual effective rate. Accordingly, it was determined that a reliable estimate of the expected annual effective tax rate could not be made. As a result, the Company computed its tax benefit using the cut-off method which resulted in an income tax benefit of $45 million for the three months ended December 31, 2015 based on the actual taxes attributable to its year-to-date losses. This tax benefit is primarily related to the mix of the Company's pre-tax income (loss) generated across the various jurisdictions in which the Company operates in addition to the tax deductions generated by the Company's capital structure. The Company's effective tax rate differs from the federal statutory rate, 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. |
Restructuring and Other
Restructuring and Other | 9 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | Restructuring and Other Restructuring and other includes restructuring and severance costs, certain transaction related costs, and certain unusual items, when applicable, and were as follows for the three and nine months ended December 31, 2016 and 2015: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Restructuring and other: Severance (1) Cash $ 22 $ — $ 24 $ — Accelerated vesting on equity awards (see Note 12) — — 2 — Total severance costs 22 — 26 — Transaction related costs (2) 27 12 39 14 Pension withdrawal costs (3) — — — 3 Other 3 1 5 1 $ 52 $ 13 $ 70 $ 18 _______________________ (1) Severance costs were primarily related to workforce reductions for redundancies in connection with the Starz Merger. Of the severance costs, $21 million is recorded as a liability and is expected to be paid within one-year from December 31, 2016. (2) Transaction related costs in the three and nine months ended December 31, 2016 represented primarily legal and professional fees, and other transaction related costs associated with the Starz Merger. Transaction related costs in the three and nine months ended December 31, 2015 represented professional fees associated with certain strategic transactions including, among others, the acquisition of a majority interest in Pilgrim Media Group and certain shareholder transactions. (3) Pension withdrawal costs in the nine months ended December 31, 2015 were related to an underfunded multi-employer pension plan in which the Company is no longer participating. |
Segment Information
Segment Information | 9 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s reportable segments have been determined based on the distinct nature of their operations, the Company's internal management structure, and the financial information that is evaluated regularly by the Company's chief operating decision maker. Following the Starz Merger (see Note 2), the Company has added a new segment from the Starz business and realigned business operations within Lionsgate and Starz under three reporting segments and made some changes in what is included and excluded from segment profit. The Company previously had two reportable business segments, consisting of the Motion Pictures and Television Production segments. Beginning in the period ended December 31, 2016, the Company now manages and reports its operating results in three reportable business segments: (1) Motion Pictures, (2) Television Production and (3) Media Networks. As a result, the Company has presented prior period segment data in a manner that conforms to the current period presentation (see further discussion below). 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. As a result of the Starz Merger (see Note 2), beginning December 8, 2016, the Motion Pictures segment includes Starz's third-party distribution business, which is substantially the same as the Motion Pictures existing business. 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. Media Networks (which was previously not a reportable segment) consists of the licensing of premium subscription video programming to U.S. multichannel video programming distributors ("MVPDs") including cable operators, satellite television providers, telecommunication companies, and online video providers, and the licensing of the Media Networks' original series programming to subscription video-on-demand (“SVOD”) services, international television networks, home entertainment and other ancillary markets. In connection with the Starz Merger, the Company moved its start-up direct to consumer streaming services on its SVOD platforms under the Media Networks segment. In the ordinary course of business, the Company's reportable segments enter into transactions with one another. The most common types of intersegment transactions include licensing motion pictures or television production produced or acquired programming reported from the Motion Pictures and Television Production segments to the Media Networks segment, and certain fees charged to the Media Networks segment by the Television Production segment for the distribution of Media Networks' original series programming in ancillary markets. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses or assets recognized by the segment that is the counterparty to the transaction) are eliminated in consolidation and, therefore, do not affect consolidated results. Segment information by business unit is presented in the table below. The Media Networks segment reflects the Starz network business from the date of acquisition (December 8, 2016), and the Lionsgate direct to consumer streaming services on SVOD platforms for the historical periods presented. Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Segment revenues Motion Pictures $ 440 $ 506 $ 1,266 $ 1,135 Television Production 229 165 595 421 Media Networks 85 — 86 — Intersegment eliminations (2 ) — (2 ) — $ 752 $ 671 $ 1,945 $ 1,556 Gross contribution Motion Pictures $ 77 $ 51 $ 153 $ 157 Television Production 33 17 70 49 Media Networks 41 (1 ) 29 (1 ) Intersegment eliminations (1 ) — (1 ) — $ 150 $ 67 $ 251 $ 205 Segment general and administration Motion Pictures $ 26 $ 18 $ 74 $ 60 Television Production 7 5 23 15 Media Networks 8 3 14 3 $ 41 $ 26 $ 111 $ 78 Segment profit (loss) Motion Pictures $ 51 $ 33 $ 79 $ 97 Television Production 26 12 47 34 Media Networks 33 (4 ) 15 (4 ) Intersegment eliminations (1 ) — (1 ) — $ 109 $ 41 $ 140 $ 127 Following the Starz Merger, beginning in the quarter ended December 31, 2016, the Company has revised what it will include and exclude from segment profit (loss), the primary measure used by management to evaluate segment performance. Segment profit (loss) continues to be defined as gross contribution (segment revenues, less segment direct operating and distribution and marketing expense) less segment general and administration expenses. However, segment general and administrative expenses will include annual bonuses whether granted in stock or paid in cash, which were previously included in corporate general and administrative expenses and stock-based compensation, respectively. In addition, segment profit will no longer exclude start-up costs of direct to consumer streaming services on its SVOD platforms, non-cash imputed interest charge, and backstopped prints and advertising ("P&A") expense. Segment profit will continue to exclude purchase accounting and related adjustments. As a result of the changes to the segments and definition of segment profit, the Company has presented prior period segment data in a manner that conforms to the current period presentation. The reconciliation of total segment profit to the Company’s loss before income taxes is as follows: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Company’s total segment profit $ 109 $ 41 $ 140 $ 127 Corporate general and administrative expenses (25 ) (17 ) (68 ) (54 ) Adjusted depreciation and amortization (1) (4 ) (3 ) (13 ) (7 ) Restructuring and other (2) (52 ) (13 ) (70 ) (18 ) Adjusted share-based compensation expense (3) (22 ) (13 ) (52 ) (48 ) Purchase accounting and related adjustments (4) (13 ) (4 ) (25 ) (4 ) Operating loss (7 ) (9 ) (88 ) (4 ) Interest expense (27 ) (14 ) (58 ) (40 ) Interest and other income 1 — 4 2 Gain on Starz investment 20 — 20 — Loss on extinguishment of debt (28 ) — (28 ) — Equity interests income (2 ) 11 11 29 Loss before income taxes $ (43 ) $ (12 ) $ (139 ) $ (13 ) ___________________ (1) Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in the acquisition of Starz and Pilgrim Media Group which are included in the purchase accounting and related adjustments line item above. (2) Restructuring and other includes restructuring and severance costs, certain transaction related costs, and certain unusual items, when applicable (see Note 14). (3) Adjusted share-based compensation expense represents share-based compensation excluding (i) immediately vested stock awards granted as part of our annual bonus program issued in lieu of cash bonuses, which are included in segment and corporate general and administrative expenses, and (ii) the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements, when included in restructuring and other expenses (see Note 12 and Note 14). (4) Purchase accounting and related adjustments represent the amortization of non-cash fair value adjustments to the assets and liabilities acquired in the acquisition of Starz and Pilgrim Media Group. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 3 $ 3 $ 11 $ 3 General and administrative expense 1 1 4 1 Depreciation and amortization 9 — 10 — $ 13 $ 4 $ 25 $ 4 The following table sets forth revenues by media or product line as broken down by segment for the three and nine months ended December 31, 2016 and 2015 : Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Segment revenues: Motion Pictures Theatrical $ 87 $ 183 $ 197 $ 232 Home Entertainment 167 126 467 389 Television 91 49 214 157 International 90 140 372 333 Other 5 8 16 24 Total Motion Pictures revenues $ 440 $ 506 $ 1,266 $ 1,135 Television Production Domestic Television $ 174 $ 121 $ 481 $ 268 International 31 26 75 112 Home Entertainment 23 16 33 36 Other 1 2 6 5 Total Television Production revenues $ 229 $ 165 $ 595 $ 421 Media Networks Starz Networks $ 83 $ — $ 83 $ — Content and Other 1 — 1 — Streaming Services 1 — 2 — Total Media Networks revenues $ 85 $ — $ 86 $ — Intersegment eliminations (2 ) — (2 ) — Total revenues $ 752 $ 671 $ 1,945 $ 1,556 The reconciliation of total segment assets to the Company’s total consolidated assets is as follows: December 31, March 31, (Amounts in millions) Assets Motion Pictures $ 1,813 $ 1,924 Television Production 1,158 1,130 Media Networks 5,359 — Other unallocated assets (1) 1,050 780 $ 9,380 $ 3,834 _____________________ (1) Other unallocated assets primarily consist of cash, other assets and investments. The following table sets forth acquisition of investment in films and television programs and program rights, as broken down by segment for the three and nine months ended December 31, 2016 and 2015 : Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Acquisition of investment in films and television programs and program rights Motion Pictures $ 76 $ 140 $ 267 $ 504 Television Production 106 96 345 267 Media Networks 31 — 48 — $ 213 $ 236 $ 660 $ 771 |
Contingencies
Contingencies | 9 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies From time to time, the Company is involved in certain claims and legal proceedings arising in the normal course of business. While the resolution of these matters cannot be predicted with certainty, the Company does 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. Litigation Between July 19, 2016 and August 30, 2016, seven putative class action complaints were filed by purported Starz stockholders in the Court of Chancery of the State of Delaware. These actions have been consolidated into In re Starz Stockholder Litigation , Consolidated C.A. No. 12584-VCG, and the plaintiffs in the consolidated action filed a verified consolidated class action complaint on August 16, 2016. The complaint names as defendants the members of the board of directors of Starz; Dr. Malone and Leslie Malone; Mr. Bennett and Deborah J. Bennett; The Tracey L. Neal Trust A; The Evan D. Malone Trust A; Hilltop Investments, LLC (“Hilltop”); Dr. Rachesky; Lions Gate; and Merger Sub. It alleges, among other things, that the members of the Starz board of directors breached fiduciary duties owed to Starz and the holders of Starz Series A common stock in connection with the merger and related transactions; that Dr. Malone is a controlling stockholder of Starz who breached fiduciary duties owed to other Starz stockholders in connection with the merger and related transactions; and that the other defendants aided and abetted such breaches of fiduciary duty. On August 18, 2016, plaintiffs filed a motion for expedited proceedings. On September 22, 2016, the court denied the motion. On January 17, 2017, the court granted a stipulation dismissing without prejudice the claims against former Starz directors Irving Azoff, Susan Lyne, Robert Wiesenthal, Andrew Heller, and Jeffrey Sagansky, as well as Mr. Bennett, Deborah Bennett, Leslie Malone, Hilltop, The Tracey L. Neal Trust A, and The Evan D. Malone Trust A. On January 26, 2017, the court granted a stipulation dismissing without prejudice the claims against Dr. Rachesky. The remaining defendants filed answers to the verified consolidated class action complaint on January 24, 2017. Defendants intend to defend the action vigorously. On August 9, 2016, a putative class action complaint was filed by a purported Starz stockholder in the District Court for the City and County of Denver, Colorado: Gross v. John C. Malone, et al. , 2016-CV-32873. The complaint names as defendants the members of the board of directors of Starz, Dr. Malone and Mr. Bennett, as well as Lions Gate and Merger Sub. The complaint alleges, among other things, that the members of the Starz board of directors breached fiduciary duties owed to Starz and the holders of Starz Series A common stock in connection with the merger and the transactions contemplated by the merger agreement, and that Dr. Malone, Mr. Bennett, Lions Gate, and Merger Sub aided and abetted such breaches of fiduciary duty. On December 10, 2016, the court granted the defendants’ unopposed motion to stay the action pending final resolution of the consolidated Delaware action. On October 7, 2016, a putative class action complaint was filed by a purported Lions Gate stockholder in the Supreme Court of the State of New York for the County of Nassau: Levy v. Malone, et al. , Index No. 607759/2016. The complaint names as defendants Lions Gate and the members of its board of directors. The complaint alleges, among other things, that the members of the Lions Gate board of directors breached fiduciary duties owed to Lions Gate stockholders and/or aided and abetted breaches of fiduciary duties by others in connection with the proposed merger, and that Lions Gate and the members of its board of directors failed to disclose material information in the amended joint proxy statement/ prospectus on Form S-4/A filed on September 7, 2016 in connection with the proposed merger. On November 8, 2016, plaintiff filed a motion to preliminarily enjoin the proposed merger and for expedited discovery. On November 23, 2016, the parties entered into a stipulation of settlement resolving the action, and on November 25, 2016, filed a stipulation withdrawing plaintiff’s motion. The settlement remains subject to approval by the court. Appraisal On December 8, 2016, a verified petition for appraisal was filed by three purported Starz stockholders in the Court of Chancery of the State of Delaware: Merion Capital LP et al. v. Starz , C.A. No. 12968-VCG. On January 25, 2017, two additional verified petitions for appraisal were filed by purported Starz stockholders in the Court of Chancery of the State of Delaware: Active Portfolios Multi-Manager Alternative Strategies Fund v. Starz Acquisition LLC , C.A. No. 2017-0055; and Water Island Global Master LP et al. v. Starz Acquisition LLC , C.A. No. 2017-0056. Respondent intends to defend these actions vigorously. |
Consolidating Financial Informa
Consolidating Financial Information - Convertible Senior Subordinated Notes | 9 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
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 December 31, 2016 and March 31, 2016 , and for the nine months ended December 31, 2016 and 2015 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 December 31, 2016 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) BALANCE SHEET Assets Cash and cash equivalents $ 1 $ 84 $ 510 $ — $ 595 Restricted cash — 3 — — 3 Accounts receivable, net 1 2 774 — 777 Program rights — — 236 — 236 Other current assets 1 20 243 (5 ) 259 Total current assets 3 109 1,763 (5 ) 1,870 Investment in films and television programs and program rights, net — 6 1,810 — 1,816 Property and equipment, net — 38 130 — 168 Investments 40 12 305 — 357 Intangible assets — — 2,024 — 2,024 Goodwill 10 — 2,724 — 2,734 Other assets — 17 388 — 405 Deferred tax assets 6 232 — (232 ) 6 Subsidiary investments and advances 5,708 1,652 3,136 (10,496 ) — $ 5,767 $ 2,066 $ 12,280 $ (10,733 ) $ 9,380 Liabilities and Shareholders' Equity (Deficiency) Accounts payable and accrued liabilities 42 98 391 — 531 Participations and residuals — 4 495 — 499 Film obligations and production loans — — 257 — 257 Debt - short term portion 70 42 6 — 118 Deferred revenue — 3 177 — 180 Total current liabilities 112 147 1,326 — 1,585 Debt 3,332 53 72 — 3,457 Participations and residuals — — 304 — 304 Film obligations and production loans — — 162 — 162 Other liabilities — — 33 — 33 Dissenting shareholders liability — — 886 — 886 Deferred revenue — — 76 — 76 Deferred tax liabilities — — 693 (232 ) 461 Intercompany payable — 2,342 2,666 (5,008 ) — Redeemable noncontrolling interest — — 94 — 94 Total shareholders' equity (deficiency) 2,323 (476 ) 5,968 (5,493 ) 2,322 $ 5,767 $ 2,066 $ 12,280 $ (10,733 ) $ 9,380 Nine Months Ended December 31, 2016 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) STATEMENT OF OPERATIONS Revenues $ — $ 12 $ 1,933 $ — $ 1,945 EXPENSES: Direct operating — 2 1,181 — 1,183 Distribution and marketing — 1 521 — 522 General and administration 2 96 138 (1 ) 235 Depreciation and amortization — 8 15 — 23 Restructuring and other 2 63 5 — 70 Total expenses 4 170 1,860 (1 ) 2,033 OPERATING INCOME (LOSS) (4 ) (158 ) 73 1 (88 ) Other expenses (income): Interest expense 45 171 150 (308 ) 58 Interest and other income (173 ) — (138 ) 307 (4 ) Gain on Starz investment (20 ) — — — (20 ) Loss on extinguishment of debt 22 3 3 — 28 Total other expenses (income) (126 ) 174 15 (1 ) 62 INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES 122 (332 ) 58 2 (150 ) Equity interests income (loss) (159 ) 67 16 87 11 INCOME (LOSS) BEFORE INCOME TAXES (37 ) (265 ) 74 89 (139 ) Income tax provision (benefit) 10 (106 ) 32 (28 ) (92 ) NET INCOME (LOSS) (47 ) (159 ) 42 117 (47 ) Less: Net loss attributable to noncontrolling interest — — — — — Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (47 ) $ (159 ) $ 42 $ 117 $ (47 ) Nine Months Ended December 31, 2016 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Amounts in millions) NET INCOME (LOSS) $ (47 ) $ (159 ) $ 42 $ 117 $ (47 ) Foreign currency translation adjustments, net of tax (8 ) (14 ) (10 ) 24 (8 ) Net unrealized gain on available-for-sale securities, net of tax 55 — 55 (55 ) 55 Reclassification adjustment for gain on available-for-sale securities realized in net loss (20 ) — (20 ) 20 (20 ) Net unrealized loss on foreign exchange contracts, net of tax (5 ) — (5 ) 5 (5 ) COMPREHENSIVE INCOME (LOSS) (25 ) (173 ) 62 111 (25 ) Less: Comprehensive loss attributable to noncontrolling interest — — — — — Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (25 ) $ (173 ) $ 62 $ 111 $ (25 ) Nine Months Ended December 31, 2016 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) STATEMENT OF CASH FLOWS NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (2,542 ) $ 66 $ 2,892 $ — $ 416 INVESTING ACTIVITIES: Investment in equity method investees — (1 ) (12 ) — (13 ) Distributions from equity method investees — — 2 — 2 Purchase of Starz, net of cash acquired of $73 — — (1,057 ) — (1,057 ) Capital expenditures — (9 ) (7 ) — (16 ) NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES — (10 ) (1,074 ) — (1,084 ) FINANCING ACTIVITIES: Debt - borrowings 3,911 — — — 3,911 Debt - repayments (1,311 ) — (941 ) — (2,252 ) Production loans - borrowings — — 231 — 231 Production loans - repayments — — (623 ) — (623 ) Dividends paid (27 ) — — — (27 ) Distributions to noncontrolling interest — — (6 ) — (6 ) Exercise of stock options 1 — — — 1 Tax withholding required on equity awards (32 ) — — — (32 ) NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES 2,542 — (1,339 ) — 1,203 NET CHANGE IN CASH AND CASH EQUIVALENTS — 56 479 — 535 FOREIGN EXCHANGE EFFECTS ON CASH — — 2 — 2 CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD 1 28 29 — 58 CASH AND CASH EQUIVALENTS — END OF PERIOD $ 1 $ 84 $ 510 $ — $ 595 As of March 31, 2016 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) BALANCE SHEET Assets Cash and cash equivalents $ 1 $ 28 $ 29 $ — $ 58 Restricted cash — 3 — — 3 Accounts receivable, net 1 2 567 — 570 Other current assets — 18 219 — 237 Total current assets 2 51 815 — 868 Investment in films and television programs, net — 6 1,452 — 1,458 Property and equipment, net — 36 7 — 43 Investments 40 15 409 — 464 Intangible assets — — 11 — 11 Goodwill 10 — 525 — 535 Other assets — 24 302 (5 ) 321 Deferred tax assets 1 122 11 — 134 Subsidiary investments and advances 1,584 1,519 3,095 (6,198 ) — $ 1,637 $ 1,773 $ 6,627 $ (6,203 ) $ 3,834 Liabilities and Shareholders' Equity (Deficiency) Accounts payable and accrued liabilities 22 90 243 — 355 Participations and residuals — 3 434 — 437 Film obligations and production loans — — 663 — 663 Debt - short term portion — 40 — — 40 Deferred revenue — — 246 — 246 Total current liabilities 22 133 1,586 — 1,741 Debt 765 60 — — 825 Participations and residuals — 1 169 — 170 Film obligations and production loans — — 52 — 52 Other liabilities — — 23 — 23 Deferred revenue — 5 77 — 82 Intercompany payable — 1,907 2,416 (4,323 ) — Redeemable noncontrolling interest — — 91 — 91 Total shareholders' equity (deficiency) 850 (333 ) 2,213 (1,880 ) 850 $ 1,637 $ 1,773 $ 6,627 $ (6,203 ) $ 3,834 Nine Months Ended December 31, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) STATEMENT OF OPERATIONS Revenues $ — $ 16 $ 1,541 $ (1 ) $ 1,556 EXPENSES: Direct operating 1 — 926 — 927 Distribution and marketing — 6 422 — 428 General and administration 3 105 73 (1 ) 180 Depreciation and amortization — 6 1 — 7 Restructuring and other 3 4 11 — 18 Total expenses 7 121 1,433 (1 ) 1,560 OPERATING INCOME (LOSS) (7 ) (105 ) 108 — (4 ) Other expenses (income): Interest expense 28 164 129 (281 ) 40 Interest and other income (154 ) (1 ) (127 ) 280 (2 ) Total other expenses (income) (126 ) 163 2 (1 ) 38 INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES 119 (268 ) 106 1 (42 ) Equity interests income (loss) (81 ) 186 30 (106 ) 29 INCOME (LOSS) BEFORE INCOME TAXES 38 (82 ) 136 (105 ) (13 ) Income tax provision (benefit) (1 ) (45 ) 54 (52 ) (44 ) NET INCOME (LOSS) 39 (37 ) 82 (53 ) 31 Less: Net loss attributable to noncontrolling interest — — — 8 8 Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ 39 $ (37 ) $ 82 $ (45 ) $ 39 Nine Months Ended December 31, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Amounts in millions) NET INCOME (LOSS) $ 39 $ (37 ) $ 82 $ (53 ) $ 31 Foreign currency translation adjustments, net of tax (1 ) (4 ) (4 ) 10 1 Net unrealized loss on available-for-sale securities, net of tax — — (4 ) — (4 ) Net unrealized gain on foreign exchange contracts, net of tax — — 2 — 2 COMPREHENSIVE INCOME (LOSS) $ 38 $ (41 ) $ 76 $ (43 ) $ 30 Less: Comprehensive loss attributable to noncontrolling interest — — — 8 8 Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ 38 $ (41 ) $ 76 $ (35 ) $ 38 Nine Months Ended December 31, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) STATEMENT OF CASH FLOWS NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 25 $ 18 $ (154 ) $ — $ (111 ) INVESTING ACTIVITIES: Investment in equity method investees and other investments — (1 ) (3 ) — (4 ) Purchase of Pilgrim Media Group, net of cash acquired of $16 — — (127 ) — (127 ) Capital expenditures — (13 ) (1 ) — (14 ) NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES — (14 ) (131 ) — (145 ) FINANCING ACTIVITIES: Debt - borrowings 262 — — — 262 Debt - repayments (238 ) — — — (238 ) Production loans - borrowings — — 510 — 510 Production loans - repayments — — (241 ) — (241 ) Dividends paid (34 ) — — — (34 ) Exercise of stock options 6 — — — 6 Tax withholding required on equity awards (23 ) — — — (23 ) NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES (27 ) — 269 — 242 NET CHANGE IN CASH AND CASH EQUIVALENTS (2 ) 4 (16 ) — (14 ) FOREIGN EXCHANGE EFFECTS ON CASH — — (1 ) — (1 ) CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD 4 47 52 — 103 CASH AND CASH EQUIVALENTS — END OF PERIOD $ 2 $ 51 $ 35 $ — $ 88 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Dec. 31, 2016 | |
