Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | May 20, 2019 | Sep. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | LIONS GATE ENTERTAINMENT CORP /CN/ | ||
Entity Central Index Key | 0000929351 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 4,255,846,171 | ||
Class A Voting Common Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 82,605,121 | ||
Class B Non-Voting Common Shares | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 133,601,545 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 184.3 | $ 378.1 |
Accounts receivable, net | 647.2 | 946 |
Program rights | 295.7 | 253.2 |
Other current assets | 267.2 | 195.8 |
Total current assets | 1,394.4 | 1,773.1 |
Investment in films and television programs and program rights, net | 1,672 | 1,692 |
Property and equipment, net | 155.3 | 161.7 |
Investments | 26.2 | 164.9 |
Intangible assets | 1,871.6 | 1,937.7 |
Goodwill | 2,833.5 | 2,740.8 |
Other assets | 436.1 | 458.6 |
Deferred tax assets | 19.8 | 38.8 |
Total assets | 8,408.9 | 8,967.6 |
LIABILITIES | ||
Accounts payable and accrued liabilities | 531.2 | 447.7 |
Participations and residuals | 408.5 | 504.5 |
Film obligations and production loans | 512.6 | 327.9 |
Debt - short term portion | 53.6 | 79.1 |
Dissenting shareholders' liability | 0 | 869.3 |
Deferred revenue | 146.5 | 183.9 |
Total current liabilities | 1,652.4 | 2,412.4 |
Debt | 2,850.8 | 2,478.3 |
Participations and residuals | 479.8 | 438.3 |
Film obligations and production loans | 143.1 | 171.3 |
Other liabilities | 114 | 46.4 |
Deferred revenue | 62.8 | 70.3 |
Deferred tax liabilities | 56.5 | 91.9 |
Redeemable noncontrolling interest | 127.6 | 101.8 |
Commitments and contingencies (Note 17) | ||
EQUITY | ||
Retained earnings | 208.7 | 516.6 |
Accumulated other comprehensive loss | (80.3) | (9.7) |
Total Lions Gate Entertainment Corp. shareholders' equity | 2,918.7 | 3,155.9 |
Noncontrolling interests | 3.2 | 1 |
Total equity | 2,921.9 | 3,156.9 |
Total liabilities and equity | 8,408.9 | 8,967.6 |
Class A Voting Common Shares | ||
EQUITY | ||
Common shares | 649.7 | 628.7 |
Class B Non-Voting Common Shares | ||
EQUITY | ||
Common shares | $ 2,140.6 | $ 2,020.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Class A Voting Common Shares | ||
Common shares, no par value | $ 0 | $ 0 |
Authorized common shares | 500 | 500 |
Common shares, shares issued | 82.5 | 81.8 |
Class B Non-Voting Common Shares | ||
Common shares, no par value | $ 0 | $ 0 |
Authorized common shares | 500 | 500 |
Common shares, shares issued | 133.5 | 129.3 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Statement [Abstract] | ||||
Revenues | $ 3,680.5 | $ 4,129.1 | $ 3,201.5 | |
Expenses: | ||||
Direct operating | 2,028.2 | 2,309.6 | 1,903.8 | |
Distribution and marketing | 835.5 | 897.6 | 806.8 | |
General and administration | 445.4 | 454.4 | 355.4 | |
Depreciation and amortization | 163.4 | 159 | 63.1 | |
Restructuring and other | 78 | 59.8 | 88.7 | |
Total expenses | 3,550.5 | 3,880.4 | 3,217.8 | |
Operating income (loss) | 130 | 248.7 | (16.3) | |
Interest expense | ||||
Interest expense | [1] | (163.6) | (137.2) | (99.7) |
Interest on dissenting shareholders' liability | (35.3) | (56.5) | (15.5) | |
Total interest expense | (198.9) | (193.7) | (115.2) | |
Shareholder litigation settlements | (114.1) | 0 | 0 | |
Interest and other income | 12 | 10.4 | 6.4 | |
Other expense | (4.7) | 0 | 0 | |
Loss on extinguishment of debt | (1.9) | (35.7) | (40.4) | |
Gain (loss) on investments | (87.6) | 171.8 | 20.4 | |
Equity interests income (loss) | (42.9) | (52.8) | 10.7 | |
Income (loss) before income taxes | (308.1) | 148.7 | (134.4) | |
Income tax benefit | 8.5 | 319.4 | 148.9 | |
Net income (loss) | (299.6) | 468.1 | 14.5 | |
Less: Net loss attributable to noncontrolling interests | 15.4 | 5.5 | 0.3 | |
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (284.2) | $ 473.6 | $ 14.8 | |
Per share information attributable to Lions Gate Entertainment Corp. shareholders: | ||||
Basic net income (loss) per common share (in usd per share) | $ (1.33) | $ 2.27 | $ 0.09 | |
Diluted net income (loss) per common share (in usd per share) | $ (1.33) | $ 2.15 | $ 0.09 | |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 213.7 | 208.4 | 165 | |
Diluted (in shares) | 213.7 | 220.4 | 172.2 | |
Dividends declared per common share (in usd per share) | $ 0.18 | $ 0.09 | $ 0.09 | |
[1] | Represents interest expense before interest on dissenting shareholders' liability. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (299.6) | $ 468.1 | $ 14.5 |
Foreign currency translation adjustments, net of tax | (5.8) | 7 | (8.1) |
Net unrealized gain (loss) on available-for-sale securities, net of tax | 0 | (0.5) | 56.4 |
Reclassification adjustment for gain on available-for-sale securities realized in net income | 0 | 0 | (17.8) |
Net unrealized loss on cash flow hedges, net of tax benefit of $0.3 million, $0.1 million, and $2.5 million in 2019, 2018 and 2017, respectively | (62.2) | (0.2) | (3.5) |
Comprehensive income (loss) | (367.6) | 474.4 | 41.5 |
Less: Comprehensive loss attributable to noncontrolling interest | 15.4 | 5.5 | 0.3 |
Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (352.2) | $ 479.9 | $ 41.8 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Tax benefit on unrealized loss on cash flow hedges | $ 0.3 | $ 0.1 | $ 2.5 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total LGEC Shareholders' Equity | Noncontrolling Interests | Class A Voting Common SharesCommon Shares | Class B Non-Voting Common SharesCommon Shares | Common Shares | Common SharesCommon Shares | Common SharesTotal LGEC Shareholders' Equity | |
Beginning balance, shares at Mar. 31, 2016 | 146.8 | 0 | 0 | |||||||||
Beginning balance at Mar. 31, 2016 | $ 850.3 | $ 885.8 | $ 7.6 | $ (43.1) | $ 850.3 | $ 0 | [1] | $ 0 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options, shares | 0.1 | 1.8 | 0.6 | |||||||||
Exercise of stock options | 24.7 | 24.7 | $ 0.9 | $ 23.8 | $ 0.7 | $ 0.7 | $ 0.7 | |||||
Share-based compensation, net, shares | 1 | |||||||||||
Share-based compensation, net | 36.4 | $ 36.4 | 36.4 | |||||||||
Share-based compensation, shares | 0.2 | 0.4 | ||||||||||
Share-based compensation | 22.1 | 22.1 | $ 3.8 | $ 18.3 | ||||||||
Conversion of convertible senior subordinated notes, shares | 2 | 2 | ||||||||||
Conversion of convertible senior subordinated notes | 42.8 | 42.8 | $ 21.4 | $ 21.4 | ||||||||
Dividends declared | (13.3) | $ (7) | (6.3) | (13.3) | ||||||||
Reclassification of common shares, shares | (148.4) | 74.2 | 74.2 | |||||||||
Reclassification of common shares | (0.3) | $ (916.3) | $ 458 | $ 458 | ||||||||
Net income | 14.8 | 14.8 | 14.8 | |||||||||
Issuance of common shares related to acquisitions and other, shares | 0 | 4.6 | 46.9 | |||||||||
Issuance of common shares related to acquisitions and other | 1,328.1 | $ 0.4 | 1,328.1 | $ 121.6 | $ 1,206.1 | |||||||
Issuance of replacement equity awards related to the Starz Merger, shares | 1.1 | |||||||||||
Issuance of replacement equity awards related to the Starz Merger | 186.5 | 186.5 | $ 186.5 | |||||||||
Other comprehensive income (loss) | 27.1 | 0 | 27.1 | 27.1 | ||||||||
Redeemable noncontrolling interests adjustments to redemption value | (5.5) | (5.5) | (5.5) | |||||||||
Ending balance, shares at Mar. 31, 2017 | 0 | 81.1 | 126.4 | |||||||||
Ending balance at Mar. 31, 2017 | 2,514.4 | $ 0 | 10.6 | (16) | 2,514.4 | 0 | [1] | $ 605.7 | $ 1,914.1 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options, shares | 0.3 | 2.6 | ||||||||||
Exercise of stock options | 46.5 | 46.5 | $ 1.7 | $ 44.8 | ||||||||
Share-based compensation, net, shares | 0.1 | 0 | ||||||||||
Share-based compensation, net | 65.7 | 65.7 | $ 12.8 | $ 52.9 | ||||||||
Dividends declared | (19.1) | (19.1) | (19.1) | |||||||||
Noncontrolling interests | 7 | 7 | [1] | |||||||||
Net income | 467.6 | 473.6 | 473.6 | (6) | [1] | |||||||
Issuance of common shares related to acquisitions and other, shares | 0.3 | 0.3 | ||||||||||
Issuance of common shares related to acquisitions and other | 17 | 17 | $ 8.5 | $ 8.5 | ||||||||
Other comprehensive income (loss) | 6.3 | 0 | 6.3 | 6.3 | ||||||||
Redeemable noncontrolling interests adjustments to redemption value | (9.3) | (9.3) | (9.3) | |||||||||
Ending balance, shares at Mar. 31, 2018 | 0 | 81.8 | 129.3 | |||||||||
Ending balance at Mar. 31, 2018 | 3,156.9 | $ 0 | 516.6 | (9.7) | 3,155.9 | 1 | [1] | $ 628.7 | $ 2,020.3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Exercise of stock options, shares | 0 | 0.6 | ||||||||||
Exercise of stock options | 6.4 | 6.4 | $ 0.6 | $ 5.8 | ||||||||
Share-based compensation, net, shares | 0.3 | 0.5 | ||||||||||
Share-based compensation, net | 58.9 | 58.9 | $ 11.9 | $ 47 | ||||||||
Dividends declared | (38.5) | (38.5) | (38.5) | |||||||||
Noncontrolling interests | 1.4 | 1.4 | ||||||||||
Net income | (283.4) | (284.2) | (284.2) | 0.8 | ||||||||
Issuance of common shares related to acquisitions and other, shares | 0.4 | 3.1 | ||||||||||
Issuance of common shares related to acquisitions and other | 76 | 76 | $ 8.5 | $ 67.5 | ||||||||
Other comprehensive income (loss) | (68) | 0 | (68) | (68) | ||||||||
Redeemable noncontrolling interests adjustments to redemption value | (6.5) | (6.5) | (6.5) | |||||||||
Ending balance, shares at Mar. 31, 2019 | 0 | 82.5 | 133.5 | |||||||||
Ending balance at Mar. 31, 2019 | $ 2,921.9 | $ 0 | $ 208.7 | $ (80.3) | $ 2,918.7 | $ 3.2 | [1] | $ 649.7 | $ 2,140.6 | |||
[1] | Excludes redeemable noncontrolling interests, which are reflected in temporary equity (see Note 11). |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities: | |||
Net income (loss) | $ (299.6) | $ 468.1 | $ 14.5 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 163.4 | 159 | 63.1 |
Amortization of films and television programs and program rights | 1,516.5 | 1,641.7 | 1,414 |
Interest on dissenting shareholders' liability | (72) | 56.5 | 15.5 |
Amortization of debt discount and financing costs | 11.6 | 14.3 | 12.9 |
Non-cash share-based compensation | 68.1 | 88.4 | 76.9 |
Other non-cash items | 29 | 20.1 | 4.3 |
Distributions from equity method investee | 1.8 | 0 | 14 |
Loss on extinguishment of debt | 1.9 | 35.7 | 40.4 |
Equity interests loss (income) | 42.9 | 52.8 | (10.7) |
Loss (gain) on investments | 87.6 | (171.8) | (20.4) |
Deferred income taxes (benefit) | (23.6) | (299.5) | (163.4) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net and other assets | 470.8 | (8.6) | (87.8) |
Investment in films and television programs and program rights, net | (1,469.9) | (1,526.4) | (1,092) |
Accounts payable and accrued liabilities | 41 | (181.7) | 152.9 |
Participations and residuals | (85.8) | 62.6 | 205.3 |
Film obligations | (11.8) | 5.1 | 17.1 |
Deferred revenue | (44.4) | (29.9) | (98.1) |
Net Cash Flows Provided By Operating Activities | 427.5 | 386.4 | 558.5 |
Investing Activities: | |||
Proceeds from the sale of equity method investee, net of transaction costs | 48 | 393.7 | 0 |
Investment in equity method investees | (48.6) | (53.4) | (20.6) |
Distributions from equity method investee | 0 | 0 | 3.1 |
Business acquisitions, net of cash acquired of $5.5, $18.7, and $73.5 in 2019, 2018 and 2017, respectively (see Note 2) | (77.3) | (1.8) | (1,102.6) |
Capital expenditures | (43.8) | (45.9) | (25.2) |
Net Cash Flows Provided By (Used In) Investing Activities | (121.7) | 292.6 | (1,145.3) |
Financing Activities: | |||
Debt - borrowings | 3,541.2 | 3,712.6 | 4,002.8 |
Debt - repayments | (3,212.7) | (4,335.7) | (2,766.9) |
Production loans - borrowings | 338.1 | 319.7 | 296 |
Production loans - repayments | (305.4) | (332.8) | (632.6) |
Payment of dissenter liability accrued at acquisition | (797.3) | 0 | 0 |
Dividends paid | (57.4) | 0 | (26.8) |
Distributions to noncontrolling interest | (3.7) | (8.2) | (6.9) |
Exercise of stock options | 8 | 44.9 | 25.4 |
Tax withholding required on equity awards | (10.1) | (22.9) | (40.9) |
Net Cash Flows Provided By (Used In) Financing Activities | (499.3) | (622.4) | 850.1 |
Net Change In Cash, Cash Equivalents and Restricted Cash | (193.5) | 56.6 | 263.3 |
Foreign Exchange Effects on Cash, Cash Equivalents and Restricted Cash | (0.3) | (3.2) | 0.8 |
Cash, Cash Equivalents and Restricted Cash - Beginning Of Period | 378.1 | 324.7 | 60.6 |
Cash, Cash Equivalents and Restricted Cash - End Of Period | $ 184.3 | $ 378.1 | $ 324.7 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Cash acquired from acquisition | $ 5.5 | $ 18.7 | $ 73.5 |
Description of Business, Basis
Description of Business, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation and Significant Accounting Policies | Significant Accounting Policies Description of Business Lions Gate Entertainment Corp. (“Lionsgate,” the “Company,” “we,” “us” or “our”) is a global content leader whose films, television series, digital products and linear and over-the-top platforms reach next generation audiences around the world. In addition to our filmed entertainment leadership, Lionsgate content drives a growing presence in interactive and location-based entertainment, video games, esports and other new entertainment technologies. Lionsgate's content initiatives are backed by a nearly 17,000 -title film and television library and delivered through a global sales and licensing infrastructure. Basis of Presentation Generally Accepted Accounting Principles These consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”). Principles of Consolidation The accompanying consolidated financial statements of the Company include the accounts of Lionsgate and its majority-owned and controlled subsidiaries. The Company reviews its relationships with other entities to identify whether it is the primary beneficiary of a variable interest entity (“VIE”). If the determination is made that the Company is the primary beneficiary, then the entity is consolidated. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; estimates of sales returns and other allowances and provisions for doubtful accounts; estimates related to the revenue recognition of sales or usage-based royalties; 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. Reclassifications Certain amounts presented in prior years have been reclassified to conform to the current year’s presentation. Significant Accounting Policies Revenue Recognition The Company's Motion Picture and Television Production segments generate revenue principally from the licensing of content in domestic theatrical exhibition, home entertainment (e.g., digital media and packaged media), television, and international market places. The Company's Media Networks segment generates revenue primarily from the distribution of the Company's STARZ branded premium subscription video services and, to a lesser extent, direct-to-consumer content streaming services. Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax. Licensing Arrangements. The Company's content licensing arrangements include fixed fee and minimum guarantee arrangements, and sales or usage based royalties. Fixed Fee or Minimum Guarantees: The Company's fixed fee or minimum guarantee licensing arrangements may, in some cases, include multiple titles, multiple license periods (windows) with a substantive period in between the windows, rights to exploitation in different media, or rights to exploitation in multiple territories, which may be considered distinct performance obligations. When these performance obligations are considered distinct, the fixed fee or minimum guarantee in the arrangement is allocated to the title, window, media right or territory as applicable, based on estimates of relative standalone selling prices. The amounts related to each performance obligation (i.e., title, window, media or territory) are recognized when the content has been delivered, and the window for the exploitation right in that territory has begun, which is the point in time at which the customer is able to begin to use and benefit from the content. Sales or Usage Based Royalties: Sales or usage based royalties represent amounts due to the Company based on the “sale” or “usage” of the Company's content by the customer, and revenues are recognized at the later of when the subsequent sale or usage occurs, or the performance obligation to which some or all the sales or usage-based royalty has been allocated and has been satisfied (or partially satisfied). Generally, when the Company licenses completed content (with standalone functionality, such as a movie, or television show) its performance obligation will be satisfied prior to the sale or usage. When the Company licenses intellectual property that does not have stand-alone functionality (e.g., brands, themes, logos, etc.), its performance obligation is generally satisfied in the same period as the sale or usage. The actual amounts due to the Company under these arrangements are generally not reported to the Company until after the close of the reporting period. The Company records revenue under these arrangements for the amounts due and not yet reported to the Company based on estimates of the sales or usage of these customers and pursuant to the terms of the contracts. Such estimates are based on information from the Company's customers, historical experience with similar titles in that market or territory, the performance of the title in other markets, and/or data available in the industry. Revenues by Market or Product Line. The following describes the revenues generated by market or product line. Theatrical revenues are included in the Motion Picture segment; home entertainment, television, international and other revenues are applicable to both the Motion Picture and Television Production segments; Media Networks programming revenues are included in the Media Networks segment. • Theatrical. Theatrical revenues are derived from the domestic theatrical release of motion pictures licensed to theatrical exhibitors on a picture-by-picture basis (distributed by the Company directly in the United States and through a sub-distributor in Canada). Revenue from the theatrical release of feature films are treated as sales or usage- based royalties and recognized starting at the exhibition date and based on the Company's participation in box office receipts of the theatrical exhibitor . • Home Entertainment. Home entertainment consists of Digital Media and Packaged Media. ◦ Digital Media. Digital media includes digital transaction revenue sharing arrangements (pay-per-view and video-on-demand platforms, electronic sell through ("EST"), and digital rental) and licenses of content to digital platforms for a fixed fee. Digital Transaction Revenue Sharing Arrangements : Primarily represents revenue sharing arrangements with certain digital media platforms which generally provide that, in exchange for a nominal or no upfront sales price, the Company shares in the rental or sales revenues generated by the platform on a title-by-title basis. These digital media platforms generate revenue from rental and EST arrangements, such as download-to-own, download-to-rent, and video-on-demand. These revenue sharing arrangements are recognized as sales or usage based royalties based on the performance of these platforms and pursuant to the terms of the contract, as discussed above. Licenses of Content to Digital Platforms: Primarily represents the licensing of content to subscription-video-on-demand ("SVOD") or other digital platforms for a fixed fee. As discussed above, revenues are recognized when the content has been delivered and the window for the exploitation right in that territory has begun. ◦ Packaged Media. Packaged media revenues represent the sale of motion pictures and television shows (produced or acquired) on physical discs (DVD’s, Blu-ray, 4K Ultra HD, referred to as "Packaged Media") in the retail market. Revenues are recognized, net of an allowance for estimated returns and other allowances, on the later of receipt by the customer or “street date” (when it is available for sale by the customer). • Television . Television revenues are derived from the licensing to domestic markets (linear pay, basic cable, free television markets, syndication) of motion pictures (including theatrical productions and acquired films) and scripted and unscripted television series, television movies, mini-series, and non-fiction programming. Television revenues include fixed fee arrangements as well as arrangements in which the Company earns advertising revenue from the exploitation of certain content on television networks. Television also includes revenue from licenses to SVOD platforms in which the initial license of a television series is to an SVOD platform. Revenues associated with a title, right, or window from television licensing arrangements are recognized when the feature film or television program is delivered (on an episodic basis for television product) and the window for the exploitation right has begun. • International. International revenues are derived from (1) licensing of the Company's productions, acquired films, catalog product and libraries of acquired titles to international distributors, on a territory-by-territory basis; (2) the direct distribution of our productions, acquired films, and our catalog product and libraries of acquired titles in the United Kingdom; and (3) licensing to international markets of scripted and unscripted series, television movies, mini-series and non-fiction programming. License fees and minimum guarantee amounts associated with title, window, media or territory, are recognized when access to the feature film or television program has been granted or delivery has occurred, as required under the contract, and the right to exploit the feature film or television program in that window, media or territory has commenced. Revenues are also generated from sales or usage based royalties received from international distributors based on their distribution performance pursuant to the terms of the contracts after the recoupment of certain costs in some cases, and the initial minimum guarantee, if any, and are recognized when the sale by our customer generating a royalty due to us has occurred. • Other. Other revenues are derived from the licensing of the Company's film and television and related content (games, music, location-based entertainment royalties, etc.) to other ancillary markets and from commissions earned and executive producer fees related to talent management. Revenues from the licensing of film and television content and the sales and licensing of music are recognized when the content has been delivered and the license period has begun, as discussed above. Revenues from the licensing of symbolic intellectual property (i.e., licenses of motion pictures or television characters, brands, storylines, themes or logos) is recognized over the corresponding license term. Commissions are recognized as such services are provided. • Media Networks - Programming Revenues. Media Networks’ revenues are primarily derived from the distribution of the Company's STARZ branded premium subscription video services pursuant to affiliation agreements with U.S. multichannel video programming distributors (“MVPDs”), including cable operators, satellite television providers and telecommunications companies, and over-the-top (“OTT”) (collectively, “Distributors”) and on a direct-to-consumer basis. Media Networks revenues also include international revenues primarily from the OTT distribution of the Company's STARZ branded premium subscription video services outside the United States. Pursuant to the Company’s distribution agreements, revenues may be based on a fixed fee, subject to nominal annual escalations, or a variable fee (i.e., a fee based on number of subscribers who receive the Company's networks or other factors). Programming revenue is recognized over the contract term based on the continuous delivery of the content to the distributor. The variable distribution fee arrangements represent sales or usage based royalties and are recognized over the period of such sales or usage by the Company's distributor, which is the same period that the content is provided to the distributor. Deferred Revenue. Deferred revenue relates primarily to customer cash advances or deposits received prior to when the Company satisfies the corresponding performance obligation. Payment terms vary by location and type of customer and the nature of the licensing arrangement, however, other than certain multi-year license arrangements; payments are generally due within 60 days after revenue is recognized. For certain multi-year licensing arrangements, primarily in the television, digital media, and international markets, payments may be due over a longer period. When we expect the period between fulfillment of our performance obligation and the receipt of payment to be greater than a year, a significant financing component is present. In these cases, such payments are discounted to present value based on a discount rate reflective of a separate financing transaction between the customer and the Company, at contract inception. The significant financing component is recorded as a reduction to revenue and accounts receivable initially, with such accounts receivable discount amortized to interest income over the period to receipt of payment. The Company does not assess contracts with deferred payments for significant financing components if, at contract inception, we expect the period between fulfillment of the performance obligation and subsequent payment to be one year or less. In other cases, customer payments are made in advance of when the Company fulfills its performance obligation and recognizes revenue. This primarily occurs under television production contracts, in which payments may be received as the production progresses, international motion picture contracts, where a portion of the payments are received prior to the completion of the movie and prior to license rights start dates, and pay television contracts with multiple windows with a portion of the revenues deferred until the subsequent exploitation windows commence. These arrangements do not contain significant financing components because the reason for the payment structure is not for the provision of financing to the Company, but rather to mitigate the Company's risk of customer non-performance and incentivize the customer to exploit the Company's content. See Note 12 for further information. Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits at financial institutions and investments in money market mutual funds. Investment in Films and Television Programs and Program Rights Investment in Films and Television Programs: Investment in films and television programs includes the unamortized costs of completed films and television programs which have been produced by the Company or for which the Company has acquired distribution rights, libraries acquired as part of acquisitions of companies, films and television programs in progress and in development and home entertainment product inventory. For films and television programs produced by the Company, capitalized costs include all direct production and financing costs, capitalized interest and production overhead. For the years ended March 31, 2019 , 2018 , and 2017 , total capitalized interest was $10.8 million , $7.9 million , and $8.7 million , respectively. For acquired films and television programs, capitalized costs consist of minimum guarantee payments to acquire the distribution rights. Costs of acquiring and producing films and television programs and of acquired libraries are amortized using the individual-film-forecast method, whereby these costs are amortized and participations and residuals costs are accrued in the proportion that current year’s revenue bears to management’s estimate of ultimate revenue at the beginning of the current year expected to be recognized from the exploitation, exhibition or sale of the films or television programs. Ultimate revenue includes estimates over a period not to exceed ten years following the date of initial release of the motion picture. For an episodic television series, the period over which ultimate revenues are estimated cannot exceed ten years following the date of delivery of the first episode, or, if still in production, five years from the date of delivery of the most recent episode, if later. For titles included in acquired libraries, ultimate revenue includes estimates over a period not to exceed twenty years following the date of acquisition. Investment in films and television programs is stated at the lower of amortized cost or estimated fair value. The valuation of investment in films and television programs, whether released or unreleased, is reviewed on a title-by-title basis, when an event or change in circumstances indicates that the fair value of a film or television program is less than its unamortized cost. During the years ended March 31, 2019 and 2018 , the Company recorded impairment charges of $35.2 million and $36.3 million, respectively, on film and television programs. In determining the fair value of its films and television programs, the Company employs a discounted cash flows ("DCF") methodology that includes cash flows 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 weighted average cost of capital of the Company plus a risk premium representing the risk associated with producing a particular film or television program. The fair value of any film costs associated with a film or television program that management plans to abandon is zero. 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 10 ). Additional amortization is recorded in the amount by which the unamortized costs exceed the estimated fair value of the film or television program. Estimates of future revenue involve measurement uncertainty and it is therefore possible that reductions in the carrying value of investment in films and television programs may be required as a consequence of changes in management’s future revenue estimates. Films and television programs in progress include the accumulated costs of productions which have not yet been completed. Films and television programs in development include costs of acquiring film rights to books, stage plays or original screenplays and costs to adapt such projects. Such costs are capitalized and, upon commencement of production, are transferred to production costs. Projects in development are written off at the earlier of the date they are determined not to be recoverable or when abandoned, or three years from the date of the initial investment unless the fair value of the project exceeds its carrying cost. Home entertainment product inventory consists of Packaged Media and is stated at the lower of cost or market value (first-in, first-out method), and are included within other current assets on the consolidated balance sheet (see Note 19 ). Costs of Packaged Media sales, including shipping and handling costs, are included in distribution and marketing expenses. Program Rights: The cost of program rights for films and television programs (including original series) exhibited by the Media Networks segment are generally amortized on a title-by-title or episode-by-episode basis over the anticipated number of exhibitions or license period. 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 on newer releases. The cost of the Media Networks' segments produced original content generally represents the license fees charged from the Television Production segment which is eliminated in consolidation. 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. The cost of the Media Networks’ third-party licensed content is allocated between the pay television market distributed by the Media Networks’ segment and the ancillary revenue markets (e.g., home video, digital platforms, international television, etc.) distributed by the Television Production segment based on the estimated relative fair values of these markets. Estimates of fair value for the pay television and ancillary markets involve uncertainty as well as estimates of ultimate revenue. All the costs of programming produced by the Television Production segment are included in investment in films and television programs and program rights, net and 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. Changes in management’s estimate of the anticipated exhibitions of films and original series on our networks could result in the earlier recognition of our programming costs than anticipated. Conversely, scheduled exhibitions may not capture the appropriate usage of the program rights in current periods which would lead to the write-off of additional program rights in future periods and may have a significant impact on our future results of operations and our financial position. Property and Equipment, net Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided for on a straight line basis over the following useful lives: Distribution equipment 1 — 4 years Computer equipment and software 2 — 5 years Furniture and equipment 2 — 10 years Leasehold improvements Lease term or the useful life, whichever is shorter Building 26 years Land Not depreciated The Company periodically reviews and evaluates the recoverability of property and equipment. Where applicable, estimates of net future cash flows, on an undiscounted basis, are calculated based on future revenue estimates. If appropriate and where deemed necessary, a reduction in the carrying amount is recorded. Investments Investments include investments accounted for under the equity method of accounting, and equity investments with and without readily determinable fair value. Equity Method Investments: The Company uses the equity method of accounting for investments in companies in which it has a minority equity interest and the ability to exert significant influence over operating decisions of the companies. Significant influence is generally presumed to exist when the Company owns between 20% and 50% of the voting interests in the investee, holds substantial management rights or holds an interest of less than 20% in an investee that is a limited liability partnership or limited liability corporation that is treated as a flow-through entity. Under the equity method of accounting, the Company's share of the investee's earnings (losses), net of intercompany eliminations, are included in the "equity interest income (loss)" line item in the consolidated statement of operations. The Company records its share of the net income or loss of certain other equity method investments (see Note 5 ) on a one quarter lag and, accordingly, during the years ended March 31, 2019 , 2018 , and 2017 , the Company recorded its share of the income or loss generated by these entities for the years ended December 31, 2018, 2017 and 2016, respectively. Profit Eliminations. The Company licenses theatrical releases and other films and television programs to certain equity method investments. A portion of the profits of these licenses reflecting the Company's ownership share in the venture are eliminated through an adjustment to the equity interest income (loss) of the venture. These profits are recognized as they are realized by the equity method investee through the amortization of the related asset, recorded on the equity method investee's balance sheet, over the license period. Dividends and Other Distributions. Dividends and other distributions from equity method investees are recorded as a reduction of the Company's investment. Distributions received up to the Company's interest in the investee's retained earnings are considered returns on investments and are classified within cash flows from operating activities in the consolidated statement of cash flows. Distributions from equity method investments in excess of the Company's interest in the investee's retained earnings are considered returns of investments and are classified within cash flows provided by investing activities in the statement of cash flows. Other Equity Investments: Investments in nonconsolidated affiliates in which the Company owns less than 20% of the voting common stock, or does not exercise significant influence over operating and financial policies, are recorded at fair value using quoted market prices if the investment has a readily determinable fair value. If an equity investment's fair value is not readily determinable, the Company will recognize it at cost less any impairment, adjusted for observable price changes in orderly transactions in the investees' securities that are identical or similar to our investments in the investee. The unrealized gains and losses and the adjustments related to the observable price changes are recognized in net income (loss). Impairments of Investments: The Company regularly reviews its investments for impairment, including when the carrying value of an investment exceeds its market value. If the Company determines that an investment has sustained an other-than-temporary decline in its value, the investment is written down to its fair value by a charge to earnings. Factors that are considered by the Company in determining whether an other-than-temporary decline in value has occurred include (i) the market value of the security in relation to its cost basis, (ii) the financial condition of the investee, and (iii) the Company’s intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment. For investments accounted for using the equity method of accounting or equity investments without a readily determinable fair value, the Company evaluates information available (e.g., budgets, business plans, financial statements, etc.) in addition to quoted market prices, if any, in determining whether an other-than-temporary decline in value exists. Factors indicative of an other-than-temporary decline include recurring operating losses, credit defaults and subsequent rounds of financing at an amount below the cost basis of the Company’s investment. Intangible Assets Intangible assets acquired in business combinations are recorded at the acquisition date fair value in the Company’s consolidated balance sheet. Identifiable intangible assets with finite lives are amortized over their estimated useful lives, and identifiable intangible assets with indefinite lives are not amortized, but rather are tested annually for impairment, or sooner when circumstances indicate that the intangible asset might be impaired. Amortizable intangible assets are tested for impairment utilizing an income approach based on undiscounted cash flows upon the occurrence of certain triggering events and, if impaired, are written down to fair value. The impairment test is performed at the lowest level of cash flows associated with the asset. For intangible assets with indefinite lives, an entity may first perform a qualitative assessment to determine whether it is more-likely-than-not that an indefinite-lived intangible asset is impaired. The qualitative assessment is an evaluation, based on all identified events and circumstances which impact the fair value of the intangible asset. If the Company believes that as a result of its qualitative assessment it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying amount, a quantitative impairment test is not required but may be performed at the option of the Company. As of March 31, 2019, based on the Company's qualitative assessment, the Company concluded that the indefinite-lived intangible assets included in the accompanying consolidated balance sheet were not impaired. Goodwill Goodwill represents the excess of acquisition costs over the tangible and intangible assets acquired and liabilities assumed in various business acquisitions by the Company. Goodwill is allocated to the Company's reporting units, which are its operating segments or one level below its operating segments (component level). Reporting units are determined by the discrete financial information available for the component and whether it is regularly reviewed by segment management. Components are aggregated into a single reporting unit if they share similar economic characteristics. Our reporting units for purposes of goodwill impairment testing at March 31, 2019 were Motion Picture, Media Networks, and each of our Television and talent management businesses, both of which are part of our Television Production segment. Goodwill is not amortized, but goodwill is reviewed for impairment each fiscal year or between the annual tests if an event occurs or circumstances change that indicates it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. The Company performs its annual impairment test as of January 1 in each fiscal year. A goodwill impairment loss would be recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. An entity may perform a qualitative assessment of the likelihood of the existence of a goodwill impairment. The qualitative assessment is an evaluation, based on all identified events and circumstances which impact the fair value of the reporting unit. If the Company believes that as a result of its qualitative assessment it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, a quantitative impairment test is not required but may be performed at the option of the Company. A quantitative assessment requires determining the fair value of our reporting units. The determination of the fair value of each reporting unit utilizes discounted cash flows ("DCF") analyses and market-based valuation methodologies, which represent Level 3 fair value measurements. Fair value determinations require considerable judgment about revenue and market growth, operating margins and cash flows, market multiples and discount rates, and are sensitive to changes in these underlying assumptions and factors. For fiscal 2019, due primarily to the decline in the market price of our common shares, we performed a quantitative impairment assessment for all of our reporting units. Based on the Company's quantitative assessments, the Company concluded that it is more-likely-than-not that the fair value of its reporting units is greater than their carrying values. Management will continue to monitor the reporting units for changes in the business environment that could impact recoverability in future periods. The recoverability of goodwill is depen |
Merger and Acquisitions
Merger and Acquisitions | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | Acquisitions 3 Arts Entertainment On May 29, 2018, the Company purchased a 51% membership interest in 3 Arts Entertainment LLC, a talent management and television/film production company. The purchase price was approximately $166.6 million , of which 50% was paid in cash at closing, 32.5% was paid in the Company's Class B non-voting common shares at closing, and 17.5% will be paid in the Company's Class B non-voting common shares on the one -year anniversary of closing, subject to certain conditions. The number of shares issued and to be issued was determined by dividing the dollar value of the portion of the purchase price to be paid by the daily weighted average closing price of the Company's Class B non-voting common shares on the New York Stock Exchange for the twenty ( 20 ) consecutive trading days immediately preceding the closing date. The value of the shares issued or to be issued was based on the closing price of the Company's Class B non-voting common shares at closing. A portion of the purchase price, up to $38.3 million , may be recoupable for a five -year period commencing on the acquisition date of May 29, 2018, contingent upon the continued employment of certain employees, or the achievement of certain EBITDA targets, as defined in the 3 Arts Entertainment acquisition and related agreements. Accordingly, $38.3 million was initially recorded as a deferred compensation arrangement within other current and non-current assets and is being amortized in general and administrative expenses over a five -year period. The acquisition was accounted for as a purchase, with the results of operations of 3 Arts Entertainment included in the Company's consolidated results from May 29, 2018. Based on the purchase price allocation, $92.7 million was allocated to goodwill, $47.0 million was allocated to the fair value of finite-lived intangible assets (including measurement period adjustments recorded, see Note 6 ) and $38.3 million was allocated to deferred compensation arrangements, as discussed above. The remainder of the purchase price was primarily allocated to cash and cash equivalents, accounts receivable, other assets, and accounts payable and accrued liabilities, and $15.8 million was recorded as a redeemable noncontrolling interest, representing the noncontrolling interest holders' 49% equity interest in 3 Arts Entertainment (see Note 11 ). The acquired finite-lived intangible assets primarily represent customer relationships and are being amortized over a weighted average estimated useful life of 12 years. The Company incurred approximately $1.3 million of acquisition-related costs that were expensed in restructuring and other expenses during the fiscal year ended March 31, 2019. The Company used discounted cash flows ("DCF") analyses, which represent Level 3 fair value measurements, to assess certain components of its purchase price allocation, including acquired intangible assets and the redeemable noncontrolling interest. The acquisition goodwill arises from the opportunity for synergies of the combined companies to grow and strengthen the Company's television operations by expanding the Company's talent relationships, and improving the Company's television production capabilities. The goodwill recorded as part of this acquisition is included in the Television Production segment. The goodwill is not amortized for financial reporting purposes, but is deductible for federal tax purposes. Good Universe On October 11, 2017, the Company purchased all of the membership interests in True North Media, LLC ("Good Universe"), a motion picture production and global sales company. The purchase price consisted of $20.4 million in cash paid at closing, and an additional $1.4 million in cash and 119,751 of Class B non-voting common shares to be paid and issued after one -year of the closing date. In addition, the Company assumed $23.6 million of corporate debt and production loans, of which $14.9 million was paid off shortly following the acquisition during the fiscal year ended March 31, 2018. The acquisition was accounted for as a purchase, with the results of operations of Good Universe included in the Company's consolidated results from October 12, 2017. Based on the purchase price allocation, $29.0 million was allocated to goodwill, with the remainder primarily allocated to the fair values of investment in film and television programs, cash and cash equivalents, and other liabilities. The goodwill recorded as part of this acquisition arises from the executive management personnel and their extensive experience and key relationships in the entertainment industry, and is included in the Motion Picture segment (see Note 6 ). The goodwill is not amortized for financial reporting purposes, but is deductible for federal tax purposes. 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"). 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, no par value per share (the "Class A voting shares") and 0.5 shares of a newly issued class of Lionsgate Class B non-voting shares, no par value per share (the "Class B non-voting shares") subject to the terms and conditions of the Merger Agreement (see Note 13 ). The following table summarizes the components of the estimated purchase consideration, inclusive of Lions Gate’s previously 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) $ 179.3 Cash consideration paid to Starz stockholders Starz Series A common stock at $18.00 $ 1,123.3 Starz Series B common stock at $7.26 52.8 1,176.1 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 $ 1,088.0 Starz Series B common stock at exchange ratio of 0.6321 Lionsgate voting shares 121.6 Starz Series B common stock at exchange ratio of 0.6321 Lionsgate non-voting shares 118.1 1,327.7 Replacement of Starz share-based payment awards (2) 186.5 Liability for dissenting shareholders (3) 797.3 Total purchase consideration $ 3,666.9 (1) The difference between the fair value ( $179.3 million ) and the original cost ( $158.9 million ) of the available-for-sale investment in equity securities of Starz held by Lionsgate on the date of the Starz Merger (December 8, 2016), amounting to $20.4 million , was reflected in the gain (loss) on investments line item in the consolidated statement of operations for the fiscal year ended March 31, 2017. (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 is being recognized as share-based compensation expense over the remaining post-combination service period. The estimated aggregate fair value of the Lions Gate replacement awards recorded as part of the purchase consideration was $186.5 million , and the estimated remaining aggregate fair value totaling $43.3 million is being recognized 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 0.39% - 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 was zero since the combined company had suspended the quarterly dividend. (3) In connection with the Starz Merger, Starz received demands for appraisal from purported holders of approximately 22.5 million shares of Starz Series A common stock, and the Company recorded a dissenting shareholders' liability at the time of acquisition for the value of the original merger consideration attributable to the dissenting shareholders. As of March 31, 2018, the Company had not paid the merger consideration for the shares that had demanded appraisal but had recorded a liability of $869.3 million that was included in current dissenting shareholders' liability on the consolidated balance sheet for the estimated value of the merger consideration that would have been payable for such shares, plus interest accrued at the Federal Reserve discount rate plus 5% , compounded quarterly. In November 2018 a settlement agreement was reached and the dissenting shareholders' liability was paid. See Note 17 for further information. Allocation of Purchase Consideration. The Company has made an allocation of the purchase price of Starz 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 $ 73.5 Accounts receivable 254.9 Investment in films and television programs and program rights 851.9 Property and equipment 121.4 Investments 12.1 Intangible assets 2,071.0 Other assets 139.9 Accounts payable and accrued liabilities (143.1 ) Corporate debt and capital lease obligations (1,013.1 ) Deferred tax liabilities (713.6 ) Other liabilities (165.0 ) Fair value of net assets acquired 1,489.9 Goodwill 2,177.0 Total purchase consideration $ 3,666.9 Fair Value Estimates: The fair value of the assets acquired and liabilities assumed were 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 Accounting Standards Codification ("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 6 ). The fair value of customer relationships was 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 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 estimated to be the recorded book value. For completed films and television programs, the fair value was 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 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 $675.0 million , and Starz's credit facility, which had an outstanding amount of $255.0 million (see Note 7 ). 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 represented the excess of the 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 6 ). The goodwill is not being amortized for financial reporting purposes. An insignificant portion of goodwill is deductible for federal tax purposes. Pro Forma Statement of Operations Information. The following unaudited pro forma condensed consolidated statements of operations information presented below illustrates the results of operations of the Company as if the Starz Merger and related debt financing (see Note 7 ) occurred on April 1, 2016. Year Ended March 31, 2017 (Amounts in millions, except per share amounts) Revenues $ 4,323.7 Net income attributable to Lions Gate Entertainment Corp. shareholders $ 148.4 Basic Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.74 Diluted Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.71 The unaudited pro forma condensed consolidated statement of operations information does not include adjustments for any operating efficiencies or cost savings, and exclude $70.9 million of acquisition-related costs that were expensed in restructuring and other expenses during the year ended March 31, 2017. |