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 and tax credit receivables denominated in various foreign currencies. As of December 31, 2016 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 15 months from December 31, 2016 ): December 31, 2016 Foreign Currency Foreign Currency Amount US Dollar Amount Weighted Average Exchange Rate Per $1 USD (Amounts in millions) (Amounts in millions) British Pound Sterling £10 in exchange for $13 £0.78 Hungarian Forint HUF 4,458 in exchange for $17 HUF 269.79 Euro €7 in exchange for $8 €0.88 Canadian Dollar C$25 in exchange for $19 C$1.31 New Zealand Dollar NZD 35 in exchange for $25 NZD 0.69 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 and nine months ended December 31, 2016 were losses, net of tax, of $2 million and $5 million , respectively (2015 - losses, net of tax, of $1 million and gain, net of tax of $2 million , respectively), 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 loss on foreign exchange contracts that did not qualify as effective hedge contracts outstanding during the three months and nine months ended December 31, 2016 were nil and less than $1 million , respectively (2015 - insignificant) and are included in direct operating expenses in the accompanying unaudited condensed consolidated statements of operations. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. As of December 31, 2016 , less than $1 million was included in other assets and $2 million in accounts payable and accrued liabilities ( March 31, 2016 - $9 million in other assets and $1 million in accounts payable and accrued liabilities) in the accompanying unaudited condensed 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 and nine months ended December 31, 2016 , the Company reclassified a gain of $2 million and $5 million , respectively, out of accumulated other comprehensive loss into earnings. As of December 31, 2016 , based on the current release schedule, the Company estimates approximately less than $1 million of gains associated with cash flow hedges in accumulated other comprehensive loss to be reclassified into earnings during the one-year period ending December 31, 2017. |
Additional Financial Informatio
Additional Financial Information | 9 Months Ended |
Dec. 31, 2016 | |
Additional Financial Information [Abstract] | |
Additional Financial Information | Additional Financial Information The following tables present supplemental information related to the unaudited condensed consolidated financial statements. Cash and Cash Equivalents Cash equivalents consist of investments that are readily convertible into cash. Cash equivalents are carried at cost, which approximates fair value. The Company classifies its cash equivalents within Level 1 of the fair value hierarchy because the Company uses quoted market prices to measure the fair value of these investments (see Note 9). The Company monitors concentrations of credit risk with respect to cash and cash equivalents by placing such balances with higher quality financial institutions or investing such amounts in liquid, short-term, highly-rated instruments or investment funds holding similar instruments. As of December 31, 2016, the majority of the Company’s cash and cash equivalents were invested in Rule 2a-7 compliant money market mutual funds. Accounts Receivable, net Accounts are presented net of reserves for returns and allowances of $78 million (March 31, 2016 - $52 million ) and a provision for doubtful accounts of $8 million (March 31, 2016 - $6 million ). Other Assets The composition of the Company’s other assets is as follows as of December 31, 2016 and March 31, 2016 : December 31, March 31, (Amounts in millions) Other current assets Prepaid expenses and other $ 24 $ 26 Product inventory 27 21 Tax credits receivable 208 190 $ 259 $ 237 Other non-current assets Prepaid expenses and other $ 37 $ 32 Accounts receivable 262 222 Tax credits receivable 106 67 $ 405 $ 321 Supplemental Cash Flow Information The supplemental schedule of non-cash investing and financing activities for the nine months ended December 31, 2016 and 2015 is presented below: Nine Months Ended December 31, 2016 2015 (Amounts in millions) Non-cash investing activities: Issuance of common shares related to Starz Merger (see Note 2) $ 1,284 $ — Accrued purchase consideration for dissenting shareholders (see Note 2) $ 886 $ — Issuance of Starz share-based payment replacement awards $ 187 $ — Issuance of common shares related to Pilgrim Media Group acquisition (see Note 2) $ — $ 56 Non-cash financing activities: Accrued dividends (see Note 12) $ — $ 13 Conversions of convertible senior subordinated notes (see Note 6) $ — $ 16 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In January 2017, all of the $42 million outstanding principal amount of the Company's January 2012 4.00% Notes was converted into 2,049,461 Class A voting shares and 2,049,461 Class B non-voting shares at a conversion price of approximately $10.21 per share. |
General (Policies)
General (Policies) | 9 Months Ended |
Dec. 31, 2016 | |
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 and nine months ended December 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2017 . The balance sheet at March 31, 2016 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, 2016 . |
Balance Sheet Reclassification | Balance Sheet Reclassifications: Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. Historically, the Company has presented an unclassified balance sheet. As a result of the merger with Starz (see Note 2), the Company is now presenting a classified balance sheet and, accordingly, reclassification adjustments to the Company's historical unclassified balance sheet have been made to present an unaudited condensed consolidated classified balance sheet. In addition to these reclassification adjustments, the Company has made the following reclassifications to the unaudited condensed consolidated balance sheet as of March 31, 2016 to conform to the current year presentation: (i) reclassified $21 million of product inventory from investment in film and television programs to other current assets; (ii) reclassified $222 million of long-term accounts receivable to other non-current assets; (iii) reclassified $190 million of short-term tax credits receivable to other current assets and $67 million of long-term tax credits receivable to other non-current assets; (iv) reclassified $11 million of intangible assets from other assets to the new separate line item for intangible assets; (v) reclassified the carrying value of its previous senior revolving credit facility ( $156 million ), former 5.25% senior notes ( $221 million ), former term loan ( $388 million ) and convertible senior subordinated notes ( $100 million ) into the new separate line item for debt (current and non-current) on the unaudited condensed consolidated balance sheet. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; the allocations made in connection with the amortization of program rights; 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 including the assessment of valuation allowances for deferred tax assets; 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. |
Program Rights | Program Rights: The cost of program rights for films and television programs exhibited on the Starz premium networks are generally amortized on a title-by-title or episode-by-episode basis over the anticipated number of exhibitions. The number of exhibitions is estimated based on the number of exhibitions allowed in the agreement (if specified) and the expected usage of the content. Certain other program rights are amortized to expense on a straight-line basis over the respective lives of the agreements. Programming rights may include rights to more than one exploitation window under its output and library agreements. For films with multiple windows, the license fee is allocated between the windows based upon the proportionate estimated fair value of each window which generally results in the majority of the cost allocated to the first window. The cost of original series in the Company's new Media Networks reporting segment (see Note 15) is allocated between the pay television market, and the ancillary revenue markets (e.g., home video, digital platforms, international television, etc.) based on the estimated relative fair values of these markets. The amount associated with the pay television market is reclassified from investment in film and television programs to program rights when the program is aired and the portion attributable to the ancillary markets remains in investment in films and television programs within the Media Networks segment. All the costs of original programming that is produced by the Media Networks segment are classified as long term. Amounts included in program rights, other than internally produced programming, that are expected to be amortized within a year from the balance sheet date are classified as short-term. |
Revenue Recognition | Revenue Recognition: Programming revenue is recognized in the period during which programming is provided, pursuant to affiliation agreements. If an affiliation agreement has expired, revenue is recognized based on the terms of the expired agreement or the actual payment from the distributor, whichever is less. Any funds received in excess of fixed and determinable programming revenue are recorded as a liability in deferred revenue until the discrepancy is resolved. Payments to distributors for marketing support costs for which the Company does not receive a direct benefit are recorded as a reduction of revenue. |
Advertising and Marketing Costs | Advertising and Marketing Costs: Advertising and marketing costs are expensed as incurred. Certain of Starz’s affiliation agreements require Starz to provide marketing support to the distributor based upon certain criteria as stipulated in the agreements. Marketing support includes cooperative advertising and marketing efforts between Starz and its distributors such as cross channel, direct mail and point of sale incentives. Marketing support is recorded as an expense and not a reduction of revenue when Starz has received a direct benefit and the fair value of such benefit is determinable. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue Recognition : In May 2014, the Financial Accounting Standards Board (the "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 new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. Based on the current guidance, the new framework will become effective on either a full or modified retrospective basis for the Company on April 1, 2018. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. Presentation of Debt Issuance Costs : 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, and must be applied on a retrospective basis to all prior periods presented in the financial statements. The Company adopted the new guidance effective April 1, 2016, which resulted in the reclassification of approximately $21 million of debt issuance costs from other assets to their respective debt liabilities in the unaudited condensed consolidated balance sheets as of March 31, 2016. Balance Sheet Classification of Deferred Taxes: In April 2015, the FASB issued guidance to simplify the presentation of deferred income taxes, which removes the requirement to separate deferred tax liabilities and assets into current and non-current amounts and instead requires all such amounts be classified as non-current on the Company's consolidated balance sheets. The guidance is effective for the Company's fiscal year beginning April 1, 2017, with early adoption permitted, and can be adopted on either a retrospective or prospective basis. The Company adopted the new guidance on a retrospective basis effective October 1, 2016. As discussed in Note 1, the Company previously presented an unclassified balance sheet and upon changing to presenting a classified balance sheet, all deferred tax assets and liabilities have been classified as long-term. Recognition and Measurement of Financial Instruments : In January 2016, the FASB issued new guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other provisions, the new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. For investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. The guidance is effective for the Company's fiscal year beginning April 1, 2018. Early adoption is not permitted, except for certain provisions relating to financial liabilities. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. Accounting for Leases : In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The new guidance also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The guidance is effective for the Company's fiscal year beginning April 1, 2019, with early adoption permitted, and is required to be implemented using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. Employee Share-Based Payment Accounting : In March 2016, the FASB issued amended guidance related to employee share-based payment accounting. One aspect of the guidance, which will become effective on a prospective basis, requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. In addition, the guidance eliminates the requirement that excess tax benefits be realized (i.e., through a reduction in income taxes payable) before companies can recognize them. This part of the guidance will be applied using a modified retrospective transition method and will result in the Company recording a cumulative-effect adjustment in retained earnings for excess tax benefits not previously recognized. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retrospectively or prospectively. The guidance also increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. Finally, the guidance provides for an election to account for forfeitures of share-based payments either by (1) recognizing forfeitures of awards as they occur or (2) estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change (as is required under the current guidance). The guidance is effective for the Company's fiscal year beginning April 1, 2017. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. Equity Method of Accounting : In March 2016, the FASB issued guidance that changes the requirements for equity method accounting when an investment qualifies for use of the equity method as a result of an increase in the investor’s ownership interest in or degree of influence over an investee. The guidance (i) eliminates the need to retroactively apply the equity method of accounting upon qualifying for such treatment, (ii) requires that the cost of acquiring the additional interest in an investee be added to the basis of the previously held interest and (iii) requires that unrealized holding gains or losses for available-for-sale equity securities that qualify for the equity method of accounting be recognized in earnings at the date the investment becomes qualified for use of the equity method of accounting. The guidance is effective for the Company's fiscal year beginning April 1, 2017. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. Classification of Certain Cash Receipts and Cash Payments: In August 2016, the FASB issued guidance that clarifies how entities should classify certain cash receipts and payments on the statement of cash flows. The guidance primarily relates to the classification of cash flows associated with certain (i) debt transactions including debt prepayment or extinguishment costs, (ii) contingent consideration arrangements related to a business combination, (iii) insurance claims and policies, (iv) distributions from equity method investees and (v) securitization transactions. This guidance is effective for the Company's fiscal year beginning April 1, 2018, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this new guidance will have on its statement of cash flows. Restricted Cash: In November 2016, the FASB issued guidance to clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The guidance will be applied retrospectively and is effective for the Company’s fiscal year beginning April 1, 2018, with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Net Income (Loss) Per Share | Basic net income (loss) per share is calculated based on the weighted average common shares outstanding for the period. Diluted net income (loss) 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 (loss) per common share also reflects share purchase options, including equity-settled share appreciation rights, restricted share units ("RSUs") and restricted stock using the treasury stock method when dilutive, and any contingently issuable shares when dilutive. |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Business Acquisition [Line Items] | |
Summary of Estimated Purchase Consideration | The following table summarizes the components of the estimated purchase consideration, inclusive of Lions Gate’s existing ownership of Starz common stock and Starz’s share-based equity awards outstanding as of December 8, 2016: (Amounts in millions) Market value, as of December 8, 2016, of Starz Series A and Series B common stock already owned by Lionsgate (1) $ 179 Cash consideration paid to Starz stockholders Starz Series A common stock at $18.00 $ 1,077 Starz Series B common stock at $7.26 53 1,130 Fair value of Lionsgate voting and non-voting shares issued to Starz's stockholders Starz Series A common stock at exchange ratio of 0.6784 Lionsgate non-voting shares $ 1,044 Starz Series B common stock at exchange ratio of 0.6321 Lionsgate voting shares 122 Starz Series B common stock at exchange ratio of 0.6321 Lionsgate non-voting shares 118 1,284 Replacement of Starz share-based payment awards (2) 187 Liability for dissenting shareholders 886 Total preliminary estimated purchase consideration $ 3,666 (1) The difference between the fair value of the Starz available-for-sale securities owned by Lionsgate and the original cost of the Starz available-for-sale securities of $159 million , of $20 million , has been reflected in the gain on Starz investment line item in the unaudited condensed consolidated statement of operations for the three and nine months ended December 31, 2016. See Note 4. (2) Upon the closing of the merger, each outstanding share-based equity award (i.e., stock options, restricted stock, and restricted stock units) of Starz was replaced by a Lions Gate non-voting share-based equity award (“Lions Gate replacement award”) with terms equivalent to the existing awards based on the exchange ratio set forth in the Merger Agreement. Each Starz outstanding award was measured at fair value on the date of acquisition and the portion attributable to pre-combination service was recorded as part of the purchase consideration. The fair value of the Lions Gate replacement award measured on the date of acquisition in excess of the fair value of the Starz award attributed to and recorded as part of the purchase consideration was attributed to post-combination services and will be recognized as share-based compensation expense over the remaining post-combination service period. The estimated aggregate fair value of the Lions Gate replacement awards to be recorded as part of the purchase consideration is $187 million , and the estimated remaining aggregate fair value totaling $43 million will be recognized in future periods in accordance with each respective award’s vesting terms. The fair value of the Lions Gate replacement restricted stock and restricted stock unit awards was determined based on the value estimated for the Class A voting shares and Class B non-voting shares as of the acquisition date as discussed above. The fair value of Lions Gate replacement stock option awards was determined using the Black-Scholes option valuation model using the estimated fair value of the Class B non-voting shares underlying the replacement stock options. For purposes of valuing the Lions Gate replacement awards, the following weighted-average applicable assumptions were used in the Black-Scholes option valuation model: Weighted average assumptions: Risk-free interest rate 0.00% - 1.83% Expected option lives (years) 0.01 - 5.50 years Expected volatility 35% Expected dividend yield 0% |
Fair Value Assumptions in Replacement Awards | For purposes of valuing the Lions Gate replacement awards, the following weighted-average applicable assumptions were used in the Black-Scholes option valuation model: Weighted average assumptions: Risk-free interest rate 0.00% - 1.83% Expected option lives (years) 0.01 - 5.50 years Expected volatility 35% Expected dividend yield 0% |
Purchase Price Allocation | The preliminary estimated purchase price of Starz has been allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value as follows: (Amounts in millions) Cash and cash equivalents $ 73 Accounts receivable 257 Investment in films and television programs and program rights 843 Property and equipment 121 Investments 12 Intangible assets 2,021 Other assets 128 Accounts payable and accrued liabilities (114 ) Corporate debt and capital lease obligations (1,016 ) Deferred tax liabilities (701 ) Other liabilities (157 ) Fair value of net assets acquired 1,467 Goodwill 2,199 Total estimated purchase consideration $ 3,666 |
Starz | |
Business Acquisition [Line Items] | |
Pro Forma Statement of Operations Information | The following unaudited pro forma condensed consolidated statements of operations information presented below illustrate the results of operations of the Company as if the Starz Merger and related debt financing (see Note 6) occurred on April 1, 2015. Nine Months Ended December 31, 2016 2015 (Amounts in millions, except per share amounts) Revenues $ 3,063 $ 2,806 Net income attributable to Lions Gate Entertainment Corp. shareholders $ 119 $ 134 Basic Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.61 $ 0.68 Diluted Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.60 $ 0.63 The unaudited pro forma condensed consolidated statement of operations information does not include adjustments for any operating efficiencies or cost savings, and exclude $61 million of acquisition-related and restructuring costs that were expensed in restructuring and other expenses during the nine months ended December 31, 2016. |
Pilgrim Media Group | |
Business Acquisition [Line Items] | |
Pro Forma Statement of Operations Information | The statement of operations information below includes the statement of income of Pilgrim Media Group for the nine months ended September 30, 2015 combined with the Company's statement of operations for the nine months ended December 31, 2015. Nine Months Ended December 31, 2015 (Amounts in millions, except per share amounts) Revenues $ 1,662 Net income attributable to Lions Gate Entertainment Corp. shareholders $ 46 Basic Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.31 Diluted Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.30 The unaudited pro forma condensed consolidated statement of operations information does not include adjustments for any restructuring activities, operating efficiencies or cost savings, and exclude certain one-time transactional costs of $8 million attributable to the noncontrolling shareholder expensed in connection with the transaction, as well as $3 million of acquisition-related costs that were expensed in restructuring and other expenses during the year ended March 31, 2016. |
Investment In Films and Telev31
Investment In Films and Television Programs and Program Rights (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Investment In Films And Television Programs and Program Rights [Abstract] | |
Investment In Films And Television Programs and Program Rights | December 31, March 31, (Amounts in millions) Motion Pictures Segment - Theatrical and Non-Theatrical Films Released, net of accumulated amortization $ 576 $ 584 Acquired libraries, net of accumulated amortization 3 4 Completed and not released 35 34 In progress 279 422 In development 38 28 931 1,072 Television Production Segment - Direct-to-Television Programs Released, net of accumulated amortization 210 189 In progress 119 191 In development 7 6 336 386 Media Networks Segment Licensed program rights, net of accumulated amortization 503 — Produced programming Released, net of accumulated amortization 107 — In progress 168 — In development 7 — 785 — Investment in films and television programs and program rights, net 2,052 1,458 Less current portion of program rights (236 ) — Non-current portion $ 1,816 $ 1,458 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 and March 31, 2016 were as follows: December 31, March 31, (Amounts in millions) Equity method investments $ 314 $ 297 Available-for-sale securities — 124 Cost method investments 43 43 $ 357 $ 464 |
Schedule of Equity Method Investments [Line Items] | |
Carrying Amount of Equity Method Investments | The carrying amounts of equity method investments at December 31, 2016 and March 31, 2016 were as follows: December 31, Equity Method Investee Ownership Percentage December 31, March 31, (Amounts in millions) EPIX 31.2% $ 179 $ 172 Pop 50.0% 94 99 Other Various 41 26 $ 314 $ 297 |
Equity Method Investee, Income (Loss) | Equity interests in equity method investments for the three and nine months ended December 31, 2016 and 2015 were as follows (income (loss)): Three Months Ended Nine Months Ended December 31, December 31, Equity Method Investee 2016 2015 2016 2015 (Amounts in millions) EPIX $ 5 $ 13 $ 21 $ 34 Pop (3 ) — (5 ) 1 Other (4 ) (2 ) (5 ) (6 ) $ (2 ) $ 11 $ 11 $ 29 |
Available-for-sale Securities [Abstract] | |
Available-for-sale Securities | The cost basis, unrealized losses and fair market value of available-for-sale securities were as set forth below: March 31, (Amounts in millions) Cost basis $ 159 Gross unrealized loss (35 ) Fair value $ 124 |
EPIX | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Balance Sheet | The following table presents summarized balance sheet data as of December 31, 2016 and March 31, 2016 for EPIX: December 31, March 31, (Amounts in millions) Current assets $ 386 $ 356 Non-current assets $ 393 $ 360 Current liabilities $ 113 $ 91 Non-current liabilities $ 23 $ 24 |
Summarized Statement of Income | The following table presents the summarized statements of income for the three and nine months ended December 31, 2016 and 2015 for EPIX and a reconciliation of the net income reported by EPIX to equity interest income recorded by the Company: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Revenues $ 101 $ 98 $ 298 $ 315 Expenses: Operating expenses 73 56 194 190 Selling, general and administrative expenses 5 6 18 18 Operating income 23 36 86 107 Interest and other expense — — — (2 ) Net income $ 23 $ 36 $ 86 $ 105 Reconciliation of net income reported by EPIX to equity interest income: Net income reported by EPIX $ 23 $ 36 $ 86 $ 105 Ownership interest in EPIX 31.15 % 31.15 % 31.15 % 31.15 % The Company's share of net income 7 11 27 33 Eliminations of the Company’s share of profits on licensing sales to EPIX (1) (4 ) — (10 ) (6 ) Realization of the Company’s share of profits on licensing sales to EPIX (2) 2 2 4 7 Total equity interest income recorded $ 5 $ 13 $ 21 $ 34 _________________________ (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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill by reporting segment were as follows: Motion Pictures Television Production Media Networks Total (Amounts in millions) Balance as of March 31, 2016 $ 294 $ 241 $ — $ 535 Starz Merger 68 — 2,131 2,199 Balance as of December 31, 2016 $ 362 $ 241 $ 2,131 $ 2,734 |
Finite-Lived Intangible Assets | Finite-lived intangible assets consisted of the following as of December 31, 2016 and March 31, 2016 : December 31, 2016 March 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Amounts in millions) Finite-lived intangible assets subject to amortization: Customer relationships $ 1,771 $ 7 $ 1,764 $ — $ — $ — Trademarks and trade names 9 7 2 9 7 2 Other 10 2 8 9 — 9 $ 1,790 $ 16 $ 1,774 $ 18 $ 7 $ 11 |
Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets not subject to amortization consisted of the following: December 31, 2016 March 31, 2016 (Amounts in millions) Indefinite-lived intangible assets not subject to amortization: Tradenames $ 250 $ — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt, Excluding Film Obligations and Production Loans | Total debt of the Company, excluding film obligations and production loans, was as follows as of December 31, 2016 and March 31, 2016 : December 31, March 31, (Amounts in millions) Corporate debt: Revolving credit facilities $ — $ 161 Term Loan A 1,000 — Term Loan B 2,000 — 5.875% Senior Notes 520 — 5.25% Senior Notes — 225 Term Loan Due 2022 — 400 Total corporate debt 3,520 786 Convertible senior subordinated notes 102 102 Capital lease obligations 59 — Total debt 3,681 888 Unamortized discount and debt issuance costs, net of fair value adjustment on capital lease obligations (106 ) (23 ) Total debt, net 3,575 865 Less current portion (118 ) (40 ) Non-current portion of debt $ 3,457 $ 825 |
Future Annual Contractual Principal Payment Commitments of Debt | The following table sets forth future annual contractual principal payment commitments of debt as of December 31, 2016 : Maturity Date Year Ended March 31, Debt Type 2017 2018 2019 2020 2021 Thereafter Total (Amounts in millions) Revolving credit facility December 2021 $ — $ — $ — $ — $ — $ — $ — Term Loan A December 2021 13 50 55 77 100 705 1,000 Term Loan B December 2023 5 20 20 20 20 1,915 2,000 5.875% Senior Notes November 2024 — — — — — 520 520 Capital lease obligations Various 1 6 6 4 3 39 59 Principal amounts of convertible senior subordinated notes: January 2012 4.00% Notes January 2017 42 — — — — — 42 April 2013 1.25% Notes April 2018 — — 60 — — — 60 $ 61 $ 76 $ 141 $ 101 $ 123 $ 3,179 3,681 Less aggregate unamortized discount & debt issuance costs, net of fair value adjustment on capital lease obligations (106 ) $ 3,575 |
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 December 31, 2016 and March 31, 2016 : Maturity Date Conversion Price Per Share at December 31, 2016 December 31, 2016 March 31, 2016 Convertible Senior Subordinated Notes Principal Unamortized Discount & Debt Issuance Costs Net Carrying Amount Principal Unamortized Discount & Debt Issuance Costs Net Carrying Amount (Amounts in millions) January 2012 4.00% Notes January 11, 2017 $10.21 $ 42 $ — $ 42 $ 42 $ (2 ) $ 40 April 2013 1.25% Notes April 15, 2018 $29.19 60 — 60 60 — 60 $ 102 $ — $ 102 $ 102 $ (2 ) $ 100 |
Conversions of Convertible Senior Subordinated Notes | The following conversions were completed with respect to the Company's convertible senior subordinated notes in the nine months ended December 31, 2015 (none in the nine months ended December 31, 2016 ). In January 2017, the outstanding principal amount of the January 2012 4.00% Notes was converted; see Subsequent Events Note 20 for further details. Nine Months Ended December 31, 2015 (Amounts in millions) April 2009 3.625% Notes Principal amount converted $ 16 Common shares issued upon conversion 2 Weighted average conversion price per share $ 8.15 |
Summary of Loss on Extinguishment of Debt | The following table summarizes the loss on extinguishment of debt recorded in the three and nine months ended December 31, 2016: (in millions) Loss on Extinguishment of Debt Senior revolving credit facility $ 1 Term Loan Due 2022 & 5.25% Senior Notes 24 Starz credit facility & Starz Senior Notes 3 $ 28 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Costs Associated with Issuance and Contemporaneous Redemption of Debt | The table below sets forth the applicable costs associated with the issuance and repayment of the senior revolving credit facility: Total Amortize Over Life of New Revolving Credit Facility Loss on Extinguishment of Debt (Amounts in millions) Previously incurred unamortized debt issuance costs of senior revolving credit facility $ 3 $ 2 $ 1 New costs incurred to issue the new revolving credit facility 20 20 — Total $ 23 $ 22 $ 1 |
Senior Secured Second-Priority Notes | Term Loan Due 2022 & 5.25% Senior Notes | |
Debt Instrument [Line Items] | |
Costs Associated with Issuance and Contemporaneous Redemption of Debt | The table below sets forth the applicable costs associated with the issuance of the Term Loan A, the Term Loan B, and the 5.875% Senior Notes and the redemption of the Term Loan Due 2022 and the 5.25% Senior Notes, respectively (as discussed above), and the applicable accounting for such: Total Amortize Over Life of 5.875% Senior Notes, Term Loan A and Term Loan B Loss on Extinguishment of Debt (Amounts in millions) Early redemption/ call premium on 5.25% Senior Notes and Term Loan Due 2022 and other fees paid to creditors $ 23 $ 11 $ 12 Previously incurred unamortized net discount/premium and debt issuance costs of 5.25% Senior Notes and Term Loan Due 2022 13 9 4 36 20 16 New costs incurred to issue the 5.875% Senior Notes, Term Loan A and Term Loan B 92 84 8 Total $ 128 $ 104 $ 24 |
Film Obligations and Producti35
Film Obligations and Production Loans (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Film Obligations And Production Loans [Abstract] | |
Films Obligations And Production Loans | December 31, March 31, (Amounts in millions) Film obligations $ 122 $ 25 Production loans 298 690 Total film obligations and production loans 420 715 Unamortized debt issuance costs (1 ) — Total film obligations and production loans, net 419 715 Less current portion (257 ) (663 ) Total non-current film obligations and production loans $ 162 $ 52 |
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 December 31, 2016 : Three Months Ending March 31, Year Ended March 31, 2017 2018 2019 2020 2021 Thereafter Total (Amounts in millions) Film obligations $ 61 $ 26 $ 11 $ 14 $ 4 $ 7 $ 123 Production loans 37 232 29 — — — 298 $ 98 $ 258 $ 40 $ 14 $ 4 $ 7 $ 421 Less imputed interest on film obligations and debt issuance costs on production loans (2 ) $ 419 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 and March 31, 2016 : December 31, 2016 March 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in millions) Available-for-sale securities (see Note 4) (1) : Starz Series A common stock $ — $ — $ — $ 56 $ — $ 56 Starz Series B common stock — — — — 68 68 Forward exchange contracts (see Note 18) — — — — 9 9 Liabilities: Forward exchange contracts (see Note 18) — (2 ) (2 ) — (1 ) (1 ) $ — $ (2 ) $ (2 ) $ 56 $ 76 $ 132 (1) At March 31, 2016, the Company classified the Series A common stock of Starz within Level 1 of the fair value hierarchy as the valuation inputs were based on quoted prices in active markets. The Series B common stock of Starz was considered a Level 2 security because the quoted market prices were based on infrequent transactions. Therefore, the fair value of the Series B common stock, which was convertible, at the holder’s option, into Series A common stock of Starz was based on the quoted market price of the Series A common stock, which was an equivalent security other than for the voting rights. |
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 December 31, 2016 and March 31, 2016 : December 31, 2016 March 31, 2016 (Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value (Level 3) (Level 3) Assets: Investment in Pop's mandatorily redeemable preferred stock units $ 94 $ 115 $ 99 $ 115 Carrying Value Fair Value Carrying Value Fair Value (Level 2) (Level 2) Liabilities: Term Loan A 975 1,003 — — Term Loan B 1,944 2,010 — — 5.875% Senior Notes 498 528 — — January 2012 4.00% Notes 42 43 40 41 April 2013 1.25% Notes 60 58 60 54 Production loans 298 298 690 690 5.25% Senior Notes — — 221 230 Term Loan Due 2022 — — 388 401 $ 3,817 $ 3,940 $ 1,399 $ 1,417 |
Redeemable Noncontrolling Int37
Redeemable Noncontrolling Interest (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The table below presents the reconciliation of changes in redeemable noncontrolling interest: Nine Months Ended December 31, 2016 (Amounts in millions) Beginning balance $ 90 Net loss of Pilgrim Media Group attributable to noncontrolling interest — Noncontrolling interest discount accretion 4 Adjustments to redemption value 6 Cash distributions (6 ) Ending balance $ 94 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic Net Income Per Common Share | Basic net income (loss) per share for the three and nine months ended December 31, 2016 and 2015 is presented below: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions, except per share amounts) Basic Net Income (Loss) Per Common Share: Numerator: Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (31 ) $ 41 $ (47 ) $ 39 Denominator: Weighted average common shares outstanding (1) 161.4 149.5 152.2 148.5 Basic net income (loss) per common share $ (0.19 ) $ 0.27 $ (0.31 ) $ 0.26 ___________________ (1) The weighted average common shares outstanding for the three and nine months ended December 31, 2016 do not include the equity portion of the merger consideration related to the dissenting Starz shareholders as discussed in Note 2 and Note 16. |
Diluted Net Income Per Common Share | Diluted net income (loss) per common share for the three and nine months ended December 31, 2016 and 2015 is presented below: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions, except per share amounts) Diluted Net Income (Loss) Per Common Share: Numerator: Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (31 ) $ 41 $ (47 ) $ 39 Add: Interest on convertible notes, net of tax — 1 — 1 Numerator for diluted net income (loss) per common share $ (31 ) $ 42 $ (47 ) $ 40 Denominator: Weighted average common shares outstanding 161.4 149.5 152.2 148.5 Effect of dilutive securities: Conversion of notes — 6.1 — 2.1 Share purchase options — 3.4 — 3.4 Restricted share units and restricted stock — 0.4 — 0.4 Adjusted weighted average common shares outstanding 161.4 159.4 152.2 154.4 Diluted net income (loss) per common share $ (0.19 ) $ 0.26 $ (0.31 ) $ 0.26 |
Anti-dilutive Shares Issuable | For the three and nine months ended December 31, 2016 and 2015 , the outstanding common shares issuable presented below were excluded from diluted net income (loss) per common share because their inclusion would have had an anti-dilutive effect. Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Anti-dilutive shares issuable Conversion of notes 6.2 — 6.1 4.0 Share purchase options 2.7 3.2 2.3 3.4 Restricted share units 0.2 0.1 0.1 0.1 Other issuable shares (1) 5.0 0.5 1.7 0.4 Total weighted average anti-dilutive shares issuable excluded from diluted net income per common share 14.1 3.8 10.2 7.9 ___________________ (1) For the three and nine months ended December 31, 2016, includes the impact of the equity portion of the merger consideration related to the dissenting Starz shareholders as discussed in Note 2 and Note 16. |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Equity and Share-based Compensation [Abstract] | |
Common Shares Reserved For Future Issuance | The table below outlines common shares reserved for future issuance: December 31, March 31, (Amounts in millions) Stock options outstanding, Class A voting shares average exercise price $25.93, Class B non-voting shares average exercise price $18.82 (March 31, 2016 - common shares average exercise price $24.55) 36 15 Restricted stock and restricted share units — unvested 3 2 Common shares available for future issuance under Lionsgate plan 1 2 Common shares available for future issuance under Starz plan 12 — Shares issuable upon conversion of January 2012 4.00% Notes at conversion price of $10.21 per share (March 31, 2016 - $10.26) 4 4 Shares issuable upon conversion of April 2013 1.25% Notes at conversion price of $29.19 per share (March 31, 2016 - $29.32) 2 2 Shares reserved for future issuance 58 25 |
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 and nine months ended December 31, 2016 , and 2015 : Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Compensation Expense: Stock options $ 13 $ 6 $ 29 $ 26 Restricted share units and other share-based compensation 9 7 23 21 Share appreciation rights — — — 1 22 13 52 48 Immediately vested restricted share units issued under annual bonus program (1) 7 — 20 — Impact of accelerated vesting on equity awards (2) — — 2 — Total share-based compensation expense $ 29 $ 13 $ 74 $ 48 Tax impact (3) (10 ) (5 ) (26 ) (17 ) Reduction in net income $ 19 $ 8 $ 48 $ 31 ___________________ (1) Represents the impact of immediately vested stock awards granted as part of our annual bonus program, and issued in lieu of cash bonuses. (2) Represents the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. (3) Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements. |
Schedule of Stock Option, Equity-Settled Share Appreciation Rights and Restricted Share Unit Activity | The following tables sets forth the stock option and restricted share unit activity during the nine months ended December 31, 2016 . The activity prior to the December 8, 2016 consummation of the Starz Merger and related reclassification of Lionsgate stock discussed above is presented in the table below: Stock Options Weighted-Average Exercise Price Restricted Share Units Weighted-Average Grant-Date Fair Value Outstanding at March 31, 2016 16,093,896 $23.83 1,647,432 $31.74 Granted 5,997,539 $22.73 1,537,632 $20.89 Options exercised or RSUs vested (2,145,852 ) $9.78 (1,789,908 ) $25.01 Forfeited or expired (552,067 ) $32.39 (164,592 ) $30.18 Outstanding at December 8, 2016 before share reclassification 19,393,516 $24.80 1,230,564 $28.18 Reclassification of common stock to newly issued Class A voting shares and Class B non-voting shares (19,393,516 ) (1,230,564 ) Outstanding at December 8, 2016 after share reclassification — — |
Schedule of Share-based Compensation, Stock Options, Activity | The stock option, restricted stock and restricted share unit activity from the December 8, 2016 consummation of the Starz Merger and related reclassification of Lionsgate stock discussed above, through December 31, 2016 is presented in the table below: Stock Options Restricted Stock and Restricted Share Units Class A Voting Shares Weighted-Average Exercise Price Class B Non-Voting Shares Weighted-Average Exercise Price Class A Voting Shares Weighted-Average Grant-Date Fair Value Class B Non-Voting Shares Weighted-Average Grant-Date Fair Value Issuance of Class A voting shares and Class B non-voting upon reclassification of common stock at December 8, 2016 9,528,634 $25.53 9,528,634 $24.68 615,103 $26.48 615,103 $25.70 Issuance for Lions Gate replacement awards — — 15,395,707 $14.68 — — 1,861,342 $25.70 Granted 4,913 $41.95 666,740 $25.38 2,916 $26.40 109,790 $25.45 Options exercised or restricted stock or RSUs vested — — (13,175 ) $20.83 (8,419 ) $26.92 (259,198 ) $25.74 Forfeited or expired (2,600 ) $38.73 (17,823 ) $26.57 (1,718 ) $36.92 (45,830 ) $26.12 Outstanding at December 31, 2016 9,530,947 $25.93 25,560,083 $18.82 607,882 $28.18 2,281,207 $26.35 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The stock option, restricted stock and restricted share unit activity from the December 8, 2016 consummation of the Starz Merger and related reclassification of Lionsgate stock discussed above, through December 31, 2016 is presented in the table below: Stock Options Restricted Stock and Restricted Share Units Class A Voting Shares Weighted-Average Exercise Price Class B Non-Voting Shares Weighted-Average Exercise Price Class A Voting Shares Weighted-Average Grant-Date Fair Value Class B Non-Voting Shares Weighted-Average Grant-Date Fair Value Issuance of Class A voting shares and Class B non-voting upon reclassification of common stock at December 8, 2016 9,528,634 $25.53 9,528,634 $24.68 615,103 $26.48 615,103 $25.70 Issuance for Lions Gate replacement awards — — 15,395,707 $14.68 — — 1,861,342 $25.70 Granted 4,913 $41.95 666,740 $25.38 2,916 $26.40 109,790 $25.45 Options exercised or restricted stock or RSUs vested — — (13,175 ) $20.83 (8,419 ) $26.92 (259,198 ) $25.74 Forfeited or expired (2,600 ) $38.73 (17,823 ) $26.57 (1,718 ) $36.92 (45,830 ) $26.12 Outstanding at December 31, 2016 9,530,947 $25.93 25,560,083 $18.82 607,882 $28.18 2,281,207 $26.35 |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | Restructuring and other includes restructuring and severance costs, certain transaction related costs, and certain unusual items, when applicable, and were as follows for the three and nine months ended December 31, 2016 and 2015: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Restructuring and other: Severance (1) Cash $ 22 $ — $ 24 $ — Accelerated vesting on equity awards (see Note 12) — — 2 — Total severance costs 22 — 26 — Transaction related costs (2) 27 12 39 14 Pension withdrawal costs (3) — — — 3 Other 3 1 5 1 $ 52 $ 13 $ 70 $ 18 _______________________ (1) Severance costs were primarily related to workforce reductions for redundancies in connection with the Starz Merger. Of the severance costs, $21 million is recorded as a liability and is expected to be paid within one-year from December 31, 2016. (2) Transaction related costs in the three and nine months ended December 31, 2016 represented primarily legal and professional fees, and other transaction related costs associated with the Starz Merger. Transaction related costs in the three and nine months ended December 31, 2015 represented professional fees associated with certain strategic transactions including, among others, the acquisition of a majority interest in Pilgrim Media Group and certain shareholder transactions. (3) Pension withdrawal costs in the nine months ended December 31, 2015 were related to an underfunded multi-employer pension plan in which the Company is no longer participating. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information By Business Unit | Segment information by business unit is presented in the table below. The Media Networks segment reflects the Starz network business from the date of acquisition (December 8, 2016), and the Lionsgate direct to consumer streaming services on SVOD platforms for the historical periods presented. Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Segment revenues Motion Pictures $ 440 $ 506 $ 1,266 $ 1,135 Television Production 229 165 595 421 Media Networks 85 — 86 — Intersegment eliminations (2 ) — (2 ) — $ 752 $ 671 $ 1,945 $ 1,556 Gross contribution Motion Pictures $ 77 $ 51 $ 153 $ 157 Television Production 33 17 70 49 Media Networks 41 (1 ) 29 (1 ) Intersegment eliminations (1 ) — (1 ) — $ 150 $ 67 $ 251 $ 205 Segment general and administration Motion Pictures $ 26 $ 18 $ 74 $ 60 Television Production 7 5 23 15 Media Networks 8 3 14 3 $ 41 $ 26 $ 111 $ 78 Segment profit (loss) Motion Pictures $ 51 $ 33 $ 79 $ 97 Television Production 26 12 47 34 Media Networks 33 (4 ) 15 (4 ) Intersegment eliminations (1 ) — (1 ) — $ 109 $ 41 $ 140 $ 127 |