Investment In Films and Televis
Investment In Films and Television Programs and Program Rights | 12 Months Ended |
Mar. 31, 2019 | |
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 March 31, March 31, (Amounts in millions) Motion Picture Segment - Theatrical and Non-Theatrical Films Released, net of accumulated amortization $ 376.7 $ 410.5 Acquired libraries, net of accumulated amortization 1.8 2.1 Completed and not released 80.6 55.0 In progress 250.4 347.2 In development 45.0 24.6 754.5 839.4 Television Production Segment - Direct-to-Television Programs Released, net of accumulated amortization 186.1 238.9 In progress 295.6 186.6 In development 17.6 4.8 499.3 430.3 Media Networks Segment Released program rights, net of accumulated amortization 591.0 616.9 In progress 106.8 45.6 In development 56.2 30.0 754.0 692.5 Intersegment eliminations (40.1 ) (17.0 ) Investment in films and television programs and program rights, net 1,967.7 1,945.2 Less current portion of program rights (295.7 ) (253.2 ) Non-current portion $ 1,672.0 $ 1,692.0 The Company expects approximately 36.5% of completed films and television programs, excluding licensed program rights, will be amortized during the one-year period ending March 31, 2020 . Additionally, the Company expects approximately 82.9% of completed and released films and television programs, excluding licensed program rights and acquired libraries, will be amortized during the three-year period ending March 31, 2022 . Licensed program rights expected to be amortized within one-year from the balance sheet date are classified as short-term in the consolidated balance sheet. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment March 31, 2019 March 31, 2018 (Amounts in millions) Distribution equipment (1) $ 29.1 $ 30.4 Building (2) 50.4 50.4 Leasehold improvements 43.2 29.7 Property and equipment 25.6 21.1 Computer equipment and software 146.8 117.2 295.1 248.8 Less accumulated depreciation and amortization (141.0 ) (88.3 ) 154.1 160.5 Land 1.2 1.2 $ 155.3 $ 161.7 _______________ (1) This category includes the cost of satellite transponders accounted for as capital leases, which was $9.5 million as of March 31, 2019, and accumulated depreciation for these transponders was $6.2 million (2018 - cost of $16.8 million , accumulated depreciation of $7.1 million ). (2) Represents the cost of Starz's building in Englewood, Colorado which is accounted for as a capital lease. Accumulated depreciation for the building totaled $3.5 million at March 31, 2019 (2018 - $2.6 million ). During the year ended March 31, 2019, depreciation expense amounted to $50.8 million and includes the amortization of assets recorded under capital leases (2018 - $48.8 million ; 2017 - $24.4 million ). |
Investments
Investments | 12 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments, and Investments in Debt and Equity Securities [Abstract] | |
Investments | Investments The Company's investments consisted of the following: March 31, March 31, (Amounts in millions) Investments in equity method investees $ 24.5 $ 127.0 Other investments 1.7 37.9 $ 26.2 $ 164.9 The Company's equity interests income (loss) were as follows: Year Ended March 31, Equity Method Investee 2019 2018 2017 (Amounts in millions) EPIX (1) $ — $ 4.0 $ 31.0 Pop (2) (8.4 ) (9.0 ) (6.9 ) Other (34.5 ) (47.8 ) (13.4 ) $ (42.9 ) $ (52.8 ) $ 10.7 ____________________ (1) The Company's equity interest in EPIX was sold in May 2017 (see further discussion under "Gain (Loss) on Investments" section below). (2) The Company's equity interest in Pop was sold in March 2019 (see further discussion under "Pop" section below). Equity Method Investments: Pop. Pop was the Company's joint venture with CBS. On March 15, 2019, the Company sold its 50.0% interest in Pop to CBS, resulting in net proceeds of $48.0 million (net of transaction costs). The Company recorded a loss before income taxes on the sale of approximately $44.6 million , which is reflected in the gain (loss) on investments line item in the consolidated statement of operations for the year ended March 31, 2019. Pop Financial Information: The following table presents the summarized statements of operations for the period from April 1, 2018 through the date of sale of March 15, 2019, and for the years ended March 31, 2018 and 2017 for Pop and a reconciliation of the net loss reported by Pop to equity interest loss recorded by the Company: Period from April 1, 2018 to March 15, 2019 (date of sale) Year Ended March 31, 2018 2017 Revenues $ 96.9 $ 110.9 $ 95.0 Expenses: Cost of services 55.0 66.2 52.7 Selling, marketing, and general and administration 49.9 54.1 47.6 Depreciation and amortization 7.4 8.1 7.9 Operating loss (15.4 ) (17.5 ) (13.2 ) Interest expense, net 2.2 1.0 0.6 Accretion of redeemable preferred stock units (1) 89.4 79.1 67.8 Total interest expense, net 91.6 80.1 68.4 Net loss $ (107.0 ) $ (97.6 ) $ (81.6 ) Reconciliation of net loss reported by Pop to equity interest loss: Net loss reported by Pop $ (107.0 ) $ (97.6 ) $ (81.6 ) Ownership interest in Pop 50 % 50 % 50 % The Company's share of net loss (53.5 ) (48.8 ) (40.8 ) Accretion of dividend and interest income on redeemable preferred stock units (1) 44.7 39.5 33.9 Elimination of the Company's share of profits on licensing sales to Pop (0.2 ) (0.8 ) (0.6 ) Realization of the Company’s share of profits on licensing sales to Pop 0.6 1.1 0.6 Total equity interest loss recorded $ (8.4 ) $ (9.0 ) $ (6.9 ) ___________________ (1) Accretion of mandatorily redeemable preferred stock units represents Pop's 10% dividend and the amortization of discount on its mandatorily redeemable preferred stock units held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest income (loss). EPIX. In May 2017, the Company sold all of its 31.15% equity interest in EPIX. The Company recorded a gain before income taxes of approximately $201.0 million which is reflected in the gain (loss) on investments line item in the consolidated statement of operations in the year ended March 31, 2018. Prior to the sale of its interest in EPIX, the Company had accounted for such interest as an equity method investment. EPIX Financial Information: The following table presents the summarized statements of income for EPIX for the period from April 1, 2017 through the date of sale of May 11, 2017, and for the year ended March 31, 2017 and a reconciliation of the net income reported by EPIX to equity interest income recorded by the Company: Period from April 1, 2017 to May 11, 2017 (date of sale) Twelve Months Ended March 31, 2017 (Amounts in millions) Revenues $ 44.8 $ 400.1 Expenses: Operating expenses 32.3 259.8 Selling, general and administrative expenses 2.4 23.3 Operating income 10.1 117.0 Interest and other expense — (0.3 ) Net income $ 10.1 $ 116.7 Reconciliation of net income reported by EPIX to equity interest income: Net income reported by EPIX $ 10.1 $ 116.7 Ownership interest in EPIX 31.15 % 31.15 % The Company's share of net income 3.1 36.4 Eliminations of the Company’s share of profits on licensing sales to EPIX (1) (0.1 ) (12.4 ) Realization of the Company’s share of profits on licensing sales to EPIX (2) 1.0 7.0 Total equity interest income recorded $ 4.0 $ 31.0 _________________________ (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. Other Equity Method Investments The Company has investments in various other equity method investees with ownership percentages ranging from approximately 11% to 49% . These investments include: Playco. Playco Holdings Limited ("Playco") offers a STARZ-branded online subscription video-on-demand service in the Middle East and North Africa. Roadside Attractions . Roadside Attractions is an independent theatrical distribution company. 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. Atom Tickets. Atom Tickets is the first-of-its-kind theatrical mobile ticketing platform and app. 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. Other. In addition to the equity method investments discussed above, the Company holds ownership interests in other immaterial equity method investees. Summarized Financial Information. Summarized financial information for the Company's "other equity method investees", on an aggregate basis, is set forth below: March 31, March 31, (Amounts in millions) Current assets $ 189.8 $ 232.7 Non-current assets $ 55.7 $ 130.0 Current liabilities $ 167.8 $ 201.5 Non-current liabilities $ 46.7 $ 45.0 Year Ended March 31, 2019 2018 2017 (Amounts in millions) Revenues $ 107.5 $ 178.8 $ 30.1 Gross profit $ 36.9 $ 42.6 $ 9.1 Net loss $ (102.6 ) $ (117.7 ) $ (50.8 ) Other Investments: Other investments include equity securities that are measured at fair value and equity securities without readily determinable fair values, as described below: Equity Securities Measured at Fair Value. Investments in equity securities that are measured at fair value are classified within Level 1 of the fair value hierarchy as the valuation inputs are based on quoted prices in active markets (see Note 10 ). As a result of the adoption of new accounting guidance for Recognition and Measurement of Financial Instruments (see Note 1 ), effective April 1, 2018 changes in the fair value of the Company's equity securities with a readily determinable fair market value are recognized in net income. At March 31, 2019 and March 31, 2018 , "other investments" include investments in equity securities measured at fair value of $1.2 million and $7.3 million , respectively. Accordingly, during the fiscal year ended March 31, 2019 , the Company recognized $6.2 million in unrealized losses on equity securities held as of March 31, 2019 which are reflected in the gain (loss) on investments line item on the consolidated statement of operations. Equity Securities Without Readily Determinable Fair Values. Investments in equity securities without readily determinable fair values are valued at cost, less any impairment, and adjusted for changes resulting from observable, orderly transactions for identical or similar securities. At March 31, 2019 and March 31, 2018 , "other investments" include investments in equity securities without readily determinable fair values of $0.5 million and $30.6 million , respectively. Gain (Loss) on Investments: The following table summarizes the components of the gain (loss) on investments: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Impairments of investments (1) $ (36.8 ) $ (29.2 ) $ — Unrealized losses on equity securities held as of March 31, 2019 (6.2 ) — — Gain (loss) on sale of equity method investees (2) (44.6 ) 201.0 — Gain on Starz investment (3) — — 20.4 $ (87.6 ) $ 171.8 $ 20.4 _________________ (1) In the fiscal years ended March 31, 2019 and 2018, amounts include impairments of equity method investments, and the fiscal year ended March 31, 2019 also includes other-than-temporary impairments of $34.2 million on investments in equity securities without readily determinable fair values and notes receivable (previously included in other assets) which were written down to their estimated fair value. (2) In the fiscal year ended March 31, 2019, represents the loss before income taxes recorded in connection with the March 2019 sale of the Company's 50.0% equity interest in Pop. In the fiscal year ended March 31, 2018, represents the gain before income taxes recorded in connection with the May 2017 sale of the Company's 31.15% equity interest in EPIX. (3) Represents the difference between the fair value and the original cost of the available-for-sale investment in equity securities of Starz held on the date of the Starz Merger (December 8, 2016). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2019 | |
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 Picture Television Production Media Networks Total (Amounts in millions) Balance as of March 31, 2017 $ 361.9 $ 309.2 $ 2,029.4 $ 2,700.5 Business acquisitions (1) 29.0 — — 29.0 Measurement period adjustments (2) 2.8 — 8.5 11.3 Balance as of March 31, 2018 393.7 309.2 2,037.9 2,740.8 Business acquisitions (1) — 92.0 — 92.0 Measurement period adjustments (2) — 0.7 — 0.7 Balance as of March 31, 2019 $ 393.7 $ 401.9 $ 2,037.9 $ 2,833.5 ______________________ (1) In fiscal 2019 and 2018, represents the goodwill resulting from the acquisitions of 3 Arts Entertainment and Good Universe, respectively (see Note 2 ). (2) In fiscal 2019, represents measurement period adjustments resulting from the acquisition of 3 Arts Entertainment (see Note 2 ), consisting of a decrease to the fair value of finite-lived intangible assets and a corresponding increase to goodwill. In fiscal 2018, represents measurement period adjustments related to the Starz Merger. Intangible Assets Finite-lived intangible assets consisted of the following as of March 31, 2019 and March 31, 2018 : March 31, 2019 March 31, 2018 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) $ 1,852.0 $ 250.8 $ 1,601.2 $ 1,821.0 $ 141.4 $ 1,679.6 Trademarks and trade names 3.6 1.0 2.6 2.0 0.6 1.4 Other 23.9 6.1 17.8 9.5 2.8 6.7 $ 1,879.5 $ 257.9 $ 1,621.6 $ 1,832.5 $ 144.8 $ 1,687.7 _______________ (1) Customer relationships primarily represent affiliation agreements with distributors acquired in the Starz Merger. Indefinite-lived intangible assets not subject to amortization consisted of the following: March 31, 2019 March 31, 2018 (Amounts in millions) Indefinite-lived intangible assets not subject to amortization: Tradenames (1) $ 250.0 $ 250.0 _______________ (1) Tradenames are 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. Amortization expense associated with the Company's intangible assets for the years ended March 31, 2019 , 2018 and 2017 was approximately $112.6 million , $109.0 million , and $35.7 million , respectively. Amortization expense remaining relating to intangible assets for each of the years ending March 31, 2020 through 2024 is estimated to be approximately $113.3 million , $113.3 million , $113.3 million , $113.3 million , and $112.7 million , respectively. |
Debt
Debt | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt of the Company, excluding film obligations and production loans, was as follows as of March 31, 2019 and March 31, 2018 : March 31, March 31, (Amounts in millions) Corporate debt: Revolving credit facility $ — $ — Term Loan A (1) 750.0 750.0 Term Loan B (1) 1,107.5 1,250.0 5.875% Senior Notes 520.0 520.0 6.375% Senior Notes 550.0 — Total corporate debt 2,927.5 2,520.0 Convertible senior subordinated notes — 60.0 Capital lease obligations 45.4 50.5 Total debt 2,972.9 2,630.5 Unamortized discount and debt issuance costs, net of fair value adjustment on capital lease obligations (68.5 ) (73.1 ) Total debt, net 2,904.4 2,557.4 Less current portion (53.6 ) (79.1 ) Non-current portion of debt $ 2,850.8 $ 2,478.3 ______________ (1) To manage interest rate risk on certain of its LIBOR-based floating-rate corporate debt, as of March 31, 2019 , the Company has entered into interest rate swaps to effectively convert the floating interest rates to fixed interest rates on a $1.7 billion notional amount, which as of March 31, 2019 converts the effective rate on $1.7 billion of our LIBOR-based corporate debt to 4.987% (see Note 18 for further information). The following table sets forth future annual contractual principal payment commitments of debt as of March 31, 2019 : Maturity Date Year Ended March 31, Debt Type 2020 2021 2022 2023 2024 Thereafter Total (Amounts in millions) Revolving Credit Facility March 2023 $ — $ — $ — $ — $ — $ — $ — Term Loan A March 2023 37.5 52.5 75.0 585.0 — — 750.0 Term Loan B March 2025 12.5 12.5 12.5 12.5 12.5 1,045.0 1,107.5 5.875% Senior Notes November 2024 — — — — — 520.0 520.0 6.375% Senior Notes February 2024 — — — — 550.0 — 550.0 Capital lease obligations Various 3.0 3.0 0.9 0.9 1.0 36.6 45.4 $ 53.0 $ 68.0 $ 88.4 $ 598.4 $ 563.5 $ 1,601.6 2,972.9 Less aggregate unamortized discount & debt issuance costs, net of fair value adjustment on capital lease obligations (68.5 ) $ 2,904.4 Senior Credit Facilities (Revolving Credit Facility, Term Loan A and Term Loan B) Revolving Credit Facility Availability of Funds & Commitment Fee. The revolving credit facility provides for borrowings and letters of credit up to an aggregate of $1.5 billion , and at March 31, 2019 there was $1.5 billion available. However, borrowing levels are subject to certain financial covenants as discussed below. There were no letters of credit outstanding at March 31, 2019 . 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 Amended Credit Agreement, on the total Revolving Credit Facility of $1.5 billion less the amount drawn. Maturity Date: • Revolving Credit Facility & Term Loan A: March 22, 2023. • Term Loan B: March 24, 2025. Interest: • Revolving Credit Facility & Term Loan A: Initially bore interest at a rate per annum equal to LIBOR plus 1.75% (or an alternative base rate plus 0.75% ) margin, with a LIBOR floor of zero . The margin is subject to potential increases of up to 50 basis points ( two ( 2 ) increases of 25 basis points each) upon certain increases to net first lien leverage ratios, as defined in the Amended Credit Agreement. The margin as of March 31, 2019 is 2.00% (effective interest rate of 4.49% as of March 31, 2019 , before the impact of interest rate swaps). • Term Loan B: As of March 22, 2018, pursuant to the Amended Credit Agreement described below, the Term Loan B bears interest at a rate per annum equal to LIBOR plus 2.25% margin, with a LIBOR floor of zero (or an alternative base rate plus 1.25% margin) (effective interest rate of 4.74% as of March 31, 2019 , before the impact of interest rate swaps). Required Principal Payments: • Term Loan A: Quarterly principal payments, at quarterly rates of 1.25% beginning June 30, 2019, 1.75% beginning June 30, 2020, and 2.50% beginning June 30, 2021 through December 31, 2022, with the balance payable at maturity. • Term Loan B: Quarterly principal payments, 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 Amended 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. Security. The Senior Credit Facilities are guaranteed by the Guarantors (as defined in the Amended Credit Agreement) and are secured by a security interest in substantially all of the assets of Lionsgate and the Guarantors (as defined in the Amended 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 March 31, 2019 , 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 and 6.375% Senior Notes Interest: • 5.875% Senior Notes: Bears interest at 5.875% annually (payable semi-annually on May and November 1 of each year). • 6.375% Senior Notes: Bears interest at 6.375% annually (payable semi-annually in arrears on February 1 and August 1 of each year, commencing on August 1, 2019). Maturity Date: • 5.875% Senior Notes: November 1, 2024. • 6.375% Senior Notes: February 1, 2024. Optional Redemption: • 5.875% Senior Notes: (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% . • 6.375% Senior Notes: (i) Prior to February 1, 2021, the 6.375% Senior Notes are redeemable under certain circumstances (as defined in the indenture governing the 6.375% Senior Notes), in whole at any time, or in part from time to time, at a price equal to 100% of the principal amount of the Notes to be redeemed plus the Applicable Premium (as defined in the indenture governing the 6.375% 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 February 1, 2021 (see below) of the notes redeemed plus interest through the redemption date (discounted at the treasury rate on the redemption date plus 50 basis point) over the principal amount of the notes redeemed on the redemption date. (ii) On and after February 1, 2021, 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 February 1, 2021 - 103.188% ; (ii) on or after February 1, 2022 - 101.594% ; (iii) on or after February 1, 2023 - 100% . Security. The 5.875% Senior Notes and 6.375% Senior Notes are unsubordinated, unsecured obligations of the Company. Covenants. The 5.875% Senior Notes and 6.375% 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 March 31, 2019 , 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 and 6.375% 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 and 6.375% Senior Notes at 100% of their principal amount, plus accrued and unpaid interest, if any to the date of purchase. Capacity to Pay Dividends At March 31, 2019 , the capacity to pay dividends under the Senior Credit Facilities, the 5.875% Senior Notes and the 6.375% Senior Notes significantly exceeded the amount of the Company's retained earnings or net loss, and therefore the Company's net loss of $299.6 million and retained earnings of $208.7 million were deemed free of restrictions at March 31, 2019 . Debt Transactions Fiscal 2019: 6.375% Senior Notes Issuance. On February 4, 2019, the Company issued $550.0 million aggregate principal amount of 6.375% Senior Notes. The Company used the proceeds of the 6.375% Senior Notes to pay down outstanding amounts under its Revolving Credit Facility and for working capital purposes. Convertible Senior Subordinated Notes Repayment. On April 15, 2018, the 1.25% convertible senior subordinated notes due April 2018 (the "April 2013 1.25% Notes") matured, and upon maturity, the Company repaid the outstanding principal amount, together with accrued and unpaid interest. Term Loan Prepayments. During the year ended March 31, 2019, the Company made voluntary prepayments totaling $130.0 million in principal outstanding under the Term Loan B, together with accrued and unpaid interest. Fiscal 2018: March 2018 Senior Credit Facilities Refinancing. On March 22, 2018, the Company entered into an amendment to the Credit Agreement (as amended, the "Amended Credit Agreement") to refinance its Previous Revolving Credit Facility, Previous Term Loan A and Previous Term Loan B, all as defined below. In connection with the amendment, the Company repaid in full the then outstanding principal amounts of $950.0 million under the Previous Term Loan A and $825.0 million under the Previous Term Loan B, and terminated all commitments under the Previous Revolving Credit Facility. In addition, the Company incurred a new five -year Term Loan A in aggregate principal amount of $750.0 million (the "Term Loan A"), incurred a new seven -year Term Loan B in aggregate principal amount of $1,250.0 million (the "Term Loan B"), and obtained a new $1.5 billion five -year revolving credit facility (the "Revolving Credit Facility", and together with the Term Loan A and Term Loan B, the "Senior Credit Facilities"). December 2017 Previous Term Loan B Refinancing. On December 11, 2017, the Company entered into an amendment to the Credit Agreement to reduce the interest rate on the Previous Term Loan B and prepaid $25.0 million of principal outstanding under the Previous Term Loan B. Term Loan Prepayments. In addition to the prepayments in connection with the amendments described above, during the year ended March 31, 2018, the Company made other voluntary prepayments totaling $740.0 million in principal outstanding under the Previous Term Loan B, together with accrued and unpaid interest. Fiscal 2017: Debt Issuances and Redemptions or Repayments Associated with the Starz Merger. On December 8, 2016, Lions Gate Entertainment Corp. entered into a credit and guarantee agreement (the "Credit Agreement") which provided for a $1.0 billion five -year revolving credit facility (the "Previous Revolving Credit Facility") (ii) a $1.0 billion five -year term loan A facility (the "Previous Term Loan A") and (iii) a $2.0 billion seven -year term loan B facility (the "Previous Term Loan B"). In addition, on October 27, 2016, Lions Gate Entertainment Corp. issued $520.0 million aggregate principal amount of 5.875% senior notes due 2024 (the " 5.875% Senior Notes"). The Company used the proceeds of the 5.875% Senior Notes, the Previous Term Loan A, the Previous Term Loan B, and a portion of the Previous Revolving Credit Facility (amounting to $50.0 million ) to finance a portion of the consideration and transaction costs for the Starz Merger and the associated transactions. Term Loan Prepayments. During the year ended March 31, 2017, the Company made other voluntary prepayments totaling $400.0 million in principal outstanding under the Previous Term Loan B, together with accrued and unpaid interest. Loss on Extinguishment of Debt Accounting for the Debt Redemption and Repayment Transactions Discussed Above: Revolving Credit Facilities. Any fees paid to creditors or third parties related to the issuance of the new revolving credit facility were capitalized and are being 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 were capitalized and are being 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. Term Loans and Senior Notes. In accounting for each contemporaneous issuance and repayment or redemption transaction discussed above, a portion of the prepayment and issuance was considered a modification of terms with creditors who participated in both the prepaid or redeemed debt and the new issuance, and a portion was considered a debt extinguishment. The previously incurred unamortized deferred financing costs, debt discount, call premiums (if any) and any fees or other amounts paid to creditors, on the prepaid or redeemed debt will be amortized over the life of the new issuance, to the extent the prepayment and issuance was considered a modification of terms, and expensed as a loss on extinguishment of debt to the extent considered an extinguishment. The new debt issuances associated with the existing creditors whose prior loans were prepaid were considered a modification of terms and therefore the new issuance costs associated with such issuances were expensed as a loss on extinguishment of debt. All costs and expenses associated with new creditors are capitalized and amortized over the life of the new issuance. Debt issuance costs and any debt discount are amortized using the effective interest method. Loss on Extinguishment of Debt. The following tables summarize the accounting for the debt issuance costs incurred and the related loss on extinguishment of debt recorded in the years ended March 31, 2018 and March 31, 2017 associated with the debt transactions discussed above. During the year ended March 31, 2019, the Company recorded a loss on extinguishment of debt of $1.9 million related to early repayments on the Term Loan B. Year Ended March 31, 2018 Loss on Extinguishment of Debt Capitalized & Amortized Over Life of New Issuances Total (Amounts in millions) New debt issuance costs $ 11.0 $ 11.6 $ 22.6 Previously incurred debt issuance costs or unamortized discount 24.7 Total $ 35.7 Year Ended March 31, 2017 Loss on Extinguishment of Debt Capitalized & Amortized Over Life of New Issuances Total (Amounts in millions) New debt issuance costs and call premium $ 20.6 $ 115.0 $ 135.6 Previously incurred debt issuance costs or unamortized discount 19.8 Total $ 40.4 Capital Lease Obligations Capital lease obligations represent lease agreements acquired in the Starz Merger. As of March 31, 2019, these obligations include a ten -year commercial lease for a building, with four successive five -year renewal periods at the Company's option, with an imputed annual interest rate of 7.2% , and a capital lease arrangement for Starz's transponder capacity that expires in February 2021 and has an imputed annual interest rate of 7.0% . Interest Expense The table below sets forth the composition of the Company’s interest expense for the years ended March 31, 2019 , 2018 and 2017: Year Ended March 31, 2019 2018 2017 Interest expense Cash interest $ 152.0 $ 122.9 $ 86.8 Amortization of debt discount and financing costs 11.6 14.3 12.9 163.6 137.2 99.7 Interest on dissenting shareholders' liability (see Note 17) 35.3 56.5 15.5 Total interest expense $ 198.9 $ 193.7 $ 115.2 |
Participations and Residuals
Participations and Residuals | 12 Months Ended |
Mar. 31, 2019 | |
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, contributed a minority share of 25% of the Company’s production or acquisition costs of “qualifying” theatrical feature films, released during the three -year period ended January 23, 2018, and participated 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 excluded, among others, any theatrical feature film incorporating any elements from the Twilight, Hunger Games or Divergent franchises. The percentage of the contribution could vary on certain pictures. Amounts provided from TIK Films are reflected as a participation liability in the Company's consolidated balance sheets and amounted to $157.0 million at March 31, 2019 (March 31, 2018 - $151.8 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 | 12 Months Ended |
Mar. 31, 2019 | |
Film Obligations And Production Loans [Abstract] | |
Film Obligations And Production Loans | Film Obligations and Production Loans March 31, March 31, (Amounts in millions) Film obligations $ 270.3 $ 146.7 Production loans 386.4 352.9 Total film obligations and production loans 656.7 499.6 Unamortized debt issuance costs (1.0 ) (0.4 ) Total film obligations and production loans, net 655.7 499.2 Less current portion (512.6 ) (327.9 ) Total non-current film obligations and production loans $ 143.1 $ 171.3 The following table sets forth future annual repayment of film obligations and production loans as of March 31, 2019 : Year Ended March 31, 2020 2021 2022 2023 2024 Thereafter Total (Amounts in millions) Film obligations $ 177.3 $ 68.3 $ 13.9 $ 7.0 $ 3.0 $ 1.1 $ 270.6 Production loans 336.6 49.8 — — — — 386.4 $ 513.9 $ 118.1 $ 13.9 $ 7.0 $ 3.0 $ 1.1 $ 657.0 Less imputed interest on film obligations and debt issuance costs on production loans (1.3 ) $ 655.7 Film Obligations Film obligations include minimum guarantees and accrued licensed program rights obligations, which represent amounts payable for film or television rights that the Company has acquired or licensed 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 4.63% to 5.29% . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2019 | |
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 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of March 31, 2019 and 2018 : March 31, 2019 March 31, 2018 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in millions) Available-for-sale equity securities (see Note 5) $ 1.2 $ — $ 1.2 $ 7.3 $ — $ 7.3 Forward exchange contracts (see Note 18) — 1.5 1.5 — 0.3 0.3 Liabilities: Forward exchange contracts (see Note 18) — (0.6 ) (0.6 ) — (0.6 ) (0.6 ) Interest rate swaps (see Note 18) — (63.6 ) (63.6 ) — — — $ 1.2 $ (62.7 ) $ (61.5 ) $ 7.3 $ (0.3 ) $ 7.0 The following table sets forth the carrying values and fair values of the Company’s outstanding debt at March 31, 2019 and March 31, 2018 : March 31, 2019 March 31, 2018 (Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value (Level 2) (Level 2) Liabilities (1) : Term Loan A 733.3 742.5 729.7 750.9 Term Loan B 1,091.2 1,088.1 1,229.3 1,251.6 5.875% Senior Notes 502.8 534.3 500.4 539.5 6.375% Senior Notes 541.4 576.1 — — April 2013 1.25% Notes — — 60.0 60.3 Production loans 385.4 386.4 352.6 352.9 $ 2,712.7 $ 2,891.3 $ 2,872.0 $ 2,955.2 ________________ (1) The Company measures the fair value of its outstanding debt using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements). The Company’s financial instruments also include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, borrowings under the Revolving Credit Facility, if any, and capital lease obligations. The carrying values of these financial instruments approximated the fair values at March 31, 2019 and 2018. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Redeemable Noncontrolling Interests The table below presents the reconciliation of changes in redeemable noncontrolling interests: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Beginning balance $ 101.8 $ 93.8 $ 90.5 Initial fair value of redeemable noncontrolling interests 15.8 — — Net income (loss) attributable to noncontrolling interests (16.2 ) 0.5 (0.3 ) Noncontrolling interest discount accretion 22.1 6.1 5.0 Adjustments to redemption value 6.5 9.3 5.5 Cash distributions (2.4 ) (7.9 ) (6.9 ) Ending balance $ 127.6 $ 101.8 $ 93.8 Redeemable noncontrolling interests (included in temporary equity on the consolidated balance sheets) relate to the May 29, 2018 acquisition of a controlling interest in 3 Arts Entertainment and the November 12, 2015 acquisition of a controlling interest in Pilgrim Media Group. Redeemable noncontrolling interests are measured at the greater of (i) the redemption amount that would be paid if settlement occurred at the balance sheet date less the amount attributed to unamortized noncontrolling interest discount if applicable, or (ii) the historical value resulting from the original acquisition date value plus or minus any earnings or loss attribution, plus the amount of amortized noncontrolling interest discount, less the amount of cash distributions that are not accounted for as compensation, if any. The amount of the redemption value in excess of the historical values of the noncontrolling interest, if any, is recognized as an increase to redeemable noncontrolling interest and a charge to retained earnings. 3 Arts Entertainment. In connection with the acquisition of a controlling interest in 3 Arts Entertainment on May 29, 2018, the Company recorded a non-compensatory (see below) redeemable noncontrolling interest of $15.8 million , representing the noncontrolling interest holders 49% equity interest in 3 Arts Entertainment (see Note 2 ). The noncontrolling interest holders have a right to put the noncontrolling interest of 3 Arts Entertainment, at fair value, exercisable at five years after the acquisition date of May 29, 2018, for a 60 day period. Beginning 30 days after the expiration of the exercise period for the put rights held by the noncontrolling interest holders, the Company has a right to call the noncontrolling interest of 3 Arts Entertainment, at fair value, for a 60 day period. 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, the noncontrolling interest holder's interest is presented as redeemable noncontrolling interest outside of shareholders' equity on the Company's consolidated balance sheets. In addition, the noncontrolling interest holders have continued as employees of 3 Arts Entertainment. Pursuant to the various 3 Arts Entertainment acquisition and related agreements, a portion of the noncontrolling interest holders' participation in the put and call proceeds is based on the noncontrolling interest holders' performance during the period. Further, if the employment of a noncontrolling interest holder is terminated, under certain circumstances, their participations in distributions cease and the put and call value is discounted from the fair value of their equity ownership percentage. Accordingly, earned distributions are accounted for as compensation and are being expensed within general and administrative expense as incurred. Additionally, the amount of the put and call proceeds subject to the discount is also accounted for as compensation, and is being amortized over the vesting period within general and administrative expense and reflected as an addition to redeemable noncontrolling interest. Pilgrim Media Group. 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 $90.1 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, 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 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. Other Noncontrolling Interests The Company has other noncontrolling interests that are not redeemable. These noncontrolling interests primarily relate to Pantaya (a joint venture between the Company and Hemisphere Media Group), a premium Spanish-language streaming service in which the Company owns a controlling interest. The Pantaya service was launched in the three months ended September 30, 2017. |
Revenue
Revenue | 12 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | The table below presents revenues by segment, market or product line for the fiscal years ended March 31, 2019 , 2018 and 2017 . The prior year information in the below table has not been adjusted under the modified retrospective method of adoption of the new revenue recognition guidance. Year Ended March 31, 2019 2018 2017 (Amounts in millions) Revenue by Type: Motion Picture Theatrical $ 215.8 $ 281.4 $ 371.3 Home Entertainment Digital Media 334.7 373.7 303.9 Packaged Media 257.5 400.3 403.8 Total Home Entertainment 592.2 774.0 707.7 Television 274.4 278.5 279.1 International 341.1 456.7 533.8 Other 40.9 31.5 28.7 Total Motion Picture revenues 1,464.4 1,822.1 1,920.6 Television Production Television 655.8 744.5 667.3 International 136.0 179.6 163.2 Home Entertainment Digital Media 66.9 96.3 50.1 Packaged Media 7.6 11.2 6.3 Total Home Entertainment 74.5 107.5 56.4 Other 54.6 1.6 5.9 Total Television Production revenues 920.9 1,033.2 892.8 Media Networks - Programming Revenues Domestic (1) 1,458.9 1,411.2 426.3 International 2.1 — — 1,461.0 1,411.2 426.3 Intersegment eliminations (165.8 ) (137.4 ) (38.2 ) Total revenues $ 3,680.5 $ 4,129.1 $ 3,201.5 __________________ (1) Media Networks domestic revenues include revenue from the Company's Streaming Services product line of $18.0 million , $7.1 million and $2.9 million in the years ended March 31, 2019, 2018 and 2017, respectively. Remaining Performance Obligations Remaining performance obligations represent deferred revenue on the balance sheet plus fixed fee or minimum guarantee contracts where the revenue will be recognized and the cash received in the future (i.e., backlog). Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at March 31, 2019 are as follows: Year Ended March 31, 2020 2021 2022 Thereafter Total (Amounts in millions) Remaining Performance Obligations $ 1,257.1 $ 275.4 $ 120.1 $ 163.4 $ 1,816.0 The above table does not include estimates of variable consideration for transactions involving sales or usage-based royalties in exchange for licenses of intellectual property. The revenues included in the above table include all fixed fee contracts regardless of duration. Revenues of $231.7 million , including variable and fixed fee arrangements, were recognized during the year ended March 31, 2019 , respectively, from performance obligations satisfied prior to March 31, 2018. These revenues were primarily associated with the distribution of television and theatrical product in electronic sell-through and video-on-demand formats, and to a lesser extent, the distribution of theatrical product in the domestic and international markets related to films initially released in prior periods. Contract Assets and Deferred Revenue The timing of revenue recognition, billings and cash collections affects the recognition of accounts receivable, contract assets and deferred revenue (see Note 1 ). At March 31, 2019 and April 1, 2018, accounts receivable, contract assets and deferred revenue are as follows: March 31, April 1, Addition (Reduction) (Amounts in millions) Accounts receivable, net - current $ 647.2 $ 1,042.2 $ (395.0 ) Accounts receivable, net - non-current (1) 176.1 257.7 (81.6 ) Contract asset - current (2) 97.3 78.3 19.0 Contract asset - non-current (3) 72.1 71.5 0.6 Deferred revenue - current 146.5 183.8 (37.3 ) Deferred revenue - non-current 62.8 70.5 (7.7 ) __________________ (1) Included in accounts receivable within non-current other assets in the consolidated balance sheets. (2) Included in prepaid expenses and other within other current assets in the consolidated balance sheets. (3) Included in prepaid expenses and other within non-current other assets in the consolidated balance sheets. Contract assets relate to the Company’s conditional right to consideration for completed performance under the contract (e.g., unbilled receivables). Amounts relate primarily to contractual payment holdbacks in cases in which the Company is required to deliver additional episodes or seasons of television content in order to receive payment, complete certain administrative activities, such as guild filings, or allow the Company's customers' audit rights to expire. The change in balance of contract assets is primarily due to the satisfaction of the condition related to payment holdbacks. Deferred revenue relates primarily to customer cash advances or deposits received prior to when the Company satisfies the corresponding performance obligation. Revenues of $143.0 million were recognized during the year ended March 31, 2019 , related to the balance of deferred revenue at April 1, 2018. Summarized Balance Sheet and Statement of Operations Comparison of New and Prior Revenue Recognition Guidance The following table presents the line items impacted by the adoption of the new revenue recognition guidance (described in Note 1 ) on the consolidated balance sheet and statement of operations: March 31, 2019 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Balance Sheet Information: (Amounts in millions) Assets Accounts receivable, net - current $ 647.2 $ (6.2 ) $ 641.0 Other assets - current 267.2 (97.3 ) 169.9 Other assets - non-current 436.1 (0.5 ) 435.6 Investment in films and television programs and program rights, net 1,672.0 37.3 1,709.3 Liabilities Accounts payable and accrued liabilities 531.2 (58.7 ) 472.5 Participations and residuals - current 408.5 1.9 410.4 Deferred revenue - current 146.5 (0.6 ) 145.9 Deferred revenue - non-current 62.8 0.8 63.6 Deferred tax liabilities 56.5 (1.9 ) 54.6 Equity Retained earnings 208.7 (8.2 ) 200.5 Year Ended March 31, 2019 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Statement of Operations Information: (Amounts in millions) Revenues $ 3,680.5 $ 44.9 $ 3,725.4 Direct operating 2,028.2 31.0 2,059.2 Operating income 130.0 13.9 143.9 Interest and other income 12.0 — 12.0 Loss before income taxes (308.1 ) 13.9 (294.2 ) Income tax benefit 8.5 (3.4 ) 5.1 Net loss (299.6 ) 10.5 (289.1 ) |
Capital Stock
Capital Stock | 12 Months Ended |
Mar. 31, 2019 | |
Equity and Share-based Compensation [Abstract] | |
Capital Stock | Capital Stock (a) Common Shares The Company had 500 million authorized Class A voting shares, and 500 million authorized Class B non-voting shares, at March 31, 2019 and March 31, 2018 . As discussed in Note 2 , immediately prior to the consummation of the December 8, 2016 Starz Merger, the Company effected the reclassification of its capital stock, pursuant to which each previously existing Lionsgate common share was converted into 0.5 shares of a newly issued Class A voting shares and 0.5 shares of a newly issued Class B non-voting shares, subject to the terms and conditions of the Merger Agreement, resulting in 74.2 million of Class A voting shares and 74.2 million of Class B non-voting shares. The table below outlines common shares reserved for future issuance: March 31, March 31, (Amounts in millions) Stock options and equity-settled SARs outstanding 34.6 32.1 Restricted stock and restricted share units — unvested 2.0 2.2 Common shares available for future issuance under the 2017 Plan (as defined below) 6.7 10.3 Shares issuable upon conversion of April 2013 1.25% Notes — 2.1 Shares reserved for future issuance 43.3 46.7 (b) Share Repurchases On February 2, 2016, the Company's Board of Directors authorized the Company to increase its previously announced share repurchase plan from a total authorization of $300 million to $468 million . During the years ended March 31, 2019, 2018 and 2017 the Company did not repurchase any common shares. To date, approximately $283.2 million common shares have been repurchased, leaving approximately $184.7 million of authorized potential purchases. (c) Dividends The amount of dividends, if any, that the Company pays to its shareholders is determined by its Board of Directors, at its discretion, and is dependent on a number of factors, including our financial position, results of operations, cash flows, capital requirements and restrictions under its credit agreements, and shall be in compliance with applicable law. In November 2018, the Company's Board of Directors suspended the Company's quarterly cash dividend to focus on driving long-term shareholder value by investing in global growth opportunities for Starz, while also strengthening its balance sheet. During the fiscal years ended March 31, 2019 , 2018 and 2017 , the Company's Board of Directors declared the following quarterly cash dividends: Dividends Declared Per Common Share Total Amount Payment Date (in millions) Fiscal Year 2019: Second quarter ended September 30, 2018 $0.09 $ 19.3 November 8, 2018 First quarter ended June 30, 2018 $0.09 19.2 August 9, 2018 Total cash dividends declared in fiscal year 2019 $0.18 $ 38.5 Fiscal Year 2018: Fourth quarter ended March 31, 2018 $0.09 $ 19.1 May 1, 2018 Fiscal Year 2017: First quarter ended June 30, 2016 $0.09 $ 13.3 August 5, 2016 As of March 31, 2019 , the Company was not limited in its capacity to pay dividends under the Senior Credit Facilities Amended Credit Agreement and the indenture governing the 5.875% Senior Notes and the 6.375% Senior Notes (see Note 7 ). (d) Share-based Compensation On September 12, 2017, the Company’s shareholders approved the Lions Gate Entertainment Corp. 2017 Performance Incentive Plan (the “2017 Plan”) previously adopted by the Board of Directors (the “Board”) of the Company. The types of awards that may be granted under the 2017 Plan include stock options, share appreciation rights ("SARs"), restricted stock, restricted share units, stock bonuses and other forms of awards granted or denominated in Class A voting shares and Class B non-voting shares ("Common Shares") or units of Common Shares, as well as certain cash bonus awards. Persons eligible to receive awards under the 2017 Plan include 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. Stock options are generally granted at exercise prices equal to or exceeding the market price of the Company's Common Shares at the date of grant. Substantially all stock options vest ratably over one to five years from the grant date based on continuous service and expire seven to ten years from the date of grant. Restricted stock and restricted share units generally vest ratably over one to four years based on continuous service. The Company satisfies stock option exercises and vesting of restricted stock and restricted share units with newly issued shares. The measurement of all share-based awards uses a fair value method and the recognition of the related share-based compensation expense in the consolidated financial statements is recorded over the requisite service period. Further, the Company estimates forfeitures for share-based awards that are not expected to vest. As share-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The Company recognized the following share-based compensation expense during the years ended March 31, 2019 , 2018 and 2016: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Compensation Expense: Stock options $ 23.0 $ 43.1 $ 42.5 Restricted share units and other share-based compensation 24.7 36.2 34.0 Share appreciation rights 4.4 6.3 0.6 52.1 85.6 77.1 Impact of accelerated vesting on equity awards (1) 16.0 2.9 2.4 Total share-based compensation expense $ 68.1 $ 88.5 $ 79.5 Tax impact (2) (15.7 ) (29.6 ) (28.0 ) Reduction in net income $ 52.4 $ 58.9 $ 51.5 ___________________ (1) Represents the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. (2) Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements. Share-based compensation expense, by expense category, consisted of the following: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Compensation Expense: Direct operating $ 1.1 $ 1.1 $ 1.2 Distribution and marketing 0.4 0.9 0.4 General and administration 50.6 83.6 75.5 Restructuring and other 16.0 2.9 2.4 $ 68.1 $ 88.5 $ 79.5 Stock Options The following table sets forth the stock option and equity-settled share appreciation rights activity during the year ended March 31, 2019 : Stock Options and Equity-Settled SARs Class A Voting Shares Class B Non-Voting Shares Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (Amounts in millions, except for weighted-average exercise price and years) Outstanding at March 31, 2018 8.6 $26.93 23.5 $20.56 Granted 0.2 $28.07 4.2 $21.52 Exercised — (1) $15.76 (0.7 ) $10.78 Forfeited or expired (0.4 ) $33.42 (0.8 ) $29.00 Outstanding at March 31, 2019 8.4 $26.70 4.97 $ 0.1 26.2 $20.72 4.17 $ 25.4 Vested or expected to vest at March 31, 2019 8.4 $26.71 4.96 $ 0.1 25.8 $20.70 4.13 $ 25.4 Exercisable at March 31, 2019 6.1 $27.91 4.18 $ 0.1 19.1 $19.72 2.74 $ 25.3 __________________ (1) Represents less than 0.1 million shares. The fair value of each option award is estimated on the date of grant using a closed-form option valuation model (Black-Scholes). The following table presents the weighted average grant-date fair value of options granted in the years ended March 31, 2019 , 2018 and 2017 , and the weighted average applicable assumptions used in the Black-Scholes option-pricing model for stock options and share-appreciation rights granted during the years then ended: Year Ended March 31, 2019 2018 2017 Weighted average fair value of grants $5.48 $8.38 $6.88 Weighted average assumptions: Risk-free interest rate (1) 2.2% - 3.1% 1.7% - 2.7% 1.2% - 2.4% Expected option lives (in years) (2) 1 - 7 years 4 - 6 years 4 - 10 years Expected volatility for options (3) 34% 35% 35% Expected dividend yield (4) 0.0% - 1.7% 0.0% - 1.5% 0.0% - 1.8% ____________________________ (1) The risk-free rate assumed in valuing the options is based on the U.S. Treasury Yield curve in effect applied against the expected term of the option at the time of the grant. (2) The expected term of options granted represents the period of time that options granted are expected to be outstanding. (3) Expected volatilities are based on implied volatilities from traded options on the Company’s shares, historical volatility of the Company’s shares and other factors. (4) The expected dividend yield is estimated by dividing the expected annual dividend by the market price of the Company's shares at the date of grant. The total intrinsic value of options exercised during the year ended March 31, 2019 was $5.3 million ( 2018 — $36.9 million , 2017 — $30.0 million ). During the year ended March 31, 2019 , less than 0.1 million shares ( 2018 — 0.1 million shares, 2017 — 0.8 million shares) were cancelled to fund withholding tax obligations upon exercise of options. Restricted Share Units The following table sets forth the restricted share unit and restricted stock activity during the year ended March 31, 2019 : Restricted Share Units Restricted Stock Class A Voting Shares Weighted-Average Grant-Date Fair Value Class B Non-Voting Shares Weighted-Average Grant-Date Fair Value Class B Non-Voting Shares Weighted-Average Grant-Date Fair Value (Amounts in millions, except for weighted-average grant date fair value) Outstanding at March 31, 2018 0.2 $28.49 1.5 $28.71 0.5 $25.70 Granted — (1) $23.51 1.3 $19.88 — — Vested (0.1 ) $29.05 (0.9 ) $26.14 (0.2 ) $25.70 Forfeited — (1) $24.83 (0.3 ) $23.24 — (1) $25.70 Outstanding at March 31, 2019 0.1 $25.68 1.6 $24.01 0.3 $25.70 __________________ (1) Represents less than 0.1 million shares. The fair values of restricted stock and restricted share units are determined based on the market value of the shares on the date of grant. The total fair value of restricted share units and restricted stock vested during the year ended March 31, 2019 was $33.7 million (2018 - $41.6 million , 2017 - $60.7 million ). The following table summarizes the total remaining unrecognized compensation cost as of March 31, 2019 related to non-vested stock options and restricted stock and restricted share units and the weighted average remaining years over which the cost will be recognized: Total Unrecognized Compensation Cost Weighted Average Remaining Years (Amounts in millions) Stock Options $ 43.4 2.8 Restricted Stock and Restricted Share Units 31.9 2.0 Total $ 75.3 Under the Company’s stock option and long term incentive plans, the Company withholds shares to satisfy minimum statutory federal, state and local tax withholding obligations arising from the vesting of restricted stock and restricted share units. During the year ended March 31, 2019 , 0.5 million shares ( 2018 — 0.7 million shares, 2017 — 1.0 million shares) were withheld upon the vesting of restricted stock and restricted share units. The Company becomes entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the stock options and restricted share units when vesting or exercise occurs, the restrictions are released and the shares are issued. Restricted share units are forfeited if the employees are terminated prior to vesting. The Company recognized excess tax deficiencies of $14.9 million associated with its equity awards in its tax benefit for the year ended March 31, 2019 ( 2018 — benefit of $5.2 million , 2017 — none ). Other Share-Based Compensation Pursuant to the terms of certain employment agreements, during the year ended March 31, 2019 , the Company granted the equivalent of $2.3 million ( 2018 - $0.8 million , 2017 - $1.1 million ) in shares to certain employees through the term of their employment contracts, which were recorded as compensation expense in the applicable period. Pursuant to this arrangement, for the year ended March 31, 2019 , the Company issued 0.1 million shares ( 2018 - less than 0.1 million shares, 2017 - less than 0.1 million shares), net of shares withheld to satisfy minimum tax withholding obligations. (e) Other In connection with an amendment of an affiliation agreement with a customer and effective upon the close of the Starz Merger, the Company agreed to issue to the customer three $16.67 million annual installments of equity (or cash at the Company'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. During the year ended March 31, 2019, Lionsgate issued to the customer 0.4 million Class A voting shares valued at $8.3 million and 0.5 million Class B voting shares valued at $8.3 million (2018 — 0.3 million Class A voting shares valued at $8.3 million and 0.3 million Class B non-voting shares valued at $8.3 million ). |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes On December 22, 2017, Tax Act was signed into law, making significant changes to the taxation of U.S. business entities. The Tax Act reduced the U.S. corporate income tax rate from 35% to 21% , imposed a one-time transition tax in connection with the move from a worldwide tax system to a territorial tax system, provided for accelerated deductions for certain U.S. film production costs, imposed limitations on certain tax deductions such as executive compensation in future periods, and included numerous other provisions. As the Company has a March 31 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 31.5% for the fiscal year ended March 31, 2018, and 21% for subsequent fiscal years. The Company's U.S. tax provision consists primarily of deferred tax benefits calculated at the 21% tax rate. In connection with the Tax Act, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance to companies that have not completed their accounting for the income tax effects of the Tax Act. Under SAB 118, provisional amounts can be recorded to the extent a reasonable estimate can be made. Additional tax effects and adjustments to previously recorded provisional amounts can be recorded upon obtaining, preparing, or analyzing additional information (including computations) within one year from the enactment date of the Tax Act. The Company previously made provisional estimates of the effects of the Tax Act, such as the measurement of deferred tax assets and liabilities, the tax effects of executive compensation, the one-time transition tax, net operating loss carryovers, foreign tax credits, and accelerated deductions for U.S. film costs. The estimated impact of the Tax Act was based on a preliminary review of the new law, subject to revision based upon further analysis and interpretation of the Tax Act. During the quarter ended December 31, 2018, the Company completed its analysis and its accounting for the Tax Act, and there were no material adjustments to its provisional estimates. The Company's income tax provision (benefit) differs from the federal statutory rate multiplied by pre-tax income (loss) due to the mix of the Company's pre-tax income (loss) generated across the various jurisdictions in which the Company operates and the tax deductions generated by the Company's capital structure. However, the Company's income tax benefit for the fiscal year ended March 31, 2019 was offset by valuation allowances against certain U.S. and foreign deferred tax assets, certain minimum taxes imposed by the Tax Act, and the nondeductible portion of shareholder litigation settlements. The Company's income tax provision (benefit) can be 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, further interpretation and legislative guidance regarding the new Tax Act, changes in valuation allowances on its deferred tax assets, tax planning strategies available to the Company, and other discrete items. The components of pretax income, net of intercompany eliminations, are as follows: Year Ended March 31, 2019 2018 2017 (Amounts in millions) United States $ (505.7 ) $ (824.1 ) $ (409.2 ) International 197.6 972.8 274.8 $ (308.1 ) $ 148.7 $ (134.4 ) The Company's U.S. pre-tax losses and international pre-tax income are primarily driven by non-operating, intercompany items resulting from the Company's internal capital structure. The Company's capital structure generally provides foreign affiliate dividends to its Canadian parent company (i.e., Lionsgate) and interest-related tax deductions to its U.S. companies. The Company's international pre-tax income may be significantly impacted by these foreign affiliate dividends related to its internal capital structure. The Company’s current and deferred income tax provision (benefits) are as follows: Year Ended March 31, 2019 2018 2017 Current provision (benefit): (Amounts in millions) Federal $ 9.1 $ (17.6 ) $ 7.8 States (0.7 ) (4.3 ) 2.2 International 6.7 2.0 4.5 Total current provision (benefit) $ 15.1 $ (19.9 ) $ 14.5 Deferred benefit: Federal $ (48.2 ) $ (269.0 ) $ (143.3 ) States 5.8 (18.5 ) (9.9 ) International 18.8 (12.0 ) (10.2 ) Total deferred benefit (23.6 ) (299.5 ) (163.4 ) Total benefit for income taxes $ (8.5 ) $ (319.4 ) $ (148.9 ) The differences between income taxes expected at U.S. statutory income tax rates and the income tax provision are as set forth below: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Income taxes computed at Federal statutory rate $ (64.7 ) $ 46.8 $ (47.1 ) Foreign affiliate dividends (37.5 ) (329.1 ) (84.2 ) Foreign operations subject to different income tax rates (235.7 ) 7.1 (14.6 ) State income tax (8.5 ) (21.2 ) (6.0 ) Remeasurement of opening U.S. deferred tax liabilities due to the Tax Act — (165.0 ) — Additional remeasurements of originating deferred tax assets and liabilities — 75.6 — Transaction costs — — 7.3 Permanent differences 6.8 3.5 (0.5 ) Nondeductible settlement costs 16.9 — — Other 0.3 (5.3 ) (2.3 ) Increase (decrease) in valuation allowance 313.9 68.2 (1.5 ) Total benefit for income taxes $ (8.5 ) $ (319.4 ) $ (148.9 ) For the years ended March 31, 2019, 2018, and 2017, the tax provision includes certain foreign affiliate dividends in our Canadian jurisdiction that can be received without being subject to tax under Canadian tax law. Additionally, as a result of an internal capital restructuring during the year ended March 31, 2019, the Company generated a foreign net operating loss carryforward under local tax law which was offset by a valuation allowance based on the Company's assessment. Although the Company is incorporated under Canadian law, the majority of its global operations are currently subject to tax in the U.S. As a result, the Company believes it is more appropriate to use the U.S. Federal statutory rate in its reconciliation of the statutory rate to its reported income tax rate. The income tax effects of temporary differences between the book value and tax basis of assets and liabilities are as follows: March 31, 2019 March 31, 2018 (Amounts in millions) Deferred tax assets: Net operating losses $ 609.5 $ 336.7 Foreign tax credits 74.2 68.3 Investment in film and television obligations 79.0 101.5 Accounts payable 78.9 96.4 Other assets 71.7 59.0 Reserves 13.9 21.4 Total deferred tax assets 927.2 683.3 Valuation allowance (401.1 ) (73.2 ) Deferred tax assets, net of valuation allowance 526.1 610.1 Deferred tax liabilities: Intangible assets (438.4 ) (475.5 ) Fixed assets (8.6 ) (19.5 ) Accounts receivable (110.6 ) (150.7 ) Other (5.2 ) (17.5 ) Total deferred tax liabilities $ (562.8 ) $ (663.2 ) Net deferred tax liabilities $ (36.7 ) $ (53.1 ) The Company has recorded valuation allowances for certain deferred tax assets, which are primarily related to U.S. and foreign net operating loss carryforwards and U.S. foreign tax credit carryforwards as sufficient uncertainty exists regarding the future realization of these assets. At March 31, 2019 , the Company had U.S. net operating loss carryforwards ("NOLs") of approximately $1,367.9 million available to reduce future federal income taxes which expire beginning in 2029 through 2038. At March 31, 2019 , the Company had state NOLs of approximately $791.3 million available to reduce future state income taxes which expire in varying amounts beginning 2021. At March 31, 2019 , the Company had Canadian loss carryforwards of $106.9 million which will expire beginning in 2034. At March 31, 2019 , the Company had Luxembourg loss carryforwards of $947.0 million which will expire beginning in 2036. In addition, at March 31, 2019 , the Company had U.S. credit carryforwards related to foreign taxes paid of approximately $74.2 million to offset future federal income taxes that will expire beginning in 2021. The following table summarizes the changes to the gross unrecognized tax benefits for the years ended March 31, 2019 , 2018, and 2017: Amounts in millions Gross unrecognized tax benefits at March 31, 2016 $ 4.5 Increases related to prior year tax positions 14.2 Decreases related to prior year tax positions (4.5 ) Settlements — Lapse in statute of limitations — Gross unrecognized tax benefits at March 31, 2017 14.2 Increases related to current year tax position 0.1 Increases related to prior year tax positions 11.5 Decreases related to prior year tax positions (8.2 ) Settlements — Lapse in statute of limitations — Gross unrecognized tax benefits at March 31, 2018 17.6 Increases related to current year tax position 0.3 Increases related to prior year tax positions 2.5 Decreases related to prior year tax positions (1.0 ) Settlements (1.8 ) Lapse in statute of limitations (0.8 ) Gross unrecognized tax benefits at March 31, 2019 $ 16.8 For the years ended March 31, 2019 , 2018, and 2017, interest and penalties were not significant. The Company records interest and penalties on unrecognized tax benefits as part of income tax provision. The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. With a few exceptions, the Company is subject to income tax examination by U.S. and state tax authorities for the fiscal years ended March 31, 2008 and forward. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where NOLs were generated and carried forward, and make adjustments up to the amount of the NOLs. Currently, audits are occurring in federal and various state and local tax jurisdictions. In addition, the Company's Canadian tax returns are under examination for the years ended March 31, 2014 and March 31, 2015. The total amount of unrecognized tax benefits as of March 31, 2019 that, if realized, would affect the Company's tax benefit (provision) are $17.6 million . The Company estimates that approximately $3.8 million in unrecognized tax benefits may be realized in the next 12 months. |
Restructuring and Other
Restructuring and Other | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | Restructuring and Other Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable, and were as follows for the years ended March 31, 2019, 2018 and 2017: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Restructuring and other: Severance (1) Cash $ 31.5 $ 21.5 $ 26.7 Accelerated vesting on equity awards (see Note 13) 16.0 2.9 2.4 Total severance costs 47.5 24.4 29.1 Transaction and related costs (2) 30.5 22.2 59.6 Development expense (3) — 13.2 — Total restructuring and other 78.0 59.8 88.7 Programming and content charges (4) 35.1 — — Total restructuring and other and programming and content charges $ 113.1 $ 59.8 $ 88.7 _______________________ (1) Severance costs in the fiscal years ended March 31, 2019, 2018 and 2017 were primarily related to restructuring activities in connection with recent acquisitions, and other cost-saving initiatives. Of the severance costs, $21.2 million is recorded as a liability and is expected to be paid by March 31, 2020. (2) Transaction and related costs in the fiscal years ended March 31, 2019, 2018 and 2017 reflect transaction, integration and legal costs incurred associated with certain strategic transactions and legal matters. In fiscal 2019, these costs were primarily related to the legal fees associated with the Starz class action lawsuits and other matters and, to a lesser extent, costs related to the acquisition of 3 Arts Entertainment and other strategic transactions. In fiscal 2018, these costs were primarily related to the sale of EPIX (see Note 5 ), the legal fees associated with the Starz class action lawsuits and other matters, and the integration of Starz. In fiscal 2017, these costs were primarily related to the Starz Merger, the legal fees associated with the Starz class action lawsuits, and an arbitration award of $5.8 million and related legal expenses. (3) Development expense in the fiscal year ended March 31, 2018 represents write-downs resulting from the restructuring of the Motion Picture business in connection with the acquisition of Good Universe and new management's decisions around the creative direction on certain development projects which were abandoned in the fiscal year ended March 31, 2018. (4) During the fourth quarter of the fiscal year ended March 31, 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million in fiscal 2019, which are included in direct operating expense in the consolidated statement of operations. Changes in the restructuring and other severance liability were as follows for the years ended March 31, 2019, 2018 and 2017: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Severance liability Beginning balance $ 14.7 $ 22.2 $ 0.6 Accruals 31.5 21.5 26.7 Severance payments (25.0 ) (27.9 ) (10.6 ) Other (1) — (1.1 ) 5.5 Ending balance $ 21.2 $ 14.7 $ 22.2 _______________________ (1) In the year ended March 31, 2018, other represents noncash reductions related to the settlement of certain liabilities relating to employee compensation with equity instruments. In the year ended March 31, 2017, other represents a severance liability acquired in connection with the Starz Merger. |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2019 | |
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. The Company has three reportable business segments: (1) Motion Picture, (2) Television Production and (3) Media Networks. Motion Picture. Motion Picture consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired. Television Production. 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. Television Production includes the licensing of Starz original series productions to Starz Networks and STARZPLAY International, and the ancillary market distribution of Starz original productions and licensed product. Additionally, the results of operations of 3 Arts Entertainment is included in the Television Production segment from the acquisition date of May 29, 2018 (see Note 2 ). Media Networks. Media Networks consists of the following product lines (i) Starz Networks, which includes the domestic licensing of premium subscription video programming to Distributors, and on a direct-to-consumer basis (ii) STARZPLAY International, which represents revenues primarily from the OTT distribution of the Company's STARZ branded premium subscription video services internationally and (iii) Streaming Services, which represents the Lionsgate legacy start-up direct to consumer streaming services on its SVOD platforms. 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 programming (including Starz original productions) from the Motion Picture and Television Production segments to the Media Networks segment. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses, assets, or liabilities recognized by the segment that is the counterparty to the transaction) are eliminated in consolidation and, therefore, do not affect consolidated results. Segment information is presented in the table below. Due to the Starz Merger, fiscal 2017 includes the results of operations from Starz from the acquisition date of December 8, 2016 (see Note 2 ). Year Ended March 31, 2019 2018 2017 (Amounts in millions) Segment revenues Motion Picture $ 1,464.4 $ 1,822.1 $ 1,920.6 Television Production 920.9 1,033.2 892.8 Media Networks 1,461.0 1,411.2 426.3 Intersegment eliminations (165.8 ) (137.4 ) (38.2 ) $ 3,680.5 $ 4,129.1 $ 3,201.5 Intersegment revenues Motion Picture $ 10.9 $ 10.7 $ 6.6 Television Production 154.8 126.4 30.7 Media Networks 0.1 0.3 0.9 $ 165.8 $ 137.4 $ 38.2 Gross contribution Motion Picture $ 234.1 $ 292.6 $ 237.8 Television Production 109.6 151.3 107.4 Media Networks 534.0 530.0 175.3 Intersegment eliminations (6.3 ) (5.5 ) (10.4 ) $ 871.4 $ 968.4 $ 510.1 Segment general and administration Motion Picture $ 105.6 $ 113.2 $ 105.3 Television Production 43.5 40.3 32.1 Media Networks 97.7 100.9 45.0 $ 246.8 $ 254.4 $ 182.4 Segment profit Motion Picture $ 128.5 $ 179.4 $ 132.5 Television Production 66.1 111.0 75.3 Media Networks 436.3 429.1 130.3 Intersegment eliminations (6.3 ) (5.5 ) (10.4 ) $ 624.6 $ 714.0 $ 327.7 The Company's primary measure of segment performance is segment profit. Segment profit is defined as gross contribution (revenues, less direct operating and distribution and marketing expense) less segment general and administration expenses. Segment profit excludes corporate general and administrative expense, restructuring and other costs, share-based compensation, other than annual bonuses granted in immediately vested stock awards when applicable, certain programming and content charges as a result of management changes and associated changes in strategy, and purchase accounting and related adjustments, when applicable. The Company believes the presentation of segment profit is relevant and useful for investors because it allows investors to view segment performance in a manner similar to the primary method used by the Company's management and enables them to understand the fundamental performance of the Company's businesses. The reconciliation of total segment profit to the Company’s income (loss) before income taxes is as follows: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Company’s total segment profit $ 624.6 $ 714.0 $ 327.7 Corporate general and administrative expenses (104.2 ) (110.3 ) (92.6 ) Adjusted depreciation and amortization (1) (41.1 ) (39.3 ) (22.8 ) Restructuring and other (2) (78.0 ) (59.8 ) (88.7 ) Programming and content charges (3) (35.1 ) — — Adjusted share-based compensation expense (4) (52.1 ) (85.6 ) (77.1 ) Purchase accounting and related adjustments (5) (184.1 ) (170.3 ) (62.8 ) Operating income (loss) 130.0 248.7 (16.3 ) Interest expense (198.9 ) (193.7 ) (115.2 ) Shareholder litigation settlements (114.1 ) — — Interest and other income 12.0 10.4 6.4 Other expense (4.7 ) — — Loss on extinguishment of debt (1.9 ) (35.7 ) (40.4 ) Gain (loss) on investments (87.6 ) 171.8 20.4 Equity interests income (loss) (42.9 ) (52.8 ) 10.7 Income (loss) before income taxes $ (308.1 ) $ 148.7 $ (134.4 ) ___________________ (1) Adjusted depreciation and amortization represents depreciation and amortization as presented on our 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 recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Depreciation and amortization $ 163.4 $ 159.0 $ 63.1 Less: Amount included in purchase accounting and related adjustments (122.3 ) (119.7 ) (40.3 ) Adjusted depreciation and amortization $ 41.1 $ 39.3 $ 22.8 (2) Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 15 ). (3) During the fourth quarter of the fiscal year ended March 31, 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million in fiscal 2019, which are included in direct operating expense in the consolidated statement of operations. (4) The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Total share-based compensation expense $ 68.1 $ 88.5 $ 79.5 Less: Amount included in restructuring and other (i) (16.0 ) (2.9 ) (2.4 ) Adjusted share-based compensation $ 52.1 $ 85.6 $ 77.1 (i) Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. (5) Purchase accounting and related adjustments represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 18.0 $ 44.5 $ 17.5 General and administrative expense 43.8 6.1 5.0 Depreciation and amortization 122.3 119.7 40.3 $ 184.1 $ 170.3 $ 62.8 (6) Shareholder litigation settlements of $114.1 million in the year ended March 31, 2019 includes the following: (i) $54.8 million for the net expense recorded for the settlement of the Fiduciary Litigation (representing the settlement amount of $92.5 million , net of aggregate insurance reimbursement of $37.8 million and (ii) $59.3 million related to the Appraisal Litigation, representing the amount by which the settlement amount of approximately $964 million exceeded the previously accrued (at date of acquisition) dissenting shareholders' liability plus interest through the date agreed in the settlement. See Note 17 . See Note 12 for revenues by media or product line as broken down by segment for the fiscal years ended March 31, 2019 , 2018 , and 2017 . The following table reconciles segment general and administration to the Company’s total consolidated general and administration expense: Year Ended March 31, 2019 2018 2017 (Amounts in millions) General and administration Segment general and administrative expenses $ 246.8 $ 254.4 $ 182.4 Corporate general and administrative expenses 104.2 110.3 92.6 Share-based compensation expense included in general and administrative expense 50.6 83.6 75.4 Purchase accounting and related adjustments 43.8 6.1 5.0 $ 445.4 $ 454.4 $ 355.4 The reconciliation of total segment assets to the Company’s total consolidated assets is as follows: March 31, March 31, (Amounts in millions) Assets Motion Picture $ 1,694.5 $ 1,757.4 Television Production 1,394.2 1,400.5 Media Networks 4,850.3 5,166.5 Other unallocated assets (1) 469.9 643.2 $ 8,408.9 $ 8,967.6 _____________________ (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 years ended March 31, 2019 , 2018 and 2017: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Acquisition of investment in films and television programs and program rights Motion Picture $ 388.4 $ 462.0 $ 412.7 Television Production (1) 681.6 706.8 506.6 Media Networks 594.3 483.5 218.6 Intersegment eliminations (194.3 ) (125.9 ) (45.9 ) $ 1,470.0 $ 1,526.4 $ 1,092.0 The following table sets forth capital expenditures, as broken down by segment for the years ended March 31, 2019 , 2018 and 2017: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Capital expenditures Motion Picture $ — $ — $ — Television Production 3.2 1.4 1.8 Media Networks 30.0 31.5 10.6 Corporate (1) 10.6 13.0 12.8 $ 43.8 $ 45.9 $ 25.2 _____________________ (1) Represents unallocated capital expenditures primarily related to the Company's corporate headquarters. Revenue by geographic location, based on the location of the customers, with no other foreign country individually comprising greater than 10% of total revenue, is as follows: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Revenue Canada $ 47.9 $ 48.3 $ 56.0 United States 3,124.6 3,383.0 2,431.9 Other foreign 508.0 697.8 713.6 $ 3,680.5 $ 4,129.1 $ 3,201.5 Long-lived assets by geographic location are as follows: March 31, 2019 March 31, 2018 (Amounts in millions) Long-lived assets (1) Canada $ — $ — United States 1,737.8 1,824.5 Other foreign 93.3 34.6 $ 1,831.1 $ 1,859.1 _____________ (1) Long-lived assets represents total assets less the following: current assets, investments, long-term receivables, intangible assets, goodwill and deferred tax assets. For the year ended March 31, 2019, the Company had revenue from one individual customer which represented greater than 10% of consolidated revenues, amounting to $401.9 million , primarily related to the Company's Media Networks segment (2018 - revenue from one individual customer which represented greater than 10% of consolidated revenues, amounting to $413.2 million , primarily related to the Company's Media Networks segment). For the year ended March 31, 2017, no individual customer represented greater than 10% of consolidated revenue. As of March 31, 2019, the Company had accounts receivable due from two customers which individually represented greater than 10% of total consolidated accounts receivable. Accounts receivable due from these two customers amounted to 31% of consolidated gross accounts receivable (current and non-current) at March 31, 2019, or gross accounts receivable of approximately $269.9 million (2018 - one individual customer represented 32% of consolidated gross accounts receivable, or gross accounts receivable of approximately $419.2 million ). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table sets forth our future annual repayment of contractual commitments as of March 31, 2019 : Year Ended March 31, 2020 2021 2022 2023 2024 Thereafter Total (Amounts in millions) Contractual commitments by expected repayment date (off-balance sheet arrangements) Film obligation and production loan commitments (1) $ 648.6 $ 225.4 $ 108.7 $ 32.0 $ 8.8 $ 5.6 $ 1,029.1 Interest payments (2) 154.3 151.6 148.1 144.1 112.8 104.6 815.5 Operating lease commitments 37.2 36.5 35.8 35.5 20.1 52.3 217.4 Other contractual obligations 128.8 44.5 26.2 10.7 0.9 — 211.1 Total future commitments under contractual obligations (3) $ 968.9 $ 458.0 $ 318.8 $ 222.3 $ 142.6 $ 162.5 $ 2,273.1 ____________________________ (1) Film obligation commitments include distribution and marketing commitments, minimum guarantee commitments and program rights commitments. Distribution and marketing commitments represent contractual commitments for future expenditures associated with distribution and marketing of films which we will distribute. The payment dates of these amounts are primarily based on the anticipated release date of the film. Minimum guarantee commitments represent contractual commitments related to the purchase of film rights for pictures to be delivered in the future. Program rights commitments represent contractual commitments under programming license agreements related to films that are not available for exhibition until some future date (see below for further details). Production loan commitments represent amounts committed for future film production and development to be funded through production financing and recorded as a production loan liability when incurred. Future payments under these commitments are based on anticipated delivery or release dates of the related film or contractual due dates of the commitment. The amounts include estimated future interest payments associated with the commitment. (2) Includes cash interest payments on the Company's debt, excluding the interest payments on the revolving credit facility as future amounts are not fixed or determinable due to fluctuating balances and interest rates. (3) Not included in the amounts above are $127.6 million of redeemable noncontrolling interest, as future amounts and timing are subject to a number of uncertainties such that we are unable to make sufficiently reliable estimations of future payments (see Note 11 ). The Company is obligated to pay programming fees for all qualifying films that are released theatrically in the U.S. by Sony’s Columbia Pictures, Screen Gems, Sony Pictures Classics and TriStar labels through 2021. The Company does not license films produced by Sony Pictures Animation. The programming fees to be paid by the Company to Sony are based on the quantity and domestic theatrical exhibition receipts of qualifying films. Since the term of the output programming agreement with Sony applies to all films released theatrically through December 31, 2021, the Company is obligated to pay fees for films that have not yet been released in theaters. The Company is unable to estimate the amounts to be paid under these agreements for films that have not yet been released in theaters, however, such amounts are expected to be significant. The Company has also entered into agreements with a number of other motion picture producers and is obligated to pay fees for the rights to exhibit certain films that are released by these producers. Operating Leases. The Company has operating leases for offices, back-up transponder capacity and equipment. Certain of the Company's operating leases for its Corporate and United Kingdom offices include certain lease and leasehold improvement incentives. These amounts and the required lease payments are aggregated and amortized on a straight line basis to rent expense over the lease period. The operating lease for the Company's principal office expires in August 2023. The Company incurred rental expense of $27.0 million during the year ended March 31, 2019 (2018 — $20.7 million ; 2017 — $15.6 million ). Multiemployer Benefit Plans. The Company contributes to various multiemployer pension plans under the terms of collective bargaining agreements that cover its union-represented employees. The Company makes periodic contributions to these plans in accordance with the terms of applicable collective bargaining agreements and laws but does not sponsor or administer these plans. The risks of participating in these multiemployer pension plans are different from single-employer pension plans such that (i) contributions made by the Company to the multiemployer pension plans may be used to provide benefits to employees of other participating employers; (ii) if the Company chooses to stop participating in certain of these multiemployer pension plans, it may be required to pay those plans an amount based on the underfunded status of the plan, which is referred to as a withdrawal liability; and (iii) actions taken by a participating employer that lead to a deterioration of the financial health of a multiemployer pension plan may result in the unfunded obligations of the multiemployer pension plan to be borne by its remaining participating employers. The Company does not participate in any multiemployer benefit plans that are considered to be individually significant to the Company, and as of March 31, 2019 , all except two of the largest plans in which the Company participates were funded at a level of 80% or greater. The other two plans, the Motion Picture Industry Pension Plan and the Screen Actors Guild - Producers Pension Plan were funded at 66.80% and 76.97% , respectively for the 2018 plan year, but neither of these plans were considered to be in endangered, critical, or critical and declining status in the 2018 plan year. Total contributions made by the Company to multiemployer pension and other benefit plans for the years ended March 31, 2019 , 2018 and 2017 were $56.9 million , $70.9 million , and $59.4 million , respectively. If the Company ceases to be obligated to make contributions or otherwise withdraws from participation in any of these plans, applicable law requires the Company to fund its allocable share of the unfunded vested benefits, which is known as a withdrawal liability. In addition, actions taken by other participating employers may lead to adverse changes in the financial condition of one of these plans, which could result in an increase in the Company's withdrawal liability. Contingencies From time to time, the Company is involved in certain claims and legal proceedings arising in the normal course of business. In addition, the matters discussed below under the captions Fiduciary Litigation and Appraisal Litigation have arisen in connection with the Starz Merger. The Company establishes an accrued liability for claims and legal proceedings when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Due to the inherent difficulty of predicting the outcome of claims and legal proceedings, the Company often cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, if any, related to each pending matter may be. Accordingly, at this time, the Company has determined a loss related to these matters in excess of accrued liabilities is reasonably possible, however a reasonable estimate of the possible loss or range of loss cannot be made at this time. Fiduciary 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 (the "Fiduciary Litigation"). On August 22, 2018, the parties to the Fiduciary Litigation reached an agreement in principle providing for the settlement of the Fiduciary Litigation on the terms and conditions set forth in an executed term sheet. On October 9, 2018, the parties to the Litigation executed a stipulation of settlement, which was filed with the court (the "Stipulation"). The Stipulation provides for, among other things, the final dismissal of the Fiduciary Litigation in exchange for a settlement payment made in the amount of $92.5 million , of which $37.8 million was reimbursed by insurance. The Company is continuing to seek additional insurance reimbursement, including pursuant to a lawsuit submitted by the Company on November 7, 2018 against certain insurers. Accordingly, in the year ended March 31, 2019, the Company has recorded the net expense of $54.8 million in the "shareholder litigation settlements" line item in the consolidated statement of operations related to these items. The Fiduciary Litigation settlement was approved by the Court of Chancery of the State of Delaware and the settlement amount and insurance reimbursement discussed above were paid during the quarter ended December 31, 2018. On November 5, 2018, an insurer that entered into an agreement and contributed $10.0 million to the Company's aggregate insurance reimbursement filed a lawsuit seeking declaratory judgment for reimbursement of its agreed upon payment. The Company believes the lawsuit to be without merit and intends to vigorously defend it. Appraisal Litigation Between December 8, 2016 and March 16, 2017, five verified petitions for appraisal (representing approximately 22.5 million shares of Starz Series A common stock) were filed by purported Starz stockholders (dissenting shareholders) in the Court of Chancery of the State of Delaware (the "Appraisal Litigation"). These actions were consolidated into In re Starz Appraisal , Consolidated C.A. No. 12968-VCG. On November 8, 2018, the parties to the Appraisal Litigation entered into a settlement agreement that provides for, among other things, the final dismissal of the Appraisal Litigation in exchange for a settlement payment made by the Company of approximately $964.0 million , which the Company paid during the three months ended December 31, 2018. During the year ended March 31, 2019, the Company recorded a shareholder litigation charge of $59.3 million in the "shareholder litigation settlements" line item in the consolidated statement of operations related to the Appraisal Litigation, representing the amount by which the settlement amount exceeded the previously accrued (at date of acquisition) dissenting shareholders' liability plus interest through the date agreed in the settlement. The portion of the settlement payment representing the $797.3 million value of the original merger consideration attributable to the dissenting shareholders that was accrued at the time of acquisition is reflected within cash flows from financing activities in the statement of cash flows, with the remainder of the settlement payment reflected within cash flows from operating activities in the statement of cash flows. The Appraisal Litigation settlement was approved by the Court of Chancery of the State of Delaware and the claims in the Appraisal Litigation were dismissed on November 19, 2018. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments (a) Credit Risk Concentration of credit risk with the Company’s customers is limited due to the Company’s customer base and the diversity of its sales throughout the world. The Company performs ongoing credit evaluations and maintains a provision for potential credit losses. The Company generally does not require collateral for its trade accounts receivable. (b) Derivative Instruments and Hedging Activities Forward Foreign Exchange Contracts The Company enters into forward foreign exchange contracts to hedge its foreign currency exposures on future production expenses and tax credit receivables denominated in various foreign currencies (i.e., cash flow hedges). The Company also enters into forward foreign exchange contracts that economically hedge certain of its foreign currency risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. Changes in the fair value of the foreign exchange contracts that are designated as hedges are reflected in accumulated other comprehensive income (loss), and changes in the fair value of foreign exchange contracts that are not designated as hedges and do not qualify for hedge accounting are recorded in direct operating expense. Gains and losses realized upon settlement of the foreign exchange contracts that are designated as hedges are amortized to direct operating expense on the same basis as the production expenses being hedged. As of March 31, 2019 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 12 months from March 31, 2019 ): March 31, 2019 Foreign Currency Foreign Currency Amount US Dollar Amount Weighted Average Exchange Rate Per $1 USD (Amounts in millions) (Amounts in millions) British Pound Sterling £5.0 in exchange for $7.2 £0.69 Canadian Dollar C$20.7 in exchange for $16.2 C$1.28 Australian Dollar A$3.5 in exchange for $2.7 A$1.27 Mexican Peso $108.3 in exchange for $5.6 $19.30 Interest Rate Swaps The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows. The Company primarily uses pay-fixed interest rate swaps to facilitate its interest rate risk management activities, which the Company designates as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed swaps effectively convert floating-rate borrowings to fixed-rate borrowings. The unrealized gains or losses from these cash flow hedges are deferred in accumulated other comprehensive income (loss) and recognized in interest expense as the interest payments occur. As of March 31, 2019 and March 31, 2018, the total notional amount of the Company’s pay-fixed interest rate swaps was $1.7 billion and nil , respectively. The major terms of the Company's interest rate swap agreements as of March 31, 2019 are as follows (all related to the Company's LIBOR-based debt, see Note 7 ): Effective Date Notional Amount (in millions) Fixed Rate Paid Maturity Date May 23, 2018 $1,000.0 2.915% March 24, 2025 June 25, 2018 $200.0 2.723% March 23, 2025 July 31, 2018 $300.0 2.885% March 23, 2025 December 24, 2018 $50.0 2.744% March 23, 2025 December 24, 2018 $100.0 2.808% March 23, 2025 December 24, 2018 $50.0 2.728% March 23, 2025 The following table presents the effect, net of tax, of the Company's derivatives on the accompanying consolidated statements of operations and comprehensive income (loss) for the years ended March 31, 2019 , 2018 and 2017: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in accumulated other comprehensive income (loss) $ 1.1 $ (0.2 ) $ (3.5 ) Gain (loss) reclassified from accumulated other comprehensive income (loss) into direct operating expense — (1.5 ) 5.0 Interest rate swap agreements Loss recognized in accumulated other comprehensive income (loss) $ (71.3 ) $ — $ — Loss reclassified from accumulated other comprehensive income (loss) into interest expense (7.7 ) — — Derivatives not designated as cash flow hedges: Forward exchange contracts Gain recognized in direct operating expense $ — $ 0.1 $ — Total direct operating expense on consolidated statements of operations $ 2,028.2 $ 2,309.6 $ 1,903.8 Total interest expense on consolidated statements of operations (1) $ 163.6 $ 137.2 $ 99.7 ________________ (1) Represents interest expense before interest on dissenting shareholders' liability. The Company classifies its forward foreign exchange contracts and interest rate contracts within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments (see Note 10 ). As of March 31, 2019 and March 31, 2018 , the Company had the following amounts recorded in the accompanying consolidated balance sheets related to the Company's use of derivatives: March 31, 2019 Other Current Assets Accounts Payable and Accrued Liabilities Other Non-Current Liabilities (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 1.5 $ 0.6 $ — Interest rate swap agreements — — 63.6 Fair value of derivatives $ 1.5 $ 0.6 $ 63.6 March 31, 2018 Other Current Assets Accounts Payable and Accrued Liabilities (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 0.3 $ 0.6 Fair value of derivatives $ 0.3 (1) $ 0.6 (1) _____________ (1) Includes an immaterial amount of forward foreign exchange contracts not designated as hedging instruments as of March 31, 2018. As of March 31, 2019 , based on the current release schedule, the Company estimates less than $0.1 million of losses associated with forward foreign exchange contract cash flow hedges in accumulated other comprehensive loss to be reclassified into earnings during the one-year period ending March 31, 2020. As of March 31, 2019 , the Company estimates approximately $3.7 million of losses recorded in accumulated other comprehensive loss associated with interest rate swap agreement cash flow hedges will be reclassified into interest expense during the one-year period ending March 31, 2020. |
Additional Financial Informatio
Additional Financial Information | 12 Months Ended |
Mar. 31, 2019 | |
Additional Financial Information [Abstract] | |