Reconciliation Of Total Segment Profit To The Company's Loss Before Income Taxes | The reconciliation of total segment profit to the Company’s loss before income taxes is as follows: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Company’s total segment profit $ 109 $ 41 $ 140 $ 127 Corporate general and administrative expenses (25 ) (17 ) (68 ) (54 ) Adjusted depreciation and amortization (1) (4 ) (3 ) (13 ) (7 ) Restructuring and other (2) (52 ) (13 ) (70 ) (18 ) Adjusted share-based compensation expense (3) (22 ) (13 ) (52 ) (48 ) Purchase accounting and related adjustments (4) (13 ) (4 ) (25 ) (4 ) Operating loss (7 ) (9 ) (88 ) (4 ) Interest expense (27 ) (14 ) (58 ) (40 ) Interest and other income 1 — 4 2 Gain on Starz investment 20 — 20 — Loss on extinguishment of debt (28 ) — (28 ) — Equity interests income (2 ) 11 11 29 Loss before income taxes $ (43 ) $ (12 ) $ (139 ) $ (13 ) ___________________ (1) Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in the acquisition of Starz and Pilgrim Media Group which are included in the purchase accounting and related adjustments line item above. (2) Restructuring and other includes restructuring and severance costs, certain transaction related costs, and certain unusual items, when applicable (see Note 14). (3) Adjusted share-based compensation expense represents share-based compensation excluding (i) immediately vested stock awards granted as part of our annual bonus program issued in lieu of cash bonuses, which are included in segment and corporate general and administrative expenses, and (ii) the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements, when included in restructuring and other expenses (see Note 12 and Note 14). (4) Purchase accounting and related adjustments represent the amortization of non-cash fair value adjustments to the assets and liabilities acquired in the acquisition of Starz and Pilgrim Media Group. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 3 $ 3 $ 11 $ 3 General and administrative expense 1 1 4 1 Depreciation and amortization 9 — 10 — $ 13 $ 4 $ 25 $ 4 |
Segment Revenues by Media | The following table sets forth revenues by media or product line as broken down by segment for the three and nine months ended December 31, 2016 and 2015 : Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Segment revenues: Motion Pictures Theatrical $ 87 $ 183 $ 197 $ 232 Home Entertainment 167 126 467 389 Television 91 49 214 157 International 90 140 372 333 Other 5 8 16 24 Total Motion Pictures revenues $ 440 $ 506 $ 1,266 $ 1,135 Television Production Domestic Television $ 174 $ 121 $ 481 $ 268 International 31 26 75 112 Home Entertainment 23 16 33 36 Other 1 2 6 5 Total Television Production revenues $ 229 $ 165 $ 595 $ 421 Media Networks Starz Networks $ 83 $ — $ 83 $ — Content and Other 1 — 1 — Streaming Services 1 — 2 — Total Media Networks revenues $ 85 $ — $ 86 $ — Intersegment eliminations (2 ) — (2 ) — Total revenues $ 752 $ 671 $ 1,945 $ 1,556 |
Reconciliation of Assets from Segment to Consolidated | The reconciliation of total segment assets to the Company’s total consolidated assets is as follows: December 31, March 31, (Amounts in millions) Assets Motion Pictures $ 1,813 $ 1,924 Television Production 1,158 1,130 Media Networks 5,359 — Other unallocated assets (1) 1,050 780 $ 9,380 $ 3,834 _____________________ (1) Other unallocated assets primarily consist of cash, other assets and investments. |
Acquisition of Investment in Films and Television Programs and Program Rights by Segment | The following table sets forth acquisition of investment in films and television programs and program rights, as broken down by segment for the three and nine months ended December 31, 2016 and 2015 : Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Acquisition of investment in films and television programs and program rights Motion Pictures $ 76 $ 140 $ 267 $ 504 Television Production 106 96 345 267 Media Networks 31 — 48 — $ 213 $ 236 $ 660 $ 771 |
Purchase Accounting and Related Adjustments | Purchase accounting and related adjustments represent the amortization of non-cash fair value adjustments to the assets and liabilities acquired in the acquisition of Starz and Pilgrim Media Group. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended Nine Months Ended December 31, December 31, 2016 2015 2016 2015 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 3 $ 3 $ 11 $ 3 General and administrative expense 1 1 4 1 Depreciation and amortization 9 — 10 — $ 13 $ 4 $ 25 $ 4 |
Consolidating Financial Infor42
Consolidating Financial Information - Convertible Senior Subordinated Notes (Tables) - Convertible Senior Subordinated Notes | 9 Months Ended |
Dec. 31, 2016 | |
Consolidating Financial Information [Line Items] | |
Condensed Consolidating Balance Sheet | As of March 31, 2016 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) BALANCE SHEET Assets Cash and cash equivalents $ 1 $ 28 $ 29 $ — $ 58 Restricted cash — 3 — — 3 Accounts receivable, net 1 2 567 — 570 Other current assets — 18 219 — 237 Total current assets 2 51 815 — 868 Investment in films and television programs, net — 6 1,452 — 1,458 Property and equipment, net — 36 7 — 43 Investments 40 15 409 — 464 Intangible assets — — 11 — 11 Goodwill 10 — 525 — 535 Other assets — 24 302 (5 ) 321 Deferred tax assets 1 122 11 — 134 Subsidiary investments and advances 1,584 1,519 3,095 (6,198 ) — $ 1,637 $ 1,773 $ 6,627 $ (6,203 ) $ 3,834 Liabilities and Shareholders' Equity (Deficiency) Accounts payable and accrued liabilities 22 90 243 — 355 Participations and residuals — 3 434 — 437 Film obligations and production loans — — 663 — 663 Debt - short term portion — 40 — — 40 Deferred revenue — — 246 — 246 Total current liabilities 22 133 1,586 — 1,741 Debt 765 60 — — 825 Participations and residuals — 1 169 — 170 Film obligations and production loans — — 52 — 52 Other liabilities — — 23 — 23 Deferred revenue — 5 77 — 82 Intercompany payable — 1,907 2,416 (4,323 ) — Redeemable noncontrolling interest — — 91 — 91 Total shareholders' equity (deficiency) 850 (333 ) 2,213 (1,880 ) 850 $ 1,637 $ 1,773 $ 6,627 $ (6,203 ) $ 3,834 As of December 31, 2016 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) BALANCE SHEET Assets Cash and cash equivalents $ 1 $ 84 $ 510 $ — $ 595 Restricted cash — 3 — — 3 Accounts receivable, net 1 2 774 — 777 Program rights — — 236 — 236 Other current assets 1 20 243 (5 ) 259 Total current assets 3 109 1,763 (5 ) 1,870 Investment in films and television programs and program rights, net — 6 1,810 — 1,816 Property and equipment, net — 38 130 — 168 Investments 40 12 305 — 357 Intangible assets — — 2,024 — 2,024 Goodwill 10 — 2,724 — 2,734 Other assets — 17 388 — 405 Deferred tax assets 6 232 — (232 ) 6 Subsidiary investments and advances 5,708 1,652 3,136 (10,496 ) — $ 5,767 $ 2,066 $ 12,280 $ (10,733 ) $ 9,380 Liabilities and Shareholders' Equity (Deficiency) Accounts payable and accrued liabilities 42 98 391 — 531 Participations and residuals — 4 495 — 499 Film obligations and production loans — — 257 — 257 Debt - short term portion 70 42 6 — 118 Deferred revenue — 3 177 — 180 Total current liabilities 112 147 1,326 — 1,585 Debt 3,332 53 72 — 3,457 Participations and residuals — — 304 — 304 Film obligations and production loans — — 162 — 162 Other liabilities — — 33 — 33 Dissenting shareholders liability — — 886 — 886 Deferred revenue — — 76 — 76 Deferred tax liabilities — — 693 (232 ) 461 Intercompany payable — 2,342 2,666 (5,008 ) — Redeemable noncontrolling interest — — 94 — 94 Total shareholders' equity (deficiency) 2,323 (476 ) 5,968 (5,493 ) 2,322 $ 5,767 $ 2,066 $ 12,280 $ (10,733 ) $ 9,380 |
Condensed Consolidating Statement of Operations | Nine Months Ended December 31, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) STATEMENT OF OPERATIONS Revenues $ — $ 16 $ 1,541 $ (1 ) $ 1,556 EXPENSES: Direct operating 1 — 926 — 927 Distribution and marketing — 6 422 — 428 General and administration 3 105 73 (1 ) 180 Depreciation and amortization — 6 1 — 7 Restructuring and other 3 4 11 — 18 Total expenses 7 121 1,433 (1 ) 1,560 OPERATING INCOME (LOSS) (7 ) (105 ) 108 — (4 ) Other expenses (income): Interest expense 28 164 129 (281 ) 40 Interest and other income (154 ) (1 ) (127 ) 280 (2 ) Total other expenses (income) (126 ) 163 2 (1 ) 38 INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES 119 (268 ) 106 1 (42 ) Equity interests income (loss) (81 ) 186 30 (106 ) 29 INCOME (LOSS) BEFORE INCOME TAXES 38 (82 ) 136 (105 ) (13 ) Income tax provision (benefit) (1 ) (45 ) 54 (52 ) (44 ) NET INCOME (LOSS) 39 (37 ) 82 (53 ) 31 Less: Net loss attributable to noncontrolling interest — — — 8 8 Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ 39 $ (37 ) $ 82 $ (45 ) $ 39 Nine Months Ended December 31, 2016 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) STATEMENT OF OPERATIONS Revenues $ — $ 12 $ 1,933 $ — $ 1,945 EXPENSES: Direct operating — 2 1,181 — 1,183 Distribution and marketing — 1 521 — 522 General and administration 2 96 138 (1 ) 235 Depreciation and amortization — 8 15 — 23 Restructuring and other 2 63 5 — 70 Total expenses 4 170 1,860 (1 ) 2,033 OPERATING INCOME (LOSS) (4 ) (158 ) 73 1 (88 ) Other expenses (income): Interest expense 45 171 150 (308 ) 58 Interest and other income (173 ) — (138 ) 307 (4 ) Gain on Starz investment (20 ) — — — (20 ) Loss on extinguishment of debt 22 3 3 — 28 Total other expenses (income) (126 ) 174 15 (1 ) 62 INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES 122 (332 ) 58 2 (150 ) Equity interests income (loss) (159 ) 67 16 87 11 INCOME (LOSS) BEFORE INCOME TAXES (37 ) (265 ) 74 89 (139 ) Income tax provision (benefit) 10 (106 ) 32 (28 ) (92 ) NET INCOME (LOSS) (47 ) (159 ) 42 117 (47 ) Less: Net loss attributable to noncontrolling interest — — — — — Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (47 ) $ (159 ) $ 42 $ 117 $ (47 ) |
Condensed Consolidating Statement of Comprehensive Income (Loss) | Nine Months Ended December 31, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Amounts in millions) NET INCOME (LOSS) $ 39 $ (37 ) $ 82 $ (53 ) $ 31 Foreign currency translation adjustments, net of tax (1 ) (4 ) (4 ) 10 1 Net unrealized loss on available-for-sale securities, net of tax — — (4 ) — (4 ) Net unrealized gain on foreign exchange contracts, net of tax — — 2 — 2 COMPREHENSIVE INCOME (LOSS) $ 38 $ (41 ) $ 76 $ (43 ) $ 30 Less: Comprehensive loss attributable to noncontrolling interest — — — 8 8 Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ 38 $ (41 ) $ 76 $ (35 ) $ 38 Nine Months Ended December 31, 2016 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Amounts in millions) NET INCOME (LOSS) $ (47 ) $ (159 ) $ 42 $ 117 $ (47 ) Foreign currency translation adjustments, net of tax (8 ) (14 ) (10 ) 24 (8 ) Net unrealized gain on available-for-sale securities, net of tax 55 — 55 (55 ) 55 Reclassification adjustment for gain on available-for-sale securities realized in net loss (20 ) — (20 ) 20 (20 ) Net unrealized loss on foreign exchange contracts, net of tax (5 ) — (5 ) 5 (5 ) COMPREHENSIVE INCOME (LOSS) (25 ) (173 ) 62 111 (25 ) Less: Comprehensive loss attributable to noncontrolling interest — — — — — Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (25 ) $ (173 ) $ 62 $ 111 $ (25 ) |
Condensed Consolidating Statement of Cash Flows | Nine Months Ended December 31, 2016 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) STATEMENT OF CASH FLOWS NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (2,542 ) $ 66 $ 2,892 $ — $ 416 INVESTING ACTIVITIES: Investment in equity method investees — (1 ) (12 ) — (13 ) Distributions from equity method investees — — 2 — 2 Purchase of Starz, net of cash acquired of $73 — — (1,057 ) — (1,057 ) Capital expenditures — (9 ) (7 ) — (16 ) NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES — (10 ) (1,074 ) — (1,084 ) FINANCING ACTIVITIES: Debt - borrowings 3,911 — — — 3,911 Debt - repayments (1,311 ) — (941 ) — (2,252 ) Production loans - borrowings — — 231 — 231 Production loans - repayments — — (623 ) — (623 ) Dividends paid (27 ) — — — (27 ) Distributions to noncontrolling interest — — (6 ) — (6 ) Exercise of stock options 1 — — — 1 Tax withholding required on equity awards (32 ) — — — (32 ) NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES 2,542 — (1,339 ) — 1,203 NET CHANGE IN CASH AND CASH EQUIVALENTS — 56 479 — 535 FOREIGN EXCHANGE EFFECTS ON CASH — — 2 — 2 CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD 1 28 29 — 58 CASH AND CASH EQUIVALENTS — END OF PERIOD $ 1 $ 84 $ 510 $ — $ 595 Nine Months Ended December 31, 2015 Lions Gate Entertainment Corp. Lions Gate Entertainment Inc. Non-guarantor Subsidiaries Consolidating Adjustments Lions Gate Consolidated (Amounts in millions) STATEMENT OF CASH FLOWS NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 25 $ 18 $ (154 ) $ — $ (111 ) INVESTING ACTIVITIES: Investment in equity method investees and other investments — (1 ) (3 ) — (4 ) Purchase of Pilgrim Media Group, net of cash acquired of $16 — — (127 ) — (127 ) Capital expenditures — (13 ) (1 ) — (14 ) NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES — (14 ) (131 ) — (145 ) FINANCING ACTIVITIES: Debt - borrowings 262 — — — 262 Debt - repayments (238 ) — — — (238 ) Production loans - borrowings — — 510 — 510 Production loans - repayments — — (241 ) — (241 ) Dividends paid (34 ) — — — (34 ) Exercise of stock options 6 — — — 6 Tax withholding required on equity awards (23 ) — — — (23 ) NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES (27 ) — 269 — 242 NET CHANGE IN CASH AND CASH EQUIVALENTS (2 ) 4 (16 ) — (14 ) FOREIGN EXCHANGE EFFECTS ON CASH — — (1 ) — (1 ) CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD 4 47 52 — 103 CASH AND CASH EQUIVALENTS — END OF PERIOD $ 2 $ 51 $ 35 $ — $ 88 |
Derivative Instruments and He43
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding Forward Foreign Exchange Contracts | As of December 31, 2016 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 15 months from December 31, 2016 ): December 31, 2016 Foreign Currency Foreign Currency Amount US Dollar Amount Weighted Average Exchange Rate Per $1 USD (Amounts in millions) (Amounts in millions) British Pound Sterling £10 in exchange for $13 £0.78 Hungarian Forint HUF 4,458 in exchange for $17 HUF 269.79 Euro €7 in exchange for $8 €0.88 Canadian Dollar C$25 in exchange for $19 C$1.31 New Zealand Dollar NZD 35 in exchange for $25 NZD 0.69 |
Additional Financial Informat44
Additional Financial Information (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Additional Financial Information [Abstract] | |
Schedule of Other Assets [Table Text Block] | The composition of the Company’s other assets is as follows as of December 31, 2016 and March 31, 2016 : December 31, March 31, (Amounts in millions) Other current assets Prepaid expenses and other $ 24 $ 26 Product inventory 27 21 Tax credits receivable 208 190 $ 259 $ 237 Other non-current assets Prepaid expenses and other $ 37 $ 32 Accounts receivable 262 222 Tax credits receivable 106 67 $ 405 $ 321 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | The supplemental schedule of non-cash investing and financing activities for the nine months ended December 31, 2016 and 2015 is presented below: Nine Months Ended December 31, 2016 2015 (Amounts in millions) Non-cash investing activities: Issuance of common shares related to Starz Merger (see Note 2) $ 1,284 $ — Accrued purchase consideration for dissenting shareholders (see Note 2) $ 886 $ — Issuance of Starz share-based payment replacement awards $ 187 $ — Issuance of common shares related to Pilgrim Media Group acquisition (see Note 2) $ — $ 56 Non-cash financing activities: Accrued dividends (see Note 12) $ — $ 13 Conversions of convertible senior subordinated notes (see Note 6) $ — $ 16 |
General (Basis of Presentation)
General (Basis of Presentation) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Reclassifications to Conform to Current Period Presentation [Line Items] | ||
Product inventory from investment in film and television program | $ (1,816) | $ (1,458) |
Short-term tax credits receivable | (208) | (190) |
Long-term tax credits receivable | (106) | (67) |
Intangible assets | $ (2,024) | (11) |
Restatement Adjustment [Member] | ||
Reclassifications to Conform to Current Period Presentation [Line Items] | ||
Product inventory from investment in film and television program | 21 | |
Long-term accounts receivable | 222 | |
Short-term tax credits receivable | 190 | |
Long-term tax credits receivable | 67 | |
Intangible assets | 11 | |
Senior revolving credit facility | 156 | |
Senior notes | 221 | |
Term loan | 388 | |
Convertible senior subordinated notes | $ 100 | |
Senior Secured Second-Priority Notes | 5.25% Senior Notes | ||
Reclassifications to Conform to Current Period Presentation [Line Items] | ||
Coupon rate | 5.25% | 5.25% |
General (Recent Accounting Pron
General (Recent Accounting Pronouncements) (Details) $ in Millions | Mar. 31, 2016USD ($) |
Presentation of Debt Issuance Costs | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs reclassified | $ 21 |
Mergers and Acquisitions (Narra
Mergers and Acquisitions (Narrative) (Details) $ / shares in Units, $ in Millions | Dec. 08, 2016USD ($)plaintiff$ / sharesshares | Nov. 12, 2015USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2016USD ($)shares | Mar. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||||
Petitions filed | plaintiff | 3 | |||||
Accrued merger consideration payable | $ 886 | $ 886 | $ 886 | $ 0 | ||
Goodwill | 2,734 | 2,734 | 2,734 | 535 | ||
Principal amount of debt outstanding | 3,520 | 3,520 | 3,520 | 786 | ||
Starz | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 1,130 | |||||
Goodwill | $ 2,199 | |||||
Revenue since acquisition | 97 | |||||
Income before income taxes since acquisition | $ 40 | |||||
Starz | Acquisition-related Costs | ||||||
Business Acquisition [Line Items] | ||||||
Merger-related transaction costs | $ 49 | $ 61 | ||||
Starz | Starz Series A Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Cash to be paid per outstanding share (in usd per share) | $ / shares | $ 18 | |||||
Cash consideration | $ 1,077 | |||||
Starz | Starz Series B Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Cash to be paid per outstanding share (in usd per share) | $ / shares | $ 7.26 | |||||
Cash consideration | $ 53 | |||||
Starz | Class A Voting Shares | ||||||
Business Acquisition [Line Items] | ||||||
Lionsgate share price (in usd per share) | $ / shares | $ 26.48 | |||||
Starz | Class A Voting Shares | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Conversion of Stock, Shares Issued | shares | 0.5 | |||||
Starz | Class A Voting Shares | Starz Series B Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Conversion of stock, shares converted | shares | 0.6321 | |||||
Starz | Class B Non-Voting Shares | ||||||
Business Acquisition [Line Items] | ||||||
Lionsgate share price (in usd per share) | $ / shares | $ 25.70 | |||||
Starz | Class B Non-Voting Shares | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Conversion of Stock, Shares Issued | shares | 0.5 | |||||
Starz | Class B Non-Voting Shares | Starz Series A Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Conversion of stock, shares converted | shares | 0.6784 | |||||
Starz | Class B Non-Voting Shares | Starz Series B Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Conversion of stock, shares converted | shares | 0.6321 | |||||
Starz | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Lionsgate share price (in usd per share) | $ / shares | $ 26.09 | |||||
Pilgrim Media Group | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price, common shares issued or issuable (in shares) | shares | 1,517,451 | |||||
Cash consideration | $ 145 | |||||
Percentage of interest acquired | 62.50% | |||||
Aggregate purchase price | $ 202 | |||||
Purchase price, common shares issued, value assigned | 57 | |||||
Pilgrim Media Group | Transactional Costs | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related and transactional costs | $ 8 | 3 | ||||
Customer relationships | Starz | ||||||
Business Acquisition [Line Items] | ||||||
Weighted-average useful life | 17 years | |||||
Starz Dissenting Shareholders | Starz | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price, common shares issued or issuable (in shares) | shares | 17,000,000 | |||||
Outstanding equity interests (in shares) | shares | 25,000,000 | 25,000,000 | 25,000,000 | |||
Accrued merger consideration payable | $ 886 | $ 886 | $ 886 | $ 886 | ||
Period for demanding appraisal rights | 60 days | |||||
Shareholders withdrawing demands of appraisal rights (in shares) | shares | 2,510,485 | 2,510,485 | 2,510,485 | |||
Revolving Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Principal amount of debt outstanding | $ 0 | $ 0 | $ 0 | $ 161 | ||
Outstanding obligations | 241 | |||||
Revolving Credit Facility | Starz | ||||||
Business Acquisition [Line Items] | ||||||
Outstanding obligations | 255 | |||||
Starz Senior Notes | Senior Notes | ||||||
Business Acquisition [Line Items] | ||||||
Principal amount of debt outstanding | $ 675 |
Mergers and Acquisitions (Compo
Mergers and Acquisitions (Components of Estimated Purchase Consideration) (Details) - USD ($) $ in Millions | Dec. 08, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Cost basis | $ 159 | |||||
Gain recognized on Starz available-for-sale securities | $ 20 | $ 0 | $ 20 | $ 0 | ||
Dissenting shareholders' liability | 886 | 886 | $ 0 | |||
Starz | ||||||
Business Acquisition [Line Items] | ||||||
Cost basis | $ 159 | |||||
Gain recognized on Starz available-for-sale securities | 20 | 20 | ||||
Market value, as of December 8, 2016, of Starz Series A and Series B common stock already owned by Lionsgate | 179 | |||||
Cash consideration paid to Starz stockholders | 1,130 | |||||
Fair value of Lionsgate voting and non-voting shares issued to Starz's stockholders | 1,284 | |||||
Replacement of Starz share-based payment awards | 187 | |||||
Total preliminary estimated purchase consideration | 3,666 | |||||
Replacement of Starz share-based payment awards, unvested | 43 | |||||
Starz Series A Common Stock | Starz | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration paid to Starz stockholders | 1,077 | |||||
Starz Series A Common Stock | Starz | Class B Non-Voting Shares | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of Lionsgate voting and non-voting shares issued to Starz's stockholders | 1,044 | |||||
Starz Series B Common Stock | Starz | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration paid to Starz stockholders | 53 | |||||
Starz Series B Common Stock | Starz | Class B Non-Voting Shares | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of Lionsgate voting and non-voting shares issued to Starz's stockholders | 118 | |||||
Starz Series B Common Stock | Starz | Class A Voting Shares | ||||||
Business Acquisition [Line Items] | ||||||
Fair value of Lionsgate voting and non-voting shares issued to Starz's stockholders | 122 | |||||
Starz Dissenting Shareholders | Starz | ||||||
Business Acquisition [Line Items] | ||||||
Dissenting shareholders' liability | $ 886 | $ 886 | $ 886 |
Mergers and Acquisitions (Valua
Mergers and Acquisitions (Valuation Model for Lions Gate Replacement Awards) (Details) - Stock Options - Lions Gate Replacement Awards - Equity Issued in Starz Acquisition | Dec. 08, 2016 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Expected volatility | 35.00% |
Expected dividend yield | 0.00% |
Minimum | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Risk-free interest rate | 0.00% |
Expected option lives (years) | 4 days |
Maximum | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Risk-free interest rate | 1.83% |
Expected option lives (years) | 5 years 6 months |
Mergers and Acquisitions (Purch
Mergers and Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 08, 2016 | Mar. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,734 | $ 535 | |
Starz | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 73 | ||
Accounts receivable | 257 | ||
Investment in films and television programs and program rights | 843 | ||
Property and equipment | 121 | ||
Investments | 12 | ||
Intangible assets | 2,021 | ||
Other assets | 128 | ||
Accounts payable and accrued liabilities | (114) | ||
Corporate debt and capital lease obligations | (1,016) | ||
Deferred tax liabilities | (701) | ||
Other liabilities | (157) | ||
Fair value of net assets acquired | 1,467 | ||
Goodwill | 2,199 | ||
Total estimated purchase consideration | $ 3,666 |
Mergers and Acquisitions (Pro F
Mergers and Acquisitions (Pro Forma Statement of Operations Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Starz | ||
Business Acquisition [Line Items] | ||
Revenues | $ 3,063 | $ 2,806 |
Net income attributable to Lions Gate Entertainment Corp. shareholders | $ 119 | $ 134 |
Basic Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders (in usd per share) | $ 0.61 | $ 0.68 |
Diluted Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders (in usd per share) | $ 0.60 | $ 0.63 |
Pilgrim Media Group | ||
Business Acquisition [Line Items] | ||
Revenues | $ 1,662 | |
Net income attributable to Lions Gate Entertainment Corp. shareholders | $ 46 | |
Basic Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders (in usd per share) | $ 0.31 | |
Diluted Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders (in usd per share) | $ 0.30 |
Investment In Films and Telev52
Investment In Films and Television Programs and Program Rights (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment In Films And Television Programs and Program Rights [Abstract] | ||||
Percentage of unamortized film costs, one year | 51.00% | |||
Percentage of unamortized film costs, three years | 83.00% | |||
Fair value film write-downs | $ 2 | $ 3 | $ 7 | $ 12 |
Investment In Films and Telev53
Investment In Films and Television Programs and Program Rights (Schedule of Investment In Films And Television Programs) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Total investment in films and television programs and program rights, net | $ 2,052 | $ 1,458 |
Less current portion of program rights | (236) | 0 |
Non-current portion | 1,816 | 1,458 |
Motion Pictures | Theatrical And Non-Theatrical Films | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 576 | 584 |
Acquired libraries, net of accumulated amortization | 3 | 4 |
Completed and not released | 35 | 34 |
In progress | 279 | 422 |
In development | 38 | 28 |
Total investment in film and television programs | 931 | 1,072 |
Television Production | Direct-to-Television Programs | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 210 | 189 |
In progress | 119 | 191 |
In development | 7 | 6 |
Total investment in film and television programs | 336 | 386 |
Media Networks | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Total investment in films and television programs and program rights, net | 785 | 0 |
Media Networks | Licensed Program Rights | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Licensed program rights, net of accumulated amortization | 503 | 0 |
Media Networks | Produced Programming | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 107 | 0 |
In progress | 168 | 0 |
In development | $ 7 | $ 0 |
Investments (Investments by Cat
Investments (Investments by Category) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Equity Method Investments, Cost Method Investments, and Investments in Debt and Equity [Abstract] | ||
Equity method investments | $ 314 | $ 297 |
Available-for-sale securities | 0 | 124 |
Cost method investments | 43 | 43 |
Investments | $ 357 | $ 464 |
Investments (Carrying Amount Of
Investments (Carrying Amount Of Equity Method Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 314 | $ 297 | |
EPIX | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 31.15% | 31.15% | |
Equity method investments | $ 179 | 172 | |
Pop | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Equity method investments | $ 94 | 99 | |
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 41 | $ 26 |
Investments (Equity Method Inve
Investments (Equity Method Investee, Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests income (loss) | $ (2) | $ 11 | $ 11 | $ 29 |
EPIX | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests income (loss) | 5 | 13 | 21 | 34 |
Pop | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests income (loss) | (3) | 0 | (5) | 1 |
Other | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interests income (loss) | $ (4) | $ (2) | $ (5) | $ (6) |
Investments (Equity Method In57
Investments (Equity Method Investments Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 30 Months Ended | 75 Months Ended | 105 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Sep. 30, 2010 | Dec. 31, 2016 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Investment in equity method investee | $ 13 | $ 4 | |||||||
EPIX | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investment in equity method investee | $ 80 | $ 0 | |||||||
Equity method investment distributions received | $ 14 | $ 0 | $ 14 | $ 0 | $ 42 | ||||
Equity method investment, ownership percentage | 31.15% | 31.15% | 31.15% | 31.15% | 31.15% | 31.15% | |||
Pop | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investment in equity method investee | $ 0 | $ 0 | $ 0 | $ 1 | |||||
Ownership interest percentage after call option, partner in equity method investment | 80.00% | 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% | |||||
Defy Media | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Effective economic interest in Defy Media | 10.30% | 10.30% | 10.30% | 10.30% | |||||
Roadside Attractions | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity method investment, ownership percentage | 43.00% | 43.00% | 43.00% | 43.00% | |||||
Pantelion Films | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | 49.00% | 49.00% | |||||
Atom Tickets | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investment in equity method investee | $ 8 | $ 4 | |||||||
Equity method investment, ownership percentage | 19.00% | 19.00% | 19.00% | 19.00% | |||||
Playco | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity method investment, ownership percentage | 41.30% | 41.30% | 41.30% | 41.30% | |||||
Redeemable Preferred Stock | Pop | |||||||||
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) - EPIX - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 386 | $ 356 |
Non-current assets | 393 | 360 |
Current liabilities | 113 | 91 |
Non-current liabilities | $ 23 | $ 24 |
Investments (Summarized Stateme
Investments (Summarized Statement Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reconciliation of net income reported by investee to equity interest income: | |||||
Total equity interest income recorded | $ (2) | $ 11 | $ 11 | $ 29 | |
EPIX | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | 101 | 98 | 298 | 315 | |
Expenses: | |||||
Operating expenses | 73 | 56 | 194 | 190 | |
Selling, general and administrative expenses | 5 | 6 | 18 | 18 | |
Operating income | 23 | 36 | 86 | 107 | |
Interest and other expense | 0 | 0 | 0 | (2) | |
Reconciliation of net income reported by investee to equity interest income: | |||||
Net income | $ 23 | $ 36 | $ 86 | $ 105 | |
Ownership interest in investee | 31.15% | 31.15% | 31.15% | 31.15% | |
The Company's share of net income | $ 7 | $ 11 | $ 27 | $ 33 | |
Eliminations of the Company's share of profits on licensing sales to investee | [1] | (4) | 0 | (10) | (6) |
Realization of the Company's share of profits on licensing sales to investee | [2] | 2 | 2 | 4 | 7 |
Total equity interest income recorded | $ 5 | $ 13 | $ 21 | $ 34 | |
[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. |
Investments (Available-for-sale
Investments (Available-for-sale Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Cost basis | $ 159 | |
Gross unrealized loss | (35) | |
Fair value | $ 0 | $ 124 |
Investments (Available-for-sa61
Investments (Available-for-sale Narrative) (Details) - USD ($) $ in Millions | Dec. 08, 2016 | Mar. 27, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | |||||||
Cost basis | $ 159 | ||||||
Gain recognized on Starz available-for-sale securities | $ 20 | $ 0 | $ 20 | $ 0 | |||
Starz | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Issuance of common shares related to investments, shares | 4,967,695 | ||||||
Starz Series A Common Stock | Starz | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Shares received in exchange (in shares) | 2,118,038 | ||||||
Starz Series B Common Stock | Starz | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Shares received in exchange (in shares) | 2,590,597 | ||||||
Starz | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Fair value | $ 179 | ||||||
Cost basis | $ 159 | ||||||
Gain recognized on Starz available-for-sale securities | $ 20 | $ 20 |
Investments (Cost Method Invest
Investments (Cost Method Investments) (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Feb. 28, 2015 | Jul. 31, 2014 | Dec. 31, 2016 | |
Telltale | |||
Schedule of Cost-method Investments [Line Items] | |||
Cost method investments, amount invested | $ 40 | ||
Payments to acquire cost method investments | $ 28 | ||
Shares issued to purchase cost method investment (in shares) | 361,229 | ||
Value of shares issued to purchase cost method investment | $ 12 | ||
Cost method investments, ownership percentage | 14.00% | ||
Next Games | |||
Schedule of Cost-method Investments [Line Items] | |||
Payments to acquire cost method investments | $ 2 |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 7 | $ 1 | $ 8 | $ 2 |
Estimated remaining amortization expense, year ended March 31, 2017 | 27 | 27 | ||
Estimated amortization expense, year ended March 31, 2018 | 106 | 106 | ||
Estimated amortization expense, year ended March 31, 2019 | 106 | 106 | ||
Estimated amortization expense, year ended March 31, 2020 | 106 | 106 | ||
Estimated amortization expense, year ended March 31, 2021 | $ 106 | $ 106 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets (Goodwill) (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Balance as of March 31, 2016 | $ 535 |
Starz Merger | 2,199 |
Balance as of December 31, 2016 | 2,734 |
Motion Pictures | |
Goodwill [Roll Forward] | |
Balance as of March 31, 2016 | 294 |
Starz Merger | 68 |
Balance as of December 31, 2016 | 362 |
Television Production | |
Goodwill [Roll Forward] | |
Balance as of March 31, 2016 | 241 |
Starz Merger | 0 |
Balance as of December 31, 2016 | 241 |
Media Networks | |
Goodwill [Roll Forward] | |
Balance as of March 31, 2016 | 0 |
Starz Merger | 2,131 |
Balance as of December 31, 2016 | $ 2,131 |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets (Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,790 | $ 18 |
Accumulated Amortization | 16 | 7 |
Net Carrying Amount | 1,774 | 11 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,771 | 0 |
Accumulated Amortization | 7 | 0 |
Net Carrying Amount | 1,764 | 0 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9 | 9 |
Accumulated Amortization | 7 | 7 |
Net Carrying Amount | 2 | 2 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10 | 9 |
Accumulated Amortization | 2 | 0 |
Net Carrying Amount | $ 8 | $ 9 |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets (Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Tradenames | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets not subject to amortization | $ 250 | $ 0 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 08, 2016 | Mar. 31, 2016 |
Debt Instrument [Line Items] | |||
Corporate debt | $ 3,520 | $ 786 | |
Convertible senior subordinated notes | 102 | 102 | |
Capital lease obligations | 59 | 0 | |
Total debt | 3,681 | 888 | |
Unamortized discount & debt issuance costs | (106) | (23) | |
Total debt, net | 3,575 | 865 | |
Less current portion | (118) | (40) | |
Non-current portion of corporate debt | 3,457 | 825 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Corporate debt | 0 | 161 | |
Total debt | 0 | ||
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 59 | ||
Convertible Senior Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Corporate debt | 102 | 102 | |
Less current portion | (118) | (40) | |
Non-current portion of corporate debt | 3,457 | 825 | |
Term Loan A Facility | Term Loan | |||
Debt Instrument [Line Items] | |||
Corporate debt | 1,000 | 0 | |
Total debt | 1,000 | ||
Term Loan B Facility | Term Loan | |||
Debt Instrument [Line Items] | |||
Corporate debt | 2,000 | 0 | |
Total debt | 2,000 | ||
5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Corporate debt | 520 | 0 | |
Total debt | $ 520 | ||
Coupon rate | 5.875% | ||
5.25% Senior Notes | Senior Secured Second-Priority Notes | |||
Debt Instrument [Line Items] | |||
Corporate debt | $ 0 | $ 225 | $ 225 |
Coupon rate | 5.25% | 5.25% | |
Term Loan Due 2022 | Term Loan | |||
Debt Instrument [Line Items] | |||
Corporate debt | $ 0 | $ 400 | $ 400 |
Coupon rate | 5.00% |
Debt (Schedule of Debt Maturiti
Debt (Schedule of Debt Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 08, 2016 | Mar. 31, 2016 |
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Year Ended March 31, 2017 | $ 61 | ||
Year Ended March 31, 2018 | 76 | ||
Year Ended March 31, 2019 | 141 | ||
Year Ended March 31, 2020 | 101 | ||
Year Ended March 31, 2021 | 123 | ||
Thereafter | 3,179 | ||
Total debt | 3,681 | $ 888 | |
Less aggregate unamortized discount & debt issuance costs | (106) | (23) | |
Total debt, net | 3,575 | $ 865 | |
Revolving Credit Facility | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Year Ended March 31, 2017 | 0 | ||
Year Ended March 31, 2018 | 0 | ||
Year Ended March 31, 2019 | 0 | ||
Year Ended March 31, 2020 | 0 | ||
Year Ended March 31, 2021 | 0 | ||
Thereafter | 0 | ||
Total debt | 0 | ||
Capital Lease Obligations [Member] | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Year Ended March 31, 2017 | 1 | ||
Year Ended March 31, 2018 | 6 | ||
Year Ended March 31, 2019 | 6 | ||
Year Ended March 31, 2020 | 4 | ||
Year Ended March 31, 2021 | 3 | ||
Thereafter | 39 | ||
Total debt | 59 | ||
Term Loan A Facility | Term Loan | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Year Ended March 31, 2017 | 13 | ||
Year Ended March 31, 2018 | 50 | ||
Year Ended March 31, 2019 | 55 | ||
Year Ended March 31, 2020 | 77 | ||
Year Ended March 31, 2021 | 100 | ||
Thereafter | 705 | ||
Total debt | 1,000 | ||
Term Loan B Facility | Term Loan | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Year Ended March 31, 2017 | 5 | ||
Year Ended March 31, 2018 | 20 | ||
Year Ended March 31, 2019 | 20 | ||
Year Ended March 31, 2020 | 20 | ||
Year Ended March 31, 2021 | 20 | ||
Thereafter | 1,915 | ||
Total debt | 2,000 | ||
5.875% Senior Notes | Senior Notes | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Year Ended March 31, 2017 | 0 | ||
Year Ended March 31, 2018 | 0 | ||
Year Ended March 31, 2019 | 0 | ||
Year Ended March 31, 2020 | 0 | ||
Year Ended March 31, 2021 | 0 | ||
Thereafter | 520 | ||
Total debt | $ 520 | ||
Coupon rate | 5.875% | ||
5.25% Senior Notes | Senior Secured Second-Priority Notes | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Coupon rate | 5.25% | 5.25% | |
Term Loan Due 2022 | Term Loan | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Coupon rate | 5.00% | ||
January 2012 Notes | Convertible Senior Subordinated Notes | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Year Ended March 31, 2017 | $ 42 | ||
Year Ended March 31, 2018 | 0 | ||
Year Ended March 31, 2019 | 0 | ||
Year Ended March 31, 2020 | 0 | ||
Year Ended March 31, 2021 | 0 | ||
Thereafter | 0 | ||
Total debt | $ 42 | ||
Coupon rate | 4.00% | ||
April 2013 Notes | Convertible Senior Subordinated Notes | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Year Ended March 31, 2017 | $ 0 | ||
Year Ended March 31, 2018 | 0 | ||
Year Ended March 31, 2019 | 60 | ||
Year Ended March 31, 2020 | 0 | ||
Year Ended March 31, 2021 | 0 | ||
Thereafter | 0 | ||
Total debt | $ 60 | ||
Coupon rate | 1.25% |
Debt (Narrative - Senior Credit
Debt (Narrative - Senior Credit Facilities) (Details) $ in Millions | 9 Months Ended | |||
Dec. 31, 2016USD ($)reduction | Dec. 08, 2016USD ($) | Dec. 07, 2016USD ($) | Mar. 31, 2016 | |
Line of Credit Facility [Abstract] | ||||
Term loan B facility, initial issuance price, percentage | 99.50% | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Abstract] | ||||
Revolving credit facility, maximum borrowing capacity | $ 1,000 | $ 1,000 | $ 800 | |
Debt instrument, term | 5 years | |||
Revolving credit facility, available amount | $ 1,000 | |||
Number of possible reductions in margin | reduction | 2 | |||
Effective interest rate | 3.19% | 2.94% | ||
Change in control, trigger percentage | 50.00% | |||
Letter of Credit | ||||
Line of Credit Facility [Abstract] | ||||
Letters of credit outstanding, amount | $ 0 | |||
Minimum | Revolving Credit Facility | ||||
Line of Credit Facility [Abstract] | ||||
Revolving credit facility, commitment fee annual percentage | 0.25% | |||
Maximum | Revolving Credit Facility | ||||
Line of Credit Facility [Abstract] | ||||
Revolving credit facility, commitment fee annual percentage | 0.375% | |||
Base Rate | Revolving Credit Facility | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 1.50% | |||
LIBOR | Revolving Credit Facility | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 2.50% | |||
Potential reduction in interest rate if certain leverage ratios are met, total | 0.50% | |||
Potential reduction in interest rate if certain leverage ratios are met, per reduction | 0.25% | |||
Term Loan A Facility | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Principal amount issued | 1,000 | |||
Debt instrument, term | 5 years | |||
Number of possible reductions in margin | reduction | 2 | |||
Effective interest rate | 3.19% | |||
Quarterly principal payment percent, year one | 1.25% | |||
Quarterly principal payment percent, year two | 1.25% | |||
Quarterly principal payment percent, year three | 1.75% | |||
Quarterly principal payment percent, year four | 2.50% | |||
Quarterly principal payment percent, year five | 2.50% | |||
Term Loan A Facility | Base Rate | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 1.50% | |||
Term Loan A Facility | LIBOR | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 2.50% | |||
Potential reduction in interest rate if certain leverage ratios are met, total | 0.50% | |||
Potential reduction in interest rate if certain leverage ratios are met, per reduction | 0.25% | |||
Term Loan B Facility | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Principal amount issued | $ 2,000 | |||
Debt instrument, term | 7 years | |||
Effective interest rate | 3.75% | |||
Quarterly principal payment percent | 0.25% | |||
Prepayment premium percent | 1.00% | |||
Term Loan B Facility | Base Rate | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 2.00% | |||
Term Loan B Facility | LIBOR | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 3.00% | |||
Term Loan B Facility | LIBOR | Minimum | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Coupon rate | 0.75% |
Debt (Narrative - 5.875% Senior
Debt (Narrative - 5.875% Senior Notes) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Dec. 31, 2016 | Oct. 27, 2016 | Mar. 31, 2016 | |
Debt Instrument [Line Items] | |||
Principal amount of debt outstanding | $ 3,520 | $ 786 | |
5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Coupon rate | 5.875% | ||
Principal amount issued | $ 520 | ||
Principal amount of debt outstanding | $ 520 | $ 0 | |
Debt instrument redemption premium percentage, as a percentage of principal amount prepaid or redeemed | 1.00% | ||
Prior to November 1, 2019 | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 100.00% | ||
On or after November 1, 2019 | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 104.406% | ||
On or after November 1, 2020 | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 102.938% | ||
On or after November 1, 2021 | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 101.439% | ||
On or after November 1, 2022 | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 100.00% | ||
Change in Control | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 101.00% | ||
Certain Asset Disposition | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 100.00% |
Debt (Narrative - Debt Redempti
Debt (Narrative - Debt Redemptions and Repayments) (Details) - USD ($) $ in Millions | Dec. 08, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 07, 2016 | Mar. 31, 2016 |
Debt Instrument [Line Items] | |||||||
Principal amount of debt outstanding | $ 3,520 | $ 3,520 | $ 786 | ||||
Loss on extinguishment of debt | $ 28 | $ 0 | 28 | $ 0 | |||
Starz Merger Financing | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 3 | ||||||
Senior Secured Second-Priority Notes | 5.25% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Coupon rate | 5.25% | 5.25% | 5.25% | ||||
Prepayment premium | $ 15 | ||||||
Principal amount of debt outstanding | 225 | $ 0 | $ 0 | $ 225 | |||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding obligations | 241 | ||||||
Revolving credit facility, maximum borrowing capacity | $ 1,000 | $ 1,000 | $ 1,000 | $ 800 | |||
Effective interest rate | 3.19% | 3.19% | 2.94% | ||||
Principal amount of debt outstanding | $ 0 | $ 0 | $ 161 | ||||
Debt instrument, term | 5 years | ||||||
Revolving Credit Facility | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable interest rate | 1.50% | ||||||
Revolving Credit Facility | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable interest rate | 2.50% | ||||||
Term Loan | Term Loan Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Coupon rate | 5.00% | ||||||
Prepayment premium | $ 8 | ||||||
Principal amount of debt outstanding | $ 400 | $ 0 | $ 0 | $ 400 | |||
Debt instrument, term | 7 years | ||||||
Debt instrument redemption premium percentage, as a percentage of principal amount prepaid or redeemed | 2.00% | ||||||
Senior Notes | Starz Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment premium | $ 8 | ||||||
Principal amount of debt outstanding | 675 | ||||||
Starz | Starz Merger Financing | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from revolving credit facility used to finance a portion of Starz merger consideration | 50 | ||||||
Starz | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding obligations | $ 255 | ||||||
Revolving credit facility, maximum borrowing capacity | $ 1,000 |
Debt (Schedule of Debt Repaymen
Debt (Schedule of Debt Repayments and Redemptions) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2016 | |
Debt Instrument, Redemption [Line Items] | ||
Previously incurred unamortized net discount/premium and unamortized debt issuance costs of redeemed debt | $ 1 | $ 0 |
Senior Secured Second-Priority Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Total debt issuance and redemption costs | 128 | |
Senior Secured Second-Priority Notes | Term Loan Due 2022 & 5.25% Senior Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Early redemption/ call premium on redeemed debt and other fees paid to creditors | 23 | |
Previously incurred unamortized net discount/premium and unamortized debt issuance costs of redeemed debt | 13 | |
Total costs associated with redeemed debt | 36 | |
New costs incurred to issue the 5.875% Senior Notes, Term Loan A and Term Loan B | 92 | |
Revolving Credit Facility | ||
Debt Instrument, Redemption [Line Items] | ||
Previously incurred unamortized net discount/premium and unamortized debt issuance costs of redeemed debt | 3 | |
New costs incurred to issue the new revolving credit facility | 20 | |
Total debt issuance and redemption costs | 23 | |
Debt Issuance Costs Call Premium and Unamortized Discount | Senior Secured Second-Priority Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Total debt issuance and redemption costs | 104 | |