Additional Financial Information | Additional Financial Information The following tables present supplemental information related to the consolidated financial statements. Cash, Cash Equivalents and Restricted Cash Cash equivalents consist of investments that are readily convertible into cash. Cash equivalents are carried at cost, which approximates fair value. The Company classifies its cash equivalents within Level 1 of the fair value hierarchy because the Company uses quoted market prices to measure the fair value of these investments (see Note 10 ). The Company monitors concentrations of credit risk with respect to cash and cash equivalents by placing such balances with higher quality financial institutions or investing such amounts in liquid, short-term, highly-rated instruments or investment funds holding similar instruments. As of March 31, 2019, the majority of the Company’s cash and cash equivalents were held in bank depository accounts. There was no restricted cash in the consolidated balance sheets as of March 31, 2019 or March 31, 2018. Accounts Receivable, net Accounts receivable are presented net of a provision for doubtful accounts of $5.4 million ( March 31, 2018 - $7.5 million ). Accounts receivable at March 31, 2018 are presented net of reserves for returns and allowances of $56.2 million . Under the new revenue recognition guidance, as of March 31, 2019, the Company presents sales returns and certain sales incentive allowances as refund liabilities instead of as contra asset allowances within accounts receivable (see Note 1 ). Accounts Receivable Monetization The Company has entered into agreements to monetize certain of its trade accounts receivable directly with third-party purchasers. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the customers. Upon transfer of the receivables, the Company receives cash proceeds from the third-party purchaser, and the Company continues to service the receivables for the purchasers. The Company accounts for the transfers of these receivables as a sale, and classifies the proceeds as cash flows from operating activities in the statement of cash flows. During the year ended March 31, 2019 , the Company monetized trade accounts receivable with a carrying value of $473.9 million with third-party purchasers, which were derecognized from the Company's consolidated balance sheet, in exchange for net cash proceeds of $469.2 million . The amount of proceeds received is based on the present value of the timing of the payment of the underlying trade accounts receivable transferred discounted at an average rate which is lower than the Company’s average borrowing rate under its Revolving Credit Facility. The Company recorded a loss of $4.7 million , which is included in the "other expense" line item on the consolidated statement of operations. The Company receives fees for servicing the accounts receivable for the purchasers, which represent the fair value of the services and were immaterial for the year ended March 31, 2019. At March 31, 2019 , the outstanding amount of receivables derecognized from the Company's consolidated balance sheets, but which the Company continues to service, was $350.6 million . Other Assets The composition of the Company’s other assets is as follows as of March 31, 2019 and March 31, 2018 : March 31, March 31, (Amounts in millions) Other current assets Prepaid expenses and other $ 150.6 $ 34.1 Product inventory 19.9 20.3 Tax credits receivable 96.7 141.4 $ 267.2 $ 195.8 Other non-current assets Prepaid expenses and other (1) $ 109.2 $ 23.8 Accounts receivable (1) 176.1 325.2 Tax credits receivable 150.8 109.6 $ 436.1 $ 458.6 _____________________ (1) Unamortized discounts on contract assets included in prepaid expenses and other were $3.9 million at March 31, 2019, and unamortized discounts on long-term, non-interest bearing receivables were $9.7 million and $18.0 million at March 31, 2019 and 2018, respectively. Accumulated Other Comprehensive Loss The following table summarizes the changes in the components of accumulated other comprehensive loss, net of tax: Foreign currency translation adjustments Net unrealized gain (loss) on available-for-sale securities Net unrealized gain (loss) on cash flow hedges Total (Amounts in millions) March 31, 2016 $ (11.3 ) $ (35.5 ) $ 3.7 $ (43.1 ) Reclassification adjustment for gain on available-for-sale securities realized in net income — (17.8 ) — (17.8 ) Other comprehensive income (loss) (8.1 ) 56.4 (3.4 ) 44.9 March 31, 2017 (19.4 ) 3.1 0.3 (16.0 ) Other comprehensive income (loss) 7.0 (0.5 ) (0.2 ) 6.3 March 31, 2018 (12.4 ) 2.6 0.1 (9.7 ) Cumulative effect of accounting changes — (2.6 ) — (2.6 ) Other comprehensive loss (5.8 ) — (62.2 ) (68.0 ) March 31, 2019 $ (18.2 ) $ — $ (62.1 ) $ (80.3 ) Supplemental Cash Flow Information Interest paid during the fiscal year ended March 31, 2019 amounted to $146.7 million ( 2018 — $119.7 million ; 2017 — $79.8 million ). Income taxes paid (refunded) during the fiscal year ended March 31, 2019 amounted to net tax paid of $13.5 million ( 2018 — net tax refunds received of $20.3 million ; 2017 — net tax paid of $14.3 million ). The supplemental schedule of non-cash investing and financing activities is presented below: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Non-cash investing activities: Issuance of common shares related to business acquisitions $ 83.7 $ — $ 1,327.7 Accrued purchase consideration for dissenting shareholders (see Note 17) $ — $ — $ 797.3 Issuance of Starz share-based payment replacement awards $ — $ — $ 186.5 Non-cash financing activities: Accrued dividends (see Note 13) $ — $ 19.1 $ — Conversions of convertible senior subordinated notes $ — $ — $ 41.9 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Certain quarterly information is presented below: First Quarter Second Quarter Third Quarter Fourth Quarter (Amounts in millions, except per share amounts) 2019 Revenues $ 932.7 $ 901.0 $ 933.2 $ 913.7 Operating income (loss) (1) $ 38.2 $ 39.1 $ 86.8 $ (34.0 ) Net income (loss) (1)(2) $ (11.4 ) $ (149.3 ) $ 20.1 $ (159.1 ) Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (7.9 ) $ (144.1 ) $ 22.9 $ (155.2 ) Per share information attributable to Lions Gate Entertainment Corp. shareholders: Basic net income (loss) per common share $ (0.04 ) $ (0.67 ) $ 0.11 $ (0.72 ) Diluted net income (loss) per common share $ (0.04 ) $ (0.67 ) $ 0.10 $ (0.72 ) First Quarter Second Quarter Third Quarter Fourth Quarter (Amounts in millions, except per share amounts) 2018 Revenues $ 1,005.3 $ 940.8 $ 1,142.7 $ 1,040.2 Operating income (loss) (3) $ 89.7 $ 30.4 $ 80.2 $ 48.4 Net income (loss) (3)(4) $ 174.5 $ 12.9 $ 191.1 $ 89.6 Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ 173.8 $ 15.5 $ 193.0 $ 91.3 Per share information attributable to Lions Gate Entertainment Corp. shareholders: Basic net income (loss) per common share $ 0.84 $ 0.07 $ 0.92 $ 0.43 Diluted net income (loss) per common share $ 0.80 $ 0.07 $ 0.87 $ 0.41 ________________________________________ (1) During fiscal 2019, operating income and net income included the following items: • Restructuring and Other. The first, second, third and fourth quarter of fiscal 2019 included restructuring and other items of $10.5 million , $15.0 million , $16.6 million and $35.9 million , respectively (after tax $7.8 million , $11.5 million , $12.6 million , and $27.3 million , respectively) (see Note 15 ). • Programming and Content Charges. During the fourth quarter of fiscal 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million (after tax $26.7 million ) in connection with recent management changes, and changes to the Company's programming strategy, which are included in direct operating expense in the consolidated statement of operations in the fourth quarter of fiscal 2019 (see Note 15 ). (2) During fiscal 2019, net income also included the following items: • Shareholder Litigation Settlements . The second quarter of fiscal 2019 included shareholder litigation settlements of $114.1 million (after tax $104.7 million ) (see Note 17 ). • Loss on Investments. The first, second, third and fourth quarter of fiscal 2019 included a loss on investments of $0.9 million , $36.1 million , $6.2 million and $44.4 million , respectively (after tax $0.7 million , $32.4 million , $4.7 million and $33.7 million , respectively) (see Note 5 ). • Loss on Extinguishment of Debt. The fourth quarter of fiscal 2019 included a loss on extinguishment of debt of $1.9 million (after tax $1.4 million ) (see Note 7 ). • Deferred Tax Valuation Allowance. The fourth quarter of fiscal 2019 included a charge of $53.7 million from an increase in the valuation allowance for certain of the Company's deferred tax assets (see Note 14 ). (3) During fiscal 2018, operating income and net income included the following items: • Restructuring and Other. The first, second, third and fourth quarter of fiscal 2018 included restructuring and other items of $10.9 million , $3.5 million , $21.4 million , and $24.0 million , respectively (after tax $8.9 million , $2.5 million , $14.5 million , and $15.7 million , respectively) (see Note 15 ). (4) During fiscal 2018, net income also included the following items: • Loss on Extinguishment of Debt. The first, second, third and fourth quarter of fiscal 2018 included a loss on extinguishment of debt of $11.6 million , $6.4 million , $6.2 million and $11.6 million , respectively (after tax $8.5 million , $4.7 million , $4.6 million and $7.8 million , respectively) (see Note 7 ). • Gain (Loss) on Investments. The first and third quarter of fiscal 2018 included a gain on investments of $201.0 million and a loss on investments of $29.2 million , respectively (after tax gain of $127.0 million and loss of $20.1 million , respectively) (see Note 5 ). • Impact of Corporate Tax Rate Change on Deferred Tax Liabilities. The third quarter of fiscal 2018 included a deferred tax benefit of $165.0 million resulting from the impact of the change in the U.S. federal corporate income tax rate from 35% to 21% under the Tax Cuts and Jobs Act on the Company's beginning net deferred tax liabilities (see Note 14 ). • Tax Benefit from Internal Capital Restructuring. The fourth quarter of fiscal 2018 included a net tax benefit of $94.1 million primarily from the internal capital restructuring in connection with our third party debt refinancing (see Note 7 to our consolidated financial statements), net of the charge from an increase in its valuation allowance associated with certain deferred tax assets (see Note 14 ). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Voting Agreements regarding former Company Shares On June 30, 2016, in connection with the Merger Agreement, the Company, Starz and MHR Fund Management LLC and affiliates (collectively, “MHR Fund Management”) entered into a voting agreement with respect to MHR Fund Management’s common shares of the Company (the “MHR Voting Agreement” ). Under the MHR Voting Agreement, the Company agreed to indemnify MHR Fund Management for losses relating to or arising out of the MHR Voting Agreement, the merger agreement or that certain stock exchange agreement of even date therewith and to pay up to $1.6 million in reasonable out-of-pocket expenses of MHR Fund Management. The Company has incurred expenses on behalf of MHR Fund Management for such costs amounting to approximately $0.5 million , which are included in restructuring and other in the consolidated statement of operations for the year ended March 31, 2017 . Mark H. Rachesky, the Chairman of the Board of the Company, is the principal of MHR Fund Management, which holds approximately 19% of the Company’s outstanding Class A voting shares and 11% of the Company's outstanding Class B non-voting common stock as of May 20, 2019. Voting Agreement regarding former Starz Shares On June 30, 2016, in connection with the Merger Agreement, the Company and Starz entered into a Voting Agreement with LG Leopard Canada LP, an Ontario limited partnership and indirect wholly owned subsidiary of the Company, and the stockholders of Starz listed on Schedule A thereto (including John C. Malone, a former director of the Company, and affiliated entities) (such stockholders the “Individual Stockholders”), with respect to shares of previously issued Starz common stock (the “Starz Voting Agreement”). Under the Starz Voting Agreement, the Company agreed to indemnify the Individual Stockholders for losses relating to or arising out of the Starz Voting Agreement, the Merger Agreement and that certain stock exchange agreement of even date therewith and to pay up to $1.6 million in reasonable out-of-pocket expenses of the Individual Stockholders. The Company has incurred expenses on behalf of the Individual Stockholders for such costs amounting to approximately $1.5 million , which are included in restructuring and other in the consolidated statement of operations for the year ended March 31, 2017 . Other In the year ended March 31, 2019, we have incurred expenses on behalf of Dr. Malone and Mark H. Rachesky for reimbursement of certain litigation costs of approximately $3.3 million (2018 - $5.6 million ; 2017 - $1.0 million ), which are included in restructuring and other in the consolidated statement of operations. Atom Tickets During the year ended March 31, 2018, the Company participated in an equity offering of its equity method investee, Atom Tickets, and subscribed for an additional $10.0 million in equity interests (2017 - none ). Gordon Crawford, a director of the Company, is a director of and an investor in Atom Tickets. Shrink, LLC In April 2008, Lions Gate Films, Inc., a wholly-owned subsidiary of the Company (“LGF”), entered into a sales agency agreement (as amended) with Shrink, LLC for distribution rights to the film Shrink. Michael Burns, the Vice Chairman and a director of the Company, owns a 100% interest in Shrink, LLC. During the year ended March 31, 2019, less than $0.1 million was paid to Shrink, LLC under this agreement (2018 - $0.1 million , 2017 - none ). Transactions with Equity Method Investees In the ordinary course of business, we are involved in related party transactions with equity method investees. These related party transactions primarily relate to the licensing and distribution of the Company's films and television programs, for which the impact on the Company's consolidated balance sheets and consolidated statements of operations is as follows (see Note 1 and Note 5 ). In addition, during the year ended March 31, 2019, the Company made loans of $20.7 million to certain of its equity method investees, $7.3 million of which are included in other assets, noncurrent in the Company's consolidated balance sheet (net of equity interests losses applied against such loans), and included in the table below. March 31, 2019 2018 (Amounts in millions) Consolidated Balance Sheets Accounts receivable $ 2.2 $ 6.0 Other assets, noncurrent 7.3 0.2 Total due from related parties $ 9.5 $ 6.2 Participations and residuals, current 9.5 6.5 Participations and residuals, noncurrent 8.2 6.0 Deferred revenue, current — 0.2 Total due to related parties $ 17.7 $ 12.7 Year Ended March 31, 2019 2018 2017 (Amounts in millions) Consolidated Statements of Operations Revenues $ 4.7 $ 8.9 $ 88.8 Direct operating expense $ 32.2 $ 22.0 $ 10.5 Distribution and marketing expense $ 3.0 $ 3.5 $ 0.8 General and administrative expense (1) $ 0.7 $ (3.7 ) $ (0.7 ) Interest and other income $ 0.4 $ — $ — __________________________________ (1) Amounts primarily represent reimbursement for certain shared services for equity method investees. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II. Valuation and Qualifying Accounts Lions Gate Entertainment Corp. March 31, 2019 (In Millions) Additions Description Balance at Beginning of Period Charged to Costs and Expenses (1) Charged to Other Accounts Deductions Balance at End of Period Year Ended March 31, 2019: Reserves: Returns and allowances $ 56.2 $ 126.0 $ — $ (147.2 ) (3) $ 35.0 Provision for doubtful accounts $ 7.5 $ (2.0 ) $ — $ (0.1 ) (5) $ 5.4 Deferred tax valuation allowance $ 73.2 $ 313.9 $ 14.0 (6) $ — $ 401.1 Year Ended March 31, 2018: Reserves: Returns and allowances $ 68.6 $ 168.3 $ — $ (180.7 ) (3) $ 56.2 Provision for doubtful accounts $ 9.0 $ (1.0 ) $ — $ (0.5 ) (5) $ 7.5 Deferred tax valuation allowance $ 5.9 $ 67.3 $ — $ — $ 73.2 Year Ended March 31, 2017: Reserves: Returns and allowances $ 51.8 $ 149.3 $ 24.3 (2) $ (156.8 ) (3) $ 68.6 Provision for doubtful accounts $ 6.0 $ (0.2 ) $ 3.2 (2) $ — $ 9.0 Deferred tax valuation allowance $ 10.1 $ 0.4 $ 1.4 (2) $ (6.0 ) (4) $ 5.9 ____________________________ (1) Charges for returns and allowances are charges against revenue. (2) Opening balances due to the acquisition of Starz on December 8, 2016. (3) Actual returns and fluctuations in foreign currency exchange rates. (4) Valuation allowance reversal, of which $1.4 million was recorded as a tax benefit in the consolidated statement of operations, and $4.6 million was recorded in other comprehensive income. The $4.6 million relates to the gain on Starz investment. (5) Uncollectible accounts written off and fluctuations in foreign currency exchange rates. (6) Valuation allowance addition recorded in other comprehensive income and primarily associated with hedging losses. |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Generally Accepted Accounting Principles | Generally Accepted Accounting Principles These consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”). |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements of the Company include the accounts of Lionsgate and its majority-owned and controlled subsidiaries. The Company reviews its relationships with other entities to identify whether it is the primary beneficiary of a variable interest entity (“VIE”). If the determination is made that the Company is the primary beneficiary, then the entity is consolidated. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; estimates of sales returns and other allowances and provisions for doubtful accounts; estimates related to the revenue recognition of sales or usage-based royalties; 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. |
Reclassifications | Reclassifications Certain amounts presented in prior years have been reclassified to conform to the current year’s presentation. |
Revenue Recognition | Revenue Recognition The Company's Motion Picture and Television Production segments generate revenue principally from the licensing of content in domestic theatrical exhibition, home entertainment (e.g., digital media and packaged media), television, and international market places. The Company's Media Networks segment generates revenue primarily from the distribution of the Company's STARZ branded premium subscription video services and, to a lesser extent, direct-to-consumer content streaming services. Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax. Licensing Arrangements. The Company's content licensing arrangements include fixed fee and minimum guarantee arrangements, and sales or usage based royalties. Fixed Fee or Minimum Guarantees: The Company's fixed fee or minimum guarantee licensing arrangements may, in some cases, include multiple titles, multiple license periods (windows) with a substantive period in between the windows, rights to exploitation in different media, or rights to exploitation in multiple territories, which may be considered distinct performance obligations. When these performance obligations are considered distinct, the fixed fee or minimum guarantee in the arrangement is allocated to the title, window, media right or territory as applicable, based on estimates of relative standalone selling prices. The amounts related to each performance obligation (i.e., title, window, media or territory) are recognized when the content has been delivered, and the window for the exploitation right in that territory has begun, which is the point in time at which the customer is able to begin to use and benefit from the content. Sales or Usage Based Royalties: Sales or usage based royalties represent amounts due to the Company based on the “sale” or “usage” of the Company's content by the customer, and revenues are recognized at the later of when the subsequent sale or usage occurs, or the performance obligation to which some or all the sales or usage-based royalty has been allocated and has been satisfied (or partially satisfied). Generally, when the Company licenses completed content (with standalone functionality, such as a movie, or television show) its performance obligation will be satisfied prior to the sale or usage. When the Company licenses intellectual property that does not have stand-alone functionality (e.g., brands, themes, logos, etc.), its performance obligation is generally satisfied in the same period as the sale or usage. The actual amounts due to the Company under these arrangements are generally not reported to the Company until after the close of the reporting period. The Company records revenue under these arrangements for the amounts due and not yet reported to the Company based on estimates of the sales or usage of these customers and pursuant to the terms of the contracts. Such estimates are based on information from the Company's customers, historical experience with similar titles in that market or territory, the performance of the title in other markets, and/or data available in the industry. Revenues by Market or Product Line. The following describes the revenues generated by market or product line. Theatrical revenues are included in the Motion Picture segment; home entertainment, television, international and other revenues are applicable to both the Motion Picture and Television Production segments; Media Networks programming revenues are included in the Media Networks segment. • Theatrical. Theatrical revenues are derived from the domestic theatrical release of motion pictures licensed to theatrical exhibitors on a picture-by-picture basis (distributed by the Company directly in the United States and through a sub-distributor in Canada). Revenue from the theatrical release of feature films are treated as sales or usage- based royalties and recognized starting at the exhibition date and based on the Company's participation in box office receipts of the theatrical exhibitor . • Home Entertainment. Home entertainment consists of Digital Media and Packaged Media. ◦ Digital Media. Digital media includes digital transaction revenue sharing arrangements (pay-per-view and video-on-demand platforms, electronic sell through ("EST"), and digital rental) and licenses of content to digital platforms for a fixed fee. Digital Transaction Revenue Sharing Arrangements : Primarily represents revenue sharing arrangements with certain digital media platforms which generally provide that, in exchange for a nominal or no upfront sales price, the Company shares in the rental or sales revenues generated by the platform on a title-by-title basis. These digital media platforms generate revenue from rental and EST arrangements, such as download-to-own, download-to-rent, and video-on-demand. These revenue sharing arrangements are recognized as sales or usage based royalties based on the performance of these platforms and pursuant to the terms of the contract, as discussed above. Licenses of Content to Digital Platforms: Primarily represents the licensing of content to subscription-video-on-demand ("SVOD") or other digital platforms for a fixed fee. As discussed above, revenues are recognized when the content has been delivered and the window for the exploitation right in that territory has begun. ◦ Packaged Media. Packaged media revenues represent the sale of motion pictures and television shows (produced or acquired) on physical discs (DVD’s, Blu-ray, 4K Ultra HD, referred to as "Packaged Media") in the retail market. Revenues are recognized, net of an allowance for estimated returns and other allowances, on the later of receipt by the customer or “street date” (when it is available for sale by the customer). • Television . Television revenues are derived from the licensing to domestic markets (linear pay, basic cable, free television markets, syndication) of motion pictures (including theatrical productions and acquired films) and scripted and unscripted television series, television movies, mini-series, and non-fiction programming. Television revenues include fixed fee arrangements as well as arrangements in which the Company earns advertising revenue from the exploitation of certain content on television networks. Television also includes revenue from licenses to SVOD platforms in which the initial license of a television series is to an SVOD platform. Revenues associated with a title, right, or window from television licensing arrangements are recognized when the feature film or television program is delivered (on an episodic basis for television product) and the window for the exploitation right has begun. • International. International revenues are derived from (1) licensing of the Company's productions, acquired films, catalog product and libraries of acquired titles to international distributors, on a territory-by-territory basis; (2) the direct distribution of our productions, acquired films, and our catalog product and libraries of acquired titles in the United Kingdom; and (3) licensing to international markets of scripted and unscripted series, television movies, mini-series and non-fiction programming. License fees and minimum guarantee amounts associated with title, window, media or territory, are recognized when access to the feature film or television program has been granted or delivery has occurred, as required under the contract, and the right to exploit the feature film or television program in that window, media or territory has commenced. Revenues are also generated from sales or usage based royalties received from international distributors based on their distribution performance pursuant to the terms of the contracts after the recoupment of certain costs in some cases, and the initial minimum guarantee, if any, and are recognized when the sale by our customer generating a royalty due to us has occurred. • Other. Other revenues are derived from the licensing of the Company's film and television and related content (games, music, location-based entertainment royalties, etc.) to other ancillary markets and from commissions earned and executive producer fees related to talent management. Revenues from the licensing of film and television content and the sales and licensing of music are recognized when the content has been delivered and the license period has begun, as discussed above. Revenues from the licensing of symbolic intellectual property (i.e., licenses of motion pictures or television characters, brands, storylines, themes or logos) is recognized over the corresponding license term. Commissions are recognized as such services are provided. • Media Networks - Programming Revenues. Media Networks’ revenues are primarily derived from the distribution of the Company's STARZ branded premium subscription video services pursuant to affiliation agreements with U.S. multichannel video programming distributors (“MVPDs”), including cable operators, satellite television providers and telecommunications companies, and over-the-top (“OTT”) (collectively, “Distributors”) and on a direct-to-consumer basis. Media Networks revenues also include international revenues primarily from the OTT distribution of the Company's STARZ branded premium subscription video services outside the United States. Pursuant to the Company’s distribution agreements, revenues may be based on a fixed fee, subject to nominal annual escalations, or a variable fee (i.e., a fee based on number of subscribers who receive the Company's networks or other factors). Programming revenue is recognized over the contract term based on the continuous delivery of the content to the distributor. The variable distribution fee arrangements represent sales or usage based royalties and are recognized over the period of such sales or usage by the Company's distributor, which is the same period that the content is provided to the distributor. Deferred Revenue. Deferred revenue relates primarily to customer cash advances or deposits received prior to when the Company satisfies the corresponding performance obligation. Payment terms vary by location and type of customer and the nature of the licensing arrangement, however, other than certain multi-year license arrangements; payments are generally due within 60 days after revenue is recognized. For certain multi-year licensing arrangements, primarily in the television, digital media, and international markets, payments may be due over a longer period. When we expect the period between fulfillment of our performance obligation and the receipt of payment to be greater than a year, a significant financing component is present. In these cases, such payments are discounted to present value based on a discount rate reflective of a separate financing transaction between the customer and the Company, at contract inception. The significant financing component is recorded as a reduction to revenue and accounts receivable initially, with such accounts receivable discount amortized to interest income over the period to receipt of payment. The Company does not assess contracts with deferred payments for significant financing components if, at contract inception, we expect the period between fulfillment of the performance obligation and subsequent payment to be one year or less. In other cases, customer payments are made in advance of when the Company fulfills its performance obligation and recognizes revenue. This primarily occurs under television production contracts, in which payments may be received as the production progresses, international motion picture contracts, where a portion of the payments are received prior to the completion of the movie and prior to license rights start dates, and pay television contracts with multiple windows with a portion of the revenues deferred until the subsequent exploitation windows commence. These arrangements do not contain significant financing components because the reason for the payment structure is not for the provision of financing to the Company, but rather to mitigate the Company's risk of customer non-performance and incentivize the customer to exploit the Company's content. See Note 12 for further information. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash deposits at financial institutions and investments in money market mutual funds. |
Investment in Films and Television Programs and Program Rights | Investment in Films and Television Programs and Program Rights Investment in Films and Television Programs: Investment in films and television programs includes the unamortized costs of completed films and television programs which have been produced by the Company or for which the Company has acquired distribution rights, libraries acquired as part of acquisitions of companies, films and television programs in progress and in development and home entertainment product inventory. For films and television programs produced by the Company, capitalized costs include all direct production and financing costs, capitalized interest and production overhead. For the years ended March 31, 2019 , 2018 , and 2017 , total capitalized interest was $10.8 million , $7.9 million , and $8.7 million , respectively. For acquired films and television programs, capitalized costs consist of minimum guarantee payments to acquire the distribution rights. Costs of acquiring and producing films and television programs and of acquired libraries are amortized using the individual-film-forecast method, whereby these costs are amortized and participations and residuals costs are accrued in the proportion that current year’s revenue bears to management’s estimate of ultimate revenue at the beginning of the current year expected to be recognized from the exploitation, exhibition or sale of the films or television programs. Ultimate revenue includes estimates over a period not to exceed ten years following the date of initial release of the motion picture. For an episodic television series, the period over which ultimate revenues are estimated cannot exceed ten years following the date of delivery of the first episode, or, if still in production, five years from the date of delivery of the most recent episode, if later. For titles included in acquired libraries, ultimate revenue includes estimates over a period not to exceed twenty years following the date of acquisition. Investment in films and television programs is stated at the lower of amortized cost or estimated fair value. The valuation of investment in films and television programs, whether released or unreleased, is reviewed on a title-by-title basis, when an event or change in circumstances indicates that the fair value of a film or television program is less than its unamortized cost. During the years ended March 31, 2019 and 2018 , the Company recorded impairment charges of $35.2 million and $36.3 million, respectively, on film and television programs. In determining the fair value of its films and television programs, the Company employs a discounted cash flows ("DCF") methodology that includes cash flows 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 weighted average cost of capital of the Company plus a risk premium representing the risk associated with producing a particular film or television program. The fair value of any film costs associated with a film or television program that management plans to abandon is zero. 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 10 ). Additional amortization is recorded in the amount by which the unamortized costs exceed the estimated fair value of the film or television program. Estimates of future revenue involve measurement uncertainty and it is therefore possible that reductions in the carrying value of investment in films and television programs may be required as a consequence of changes in management’s future revenue estimates. Films and television programs in progress include the accumulated costs of productions which have not yet been completed. Films and television programs in development include costs of acquiring film rights to books, stage plays or original screenplays and costs to adapt such projects. Such costs are capitalized and, upon commencement of production, are transferred to production costs. Projects in development are written off at the earlier of the date they are determined not to be recoverable or when abandoned, or three years from the date of the initial investment unless the fair value of the project exceeds its carrying cost. Home entertainment product inventory consists of Packaged Media and is stated at the lower of cost or market value (first-in, first-out method), and are included within other current assets on the consolidated balance sheet (see Note 19 ). Costs of Packaged Media sales, including shipping and handling costs, are included in distribution and marketing expenses. Program Rights: The cost of program rights for films and television programs (including original series) exhibited by the Media Networks segment are generally amortized on a title-by-title or episode-by-episode basis over the anticipated number of exhibitions or license period. 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 on newer releases. The cost of the Media Networks' segments produced original content generally represents the license fees charged from the Television Production segment which is eliminated in consolidation. 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. The cost of the Media Networks’ third-party licensed content is allocated between the pay television market distributed by the Media Networks’ segment and the ancillary revenue markets (e.g., home video, digital platforms, international television, etc.) distributed by the Television Production segment based on the estimated relative fair values of these markets. Estimates of fair value for the pay television and ancillary markets involve uncertainty as well as estimates of ultimate revenue. All the costs of programming produced by the Television Production segment are included in investment in films and television programs and program rights, net and 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. Changes in management’s estimate of the anticipated exhibitions of films and original series on our networks could result in the earlier recognition of our programming costs than anticipated. Conversely, scheduled exhibitions may not capture the appropriate usage of the program rights in current periods which would lead to the write-off of additional program rights in future periods and may have a significant impact on our future results of operations and our financial position. |
Property and Equipment, net | Property and Equipment, net Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided for on a straight line basis over the following useful lives: Distribution equipment 1 — 4 years Computer equipment and software 2 — 5 years Furniture and equipment 2 — 10 years Leasehold improvements Lease term or the useful life, whichever is shorter Building 26 years Land Not depreciated The Company periodically reviews and evaluates the recoverability of property and equipment. Where applicable, estimates of net future cash flows, on an undiscounted basis, are calculated based on future revenue estimates. If appropriate and where deemed necessary, a reduction in the carrying amount is recorded. |
Investments | Investments Investments include investments accounted for under the equity method of accounting, and equity investments with and without readily determinable fair value. Equity Method Investments: The Company uses the equity method of accounting for investments in companies in which it has a minority equity interest and the ability to exert significant influence over operating decisions of the companies. Significant influence is generally presumed to exist when the Company owns between 20% and 50% of the voting interests in the investee, holds substantial management rights or holds an interest of less than 20% in an investee that is a limited liability partnership or limited liability corporation that is treated as a flow-through entity. Under the equity method of accounting, the Company's share of the investee's earnings (losses), net of intercompany eliminations, are included in the "equity interest income (loss)" line item in the consolidated statement of operations. The Company records its share of the net income or loss of certain other equity method investments (see Note 5 ) on a one quarter lag and, accordingly, during the years ended March 31, 2019 , 2018 , and 2017 , the Company recorded its share of the income or loss generated by these entities for the years ended December 31, 2018, 2017 and 2016, respectively. Profit Eliminations. The Company licenses theatrical releases and other films and television programs to certain equity method investments. A portion of the profits of these licenses reflecting the Company's ownership share in the venture are eliminated through an adjustment to the equity interest income (loss) of the venture. These profits are recognized as they are realized by the equity method investee through the amortization of the related asset, recorded on the equity method investee's balance sheet, over the license period. Dividends and Other Distributions. Dividends and other distributions from equity method investees are recorded as a reduction of the Company's investment. Distributions received up to the Company's interest in the investee's retained earnings are considered returns on investments and are classified within cash flows from operating activities in the consolidated statement of cash flows. Distributions from equity method investments in excess of the Company's interest in the investee's retained earnings are considered returns of investments and are classified within cash flows provided by investing activities in the statement of cash flows. Other Equity Investments: Investments in nonconsolidated affiliates in which the Company owns less than 20% of the voting common stock, or does not exercise significant influence over operating and financial policies, are recorded at fair value using quoted market prices if the investment has a readily determinable fair value. If an equity investment's fair value is not readily determinable, the Company will recognize it at cost less any impairment, adjusted for observable price changes in orderly transactions in the investees' securities that are identical or similar to our investments in the investee. The unrealized gains and losses and the adjustments related to the observable price changes are recognized in net income (loss). Impairments of Investments: The Company regularly reviews its investments for impairment, including when the carrying value of an investment exceeds its market value. If the Company determines that an investment has sustained an other-than-temporary decline in its value, the investment is written down to its fair value by a charge to earnings. Factors that are considered by the Company in determining whether an other-than-temporary decline in value has occurred include (i) the market value of the security in relation to its cost basis, (ii) the financial condition of the investee, and (iii) the Company’s intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment. For investments accounted for using the equity method of accounting or equity investments without a readily determinable fair value, the Company evaluates information available (e.g., budgets, business plans, financial statements, etc.) in addition to quoted market prices, if any, in determining whether an other-than-temporary decline in value exists. Factors indicative of an other-than-temporary decline include recurring operating losses, credit defaults and subsequent rounds of financing at an amount below the cost basis of the Company’s investment. |
Intangible Assets | Intangible Assets Intangible assets acquired in business combinations are recorded at the acquisition date fair value in the Company’s consolidated balance sheet. Identifiable intangible assets with finite lives are amortized over their estimated useful lives, and identifiable intangible assets with indefinite lives are not amortized, but rather are tested annually for impairment, or sooner when circumstances indicate that the intangible asset might be impaired. Amortizable intangible assets are tested for impairment utilizing an income approach based on undiscounted cash flows upon the occurrence of certain triggering events and, if impaired, are written down to fair value. The impairment test is performed at the lowest level of cash flows associated with the asset. For intangible assets with indefinite lives, an entity may first perform a qualitative assessment to determine whether it is more-likely-than-not that an indefinite-lived intangible asset is impaired. The qualitative assessment is an evaluation, based on all identified events and circumstances which impact the fair value of the intangible asset. If the Company believes that as a result of its qualitative assessment it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying amount, a quantitative impairment test is not required but may be performed at the option of the Company. As of March 31, 2019, based on the Company's qualitative assessment, the Company concluded that the indefinite-lived intangible assets included in the accompanying consolidated balance sheet were not impaired. |
Goodwill | Goodwill Goodwill represents the excess of acquisition costs over the tangible and intangible assets acquired and liabilities assumed in various business acquisitions by the Company. Goodwill is allocated to the Company's reporting units, which are its operating segments or one level below its operating segments (component level). Reporting units are determined by the discrete financial information available for the component and whether it is regularly reviewed by segment management. Components are aggregated into a single reporting unit if they share similar economic characteristics. Our reporting units for purposes of goodwill impairment testing at March 31, 2019 were Motion Picture, Media Networks, and each of our Television and talent management businesses, both of which are part of our Television Production segment. Goodwill is not amortized, but goodwill is reviewed for impairment each fiscal year or between the annual tests if an event occurs or circumstances change that indicates it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. The Company performs its annual impairment test as of January 1 in each fiscal year. A goodwill impairment loss would be recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. An entity may perform a qualitative assessment of the likelihood of the existence of a goodwill impairment. The qualitative assessment is an evaluation, based on all identified events and circumstances which impact the fair value of the reporting unit. If the Company believes that as a result of its qualitative assessment it is more likely than not that the fair value of a reporting unit is greater than its carrying amount, a quantitative impairment test is not required but may be performed at the option of the Company. A quantitative assessment requires determining the fair value of our reporting units. The determination of the fair value of each reporting unit utilizes discounted cash flows ("DCF") analyses and market-based valuation methodologies, which represent Level 3 fair value measurements. Fair value determinations require considerable judgment about revenue and market growth, operating margins and cash flows, market multiples and discount rates, and are sensitive to changes in these underlying assumptions and factors. For fiscal 2019, due primarily to the decline in the market price of our common shares, we performed a quantitative impairment assessment for all of our reporting units. Based on the Company's quantitative assessments, the Company concluded that it is more-likely-than-not that the fair value of its reporting units is greater than their carrying values. Management will continue to monitor the reporting units for changes in the business environment that could impact recoverability in future periods. The recoverability of goodwill is dependent upon the continued growth of revenue and cash flows from our business activities. While historical performance and current expectations have resulted in fair values of our reporting units in excess of carrying values, if our assumptions are not realized, it is possible that an impairment charge may need to be recorded in the future. |
Prints, Advertising and Marketing Expenses | Prints, Advertising and Marketing Expenses The costs of prints, advertising and marketing expenses 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. Advertising expenses for the year ended March 31, 2019 were $640.1 million ( 2018 — $654.9 million , 2017 — $588.8 million ) which were recorded as distribution and marketing expenses. |
Income Taxes and Government Assistance | Income Taxes Income taxes are accounted for using an asset and liability approach for financial accounting and reporting for income taxes and recognition and measurement of deferred assets are based upon the likelihood of realization of tax benefits in future years. Under this method, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are established when management determines that it is more likely than not that some portion or all of the net deferred tax asset, on a jurisdiction by jurisdiction basis, will not be realized. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. In determining the Company’s tax provision for financial reporting purposes, the Company establishes a reserve for uncertain tax positions unless such positions are determined to be more likely than not of being sustained upon examination, based on their technical merits. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. Government Assistance The Company has access to government programs that are designed to promote film and television production and distribution in certain foreign countries. The Company also has access to similar programs in certain states within the U.S. that are designed to promote film and television production in those states. Tax credits earned with respect to expenditures on qualifying film and television productions are included as an offset to investment in films and television programs when the qualifying expenditures have been incurred provided that there is reasonable assurance that the credits will be realized (see Note 19 ). |
Foreign Currency Translation | Foreign Currency Translation Monetary assets and liabilities denominated in currencies other than the functional currency are translated at exchange rates in effect at the balance sheet date. Resulting unrealized and realized gains and losses are included in the consolidated statements of operations. Foreign company assets and liabilities in foreign currencies are translated into U.S. dollars at the exchange rate in effect at the balance sheet date. Foreign company revenue and expense items are translated at the average rate of exchange for the fiscal year. Gains or losses arising on the translation of the accounts of foreign companies are included in accumulated other comprehensive income or loss, a separate component of shareholders’ equity. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivative financial instruments are used by the Company in the management of its foreign currency and interest rate exposures. The Company’s policy is not to use derivative financial instruments for trading or speculative purposes. The Company uses derivative financial instruments to hedge its exposures to foreign currency exchange rate and interest rate risks. All derivative financial instruments used as hedges are recorded at fair value in the consolidated balance sheets (see Note 10 ). The effective changes in fair values of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive loss and included in unrealized (losses) gains on cash flow hedges until the underling hedged item is recognized in earnings. The effective changes in the fair values of derivatives designated as cash flow hedges are reclassified from accumulated other comprehensive loss to net income when the underlying hedged item is recognized in earnings. |
Share-Based Compensation | Share-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. The fair value is recognized in earnings over the period during which an employee is required to provide service. See Note 13 for further discussion of the Company’s share-based compensation. |
Net Income (Loss) 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 years ended March 31, 2019 , 2018 and 2017 is presented below: Year Ended March 31, 2019 2018 2017 (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 $ (284.2 ) $ 473.6 $ 14.8 Denominator: Weighted average common shares outstanding 213.7 208.4 165.0 Basic net income (loss) per common share $ (1.33 ) $ 2.27 $ 0.09 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 ("SARs"), 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 years ended March 31, 2019 , 2018 and 2017 is presented below: Year Ended March 31, 2019 2018 2017 (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 $ (284.2 ) $ 473.6 $ 14.8 Add: Interest on convertible notes, net of tax — 0.5 — Numerator for diluted net income (loss) per common share $ (284.2 ) $ 474.1 $ 14.8 Denominator: Weighted average common shares outstanding 213.7 208.4 165.0 Effect of dilutive securities: Conversion of notes — 2.1 — Share purchase options — 7.5 3.5 Restricted share units and restricted stock — 0.7 0.3 Contingently issuable shares — 1.7 3.4 Adjusted weighted average common shares outstanding 213.7 220.4 172.2 Diluted net income (loss) per common share $ (1.33 ) $ 2.15 $ 0.09 As a result of the net loss in the fiscal year ended March 31, 2019 , the dilutive effect of the convertible notes, share purchase options, restricted share units and restricted stock, and contingently issuable shares were considered anti-dilutive and, therefore, excluded from diluted loss per share. The weighted average anti-dilutive shares excluded from the calculation due to the net loss for the fiscal year ended March 31, 2019 totaled 7.1 million . Additionally, for the years ended March 31, 2019 , 2018 and 2017 , 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 regardless of net income or loss in the period. Year Ended March 31, 2019 2018 2017 (Amounts in millions) Anti-dilutive shares issuable Conversion of notes — — 5.2 Share purchase options 21.3 11.5 12.1 Restricted share units 1.0 0.2 0.6 Other issuable shares 1.4 1.2 1.2 Total weighted average anti-dilutive shares issuable excluded from diluted net income (loss) per common share 23.7 12.9 19.1 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Guidance Adopted in Fiscal 2019 Revenue Recognition : On April 1, 2018, the Company adopted, on a modified retrospective basis, accounting guidance that establishes a new revenue recognition framework in U.S. GAAP for all companies and industries. The core principle of the new revenue framework is that an entity should recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive for those goods or services. The revenue framework includes a five-step model to determine the timing and amount of revenue to recognize related to contracts with customers. The adoption of the new accounting guidance did not result in significant changes to the Company's reported operating results. The Company recorded a transition adjustment for all open contracts existing as of April 1, 2018, of $18.7 million as an increase to the opening balance of retained earnings related principally to the areas noted below: Sales or Usage Based Royalties: The Company receives royalties from certain domestic and international distributors and other transactional digital distribution partners based on the sales made by these distributors after recoupment of a minimum guarantee, if applicable. Under prior guidance, the Company recorded these sales or usage based royalties after receiving statements from the licensee and/or film distributor. Under the new guidance, revenues are recorded based on best estimates available of the amounts due to the Company in the period of the customer's sales or usage. Accordingly, the timing of the revenue recognition is accelerated; however, the Company continues to have a consistent number of periods of sales or usage based royalties in each reporting period, and therefore the impact of the new guidance depends on the timing and performance of the titles released in those reporting periods. This change primarily impacts the Motion Picture and Television Production segments. Renewals of Licenses of Intellectual Property: Under the prior guidance, when the term of an existing license agreement was extended, without any other changes to the provisions of the license, revenue for the renewal period was recognized when the agreement was renewed or extended. Under the new guidance, revenue associated with renewals or extensions of existing license agreements is recognized as revenue when the licensed content becomes available for the customer to use and benefit from under the renewal or extension. This change impacts the timing of revenue recognition (i.e., revenue is recorded at a later time) as compared with prior revenue recognition guidance. While revenues from renewal do occur, they are not a significant portion of our revenue and thus do not have a material impact on our revenue recognition. This change primarily impacts the Motion Picture and Television Production segments. Also, under the new guidance, the Company presents sales returns and certain sales incentive allowances as refund liabilities instead of as contra asset allowances within accounts receivable. On April 1, 2018, the liabilities for such sales returns and incentives were $86.9 million and were recorded in accounts payable and accrued liabilities on the consolidated balance sheet. Changes to the opening balances of current assets, total assets, current liabilities and total liabilities resulting from the adoption of the new guidance were as follows: March 31, 2018 Impact of Adoption April 1, 2018 (Amounts in millions) Current assets $ 1,773.1 $ 174.4 $ 1,947.5 Total assets $ 8,967.6 $ 143.6 $ 9,111.2 Current liabilities $ 2,412.4 $ 104.1 $ 2,516.5 Total liabilities $ 5,708.9 $ 124.9 $ 5,833.8 For further information, including the impact of adoption of the new guidance on the current fiscal year, see Note 12 . Recognition and Measurement of Financial Instruments : In January 2016, the Financial Accounting Standards Board ("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 became effective for the Company as of April 1, 2018, and has been applied on a prospective basis. Upon adoption of the new guidance, the Company recorded a transition adjustment of $2.6 million to reclassify the unrealized gains recorded through March 31, 2018 for the Company's investments in equity securities with a readily determinable fair market value from accumulated other comprehensive loss to retained earnings. After adoption of the new guidance, beginning in fiscal 2019, changes in the fair value of the Company's investments in equity securities with a readily determinable fair market value are recognized in net income. The adoption of the new guidance also impacted the accounting for the Company's investments in equity securities without a readily determinable fair value, which are now measured at cost less any impairment, adjusted for observable price changes in orderly transactions in the investees' securities that are identical or similar to the Company's investments in the investee. The impact of this change depends on the nature and extent of changes in observable prices, if any. See Note 5 . 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. This guidance became effective for the Company as of April 1, 2018, and has been applied on a retrospective basis. Upon adoption, in the consolidated statement of cash flows for the years ended March 31, 2018 and 2017, cash provided by operating activities was reduced by $2.8 million and $0.1 million , respectively, and beginning cash and cash equivalents was increased by $2.8 million and $2.9 million , respectively, to include restricted cash. There was no restricted cash in the consolidated balance sheets as of March 31, 2019 or March 31, 2018. Accounting Guidance Not Yet Adopted 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 will adopt the new standard on April 1, 2019 utilizing the modified retrospective approach. The Company is continuing its evaluation of the impact of the adoption and currently estimates the recognition of lease liabilities on the Company's consolidated balance sheet for its operating leases in the range from approximately $180 million to $200 million with a corresponding right-of-use assets balance, net of existing lease incentives, and no material impact on its consolidated statement of operations. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income : In February 2018, the FASB issued guidance that permits a company to reclassify the income tax effects of the Tax Cuts and Jobs Act (the "Tax Act") on items in accumulated other comprehensive income to retained earnings, eliminating the stranded tax effects resulting from the Tax Act. The new guidance only applies to the tax effects resulting from the Tax Act, and does not change the underlying guidance to recognize the effect of a change in tax laws or rates in income from continuing operations. This guidance is effective for the Company's fiscal year beginning April 1, 2019, with early adoption permitted. The Company does not expect that the adoption of this guidance will have a material effect on its consolidated financial statements. Disclosure Update and Simplification: In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification , amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of shareholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of shareholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule is effective for the first quarter of the Company's fiscal year beginning April 1, 2019. Fair Value Measurement - Changes to Disclosure Requirements : In August 2018, the FASB issued guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements. This guidance eliminates the requirement that entities disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but requires public companies to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements, among other changes. This guidance is effective for the Company's fiscal year beginning April 1, 2020, with early adoption permitted. The Company does not expect that the adoption of this guidance will have a material effect on its consolidated financial statements. Improvements to Accounting for Costs of Films and License Agreements for Program Materials : In March 2019, the FASB issued guidance that aligns the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. Accordingly, the capitalization of production costs for episodic television series is no longer constrained until persuasive evidence of secondary market revenues exists. In addition, under the new guidance, a company will need to determine at the outset of production whether a film or television program is primarily monetized on its own or within a film group. A film group is defined as the lowest level at which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements. In addition, under previous guidance, film and television programs accounted for under the broadcasting accounting standard were carried on the balance sheet at the lower of cost or net realizable value. The new guidance requires that an entity test a film or television program for impairment, when impairment indicators are present, at a film group level when the film or license agreement is predominantly monetized with other films and/or license agreements. The impairment would be measured as the difference between the carrying value of the film group and its fair value rather than its net realizable value. This guidance requires that an entity provide new disclosures about content that is either produced or licensed, and classify cash flows for licensed content as cash flows from operating activities in the statement of cash flows. This guidance is effective for the Company's fiscal year beginning April 1, 2020, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. |