Debt Issuance Costs Call Premium and Unamortized Discount | Senior Secured Second-Priority Notes | Term Loan Due 2022 & 5.25% Senior Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Early redemption/ call premium on redeemed debt and other fees paid to creditors | 11 | |
Previously incurred unamortized net discount/premium and unamortized debt issuance costs of redeemed debt | 9 | |
Total costs associated with redeemed debt | 20 | |
New costs incurred to issue the 5.875% Senior Notes, Term Loan A and Term Loan B | 84 | |
Debt Issuance Costs Call Premium and Unamortized Discount | Revolving Credit Facility | ||
Debt Instrument, Redemption [Line Items] | ||
Previously incurred unamortized net discount/premium and unamortized debt issuance costs of redeemed debt | 2 | |
New costs incurred to issue the new revolving credit facility | 20 | |
Total debt issuance and redemption costs | 22 | |
Loss on Extinguishment of Debt | Senior Secured Second-Priority Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Total debt issuance and redemption costs | 24 | |
Loss on Extinguishment of Debt | Senior Secured Second-Priority Notes | Term Loan Due 2022 & 5.25% Senior Notes | ||
Debt Instrument, Redemption [Line Items] | ||
Early redemption/ call premium on redeemed debt and other fees paid to creditors | 12 | |
Previously incurred unamortized net discount/premium and unamortized debt issuance costs of redeemed debt | 4 | |
Total costs associated with redeemed debt | 16 | |
New costs incurred to issue the 5.875% Senior Notes, Term Loan A and Term Loan B | 8 | |
Loss on Extinguishment of Debt | Revolving Credit Facility | ||
Debt Instrument, Redemption [Line Items] | ||
Previously incurred unamortized net discount/premium and unamortized debt issuance costs of redeemed debt | 1 | |
New costs incurred to issue the new revolving credit facility | 0 | |
Total debt issuance and redemption costs | $ 1 |
Debt (Summary of Loss on Exting
Debt (Summary of Loss on Extinguishment of Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Extinguishment of Debt [Line Items] | ||||
Loss on extinguishment of debt | $ 28 | $ 0 | $ 28 | $ 0 |
Revolving Credit Facility | ||||
Extinguishment of Debt [Line Items] | ||||
Loss on extinguishment of debt | 1 | |||
Term Loan Due 2022 & 5.25% Senior Notes | ||||
Extinguishment of Debt [Line Items] | ||||
Loss on extinguishment of debt | 24 | |||
Starz credit facility & Starz Senior Notes | ||||
Extinguishment of Debt [Line Items] | ||||
Loss on extinguishment of debt | $ 3 |
Debt (Schedule of Convertible S
Debt (Schedule of Convertible Senior Subordinated Notes) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Debt Instrument [Line Items] | ||
Principal amount of debt outstanding | $ 3,520 | $ 786 |
Unamortized discount & debt issuance costs | (1) | 0 |
Convertible Senior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Principal amount of debt outstanding | 102 | 102 |
Unamortized discount & debt issuance costs | 0 | (2) |
Net carrying amount | 102 | 100 |
January 2012 Notes | Convertible Senior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Principal amount of debt outstanding | 42 | 42 |
Unamortized discount & debt issuance costs | 0 | (2) |
Net carrying amount | $ 42 | 40 |
Coupon rate | 4.00% | |
Conversion price per share (in usd per share) | $ 10.21 | |
April 2013 Notes | Convertible Senior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Principal amount of debt outstanding | $ 60 | 60 |
Unamortized discount & debt issuance costs | 0 | 0 |
Net carrying amount | $ 60 | $ 60 |
Coupon rate | 1.25% | |
Conversion price per share (in usd per share) | $ 29.19 |
Debt (Narrative - Convertible S
Debt (Narrative - Convertible Senior Subordinated Notes) (Details) - Convertible Senior Subordinated Notes - USD ($) $ in Millions | Dec. 31, 2016 | Apr. 30, 2013 | Jan. 31, 2012 |
January 2012 Notes | |||
Debt Instrument [Line Items] | |||
Coupon rate | 4.00% | ||
Principal amount of notes | $ 45 | ||
Equity component | $ 10 | ||
Effective interest rate of liability component | 9.56% | ||
April 2013 Notes | |||
Debt Instrument [Line Items] | |||
Coupon rate | 1.25% | ||
Principal amount of notes | $ 60 |
Debt (Conversions of Convertibl
Debt (Conversions of Convertible Senior Subordinated Notes) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Principal amount converted | $ 0 | $ 16 |
Convertible Senior Subordinated Notes | April 2009 Notes | ||
Debt Instrument [Line Items] | ||
Principal amount converted | $ 16 | |
Common shares issued upon conversion (in shares) | 2 | |
Weighted average conversion price per share (in usd per share) | $ 8.15 | |
Coupon rate | 3.625% |
Debt (Narrative - Capital Lease
Debt (Narrative - Capital Lease Obligations) (Details) | 9 Months Ended |
Dec. 31, 2016 | |
Debt Instrument [Line Items] | |
Capital leases, period of lease agreement | 10 years |
Capital lease agreement, imputed annual interest rate | 6.40% |
Minimum | |
Debt Instrument [Line Items] | |
Capital lease agreement, imputed annual interest rate | 5.50% |
Maximum | |
Debt Instrument [Line Items] | |
Capital lease agreement, imputed annual interest rate | 7.00% |
Participations and Residuals (N
Participations and Residuals (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2016 | |
Participations And Residuals [abstract] | ||
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 | $ 131 | $ 61 |
Film Obligations and Producti79
Film Obligations and Production Loans (Narrative) (Details) - Production Loans | Dec. 31, 2016 |
Minimum | |
Interest rates on production loans | 3.69% |
Maximum | |
Interest rates on production loans | 3.98% |
Film Obligations and Producti80
Film Obligations and Production Loans (Film Obligations And Production Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Film Obligations And Production Loans [Abstract] | ||
Film obligations | $ 122 | $ 25 |
Production loans | 298 | 690 |
Total film obligations and production loans | 420 | 715 |
Unamortized discount & debt issuance costs | (1) | 0 |
Total film obligations and production loans, net | 419 | 715 |
Less current portion | (257) | (663) |
Total non-current film obligations and production loans | $ 162 | $ 52 |
Film Obligations and Producti81
Film Obligations and Production Loans (Future Annual Repayment of Film Obligations And Production Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Future Annual Repayment Of Film Obligations And Production Loans | ||
Three Months Ended March 31, 2017 | $ 98 | |
Year Ended March 31, 2018 | 258 | |
Year Ended March 31, 2019 | 40 | |
Year Ended March 31, 2020 | 14 | |
Year Ended March 31, 2021 | 4 | |
Thereafter | 7 | |
Total | 421 | |
Less imputed interest on film obligations and debt issuance costs on production loans | (2) | |
Total film obligations and production loans, net | 419 | $ 715 |
Film Obligations | ||
Future Annual Repayment Of Film Obligations And Production Loans | ||
Three Months Ended March 31, 2017 | 61 | |
Year Ended March 31, 2018 | 26 | |
Year Ended March 31, 2019 | 11 | |
Year Ended March 31, 2020 | 14 | |
Year Ended March 31, 2021 | 4 | |
Thereafter | 7 | |
Total | 123 | |
Production Loans | ||
Future Annual Repayment Of Film Obligations And Production Loans | ||
Three Months Ended March 31, 2017 | 37 | |
Year Ended March 31, 2018 | 232 | |
Year Ended March 31, 2019 | 29 | |
Year Ended March 31, 2020 | 0 | |
Year Ended March 31, 2021 | 0 | |
Thereafter | 0 | |
Total | $ 298 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Required to be Carried at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 | |
Assets: | |||
Forward exchange contracts | $ 0 | $ 9 | |
Liabilities: | |||
Forward exchange contracts | (2) | (1) | |
Total | (2) | 132 | |
Level 1 | |||
Assets: | |||
Forward exchange contracts | 0 | 0 | |
Liabilities: | |||
Forward exchange contracts | 0 | 0 | |
Total | 0 | 56 | |
Level 2 | |||
Assets: | |||
Forward exchange contracts | 0 | 9 | |
Liabilities: | |||
Forward exchange contracts | (2) | (1) | |
Total | (2) | 76 | |
Starz | Starz Series A Common Stock | |||
Assets: | |||
Available-for-sale securities | [1] | 0 | 56 |
Starz | Starz Series A Common Stock | Level 1 | |||
Assets: | |||
Available-for-sale securities | [1] | 0 | 56 |
Starz | Starz Series A Common Stock | Level 2 | |||
Assets: | |||
Available-for-sale securities | [1] | 0 | 0 |
Starz | Starz Series B Common Stock | |||
Assets: | |||
Available-for-sale securities | [1] | 0 | 68 |
Starz | Starz Series B Common Stock | Level 1 | |||
Assets: | |||
Available-for-sale securities | [1] | 0 | 0 |
Starz | Starz Series B Common Stock | Level 2 | |||
Assets: | |||
Available-for-sale securities | [1] | $ 0 | $ 68 |
[1] | At March 31, 2016, the Company classified the Series A common stock of Starz within Level 1 of the fair value hierarchy as the valuation inputs were based on quoted prices in active markets. The Series B common stock of Starz was considered a Level 2 security because the quoted market prices were based on infrequent transactions. Therefore, the fair value of the Series B common stock, which was convertible, at the holder’s option, into Series A common stock of Starz was based on the quoted market price of the Series A common stock, which was an equivalent security other than for the voting rights. |
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 Millions | Dec. 31, 2016 | Dec. 08, 2016 | Mar. 31, 2016 |
Senior Notes | 5.875% Senior Notes | |||
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 | 5.875% | ||
Convertible Senior Subordinated Notes | January 2012 Notes | |||
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 | April 2013 Notes | |||
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 | 5.25% Senior Notes | |||
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 | Term Loan | |||
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 | |||
Assets: | |||
Investments in Pop's Mandatorily Redeemable Preferred Stock Units | $ 94 | $ 99 | |
Liabilities: | |||
Total liabilities, fair value disclosure | 3,817 | 1,399 | |
Carrying Value | Senior Notes | 5.875% Senior Notes | |||
Liabilities: | |||
Senior Notes, fair value disclosure | 498 | 0 | |
Carrying Value | Convertible Senior Subordinated Notes | January 2012 Notes | |||
Liabilities: | |||
Convertible notes, fair value disclosures | 42 | 40 | |
Carrying Value | Convertible Senior Subordinated Notes | April 2013 Notes | |||
Liabilities: | |||
Convertible notes, fair value disclosures | 60 | 60 | |
Carrying Value | Production Loans | Production Loans | |||
Liabilities: | |||
Loans, fair value disclosure | 298 | 690 | |
Carrying Value | Senior Secured Second-Priority Notes | 5.25% Senior Notes | |||
Liabilities: | |||
Senior Notes, fair value disclosure | 0 | 221 | |
Carrying Value | Term Loan | Term Loan A Facility | |||
Liabilities: | |||
Loans, fair value disclosure | 975 | 0 | |
Carrying Value | Term Loan | Term Loan B Facility | |||
Liabilities: | |||
Loans, fair value disclosure | 1,944 | 0 | |
Carrying Value | Term Loan | Term Loan | |||
Liabilities: | |||
Loans, fair value disclosure | 0 | 388 | |
Fair Value | Fair Value (Level 3) | |||
Assets: | |||
Investments in Pop's Mandatorily Redeemable Preferred Stock Units | 115 | 115 | |
Fair Value | Fair Value (Level 2) | |||
Liabilities: | |||
Total liabilities, fair value disclosure | 3,940 | 1,417 | |
Fair Value | Fair Value (Level 2) | Senior Notes | 5.875% Senior Notes | |||
Liabilities: | |||
Senior Notes, fair value disclosure | 528 | 0 | |
Fair Value | Fair Value (Level 2) | Convertible Senior Subordinated Notes | January 2012 Notes | |||
Liabilities: | |||
Convertible notes, fair value disclosures | 43 | 41 | |
Fair Value | Fair Value (Level 2) | Convertible Senior Subordinated Notes | April 2013 Notes | |||
Liabilities: | |||
Convertible notes, fair value disclosures | 58 | 54 | |
Fair Value | Fair Value (Level 2) | Production Loans | Production Loans | |||
Liabilities: | |||
Loans, fair value disclosure | 298 | 690 | |
Fair Value | Fair Value (Level 2) | Senior Secured Second-Priority Notes | 5.25% Senior Notes | |||
Liabilities: | |||
Senior Notes, fair value disclosure | 0 | 230 | |
Fair Value | Fair Value (Level 2) | Term Loan | Term Loan A Facility | |||
Liabilities: | |||
Loans, fair value disclosure | 1,003 | 0 | |
Fair Value | Fair Value (Level 2) | Term Loan | Term Loan B Facility | |||
Liabilities: | |||
Loans, fair value disclosure | 2,010 | 0 | |
Fair Value | Fair Value (Level 2) | Term Loan | Term Loan | |||
Liabilities: | |||
Loans, fair value disclosure | $ 0 | $ 401 |
Redeemable Noncontrolling Int84
Redeemable Noncontrolling Interest (Narrative) (Details) - Pilgrim Media Group - USD ($) $ in Millions | Nov. 12, 2015 | Dec. 31, 2016 |
Redeemable Noncontrolling Interest [Line Items] | ||
Initial fair value of redeemable noncontrolling interest of Pilgrim Media Group | $ 90 | |
Redeemable noncontrolling interest, ownership percentage held by noncontrolling owner | 37.50% | |
Portion of noncontrolling interest redeemable after first term, five years after November 12, 2015 | 17.50% | |
First Put/ Call Option, Term | 5 years | |
Second Put/ Call Option, Term | 7 years |
Redeemable Noncontrolling Int85
Redeemable Noncontrolling Interest (Changes In Redeemable Noncontrolling Interest) (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2016USD ($) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Beginning balance | $ 90 |
Net loss of Pilgrim Media Group attributable to noncontrolling interest | 0 |
Noncontrolling interest discount accretion | 4 |
Adjustments to redemption value | 6 |
Cash distributions | (6) |
Ending balance | $ 94 |
Net Income (Loss) Per Share (Ba
Net Income (Loss) Per Share (Basic) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Numerator: | |||||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (31) | $ 41 | $ (47) | $ 39 | |
Denominator: | |||||
Weighted average common shares outstanding (in shares) | [1] | 161.4 | 149.5 | 152.2 | 148.5 |
Basic net income (loss) per common share (in usd per share) | $ (0.19) | $ 0.27 | $ (0.31) | $ 0.26 | |
[1] | The weighted average common shares outstanding for the three and nine months ended December 31, 2016 do not include the equity portion of the merger consideration related to the dissenting Starz shareholders as discussed in Note 2 and Note 16. |
Net Income (Loss) Per Share (Di
Net Income (Loss) Per Share (Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Numerator: | |||||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (31) | $ 41 | $ (47) | $ 39 | |
Interest on convertible notes, net of tax | 0 | 1 | 0 | 1 | |
Numerator for diluted net income (loss) per common share | $ (31) | $ 42 | $ (47) | $ 40 | |
Denominator: | |||||
Weighted average common shares outstanding (in shares) | [1] | 161.4 | 149.5 | 152.2 | 148.5 |
Conversion of notes (in shares) | 0 | 6.1 | 0 | 2.1 | |
Share purchase options (in shares) | 0 | 3.4 | 0 | 3.4 | |
Restricted share units and restricted stock (in shares) | 0 | 0.4 | 0 | 0.4 | |
Adjusted weighted average common shares outstanding | 161.4 | 159.4 | 152.2 | 154.4 | |
Diluted net income (loss) per common share (in usd per share) | $ (0.19) | $ 0.26 | $ (0.31) | $ 0.26 | |
[1] | The weighted average common shares outstanding for the three and nine months ended December 31, 2016 do not include the equity portion of the merger consideration related to the dissenting Starz shareholders as discussed in Note 2 and Note 16. |
Net Income (Loss) Per Share (An
Net Income (Loss) Per Share (Anti-Dilutive Shares Issuable) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Anti-dilutive shares issuable [Line Items] | |||||
Anti-dilutive shares issuable (in shares) | 14.1 | 3.8 | 10.2 | 7.9 | |
Conversion of Notes | |||||
Anti-dilutive shares issuable [Line Items] | |||||
Anti-dilutive shares issuable (in shares) | 6.2 | 0 | 6.1 | 4 | |
Share purchase options | |||||
Anti-dilutive shares issuable [Line Items] | |||||
Anti-dilutive shares issuable (in shares) | 2.7 | 3.2 | 2.3 | 3.4 | |
Restricted Share Units (RSUs) | |||||
Anti-dilutive shares issuable [Line Items] | |||||
Anti-dilutive shares issuable (in shares) | 0.2 | 0.1 | 0.1 | 0.1 | |
Other Issuable Shares | |||||
Anti-dilutive shares issuable [Line Items] | |||||
Anti-dilutive shares issuable (in shares) | [1] | 5 | 0.5 | 1.7 | 0.4 |
[1] | For the three and nine months ended December 31, 2016, includes the impact of the equity portion of the merger consideration related to the dissenting Starz shareholders as discussed in Note 2 and Note 16. |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) $ in Thousands | Dec. 08, 2016USD ($)installmentshares | Oct. 03, 2016shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Mar. 31, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized common shares (in shares) | 500,000,000 | ||||
Excess tax benefits on equity-based compensation awards | $ | $ 0 | $ 0 | |||
Number of annual installments | installment | 3 | ||||
Annual installment payment, equity or cash, amount | $ | $ 16,670 | ||||
Value of agreement | $ | $ 50,000 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost | $ | $ 72,000 | ||||
Total unrecognized compensation cost, weighted average period for recognition | 2 years 7 months 9 days | ||||
Restricted Share Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost | $ | $ 44,000 | ||||
Total unrecognized compensation cost, weighted average period for recognition | 2 years 2 months 13 days | ||||
Performance Incentive Plan of 2012 | |||||
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) | 31,600,000 | ||||
Increase in authorized common shares (in shares) | 4,000,000 | ||||
Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reclassification of common shares, shares | (148,423,620) | ||||
Class A Voting Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized common shares (in shares) | 500,000,000 | 0 | |||
Class A Voting Shares | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reclassification of common shares, shares | 74,212,042 | ||||
Class B Non-Voting Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized common shares (in shares) | 500,000,000 | 0 | |||
Class B Non-Voting Shares | Starz Plan | |||||
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) | 30,300,000 | ||||
Class B Non-Voting Shares | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reclassification of common shares, shares | 74,212,042 | ||||
Starz | Class A Voting Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reclassification of common shares, shares | 74,200,000 | ||||
Starz | Class A Voting Shares | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion of Stock, Shares Issued | 0.5 | ||||
Starz | Class B Non-Voting Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reclassification of common shares, shares | 74,200,000 | ||||
Starz | Class B Non-Voting Shares | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion of Stock, Shares Issued | 0.5 | ||||
Starz Dissenting Shareholders | Starz | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase price, common shares issued or issuable (in shares) | 17,000,000 | ||||
Outstanding equity interests (in shares) | 25,000,000 |
Capital Stock (Common Shares Re
Capital Stock (Common Shares Reserved for Future Issuance) (Details) - $ / shares shares in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 58 | 25 |
Stock Options | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 36 | 15 |
Stock options outstanding, average exercise price (in usd per share) | $ 24.55 | |
Restricted Stock and Restricted Share Units - Unvested | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 3 | 2 |
Convertible Senior Subordinated Notes | January 2012 Notes | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 4 | 4 |
Conversion price per share (in usd per share) | $ 10.21 | $ 10.26 |
Convertible Senior Subordinated Notes | April 2013 Notes | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 2 | 2 |
Conversion price per share (in usd per share) | $ 29.19 | $ 29.32 |
January 2012 Notes | Convertible Senior Subordinated Notes | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Conversion price per share (in usd per share) | $ 10.21 | |
Coupon rate | 4.00% | |
April 2013 Notes | Convertible Senior Subordinated Notes | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Conversion price per share (in usd per share) | $ 29.19 | |
Coupon rate | 1.25% | |
Lionsgate Plan | Common shares available for future issuance under plan | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 1 | 2 |
Starz Plan | Common shares available for future issuance under plan | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 12 | 0 |
Class A Voting Shares | Stock Options | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Stock options outstanding, average exercise price (in usd per share) | $ 25.93 | |
Class B Non-Voting Shares | Stock Options | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Stock options outstanding, average exercise price (in usd per share) | $ 18.82 |
Capital Stock (Share-Based Comp
Capital Stock (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-Based Compensation Expense [Line Items] | |||||
Share-based compensation expense | $ 22 | $ 13 | $ 52 | $ 48 | |
Total share-based compensation expense | 29 | 13 | 74 | 48 | |
Tax impact | [1] | (10) | (5) | (26) | (17) |
Reduction in net income | 19 | 8 | 48 | 31 | |
Stock Options | |||||
Share-Based Compensation Expense [Line Items] | |||||
Share-based compensation expense | 13 | 6 | 29 | 26 | |
Restricted Share Units and Other Share-based Compensation | |||||
Share-Based Compensation Expense [Line Items] | |||||
Share-based compensation expense | 9 | 7 | 23 | 21 | |
Share Appreciation Rights (SARs) | |||||
Share-Based Compensation Expense [Line Items] | |||||
Share-based compensation expense | 0 | 0 | 0 | 1 | |
Equity Awards | |||||
Share-Based Compensation Expense [Line Items] | |||||
Immediately vested RSU's issued under annual bonus program and impact of accelerated vesting on equity awards | [2] | 0 | 0 | 2 | 0 |
Annual Bonus Plan | Restricted Share Units (RSUs) | |||||
Share-Based Compensation Expense [Line Items] | |||||
Immediately vested RSU's issued under annual bonus program and impact of accelerated vesting on equity awards | [3] | $ 7 | $ 0 | $ 20 | $ 0 |
[1] | Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements. | ||||
[2] | Represents the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. | ||||
[3] | Represents the impact of immediately vested stock awards granted as part of our annual bonus program, and issued in lieu of cash bonuses. |
Capital Stock (Stock Option and
Capital Stock (Stock Option and Restricted Share Unit Activity) (Details) - $ / shares | Dec. 08, 2016 | Dec. 07, 2016 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at March 31, 2016 (in shares) | 19,393,516 | 16,093,896 |
Granted (in shares) | 5,997,539 | |
Options exercised (in shares) | (2,145,852) | |
Forfeited or expired (in shares) | (552,067) | |
Reclassification of common stock to newly issued Class A common stock and Class B common stock (in shares) | (19,393,516) | |
Outstanding (in shares) | 0 | 19,393,516 |
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) | $ 24.80 | $ 23.83 |
Granted, weighted average exercise price (in usd per share) | 22.73 | |
Options exercised, weighted average exercise price (in usd per share) | 9.78 | |
Forfeited or expired, weighted average exercise price (in usd per share) | 32.39 | |
Outstanding, weighted average exercise price (in usd per share) | $ 24.80 | |
Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at March 31, 2016 (in shares) | 1,230,564 | 1,647,432 |
Granted (in shares) | 1,537,632 | |
RSUs vested (in shares) | (1,789,908) | |
Forfeited or expired (in shares) | (164,592) | |
Reclassification of common stock to newly issued Class A common stock and Class B common stock (in shares) | (1,230,564) | |
Outstanding (in shares) | 0 | 1,230,564 |
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) | $ 28.18 | $ 31.74 |
Granted, weighted average grant date fair value (in usd per share) | 20.89 | |
RSUs vested, weighted average grant-date fair value (in usd per share) | 25.01 | |