Description of Business, Basi_3
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Useful Lives and Depreciation Methods of Property and Equipment | Depreciation is provided for on a straight line basis over the following useful lives: Distribution equipment 1 — 4 years Computer equipment and software 2 — 5 years Furniture and equipment 2 — 10 years Leasehold improvements Lease term or the useful life, whichever is shorter Building 26 years Land Not depreciated |
Basic Net Income (Loss) Per Common 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 years ended March 31, 2019 , 2018 and 2017 is presented below: Year Ended March 31, 2019 2018 2017 (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 $ (284.2 ) $ 473.6 $ 14.8 Denominator: Weighted average common shares outstanding 213.7 208.4 165.0 Basic net income (loss) per common share $ (1.33 ) $ 2.27 $ 0.09 |
Diluted Net Income (Loss) Per Common Share | Diluted net income (loss) per common share for the years ended March 31, 2019 , 2018 and 2017 is presented below: Year Ended March 31, 2019 2018 2017 (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 $ (284.2 ) $ 473.6 $ 14.8 Add: Interest on convertible notes, net of tax — 0.5 — Numerator for diluted net income (loss) per common share $ (284.2 ) $ 474.1 $ 14.8 Denominator: Weighted average common shares outstanding 213.7 208.4 165.0 Effect of dilutive securities: Conversion of notes — 2.1 — Share purchase options — 7.5 3.5 Restricted share units and restricted stock — 0.7 0.3 Contingently issuable shares — 1.7 3.4 Adjusted weighted average common shares outstanding 213.7 220.4 172.2 Diluted net income (loss) per common share $ (1.33 ) $ 2.15 $ 0.09 |
Anti-dilutive Shares Issuable | Additionally, for the years ended March 31, 2019 , 2018 and 2017 , 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 regardless of net income or loss in the period. Year Ended March 31, 2019 2018 2017 (Amounts in millions) Anti-dilutive shares issuable Conversion of notes — — 5.2 Share purchase options 21.3 11.5 12.1 Restricted share units 1.0 0.2 0.6 Other issuable shares 1.4 1.2 1.2 Total weighted average anti-dilutive shares issuable excluded from diluted net income (loss) per common share 23.7 12.9 19.1 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Changes to the opening balances of current assets, total assets, current liabilities and total liabilities resulting from the adoption of the new guidance were as follows: March 31, 2018 Impact of Adoption April 1, 2018 (Amounts in millions) Current assets $ 1,773.1 $ 174.4 $ 1,947.5 Total assets $ 8,967.6 $ 143.6 $ 9,111.2 Current liabilities $ 2,412.4 $ 104.1 $ 2,516.5 Total liabilities $ 5,708.9 $ 124.9 $ 5,833.8 The following table presents the line items impacted by the adoption of the new revenue recognition guidance (described in Note 1 ) on the consolidated balance sheet and statement of operations: March 31, 2019 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Balance Sheet Information: (Amounts in millions) Assets Accounts receivable, net - current $ 647.2 $ (6.2 ) $ 641.0 Other assets - current 267.2 (97.3 ) 169.9 Other assets - non-current 436.1 (0.5 ) 435.6 Investment in films and television programs and program rights, net 1,672.0 37.3 1,709.3 Liabilities Accounts payable and accrued liabilities 531.2 (58.7 ) 472.5 Participations and residuals - current 408.5 1.9 410.4 Deferred revenue - current 146.5 (0.6 ) 145.9 Deferred revenue - non-current 62.8 0.8 63.6 Deferred tax liabilities 56.5 (1.9 ) 54.6 Equity Retained earnings 208.7 (8.2 ) 200.5 Year Ended March 31, 2019 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Statement of Operations Information: (Amounts in millions) Revenues $ 3,680.5 $ 44.9 $ 3,725.4 Direct operating 2,028.2 31.0 2,059.2 Operating income 130.0 13.9 143.9 Interest and other income 12.0 — 12.0 Loss before income taxes (308.1 ) 13.9 (294.2 ) Income tax benefit 8.5 (3.4 ) 5.1 Net loss (299.6 ) 10.5 (289.1 ) |
Merger and Acquisitions (Tables
Merger and Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 previously 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) $ 179.3 Cash consideration paid to Starz stockholders Starz Series A common stock at $18.00 $ 1,123.3 Starz Series B common stock at $7.26 52.8 1,176.1 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 $ 1,088.0 Starz Series B common stock at exchange ratio of 0.6321 Lionsgate voting shares 121.6 Starz Series B common stock at exchange ratio of 0.6321 Lionsgate non-voting shares 118.1 1,327.7 Replacement of Starz share-based payment awards (2) 186.5 Liability for dissenting shareholders (3) 797.3 Total purchase consideration $ 3,666.9 (1) The difference between the fair value ( $179.3 million ) and the original cost ( $158.9 million ) of the available-for-sale investment in equity securities of Starz held by Lionsgate on the date of the Starz Merger (December 8, 2016), amounting to $20.4 million , was reflected in the gain (loss) on investments line item in the consolidated statement of operations for the fiscal year ended March 31, 2017. (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 is being recognized as share-based compensation expense over the remaining post-combination service period. The estimated aggregate fair value of the Lions Gate replacement awards recorded as part of the purchase consideration was $186.5 million , and the estimated remaining aggregate fair value totaling $43.3 million is being recognized 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 0.39% - 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 was zero since the combined company had suspended the quarterly dividend. (3) In connection with the Starz Merger, Starz received demands for appraisal from purported holders of approximately 22.5 million shares of Starz Series A common stock, and the Company recorded a dissenting shareholders' liability at the time of acquisition for the value of the original merger consideration attributable to the dissenting shareholders. As of March 31, 2018, the Company had not paid the merger consideration for the shares that had demanded appraisal but had recorded a liability of $869.3 million that was included in current dissenting shareholders' liability on the consolidated balance sheet for the estimated value of the merger consideration that would have been payable for such shares, plus interest accrued at the Federal Reserve discount rate plus 5% , compounded quarterly. In November 2018 a settlement agreement was reached and the dissenting shareholders' liability was paid. See Note 17 for further information. |
Fair Value Assumptions in Replacement Awards | 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 is being recognized as share-based compensation expense over the remaining post-combination service period. The estimated aggregate fair value of the Lions Gate replacement awards recorded as part of the purchase consideration was $186.5 million , and the estimated remaining aggregate fair value totaling $43.3 million is being recognized 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 0.39% - 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 was zero since the combined company had suspended the quarterly dividend. |
Purchase Price Allocation | Allocation of Purchase Consideration. The Company has made an allocation of the purchase price of Starz 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 $ 73.5 Accounts receivable 254.9 Investment in films and television programs and program rights 851.9 Property and equipment 121.4 Investments 12.1 Intangible assets 2,071.0 Other assets 139.9 Accounts payable and accrued liabilities (143.1 ) Corporate debt and capital lease obligations (1,013.1 ) Deferred tax liabilities (713.6 ) Other liabilities (165.0 ) Fair value of net assets acquired 1,489.9 Goodwill 2,177.0 Total purchase consideration $ 3,666.9 |
Starz | |
Business Acquisition [Line Items] | |
Pro Forma Statement of Operations Information | The following unaudited pro forma condensed consolidated statements of operations information presented below illustrates the results of operations of the Company as if the Starz Merger and related debt financing (see Note 7 ) occurred on April 1, 2016. Year Ended March 31, 2017 (Amounts in millions, except per share amounts) Revenues $ 4,323.7 Net income attributable to Lions Gate Entertainment Corp. shareholders $ 148.4 Basic Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.74 Diluted Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders $ 0.71 The unaudited pro forma condensed consolidated statement of operations information does not include adjustments for any operating efficiencies or cost savings, and exclude $70.9 million of acquisition-related costs that were expensed in restructuring and other expenses during the year ended March 31, 2017. |
Investment In Films and Telev_2
Investment In Films and Television Programs and Program Rights (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Investment In Films And Television Programs and Program Rights [Abstract] | |
Investment In Films And Television Programs and Program Rights | March 31, March 31, (Amounts in millions) Motion Picture Segment - Theatrical and Non-Theatrical Films Released, net of accumulated amortization $ 376.7 $ 410.5 Acquired libraries, net of accumulated amortization 1.8 2.1 Completed and not released 80.6 55.0 In progress 250.4 347.2 In development 45.0 24.6 754.5 839.4 Television Production Segment - Direct-to-Television Programs Released, net of accumulated amortization 186.1 238.9 In progress 295.6 186.6 In development 17.6 4.8 499.3 430.3 Media Networks Segment Released program rights, net of accumulated amortization 591.0 616.9 In progress 106.8 45.6 In development 56.2 30.0 754.0 692.5 Intersegment eliminations (40.1 ) (17.0 ) Investment in films and television programs and program rights, net 1,967.7 1,945.2 Less current portion of program rights (295.7 ) (253.2 ) Non-current portion $ 1,672.0 $ 1,692.0 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | March 31, 2019 March 31, 2018 (Amounts in millions) Distribution equipment (1) $ 29.1 $ 30.4 Building (2) 50.4 50.4 Leasehold improvements 43.2 29.7 Property and equipment 25.6 21.1 Computer equipment and software 146.8 117.2 295.1 248.8 Less accumulated depreciation and amortization (141.0 ) (88.3 ) 154.1 160.5 Land 1.2 1.2 $ 155.3 $ 161.7 _______________ (1) This category includes the cost of satellite transponders accounted for as capital leases, which was $9.5 million as of March 31, 2019, and accumulated depreciation for these transponders was $6.2 million (2018 - cost of $16.8 million , accumulated depreciation of $7.1 million ). (2) Represents the cost of Starz's building in Englewood, Colorado which is accounted for as a capital lease. Accumulated depreciation for the building totaled $3.5 million at March 31, 2019 (2018 - $2.6 million ). |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments, and Investments in Debt and Equity Securities [Abstract] | |
Carrying Amount of Investments, By Category | The Company's investments consisted of the following: March 31, March 31, (Amounts in millions) Investments in equity method investees $ 24.5 $ 127.0 Other investments 1.7 37.9 $ 26.2 $ 164.9 |
Equity Interests Income (Loss) | The Company's equity interests income (loss) were as follows: Year Ended March 31, Equity Method Investee 2019 2018 2017 (Amounts in millions) EPIX (1) $ — $ 4.0 $ 31.0 Pop (2) (8.4 ) (9.0 ) (6.9 ) Other (34.5 ) (47.8 ) (13.4 ) $ (42.9 ) $ (52.8 ) $ 10.7 ____________________ (1) The Company's equity interest in EPIX was sold in May 2017 (see further discussion under "Gain (Loss) on Investments" section below). (2) The Company's equity interest in Pop was sold in March 2019 (see further discussion under "Pop" section below). |
Gain (Loss) on Investments | The following table summarizes the components of the gain (loss) on investments: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Impairments of investments (1) $ (36.8 ) $ (29.2 ) $ — Unrealized losses on equity securities held as of March 31, 2019 (6.2 ) — — Gain (loss) on sale of equity method investees (2) (44.6 ) 201.0 — Gain on Starz investment (3) — — 20.4 $ (87.6 ) $ 171.8 $ 20.4 _________________ (1) In the fiscal years ended March 31, 2019 and 2018, amounts include impairments of equity method investments, and the fiscal year ended March 31, 2019 also includes other-than-temporary impairments of $34.2 million on investments in equity securities without readily determinable fair values and notes receivable (previously included in other assets) which were written down to their estimated fair value. (2) In the fiscal year ended March 31, 2019, represents the loss before income taxes recorded in connection with the March 2019 sale of the Company's 50.0% equity interest in Pop. In the fiscal year ended March 31, 2018, represents the gain before income taxes recorded in connection with the May 2017 sale of the Company's 31.15% equity interest in EPIX. (3) Represents the difference between the fair value and the original cost of the available-for-sale investment in equity securities of Starz held on the date of the Starz Merger (December 8, 2016). |
Pop | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Statement of Income | The following table presents the summarized statements of operations for the period from April 1, 2018 through the date of sale of March 15, 2019, and for the years ended March 31, 2018 and 2017 for Pop and a reconciliation of the net loss reported by Pop to equity interest loss recorded by the Company: Period from April 1, 2018 to March 15, 2019 (date of sale) Year Ended March 31, 2018 2017 Revenues $ 96.9 $ 110.9 $ 95.0 Expenses: Cost of services 55.0 66.2 52.7 Selling, marketing, and general and administration 49.9 54.1 47.6 Depreciation and amortization 7.4 8.1 7.9 Operating loss (15.4 ) (17.5 ) (13.2 ) Interest expense, net 2.2 1.0 0.6 Accretion of redeemable preferred stock units (1) 89.4 79.1 67.8 Total interest expense, net 91.6 80.1 68.4 Net loss $ (107.0 ) $ (97.6 ) $ (81.6 ) Reconciliation of net loss reported by Pop to equity interest loss: Net loss reported by Pop $ (107.0 ) $ (97.6 ) $ (81.6 ) Ownership interest in Pop 50 % 50 % 50 % The Company's share of net loss (53.5 ) (48.8 ) (40.8 ) Accretion of dividend and interest income on redeemable preferred stock units (1) 44.7 39.5 33.9 Elimination of the Company's share of profits on licensing sales to Pop (0.2 ) (0.8 ) (0.6 ) Realization of the Company’s share of profits on licensing sales to Pop 0.6 1.1 0.6 Total equity interest loss recorded $ (8.4 ) $ (9.0 ) $ (6.9 ) ___________________ (1) Accretion of mandatorily redeemable preferred stock units represents Pop's 10% dividend and the amortization of discount on its mandatorily redeemable preferred stock units held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest income (loss). |
EPIX | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Statement of Income | The following table presents the summarized statements of income for EPIX for the period from April 1, 2017 through the date of sale of May 11, 2017, and for the year ended March 31, 2017 and a reconciliation of the net income reported by EPIX to equity interest income recorded by the Company: Period from April 1, 2017 to May 11, 2017 (date of sale) Twelve Months Ended March 31, 2017 (Amounts in millions) Revenues $ 44.8 $ 400.1 Expenses: Operating expenses 32.3 259.8 Selling, general and administrative expenses 2.4 23.3 Operating income 10.1 117.0 Interest and other expense — (0.3 ) Net income $ 10.1 $ 116.7 Reconciliation of net income reported by EPIX to equity interest income: Net income reported by EPIX $ 10.1 $ 116.7 Ownership interest in EPIX 31.15 % 31.15 % The Company's share of net income 3.1 36.4 Eliminations of the Company’s share of profits on licensing sales to EPIX (1) (0.1 ) (12.4 ) Realization of the Company’s share of profits on licensing sales to EPIX (2) 1.0 7.0 Total equity interest income recorded $ 4.0 $ 31.0 _________________________ (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. |
Other Equity Method Investments | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Balance Sheet | Summarized financial information for the Company's "other equity method investees", on an aggregate basis, is set forth below: March 31, March 31, (Amounts in millions) Current assets $ 189.8 $ 232.7 Non-current assets $ 55.7 $ 130.0 Current liabilities $ 167.8 $ 201.5 Non-current liabilities $ 46.7 $ 45.0 |
Summarized Statement of Income | Year Ended March 31, 2019 2018 2017 (Amounts in millions) Revenues $ 107.5 $ 178.8 $ 30.1 Gross profit $ 36.9 $ 42.6 $ 9.1 Net loss $ (102.6 ) $ (117.7 ) $ (50.8 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill by reporting segment were as follows: Motion Picture Television Production Media Networks Total (Amounts in millions) Balance as of March 31, 2017 $ 361.9 $ 309.2 $ 2,029.4 $ 2,700.5 Business acquisitions (1) 29.0 — — 29.0 Measurement period adjustments (2) 2.8 — 8.5 11.3 Balance as of March 31, 2018 393.7 309.2 2,037.9 2,740.8 Business acquisitions (1) — 92.0 — 92.0 Measurement period adjustments (2) — 0.7 — 0.7 Balance as of March 31, 2019 $ 393.7 $ 401.9 $ 2,037.9 $ 2,833.5 ______________________ (1) In fiscal 2019 and 2018, represents the goodwill resulting from the acquisitions of 3 Arts Entertainment and Good Universe, respectively (see Note 2 ). (2) In fiscal 2019, represents measurement period adjustments resulting from the acquisition of 3 Arts Entertainment (see Note 2 ), consisting of a decrease to the fair value of finite-lived intangible assets and a corresponding increase to goodwill. In fiscal 2018, represents measurement period adjustments related to the Starz Merger. |
Finite-Lived Intangible Assets | Finite-lived intangible assets consisted of the following as of March 31, 2019 and March 31, 2018 : March 31, 2019 March 31, 2018 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) $ 1,852.0 $ 250.8 $ 1,601.2 $ 1,821.0 $ 141.4 $ 1,679.6 Trademarks and trade names 3.6 1.0 2.6 2.0 0.6 1.4 Other 23.9 6.1 17.8 9.5 2.8 6.7 $ 1,879.5 $ 257.9 $ 1,621.6 $ 1,832.5 $ 144.8 $ 1,687.7 _______________ (1) Customer relationships primarily represent affiliation agreements with distributors acquired in the Starz Merger. |
Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets not subject to amortization consisted of the following: March 31, 2019 March 31, 2018 (Amounts in millions) Indefinite-lived intangible assets not subject to amortization: Tradenames (1) $ 250.0 $ 250.0 _______________ (1) Tradenames are 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. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and March 31, 2018 : March 31, March 31, (Amounts in millions) Corporate debt: Revolving credit facility $ — $ — Term Loan A (1) 750.0 750.0 Term Loan B (1) 1,107.5 1,250.0 5.875% Senior Notes 520.0 520.0 6.375% Senior Notes 550.0 — Total corporate debt 2,927.5 2,520.0 Convertible senior subordinated notes — 60.0 Capital lease obligations 45.4 50.5 Total debt 2,972.9 2,630.5 Unamortized discount and debt issuance costs, net of fair value adjustment on capital lease obligations (68.5 ) (73.1 ) Total debt, net 2,904.4 2,557.4 Less current portion (53.6 ) (79.1 ) Non-current portion of debt $ 2,850.8 $ 2,478.3 ______________ (1) To manage interest rate risk on certain of its LIBOR-based floating-rate corporate debt, as of March 31, 2019 , the Company has entered into interest rate swaps to effectively convert the floating interest rates to fixed interest rates on a $1.7 billion notional amount, which as of March 31, 2019 converts the effective rate on $1.7 billion of our LIBOR-based corporate debt to 4.987% (see Note 18 for further information). |
Future Annual Contractual Principal Payment Commitments of Debt | The following table sets forth future annual contractual principal payment commitments of debt as of March 31, 2019 : Maturity Date Year Ended March 31, Debt Type 2020 2021 2022 2023 2024 Thereafter Total (Amounts in millions) Revolving Credit Facility March 2023 $ — $ — $ — $ — $ — $ — $ — Term Loan A March 2023 37.5 52.5 75.0 585.0 — — 750.0 Term Loan B March 2025 12.5 12.5 12.5 12.5 12.5 1,045.0 1,107.5 5.875% Senior Notes November 2024 — — — — — 520.0 520.0 6.375% Senior Notes February 2024 — — — — 550.0 — 550.0 Capital lease obligations Various 3.0 3.0 0.9 0.9 1.0 36.6 45.4 $ 53.0 $ 68.0 $ 88.4 $ 598.4 $ 563.5 $ 1,601.6 2,972.9 Less aggregate unamortized discount & debt issuance costs, net of fair value adjustment on capital lease obligations (68.5 ) $ 2,904.4 |
Summary of Loss on Extinguishment of Debt and Debt Issuance Costs | The following tables summarize the accounting for the debt issuance costs incurred and the related loss on extinguishment of debt recorded in the years ended March 31, 2018 and March 31, 2017 associated with the debt transactions discussed above. During the year ended March 31, 2019, the Company recorded a loss on extinguishment of debt of $1.9 million related to early repayments on the Term Loan B. Year Ended March 31, 2018 Loss on Extinguishment of Debt Capitalized & Amortized Over Life of New Issuances Total (Amounts in millions) New debt issuance costs $ 11.0 $ 11.6 $ 22.6 Previously incurred debt issuance costs or unamortized discount 24.7 Total $ 35.7 Year Ended March 31, 2017 Loss on Extinguishment of Debt Capitalized & Amortized Over Life of New Issuances Total (Amounts in millions) New debt issuance costs and call premium $ 20.6 $ 115.0 $ 135.6 Previously incurred debt issuance costs or unamortized discount 19.8 Total $ 40.4 |
Schedule of Interest Expense | The table below sets forth the composition of the Company’s interest expense for the years ended March 31, 2019 , 2018 and 2017: Year Ended March 31, 2019 2018 2017 Interest expense Cash interest $ 152.0 $ 122.9 $ 86.8 Amortization of debt discount and financing costs 11.6 14.3 12.9 163.6 137.2 99.7 Interest on dissenting shareholders' liability (see Note 17) 35.3 56.5 15.5 Total interest expense $ 198.9 $ 193.7 $ 115.2 |
Film Obligations and Producti_2
Film Obligations and Production Loans (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Film Obligations And Production Loans [Abstract] | |
Films Obligations And Production Loans | March 31, March 31, (Amounts in millions) Film obligations $ 270.3 $ 146.7 Production loans 386.4 352.9 Total film obligations and production loans 656.7 499.6 Unamortized debt issuance costs (1.0 ) (0.4 ) Total film obligations and production loans, net 655.7 499.2 Less current portion (512.6 ) (327.9 ) Total non-current film obligations and production loans $ 143.1 $ 171.3 |
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 March 31, 2019 : Year Ended March 31, 2020 2021 2022 2023 2024 Thereafter Total (Amounts in millions) Film obligations $ 177.3 $ 68.3 $ 13.9 $ 7.0 $ 3.0 $ 1.1 $ 270.6 Production loans 336.6 49.8 — — — — 386.4 $ 513.9 $ 118.1 $ 13.9 $ 7.0 $ 3.0 $ 1.1 $ 657.0 Less imputed interest on film obligations and debt issuance costs on production loans (1.3 ) $ 655.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and 2018 : March 31, 2019 March 31, 2018 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in millions) Available-for-sale equity securities (see Note 5) $ 1.2 $ — $ 1.2 $ 7.3 $ — $ 7.3 Forward exchange contracts (see Note 18) — 1.5 1.5 — 0.3 0.3 Liabilities: Forward exchange contracts (see Note 18) — (0.6 ) (0.6 ) — (0.6 ) (0.6 ) Interest rate swaps (see Note 18) — (63.6 ) (63.6 ) — — — $ 1.2 $ (62.7 ) $ (61.5 ) $ 7.3 $ (0.3 ) $ 7.0 |
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 outstanding debt at March 31, 2019 and March 31, 2018 : March 31, 2019 March 31, 2018 (Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value (Level 2) (Level 2) Liabilities (1) : Term Loan A 733.3 742.5 729.7 750.9 Term Loan B 1,091.2 1,088.1 1,229.3 1,251.6 5.875% Senior Notes 502.8 534.3 500.4 539.5 6.375% Senior Notes 541.4 576.1 — — April 2013 1.25% Notes — — 60.0 60.3 Production loans 385.4 386.4 352.6 352.9 $ 2,712.7 $ 2,891.3 $ 2,872.0 $ 2,955.2 ________________ (1) The Company measures the fair value of its outstanding debt using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements). |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests | The table below presents the reconciliation of changes in redeemable noncontrolling interests: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Beginning balance $ 101.8 $ 93.8 $ 90.5 Initial fair value of redeemable noncontrolling interests 15.8 — — Net income (loss) attributable to noncontrolling interests (16.2 ) 0.5 (0.3 ) Noncontrolling interest discount accretion 22.1 6.1 5.0 Adjustments to redemption value 6.5 9.3 5.5 Cash distributions (2.4 ) (7.9 ) (6.9 ) Ending balance $ 127.6 $ 101.8 $ 93.8 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below presents revenues by segment, market or product line for the fiscal years ended March 31, 2019 , 2018 and 2017 . The prior year information in the below table has not been adjusted under the modified retrospective method of adoption of the new revenue recognition guidance. Year Ended March 31, 2019 2018 2017 (Amounts in millions) Revenue by Type: Motion Picture Theatrical $ 215.8 $ 281.4 $ 371.3 Home Entertainment Digital Media 334.7 373.7 303.9 Packaged Media 257.5 400.3 403.8 Total Home Entertainment 592.2 774.0 707.7 Television 274.4 278.5 279.1 International 341.1 456.7 533.8 Other 40.9 31.5 28.7 Total Motion Picture revenues 1,464.4 1,822.1 1,920.6 Television Production Television 655.8 744.5 667.3 International 136.0 179.6 163.2 Home Entertainment Digital Media 66.9 96.3 50.1 Packaged Media 7.6 11.2 6.3 Total Home Entertainment 74.5 107.5 56.4 Other 54.6 1.6 5.9 Total Television Production revenues 920.9 1,033.2 892.8 Media Networks - Programming Revenues Domestic (1) 1,458.9 1,411.2 426.3 International 2.1 — — 1,461.0 1,411.2 426.3 Intersegment eliminations (165.8 ) (137.4 ) (38.2 ) Total revenues $ 3,680.5 $ 4,129.1 $ 3,201.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at March 31, 2019 are as follows: Year Ended March 31, 2020 2021 2022 Thereafter Total (Amounts in millions) Remaining Performance Obligations $ 1,257.1 $ 275.4 $ 120.1 $ 163.4 $ 1,816.0 The above table does not include estimates of variable consideration for transactions involving sales or usage-based royalties in exchange for licenses of intellectual property. The revenues included in the above table include all fixed fee contracts regardless of duration. |
Contract with Customer, Asset and Liability | At March 31, 2019 and April 1, 2018, accounts receivable, contract assets and deferred revenue are as follows: March 31, April 1, Addition (Reduction) (Amounts in millions) Accounts receivable, net - current $ 647.2 $ 1,042.2 $ (395.0 ) Accounts receivable, net - non-current (1) 176.1 257.7 (81.6 ) Contract asset - current (2) 97.3 78.3 19.0 Contract asset - non-current (3) 72.1 71.5 0.6 Deferred revenue - current 146.5 183.8 (37.3 ) Deferred revenue - non-current 62.8 70.5 (7.7 ) __________________ (1) Included in accounts receivable within non-current other assets in the consolidated balance sheets. (2) Included in prepaid expenses and other within other current assets in the consolidated balance sheets. (3) Included in prepaid expenses and other within non-current other assets in the consolidated balance sheets. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Changes to the opening balances of current assets, total assets, current liabilities and total liabilities resulting from the adoption of the new guidance were as follows: March 31, 2018 Impact of Adoption April 1, 2018 (Amounts in millions) Current assets $ 1,773.1 $ 174.4 $ 1,947.5 Total assets $ 8,967.6 $ 143.6 $ 9,111.2 Current liabilities $ 2,412.4 $ 104.1 $ 2,516.5 Total liabilities $ 5,708.9 $ 124.9 $ 5,833.8 The following table presents the line items impacted by the adoption of the new revenue recognition guidance (described in Note 1 ) on the consolidated balance sheet and statement of operations: March 31, 2019 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Balance Sheet Information: (Amounts in millions) Assets Accounts receivable, net - current $ 647.2 $ (6.2 ) $ 641.0 Other assets - current 267.2 (97.3 ) 169.9 Other assets - non-current 436.1 (0.5 ) 435.6 Investment in films and television programs and program rights, net 1,672.0 37.3 1,709.3 Liabilities Accounts payable and accrued liabilities 531.2 (58.7 ) 472.5 Participations and residuals - current 408.5 1.9 410.4 Deferred revenue - current 146.5 (0.6 ) 145.9 Deferred revenue - non-current 62.8 0.8 63.6 Deferred tax liabilities 56.5 (1.9 ) 54.6 Equity Retained earnings 208.7 (8.2 ) 200.5 Year Ended March 31, 2019 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Statement of Operations Information: (Amounts in millions) Revenues $ 3,680.5 $ 44.9 $ 3,725.4 Direct operating 2,028.2 31.0 2,059.2 Operating income 130.0 13.9 143.9 Interest and other income 12.0 — 12.0 Loss before income taxes (308.1 ) 13.9 (294.2 ) Income tax benefit 8.5 (3.4 ) 5.1 Net loss (299.6 ) 10.5 (289.1 ) |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Equity and Share-based Compensation [Abstract] | |
Common Shares Reserved For Future Issuance | The table below outlines common shares reserved for future issuance: March 31, March 31, (Amounts in millions) Stock options and equity-settled SARs outstanding 34.6 32.1 Restricted stock and restricted share units — unvested 2.0 2.2 Common shares available for future issuance under the 2017 Plan (as defined below) 6.7 10.3 Shares issuable upon conversion of April 2013 1.25% Notes — 2.1 Shares reserved for future issuance 43.3 46.7 |
Dividends Declared | During the fiscal years ended March 31, 2019 , 2018 and 2017 , the Company's Board of Directors declared the following quarterly cash dividends: Dividends Declared Per Common Share Total Amount Payment Date (in millions) Fiscal Year 2019: Second quarter ended September 30, 2018 $0.09 $ 19.3 November 8, 2018 First quarter ended June 30, 2018 $0.09 19.2 August 9, 2018 Total cash dividends declared in fiscal year 2019 $0.18 $ 38.5 Fiscal Year 2018: Fourth quarter ended March 31, 2018 $0.09 $ 19.1 May 1, 2018 Fiscal Year 2017: First quarter ended June 30, 2016 $0.09 $ 13.3 August 5, 2016 |
Share-Based Compensation Expense | The Company recognized the following share-based compensation expense during the years ended March 31, 2019 , 2018 and 2016: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Compensation Expense: Stock options $ 23.0 $ 43.1 $ 42.5 Restricted share units and other share-based compensation 24.7 36.2 34.0 Share appreciation rights 4.4 6.3 0.6 52.1 85.6 77.1 Impact of accelerated vesting on equity awards (1) 16.0 2.9 2.4 Total share-based compensation expense $ 68.1 $ 88.5 $ 79.5 Tax impact (2) (15.7 ) (29.6 ) (28.0 ) Reduction in net income $ 52.4 $ 58.9 $ 51.5 ___________________ (1) Represents the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. (2) Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements. Share-based compensation expense, by expense category, consisted of the following: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Compensation Expense: Direct operating $ 1.1 $ 1.1 $ 1.2 Distribution and marketing 0.4 0.9 0.4 General and administration 50.6 83.6 75.5 Restructuring and other 16.0 2.9 2.4 $ 68.1 $ 88.5 $ 79.5 |
Stock Options Activity | : Stock Options and Equity-Settled SARs Class A Voting Shares Class B Non-Voting Shares Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value (Amounts in millions, except for weighted-average exercise price and years) Outstanding at March 31, 2018 8.6 $26.93 23.5 $20.56 Granted 0.2 $28.07 4.2 $21.52 Exercised — (1) $15.76 (0.7 ) $10.78 Forfeited or expired (0.4 ) $33.42 (0.8 ) $29.00 Outstanding at March 31, 2019 8.4 $26.70 4.97 $ 0.1 26.2 $20.72 4.17 $ 25.4 Vested or expected to vest at March 31, 2019 8.4 $26.71 4.96 $ 0.1 25.8 $20.70 4.13 $ 25.4 Exercisable at March 31, 2019 6.1 $27.91 4.18 $ 0.1 19.1 $19.72 2.74 $ 25.3 __________________ (1) Represents less than 0.1 million shares. |
Stock Options Granted Valuation Assumptions | The following table presents the weighted average grant-date fair value of options granted in the years ended March 31, 2019 , 2018 and 2017 , and the weighted average applicable assumptions used in the Black-Scholes option-pricing model for stock options and share-appreciation rights granted during the years then ended: Year Ended March 31, 2019 2018 2017 Weighted average fair value of grants $5.48 $8.38 $6.88 Weighted average assumptions: Risk-free interest rate (1) 2.2% - 3.1% 1.7% - 2.7% 1.2% - 2.4% Expected option lives (in years) (2) 1 - 7 years 4 - 6 years 4 - 10 years Expected volatility for options (3) 34% 35% 35% Expected dividend yield (4) 0.0% - 1.7% 0.0% - 1.5% 0.0% - 1.8% ____________________________ (1) The risk-free rate assumed in valuing the options is based on the U.S. Treasury Yield curve in effect applied against the expected term of the option at the time of the grant. (2) The expected term of options granted represents the period of time that options granted are expected to be outstanding. (3) Expected volatilities are based on implied volatilities from traded options on the Company’s shares, historical volatility of the Company’s shares and other factors. (4) The expected dividend yield is estimated by dividing the expected annual dividend by the market price of the Company's shares at the date of grant. |
Restricted Share Units Award Activity | The following table sets forth the restricted share unit and restricted stock activity during the year ended March 31, 2019 : Restricted Share Units Restricted Stock Class A Voting Shares Weighted-Average Grant-Date Fair Value Class B Non-Voting Shares Weighted-Average Grant-Date Fair Value Class B Non-Voting Shares Weighted-Average Grant-Date Fair Value (Amounts in millions, except for weighted-average grant date fair value) Outstanding at March 31, 2018 0.2 $28.49 1.5 $28.71 0.5 $25.70 Granted — (1) $23.51 1.3 $19.88 — — Vested (0.1 ) $29.05 (0.9 ) $26.14 (0.2 ) $25.70 Forfeited — (1) $24.83 (0.3 ) $23.24 — (1) $25.70 Outstanding at March 31, 2019 0.1 $25.68 1.6 $24.01 0.3 $25.70 __________________ (1) Represents less than 0.1 million shares. |
Unrecognized Compensation Cost, Nonvested Awards | The following table summarizes the total remaining unrecognized compensation cost as of March 31, 2019 related to non-vested stock options and restricted stock and restricted share units and the weighted average remaining years over which the cost will be recognized: Total Unrecognized Compensation Cost Weighted Average Remaining Years (Amounts in millions) Stock Options $ 43.4 2.8 Restricted Stock and Restricted Share Units 31.9 2.0 Total $ 75.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Pre-Tax Income | The components of pretax income, net of intercompany eliminations, are as follows: Year Ended March 31, 2019 2018 2017 (Amounts in millions) United States $ (505.7 ) $ (824.1 ) $ (409.2 ) International 197.6 972.8 274.8 $ (308.1 ) $ 148.7 $ (134.4 ) |
Current and Deferred Income Tax Provision (Benefits) | The Company’s current and deferred income tax provision (benefits) are as follows: Year Ended March 31, 2019 2018 2017 Current provision (benefit): (Amounts in millions) Federal $ 9.1 $ (17.6 ) $ 7.8 States (0.7 ) (4.3 ) 2.2 International 6.7 2.0 4.5 Total current provision (benefit) $ 15.1 $ (19.9 ) $ 14.5 Deferred benefit: Federal $ (48.2 ) $ (269.0 ) $ (143.3 ) States 5.8 (18.5 ) (9.9 ) International 18.8 (12.0 ) (10.2 ) Total deferred benefit (23.6 ) (299.5 ) (163.4 ) Total benefit for income taxes $ (8.5 ) $ (319.4 ) $ (148.9 ) |
Effective Income Tax Rate Reconciliation | The differences between income taxes expected at U.S. statutory income tax rates and the income tax provision are as set forth below: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Income taxes computed at Federal statutory rate $ (64.7 ) $ 46.8 $ (47.1 ) Foreign affiliate dividends (37.5 ) (329.1 ) (84.2 ) Foreign operations subject to different income tax rates (235.7 ) 7.1 (14.6 ) State income tax (8.5 ) (21.2 ) (6.0 ) Remeasurement of opening U.S. deferred tax liabilities due to the Tax Act — (165.0 ) — Additional remeasurements of originating deferred tax assets and liabilities — 75.6 — Transaction costs — — 7.3 Permanent differences 6.8 3.5 (0.5 ) Nondeductible settlement costs 16.9 — — Other 0.3 (5.3 ) (2.3 ) Increase (decrease) in valuation allowance 313.9 68.2 (1.5 ) Total benefit for income taxes $ (8.5 ) $ (319.4 ) $ (148.9 ) |
Deferred Tax Assets and Liabilities | The income tax effects of temporary differences between the book value and tax basis of assets and liabilities are as follows: March 31, 2019 March 31, 2018 (Amounts in millions) Deferred tax assets: Net operating losses $ 609.5 $ 336.7 Foreign tax credits 74.2 68.3 Investment in film and television obligations 79.0 101.5 Accounts payable 78.9 96.4 Other assets 71.7 59.0 Reserves 13.9 21.4 Total deferred tax assets 927.2 683.3 Valuation allowance (401.1 ) (73.2 ) Deferred tax assets, net of valuation allowance 526.1 610.1 Deferred tax liabilities: Intangible assets (438.4 ) (475.5 ) Fixed assets (8.6 ) (19.5 ) Accounts receivable (110.6 ) (150.7 ) Other (5.2 ) (17.5 ) Total deferred tax liabilities $ (562.8 ) $ (663.2 ) Net deferred tax liabilities $ (36.7 ) $ (53.1 ) |
Summary of Income Tax Contingencies | The following table summarizes the changes to the gross unrecognized tax benefits for the years ended March 31, 2019 , 2018, and 2017: Amounts in millions Gross unrecognized tax benefits at March 31, 2016 $ 4.5 Increases related to prior year tax positions 14.2 Decreases related to prior year tax positions (4.5 ) Settlements — Lapse in statute of limitations — Gross unrecognized tax benefits at March 31, 2017 14.2 Increases related to current year tax position 0.1 Increases related to prior year tax positions 11.5 Decreases related to prior year tax positions (8.2 ) Settlements — Lapse in statute of limitations — Gross unrecognized tax benefits at March 31, 2018 17.6 Increases related to current year tax position 0.3 Increases related to prior year tax positions 2.5 Decreases related to prior year tax positions (1.0 ) Settlements (1.8 ) Lapse in statute of limitations (0.8 ) Gross unrecognized tax benefits at March 31, 2019 $ 16.8 |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable, and were as follows for the years ended March 31, 2019, 2018 and 2017: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Restructuring and other: Severance (1) Cash $ 31.5 $ 21.5 $ 26.7 Accelerated vesting on equity awards (see Note 13) 16.0 2.9 2.4 Total severance costs 47.5 24.4 29.1 Transaction and related costs (2) 30.5 22.2 59.6 Development expense (3) — 13.2 — Total restructuring and other 78.0 59.8 88.7 Programming and content charges (4) 35.1 — — Total restructuring and other and programming and content charges $ 113.1 $ 59.8 $ 88.7 _______________________ (1) Severance costs in the fiscal years ended March 31, 2019, 2018 and 2017 were primarily related to restructuring activities in connection with recent acquisitions, and other cost-saving initiatives. Of the severance costs, $21.2 million is recorded as a liability and is expected to be paid by March 31, 2020. (2) Transaction and related costs in the fiscal years ended March 31, 2019, 2018 and 2017 reflect transaction, integration and legal costs incurred associated with certain strategic transactions and legal matters. In fiscal 2019, these costs were primarily related to the legal fees associated with the Starz class action lawsuits and other matters and, to a lesser extent, costs related to the acquisition of 3 Arts Entertainment and other strategic transactions. In fiscal 2018, these costs were primarily related to the sale of EPIX (see Note 5 ), the legal fees associated with the Starz class action lawsuits and other matters, and the integration of Starz. In fiscal 2017, these costs were primarily related to the Starz Merger, the legal fees associated with the Starz class action lawsuits, and an arbitration award of $5.8 million and related legal expenses. (3) Development expense in the fiscal year ended March 31, 2018 represents write-downs resulting from the restructuring of the Motion Picture business in connection with the acquisition of Good Universe and new management's decisions around the creative direction on certain development projects which were abandoned in the fiscal year ended March 31, 2018. (4) During the fourth quarter of the fiscal year ended March 31, 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million in fiscal 2019, which are included in direct operating expense in the consolidated statement of operations. Changes in the restructuring and other severance liability were as follows for the years ended March 31, 2019, 2018 and 2017: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Severance liability Beginning balance $ 14.7 $ 22.2 $ 0.6 Accruals 31.5 21.5 26.7 Severance payments (25.0 ) (27.9 ) (10.6 ) Other (1) — (1.1 ) 5.5 Ending balance $ 21.2 $ 14.7 $ 22.2 _______________________ (1) In the year ended March 31, 2018, other represents noncash reductions related to the settlement of certain liabilities relating to employee compensation with equity instruments. In the year ended March 31, 2017, other represents a severance liability acquired in connection with the Starz Merger. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Year Ended March 31, 2019 2018 2017 (Amounts in millions) Segment revenues Motion Picture $ 1,464.4 $ 1,822.1 $ 1,920.6 Television Production 920.9 1,033.2 892.8 Media Networks 1,461.0 1,411.2 426.3 Intersegment eliminations (165.8 ) (137.4 ) (38.2 ) $ 3,680.5 $ 4,129.1 $ 3,201.5 Intersegment revenues Motion Picture $ 10.9 $ 10.7 $ 6.6 Television Production 154.8 126.4 30.7 Media Networks 0.1 0.3 0.9 $ 165.8 $ 137.4 $ 38.2 Gross contribution Motion Picture $ 234.1 $ 292.6 $ 237.8 Television Production 109.6 151.3 107.4 Media Networks 534.0 530.0 175.3 Intersegment eliminations (6.3 ) (5.5 ) (10.4 ) $ 871.4 $ 968.4 $ 510.1 Segment general and administration Motion Picture $ 105.6 $ 113.2 $ 105.3 Television Production 43.5 40.3 32.1 Media Networks 97.7 100.9 45.0 $ 246.8 $ 254.4 $ 182.4 Segment profit Motion Picture $ 128.5 $ 179.4 $ 132.5 Television Production 66.1 111.0 75.3 Media Networks 436.3 429.1 130.3 Intersegment eliminations (6.3 ) (5.5 ) (10.4 ) $ 624.6 $ 714.0 $ 327.7 |
Reconciliation Of Total Segment Profit To The Company's Loss Before Income Taxes | The reconciliation of total segment profit to the Company’s income (loss) before income taxes is as follows: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Company’s total segment profit $ 624.6 $ 714.0 $ 327.7 Corporate general and administrative expenses (104.2 ) (110.3 ) (92.6 ) Adjusted depreciation and amortization (1) (41.1 ) (39.3 ) (22.8 ) Restructuring and other (2) (78.0 ) (59.8 ) (88.7 ) Programming and content charges (3) (35.1 ) — — Adjusted share-based compensation expense (4) (52.1 ) (85.6 ) (77.1 ) Purchase accounting and related adjustments (5) (184.1 ) (170.3 ) (62.8 ) Operating income (loss) 130.0 248.7 (16.3 ) Interest expense (198.9 ) (193.7 ) (115.2 ) Shareholder litigation settlements (114.1 ) — — Interest and other income 12.0 10.4 6.4 Other expense (4.7 ) — — Loss on extinguishment of debt (1.9 ) (35.7 ) (40.4 ) Gain (loss) on investments (87.6 ) 171.8 20.4 Equity interests income (loss) (42.9 ) (52.8 ) 10.7 Income (loss) before income taxes $ (308.1 ) $ 148.7 $ (134.4 ) ___________________ (1) Adjusted depreciation and amortization represents depreciation and amortization as presented on our 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 recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Depreciation and amortization $ 163.4 $ 159.0 $ 63.1 Less: Amount included in purchase accounting and related adjustments (122.3 ) (119.7 ) (40.3 ) Adjusted depreciation and amortization $ 41.1 $ 39.3 $ 22.8 (2) Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 15 ). (3) During the fourth quarter of the fiscal year ended March 31, 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million in fiscal 2019, which are included in direct operating expense in the consolidated statement of operations. (4) The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Total share-based compensation expense $ 68.1 $ 88.5 $ 79.5 Less: Amount included in restructuring and other (i) (16.0 ) (2.9 ) (2.4 ) Adjusted share-based compensation $ 52.1 $ 85.6 $ 77.1 (i) Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. (5) Purchase accounting and related adjustments represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 18.0 $ 44.5 $ 17.5 General and administrative expense 43.8 6.1 5.0 Depreciation and amortization 122.3 119.7 40.3 $ 184.1 $ 170.3 $ 62.8 (6) Shareholder litigation settlements of $114.1 million in the year ended March 31, 2019 includes the following: (i) $54.8 million for the net expense recorded for the settlement of the Fiduciary Litigation (representing the settlement amount of $92.5 million , net of aggregate insurance reimbursement of $37.8 million and (ii) $59.3 million related to the Appraisal Litigation, representing the amount by which the settlement amount of approximately $964 million exceeded the previously accrued (at date of acquisition) dissenting shareholders' liability plus interest through the date agreed in the settlement. See Note 17 . |
Adjusted Depreciation and Amortization | Adjusted depreciation and amortization represents depreciation and amortization as presented on our 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 recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Depreciation and amortization $ 163.4 $ 159.0 $ 63.1 Less: Amount included in purchase accounting and related adjustments (122.3 ) (119.7 ) (40.3 ) Adjusted depreciation and amortization $ 41.1 $ 39.3 $ 22.8 |
Adjusted Share-Based Compensation | The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Total share-based compensation expense $ 68.1 $ 88.5 $ 79.5 Less: Amount included in restructuring and other (i) (16.0 ) (2.9 ) (2.4 ) Adjusted share-based compensation $ 52.1 $ 85.6 $ 77.1 |
Purchase Accounting and Related Adjustments | Year Ended March 31, 2019 2018 2017 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 18.0 $ 44.5 $ 17.5 General and administrative expense 43.8 6.1 5.0 Depreciation and amortization 122.3 119.7 40.3 $ 184.1 $ 170.3 $ 62.8 |
Reconciliation of Segment General and Administration to Consolidated General and Administration | The following table reconciles segment general and administration to the Company’s total consolidated general and administration expense: Year Ended March 31, 2019 2018 2017 (Amounts in millions) General and administration Segment general and administrative expenses $ 246.8 $ 254.4 $ 182.4 Corporate general and administrative expenses 104.2 110.3 92.6 Share-based compensation expense included in general and administrative expense 50.6 83.6 75.4 Purchase accounting and related adjustments 43.8 6.1 5.0 $ 445.4 $ 454.4 $ 355.4 |
Reconciliation of Assets from Segment to Consolidated | The reconciliation of total segment assets to the Company’s total consolidated assets is as follows: March 31, March 31, (Amounts in millions) Assets Motion Picture $ 1,694.5 $ 1,757.4 Television Production 1,394.2 1,400.5 Media Networks 4,850.3 5,166.5 Other unallocated assets (1) 469.9 643.2 $ 8,408.9 $ 8,967.6 _____________________ (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 years ended March 31, 2019 , 2018 and 2017: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Acquisition of investment in films and television programs and program rights Motion Picture $ 388.4 $ 462.0 $ 412.7 Television Production (1) 681.6 706.8 506.6 Media Networks 594.3 483.5 218.6 Intersegment eliminations (194.3 ) (125.9 ) (45.9 ) $ 1,470.0 $ 1,526.4 $ 1,092.0 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Revenue by geographic location, based on the location of the customers, with no other foreign country individually comprising greater than 10% of total revenue, is as follows: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Revenue Canada $ 47.9 $ 48.3 $ 56.0 United States 3,124.6 3,383.0 2,431.9 Other foreign 508.0 697.8 713.6 $ 3,680.5 $ 4,129.1 $ 3,201.5 Long-lived assets by geographic location are as follows: March 31, 2019 March 31, 2018 (Amounts in millions) Long-lived assets (1) Canada $ — $ — United States 1,737.8 1,824.5 Other foreign 93.3 34.6 $ 1,831.1 $ 1,859.1 _____________ (1) Long-lived assets represents total assets less the following: current assets, investments, long-term receivables, intangible assets, goodwill and deferred tax assets. |
Capital Expenditures By Segment | The following table sets forth capital expenditures, as broken down by segment for the years ended March 31, 2019 , 2018 and 2017: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Capital expenditures Motion Picture $ — $ — $ — Television Production 3.2 1.4 1.8 Media Networks 30.0 31.5 10.6 Corporate (1) 10.6 13.0 12.8 $ 43.8 $ 45.9 $ 25.2 _____________________ (1) Represents unallocated capital expenditures primarily related to the Company's corporate headquarters. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Annual Repayment of Contractual Commitments | The following table sets forth our future annual repayment of contractual commitments as of March 31, 2019 : Year Ended March 31, 2020 2021 2022 2023 2024 Thereafter Total (Amounts in millions) Contractual commitments by expected repayment date (off-balance sheet arrangements) Film obligation and production loan commitments (1) $ 648.6 $ 225.4 $ 108.7 $ 32.0 $ 8.8 $ 5.6 $ 1,029.1 Interest payments (2) 154.3 151.6 148.1 144.1 112.8 104.6 815.5 Operating lease commitments 37.2 36.5 35.8 35.5 20.1 52.3 217.4 Other contractual obligations 128.8 44.5 26.2 10.7 0.9 — 211.1 Total future commitments under contractual obligations (3) $ 968.9 $ 458.0 $ 318.8 $ 222.3 $ 142.6 $ 162.5 $ 2,273.1 ____________________________ (1) Film obligation commitments include distribution and marketing commitments, minimum guarantee commitments and program rights commitments. Distribution and marketing commitments represent contractual commitments for future expenditures associated with distribution and marketing of films which we will distribute. The payment dates of these amounts are primarily based on the anticipated release date of the film. Minimum guarantee commitments represent contractual commitments related to the purchase of film rights for pictures to be delivered in the future. Program rights commitments represent contractual commitments under programming license agreements related to films that are not available for exhibition until some future date (see below for further details). Production loan commitments represent amounts committed for future film production and development to be funded through production financing and recorded as a production loan liability when incurred. Future payments under these commitments are based on anticipated delivery or release dates of the related film or contractual due dates of the commitment. The amounts include estimated future interest payments associated with the commitment. (2) Includes cash interest payments on the Company's debt, excluding the interest payments on the revolving credit facility as future amounts are not fixed or determinable due to fluctuating balances and interest rates. (3) Not included in the amounts above are $127.6 million of redeemable noncontrolling interest, as future amounts and timing are subject to a number of uncertainties such that we are unable to make sufficiently reliable estimations of future payments (see Note 11 ). |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Derivative [Line Items] | |
Schedule of Derivative Instruments, Effect on Statements of Operations And Comprehensive Income | The following table presents the effect, net of tax, of the Company's derivatives on the accompanying consolidated statements of operations and comprehensive income (loss) for the years ended March 31, 2019 , 2018 and 2017: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in accumulated other comprehensive income (loss) $ 1.1 $ (0.2 ) $ (3.5 ) Gain (loss) reclassified from accumulated other comprehensive income (loss) into direct operating expense — (1.5 ) 5.0 Interest rate swap agreements Loss recognized in accumulated other comprehensive income (loss) $ (71.3 ) $ — $ — Loss reclassified from accumulated other comprehensive income (loss) into interest expense (7.7 ) — — Derivatives not designated as cash flow hedges: Forward exchange contracts Gain recognized in direct operating expense $ — $ 0.1 $ — Total direct operating expense on consolidated statements of operations $ 2,028.2 $ 2,309.6 $ 1,903.8 Total interest expense on consolidated statements of operations (1) $ 163.6 $ 137.2 $ 99.7 ________________ (1) Represents interest expense before interest on dissenting shareholders' liability. |
Derivative Instruments by Balance Sheet Location | As of March 31, 2019 and March 31, 2018 , the Company had the following amounts recorded in the accompanying consolidated balance sheets related to the Company's use of derivatives: March 31, 2019 Other Current Assets Accounts Payable and Accrued Liabilities Other Non-Current Liabilities (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 1.5 $ 0.6 $ — Interest rate swap agreements — — 63.6 Fair value of derivatives $ 1.5 $ 0.6 $ 63.6 March 31, 2018 Other Current Assets Accounts Payable and Accrued Liabilities (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 0.3 $ 0.6 Fair value of derivatives $ 0.3 (1) $ 0.6 (1) _____________ (1) Includes an immaterial amount of forward foreign exchange contracts not designated as hedging instruments as of March 31, 2018. |
Forward Foreign Exchange Contracts | |
Derivative [Line Items] | |
Schedule of Derivative Instruments Outstanding | As of March 31, 2019 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 12 months from March 31, 2019 ): March 31, 2019 Foreign Currency Foreign Currency Amount US Dollar Amount Weighted Average Exchange Rate Per $1 USD (Amounts in millions) (Amounts in millions) British Pound Sterling £5.0 in exchange for $7.2 £0.69 Canadian Dollar C$20.7 in exchange for $16.2 C$1.28 Australian Dollar A$3.5 in exchange for $2.7 A$1.27 Mexican Peso $108.3 in exchange for $5.6 $19.30 |
Interest Rate Swap | |
Derivative [Line Items] | |
Schedule of Derivative Instruments Outstanding | The major terms of the Company's interest rate swap agreements as of March 31, 2019 are as follows (all related to the Company's LIBOR-based debt, see Note 7 ): Effective Date Notional Amount (in millions) Fixed Rate Paid Maturity Date May 23, 2018 $1,000.0 2.915% March 24, 2025 June 25, 2018 $200.0 2.723% March 23, 2025 July 31, 2018 $300.0 2.885% March 23, 2025 December 24, 2018 $50.0 2.744% March 23, 2025 December 24, 2018 $100.0 2.808% March 23, 2025 December 24, 2018 $50.0 2.728% March 23, 2025 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Additional Financial Information [Abstract] | |
Schedule of Other Assets | The composition of the Company’s other assets is as follows as of March 31, 2019 and March 31, 2018 : March 31, March 31, (Amounts in millions) Other current assets Prepaid expenses and other $ 150.6 $ 34.1 Product inventory 19.9 20.3 Tax credits receivable 96.7 141.4 $ 267.2 $ 195.8 Other non-current assets Prepaid expenses and other (1) $ 109.2 $ 23.8 Accounts receivable (1) 176.1 325.2 Tax credits receivable 150.8 109.6 $ 436.1 $ 458.6 _____________________ (1) Unamortized discounts on contract assets included in prepaid expenses and other were $3.9 million at March 31, 2019, and unamortized discounts on long-term, non-interest bearing receivables were $9.7 million and $18.0 million at March 31, 2019 and 2018, respectively. |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the changes in the components of accumulated other comprehensive loss, net of tax: Foreign currency translation adjustments Net unrealized gain (loss) on available-for-sale securities Net unrealized gain (loss) on cash flow hedges Total (Amounts in millions) March 31, 2016 $ (11.3 ) $ (35.5 ) $ 3.7 $ (43.1 ) Reclassification adjustment for gain on available-for-sale securities realized in net income — (17.8 ) — (17.8 ) Other comprehensive income (loss) (8.1 ) 56.4 (3.4 ) 44.9 March 31, 2017 (19.4 ) 3.1 0.3 (16.0 ) Other comprehensive income (loss) 7.0 (0.5 ) (0.2 ) 6.3 March 31, 2018 (12.4 ) 2.6 0.1 (9.7 ) Cumulative effect of accounting changes — (2.6 ) — (2.6 ) Other comprehensive loss (5.8 ) — (62.2 ) (68.0 ) March 31, 2019 $ (18.2 ) $ — $ (62.1 ) $ (80.3 ) |
Supplemental Schedule of Non-Cash Investing and Financing Activities | The supplemental schedule of non-cash investing and financing activities is presented below: Year Ended March 31, 2019 2018 2017 (Amounts in millions) Non-cash investing activities: Issuance of common shares related to business acquisitions $ 83.7 $ — $ 1,327.7 Accrued purchase consideration for dissenting shareholders (see Note 17) $ — $ — $ 797.3 Issuance of Starz share-based payment replacement awards $ — $ — $ 186.5 Non-cash financing activities: Accrued dividends (see Note 13) $ — $ 19.1 $ — Conversions of convertible senior subordinated notes $ — $ — $ 41.9 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Certain quarterly information is presented below: First Quarter Second Quarter Third Quarter Fourth Quarter (Amounts in millions, except per share amounts) 2019 Revenues $ 932.7 $ 901.0 $ 933.2 $ 913.7 Operating income (loss) (1) $ 38.2 $ 39.1 $ 86.8 $ (34.0 ) Net income (loss) (1)(2) $ (11.4 ) $ (149.3 ) $ 20.1 $ (159.1 ) Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (7.9 ) $ (144.1 ) $ 22.9 $ (155.2 ) Per share information attributable to Lions Gate Entertainment Corp. shareholders: Basic net income (loss) per common share $ (0.04 ) $ (0.67 ) $ 0.11 $ (0.72 ) Diluted net income (loss) per common share $ (0.04 ) $ (0.67 ) $ 0.10 $ (0.72 ) First Quarter Second Quarter Third Quarter Fourth Quarter (Amounts in millions, except per share amounts) 2018 Revenues $ 1,005.3 $ 940.8 $ 1,142.7 $ 1,040.2 Operating income (loss) (3) $ 89.7 $ 30.4 $ 80.2 $ 48.4 Net income (loss) (3)(4) $ 174.5 $ 12.9 $ 191.1 $ 89.6 Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ 173.8 $ 15.5 $ 193.0 $ 91.3 Per share information attributable to Lions Gate Entertainment Corp. shareholders: Basic net income (loss) per common share $ 0.84 $ 0.07 $ 0.92 $ 0.43 Diluted net income (loss) per common share $ 0.80 $ 0.07 $ 0.87 $ 0.41 ________________________________________ (1) During fiscal 2019, operating income and net income included the following items: • Restructuring and Other. The first, second, third and fourth quarter of fiscal 2019 included restructuring and other items of $10.5 million , $15.0 million , $16.6 million and $35.9 million , respectively (after tax $7.8 million , $11.5 million , $12.6 million , and $27.3 million , respectively) (see Note 15 ). • Programming and Content Charges. During the fourth quarter of fiscal 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million (after tax $26.7 million ) in connection with recent management changes, and changes to the Company's programming strategy, which are included in direct operating expense in the consolidated statement of operations in the fourth quarter of fiscal 2019 (see Note 15 ). (2) During fiscal 2019, net income also included the following items: • Shareholder Litigation Settlements . The second quarter of fiscal 2019 included shareholder litigation settlements of $114.1 million (after tax $104.7 million ) (see Note 17 ). • Loss on Investments. The first, second, third and fourth quarter of fiscal 2019 included a loss on investments of $0.9 million , $36.1 million , $6.2 million and $44.4 million , respectively (after tax $0.7 million , $32.4 million , $4.7 million and $33.7 million , respectively) (see Note 5 ). • Loss on Extinguishment of Debt. The fourth quarter of fiscal 2019 included a loss on extinguishment of debt of $1.9 million (after tax $1.4 million ) (see Note 7 ). • Deferred Tax Valuation Allowance. The fourth quarter of fiscal 2019 included a charge of $53.7 million from an increase in the valuation allowance for certain of the Company's deferred tax assets (see Note 14 ). (3) During fiscal 2018, operating income and net income included the following items: • Restructuring and Other. The first, second, third and fourth quarter of fiscal 2018 included restructuring and other items of $10.9 million , $3.5 million , $21.4 million , and $24.0 million , respectively (after tax $8.9 million , $2.5 million , $14.5 million , and $15.7 million , respectively) (see Note 15 ). (4) During fiscal 2018, net income also included the following items: • Loss on Extinguishment of Debt. The first, second, third and fourth quarter of fiscal 2018 included a loss on extinguishment of debt of $11.6 million , $6.4 million , $6.2 million and $11.6 million , respectively (after tax $8.5 million , $4.7 million , $4.6 million and $7.8 million , respectively) (see Note 7 ). • Gain (Loss) on Investments. The first and third quarter of fiscal 2018 included a gain on investments of $201.0 million and a loss on investments of $29.2 million , respectively (after tax gain of $127.0 million and loss of $20.1 million , respectively) (see Note 5 ). • Impact of Corporate Tax Rate Change on Deferred Tax Liabilities. The third quarter of fiscal 2018 included a deferred tax benefit of $165.0 million resulting from the impact of the change in the U.S. federal corporate income tax rate from 35% to 21% under the Tax Cuts and Jobs Act on the Company's beginning net deferred tax liabilities (see Note 14 ). • Tax Benefit from Internal Capital Restructuring. The fourth quarter of fiscal 2018 included a net tax benefit of $94.1 million primarily from the internal capital restructuring in connection with our third party debt refinancing (see Note 7 to our consolidated financial statements), net of the charge from an increase in its valuation allowance associated with certain deferred tax assets (see Note 14 ). |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Equity Method Investees | |
Related Party Transaction [Line Items] | |
Transactions with Equity Method Investees | In the ordinary course of business, we are involved in related party transactions with equity method investees. These related party transactions primarily relate to the licensing and distribution of the Company's films and television programs, for which the impact on the Company's consolidated balance sheets and consolidated statements of operations is as follows (see Note 1 and Note 5 ). In addition, during the year ended March 31, 2019, the Company made loans of $20.7 million to certain of its equity method investees, $7.3 million of which are included in other assets, noncurrent in the Company's consolidated balance sheet (net of equity interests losses applied against such loans), and included in the table below. March 31, 2019 2018 (Amounts in millions) Consolidated Balance Sheets Accounts receivable $ 2.2 $ 6.0 Other assets, noncurrent 7.3 0.2 Total due from related parties $ 9.5 $ 6.2 Participations and residuals, current 9.5 6.5 Participations and residuals, noncurrent 8.2 6.0 Deferred revenue, current — 0.2 Total due to related parties $ 17.7 $ 12.7 Year Ended March 31, 2019 2018 2017 (Amounts in millions) Consolidated Statements of Operations Revenues $ 4.7 $ 8.9 $ 88.8 Direct operating expense $ 32.2 $ 22.0 $ 10.5 Distribution and marketing expense $ 3.0 $ 3.5 $ 0.8 General and administrative expense (1) $ 0.7 $ (3.7 ) $ (0.7 ) Interest and other income $ 0.4 $ — $ — __________________________________ (1) Amounts primarily represent reimbursement for certain shared services for equity method investees. |
Description of Business, Basi_4
Description of Business, Basis of Presentation and Significant Accounting Policies (Investment in Films and Television Programs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Capitalized interest for films and television programs produced | $ 10.8 | $ 7.9 | $ 8.7 |
Ultimate revenue, estimates used, maximum term, motion picture | 10 years | ||
Ultimate revenue, estimates used, maximum term, television series | 10 years | ||
Ultimate revenue, estimates used, term, television series still in production | 5 years | ||
Ultimate revenue, estimates used, maximum term, acquired libraries | 20 years | ||
Projects in development, potential trigger for write-off of development costs, time period from date of initial investment | 3 years | ||
Film and television program impairment charges | $ 35.2 | $ 36.3 |
Description of Business, Basi_5
Description of Business, Basis of Presentation and Significant Accounting Policies (Useful Lives) (Details) | 12 Months Ended |
Mar. 31, 2019 | |
Distribution Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 1 year |
Distribution Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 4 years |
Computer Equipment and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 2 years |
Computer Equipment and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 5 years |
Furniture and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 2 years |
Furniture and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 10 years |
Building | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 26 years |
Description of Business, Basi_6
Description of Business, Basis of Presentation and Significant Accounting Policies (Basic Net Income (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | |||||||||||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (155.2) | $ 22.9 | $ (144.1) | $ (7.9) | $ 91.3 | $ 193 | $ 15.5 | $ 173.8 | $ (284.2) | $ 473.6 | $ 14.8 |
Denominator: | |||||||||||
Weighted average common shares outstanding (in shares) | 213.7 | 208.4 | 165 | ||||||||
Basic net income (loss) per common share (in usd per share) | $ (0.72) | $ 0.11 | $ (0.67) | $ (0.04) | $ 0.43 | $ 0.92 | $ 0.07 | $ 0.84 | $ (1.33) | $ 2.27 | $ 0.09 |
Description of Business, Basi_7
Description of Business, Basis of Presentation and Significant Accounting Policies (Diluted Net Income (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | |||||||||||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (155.2) | $ 22.9 | $ (144.1) | $ (7.9) | $ 91.3 | $ 193 | $ 15.5 | $ 173.8 | $ (284.2) | $ 473.6 | $ 14.8 |
Interest on convertible notes, net of tax | 0 | 0.5 | 0 | ||||||||
Numerator for diluted net income (loss) per common share | $ (284.2) | $ 474.1 | $ 14.8 | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding (in shares) | 213.7 | 208.4 | 165 | ||||||||
Conversion of notes (in shares) | 0 | 2.1 | 0 | ||||||||
Share purchase options (in shares) | 0 | 7.5 | 3.5 | ||||||||
Restricted share units and restricted stock (in shares) | 0 | 0.7 | 0.3 | ||||||||
Contingently issuable shares (in shares) | 0 | 1.7 | 3.4 | ||||||||
Adjusted weighted average common shares outstanding (in shares) | 213.7 | 220.4 | 172.2 | ||||||||
Diluted net income (loss) per common share (in usd per share) | $ (0.72) | $ 0.10 | $ (0.67) | $ (0.04) | $ 0.41 | $ 0.87 | $ 0.07 | $ 0.80 | $ (1.33) | $ 2.15 | $ 0.09 |
Description of Business, Basi_8
Description of Business, Basis of Presentation and Significant Accounting Policies (Anti-dilutive Shares Issuable) (Details) - shares shares in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Anti-dilutive shares issuable [Line Items] | |||
Antidilutive securities excluded from the calculation of diluted earnings per share due to net loss, amount | 7.1 | ||
Anti-dilutive shares issuable | 23.7 | 12.9 | 19.1 |
Conversion of Notes | |||
Anti-dilutive shares issuable [Line Items] | |||
Anti-dilutive shares issuable | 0 | 0 | 5.2 |
Share Purchase Options | |||
Anti-dilutive shares issuable [Line Items] | |||
Anti-dilutive shares issuable | 21.3 | 11.5 | 12.1 |
Restricted Share Units (RSUs) | |||
Anti-dilutive shares issuable [Line Items] | |||
Anti-dilutive shares issuable | 1 | 0.2 | 0.6 |
Other Issuable Shares | |||
Anti-dilutive shares issuable [Line Items] | |||
Anti-dilutive shares issuable | 1.4 | 1.2 | 1.2 |
Description of Business, Basi_9
Description of Business, Basis of Presentation and Significant Accounting Policies (Other) (Details) - USD ($) $ in Millions | Apr. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2018 | Apr. 01, 2017 | Mar. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment for new accounting pronouncement | $ 18.7 | $ 60.8 | |||||
Decrease in cash provided by operating activities | $ 427.5 | $ 386.4 | $ 558.5 | ||||
Increase in beginning cash and cash equivalents to include restricted cash | 184.3 | 378.1 | 324.7 | $ 60.6 | |||
Restricted cash | 0 | 0 | |||||
Advertising expenses | $ 640.1 | 654.9 | 588.8 | ||||
Timing of payment | 60 days | ||||||
Revenue from Contracts with Customers (Topic 606) | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment for new accounting pronouncement | 18.7 | ||||||
Liability for sales returns and certain sales incentive allowances | 86.9 | ||||||
Restricted Cash | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Decrease in cash provided by operating activities | $ 2.8 | 0.1 | |||||
Increase in beginning cash and cash equivalents to include restricted cash | $ 2.8 | $ 2.9 | |||||
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment for new accounting pronouncement | 21.3 | $ 60.8 | |||||
Retained Earnings | Recognition and Measurement of Financial Instruments | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect adjustment for new accounting pronouncement | $ 2.6 | ||||||
Minimum | Pro Forma | Accounting for Leases | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Quantification of new accounting pronouncements | $ 180 | ||||||
Maximum | Pro Forma | Accounting for Leases | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Quantification of new accounting pronouncements | $ 200 |
Description of Business, Bas_10
Description of Business, Basis of Presentation and Significant Accounting Policies (Schedule of Impact of Adoption on Opening Financial Statement Balances) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Current assets | $ 1,394.4 | $ 1,947.5 | $ 1,773.1 |
Total assets | 8,408.9 | 9,111.2 | 8,967.6 |
Current liabilities | $ 1,652.4 | 2,516.5 | 2,412.4 |
Total liabilities | 5,833.8 | $ 5,708.9 | |
Impact of Adoption | Revenue from Contracts with Customers (Topic 606) | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Current assets | 174.4 | ||
Total assets | 143.6 | ||
Current liabilities | 104.1 | ||
Total liabilities | $ 124.9 |
Merger and Acquisitions (Narrat
Merger and Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | May 29, 2018 | Oct. 11, 2017 | Dec. 08, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 2,833.5 | $ 2,740.8 | $ 2,700.5 | ||||
Interest rate, percentage spread on federal reserve discount rate | 5.00% | ||||||
Principal amount of debt outstanding | $ 2,927.5 | $ 2,520 | |||||
Class A Voting Common Shares | |||||||
Business Acquisition [Line Items] | |||||||
Common shares, no par value | $ 0 | $ 0 | |||||
Class B Non-Voting Common Shares | |||||||
Business Acquisition [Line Items] | |||||||
Common shares, no par value | $ 0 | $ 0 | |||||
3 Arts Entertainment | |||||||
Business Acquisition [Line Items] | |||||||
Equity interests acquired | 51.00% | ||||||
Aggregate purchase price | $ 166.6 | ||||||
Percentage of cash consideration | 50.00% | ||||||
Period for issuance of equity interests after closing date | 1 year | ||||||
Period for weighted average closing price | 20 days | ||||||
Deferred Compensation Plan Assets | $ 38.3 | ||||||
Contingency period | 5 years | ||||||
Noncontrolling interest, fair value | $ 15.8 | ||||||
Intangible assets | 47 | ||||||
Goodwill | 92.7 | ||||||
Business acquisition, transaction costs | $ 1.3 | ||||||
3 Arts Entertainment | Class B Non-Voting Common Shares | |||||||
Business Acquisition [Line Items] | |||||||
Percentage at closing | 32.50% | ||||||
Percentage to be paid one-year from closing | 17.50% | ||||||
Starz | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 2,071 | ||||||
Goodwill | 2,177 | ||||||
Purchase price, cash consideration | 1,176.1 | ||||||
Starz | Acquisition-related Costs | |||||||
Business Acquisition [Line Items] | |||||||
Merger-related transaction costs | $ 70.9 | ||||||
Starz | Starz Series A Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price, cash consideration | 1,123.3 | ||||||
Starz | Starz Series B Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price, cash consideration | $ 52.8 | ||||||
Starz | Class A Voting Common Shares | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Conversion of stock, shares issued (in shares) | 0.5 | ||||||
Starz | Class B Non-Voting Common Shares | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Conversion of stock, shares issued (in shares) | 0.5 | ||||||
Good Universe | |||||||
Business Acquisition [Line Items] | |||||||
Period for issuance of equity interests after closing date | 1 year | ||||||
Goodwill | $ 29 | ||||||
Purchase price, cash consideration | 20.4 | ||||||
Purchase price, cash consideration to be paid after one-year of the closing date | 1.4 | ||||||
Purchase price, loans assumed | $ 23.6 | ||||||
Repayments of corporate debt and production loans | $ 14.9 | ||||||
Good Universe | Class B Non-Voting Common Shares | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price, common shares issued or issuable (in shares) | 119,751 | ||||||
Customer relationships | 3 Arts Entertainment | |||||||
Business Acquisition [Line Items] | |||||||
Weighted-average useful life | 12 years | ||||||
Customer relationships | Starz | |||||||
Business Acquisition [Line Items] | |||||||
Weighted-average useful life | 17 years | ||||||
Starz Dissenting Shareholders | Starz | |||||||
Business Acquisition [Line Items] | |||||||
Outstanding equity interests (in shares) | 22,500,000 | ||||||
Dissenting shareholders' liability | 869.3 | ||||||
Accrued merger consideration payable | [1] | $ 797.3 | |||||
Revolving Credit Facility | |||||||
Business Acquisition [Line Items] | |||||||
Principal amount of debt outstanding | $ 0 | $ 0 | |||||
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 | ||||||
3 Arts Entertainment | |||||||
Business Acquisition [Line Items] | |||||||
Redeemable noncontrolling interest, ownership percentage held by noncontrolling interest holders | 49.00% | ||||||
[1] | In connection with the Starz Merger, Starz received demands for appraisal from purported holders of approximately 22.5 million shares of Starz Series A common stock, and the Company recorded a dissenting shareholders' liability at the time of acquisition for the value of the original merger consideration attributable to the dissenting shareholders. As of March 31, 2018, the Company had not paid the merger consideration for the shares that had demanded appraisal but had recorded a liability of $869.3 million that was included in current dissenting shareholders' liability on the consolidated balance sheet for the estimated value of the merger consideration that would have been payable for such shares, plus interest accrued at the Federal Reserve discount rate plus 5%, compounded quarterly. In November 2018 a settlement agreement was reached and the dissenting shareholders' liability was paid. See Note 17 for further information. |
Merger and Acquisitions (Compon
Merger and Acquisitions (Components of Purchase Consideration) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 08, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | |||||
Gain recognized on Starz available-for-sale securities | $ 0 | $ 0 | $ 20.4 | ||
Starz | |||||
Business Acquisition [Line Items] | |||||
Cost basis | $ 158.9 | ||||
Gain recognized on Starz available-for-sale securities | $ 20.4 | ||||
Market value, as of December 8, 2016, of Starz Series A and Series B common stock already owned by Lionsgate | [1] | 179.3 | |||
Cash consideration paid to Starz stockholders | 1,176.1 | ||||
Fair value of Lionsgate voting and non-voting shares issued to Starz's stockholders | 1,327.7 | ||||
Replacement of Starz share-based payment awards | [2] | 186.5 | |||
Total purchase consideration | 3,666.9 | ||||
Replacement of Starz share-based payment awards, unvested | 43.3 | ||||
Starz Series A Common Stock | Starz | |||||
Business Acquisition [Line Items] | |||||
Cash consideration paid to Starz stockholders | $ 1,123.3 | ||||
Cash to be paid per outstanding share (in usd per share) | $ 18 | ||||
Starz Series A Common Stock | Starz | Class B Non-Voting Common Shares | |||||
Business Acquisition [Line Items] | |||||
Fair value of Lionsgate voting and non-voting shares issued to Starz's stockholders | $ 1,088 | ||||
Stock conversion ratio | 0.6784 | ||||
Starz Series B Common Stock | Starz | |||||
Business Acquisition [Line Items] | |||||
Cash consideration paid to Starz stockholders | $ 52.8 | ||||
Cash to be paid per outstanding share (in usd per share) | $ 7.26 | ||||
Starz Series B Common Stock | Starz | Class B Non-Voting Common Shares | |||||
Business Acquisition [Line Items] | |||||
Fair value of Lionsgate voting and non-voting shares issued to Starz's stockholders | $ 118.1 | ||||
Stock conversion ratio | 0.6321 | ||||
Starz Series B Common Stock | Starz | Class A Voting Common Shares | |||||
Business Acquisition [Line Items] | |||||
Fair value of Lionsgate voting and non-voting shares issued to Starz's stockholders | $ 121.6 | ||||
Stock conversion ratio | 0.6321 | ||||
Starz Dissenting Shareholders | Starz | |||||
Business Acquisition [Line Items] | |||||
Dissenting shareholders' liability | [3] | $ 797.3 | |||
[1] | The difference between the fair value ($179.3 million) and the original cost ($158.9 million) of the available-for-sale investment in equity securities of Starz held by Lionsgate on the date of the Starz Merger (December 8, 2016), amounting to $20.4 million, was reflected in the gain (loss) on investments line item in the consolidated statement of operations for the fiscal year ended March 31, 2017. | ||||
[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 is being recognized as share-based compensation expense over the remaining post-combination service period. The estimated aggregate fair value of the Lions Gate replacement awards recorded as part of the purchase consideration was $186.5 million, and the estimated remaining aggregate fair value totaling $43.3 million is being recognized 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 rate0.39% - 1.83%Expected option lives (years)0.01 - 5.50 yearsExpected volatility35%Expected dividend yield0%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 was zero since the combined company had suspended the quarterly dividend. | ||||
[3] | In connection with the Starz Merger, Starz received demands for appraisal from purported holders of approximately 22.5 million shares of Starz Series A common stock, and the Company recorded a dissenting shareholders' liability at the time of acquisition for the value of the original merger consideration attributable to the dissenting shareholders. As of March 31, 2018, the Company had not paid the merger consideration for the shares that had demanded appraisal but had recorded a liability of $869.3 million that was included in current dissenting shareholders' liability on the consolidated balance sheet for the estimated value of the merger consideration that would have been payable for such shares, plus interest accrued at the Federal Reserve discount rate plus 5%, compounded quarterly. In November 2018 a settlement agreement was reached and the dissenting shareholders' liability was paid. See Note 17 for further information. |
Merger and Acquisitions (Valuat
Merger and Acquisitions (Valuation Model for Lions Gate Replacement Awards) (Details) - Stock Options | Dec. 08, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Lions Gate Replacement Awards | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Expected volatility | 35.00% | ||||
Expected dividend yield | 0.00% | ||||
Minimum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Expected dividend yield | [1] | 0.00% | 0.00% | 0.00% | |
Expected option lives (years) | [2] | 1 year | 4 years | 4 years | |
Minimum | Lions Gate Replacement Awards | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Risk-free interest rate | 0.39% | ||||
Expected option lives (years) | 4 days | ||||
Maximum | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Expected dividend yield | [1] | 1.70% | 1.50% | 1.80% | |
Expected option lives (years) | [2] | 7 years | 6 years | 10 years | |
Maximum | Lions Gate Replacement Awards | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Risk-free interest rate | 1.83% | ||||
Expected option lives (years) | 5 years 6 months | ||||
[1] | The expected dividend yield is estimated by dividing the expected annual dividend by the market price of the Company's shares at the date of grant. | ||||
[2] | The expected term of options granted represents the period of time that options granted are expected to be outstanding. |
Merger and Acquisitions (Purcha
Merger and Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 08, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,833.5 | $ 2,740.8 | $ 2,700.5 | |
Starz | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 73.5 | |||
Accounts receivable | 254.9 | |||
Investment in films and television programs and program rights | 851.9 | |||
Property and equipment | 121.4 | |||
Investments | 12.1 | |||
Intangible assets | 2,071 | |||
Other assets | 139.9 | |||
Accounts payable and accrued liabilities | (143.1) | |||
Corporate debt and capital lease obligations | (1,013.1) | |||
Deferred tax liabilities | (713.6) | |||
Other liabilities | (165) | |||
Fair value of net assets acquired | 1,489.9 | |||
Goodwill | 2,177 | |||
Total purchase consideration | $ 3,666.9 |
Merger and Acquisitions (Pro Fo
Merger and Acquisitions (Pro Forma Statement of Operations Information) (Details) - Starz $ / shares in Units, $ in Millions | 12 Months Ended |
Mar. 31, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenues | $ | $ 4,323.7 |
Net income attributable to Lions Gate Entertainment Corp. shareholders | $ | $ 148.4 |
Basic Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders (in usd per share) | $ / shares | $ 0.74 |
Diluted Net Income Per Common Share attributable to Lions Gate Entertainment Corp. shareholders (in usd per share) | $ / shares | $ 0.71 |
Investment In Films and Telev_3
Investment In Films and Television Programs and Program Rights (Schedule of Investment In Films And Television Programs) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Intersegment eliminations | $ (40.1) | $ (17) |
Investment in films and television programs and program rights, net | 1,967.7 | 1,945.2 |
Less current portion of program rights | (295.7) | (253.2) |
Non-current portion | 1,672 | 1,692 |
Motion Picture | Theatrical And Non-Theatrical Films | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 376.7 | 410.5 |
Acquired libraries, net of accumulated amortization | 1.8 | 2.1 |
Completed and not released | 80.6 | 55 |
In progress | 250.4 | 347.2 |
In development | 45 | 24.6 |
Total investment in film and television programs | 754.5 | 839.4 |
Television Production | Direct-to-Television Programs | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 186.1 | 238.9 |
In progress | 295.6 | 186.6 |
In development | 17.6 | 4.8 |
Total investment in film and television programs | 499.3 | 430.3 |
Media Networks | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 591 | 616.9 |
In progress | 106.8 | 45.6 |
In development | 56.2 | 30 |
Investment in films and television programs and program rights, net | $ 754 | $ 692.5 |
Investment In Films and Telev_4
Investment In Films and Television Programs and Program Rights (Narrative) (Details) | 12 Months Ended |
Mar. 31, 2019 | |
Investment In Films And Television Programs and Program Rights [Abstract] | |
Percentage of unamortized film costs, one year | 36.50% |
Percentage of unamortized film costs, three years | 82.90% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Plant, property and equipment, depreciable, gross | $ 295.1 | $ 248.8 | |
Less accumulated depreciation and amortization | 141 | 88.3 | |
Property and equipment, depreciable, net | 154.1 | 160.5 | |
Property and equipment, net | 155.3 | 161.7 | |
Depreciation expense | 50.8 | 48.8 | $ 24.4 |
Distribution Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Plant, property and equipment, depreciable, gross | 29.1 | 30.4 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Plant, property and equipment, depreciable, gross | 50.4 | 50.4 | |
Less accumulated depreciation and amortization | 3.5 | 2.6 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Plant, property and equipment, depreciable, gross | 43.2 | 29.7 | |
Property and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Plant, property and equipment, depreciable, gross | 25.6 | 21.1 | |
Computer Equipment and Software | |||
Property, Plant and Equipment [Line Items] | |||
Plant, property and equipment, depreciable, gross | 146.8 | 117.2 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1.2 | 1.2 | |
Distribution Equipment Held Under Capital Lease | |||
Property, Plant and Equipment [Line Items] | |||
Plant, property and equipment, depreciable, gross | 9.5 | 16.8 | |
Less accumulated depreciation and amortization | $ 6.2 | $ 7.1 |
Investments (Investments by Cat
Investments (Investments by Category) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Equity Method Investments, and Investments in Debt and Equity Securities [Abstract] | ||
Investments in equity method investees | $ 24.5 | $ 127 |
Other investments | 1.7 | 37.9 |
Investments | $ 26.2 | $ 164.9 |
Investments Equity Interests In
Investments Equity Interests Income (Loss) (Details) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||||
May 11, 2017 | Mar. 15, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity interests income (loss) | $ (42.9) | $ (52.8) | $ 10.7 | |||||
EPIX | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity interests income (loss) | $ 4 | 0 | [1] | 4 | [1] | 31 | [1] | |
Pop | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity interests income (loss) | $ (8.4) | (8.4) | [2] | (9) | [2] | (6.9) | [2] | |
Other Equity Method Investments | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity interests income (loss) | $ (34.5) | $ (47.8) | $ (13.4) | |||||
[1] | The Company's equity interest in EPIX was sold in May 2017 (see further discussion under "Gain (Loss) on Investments" section below). | |||||||
[2] | The Company's equity interest in Pop was sold in March 2019 (see further discussion under "Pop" section below). |
Investments (Equity Method Inve
Investments (Equity Method Investments Narrative) (Details) - USD ($) $ in Millions | Mar. 15, 2019 | May 31, 2017 | Mar. 15, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from the sale of equity method investee, net of transaction costs | $ 48 | $ 393.7 | $ 0 | |||
Gain (loss) on sale of equity method investments | (44.6) | $ 201 | $ 0 | |||
Pop | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | ||
Redeemable Preferred Stock | Pop | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Rate of dividend on preferred stock | 10.00% | |||||
Disposed by sale | EPIX | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest sold | 31.15% | |||||
Gain (loss) on sale of equity method investments | $ 201 | |||||
Disposed by sale | Pop | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest sold | 50.00% | |||||
Proceeds from the sale of equity method investee, net of transaction costs | $ 48 | |||||
Gain (loss) on sale of equity method investments | $ (44.6) | |||||
Minimum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 11.00% | |||||
Maximum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 49.00% |
Investments (Summarized Balance
Investments (Summarized Balance Sheet) (Details) - Other Equity Method Investments - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 189.8 | $ 232.7 |
Non-current assets | 55.7 | 130 |
Current liabilities | 167.8 | 201.5 |
Non-current liabilities | $ 46.7 | $ 45 |
Investments (Summarized Stateme
Investments (Summarized Statement Of Operations) (Details) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||||||
May 11, 2017 | Mar. 15, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||||
Reconciliation of net income reported by investee to equity interest income: | |||||||||
Total equity interest income recorded | $ (42.9) | $ (52.8) | $ 10.7 | ||||||
Pop | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenues | $ 96.9 | 110.9 | 95 | ||||||
Expenses: | |||||||||
Cost of services | 55 | 66.2 | 52.7 | ||||||
Selling, marketing, and general and administration | 49.9 | 54.1 | 47.6 | ||||||
Depreciation and amortization | 7.4 | 8.1 | 7.9 | ||||||
Operating income (loss) | (15.4) | (17.5) | (13.2) | ||||||
Interest expense, net | 2.2 | 1 | 0.6 | ||||||
Accretion of redeemable preferred stock units | 89.4 | 79.1 | 67.8 | [1] | |||||
Total interest expense, net | 91.6 | 80.1 | 68.4 | ||||||
Reconciliation of net income reported by investee to equity interest income: | |||||||||
Net income (loss) | $ (107) | $ (97.6) | $ (81.6) | ||||||
Ownership interest in investee | 50.00% | 50.00% | 50.00% | ||||||
The Company's share of net income | $ (53.5) | $ (48.8) | $ (40.8) | ||||||
Accretion of dividend and interest income of redeemable preferred stock units | [1] | 44.7 | 39.5 | 33.9 | |||||
Eliminations of the Company's share of profits on licensing sales to investee | (0.2) | (0.8) | (0.6) | ||||||
Realization of the Company's share of profits on licensing sales to investee | 0.6 | 1.1 | 0.6 | ||||||
Total equity interest income recorded | $ (8.4) | (8.4) | [2] | (9) | [2] | (6.9) | [2] | ||
EPIX | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenues | $ 44.8 | 400.1 | |||||||
Expenses: | |||||||||
Operating expenses | 32.3 | 259.8 | |||||||
Selling, marketing, and general and administration | 2.4 | 23.3 | |||||||
Operating income (loss) | 10.1 | 117 | |||||||
Interest and other expense | 0 | (0.3) | |||||||
Reconciliation of net income reported by investee to equity interest income: | |||||||||
Net income (loss) | $ 10.1 | $ 116.7 | |||||||
Ownership interest in investee | 31.15% | 31.15% | |||||||
The Company's share of net income | $ 3.1 | $ 36.4 | |||||||
Eliminations of the Company's share of profits on licensing sales to investee | [3] | (0.1) | (12.4) | ||||||
Realization of the Company's share of profits on licensing sales to investee | [4] | 1 | 7 | ||||||
Total equity interest income recorded | $ 4 | 0 | [5] | 4 | [5] | 31 | [5] | ||
Other Equity Method Investments | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenues | 107.5 | 178.8 | 30.1 | ||||||
Expenses: | |||||||||
Gross profit (loss) | 36.9 | 42.6 | 9.1 | ||||||
Reconciliation of net income reported by investee to equity interest income: | |||||||||
Net income (loss) | (102.6) | (117.7) | (50.8) | ||||||
Total equity interest income recorded | $ (34.5) | $ (47.8) | $ (13.4) | ||||||
[1] | Accretion of mandatorily redeemable preferred stock units represents Pop's 10% dividend and the amortization of discount on its mandatorily redeemable preferred stock units held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest income (loss). | ||||||||
[2] | The Company's equity interest in Pop was sold in March 2019 (see further discussion under "Pop" section below). | ||||||||
[3] | 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. | ||||||||
[4] | 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. | ||||||||
[5] | The Company's equity interest in EPIX was sold in May 2017 (see further discussion under "Gain (Loss) on Investments" section below). |
Investments (Other Investments)
Investments (Other Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Equity Method Investments, and Investments in Debt and Equity Securities [Abstract] | |||
Investments in equity securities measured at fair value, amount | $ 1.2 | $ 7.3 | |
Unrealized losses on equity securities held at reporting date | 6.2 | 0 | $ 0 |
Equity securities without readily determinable fair value, amount | $ 0.5 | $ 30.6 |
Investments (Gain (Loss) on Inv
Investments (Gain (Loss) on Investments) (Details) - USD ($) $ in Millions | Mar. 15, 2019 | May 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |||||
Impairments of investments | $ (36.8) | $ (29.2) | $ 0 | ||
Unrealized losses on equity securities held at reporting date | (6.2) | 0 | 0 | ||
Gain (loss) on sale of equity method investees | (44.6) | 201 | 0 | ||
Gain on Starz investment | 0 | 0 | 20.4 | ||
Gain (loss) on investments | (87.6) | 171.8 | $ 20.4 | ||
Equity Securities without readily determinable fair value, impairments | 34.2 | ||||
Disposed by sale | Pop | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest sold | 50.00% | ||||
Gain (loss) on sale of equity method investees | $ (44.6) | ||||
Disposed by sale | EPIX | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest sold | 31.15% | ||||
Gain (loss) on sale of equity method investees | $ 201 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 112.6 | $ 109 | $ 35.7 |
Estimated amortization expense, year ended March 31, 2020 | 113.3 | ||
Estimated amortization expense, year ended March 31, 2021 | 113.3 | ||
Estimated amortization expense, year ended March 31, 2022 | 113.3 | ||
Estimated amortization expense, year ended March 31, 2023 | 113.3 | ||
Estimated amortization expense, year ended March 31, 2024 | $ 112.7 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 2,740.8 | $ 2,700.5 | |
Business acquisitions | [1] | 92 | 29 |
Measurement period adjustments | [2] | 0.7 | 11.3 |
Balance, end of period | 2,833.5 | 2,740.8 | |
Motion Picture | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 393.7 | 361.9 | |
Business acquisitions | [1] | 0 | 29 |
Measurement period adjustments | [2] | 0 | 2.8 |
Balance, end of period | 393.7 | 393.7 | |
Television Production | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 309.2 | 309.2 | |
Business acquisitions | [1] | 92 | 0 |
Measurement period adjustments | [2] | 0.7 | 0 |
Balance, end of period | 401.9 | 309.2 | |
Media Networks | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 2,037.9 | 2,029.4 | |
Business acquisitions | [1] | 0 | 0 |
Measurement period adjustments | [2] | 0 | 8.5 |
Balance, end of period | $ 2,037.9 | $ 2,037.9 | |
[1] | In fiscal 2019 and 2018, represents the goodwill resulting from the acquisitions of 3 Arts Entertainment and Good Universe, respectively (see Note 2). | ||
[2] | In fiscal 2019, represents measurement period adjustments resulting from the acquisition of 3 Arts Entertainment (see Note 2), consisting of a decrease to the fair value of finite-lived intangible assets and a corresponding increase to goodwill. In fiscal 2018, represents measurement period adjustments related to the Starz Merger. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Finite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 1,879.5 | $ 1,832.5 | |
Accumulated Amortization | 257.9 | 144.8 | |
Net Carrying Amount | 1,621.6 | 1,687.7 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | [1] | 1,852 | 1,821 |
Accumulated Amortization | [1] | 250.8 | 141.4 |
Net Carrying Amount | [1] | 1,601.2 | 1,679.6 |
Trademarks and trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 3.6 | 2 | |
Accumulated Amortization | 1 | 0.6 | |
Net Carrying Amount | 2.6 | 1.4 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 23.9 | 9.5 | |
Accumulated Amortization | 6.1 | 2.8 | |
Net Carrying Amount | $ 17.8 | $ 6.7 | |
[1] | Customer relationships primarily represent affiliation agreements with distributors acquired in the Starz Merger. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | |
Tradenames | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets not subject to amortization | [1] | $ 250 | $ 250 |
[1] | Tradenames are 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. |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jul. 31, 2018 | Jun. 25, 2018 | May 23, 2018 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||||||
Corporate debt | $ 2,927.5 | $ 2,520 | ||||
Convertible senior subordinated notes | 0 | 60 | ||||