Forfeited or expired, weighted average grant-date fair value (in usd per share) | 30.18 | |
Outstanding, weighted average grant-date fair value (in usd per share) | $ 28.18 |
Capital Stock (Summary of Recla
Capital Stock (Summary of Reclassification of Awards) (Details) - $ / shares | Dec. 08, 2016 | Dec. 31, 2016 | Dec. 07, 2016 | Mar. 31, 2016 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options exercised (in shares) | (2,145,852) | |||
Forfeited or expired (in shares) | (552,067) | |||
Outstanding at December 31, 2016 | 0 | 19,393,516 | 16,093,896 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Forfeited or expired, weighted average exercise price (in usd per share) | $ 32.39 | |||
Options exercised, weighted average exercise price (in usd per share) | 9.78 | |||
Granted, weighted average exercise price (in usd per share) | 22.73 | |||
Outstanding at December 31, 2016 | $ 24.80 | $ 23.83 | ||
Lions Gate Replacement Awards | Stock Options | Class A Voting Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Issuance of Class A and Class B common stock upon reclassification of common stock (in shares) | 9,528,634 | |||
Issuance for Lions Gate replacement awards (in shares) | 0 | |||
Granted (in shares) | 4,913 | |||
Options exercised (in shares) | 0 | |||
Forfeited or expired (in shares) | (2,600) | |||
Outstanding at December 31, 2016 | 9,530,947 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Issuance of Class A and Class B common stock upon reclassification of common stock, weighted average exercise price (in usd per share) | $ 25.53 | |||
Issuance for Lions Gate replacement awards, weighted average exercise price (in usd per share) | $ 0 | |||
Forfeited or expired, weighted average exercise price (in usd per share) | 38.73 | |||
Options exercised, weighted average exercise price (in usd per share) | 0 | |||
Granted, weighted average exercise price (in usd per share) | 41.95 | |||
Outstanding at December 31, 2016 | $ 25.93 | |||
Lions Gate Replacement Awards | Stock Options | Class B Non-Voting Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Issuance of Class A and Class B common stock upon reclassification of common stock (in shares) | 9,528,634 | |||
Issuance for Lions Gate replacement awards (in shares) | 15,395,707 | |||
Granted (in shares) | 666,740 | |||
Options exercised (in shares) | (13,175) | |||
Forfeited or expired (in shares) | (17,823) | |||
Outstanding at December 31, 2016 | 25,560,083 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Issuance of Class A and Class B common stock upon reclassification of common stock, weighted average exercise price (in usd per share) | $ 24.68 | |||
Issuance for Lions Gate replacement awards, weighted average exercise price (in usd per share) | $ 14.68 | |||
Forfeited or expired, weighted average exercise price (in usd per share) | 26.57 | |||
Options exercised, weighted average exercise price (in usd per share) | 20.83 | |||
Granted, weighted average exercise price (in usd per share) | 25.38 | |||
Outstanding at December 31, 2016 | $ 18.82 | |||
Lions Gate Replacement Awards | Restricted Stock and Restricted Share Units (RSUs) | Class A Voting Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Issuance of Class A and Class B common stock upon reclassification of common stock (in shares) | 615,103 | |||
Issuance for Lions Gate replacement awards (in shares) | 0 | |||
Granted (in shares) | 2,916 | |||
Restricted stock or RSUs vested (in shares) | (8,419) | |||
Forfeited or expired (in shares) | (1,718) | |||
Outstanding at December 31, 2016 | 607,882 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Issuance of Class A and Class B common stock upon reclassification of common stock, weighted average exercise price (in usd per share) | $ 26.48 | |||
Issuance for Lions Gate replacement awards, weighted average exercise price (in usd per share) | $ 0 | |||
Granted, weighted average grant date fair value (in usd per share) | 26.40 | |||
Restricted stock or RSUs vested, weighted average grant-date fair value (in usd per share) | 26.92 | |||
Forfeited or expired, weighted average grant-date fair value (in usd per share) | 36.92 | |||
Outstanding at December 31, 2016 | $ 28.18 | |||
Lions Gate Replacement Awards | Restricted Stock and Restricted Share Units (RSUs) | Class B Non-Voting Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Issuance of Class A and Class B common stock upon reclassification of common stock (in shares) | 615,103 | |||
Issuance for Lions Gate replacement awards (in shares) | 1,861,342 | |||
Granted (in shares) | 109,790 | |||
Restricted stock or RSUs vested (in shares) | (259,198) | |||
Forfeited or expired (in shares) | (45,830) | |||
Outstanding at December 31, 2016 | 2,281,207 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Issuance of Class A and Class B common stock upon reclassification of common stock, weighted average exercise price (in usd per share) | $ 25.70 | |||
Issuance for Lions Gate replacement awards, weighted average exercise price (in usd per share) | $ 25.70 | |||
Granted, weighted average grant date fair value (in usd per share) | 25.45 | |||
Restricted stock or RSUs vested, weighted average grant-date fair value (in usd per share) | 25.74 | |||
Forfeited or expired, weighted average grant-date fair value (in usd per share) | 26.12 | |||
Outstanding at December 31, 2016 | $ 26.35 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit | $ 12 | $ 45 | $ 92 | $ 44 |
Restructuring and Other (Restru
Restructuring and Other (Restructuring and Other) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | $ 52 | $ 13 | $ 70 | $ 18 | |
Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | [1] | 22 | 0 | 26 | 0 |
Severance | Accounts Payable and Accrued Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected restructuring costs to be paid within one year | 21 | 21 | |||
Transaction related costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | [2] | 27 | 12 | 39 | 14 |
Pension withdrawal costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | [3] | 0 | 0 | 0 | 3 |
Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | 3 | 1 | 5 | 1 | |
Cash | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | [1] | 22 | 0 | 24 | 0 |
Accelerated vesting on equity awards | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | [1] | $ 0 | $ 0 | $ 2 | $ 0 |
[1] | Severance costs were primarily related to workforce reductions for redundancies in connection with the Starz Merger. Of the severance costs, $21 million is recorded as a liability and is expected to be paid within one-year from December 31, 2016. | ||||
[2] | Transaction related costs in the three and nine months ended December 31, 2016 represented primarily legal and professional fees, and other transaction related costs associated with the Starz Merger. Transaction related costs in the three and nine months ended December 31, 2015 represented professional fees associated with certain strategic transactions including, among others, the acquisition of a majority interest in Pilgrim Media Group and certain shareholder transactions. | ||||
[3] | Pension withdrawal costs in the nine months ended December 31, 2015 were related to an underfunded multi-employer pension plan in which the Company is no longer participating. |
Segment Information (Segment In
Segment Information (Segment Information By Business Unit) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Sep. 30, 2016segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable business segments | segment | 3 | 2 | |||
Segment revenues | $ 752 | $ 671 | $ 1,945 | $ 1,556 | |
Gross contribution | 150 | 67 | 251 | 205 | |
Segment general and administration | 41 | 26 | 111 | 78 | |
Segment profit (loss) | 109 | 41 | 140 | 127 | |
Reportable Segments | |||||
Segment Reporting Information [Line Items] | |||||
Segment profit (loss) | 109 | 41 | 140 | 127 | |
Reportable Segments | Motion Pictures | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 440 | 506 | 1,266 | 1,135 | |
Gross contribution | 77 | 51 | 153 | 157 | |
Segment general and administration | 26 | 18 | 74 | 60 | |
Segment profit (loss) | 51 | 33 | 79 | 97 | |
Reportable Segments | Television Production | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 229 | 165 | 595 | 421 | |
Gross contribution | 33 | 17 | 70 | 49 | |
Segment general and administration | 7 | 5 | 23 | 15 | |
Segment profit (loss) | 26 | 12 | 47 | 34 | |
Reportable Segments | Media Networks | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | 85 | 0 | 86 | 0 | |
Gross contribution | 41 | (1) | 29 | (1) | |
Segment general and administration | 8 | 3 | 14 | 3 | |
Segment profit (loss) | 33 | (4) | 15 | (4) | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Segment revenues | (2) | 0 | (2) | 0 | |
Gross contribution | (1) | 0 | (1) | 0 | |
Segment profit (loss) | $ (1) | $ 0 | $ (1) | $ 0 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Total Segment Profit To The Company's Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | |||||
Company’s total segment profit | $ 109 | $ 41 | $ 140 | $ 127 | |
Adjusted depreciation and amortization | [1] | (4) | (3) | (13) | (7) |
Restructuring and other | (52) | (13) | (70) | (18) | |
Adjusted share-based compensation expense | (22) | (13) | (52) | (48) | |
Operating loss | (7) | (9) | (88) | (4) | |
Interest expense | (27) | (14) | (58) | (40) | |
Interest and other income | 1 | 0 | 4 | 2 | |
Gain on Starz investment | 20 | 0 | 20 | 0 | |
Loss on extinguishment of debt | (28) | 0 | (28) | 0 | |
Equity interests income (loss) | (2) | 11 | 11 | 29 | |
Loss before income taxes | (43) | (12) | (139) | (13) | |
Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Company’s total segment profit | 109 | 41 | 140 | 127 | |
Corporate and reconciling items | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring and other | [2] | (52) | (13) | (70) | (18) |
Adjusted share-based compensation expense | [3] | (22) | (13) | (52) | (48) |
Purchase accounting and related adjustments | [4] | (13) | (4) | (25) | (4) |
Corporate and shared services | |||||
Segment Reporting Information [Line Items] | |||||
Corporate general and administrative expenses | $ (25) | $ (17) | $ (68) | $ (54) | |
[1] | Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in the acquisition of Starz and Pilgrim Media Group which are included in the purchase accounting and related adjustments line item above. | ||||
[2] | Restructuring and other includes restructuring and severance costs, certain transaction related costs, and certain unusual items, when applicable (see Note 14). | ||||
[3] | Adjusted share-based compensation expense represents share-based compensation excluding (i) immediately vested stock awards granted as part of our annual bonus program issued in lieu of cash bonuses, which are included in segment and corporate general and administrative expenses, and (ii) the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements, when included in restructuring and other expenses (see Note 12 and Note 14). | ||||
[4] | Purchase accounting and related adjustments represent the amortization of non-cash fair value adjustments to the assets and liabilities acquired in the acquisition of Starz and Pilgrim Media Group. The following sets forth the amounts included in each line item in the financial statements: |
Segment Information (Purchase A
Segment Information (Purchase Accounting and Related Adjustments) (Details) - Corporate and reconciling items - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Purchase accounting and related adjustments | [1] | $ 13 | $ 4 | $ 25 | $ 4 |
Direct operating | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Purchase accounting and related adjustments | 3 | 3 | 11 | 3 | |
General and administrative expense | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Purchase accounting and related adjustments | 1 | 1 | 4 | 1 | |
Depreciation and amortization expense | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Purchase accounting and related adjustments | $ 9 | $ 0 | $ 10 | $ 0 | |
[1] | Purchase accounting and related adjustments represent the amortization of non-cash fair value adjustments to the assets and liabilities acquired in the acquisition of Starz and Pilgrim Media Group. The following sets forth the amounts included in each line item in the financial statements: |
Segment Information (Segment Re
Segment Information (Segment Revenues By Media) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 752 | $ 671 | $ 1,945 | $ 1,556 |
Reportable Segments | Motion Pictures | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 440 | 506 | 1,266 | 1,135 |
Reportable Segments | Motion Pictures | Theatrical | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 87 | 183 | 197 | 232 |
Reportable Segments | Motion Pictures | Home Entertainment | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 167 | 126 | 467 | 389 |
Reportable Segments | Motion Pictures | Television | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 91 | 49 | 214 | 157 |
Reportable Segments | Motion Pictures | International | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 90 | 140 | 372 | 333 |
Reportable Segments | Motion Pictures | Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 5 | 8 | 16 | 24 |
Reportable Segments | Television Production | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 229 | 165 | 595 | 421 |
Reportable Segments | Television Production | Home Entertainment | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 23 | 16 | 33 | 36 |
Reportable Segments | Television Production | International | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 31 | 26 | 75 | 112 |
Reportable Segments | Television Production | Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 1 | 2 | 6 | 5 |
Reportable Segments | Television Production | Domestic Television | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 174 | 121 | 481 | 268 |
Reportable Segments | Media Networks | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 85 | 0 | 86 | 0 |
Reportable Segments | Media Networks | Starz Networks | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 83 | 0 | 83 | 0 |
Reportable Segments | Media Networks | Content And Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 1 | 0 | 1 | 0 |
Reportable Segments | Media Networks | Streaming Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 1 | 0 | 2 | 0 |
Intersegment Eliminations | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ (2) | $ 0 | $ (2) | $ 0 |
Segment Information (Reconci100
Segment Information (Reconciliation of Total Assets By Segment to Consolidated Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 9,380 | $ 3,834 | |
Operating segments | Motion Pictures | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,813 | 1,924 | |
Operating segments | Television Production | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,158 | 1,130 | |
Operating segments | Media Networks | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 5,359 | 0 | |
Other unallocated assets | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [1] | $ 1,050 | $ 780 |
[1] | Other unallocated assets primarily consist of cash, other assets and investments. |
Segment Information (Acquisitio
Segment Information (Acquisition of Investment in Films and Television Programs by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Acquisition of investment in films and television programs and program rights | $ 213 | $ 236 | $ 660 | $ 771 |
Reportable Segments | Motion Pictures | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition of investment in films and television programs and program rights | 76 | 140 | 267 | 504 |
Reportable Segments | Television Production | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition of investment in films and television programs and program rights | 106 | 96 | 345 | 267 |
Reportable Segments | Media Networks | ||||
Segment Reporting Information [Line Items] | ||||
Acquisition of investment in films and television programs and program rights | $ 31 | $ 0 | $ 48 | $ 0 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) | Jan. 25, 2017plaintiff | Dec. 08, 2016plaintiff | Aug. 30, 2016 |
Loss Contingencies [Line Items] | |||
Contingencies, putative class action complaints filed, number | 7 | ||
Petitions filed | 3 | ||
Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Additional petitions filed | 2 |
Consolidating Financial Info103
Consolidating Financial Information - Convertible Senior Subordinated Notes (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Mar. 31, 2016 | |
January 2012 Notes | Convertible Senior Subordinated Notes | |||
Consolidating Financial Information [Line Items] | |||
Coupon rate | 4.00% | ||
April 2013 Notes | Convertible Senior Subordinated Notes | |||
Consolidating Financial Information [Line Items] | |||
Coupon rate | 1.25% | ||
5.25% Senior Notes | Senior Secured Second-Priority Notes | |||
Consolidating Financial Information [Line Items] | |||
Coupon rate | 5.25% | 5.25% | |
Lions Gate Entertainment Corp. | Convertible Senior Subordinated Notes | |||
Consolidating Financial Information [Line Items] | |||
Deferred financing costs | $ 964 | ||
Lions Gate Entertainment Inc. | |||
Consolidating Financial Information [Line Items] | |||
Percentage ownership of LGEI, the issuer, by parent company guarantor | 100.00% |
Consolidating Financial Info104
Consolidating Financial Information - Convertible Senior Subordinated Notes (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Assets | ||||
Cash and cash equivalents | $ 595 | $ 58 | $ 88 | $ 103 |
Restricted cash | 3 | 3 | ||
Accounts receivable, net | 777 | 570 | ||
Program rights | 236 | 0 | ||
Other current assets | 259 | 237 | ||
Total current assets | 1,870 | 868 | ||
Investment in films and television programs and program rights, net | 1,816 | 1,458 | ||
Property and equipment, net | 168 | 43 | ||
Investments | 357 | 464 | ||
Intangible assets | 2,024 | 11 | ||
Goodwill | 2,734 | 535 | ||
Other assets | 405 | 321 | ||
Deferred tax assets | 6 | 134 | ||
Total assets | 9,380 | 3,834 | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Accounts payable and accrued liabilities | 531 | 355 | ||
Participations and residuals | 499 | 437 | ||
Film obligations and production loans | 257 | 663 | ||
Debt - short term portion | 118 | 40 | ||
Deferred revenue | 180 | 246 | ||
Total current liabilities | 1,585 | 1,741 | ||
Debt | 3,457 | 825 | ||
Participations and residuals | 304 | 170 | ||
Film obligations and production loans | 162 | 52 | ||
Other liabilities | 33 | 23 | ||
Dissenting shareholders' liability | 886 | 0 | ||
Deferred revenue | 76 | 82 | ||
Deferred tax liabilities | 461 | 0 | ||
Redeemable noncontrolling interest | 94 | 91 | ||
Total shareholders' equity (deficiency) | 2,322 | 850 | ||
Total liabilities and shareholders' equity | 9,380 | 3,834 | ||
Convertible Senior Subordinated Notes | ||||
Assets | ||||
Cash and cash equivalents | 595 | 58 | 88 | 103 |
Restricted cash | 3 | 3 | ||
Accounts receivable, net | 777 | 570 | ||
Program rights | 236 | |||
Other current assets | 259 | 237 | ||
Total current assets | 1,870 | 868 | ||
Investment in films and television programs and program rights, net | 1,816 | 1,458 | ||
Property and equipment, net | 168 | 43 | ||
Investments | 357 | 464 | ||
Intangible assets | 2,024 | 11 | ||
Goodwill | 2,734 | 535 | ||
Other assets | 405 | 321 | ||
Deferred tax assets | 6 | 134 | ||
Subsidiary investments and advances | 0 | 0 | ||
Total assets | 9,380 | 3,834 | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Accounts payable and accrued liabilities | 531 | 355 | ||
Participations and residuals | 499 | 437 | ||
Film obligations and production loans | 257 | 663 | ||
Debt - short term portion | 118 | 40 | ||
Deferred revenue | 180 | 246 | ||
Total current liabilities | 1,585 | 1,741 | ||
Debt | 3,457 | 825 | ||
Participations and residuals | 304 | 170 | ||
Film obligations and production loans | 162 | 52 | ||
Other liabilities | 33 | 23 | ||
Dissenting shareholders' liability | 886 | |||
Deferred revenue | 76 | 82 | ||
Deferred tax liabilities | 461 | |||
Intercompany payable | 0 | 0 | ||
Redeemable noncontrolling interest | 94 | 91 | ||
Total shareholders' equity (deficiency) | 2,322 | 850 | ||
Total liabilities and shareholders' equity | 9,380 | 3,834 | ||
Convertible Senior Subordinated Notes | Consolidating Adjustments | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Program rights | 0 | |||
Other current assets | (5) | 0 | ||
Total current assets | (5) | 0 | ||
Investment in films and television programs and program rights, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Investments | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 0 | (5) | ||
Deferred tax assets | (232) | 0 | ||
Subsidiary investments and advances | (10,496) | (6,198) | ||
Total assets | (10,733) | (6,203) | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Participations and residuals | 0 | 0 | ||
Film obligations and production loans | 0 | 0 | ||
Debt - short term portion | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Debt | 0 | 0 | ||
Participations and residuals | 0 | 0 | ||
Film obligations and production loans | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Dissenting shareholders' liability | 0 | |||
Deferred revenue | 0 | 0 | ||
Deferred tax liabilities | (232) | |||
Intercompany payable | (5,008) | (4,323) | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders' equity (deficiency) | (5,493) | (1,880) | ||
Total liabilities and shareholders' equity | (10,733) | (6,203) | ||
Convertible Senior Subordinated Notes | Lions Gate Entertainment Corp. | ||||
Assets | ||||
Cash and cash equivalents | 1 | 1 | 2 | 4 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 1 | 1 | ||
Program rights | 0 | |||
Other current assets | 1 | 0 | ||
Total current assets | 3 | 2 | ||
Investment in films and television programs and program rights, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Investments | 40 | 40 | ||
Intangible assets | 0 | 0 | ||
Goodwill | 10 | 10 | ||
Other assets | 0 | 0 | ||
Deferred tax assets | 6 | 1 | ||
Subsidiary investments and advances | 5,708 | 1,584 | ||
Total assets | 5,767 | 1,637 | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Accounts payable and accrued liabilities | 42 | 22 | ||
Participations and residuals | 0 | 0 | ||
Film obligations and production loans | 0 | 0 | ||
Debt - short term portion | 70 | 0 | ||
Deferred revenue | 0 | 0 | ||
Total current liabilities | 112 | 22 | ||
Debt | 3,332 | 765 | ||
Participations and residuals | 0 | 0 | ||
Film obligations and production loans | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Dissenting shareholders' liability | 0 | |||
Deferred revenue | 0 | 0 | ||
Deferred tax liabilities | 0 | |||
Intercompany payable | 0 | 0 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders' equity (deficiency) | 2,323 | 850 | ||
Total liabilities and shareholders' equity | 5,767 | 1,637 | ||
Convertible Senior Subordinated Notes | Lions Gate Entertainment Inc. | ||||
Assets | ||||
Cash and cash equivalents | 84 | 28 | 51 | 47 |
Restricted cash | 3 | 3 | ||
Accounts receivable, net | 2 | 2 | ||
Program rights | 0 | |||
Other current assets | 20 | 18 | ||
Total current assets | 109 | 51 | ||
Investment in films and television programs and program rights, net | 6 | 6 | ||
Property and equipment, net | 38 | 36 | ||
Investments | 12 | 15 | ||
Intangible assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 17 | 24 | ||
Deferred tax assets | 232 | 122 | ||
Subsidiary investments and advances | 1,652 | 1,519 | ||
Total assets | 2,066 | 1,773 | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Accounts payable and accrued liabilities | 98 | 90 | ||
Participations and residuals | 4 | 3 | ||
Film obligations and production loans | 0 | 0 | ||
Debt - short term portion | 42 | 40 | ||
Deferred revenue | 3 | 0 | ||
Total current liabilities | 147 | 133 | ||
Debt | 53 | 60 | ||
Participations and residuals | 0 | 1 | ||
Film obligations and production loans | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Dissenting shareholders' liability | 0 | |||