Capital lease obligations | 45.4 | 50.5 | ||||
Total debt | 2,972.9 | 2,630.5 | ||||
Unamortized discount and debt issuance costs, net of fair value adjustment on capital lease obligations | (68.5) | (73.1) | ||||
Total debt, net | 2,904.4 | 2,557.4 | ||||
Less current portion | (53.6) | (79.1) | ||||
Non-current portion of debt | 2,850.8 | 2,478.3 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | 0 | 0 | ||||
Total debt | $ 0 | |||||
LIBOR-Based | ||||||
Debt Instrument [Line Items] | ||||||
Effective rate on LIBOR-based debt after interest rate swaps | 4.987% | |||||
Term Loan A Facility | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | [1] | $ 750 | 750 | |||
Total debt | 750 | |||||
Term Loan B Facility | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | [1] | 1,107.5 | 1,250 | |||
Total debt | 1,107.5 | |||||
5.875% Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | 520 | 520 | ||||
Total debt | $ 520 | |||||
Coupon rate | 5.875% | |||||
6.375% Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | $ 550 | 0 | ||||
Total debt | $ 550 | |||||
Coupon rate | 6.375% | |||||
Interest Rate Swap | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount | $ 1,700 | $ 300 | $ 200 | $ 1,000 | $ 0 | |
LIBOR | LIBOR-Based | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | [1] | $ 1,700 | ||||
[1] | To manage interest rate risk on certain of its LIBOR-based floating-rate corporate debt, as of March 31, 2019, the Company has entered into interest rate swaps to effectively convert the floating interest rates to fixed interest rates on a $1.7 billion notional amount, which as of March 31, 2019 converts the effective rate on $1.7 billion of our LIBOR-based corporate debt to 4.987% (see Note 18 for further information). |
Debt (Schedule of Debt Maturiti
Debt (Schedule of Debt Maturities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Year Ended March 31, 2020 | $ 53 | |
Year Ended March 31, 2021 | 68 | |
Year Ended March 31, 2022 | 88.4 | |
Year Ended March 31, 2023 | 598.4 | |
Year Ended March 31, 2024 | 563.5 | |
Thereafter | 1,601.6 | |
Total debt | 2,972.9 | $ 2,630.5 |
Less aggregate unamortized discount & debt issuance costs, net of fair value adjustment on capital lease obligations | (68.5) | (73.1) |
Total debt, net | 2,904.4 | $ 2,557.4 |
Revolving Credit Facility | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Year Ended March 31, 2020 | 0 | |
Year Ended March 31, 2021 | 0 | |
Year Ended March 31, 2022 | 0 | |
Year Ended March 31, 2023 | 0 | |
Year Ended March 31, 2024 | 0 | |
Thereafter | 0 | |
Total debt | 0 | |
Capital Lease Obligations | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Year Ended March 31, 2020 | 3 | |
Year Ended March 31, 2021 | 3 | |
Year Ended March 31, 2022 | 0.9 | |
Year Ended March 31, 2023 | 0.9 | |
Year Ended March 31, 2024 | 1 | |
Thereafter | 36.6 | |
Total debt | 45.4 | |
Term Loan A Facility | Term Loan | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Year Ended March 31, 2020 | 37.5 | |
Year Ended March 31, 2021 | 52.5 | |
Year Ended March 31, 2022 | 75 | |
Year Ended March 31, 2023 | 585 | |
Year Ended March 31, 2024 | 0 | |
Thereafter | 0 | |
Total debt | 750 | |
Term Loan B Facility | Term Loan | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Year Ended March 31, 2020 | 12.5 | |
Year Ended March 31, 2021 | 12.5 | |
Year Ended March 31, 2022 | 12.5 | |
Year Ended March 31, 2023 | 12.5 | |
Year Ended March 31, 2024 | 12.5 | |
Thereafter | 1,045 | |
Total debt | 1,107.5 | |
5.875% Senior Notes | Senior Notes | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Year Ended March 31, 2020 | 0 | |
Year Ended March 31, 2021 | 0 | |
Year Ended March 31, 2022 | 0 | |
Year Ended March 31, 2023 | 0 | |
Year Ended March 31, 2024 | 0 | |
Thereafter | 520 | |
Total debt | $ 520 | |
Coupon rate | 5.875% | |
6.375% Senior Notes | Senior Notes | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Year Ended March 31, 2020 | $ 0 | |
Year Ended March 31, 2021 | 0 | |
Year Ended March 31, 2022 | 0 | |
Year Ended March 31, 2023 | 0 | |
Year Ended March 31, 2024 | 550 | |
Thereafter | 0 | |
Total debt | $ 550 | |
Coupon rate | 6.375% |
Debt (Loss on Extinguishment of
Debt (Loss on Extinguishment of Debt and Debt Issuance Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 1.9 | $ 35.7 | $ 40.4 |
New Debt Issuance Costs | |||
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | 11 | 20.6 | |
Capitalized & Amortized Over Life of New Issuances | 11.6 | 115 | |
Total | 22.6 | 135.6 | |
Previously Incurred Debt Issuance Costs Or Unamortized Discount | |||
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 24.7 | $ 19.8 | |
Term Loan B Facility | |||
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 1.9 |
Debt (Schedule of Interest Expe
Debt (Schedule of Interest Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Debt Disclosure [Abstract] | ||||
Cash interest | $ 152 | $ 122.9 | $ 86.8 | |
Amortization of debt discount and financing costs | 11.6 | 14.3 | 12.9 | |
Interest expense, before interest on dissenting shareholders' liability | [1] | 163.6 | 137.2 | 99.7 |
Interest on dissenting shareholders' liability | 35.3 | 56.5 | 15.5 | |
Total interest expense | $ 198.9 | $ 193.7 | $ 115.2 | |
[1] | Represents interest expense before interest on dissenting shareholders' liability. |
Debt (Narrative - Senior Credit
Debt (Narrative - Senior Credit Facilities) (Details) $ in Millions | Mar. 22, 2018USD ($) | Mar. 31, 2019USD ($)reduction | Mar. 31, 2018 | Dec. 08, 2016USD ($) |
Line of Credit Facility [Abstract] | ||||
Quarterly principal payment percent, year five | 2.50% | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Abstract] | ||||
Revolving credit facility, maximum borrowing capacity | $ 1,500 | $ 1,500 | $ 1,000 | |
Revolving credit facility, available amount | $ 1,500 | |||
Number of possible increases in margin | 2 | |||
Effective interest rate | 4.49% | |||
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 | 0.75% | |||
LIBOR | Revolving Credit Facility | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 2.00% | 1.75% | ||
Potential increase in interest rate if certain leverage ratios are met, total | 0.50% | |||
Potential increase in interest rate if certain leverage ratios are met, per reduction | 0.25% | |||
LIBOR | Minimum | Revolving Credit Facility | ||||
Line of Credit Facility [Abstract] | ||||
Coupon rate | 0.00% | |||
Term Loan A Facility | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Number of possible increases in margin | reduction | 2 | |||
Effective interest rate | 4.49% | |||
Quarterly principal payment percent | 1.25% | |||
Quarterly principal payment percent, year two | 1.75% | |||
Quarterly principal payment percent, year three | 2.50% | |||
Term Loan A Facility | Base Rate | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 0.75% | |||
Term Loan A Facility | LIBOR | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 2.00% | 1.75% | ||
Potential increase in interest rate if certain leverage ratios are met, total | 0.50% | |||
Potential increase in interest rate if certain leverage ratios are met, per reduction | 0.25% | |||
Term Loan A Facility | LIBOR | Minimum | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Coupon rate | 0.00% | |||
Term Loan B Facility | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Effective interest rate | 4.74% | |||
Quarterly principal payment percent | 0.25% | |||
Term Loan B Facility | Base Rate | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 1.25% | |||
Term Loan B Facility | LIBOR | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Basis spread on variable interest rate | 2.25% | |||
Term Loan B Facility | LIBOR | Minimum | Term Loan | ||||
Line of Credit Facility [Abstract] | ||||
Coupon rate | 0.00% |
Debt (Narrative - Senior Notes)
Debt (Narrative - Senior Notes) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||
Principal amount of debt outstanding | $ 2,927.5 | $ 2,520 |
5.875% Senior Notes | ||
Debt Instrument [Line Items] | ||
Discount Rate, Basis Spread on Treasury Rate | 0.50% | |
5.875% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Coupon rate | 5.875% | |
Principal amount of debt outstanding | $ 520 | 520 |
Debt instrument redemption premium percentage, as a percentage of principal amount prepaid or redeemed | 1.00% | |
6.375% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Coupon rate | 6.375% | |
Principal amount of debt outstanding | $ 550 | $ 0 |
Debt instrument redemption premium percentage, as a percentage of principal amount prepaid or redeemed | 1.00% | |
Senior Credit Facilities, 5.875% Senior Notes And 6.375% Senior Notes | ||
Debt Instrument [Line Items] | ||
Net Loss, Amount Free of Restrictions | $ 299.6 | |
Retained Earnings, Amount Free of Restrictions | $ 208.7 | |
Prior to November 1, 2019 | 5.875% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 100.00% | |
Prior to November 1, 2019 | 6.375% 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, 2019 | 6.375% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 103.188% | |
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, 2020 | 6.375% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 101.594% | |
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, 2021 | 6.375% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage | 100.00% | |
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 Transact
Debt (Narrative - Debt Transactions) (Details) - USD ($) $ in Millions | Mar. 22, 2018 | Dec. 11, 2017 | Dec. 08, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Feb. 04, 2019 | Apr. 15, 2018 | Oct. 27, 2016 |
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | $ 1,500 | $ 1,000 | $ 1,500 | ||||||
Debt instrument, term | 5 years | 5 years | |||||||
Term Loan | Previous Term Loan A | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 5 years | ||||||||
Principal amount of notes | $ 1,000 | ||||||||
Principal amount of debt prepaid | $ 950 | ||||||||
Term Loan | Previous Term Loan B | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 7 years | ||||||||
Principal amount of notes | $ 2,000 | ||||||||
Principal amount of debt prepaid | $ 825 | $ 25 | $ 740 | $ 400 | |||||
Term Loan | Term Loan A Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 5 years | ||||||||
Principal amount of notes | $ 750 | ||||||||
Term Loan | Term Loan B Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 7 years | ||||||||
Principal amount of notes | $ 1,250 | ||||||||
Repayments of Lines of Credit | $ 130 | ||||||||
Senior Notes | 5.875% Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of notes | $ 520 | ||||||||
Coupon rate | 5.875% | ||||||||
Senior Notes | 6.375% Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of notes | $ 550 | ||||||||
Coupon rate | 6.375% | ||||||||
Convertible Senior Subordinated Notes | April 2013 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Coupon rate | 1.25% | 1.25% | |||||||
Starz | Starz Merger Financing | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from revolving credit facility used to finance a portion of Starz merger consideration | $ 50 |
Debt (Narrative - Capital Lease
Debt (Narrative - Capital Lease Obligations) (Details) - Capital Lease Obligations | 12 Months Ended |
Mar. 31, 2019 | |
Building | |
Debt Instrument [Line Items] | |
Capital leases, period of lease agreement | 10 years |
Capital Leases, number of renewal periods | 4 |
Capital Leases, renewal term (in years) | 5 years |
Capital lease agreement, imputed annual interest rate | 7.20% |
Transponder Capacity | |
Debt Instrument [Line Items] | |
Capital lease agreement, imputed annual interest rate | 7.00% |
Participations and Residuals (D
Participations and Residuals (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Participations And Residuals [abstract] | ||
Contribution of TIK Films, in general, subject to certain limitations | 25.00% | |
Theatrical slate participation arrangement, length of term ended January 23, 2018 | 3 years | |
Theatrical slate participation arrangement, amount payable to TIK Films | $ 157 | $ 151.8 |
Film Obligations and Producti_3
Film Obligations and Production Loans (Narrative) (Details) - Production Loans | Mar. 31, 2019 |
Minimum | |
Interest rates on production loans | 4.63% |
Maximum | |
Interest rates on production loans | 5.29% |
Film Obligations and Producti_4
Film Obligations and Production Loans (Film Obligations And Production Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Film Obligations And Production Loans [Abstract] | ||
Film obligations | $ 270.3 | $ 146.7 |
Production loans | 386.4 | 352.9 |
Total film obligations and production loans | 656.7 | 499.6 |
Unamortized debt issuance costs | (1) | (0.4) |
Total film obligations and production loans, net | 655.7 | 499.2 |
Less current portion | (512.6) | (327.9) |
Total non-current film obligations and production loans | $ 143.1 | $ 171.3 |
Film Obligations and Producti_5
Film Obligations and Production Loans (Future Annual Repayment of Film Obligations And Production Loans) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Future Annual Repayment Of Film Obligations And Production Loans | ||
Year Ended March 31, 2020 | $ 513.9 | |
Year Ended March 31, 2021 | 118.1 | |
Year Ended March 31, 2022 | 13.9 | |
Year Ended March 31, 2023 | 7 | |
Year Ended March 31, 2024 | 3 | |
Thereafter | 1.1 | |
Total | 657 | |
Less imputed interest on film obligations and debt issuance costs on production loans | (1.3) | |
Total film obligations and production loans, net | 655.7 | $ 499.2 |
Film Obligations | ||
Future Annual Repayment Of Film Obligations And Production Loans | ||
Year Ended March 31, 2020 | 177.3 | |
Year Ended March 31, 2021 | 68.3 | |
Year Ended March 31, 2022 | 13.9 | |
Year Ended March 31, 2023 | 7 | |
Year Ended March 31, 2024 | 3 | |
Thereafter | 1.1 | |
Total | 270.6 | |
Production Loans | ||
Future Annual Repayment Of Film Obligations And Production Loans | ||
Year Ended March 31, 2020 | 336.6 | |
Year Ended March 31, 2021 | 49.8 | |
Year Ended March 31, 2022 | 0 | |
Year Ended March 31, 2023 | 0 | |
Year Ended March 31, 2024 | 0 | |
Thereafter | 0 | |
Total | $ 386.4 |
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 | Mar. 31, 2019 | Mar. 31, 2018 |
Assets: | ||
Available-for-sale securities | $ 1.2 | $ 7.3 |
Forward exchange contracts | 1.5 | 0.3 |
Liabilities: | ||
Forward exchange contracts | (0.6) | (0.6) |
Interest rate swaps | (63.6) | 0 |
Fair value, net asset (liability) | (61.5) | 7 |
Level 1 | ||
Assets: | ||
Available-for-sale securities | 1.2 | 7.3 |
Forward exchange contracts | 0 | 0 |
Liabilities: | ||
Forward exchange contracts | 0 | 0 |
Interest rate swaps | 0 | 0 |
Fair value, net asset (liability) | 1.2 | 7.3 |
Level 2 | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Forward exchange contracts | 1.5 | 0.3 |
Liabilities: | ||
Forward exchange contracts | (0.6) | (0.6) |
Interest rate swaps | (63.6) | 0 |
Fair value, net asset (liability) | $ (62.7) | $ (0.3) |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values of Assets and Liabilities Not Required to Be Carried at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Apr. 15, 2018 | Mar. 31, 2018 | |
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% | |||
Senior Notes | 6.375% 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 | 6.375% | |||
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% | 1.25% | ||
Carrying Value | ||||
Liabilities: | ||||
Total liabilities, fair value disclosure | $ 2,712.7 | $ 2,872 | ||
Carrying Value | Senior Notes | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior Notes, fair value disclosure | 502.8 | 500.4 | ||
Carrying Value | Senior Notes | 6.375% Senior Notes | ||||
Liabilities: | ||||
Senior Notes, fair value disclosure | 541.4 | 0 | ||
Carrying Value | Convertible Senior Subordinated Notes | April 2013 Notes | ||||
Liabilities: | ||||
Convertible notes, fair value disclosures | 0 | 60 | ||
Carrying Value | Production Loans | Production Loans | ||||
Liabilities: | ||||
Loans, fair value disclosure | 385.4 | 352.6 | ||
Carrying Value | Term Loan | Term Loan A Facility | ||||
Liabilities: | ||||
Loans, fair value disclosure | 733.3 | 729.7 | ||
Carrying Value | Term Loan | Term Loan B Facility | ||||
Liabilities: | ||||
Loans, fair value disclosure | 1,091.2 | 1,229.3 | ||
Fair Value | Fair Value (Level 2) | ||||
Liabilities: | ||||
Total liabilities, fair value disclosure | [1] | 2,891.3 | 2,955.2 | |
Fair Value | Fair Value (Level 2) | Senior Notes | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior Notes, fair value disclosure | [1] | 534.3 | 539.5 | |
Fair Value | Fair Value (Level 2) | Senior Notes | 6.375% Senior Notes | ||||
Liabilities: | ||||
Senior Notes, fair value disclosure | [1] | 576.1 | 0 | |
Fair Value | Fair Value (Level 2) | Convertible Senior Subordinated Notes | April 2013 Notes | ||||
Liabilities: | ||||
Convertible notes, fair value disclosures | [1] | 0 | 60.3 | |
Fair Value | Fair Value (Level 2) | Production Loans | Production Loans | ||||
Liabilities: | ||||
Loans, fair value disclosure | [1] | 386.4 | 352.9 | |
Fair Value | Fair Value (Level 2) | Term Loan | Term Loan A Facility | ||||
Liabilities: | ||||
Loans, fair value disclosure | [1] | 742.5 | 750.9 | |
Fair Value | Fair Value (Level 2) | Term Loan | Term Loan B Facility | ||||
Liabilities: | ||||
Loans, fair value disclosure | [1] | $ 1,088.1 | $ 1,251.6 | |
[1] | The Company measures the fair value of its outstanding debt using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements). |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) - USD ($) $ in Millions | May 29, 2018 | Nov. 12, 2015 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Redeemable Noncontrolling Interest [Line Items] | |||||
Initial fair value of redeemable noncontrolling interests | $ 15.8 | $ 0 | $ 0 | ||
3 Arts Entertainment | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Initial fair value of redeemable noncontrolling interests | $ 15.8 | ||||
Redeemable noncontrolling interest, ownership percentage held by noncontrolling interest holders | 49.00% | ||||
First Put/ Call Option, Term | 5 years | ||||
Put rights exercise period | 60 days | ||||
Period after expiration of put rights that call rights begin | 30 days | ||||
Call rights exercise period | 60 days | ||||
Pilgrim Media Group | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Initial fair value of redeemable noncontrolling interests | $ 90.1 | ||||
Redeemable noncontrolling interest, ownership percentage held by noncontrolling interest holders | 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 |
Noncontrolling Interests (Chang
Noncontrolling Interests (Changes In Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning balance | $ 101.8 | $ 93.8 | $ 90.5 |
Initial fair value of redeemable noncontrolling interests | 15.8 | 0 | 0 |
Net income (loss) attributable to noncontrolling interests | (16.2) | 0.5 | (0.3) |
Noncontrolling interest discount accretion | 22.1 | 6.1 | 5 |
Adjustments to redemption value | 6.5 | 9.3 | 5.5 |
Cash distributions | (2.4) | (7.9) | (6.9) |
Ending balance | $ 127.6 | $ 101.8 | $ 93.8 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 913.7 | $ 933.2 | $ 901 | $ 932.7 | $ 1,040.2 | $ 1,142.7 | $ 940.8 | $ 1,005.3 | $ 3,680.5 | $ 4,129.1 | $ 3,201.5 |
Operating segments | Motion Picture | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,464.4 | 1,822.1 | 1,920.6 | ||||||||
Operating segments | Motion Picture | Theatrical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 215.8 | 281.4 | 371.3 | ||||||||
Operating segments | Motion Picture | Digital Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 334.7 | 373.7 | 303.9 | ||||||||
Operating segments | Motion Picture | Packaged Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 257.5 | 400.3 | 403.8 | ||||||||
Operating segments | Motion Picture | Home Entertainment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 592.2 | 774 | 707.7 | ||||||||
Operating segments | Motion Picture | Television | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 274.4 | 278.5 | 279.1 | ||||||||
Operating segments | Motion Picture | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 341.1 | 456.7 | 533.8 | ||||||||
Operating segments | Motion Picture | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 40.9 | 31.5 | 28.7 | ||||||||
Operating segments | Television Production | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 920.9 | 1,033.2 | 892.8 | ||||||||
Operating segments | Television Production | Digital Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 66.9 | 96.3 | 50.1 | ||||||||
Operating segments | Television Production | Packaged Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 7.6 | 11.2 | 6.3 | ||||||||
Operating segments | Television Production | Home Entertainment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 74.5 | 107.5 | 56.4 | ||||||||
Operating segments | Television Production | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 136 | 179.6 | 163.2 | ||||||||
Operating segments | Television Production | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 54.6 | 1.6 | 5.9 | ||||||||
Operating segments | Television Production | Television | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 655.8 | 744.5 | 667.3 | ||||||||
Operating segments | Media Networks | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,461 | 1,411.2 | 426.3 | ||||||||
Operating segments | Media Networks | Programming | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,461 | 1,411.2 | 426.3 | ||||||||
Intersegment Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (165.8) | (137.4) | (38.2) | ||||||||
Intersegment Eliminations | Motion Picture | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (10.9) | (10.7) | (6.6) | ||||||||
Intersegment Eliminations | Television Production | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (154.8) | (126.4) | (30.7) | ||||||||
Intersegment Eliminations | Media Networks | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (0.1) | (0.3) | (0.9) | ||||||||
International | Operating segments | Media Networks | Programming | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2.1 | 0 | 0 | ||||||||
Domestic | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 3,124.6 | 3,383 | 2,431.9 | ||||||||
Domestic | Operating segments | Media Networks | Programming | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,458.9 | 1,411.2 | 426.3 | ||||||||
Domestic | Operating segments | Media Networks | Streaming Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 18 | $ 7.1 | $ 2.9 |
Revenue (Remaining Performance
Revenue (Remaining Performance Obligations - Timing) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,816 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,257.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | 275.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | 120.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 163.4 |
Revenue (Contract with Customer
Revenue (Contract with Customer, Asset and Liability) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 | |||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||||||
Accounts receivable, net - current | $ 647.2 | $ 1,042.2 | $ 946 | ||||
Accounts receivable, net - non-current | 176.1 | [1],[2] | 257.7 | [1] | 325.2 | [2] | |
Contract asset - current | [3] | 97.3 | 78.3 | ||||
Contract asset - non-current | [4] | 72.1 | 71.5 | ||||
Deferred revenue - current | 146.5 | 183.8 | $ 183.9 | ||||
Deferred revenue - non-current | 62.8 | $ 70.5 | |||||
Contract with Customer, Liability, Revenue Recognized | 143 | ||||||
Accounts receivable, current | |||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||||||
Contract with Customer, Asset, Increase (Decrease) | (395) | ||||||
Accounts receivable, noncurrent | |||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||||||
Contract with Customer, Asset, Increase (Decrease) | [1] | (81.6) | |||||
Other Current Assets | |||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||||||
Contract with Customer, Asset, Increase (Decrease) | [3] | 19 | |||||
Other Non-Current Assets | |||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||||||
Contract with Customer, Asset, Increase (Decrease) | [4] | 0.6 | |||||
Deferred revenue, current | |||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||||||
Contract with Customer, Liability, Increase (Decrease) | (37.3) | ||||||
Deferred revenue, noncurrent | |||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||||||
Contract with Customer, Liability, Increase (Decrease) | $ (7.7) | ||||||
[1] | Included in accounts receivable within non-current other assets in the consolidated balance sheets. | ||||||
[2] | Unamortized discounts on contract assets included in prepaid expenses and other were $3.9 million at March 31, 2019, and unamortized discounts on long-term, non-interest bearing receivables were $9.7 million and $18.0 million at March 31, 2019 and 2018, respectively. | ||||||
[3] | Included in prepaid expenses and other within other current assets in the consolidated balance sheets. | ||||||
[4] | Included in prepaid expenses and other within non-current other assets in the consolidated balance sheets. |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 143 |
Revenue recognized in period from performance obligations satisfied in previous period | $ 231.7 |
Revenue (Comparison of New and
Revenue (Comparison of New and Prior Revenue Recognition Guidance) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2018 | |||||||||
Assets | ||||||||||||||||||||
Accounts receivable, net - current | $ 647.2 | $ 946 | $ 647.2 | $ 946 | $ 1,042.2 | |||||||||||||||
Other assets - current | 267.2 | 195.8 | 267.2 | 195.8 | ||||||||||||||||
Other assets - non-current | 436.1 | 458.6 | 436.1 | 458.6 | ||||||||||||||||
Investment in films and television programs and program rights, net | 1,672 | 1,692 | 1,672 | 1,692 | ||||||||||||||||
Liabilities | ||||||||||||||||||||
Accounts payable and accrued liabilities | 531.2 | 447.7 | 531.2 | 447.7 | ||||||||||||||||
Participations and residuals - current | 408.5 | 504.5 | 408.5 | 504.5 | ||||||||||||||||
Deferred revenue - current | 146.5 | 183.9 | 146.5 | 183.9 | $ 183.8 | |||||||||||||||
Deferred revenue - non-current | 62.8 | 70.3 | 62.8 | 70.3 | ||||||||||||||||
Deferred tax liabilities | 56.5 | 91.9 | 56.5 | 91.9 | ||||||||||||||||
Equity | ||||||||||||||||||||
Retained earnings | 208.7 | 516.6 | 208.7 | 516.6 | ||||||||||||||||
Statement of Operations Information: | ||||||||||||||||||||
Revenues | 913.7 | $ 933.2 | $ 901 | $ 932.7 | 1,040.2 | $ 1,142.7 | $ 940.8 | $ 1,005.3 | 3,680.5 | 4,129.1 | $ 3,201.5 | |||||||||
Direct operating | 2,028.2 | 2,309.6 | 1,903.8 | |||||||||||||||||
Operating income (loss) | (34) | [1] | 86.8 | [1] | 39.1 | [1] | 38.2 | [1] | 48.4 | [2] | 80.2 | [2] | 30.4 | [2] | 89.7 | [2] | 130 | 248.7 | (16.3) | |
Interest and other income | 12 | 10.4 | 6.4 | |||||||||||||||||
Loss before income taxes | (308.1) | 148.7 | (134.4) | |||||||||||||||||
Income tax benefit | 8.5 | 319.4 | 148.9 | |||||||||||||||||
Net income (loss) | (159.1) | [1],[3] | $ 20.1 | [1],[3] | $ (149.3) | [1],[3] | $ (11.4) | [1],[3] | $ 89.6 | [2],[4] | $ 191.1 | [2],[4] | $ 12.9 | [2],[4] | $ 174.5 | [2],[4] | (299.6) | $ 468.1 | $ 14.5 | |
Impact of Adoption | Revenue Recognition ASU 2014-09 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Accounts receivable, net - current | (6.2) | (6.2) | ||||||||||||||||||
Other assets - current | (97.3) | (97.3) | ||||||||||||||||||
Other assets - non-current | (0.5) | (0.5) | ||||||||||||||||||
Investment in films and television programs and program rights, net | 37.3 | 37.3 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||
Accounts payable and accrued liabilities | (58.7) | (58.7) | ||||||||||||||||||
Participations and residuals - current | 1.9 | 1.9 | ||||||||||||||||||
Deferred revenue - current | (0.6) | (0.6) | ||||||||||||||||||
Deferred revenue - non-current | 0.8 | 0.8 | ||||||||||||||||||
Deferred tax liabilities | (1.9) | (1.9) | ||||||||||||||||||
Equity | ||||||||||||||||||||
Retained earnings | (8.2) | (8.2) | ||||||||||||||||||
Statement of Operations Information: | ||||||||||||||||||||
Revenues | 44.9 | |||||||||||||||||||
Direct operating | 31 | |||||||||||||||||||
Operating income (loss) | 13.9 | |||||||||||||||||||
Interest and other income | 0 | |||||||||||||||||||
Loss before income taxes | 13.9 | |||||||||||||||||||
Income tax benefit | (3.4) | |||||||||||||||||||
Net income (loss) | 10.5 | |||||||||||||||||||
Without Adoption of New Revenue Guidance | Revenue Recognition ASU 2014-09 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Accounts receivable, net - current | 641 | 641 | ||||||||||||||||||
Other assets - current | 169.9 | 169.9 | ||||||||||||||||||
Other assets - non-current | 435.6 | 435.6 | ||||||||||||||||||
Investment in films and television programs and program rights, net | 1,709.3 | 1,709.3 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||
Accounts payable and accrued liabilities | 472.5 | 472.5 | ||||||||||||||||||
Participations and residuals - current | 410.4 | 410.4 | ||||||||||||||||||
Deferred revenue - current | 145.9 | 145.9 | ||||||||||||||||||
Deferred revenue - non-current | 63.6 | 63.6 | ||||||||||||||||||
Deferred tax liabilities | 54.6 | 54.6 | ||||||||||||||||||
Equity | ||||||||||||||||||||
Retained earnings | $ 200.5 | 200.5 | ||||||||||||||||||
Statement of Operations Information: | ||||||||||||||||||||
Revenues | 3,725.4 | |||||||||||||||||||
Direct operating | 2,059.2 | |||||||||||||||||||
Operating income (loss) | 143.9 | |||||||||||||||||||
Interest and other income | 12 | |||||||||||||||||||
Loss before income taxes | (294.2) | |||||||||||||||||||
Income tax benefit | 5.1 | |||||||||||||||||||
Net income (loss) | $ (289.1) | |||||||||||||||||||
[1] | During fiscal 2019, operating income and net income included the following items:•Restructuring and Other. The first, second, third and fourth quarter of fiscal 2019 included restructuring and other items of $10.5 million, $15.0 million, $16.6 million and $35.9 million, respectively (after tax $7.8 million, $11.5 million, $12.6 million, and $27.3 million, respectively) (see Note 15). •Programming and Content Charges. During the fourth quarter of fiscal 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million (after tax $26.7 million) in connection with recent management changes, and changes to the Company's programming strategy, which are included in direct operating expense in the consolidated statement of operations in the fourth quarter of fiscal 2019 (see Note 15). | |||||||||||||||||||
[2] | During fiscal 2018, operating income and net income included the following items: •Restructuring and Other. The first, second, third and fourth quarter of fiscal 2018 included restructuring and other items of $10.9 million, $3.5 million, $21.4 million, and $24.0 million, respectively (after tax $8.9 million, $2.5 million, $14.5 million, and $15.7 million, respectively) (see Note 15). | |||||||||||||||||||
[3] | During fiscal 2019, net income also included the following items:•Shareholder Litigation Settlements. The second quarter of fiscal 2019 included shareholder litigation settlements of $114.1 million (after tax $104.7 million) (see Note 17).•Loss on Investments. The first, second, third and fourth quarter of fiscal 2019 included a loss on investments of $0.9 million, $36.1 million, $6.2 million and $44.4 million, respectively (after tax $0.7 million, $32.4 million, $4.7 million and $33.7 million, respectively) (see Note 5).•Loss on Extinguishment of Debt. The fourth quarter of fiscal 2019 included a loss on extinguishment of debt of $1.9 million (after tax $1.4 million) (see Note 7).•Deferred Tax Valuation Allowance. The fourth quarter of fiscal 2019 included a charge of $53.7 million from an increase in the valuation allowance for certain of the Company's deferred tax assets (see Note 14). | |||||||||||||||||||
[4] | During fiscal 2018, net income also included the following items:•Loss on Extinguishment of Debt. The first, second, third and fourth quarter of fiscal 2018 included a loss on extinguishment of debt of $11.6 million, $6.4 million, $6.2 million and $11.6 million, respectively (after tax $8.5 million, $4.7 million, $4.6 million and $7.8 million, respectively) (see Note 7). •Gain (Loss) on Investments. The first and third quarter of fiscal 2018 included a gain on investments of $201.0 million and a loss on investments of $29.2 million, respectively (after tax gain of $127.0 million and loss of $20.1 million, respectively) (see Note 5).•Impact of Corporate Tax Rate Change on Deferred Tax Liabilities. The third quarter of fiscal 2018 included a deferred tax benefit of $165.0 million resulting from the impact of the change in the U.S. federal corporate income tax rate from 35% to 21% under the Tax Cuts and Jobs Act on the Company's beginning net deferred tax liabilities (see Note 14). •Tax Benefit from Internal Capital Restructuring. The fourth quarter of fiscal 2018 included a net tax benefit of $94.1 million primarily from the internal capital restructuring in connection with our third party debt refinancing (see Note 7 to our consolidated financial statements), net of the charge from an increase in its valuation allowance associated with certain deferred tax assets (see Note 14). |
Capital Stock (Narrative - Equi
Capital Stock (Narrative - Equity) (Details) $ / shares in Units, $ in Thousands | Dec. 08, 2016USD ($)installmentshares | Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares |
Class of Stock [Line Items] | |||
Affiliation agreement, number of annual installments | installment | 3 | ||
Affiliation agreement, annual installment payment, equity or cash, amount | $ | $ 16,670 | ||
Affiliation agreement, value of agreement | $ | $ 50,000 | ||
Class A Voting Common Shares | |||
Class of Stock [Line Items] | |||
Authorized common shares (in shares) | 500,000,000 | 500,000,000 | |
Common shares, no par value | $ / shares | $ 0 | $ 0 | |
Affiliation agreement, annual installment payment, equity or cash, amount | $ | $ 8,300 | $ 8,300 | |
Affiliation Agreement, Annual Installment Payment, Shares Issued | 400,000 | 300,000 | |
Class B Non-Voting Common Shares | |||
Class of Stock [Line Items] | |||
Authorized common shares (in shares) | 500,000,000 | 500,000,000 | |
Common shares, no par value | $ / shares | $ 0 | $ 0 | |
Affiliation agreement, annual installment payment, equity or cash, amount | $ | $ 8,300 | $ 8,300 | |
Affiliation Agreement, Annual Installment Payment, Shares Issued | 500,000 | 300,000 | |
Starz | Class A Voting Common Shares | |||
Class of Stock [Line Items] | |||
Issuance of common shares related to acquisitions and other, shares | 74,200,000 | ||
Starz | Class B Non-Voting Common Shares | |||
Class of Stock [Line Items] | |||
Issuance of common shares related to acquisitions and other, shares | 74,200,000 | ||
Common Shares | Starz | Class A Voting Common Shares | |||
Class of Stock [Line Items] | |||
Conversion of stock, shares issued (in shares) | 0.5 | ||
Common Shares | Starz | Class B Non-Voting Common Shares | |||
Class of Stock [Line Items] | |||
Conversion of stock, shares issued (in shares) | 0.5 |
Capital Stock (Narrative - Shar
Capital Stock (Narrative - Share Based Compensation) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Excess tax deficiencies on equity-based compensation awards | $ 14.9 | ||
Excess tax benefits on equity-based compensation awards | $ 5.2 | $ 0 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercised, total intrinsic value | $ 5.3 | $ 36.9 | $ 30 |
Shares cancelled to fund withholding tax obligations on option exercises (in shares) | 0.1 | 0.1 | 0.8 |
Restricted Stock and Restricted Share Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock and restricted share units vested | $ 33.7 | $ 41.6 | $ 60.7 |
Shares withheld for tax purposes upon vesting of restricted share units (in shares) | 0.5 | 0.7 | 1 |
Stock Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Other share-based compensation granted in period, fair value | $ 2.3 | $ 0.8 | $ 1.1 |
Shares issued, net of shares for tax withholdings (in shares) | 0.1 | ||
Stock Compensation Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued, net of shares for tax withholdings (in shares) | 0.1 | 0.1 |
Capital Stock (Shares Reserved
Capital Stock (Shares Reserved for Future Issuance) (Details) - shares shares in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance (in shares) | 43.3 | 46.7 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance (in shares) | 34.6 | 32.1 |
Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance (in shares) | 2 | 2.2 |
Common shares available for future issuance under plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance (in shares) | 6.7 | 10.3 |
April 2013 Notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Coupon rate | 1.25% | |
Convertible Senior Subordinated Notes | April 2013 Notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for future issuance (in shares) | 0 | 2.1 |
Capital Stock (Shares Repurchas
Capital Stock (Shares Repurchased) (Details) - USD ($) $ in Millions | 144 Months Ended | ||
May 23, 2019 | Feb. 02, 2016 | Feb. 01, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase plan, authorized amount | $ 468 | $ 300 | |
Subsequent Event | |||
Equity, Class of Treasury Stock [Line Items] | |||
Aggregate cost of shares repurchased | $ 283.2 | ||
Share repurchase plan, remaining capacity | $ 184.7 |
Capital Stock (Dividends Declar
Capital Stock (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | |||||||
Dividends declared per common share (in usd per share) | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.09 | $ 0.09 |
Total amount | $ 19.3 | $ 19.2 | $ 19.1 | $ 13.3 | $ 38.5 | $ 19.1 | $ 13.3 |
5.875% Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Coupon rate | 5.875% | ||||||
6.375% Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Coupon rate | 6.375% |
Capital Stock (Share-Based Comp
Capital Stock (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 52.1 | $ 85.6 | $ 77.1 | |
Total share-based compensation expense | 68.1 | 88.5 | 79.5 | |
Tax impact | (15.7) | (29.6) | (28) | [1] |
Reduction in net income | 52.4 | 58.9 | 51.5 | |
Stock Options | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 23 | 43.1 | 42.5 | |
Restricted Share Units and Other Share-based Compensation | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 24.7 | 36.2 | 34 | |
Share Appreciation Rights (SARs) | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 4.4 | 6.3 | 0.6 | |
Equity Awards | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Impact of accelerated vesting on equity awards | $ 16 | $ 2.9 | $ 2.4 | [2] |
[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. |
Capital Stock (Share-based Co_2
Capital Stock (Share-based Compensation Expense by Category) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 68.1 | $ 88.5 | $ 79.5 |
Direct operating | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 1.1 | 1.1 | 1.2 |
Distribution and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 0.4 | 0.9 | 0.4 |
General and administrative expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 50.6 | 83.6 | 75.5 |
Restructuring and other | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 16 | $ 2.9 | $ 2.4 |
Capital Stock (Stock Options Ac
Capital Stock (Stock Options Activity) (Details) - Stock Options $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Mar. 31, 2019USD ($)$ / sharesshares | ||
Class A Voting Common Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 8.6 | |
Granted (in shares) | 0.2 | |
Exercised (in shares) | 0 | [1] |
Forfeited or expired (in shares) | (0.4) | |
Outstanding, end of period (in shares) | 8.4 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding, Beginning of Period, Weighted Average Exercise Price (in usd per share) | $ / shares | $ 26.93 | |
Granted, Weighted Average Exercise Price (in usd per share) | $ / shares | 28.07 | |
Exercised, Weighted Average Exercise Price (in usd per share) | $ / shares | 15.76 | |
Forfeited or expired, Weighted Average Exercise Price (in usd per share) | $ / shares | 33.42 | |
Outstanding, End of Period, Weighted Average Exercise Price (in usd per share) | $ / shares | $ 26.70 | |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 4 years 11 months 19 days | |
Outstanding, Aggregate Intrinsic Value | $ | $ 0.1 | |
Outstanding, vested or expected to vest (in shares) | 8.4 | |
Outstanding, vested or expected to vest, Weighted Average Exercise Price (in usd per share) | $ / shares | $ 26.71 | |
Outstanding, vested or expected to vest, Weighted Average Remaining Contractual Term In Years | 4 years 11 months 16 days | |
Outstanding, vested or expected to vest, Aggregate Intrinsic Value | $ | $ 0.1 | |
Exercisable (in shares) | 6.1 | |
Exercisable, Weighted Average Exercise Price (in usd per share) | $ / shares | $ 27.91 | |
Exercisable, Weighted Average Remaining Contractual Term In Years | 4 years 2 months 5 days | |
Exercisable, Aggregate Intrinsic Value | $ | $ 0.1 | |
Class B Non-Voting Common Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 23.5 | |
Granted (in shares) | 4.2 | |
Exercised (in shares) | 0.7 | |
Forfeited or expired (in shares) | (0.8) | |
Outstanding, end of period (in shares) | 26.2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding, Beginning of Period, Weighted Average Exercise Price (in usd per share) | $ / shares | $ 20.56 | |
Granted, Weighted Average Exercise Price (in usd per share) | $ / shares | 21.52 | |
Exercised, Weighted Average Exercise Price (in usd per share) | $ / shares | 10.78 | |
Forfeited or expired, Weighted Average Exercise Price (in usd per share) | $ / shares | 29 | |
Outstanding, End of Period, Weighted Average Exercise Price (in usd per share) | $ / shares | $ 20.72 | |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 4 years 2 months 1 day | |
Outstanding, Aggregate Intrinsic Value | $ | $ 25.4 | |
Outstanding, vested or expected to vest (in shares) | 25.8 | |
Outstanding, vested or expected to vest, Weighted Average Exercise Price (in usd per share) | $ / shares | $ 20.70 | |
Outstanding, vested or expected to vest, Weighted Average Remaining Contractual Term In Years | 4 years 1 month 17 days | |
Outstanding, vested or expected to vest, Aggregate Intrinsic Value | $ | $ 25.4 | |
Exercisable (in shares) | 19.1 | |
Exercisable, Weighted Average Exercise Price (in usd per share) | $ / shares | $ 19.72 | |
Exercisable, Weighted Average Remaining Contractual Term In Years | 2 years 8 months 27 days | |
Exercisable, Aggregate Intrinsic Value | $ | $ 25.3 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Maximum | Class A Voting Common Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Exercised (in shares) | 0.1 | |
[1] | Represents less than 0.1 million shares. |
Capital Stock (Fair Value Assum
Capital Stock (Fair Value Assumptions) (Details) - Stock Options - $ / shares | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average fair value of grants (in usd per share) | $ 5.48 | $ 8.38 | $ 6.88 | |
Risk-free interest rate, minimum | [1] | 2.20% | 1.70% | 1.20% |
Risk-free interest rate, maximum | [1] | 3.10% | 2.70% | 2.40% |
Expected volatility for options, minimum | [2] | 34.00% | 35.00% | 35.00% |
Expected volatility for options, maximum | [2] | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected option lives (in years) | [3] | 1 year | 4 years | 4 years |
Expected dividend yield | [4] | 0.00% | 0.00% | 0.00% |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected option lives (in years) | [3] | 7 years | 6 years | 10 years |
Expected dividend yield | [4] | 1.70% | 1.50% | 1.80% |
[1] | The risk-free rate assumed in valuing the options is based on the U.S. Treasury Yield curve in effect applied against the expected term of the option at the time of the grant. | |||
[2] | Expected volatilities are based on implied volatilities from traded options on the Company’s shares, historical volatility of the Company’s shares and other factors. | |||
[3] | The expected term of options granted represents the period of time that options granted are expected to be outstanding. | |||
[4] | The expected dividend yield is estimated by dividing the expected annual dividend by the market price of the Company's shares at the date of grant. |
Capital Stock (Restricted Share
Capital Stock (Restricted Share Unit Activity) (Details) shares in Millions | 12 Months Ended | |
Mar. 31, 2019$ / sharesshares | ||
Restricted Share Units (RSUs) | Class A Voting Common Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding (in shares) | 0.2 | |
Granted (in shares) | 0 | [1] |
Vested (in shares) | (0.1) | |
Forfeited (in shares) | 0 | [1] |
Outstanding (in shares) | 0.1 | |
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) | $ / shares | $ 28.49 | |
Granted, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 23.51 | |
Vested, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 29.05 | |
Forfeited, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 24.83 | |
Outstanding, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | $ 25.68 | |
Restricted Share Units (RSUs) | Class B Non-Voting Common Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding (in shares) | 1.5 | |
Granted (in shares) | 1.3 | |
Vested (in shares) | (0.9) | |
Forfeited (in shares) | (0.3) | |
Outstanding (in shares) | 1.6 | |
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) | $ / shares | $ 28.71 | |
Granted, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 19.88 | |
Vested, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 26.14 | |
Forfeited, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 23.24 | |
Outstanding, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | $ 24.01 | |
Restricted Stock | Class B Non-Voting Common Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding (in shares) | 0.5 | |
Granted (in shares) | 0 | |
Vested (in shares) | (0.2) | |
Forfeited (in shares) | 0 | [1] |
Outstanding (in shares) | 0.3 | |
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) | $ / shares | $ 25.70 | |
Granted, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 0 | |
Vested, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 25.70 | |
Forfeited, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | 25.70 | |
Outstanding, Weighted Average Grant Date Fair Value (in usd per share) | $ / shares | $ 25.70 | |
Minimum | Restricted Stock and Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |
Maximum | Restricted Stock and Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
Maximum | Restricted Share Units (RSUs) | Class A Voting Common Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in shares) | 0.1 | |
Forfeited (in shares) | (0.1) | |
Maximum | Restricted Stock | Class B Non-Voting Common Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Forfeited (in shares) | (0.1) | |
[1] | Represents less than 0.1 million shares. |
Capital Stock (Unrecognized Com
Capital Stock (Unrecognized Compensation Cost) (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unrecognized Compensation Cost | $ 75.3 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unrecognized Compensation Cost | $ 43.4 |
Weighted Average Remaining Years | 2 years 9 months 18 days |
Restricted Stock and Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unrecognized Compensation Cost | $ 31.9 |
Weighted Average Remaining Years | 2 years |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Dec. 22, 2017 | Dec. 21, 2017 | Mar. 31, 2019 | Mar. 31, 2018 |
Income Taxes [Line Items] | ||||
Federal statutory income tax rate | 21.00% | 35.00% | 21.00% | |
Unrecognized tax benefits that if realized would impact effective tax rate | $ 17.6 | |||
Unrecognized tax benefits estimated that may be realized in next 12 months | 3.8 | |||
Foreign Tax Authority | Canada | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 106.9 | |||
Foreign Tax Authority | Luxembourg | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 947 | |||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 791.3 | |||
Domestic Tax Authority | United States | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 1,367.9 | |||
Credit carryforward | $ 74.2 | |||
Pro Forma | ||||
Income Taxes [Line Items] | ||||
Federal statutory income tax rate | 31.50% |
Income Taxes (Components of Pre
Income Taxes (Components of Pre-Tax Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (505.7) | $ (824.1) | $ (409.2) |
International | 197.6 | 972.8 | 274.8 |
Income (loss) before income taxes | $ (308.1) | $ 148.7 | $ (134.4) |
Income Taxes (Current and Defer
Income Taxes (Current and Deferred Income Tax Provision (Benefits)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Current provision (benefit): | |||
Federal | $ 9.1 | $ (17.6) | $ 7.8 |
States | (0.7) | (4.3) | 2.2 |
International | 6.7 | 2 | 4.5 |
Total current provision (benefit) | 15.1 | (19.9) | 14.5 |
Deferred benefit: | |||
Federal | (48.2) | (269) | (143.3) |
States | 5.8 | (18.5) | (9.9) |
International | 18.8 | (12) | (10.2) |
Total deferred benefit | (23.6) | (299.5) | (163.4) |
Total benefit for income taxes | $ (8.5) | $ (319.4) | $ (148.9) |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income taxes computed at Federal statutory rate | $ (64.7) | $ 46.8 | $ (47.1) |
Foreign affiliate dividends | (37.5) | (329.1) | (84.2) |
Foreign operations subject to different income tax rates | (235.7) | 7.1 | (14.6) |
State income tax | (8.5) | (21.2) | (6) |
Remeasurement of opening U.S. deferred tax liabilities due to the Tax Act | 0 | (165) | 0 |
Additional remeasurements of originating deferred tax assets and liabilities | 0 | 75.6 | 0 |
Transaction costs | 0 | 0 | 7.3 |
Permanent differences | 6.8 | 3.5 | (0.5) |
Nondeductible settlement costs | 16.9 | 0 | 0 |
Other | 0.3 | (5.3) | (2.3) |
Increase (decrease) in valuation allowance | 313.9 | 68.2 | (1.5) |
Total benefit for income taxes | $ (8.5) | $ (319.4) | $ (148.9) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred tax assets | ||
Net operating losses | $ 609.5 | $ 336.7 |
Foreign tax credits | 74.2 | 68.3 |
Investment in film and television obligations | 79 | 101.5 |
Accounts payable | 78.9 | 96.4 |
Other assets | 71.7 | 59 |
Reserves | 13.9 | 21.4 |
Total deferred tax assets | 927.2 | 683.3 |
Valuation allowance | (401.1) | (73.2) |
Deferred tax assets, net of valuation allowance | 526.1 | 610.1 |
Deferred tax liabilities: | ||
Intangible assets | (438.4) | (475.5) |
Fixed assets | (8.6) | (19.5) |
Accounts receivable | (110.6) | (150.7) |
Other | (5.2) | (17.5) |
Total deferred tax liabilities | (562.8) | (663.2) |
Total | ||
Net deferred tax liabilities | $ (36.7) | $ (53.1) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits | $ 17.6 | $ 14.2 | $ 4.5 |
Increases related to current year tax position | 0.3 | 0.1 | |
Increases related to prior year tax positions | 2.5 | 11.5 | 14.2 |
Decreases related to prior year tax positions | (1) | (8.2) | (4.5) |
Settlements | (1.8) | 0 | 0 |
Lapse in statute of limitations | (0.8) | 0 | 0 |
Gross unrecognized tax benefits | $ 16.8 | $ 17.6 | $ 14.2 |
Restructuring and Other (Restru
Restructuring and Other (Restructuring and Other) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other | $ 78 | $ 59.8 | $ 88.7 | |||||
Programming and content charges | $ 35.1 | 35.1 | [1] | 0 | [1] | 0 | [1] | |
Total restructuring and other and programming and content charges | 113.1 | 59.8 | 88.7 | |||||
Severance | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other | [2] | 47.5 | 24.4 | 29.1 | ||||
Severance | Accounts Payable and Accrued Liabilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring costs recorded as a liability | $ 21.2 | 21.2 | ||||||
Transaction and related costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other | [3] | 30.5 | 22.2 | 59.6 | ||||
Arbitration award expense | 5.8 | |||||||
Development expense | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other | [4] | 0 | 13.2 | 0 | ||||
Cash | Severance | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other | [2] | 31.5 | 21.5 | 26.7 | ||||
Accelerated vesting on equity awards | Severance | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and other | [2] | $ 16 | $ 2.9 | $ 2.4 | ||||
[1] | During the fourth quarter of the fiscal year ended March 31, 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million in fiscal 2019, which are included in direct operating expense in the consolidated statement of operations. | |||||||
[2] | Severance costs in the fiscal years ended March 31, 2019, 2018 and 2017 were primarily related to restructuring activities in connection with recent acquisitions, and other cost-saving initiatives. Of the severance costs, $21.2 million is recorded as a liability and is expected to be paid by March 31, 2020. | |||||||
[3] | Transaction and related costs in the fiscal years ended March 31, 2019, 2018 and 2017 reflect transaction, integration and legal costs incurred associated with certain strategic transactions and legal matters. In fiscal 2019, these costs were primarily related to the legal fees associated with the Starz class action lawsuits and other matters and, to a lesser extent, costs related to the acquisition of 3 Arts Entertainment and other strategic transactions. In fiscal 2018, these costs were primarily related to the sale of EPIX (see Note 5), the legal fees associated with the Starz class action lawsuits and other matters, and the integration of Starz. In fiscal 2017, these costs were primarily related to the Starz Merger, the legal fees associated with the Starz class action lawsuits, and an arbitration award of $5.8 million and related legal expenses. | |||||||
[4] | Development expense in the fiscal year ended March 31, 2018 represents write-downs resulting from the restructuring of the Motion Picture business in connection with the acquisition of Good Universe and new management's decisions around the creative direction on certain development projects which were abandoned in the fiscal year ended March 31, 2018. |
Restructuring and Other (Severa
Restructuring and Other (Severance Liability Rollforward) (Details) - Severance liability - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 14.7 | $ 22.2 | $ 0.6 | |
Accruals | 31.5 | 21.5 | 26.7 | |
Severance payments | (25) | (27.9) | (10.6) | |
Other | [1] | 0 | (1.1) | 5.5 |
Ending balance | $ 21.2 | $ 14.7 | $ 22.2 | |
[1] | In the year ended March 31, 2018, other represents noncash reductions related to the settlement of certain liabilities relating to employee compensation with equity instruments. In the year ended March 31, 2017, other represents a severance liability acquired in connection with the Starz Merger. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | Mar. 31, 2019USD ($)customer | Mar. 31, 2018USD ($)customer | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2019USD ($)customer | Mar. 31, 2018USD ($)customer | Mar. 31, 2017USD ($)customer |
Concentration Risk [Line Items] | |||||||||||||
Revenues | $ 913.7 | $ 933.2 | $ 901 | $ 932.7 | $ 1,040.2 | $ 1,142.7 | $ 940.8 | $ 1,005.3 | $ 3,680.5 | $ 4,129.1 | $ 3,201.5 | ||
Customer Concentration Risk | Sales Revenue, Net | |||||||||||||
Concentration Risk [Line Items] | |||||||||||||
Number of customers over 10% threshold | customer | 1 | 1 | 0 | ||||||||||
Revenues | $ 401.9 | $ 413.2 | |||||||||||
Customer Concentration Risk | Accounts Receivable | |||||||||||||
Concentration Risk [Line Items] | |||||||||||||
Number of customers over 10% threshold | customer | 2 | 1 | |||||||||||
Percentage of consolidated gross accounts receivable attributable to customer over threshold | 31.00% | 32.00% | |||||||||||
Accounts receivable, gross | $ 269.9 | $ 419.2 | $ 269.9 | $ 419.2 | $ 269.9 | $ 419.2 |
Segment Information (Segment In
Segment Information (Segment Information) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 913.7 | $ 933.2 | $ 901 | $ 932.7 | $ 1,040.2 | $ 1,142.7 | $ 940.8 | $ 1,005.3 | $ 3,680.5 | $ 4,129.1 | $ 3,201.5 |
Number of reportable business segments | segment | 3 | ||||||||||
Gross contribution | $ 871.4 | 968.4 | 510.1 | ||||||||
Segment general and administration | 246.8 | 254.4 | 182.4 | ||||||||
Segment profit (loss) | 624.6 | 714 | 327.7 | ||||||||
Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment general and administration | 246.8 | 254.4 | 182.4 | ||||||||
Segment profit (loss) | 624.6 | 714 | 327.7 | ||||||||
Reportable Segments | Television Production | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 920.9 | 1,033.2 | 892.8 | ||||||||
Gross contribution | 109.6 | 151.3 | 107.4 | ||||||||
Segment general and administration | 43.5 | 40.3 | 32.1 | ||||||||
Segment profit (loss) | 66.1 | 111 | 75.3 | ||||||||
Reportable Segments | Media Networks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,461 | 1,411.2 | 426.3 | ||||||||
Gross contribution | 534 | 530 | 175.3 | ||||||||
Segment general and administration | 97.7 | 100.9 | 45 | ||||||||
Segment profit (loss) | 436.3 | 429.1 | 130.3 | ||||||||
Reportable Segments | Motion Picture | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,464.4 | 1,822.1 | 1,920.6 | ||||||||
Gross contribution | 234.1 | 292.6 | 237.8 | ||||||||
Segment general and administration | 105.6 | 113.2 | 105.3 | ||||||||
Segment profit (loss) | 128.5 | 179.4 | 132.5 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (165.8) | (137.4) | (38.2) | ||||||||
Gross contribution | (6.3) | (5.5) | (10.4) | ||||||||
Segment profit (loss) | (6.3) | (5.5) | (10.4) | ||||||||
Intersegment Eliminations | Television Production | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (154.8) | (126.4) | (30.7) | ||||||||
Intersegment Eliminations | Media Networks | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (0.1) | (0.3) | (0.9) | ||||||||
Intersegment Eliminations | Motion Picture | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ (10.9) | $ (10.7) | $ (6.6) |
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 | 12 Months Ended | |||||||||||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | [3] | Sep. 30, 2018 | [3] | Jun. 30, 2018 | [3] | Mar. 31, 2018 | [4] | Dec. 31, 2017 | [4] | Sep. 30, 2017 | [4] | Jun. 30, 2017 | [4] | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Company’s total segment profit | $ 624.6 | $ 714 | $ 327.7 | ||||||||||||||||||||
Adjusted depreciation and amortization | [1] | (41.1) | (39.3) | (22.8) | |||||||||||||||||||
Restructuring and other | (78) | (59.8) | (88.7) | ||||||||||||||||||||
Programming and content charges | $ (35.1) | (35.1) | [2] | 0 | [2] | 0 | [2] | ||||||||||||||||
Adjusted share-based compensation expense | (52.1) | (85.6) | (77.1) | ||||||||||||||||||||
Operating income (loss) | $ (34) | [3] | $ 86.8 | $ 39.1 | $ 38.2 | $ 48.4 | $ 80.2 | $ 30.4 | $ 89.7 | 130 | 248.7 | (16.3) | |||||||||||
Interest expense | (198.9) | (193.7) | (115.2) | ||||||||||||||||||||
Shareholder litigation settlements | (114.1) | 0 | 0 | ||||||||||||||||||||
Interest and other income | 12 | 10.4 | 6.4 | ||||||||||||||||||||
Other expense | (4.7) | 0 | 0 | ||||||||||||||||||||
Loss on extinguishment of debt | (1.9) | (35.7) | (40.4) | ||||||||||||||||||||
Gain (loss) on investments | (87.6) | 171.8 | 20.4 | ||||||||||||||||||||
Equity interests income (loss) | (42.9) | (52.8) | 10.7 | ||||||||||||||||||||
Income (loss) before income taxes | (308.1) | 148.7 | (134.4) | ||||||||||||||||||||
Operating segments | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Company’s total segment profit | 624.6 | 714 | 327.7 | ||||||||||||||||||||
Corporate and reconciling items | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Restructuring and other | [5] | (78) | (59.8) | (88.7) | |||||||||||||||||||
Programming and content charges | (35.1) | [6] | 0 | [6] | 0 | [5] | |||||||||||||||||
Adjusted share-based compensation expense | (52.1) | [7] | (85.6) | [7] | (77.1) | [6] | |||||||||||||||||
Purchase accounting and related adjustments | (184.1) | [8] | (170.3) | [8] | (62.8) | [7] | |||||||||||||||||
Corporate | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Corporate general and administrative expenses | $ (104.2) | $ (110.3) | $ (92.6) | ||||||||||||||||||||
[1] | Adjusted depreciation and amortization represents depreciation and amortization as presented on our 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 recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Year Ended March 31, 2019 2018 2017 (Amounts in millions)Depreciation and amortization$163.4 $159.0 $63.1Less: Amount included in purchase accounting and related adjustments(122.3) (119.7) (40.3)Adjusted depreciation and amortization$41.1 $39.3 $22.8 | ||||||||||||||||||||||
[2] | During the fourth quarter of the fiscal year ended March 31, 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million in fiscal 2019, which are included in direct operating expense in the consolidated statement of operations. | ||||||||||||||||||||||
[3] | During fiscal 2019, operating income and net income included the following items:•Restructuring and Other. The first, second, third and fourth quarter of fiscal 2019 included restructuring and other items of $10.5 million, $15.0 million, $16.6 million and $35.9 million, respectively (after tax $7.8 million, $11.5 million, $12.6 million, and $27.3 million, respectively) (see Note 15). •Programming and Content Charges. During the fourth quarter of fiscal 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million (after tax $26.7 million) in connection with recent management changes, and changes to the Company's programming strategy, which are included in direct operating expense in the consolidated statement of operations in the fourth quarter of fiscal 2019 (see Note 15). | ||||||||||||||||||||||
[4] | During fiscal 2018, operating income and net income included the following items: •Restructuring and Other. The first, second, third and fourth quarter of fiscal 2018 included restructuring and other items of $10.9 million, $3.5 million, $21.4 million, and $24.0 million, respectively (after tax $8.9 million, $2.5 million, $14.5 million, and $15.7 million, respectively) (see Note 15). | ||||||||||||||||||||||
[5] | Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 15). | ||||||||||||||||||||||
[6] | During the fourth quarter of the fiscal year ended March 31, 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million in fiscal 2019, which are included in direct operating expense in the consolidated statement of operations. | ||||||||||||||||||||||
[7] | The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2019 2018 2017 (Amounts in millions)Total share-based compensation expense$68.1 $88.5 $79.5Less: Amount included in restructuring and other(i)(16.0) (2.9) (2.4)Adjusted share-based compensation$52.1 $85.6 $77.1(i)Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. | ||||||||||||||||||||||
[8] | Purchase accounting and related adjustments represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Year Ended March 31, 2019 2018 2017 (Amounts in millions)Purchase accounting and related adjustments: Direct operating$18.0 $44.5 $17.5General and administrative expense43.8 6.1 5.0Depreciation and amortization122.3 119.7 40.3 $184.1 $170.3 $62.8 |
Segment Information (Adjusted D
Segment Information (Adjusted Depreciation and Amortization) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Depreciation and amortization | $ 163.4 | $ 159 | $ 63.1 | |
Adjusted depreciation and amortization | [1] | 41.1 | 39.3 | 22.8 |
Purchase accounting and related adjustments | Corporate and reconciling items | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Depreciation and amortization | $ (122.3) | $ (119.7) | $ (40.3) | |
[1] | Adjusted depreciation and amortization represents depreciation and amortization as presented on our 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 recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Year Ended March 31, 2019 2018 2017 (Amounts in millions)Depreciation and amortization$163.4 $159.0 $63.1Less: Amount included in purchase accounting and related adjustments(122.3) (119.7) (40.3)Adjusted depreciation and amortization$41.1 $39.3 $22.8 |
Segment Information (Adjusted S
Segment Information (Adjusted Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Share-based compensation expense | $ 68.1 | $ 88.5 | $ 79.5 | ||||
Adjusted share-based compensation | 52.1 | 85.6 | 77.1 | ||||
Corporate and reconciling items | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Adjusted share-based compensation | 52.1 | [1] | 85.6 | [1] | 77.1 | [2] | |
Restructuring and other | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Share-based compensation expense | 16 | 2.9 | 2.4 | ||||
Restructuring and other | Corporate and reconciling items | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||
Share-based compensation expense related to accelerated vesting on equity awards | [3] | $ 16 | $ 2.9 | $ 2.4 | |||
[1] | The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2019 2018 2017 (Amounts in millions)Total share-based compensation expense$68.1 $88.5 $79.5Less: Amount included in restructuring and other(i)(16.0) (2.9) (2.4)Adjusted share-based compensation$52.1 $85.6 $77.1(i)Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. | ||||||
[2] | During the fourth quarter of the fiscal year ended March 31, 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million in fiscal 2019, which are included in direct operating expense in the consolidated statement of operations. | ||||||
[3] | Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. |
Segment Information (Purchase A
Segment Information (Purchase Accounting and Related Adjustments and Shareholder Litigation Settlements) (Details) - USD ($) $ in Millions | Nov. 08, 2018 | Oct. 09, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Shareholder litigation settlements | $ 114.1 | $ 0 | $ 0 | |||||
Corporate and reconciling items | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Purchase accounting and related adjustments | 184.1 | [1] | 170.3 | [1] | 62.8 | [2] | ||
Direct operating | Corporate and reconciling items | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Purchase accounting and related adjustments | 18 | 44.5 | 17.5 | |||||
General and administrative expense | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Purchase accounting and related adjustments | 43.8 | 6.1 | ||||||
General and administrative expense | Corporate and reconciling items | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Purchase accounting and related adjustments | 43.8 | 6.1 | 5 | |||||
Depreciation and amortization expense | Corporate and reconciling items | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Purchase accounting and related adjustments | 122.3 | $ 119.7 | $ 40.3 | |||||
Fiduciary Litigation | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Shareholder litigation settlements | 54.8 | |||||||
Settlement payment amount | $ 92.5 | 92.5 | ||||||
Insurance reimbursement, amount | 37.8 | |||||||
Appraisal Litigation | ||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||
Shareholder litigation settlements | 59.3 | |||||||
Settlement payment amount | $ 964 | $ 964 | ||||||
[1] | Purchase accounting and related adjustments represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Year Ended March 31, 2019 2018 2017 (Amounts in millions)Purchase accounting and related adjustments: Direct operating$18.0 $44.5 $17.5General and administrative expense43.8 6.1 5.0Depreciation and amortization122.3 119.7 40.3 $184.1 $170.3 $62.8 | |||||||
[2] | The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2019 2018 2017 (Amounts in millions)Total share-based compensation expense$68.1 $88.5 $79.5Less: Amount included in restructuring and other(i)(16.0) (2.9) (2.4)Adjusted share-based compensation$52.1 $85.6 $77.1(i)Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. |
Segment Information (Reconcil_2
Segment Information (Reconciliation of Segment General and Administration to Consolidated) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Segment general and administrative expenses | $ 246.8 | $ 254.4 | $ 182.4 | |||
General and administration | 445.4 | 454.4 | 355.4 | |||
Operating segments | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Segment general and administrative expenses | 246.8 | 254.4 | 182.4 | |||
Corporate | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Corporate general and administrative expenses | 104.2 | 110.3 | 92.6 | |||
Corporate and reconciling items | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Purchase accounting and related adjustments | 184.1 | [1] | 170.3 | [1] | 62.8 | [2] |
General and administrative expense | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Purchase accounting and related adjustments | 43.8 | 6.1 | ||||
General and administrative expense | Corporate and reconciling items | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Share-based compensation expense included in general and administrative expense | 50.6 | 83.6 | 75.4 | |||
Purchase accounting and related adjustments | $ 43.8 | $ 6.1 | $ 5 | |||
[1] | Purchase accounting and related adjustments represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Year Ended March 31, 2019 2018 2017 (Amounts in millions)Purchase accounting and related adjustments: Direct operating$18.0 $44.5 $17.5General and administrative expense43.8 6.1 5.0Depreciation and amortization122.3 119.7 40.3 $184.1 $170.3 $62.8 | |||||
[2] | The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Year Ended March 31, 2019 2018 2017 (Amounts in millions)Total share-based compensation expense$68.1 $88.5 $79.5Less: Amount included in restructuring and other(i)(16.0) (2.9) (2.4)Adjusted share-based compensation$52.1 $85.6 $77.1(i)Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. |
Segment Information (Reconcil_3
Segment Information (Reconciliation of Total Assets By Segment to Consolidated Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | $ 8,408.9 | $ 9,111.2 | $ 8,967.6 | |
Operating segments | Motion Picture | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 1,694.5 | 1,757.4 | ||
Operating segments | Television Production | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 1,394.2 | 1,400.5 | ||
Operating segments | Media Networks | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 4,850.3 | 5,166.5 | ||
Other unallocated assets | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | [1] | $ 469.9 | $ 643.2 | |
[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 and Program Rights by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Acquisition of investment in films and television programs and program rights | $ 1,470 | $ 1,526.4 | $ 1,092 |
Reportable Segments | Motion Picture | |||
Segment Reporting Information [Line Items] | |||
Acquisition of investment in films and television programs and program rights | 388.4 | 462 | 412.7 |
Reportable Segments | Television Production | |||
Segment Reporting Information [Line Items] | |||
Acquisition of investment in films and television programs and program rights | 681.6 | 706.8 | 506.6 |
Reportable Segments | Media Networks | |||
Segment Reporting Information [Line Items] | |||
Acquisition of investment in films and television programs and program rights | 594.3 | 483.5 | 218.6 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Acquisition of investment in films and television programs and program rights | $ (194.3) | $ (125.9) | $ (45.9) |
Segment Information (Revenue an
Segment Information (Revenue and Long-Lived Assets by Geographic Location) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | $ 913.7 | $ 933.2 | $ 901 | $ 932.7 | $ 1,040.2 | $ 1,142.7 | $ 940.8 | $ 1,005.3 | $ 3,680.5 | $ 4,129.1 | $ 3,201.5 | |
Long-Lived Assets | [1] | 1,831.1 | 1,859.1 | 1,831.1 | 1,859.1 | |||||||
Canada | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | 47.9 | 48.3 | 56 | |||||||||
Long-Lived Assets | [1] | 0 | 0 | 0 | 0 | |||||||
United States | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | 3,124.6 | 3,383 | 2,431.9 | |||||||||
Long-Lived Assets | [1] | 1,737.8 | 1,824.5 | 1,737.8 | 1,824.5 | |||||||
Other Foreign | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | 508 | 697.8 | $ 713.6 | |||||||||
Long-Lived Assets | [1] | $ 93.3 | $ 34.6 | $ 93.3 | $ 34.6 | |||||||
[1] | Long-lived assets represents total assets less the following: current assets, investments, long-term receivables, intangible assets, goodwill and deferred tax assets. |
Segment Information (Capital Ex
Segment Information (Capital Expenditures By Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 43.8 | $ 45.9 | $ 25.2 | |
Motion Picture | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 0 | 0 | 0 | |
Television Production | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 3.2 | 1.4 | 1.8 | |
Media Networks | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 30 | 31.5 | 10.6 | |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | [1] | $ 10.6 | $ 13 | $ 12.8 |
[1] | Represents unallocated capital expenditures primarily related to the Company's corporate headquarters. |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) shares in Millions, $ in Millions | Nov. 08, 2018USD ($) | Oct. 09, 2018USD ($) | Aug. 30, 2016 | Mar. 16, 2017plaintiff | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Nov. 05, 2018USD ($) | Dec. 08, 2016USD ($)shares | Mar. 31, 2016USD ($) | |
Other Commitments [Line Items] | |||||||||||
Redeemable noncontrolling interest | $ 127.6 | $ 101.8 | $ 93.8 | $ 90.5 | |||||||
Operating leases, rental expense | $ 27 | 20.7 | 15.6 | ||||||||
Multiemployer benefit plans, funded status | At least 80 percent | ||||||||||
Multiemployer benefit plans, period contributions | $ 56.9 | 70.9 | 59.4 | ||||||||
Loss Contingencies [Line Items] | |||||||||||
Contingencies, putative class action complaints filed, number | 7 | ||||||||||
Shareholder litigation settlements | 114.1 | $ 0 | $ 0 | ||||||||
Petitions for appraisal filed | plaintiff | 5 | ||||||||||
Fiduciary Litigation | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Settlement payment amount | $ 92.5 | 92.5 | |||||||||
Insurance reimbursement, amount | 37.8 | ||||||||||
Shareholder litigation settlements | 54.8 | ||||||||||
Lawsuit for insurance reimbursement, amount | $ 10 | ||||||||||
Appraisal Litigation | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Settlement payment amount | $ 964 | 964 | |||||||||
Shareholder litigation settlements | $ 59.3 | ||||||||||
Value of original merger consideration, dissenting shareholders liability accrued at time of acquisition | $ 797.3 | ||||||||||
Motion Picture Industry Pension Plan | |||||||||||
Other Commitments [Line Items] | |||||||||||
Multiemployer benefit plans, funded percentage | 66.80% | ||||||||||
Screen Actors Guild - Producers Pension Plan | |||||||||||
Other Commitments [Line Items] | |||||||||||
Multiemployer benefit plans, funded percentage | 76.97% | ||||||||||
Starz | Starz Dissenting Shareholders | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Outstanding equity interests (in shares) | shares | 22.5 | ||||||||||
Value of original merger consideration, dissenting shareholders liability accrued at time of acquisition | [1] | $ 797.3 | |||||||||
[1] | In connection with the Starz Merger, Starz received demands for appraisal from purported holders of approximately 22.5 million shares of Starz Series A common stock, and the Company recorded a dissenting shareholders' liability at the time of acquisition for the value of the original merger consideration attributable to the dissenting shareholders. As of March 31, 2018, the Company had not paid the merger consideration for the shares that had demanded appraisal but had recorded a liability of $869.3 million that was included in current dissenting shareholders' liability on the consolidated balance sheet for the estimated value of the merger consideration that would have been payable for such shares, plus interest accrued at the Federal Reserve discount rate plus 5%, compounded quarterly. In November 2018 a settlement agreement was reached and the dissenting shareholders' liability was paid. See Note 17 for further information. |
Commitments and Contingencies_3
Commitments and Contingencies (Future Annual Repayment of Contractual Commitments) (Details) $ in Millions | Mar. 31, 2019USD ($) | |
Contractual Obligations [Line Items] | ||
Operating lease commitments, 2020 | $ 37.2 | |
Operating lease commitments, 2021 | 36.5 | |
Operating lease commitments, 2022 | 35.8 | |
Operating lease commitments, 2023 | 35.5 | |
Operating lease commitments, 2024 | 20.1 | |
Operating lease commitments, thereafter | 52.3 | |
Operating lease commitments, total | 217.4 | |
Total future commitments under contractual obligations, 2020 | 968.9 | [1] |
Total future commitments under contractual obligations, 2021 | 458 | [1] |
Total future commitments under contractual obligations, 2022 | 318.8 | [1] |
Total future commitments under contractual obligations, 2023 | 222.3 | [1] |
Total future commitments under contractual obligations, 2024 | 142.6 | [1] |
Total future commitments under contractual obligations, thereafter | 162.5 | [1] |
Contractual commitments, total | 2,273.1 | [1] |
Film Obligations and Production Loan Commitments | ||
Contractual Obligations [Line Items] | ||
Other commitments, 2020 | 648.6 | [2] |
Other commitments, 2021 | 225.4 | [2] |
Other commitments, 2022 | 108.7 | [2] |
Other commitments, 2023 | 32 | [2] |
Other commitments, 2024 | 8.8 | [2] |
Other commitments, thereafter | 5.6 | [2] |
Other commitments, total | 1,029.1 | [2] |
Interest Payments | ||
Contractual Obligations [Line Items] | ||
Other commitments, 2020 | 154.3 | [3] |
Other commitments, 2021 | 151.6 | [3] |
Other commitments, 2022 | 148.1 | [3] |
Other commitments, 2023 | 144.1 | [3] |
Other commitments, 2024 | 112.8 | [3] |
Other commitments, thereafter | 104.6 | [3] |
Other commitments, total | 815.5 | [3] |
Other Contractual Obligations | ||
Contractual Obligations [Line Items] | ||
Other commitments, 2020 | 128.8 | |
Other commitments, 2021 | 44.5 | |
Other commitments, 2022 | 26.2 | |
Other commitments, 2023 | 10.7 | |
Other commitments, 2024 | 0.9 | |
Other commitments, thereafter | 0 | |
Other commitments, total | $ 211.1 | |
[1] | Not included in the amounts above are $127.6 million of redeemable noncontrolling interest, as future amounts and timing are subject to a number of uncertainties such that we are unable to make sufficiently reliable estimations of future payments (see Note 11). | |
[2] | Film obligation commitments include distribution and marketing commitments, minimum guarantee commitments and program rights commitments. Distribution and marketing commitments represent contractual commitments for future expenditures associated with distribution and marketing of films which we will distribute. The payment dates of these amounts are primarily based on the anticipated release date of the film. Minimum guarantee commitments represent contractual commitments related to the purchase of film rights for pictures to be delivered in the future. Program rights commitments represent contractual commitments under programming license agreements related to films that are not available for exhibition until some future date (see below for further details). Production loan commitments represent amounts committed for future film production and development to be funded through production financing and recorded as a production loan liability when incurred. Future payments under these commitments are based on anticipated delivery or release dates of the related film or contractual due dates of the commitment. The amounts include estimated future interest payments associated with the commitment. | |
[3] | Includes cash interest payments on the Company's debt, excluding the interest payments on the revolving credit facility as future amounts are not fixed or determinable due to fluctuating balances and interest rates. |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019 | Jul. 31, 2018 | Jun. 25, 2018 | May 23, 2018 | Mar. 31, 2018 | |
Derivative [Line Items] | |||||
Remaining maturity of forward foreign exchange contracts, maximum | 12 months | ||||
Interest rate swap cash flow hedge loss estimated to be reclassified into earnings during next 12 months | $ 3.7 | ||||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Notional amount | 1,700 | $ 300 | $ 200 | $ 1,000 | $ 0 |
Maximum | |||||
Derivative [Line Items] | |||||
Foreign currency cash flow hedge loss estimated to be reclassified into earnings during next 12 months | $ 0.1 |
Financial Instruments (Forward
Financial Instruments (Forward Foreign Exchange Contracts) (Details) - Foreign Exchange Contracts £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2019AUD ($) | Mar. 31, 2019MXN ($) | Mar. 31, 2019CAD ($) | Mar. 31, 2019GBP (£) |
British Pound Sterling | |||||
Derivative [Line Items] | |||||
Foreign Currency Amount | £ | £ 5 | ||||
US Dollar Amount | $ 7.2 | ||||
Weighted average exchange rate per $1 USD | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 |
Canadian Dollar | |||||
Derivative [Line Items] | |||||
Foreign Currency Amount | $ 20.7 | ||||
US Dollar Amount | $ 16.2 | ||||
Weighted average exchange rate per $1 USD | 1.28 | 1.28 | 1.28 | 1.28 | 1.28 |
Australia, Dollars | |||||
Derivative [Line Items] | |||||
Foreign Currency Amount | $ 3.5 | ||||
US Dollar Amount | $ 2.7 | ||||
Weighted average exchange rate per $1 USD | 1.27 | 1.27 | 1.27 | 1.27 | 1.27 |
Mexico, Pesos | |||||
Derivative [Line Items] | |||||
Foreign Currency Amount | $ 108.3 | ||||
US Dollar Amount | $ 5.6 | ||||
Weighted average exchange rate per $1 USD | 19.30 | 19.30 | 19.30 | 19.30 | 19.30 |
Financial Instruments (Forwar_2
Financial Instruments (Forward Interest Rate Swap Agreements) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 24, 2018 | Jul. 31, 2018 | Jun. 25, 2018 | May 23, 2018 | Mar. 31, 2018 |
Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 1,700 | $ 300 | $ 200 | $ 1,000 | $ 0 | |
Fixed interest rate | 2.885% | 2.723% | 2.915% | |||
Interest rate swap agreements - fixed rate paid 2.744% | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 50 | |||||
Fixed interest rate | 2.744% | |||||
Interest rate swap agreements - fixed rate paid 2.808% | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 100 | |||||
Fixed interest rate | 2.808% | |||||
Interest rate swap - fixed rate paid 2.728% | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 50 | |||||
Fixed interest rate | 2.728% |
Financial Instruments (Forwar_3
Financial Instruments (Forward Contracts Effect on Statement of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total direct operating expense on consolidated statements of operations | $ 2,028.2 | $ 2,309.6 | $ 1,903.8 | |
Total interest expense on consolidated statements of operations | [1] | 163.6 | 137.2 | 99.7 |
Direct operating | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain recognized in direct operating expense | 0 | 0.1 | 0 | |
Foreign Exchange Contracts | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive income (loss) | 1.1 | (0.2) | (3.5) | |
Gain (loss) reclassified from accumulated other comprehensive income (loss) into direct operating expense | 0 | (1.5) | 5 | |
Interest Rate Swap | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive income (loss) | (71.3) | 0 | 0 | |
Loss reclassified from accumulated other comprehensive income (loss) into interest expense | $ (7.7) | $ 0 | $ 0 | |
[1] | Represents interest expense before interest on dissenting shareholders' liability. |
Financial Instruments (Forwar_4
Financial Instruments (Forward Contracts by Balance Sheet Location) (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | [1] |
Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | $ 1.5 | $ 0.3 | |
Accounts Payable and Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 0.6 | 0.6 | |
Other Non-Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 63.6 | ||
Foreign Exchange Contracts | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | 1.5 | 0.3 | |
Foreign Exchange Contracts | Accounts Payable and Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 0.6 | $ 0.6 | |
Foreign Exchange Contracts | Other Non-Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 0 | ||
Interest Rate Swap | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | 0 | ||
Interest Rate Swap | Accounts Payable and Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 0 | ||
Interest Rate Swap | Other Non-Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | $ 63.6 | ||
[1] | Includes an immaterial amount of forward foreign exchange contracts not designated as hedging instruments as of March 31, 2018. |
Additional Financial Informat_3
Additional Financial Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Additional Financial Information [Abstract] | |||
Restricted cash | $ 0 | $ 0 | |
Provision for doubtful accounts receivable | 5.4 | 7.5 | |
Reserve for returns and allowances on accounts receivable | 56.2 | ||
Interest paid | 146.7 | 119.7 | $ 79.8 |
Income Taxes Paid (Received), Net | 13.5 | $ (20.3) | $ 14.3 |
Trade Accounts Receivable | |||
Transfer of Financial Assets Accounted for as Sales [Line Items] | |||
Receivables monetized, amount derecognized | 473.9 | ||
Cash proceeds from transfer of receivables | 469.2 | ||
Loss recorded | 4.7 | ||
Derecognized accounts receivable fro which the Company continues to service, amount outstanding | $ 350.6 |
Additional Financial Informat_4
Additional Financial Information (Other Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Apr. 01, 2018 | [2] | Mar. 31, 2018 | |||
Other current assets | |||||||
Prepaid expenses and other | $ 150.6 | $ 34.1 | |||||
Product inventory | 19.9 | 20.3 | |||||
Tax credits receivable | 96.7 | 141.4 | |||||
Other current assets | 267.2 | 195.8 | |||||
Other non-current assets | |||||||
Prepaid expenses and other | [1] | 109.2 | 23.8 | ||||
Accounts receivable | 176.1 | [1],[2] | $ 257.7 | 325.2 | [1] | ||
Tax credits receivable | 150.8 | 109.6 | |||||
Other non-current assets | 436.1 | 458.6 | |||||
Unamortized discount on contract assets | 3.9 | ||||||
Unamortized discount on long-term receivable | $ 9.7 | $ 18 | |||||
[1] | Unamortized discounts on contract assets included in prepaid expenses and other were $3.9 million at March 31, 2019, and unamortized discounts on long-term, non-interest bearing receivables were $9.7 million and $18.0 million at March 31, 2019 and 2018, respectively. | ||||||
[2] | Included in accounts receivable within non-current other assets in the consolidated balance sheets. |
Additional Financial Informat_5
Additional Financial Information (Non-Cash Investing and Financing Activities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Non-cash investing activities | |||
Issuance of common shares related to business acquisitions | $ 83.7 | $ 0 | $ 1,327.7 |
Accrued purchase consideration for dissenting shareholders | 0 | 0 | 797.3 |
Non-cash financing activities | |||
Accrued dividends | 0 | 19.1 | 0 |
Starz | |||
Non-cash investing activities | |||
Issuance of Starz share-based payment replacement awards | 0 | 0 | 186.5 |
Conversion of Convertible Senior Subordinated Notes | Convertible Senior Subordinated Notes | |||
Non-cash financing activities | |||
Conversions of convertible senior subordinated notes | $ 0 | $ 0 | $ 41.9 |
Additional Financial Informat_6
Additional Financial Information (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2018 | Apr. 01, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 3,156.9 | $ 2,514.4 | $ 850.3 | ||
Cumulative effect of accounting changes | $ 18.7 | $ 60.8 | |||
Other comprehensive loss | (68) | 6.3 | 27.1 | ||
Ending balance | 2,921.9 | 3,156.9 | 2,514.4 | ||
Foreign currency translation adjustments | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (12.4) | (19.4) | (11.3) | ||
Reclassification adjustment for gain on available-for-sale securities realized in net income | 0 | ||||
Other comprehensive income (loss) | (8.1) | ||||
Cumulative effect of accounting changes | 0 | ||||
Other comprehensive loss | (5.8) | 7 | |||
Ending balance | (18.2) | (12.4) | (19.4) | ||
Net unrealized gain (loss) on available-for-sale securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 2.6 | 3.1 | (35.5) | ||
Reclassification adjustment for gain on available-for-sale securities realized in net income | (17.8) | ||||
Other comprehensive income (loss) | 56.4 | ||||
Cumulative effect of accounting changes | (2.6) | ||||
Other comprehensive loss | 0 | (0.5) | |||
Ending balance | 0 | 2.6 | 3.1 | ||
Net unrealized gain (loss) on cash flow hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 0.1 | 0.3 | 3.7 | ||
Reclassification adjustment for gain on available-for-sale securities realized in net income | 0 | ||||
Other comprehensive income (loss) | (3.4) | ||||
Cumulative effect of accounting changes | 0 | ||||
Other comprehensive loss | (62.2) | (0.2) | |||
Ending balance | (62.1) | 0.1 | 0.3 | ||
Accumulated other comprehensive loss | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (9.7) | (16) | (43.1) | ||
Reclassification adjustment for gain on available-for-sale securities realized in net income | (17.8) | ||||
Other comprehensive income (loss) | 44.9 | ||||
Cumulative effect of accounting changes | $ (2.6) | ||||
Other comprehensive loss | (68) | 6.3 | 27.1 | ||
Ending balance | $ (80.3) | $ (9.7) | $ (16) |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 22, 2017 | Dec. 21, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||||||||||
Schedule of Quarterly Financial Data [Line Items] | ||||||||||||||||||||||||
Revenues | $ 913.7 | $ 933.2 | $ 901 | $ 932.7 | $ 1,040.2 | $ 1,142.7 | $ 940.8 | $ 1,005.3 | $ 3,680.5 | $ 4,129.1 | $ 3,201.5 | |||||||||||||
Operating income (loss) | (34) | [1] | 86.8 | [1] | 39.1 | [1] | 38.2 | [1] | 48.4 | [2] | 80.2 | [2] | 30.4 | [2] | 89.7 | [2] | 130 | 248.7 | (16.3) | |||||
Net income (loss) | (159.1) | [1],[3] | 20.1 | [1],[3] | (149.3) | [1],[3] | (11.4) | [1],[3] | 89.6 | [2],[4] | 191.1 | [2],[4] | 12.9 | [2],[4] | 174.5 | [2],[4] | (299.6) | 468.1 | 14.5 | |||||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (155.2) | $ 22.9 | $ (144.1) | $ (7.9) | $ 91.3 | $ 193 | $ 15.5 | $ 173.8 | $ (284.2) | $ 473.6 | $ 14.8 | |||||||||||||
Per share information attributable to Lions Gate Entertainment Corp. shareholders: | ||||||||||||||||||||||||
Basic net income (loss) per common share (in usd per share) | $ (0.72) | $ 0.11 | $ (0.67) | $ (0.04) | $ 0.43 | $ 0.92 | $ 0.07 | $ 0.84 | $ (1.33) | $ 2.27 | $ 0.09 | |||||||||||||
Diluted net income (loss) per common share (in usd per share) | $ (0.72) | $ 0.10 | $ (0.67) | $ (0.04) | $ 0.41 | $ 0.87 | $ 0.07 | $ 0.80 | $ (1.33) | $ 2.15 | $ 0.09 | |||||||||||||
Restructuring and other | $ 78 | $ 59.8 | $ 88.7 | |||||||||||||||||||||
Programming and content charges | $ 35.1 | 35.1 | [5] | 0 | [5] | 0 | [5] | |||||||||||||||||
Programming and content charges, net of tax | 26.7 | |||||||||||||||||||||||
Loss on extinguishment of debt | 1.9 | 35.7 | 40.4 | |||||||||||||||||||||
Shareholder litigation settlements | 114.1 | 0 | 0 | |||||||||||||||||||||
Gain (loss) on investments | $ (87.6) | $ 171.8 | $ 20.4 | |||||||||||||||||||||
Federal statutory income tax rate | 21.00% | 35.00% | 21.00% | |||||||||||||||||||||
Operating Income (Loss) And Net Income (Loss) | ||||||||||||||||||||||||
Per share information attributable to Lions Gate Entertainment Corp. shareholders: | ||||||||||||||||||||||||
Restructuring and other | 35.9 | $ 16.6 | $ 15 | $ 10.5 | $ 24 | $ 21.4 | $ 3.5 | $ 10.9 | ||||||||||||||||
Restructuring and other items, net of tax | 27.3 | 12.6 | 11.5 | 7.8 | 15.7 | 14.5 | 2.5 | 8.9 | ||||||||||||||||
Net income | ||||||||||||||||||||||||
Per share information attributable to Lions Gate Entertainment Corp. shareholders: | ||||||||||||||||||||||||
Loss on extinguishment of debt | 1.9 | 11.6 | 6.2 | 6.4 | 11.6 | |||||||||||||||||||
Loss on extinguishment of debt, net of tax | 1.4 | 7.8 | 4.6 | $ 4.7 | 8.5 | |||||||||||||||||||
Charge from increases in valuation allowance | 53.7 | |||||||||||||||||||||||
Shareholder litigation settlements | 114.1 | |||||||||||||||||||||||
Shareholder litigation settlements, net of tax | 104.7 | |||||||||||||||||||||||
Gain (loss) on investments | (44.4) | (6.2) | (36.1) | (0.9) | (29.2) | 201 | ||||||||||||||||||
Gain ((loss) on investments, net of tax | $ (33.7) | $ (4.7) | $ (32.4) | $ (0.7) | (20.1) | $ 127 | ||||||||||||||||||
Deferred tax benefit from new tax legislation | $ 165 | |||||||||||||||||||||||
Income Tax Benefit from Internal Capital Restructuring | $ 94.1 | |||||||||||||||||||||||
[1] | During fiscal 2019, operating income and net income included the following items:•Restructuring and Other. The first, second, third and fourth quarter of fiscal 2019 included restructuring and other items of $10.5 million, $15.0 million, $16.6 million and $35.9 million, respectively (after tax $7.8 million, $11.5 million, $12.6 million, and $27.3 million, respectively) (see Note 15). •Programming and Content Charges. During the fourth quarter of fiscal 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million (after tax $26.7 million) in connection with recent management changes, and changes to the Company's programming strategy, which are included in direct operating expense in the consolidated statement of operations in the fourth quarter of fiscal 2019 (see Note 15). | |||||||||||||||||||||||
[2] | During fiscal 2018, operating income and net income included the following items: •Restructuring and Other. The first, second, third and fourth quarter of fiscal 2018 included restructuring and other items of $10.9 million, $3.5 million, $21.4 million, and $24.0 million, respectively (after tax $8.9 million, $2.5 million, $14.5 million, and $15.7 million, respectively) (see Note 15). | |||||||||||||||||||||||
[3] | During fiscal 2019, net income also included the following items:•Shareholder Litigation Settlements. The second quarter of fiscal 2019 included shareholder litigation settlements of $114.1 million (after tax $104.7 million) (see Note 17).•Loss on Investments. The first, second, third and fourth quarter of fiscal 2019 included a loss on investments of $0.9 million, $36.1 million, $6.2 million and $44.4 million, respectively (after tax $0.7 million, $32.4 million, $4.7 million and $33.7 million, respectively) (see Note 5).•Loss on Extinguishment of Debt. The fourth quarter of fiscal 2019 included a loss on extinguishment of debt of $1.9 million (after tax $1.4 million) (see Note 7).•Deferred Tax Valuation Allowance. The fourth quarter of fiscal 2019 included a charge of $53.7 million from an increase in the valuation allowance for certain of the Company's deferred tax assets (see Note 14). | |||||||||||||||||||||||
[4] | During fiscal 2018, net income also included the following items:•Loss on Extinguishment of Debt. The first, second, third and fourth quarter of fiscal 2018 included a loss on extinguishment of debt of $11.6 million, $6.4 million, $6.2 million and $11.6 million, respectively (after tax $8.5 million, $4.7 million, $4.6 million and $7.8 million, respectively) (see Note 7). •Gain (Loss) on Investments. The first and third quarter of fiscal 2018 included a gain on investments of $201.0 million and a loss on investments of $29.2 million, respectively (after tax gain of $127.0 million and loss of $20.1 million, respectively) (see Note 5).•Impact of Corporate Tax Rate Change on Deferred Tax Liabilities. The third quarter of fiscal 2018 included a deferred tax benefit of $165.0 million resulting from the impact of the change in the U.S. federal corporate income tax rate from 35% to 21% under the Tax Cuts and Jobs Act on the Company's beginning net deferred tax liabilities (see Note 14). •Tax Benefit from Internal Capital Restructuring. The fourth quarter of fiscal 2018 included a net tax benefit of $94.1 million primarily from the internal capital restructuring in connection with our third party debt refinancing (see Note 7 to our consolidated financial statements), net of the charge from an increase in its valuation allowance associated with certain deferred tax assets (see Note 14). | |||||||||||||||||||||||
[5] | During the fourth quarter of the fiscal year ended March 31, 2019, in connection with recent management changes, the Company implemented changes to its programming strategy including programming that will no longer be broadcast on Starz networks. As a result, the Company recorded certain programming and content charges of $35.1 million in fiscal 2019, which are included in direct operating expense in the consolidated statement of operations. |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | May 20, 2019 | |
Related Party Transaction [Line Items] | ||||
Investment in equity method investees | $ 48.6 | $ 53.4 | $ 20.6 | |
Director | ||||
Related Party Transaction [Line Items] | ||||
Related party, ownership percentage of entity | 100.00% | |||
Related party transaction, amounts paid | 0.1 | 0 | ||
Equity Method Investees | ||||
Related Party Transaction [Line Items] | ||||
Related party expenses incurred | $ 32.2 | 22 | 10.5 | |
Loans receivable net of equity interest losses included in other assets, noncurrent | 7.3 | 0.2 | ||
Atom Tickets | Equity Method Investees | ||||
Related Party Transaction [Line Items] | ||||
Investment in equity method investees | 10 | 0 | ||
Class A Voting Common Shares | Subsequent Event | Chairman of the Board of Directors | ||||
Related Party Transaction [Line Items] | ||||
Percentage of common stock outstanding held by Mark H. Rachesky | 19.00% | |||
Class B Non-Voting Common Shares | Subsequent Event | Chairman of the Board of Directors | ||||
Related Party Transaction [Line Items] | ||||
Percentage of common stock outstanding held by Mark H. Rachesky | 11.00% | |||
Voting Agreement | Chairman of the Board of Directors | ||||
Related Party Transaction [Line Items] | ||||
Maximum out-of-pocket expenses reimbursable | 1.6 | |||
Related party expenses incurred | 0.5 | |||
Voting Agreement | Director | ||||
Related Party Transaction [Line Items] | ||||
Maximum out-of-pocket expenses reimbursable | 1.6 | |||
Related party expenses incurred | 1.5 | |||
Other | Director | ||||
Related Party Transaction [Line Items] | ||||
Related party expenses incurred | 3.3 | $ 5.6 | $ 1 | |
Maximum | Director | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, amounts paid | 0.1 | |||
Other Non-Current Assets | Equity Method Investees | ||||
Related Party Transaction [Line Items] | ||||
Loans receivable net of equity interest losses included in other assets, noncurrent | $ 7.3 |
Related Party Transactions (Tra
Related Party Transactions (Transactions with Equity Method Investees) (Details) - Equity Method Investees - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Consolidated Balance Sheets | ||||
Accounts receivable | $ 2.2 | $ 6 | ||
Other assets, noncurrent | 7.3 | 0.2 | ||
Total due from related parties | 9.5 | 6.2 | ||
Participations and residuals, current | 9.5 | 6.5 | ||
Participations and residuals, noncurrent | 8.2 | 6 | ||
Deferred revenue, current | 0 | 0.2 | ||
Total due to related parties | 17.7 | 12.7 | ||
Consolidated Statements of Operations | ||||
Revenues | 4.7 | 8.9 | $ 88.8 | |
Direct operating expense | 32.2 | 22 | 10.5 | |
Distribution and marketing expense | 3 | 3.5 | 0.8 | |
General and administrative expense | [1] | 0.7 | (3.7) | (0.7) |
Interest and other income | 0.4 | $ 0 | $ 0 | |
Other Non-Current Assets | ||||
Related Party Transaction [Line Items] | ||||
Notes receivable, related parties, noncurrent | 20.7 | |||
Consolidated Balance Sheets | ||||
Other assets, noncurrent | $ 7.3 | |||
[1] | Amounts primarily represent reimbursement for certain shared services for equity method investees. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Income tax benefit | $ (8.5) | $ (319.4) | $ (148.9) | ||||
Returns and Allowances | |||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Balance at Beginning of Period | 56.2 | 68.6 | 51.8 | ||||
Charged to Costs and Expenses | [1] | 126 | 168.3 | 149.3 | |||
Charged to Other Accounts | 0 | 0 | 24.3 | [2] | |||
Deductions | [3] | (147.2) | (180.7) | (156.8) | |||
Balance at End of Period | 35 | 56.2 | 68.6 | ||||
Provision for Doubtful Accounts | |||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Balance at Beginning of Period | 7.5 | 9 | 6 | ||||
Charged to Costs and Expenses | [1] | (2) | (1) | (0.2) | |||
Charged to Other Accounts | 0 | 0 | 3.2 | [2] | |||
Deductions | (0.1) | [4] | (0.5) | [4] | 0 | ||
Balance at End of Period | 5.4 | 7.5 | 9 | ||||
Deferred Tax Valuation Allowance | |||||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||||||
Balance at Beginning of Period | 73.2 | 5.9 | 10.1 | ||||
Charged to Costs and Expenses | [1] | 313.9 | 67.3 | 0.4 | |||
Charged to Other Accounts | 14 | [5] | 0 | 1.4 | [2] | ||
Deductions | 0 | 0 | (6) | [6] | |||
Balance at End of Period | $ 401.1 | $ 73.2 | 5.9 | ||||
Income tax benefit | (1.4) | ||||||
Other comprehensive income | $ 4.6 | ||||||
[1] | Charges for returns and allowances are charges against revenue. | ||||||
[2] | Opening balances due to the acquisition of Starz on December 8, 2016. | ||||||
[3] | Actual returns and fluctuations in foreign currency exchange rates. | ||||||
[4] | Uncollectible accounts written off and fluctuations in foreign currency exchange rates. | ||||||
[5] | Valuation allowance addition recorded in other comprehensive income and primarily associated with hedging losses. | ||||||
[6] | Valuation allowance reversal, of which $1.4 million was recorded as a tax benefit in the consolidated statement of operations, and $4.6 million was recorded in other comprehensive income. The $4.6 million relates to the gain on Starz investment. |
Uncategorized Items - lgfa-2019
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 60,800,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 18,700,000 |