Deferred revenue | 0 | 5 | ||
Deferred tax liabilities | 0 | |||
Intercompany payable | 2,342 | 1,907 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total shareholders' equity (deficiency) | (476) | (333) | ||
Total liabilities and shareholders' equity | 2,066 | 1,773 | ||
Convertible Senior Subordinated Notes | Non-guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 510 | 29 | $ 35 | $ 52 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 774 | 567 | ||
Program rights | 236 | |||
Other current assets | 243 | 219 | ||
Total current assets | 1,763 | 815 | ||
Investment in films and television programs and program rights, net | 1,810 | 1,452 | ||
Property and equipment, net | 130 | 7 | ||
Investments | 305 | 409 | ||
Intangible assets | 2,024 | 11 | ||
Goodwill | 2,724 | 525 | ||
Other assets | 388 | 302 | ||
Deferred tax assets | 0 | 11 | ||
Subsidiary investments and advances | 3,136 | 3,095 | ||
Total assets | 12,280 | 6,627 | ||
Liabilities and Shareholders' Equity (Deficiency) | ||||
Accounts payable and accrued liabilities | 391 | 243 | ||
Participations and residuals | 495 | 434 | ||
Film obligations and production loans | 257 | 663 | ||
Debt - short term portion | 6 | 0 | ||
Deferred revenue | 177 | 246 | ||
Total current liabilities | 1,326 | 1,586 | ||
Debt | 72 | 0 | ||
Participations and residuals | 304 | 169 | ||
Film obligations and production loans | 162 | 52 | ||
Other liabilities | 33 | 23 | ||
Dissenting shareholders' liability | 886 | |||
Deferred revenue | 76 | 77 | ||
Deferred tax liabilities | 693 | |||
Intercompany payable | 2,666 | 2,416 | ||
Redeemable noncontrolling interest | 94 | 91 | ||
Total shareholders' equity (deficiency) | 5,968 | 2,213 | ||
Total liabilities and shareholders' equity | $ 12,280 | $ 6,627 |
Consolidating Financial Info105
Consolidating Financial Information - Convertible Senior Subordinated Notes (Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 752 | $ 671 | $ 1,945 | $ 1,556 |
Expenses: | ||||
Direct operating | 430 | 404 | 1,183 | 927 |
Distribution and marketing | 175 | 203 | 522 | 428 |
General and administration | 89 | 57 | 235 | 180 |
Depreciation and amortization | 13 | 3 | 23 | 7 |
Restructuring and other | 52 | 13 | 70 | 18 |
Total expenses | 759 | 680 | 2,033 | 1,560 |
Operating loss | (7) | (9) | (88) | (4) |
Other expenses (income): | ||||
Interest expense | 27 | 14 | 58 | 40 |
Interest and other income | (1) | 0 | (4) | (2) |
Gain on Starz investment | (20) | 0 | (20) | 0 |
Loss on extinguishment of debt | 28 | 0 | 28 | 0 |
Total other expenses (income) | 34 | 14 | 62 | 38 |
Loss before equity interests and income taxes | (41) | (23) | (150) | (42) |
Equity interests income (loss) | (2) | 11 | 11 | 29 |
Income (loss) before income taxes | (43) | (12) | (139) | (13) |
Income tax provision (benefit) | (12) | (45) | (92) | (44) |
Net income (loss) | (31) | 33 | (47) | 31 |
Less: Net loss attributable to noncontrolling interest | 0 | 8 | 0 | 8 |
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (31) | $ 41 | (47) | 39 |
Convertible Senior Subordinated Notes | ||||
Revenues | 1,945 | 1,556 | ||
Expenses: | ||||
Direct operating | 1,183 | 927 | ||
Distribution and marketing | 522 | 428 | ||
General and administration | 235 | 180 | ||
Depreciation and amortization | 23 | 7 | ||
Restructuring and other | 70 | 18 | ||
Total expenses | 2,033 | 1,560 | ||
Operating loss | (88) | (4) | ||
Other expenses (income): | ||||
Interest expense | 58 | 40 | ||
Interest and other income | (4) | (2) | ||
Gain on Starz investment | (20) | |||
Loss on extinguishment of debt | 28 | |||
Total other expenses (income) | 62 | 38 | ||
Loss before equity interests and income taxes | (150) | (42) | ||
Equity interests income (loss) | 11 | 29 | ||
Income (loss) before income taxes | (139) | (13) | ||
Income tax provision (benefit) | (92) | (44) | ||
Net income (loss) | (47) | 31 | ||
Less: Net loss attributable to noncontrolling interest | 0 | 8 | ||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | (47) | 39 | ||
Convertible Senior Subordinated Notes | Consolidating Adjustments | ||||
Revenues | 0 | (1) | ||
Expenses: | ||||
Direct operating | 0 | 0 | ||
Distribution and marketing | 0 | 0 | ||
General and administration | (1) | (1) | ||
Depreciation and amortization | 0 | 0 | ||
Restructuring and other | 0 | 0 | ||
Total expenses | (1) | (1) | ||
Operating loss | 1 | 0 | ||
Other expenses (income): | ||||
Interest expense | (308) | (281) | ||
Interest and other income | 307 | 280 | ||
Gain on Starz investment | 0 | |||
Loss on extinguishment of debt | 0 | |||
Total other expenses (income) | (1) | (1) | ||
Loss before equity interests and income taxes | 2 | 1 | ||
Equity interests income (loss) | 87 | (106) | ||
Income (loss) before income taxes | 89 | (105) | ||
Income tax provision (benefit) | (28) | (52) | ||
Net income (loss) | 117 | (53) | ||
Less: Net loss attributable to noncontrolling interest | 0 | 8 | ||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | 117 | (45) | ||
Convertible Senior Subordinated Notes | Lions Gate Entertainment Corp. | ||||
Revenues | 0 | 0 | ||
Expenses: | ||||
Direct operating | 0 | 1 | ||
Distribution and marketing | 0 | 0 | ||
General and administration | 2 | 3 | ||
Depreciation and amortization | 0 | 0 | ||
Restructuring and other | 2 | 3 | ||
Total expenses | 4 | 7 | ||
Operating loss | (4) | (7) | ||
Other expenses (income): | ||||
Interest expense | 45 | 28 | ||
Interest and other income | (173) | (154) | ||
Gain on Starz investment | (20) | |||
Loss on extinguishment of debt | 22 | |||
Total other expenses (income) | (126) | (126) | ||
Loss before equity interests and income taxes | 122 | 119 | ||
Equity interests income (loss) | (159) | (81) | ||
Income (loss) before income taxes | (37) | 38 | ||
Income tax provision (benefit) | 10 | (1) | ||
Net income (loss) | (47) | 39 | ||
Less: Net loss attributable to noncontrolling interest | 0 | 0 | ||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | (47) | 39 | ||
Convertible Senior Subordinated Notes | Lions Gate Entertainment Inc. | ||||
Revenues | 12 | 16 | ||
Expenses: | ||||
Direct operating | 2 | 0 | ||
Distribution and marketing | 1 | 6 | ||
General and administration | 96 | 105 | ||
Depreciation and amortization | 8 | 6 | ||
Restructuring and other | 63 | 4 | ||
Total expenses | 170 | 121 | ||
Operating loss | (158) | (105) | ||
Other expenses (income): | ||||
Interest expense | 171 | 164 | ||
Interest and other income | 0 | (1) | ||
Gain on Starz investment | 0 | |||
Loss on extinguishment of debt | 3 | |||
Total other expenses (income) | 174 | 163 | ||
Loss before equity interests and income taxes | (332) | (268) | ||
Equity interests income (loss) | 67 | 186 | ||
Income (loss) before income taxes | (265) | (82) | ||
Income tax provision (benefit) | (106) | (45) | ||
Net income (loss) | (159) | (37) | ||
Less: Net loss attributable to noncontrolling interest | 0 | 0 | ||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | (159) | (37) | ||
Convertible Senior Subordinated Notes | Non-guarantor Subsidiaries | ||||
Revenues | 1,933 | 1,541 | ||
Expenses: | ||||
Direct operating | 1,181 | 926 | ||
Distribution and marketing | 521 | 422 | ||
General and administration | 138 | 73 | ||
Depreciation and amortization | 15 | 1 | ||
Restructuring and other | 5 | 11 | ||
Total expenses | 1,860 | 1,433 | ||
Operating loss | 73 | 108 | ||
Other expenses (income): | ||||
Interest expense | 150 | 129 | ||
Interest and other income | (138) | (127) | ||
Gain on Starz investment | 0 | |||
Loss on extinguishment of debt | 3 | |||
Total other expenses (income) | 15 | 2 | ||
Loss before equity interests and income taxes | 58 | 106 | ||
Equity interests income (loss) | 16 | 30 | ||
Income (loss) before income taxes | 74 | 136 | ||
Income tax provision (benefit) | 32 | 54 | ||
Net income (loss) | 42 | 82 | ||
Less: Net loss attributable to noncontrolling interest | 0 | 0 | ||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ 42 | $ 82 |
Consolidating Financial Info106
Consolidating Financial Information - Convertible Senior Subordinated Notes (Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidating Financial Information [Line Items] | ||||
Net income (loss) | $ (31) | $ 33 | $ (47) | $ 31 |
Foreign currency translation adjustments, net of tax | (2) | (1) | (8) | 1 |
Net unrealized gain (loss) on available-for-sale securities, net of tax | 32 | (16) | 55 | (4) |
Reclassification adjustment for gain on available-for-sale securities realized in net loss | (20) | 0 | (20) | 0 |
Net unrealized gain (loss) on foreign exchange contracts, net of tax | (2) | (1) | (5) | 2 |
Comprehensive income (loss) | (23) | 15 | (25) | 30 |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 8 | 0 | 8 |
Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (23) | $ 23 | (25) | 38 |
Convertible Senior Subordinated Notes | ||||
Consolidating Financial Information [Line Items] | ||||
Net income (loss) | (47) | 31 | ||
Foreign currency translation adjustments, net of tax | (8) | 1 | ||
Net unrealized gain (loss) on available-for-sale securities, net of tax | 55 | (4) | ||
Reclassification adjustment for gain on available-for-sale securities realized in net loss | (20) | |||
Net unrealized gain (loss) on foreign exchange contracts, net of tax | (5) | 2 | ||
Comprehensive income (loss) | (25) | 30 | ||
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 8 | ||
Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders | (25) | 38 | ||
Convertible Senior Subordinated Notes | Consolidating Adjustments | ||||
Consolidating Financial Information [Line Items] | ||||
Net income (loss) | 117 | (53) | ||
Foreign currency translation adjustments, net of tax | 24 | 10 | ||
Net unrealized gain (loss) on available-for-sale securities, net of tax | (55) | 0 | ||
Reclassification adjustment for gain on available-for-sale securities realized in net loss | 20 | |||
Net unrealized gain (loss) on foreign exchange contracts, net of tax | 5 | 0 | ||
Comprehensive income (loss) | 111 | (43) | ||
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 8 | ||
Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders | 111 | (35) | ||
Convertible Senior Subordinated Notes | Lions Gate Entertainment Corp. | ||||
Consolidating Financial Information [Line Items] | ||||
Net income (loss) | (47) | 39 | ||
Foreign currency translation adjustments, net of tax | (8) | (1) | ||
Net unrealized gain (loss) on available-for-sale securities, net of tax | 55 | 0 | ||
Reclassification adjustment for gain on available-for-sale securities realized in net loss | (20) | |||
Net unrealized gain (loss) on foreign exchange contracts, net of tax | (5) | 0 | ||
Comprehensive income (loss) | (25) | 38 | ||
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 | ||
Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders | (25) | 38 | ||
Convertible Senior Subordinated Notes | Lions Gate Entertainment Inc. | ||||
Consolidating Financial Information [Line Items] | ||||
Net income (loss) | (159) | (37) | ||
Foreign currency translation adjustments, net of tax | (14) | (4) | ||
Net unrealized gain (loss) on available-for-sale securities, net of tax | 0 | 0 | ||
Reclassification adjustment for gain on available-for-sale securities realized in net loss | 0 | |||
Net unrealized gain (loss) on foreign exchange contracts, net of tax | 0 | 0 | ||
Comprehensive income (loss) | (173) | (41) | ||
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 | ||
Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders | (173) | (41) | ||
Convertible Senior Subordinated Notes | Non-guarantor Subsidiaries | ||||
Consolidating Financial Information [Line Items] | ||||
Net income (loss) | 42 | 82 | ||
Foreign currency translation adjustments, net of tax | (10) | (4) | ||
Net unrealized gain (loss) on available-for-sale securities, net of tax | 55 | (4) | ||
Reclassification adjustment for gain on available-for-sale securities realized in net loss | (20) | |||
Net unrealized gain (loss) on foreign exchange contracts, net of tax | (5) | 2 | ||
Comprehensive income (loss) | 62 | 76 | ||
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 | ||
Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ 62 | $ 76 |
Consolidating Financial Info107
Consolidating Financial Information - Convertible Senior Subordinated Notes (Statement of Cash Flows) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | $ 416 | $ (111) | |
Investing Activities: | |||
Investment in equity method investees and other | (13) | (4) | |
Distributions from equity method investees | 2 | 0 | |
Purchase of Starz, net of cash acquired of $73 (see Note 2) | (1,057) | 0 | |
Purchase of Pilgrim Media Group, net of cash acquired of $16 (see Note 2) | 0 | (127) | |
Net Cash Flows Provided By (Used In) Investing Activities | (1,084) | (145) | |
Financing Activities: | |||
Debt - borrowings | 3,911 | 262 | |
Debt - repayments | (2,252) | (238) | |
Production loans - borrowings | 231 | 510 | |
Production loans - repayments | (623) | (241) | |
Dividends paid | (27) | (34) | |
Distributions to noncontrolling interest | (6) | 0 | |
Exercise of stock options | 1 | 6 | |
Tax withholding required on equity awards | (32) | (23) | |
Net Cash Flows Provided By Financing Activities | 1,203 | 242 | |
Net Change In Cash And Cash Equivalents | 535 | (14) | |
Foreign Exchange Effects on Cash | 2 | (1) | |
Cash and Cash Equivalents - Beginning Of Period | 58 | 103 | $ 103 |
Cash and Cash Equivalents - End Of Period | 595 | 88 | 58 |
Convertible Senior Subordinated Notes | |||
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | 416 | (111) | |
Investing Activities: | |||
Investment in equity method investees and other | (13) | (4) | |
Distributions from equity method investees | 2 | ||
Purchase of Starz, net of cash acquired of $73 (see Note 2) | (1,057) | ||
Purchase of Pilgrim Media Group, net of cash acquired of $16 (see Note 2) | (127) | ||
Capital expenditures | (16) | (14) | |
Net Cash Flows Provided By (Used In) Investing Activities | (1,084) | (145) | |
Financing Activities: | |||
Debt - borrowings | 3,911 | 262 | |
Debt - repayments | (2,252) | (238) | |
Production loans - borrowings | 231 | 510 | |
Production loans - repayments | (623) | (241) | |
Dividends paid | (27) | (34) | |
Distributions to noncontrolling interest | (6) | ||
Exercise of stock options | 1 | 6 | |
Tax withholding required on equity awards | (32) | (23) | |
Net Cash Flows Provided By Financing Activities | 1,203 | 242 | |
Net Change In Cash And Cash Equivalents | 535 | (14) | |
Foreign Exchange Effects on Cash | 2 | (1) | |
Cash and Cash Equivalents - Beginning Of Period | 58 | 103 | 103 |
Cash and Cash Equivalents - End Of Period | 595 | 88 | 58 |
Convertible Senior Subordinated Notes | Consolidating Adjustments | |||
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | 0 | 0 | |
Investing Activities: | |||
Investment in equity method investees and other | 0 | 0 | |
Distributions from equity method investees | 0 | ||
Purchase of Starz, net of cash acquired of $73 (see Note 2) | 0 | ||
Purchase of Pilgrim Media Group, net of cash acquired of $16 (see Note 2) | 0 | ||
Capital expenditures | 0 | 0 | |
Net Cash Flows Provided By (Used In) Investing Activities | 0 | 0 | |
Financing Activities: | |||
Debt - borrowings | 0 | 0 | |
Debt - repayments | 0 | 0 | |
Production loans - borrowings | 0 | 0 | |
Production loans - repayments | 0 | 0 | |
Dividends paid | 0 | 0 | |
Distributions to noncontrolling interest | 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 |
Convertible Senior Subordinated Notes | Lions Gate Entertainment Corp. | |||
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | (2,542) | 25 | |
Investing Activities: | |||
Investment in equity method investees and other | 0 | 0 | |
Distributions from equity method investees | 0 | ||
Purchase of Starz, net of cash acquired of $73 (see Note 2) | 0 | ||
Purchase of Pilgrim Media Group, net of cash acquired of $16 (see Note 2) | 0 | ||
Capital expenditures | 0 | 0 | |
Net Cash Flows Provided By (Used In) Investing Activities | 0 | 0 | |
Financing Activities: | |||
Debt - borrowings | 3,911 | 262 | |
Debt - repayments | (1,311) | (238) | |
Production loans - borrowings | 0 | 0 | |
Production loans - repayments | 0 | 0 | |
Dividends paid | (27) | (34) | |
Distributions to noncontrolling interest | 0 | ||
Exercise of stock options | 1 | 6 | |
Tax withholding required on equity awards | (32) | (23) | |
Net Cash Flows Provided By Financing Activities | 2,542 | (27) | |
Net Change In Cash And Cash Equivalents | 0 | (2) | |
Foreign Exchange Effects on Cash | 0 | 0 | |
Cash and Cash Equivalents - Beginning Of Period | 1 | 4 | 4 |
Cash and Cash Equivalents - End Of Period | 1 | 2 | 1 |
Convertible Senior Subordinated Notes | Lions Gate Entertainment Inc. | |||
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | 66 | 18 | |
Investing Activities: | |||
Investment in equity method investees and other | (1) | (1) | |
Distributions from equity method investees | 0 | ||
Purchase of Starz, net of cash acquired of $73 (see Note 2) | 0 | ||
Purchase of Pilgrim Media Group, net of cash acquired of $16 (see Note 2) | 0 | ||
Capital expenditures | (9) | (13) | |
Net Cash Flows Provided By (Used In) Investing Activities | (10) | (14) | |
Financing Activities: | |||
Debt - borrowings | 0 | 0 | |
Debt - repayments | 0 | 0 | |
Production loans - borrowings | 0 | 0 | |
Production loans - repayments | 0 | 0 | |
Dividends paid | 0 | 0 | |
Distributions to noncontrolling interest | 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 | 56 | 4 | |
Foreign Exchange Effects on Cash | 0 | 0 | |
Cash and Cash Equivalents - Beginning Of Period | 28 | 47 | 47 |
Cash and Cash Equivalents - End Of Period | 84 | 51 | 28 |
Convertible Senior Subordinated Notes | Non-guarantor Subsidiaries | |||
Consolidating Financial Information [Line Items] | |||
Net Cash Flows Provided By (Used In) Operating Activities | 2,892 | (154) | |
Investing Activities: | |||
Investment in equity method investees and other | (12) | (3) | |
Distributions from equity method investees | 2 | ||
Purchase of Starz, net of cash acquired of $73 (see Note 2) | (1,057) | ||
Purchase of Pilgrim Media Group, net of cash acquired of $16 (see Note 2) | (127) | ||
Capital expenditures | (7) | (1) | |
Net Cash Flows Provided By (Used In) Investing Activities | (1,074) | (131) | |
Financing Activities: | |||
Debt - borrowings | 0 | 0 | |
Debt - repayments | (941) | 0 | |
Production loans - borrowings | 231 | 510 | |
Production loans - repayments | (623) | (241) | |
Dividends paid | 0 | 0 | |
Distributions to noncontrolling interest | (6) | ||
Exercise of stock options | 0 | 0 | |
Tax withholding required on equity awards | 0 | 0 | |
Net Cash Flows Provided By Financing Activities | (1,339) | 269 | |
Net Change In Cash And Cash Equivalents | 479 | (16) | |
Foreign Exchange Effects on Cash | 2 | (1) | |
Cash and Cash Equivalents - Beginning Of Period | 29 | 52 | 52 |
Cash and Cash Equivalents - End Of Period | $ 510 | $ 35 | $ 29 |
Derivative Instruments and H108
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Derivative [Line Items] | |||||
Remaining maturity of forward foreign exchange contracts, maximum | 15 months | ||||
Net unrealized fair value gain (loss) on foreign exchange contracts, effective portion | $ (2) | $ (1) | $ (5) | $ 2 | |
Net unrealized fair value gain (loss) on foreign exchange contracts that did not qualify as effective hedge contracts | 0 | (1) | |||
Foreign currency cash flow hedge gain (loss) reclassified to earnings | 2 | 5 | |||
Foreign currency cash flow hedge gain estimated to be reclassified into earnings during next 12 months | 1 | 1 | |||
Other Assets | Foreign Exchange Forward | |||||
Derivative [Line Items] | |||||
Derivative asset | 1 | 1 | $ 9 | ||
Accounts Payable and Accrued Liabilities | Foreign Exchange Forward | |||||
Derivative [Line Items] | |||||
Derivative liability | $ 2 | $ 2 | $ 1 |
Derivative Instruments and H109
Derivative Instruments and Hedging Activities (Outstanding Forward Foreign Exchange Contracts) (Details) - Foreign Exchange Forward € in Millions, £ in Millions, NZD in Millions, HUF in Millions, CAD in Millions, $ in Millions | Dec. 31, 2016USD ($) | Dec. 31, 2016HUF | Dec. 31, 2016EUR (€) | Dec. 31, 2016GBP (£) | Dec. 31, 2016CAD | Dec. 31, 2016NZD |
British Pounds Sterling | ||||||
Derivative [Line Items] | ||||||
Foreign Currency Amount | £ | £ 10 | |||||
US Dollar Amount | $ 13 | |||||
Weighted average exchange rate per $1 USD | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 |
Hungary, Forint | ||||||
Derivative [Line Items] | ||||||
Foreign Currency Amount | HUF | HUF 4,458 | |||||
US Dollar Amount | $ 17 | |||||
Weighted average exchange rate per $1 USD | 269.79 | 269.79 | 269.79 | 269.79 | 269.79 | 269.79 |
Euro Member Countries, Euro | ||||||
Derivative [Line Items] | ||||||
Foreign Currency Amount | € | € 7 | |||||
US Dollar Amount | $ 8 | |||||
Weighted average exchange rate per $1 USD | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 |
Canada, Dollars | ||||||
Derivative [Line Items] | ||||||
Foreign Currency Amount | CAD | CAD 25 | |||||
US Dollar Amount | $ 19 | |||||
Weighted average exchange rate per $1 USD | 1.31 | 1.31 | 1.31 | 1.31 | 1.31 | 1.31 |
New Zealand, Dollars | ||||||
Derivative [Line Items] | ||||||
Foreign Currency Amount | NZD | NZD 35 | |||||
US Dollar Amount | $ 25 | |||||
Weighted average exchange rate per $1 USD | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 |
Additional Financial Informa110
Additional Financial Information (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Additional Financial Information [Abstract] | ||
Reserve for returns and allowances on accounts receivable | $ 78 | $ 52 |
Allowance for Doubtful Accounts Receivable | $ 8 | $ 6 |
Additional Financial Informa111
Additional Financial Information (Other Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2016 |
Other current assets | ||
Prepaid expenses and other | $ 24 | $ 26 |
Product inventory | 27 | 21 |
Tax credits receivable | 208 | 190 |
Other current assets | 259 | 237 |
Other non-current assets | ||
Prepaid expenses and other | 37 | 32 |
Accounts receivable | 262 | 222 |
Tax credits receivable | 106 | 67 |
Other non-current assets | $ 405 | $ 321 |
Additional Financial Informa112
Additional Financial Information (Non-Cash Investing and Financing Activities) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Non-cash investing activities | ||
Issuance of common shares related to acquisitions and mergers | $ 1,284 | |
Non-cash financing activities | ||
Accrued dividends (see Note 12) | 0 | $ 13 |
Conversions of convertible senior subordinated notes | 0 | 16 |
Starz | ||
Non-cash investing activities | ||
Issuance of common shares related to acquisitions and mergers | 1,284 | 0 |
Accrued purchase consideration for dissenting shareholders | 886 | 0 |
Issuance of Starz share-based payment replacement awards | 187 | 0 |
Pilgrim Media Group | ||
Non-cash investing activities | ||
Issuance of common shares related to acquisitions and mergers | $ 0 | $ 56 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) | 1 Months Ended | |
Jan. 31, 2017 | Dec. 31, 2016 | |
Convertible Senior Subordinated Notes | January 2012 Notes | ||
Subsequent Event [Line Items] | ||
Coupon rate | 4.00% | |
Subsequent Event | January 2012 Notes | ||
Subsequent Event [Line Items] | ||
Conversion price (in usd per share) | $ 10.21 | |
Subsequent Event | Convertible Senior Subordinated Notes | January 2012 Notes | ||
Subsequent Event [Line Items] | ||
Outstanding principal amount | $ 42,000,000 | |
Coupon rate | 4.00% | |
Class A Voting Shares | Subsequent Event | January 2012 Notes | ||
Subsequent Event [Line Items] | ||
Common shares issued upon conversion (in shares) | 2,049,461 | |
Class B Non-Voting Shares | Subsequent Event | January 2012 Notes | ||
Subsequent Event [Line Items] | ||
Common shares issued upon conversion (in shares) | 2,049,461 |