Cover Page
Cover Page - shares | 3 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Document Information [Line Items] | ||
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 1-14880 | |
Entity Registrant Name | LIONS GATE ENTERTAINMENT CORP /CN/ | |
Entity Central Index Key | 0000929351 | |
Current Fiscal Year End Date | --03-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Incorporation, State or Country Code | A1 | |
Entity Address, Address Line One | 250 Howe Street | |
Entity Address, Address Line Two | 20th Floor | |
Entity Address, City or Town | Vancouver | |
Entity Address, State or Province | BC | |
Entity Address, Postal Zip Code | V6C 3R8 | |
City Area Code | 877 | |
Local Phone Number | 848-3866 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Class A Voting Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Voting Common Shares, no par value per share | |
Entity Common Stock, Shares Outstanding | 82,654,510 | |
Trading Symbol | LGF.A | |
Security Exchange Name | NYSE | |
Class B Non-Voting Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Non-Voting Common Shares, no par value per share | |
Entity Common Stock, Shares Outstanding | 135,065,671 | |
Trading Symbol | LGF.B | |
Security Exchange Name | NYSE | |
Principal Executive Offices | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | 2700 Colorado Avenue | |
Entity Address, City or Town | Santa Monica | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90404 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 196 | $ 184.3 |
Accounts receivable, net | 710.6 | 647.2 |
Program rights | 274.3 | 295.7 |
Other current assets | 178.6 | 267.2 |
Total current assets | 1,359.5 | 1,394.4 |
Investment in films and television programs and program rights, net | 1,619.5 | 1,672 |
Property and equipment, net | 152 | 155.3 |
Investments | 28.6 | 26.2 |
Intangible assets | 1,843.3 | 1,871.6 |
Goodwill | 2,833.5 | 2,833.5 |
Other assets | 600.9 | 436.1 |
Deferred tax assets | 0 | 19.8 |
Total assets | 8,437.3 | 8,408.9 |
LIABILITIES | ||
Accounts payable and accrued liabilities | 539.8 | 531.2 |
Participations and residuals | 488 | 408.5 |
Film obligations and production loans | 469.3 | 512.6 |
Debt - short term portion | 57.4 | 53.6 |
Deferred revenue | 144.8 | 146.5 |
Total current liabilities | 1,699.3 | 1,652.4 |
Debt | 2,837.6 | 2,850.8 |
Participations and residuals | 378.2 | 479.8 |
Film obligations and production loans | 145.6 | 143.1 |
Other liabilities | 282.2 | 114 |
Deferred revenue | 67.6 | 62.8 |
Deferred tax liabilities | 36.9 | 56.5 |
Redeemable noncontrolling interest | 134.9 | 127.6 |
Commitments and contingencies (Note 16) | ||
EQUITY | ||
Retained earnings | 149.2 | 208.7 |
Accumulated other comprehensive loss | (125.3) | (80.3) |
Total Lions Gate Entertainment Corp. shareholders' equity | 2,852 | 2,918.7 |
Noncontrolling interests | 3 | 3.2 |
Total equity | 2,855 | 2,921.9 |
Total liabilities and equity | 8,437.3 | 8,408.9 |
Class A Voting Shares | ||
EQUITY | ||
Common shares | 651.2 | 649.7 |
Class B Non-Voting Shares | ||
EQUITY | ||
Common shares | $ 2,176.9 | $ 2,140.6 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Class A Voting Shares | ||
Common shares, no par value | $ 0 | $ 0 |
Authorized common shares | 500 | 500 |
Common shares, shares issued | 82.6 | 82.5 |
Class B Non-Voting Shares | ||
Common shares, no par value | $ 0 | $ 0 |
Authorized common shares | 500 | 500 |
Common shares, shares issued | 135 | 133.5 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Income Statement [Abstract] | |||
Revenues | $ 963.6 | $ 932.7 | |
Expenses | |||
Direct operating | 568 | 530 | |
Distribution and marketing | 250.5 | 203.5 | |
General and administration | 102.6 | 110.2 | |
Depreciation and amortization | 40.1 | 40.3 | |
Restructuring and other | 5.6 | 10.5 | |
Total expenses | 966.8 | 894.5 | |
Operating income (loss) | (3.2) | 38.2 | |
Interest expense | |||
Interest expense | [1] | (49) | (35.4) |
Interest on dissenting shareholders' liability | [2] | 0 | (15.9) |
Total interest expense | (49) | (51.3) | |
Interest and other income | 2.8 | 3 | |
Other expense | (2.3) | 0 | |
Gain (loss) on investments | 0.1 | (0.9) | |
Equity interests loss | (7.9) | (6.2) | |
Loss before income taxes | (59.5) | (17.2) | |
Income tax benefit | 1.1 | 5.8 | |
Net loss | (58.4) | (11.4) | |
Less: Net loss attributable to noncontrolling interests | 4.4 | 3.5 | |
Net loss attributable to Lions Gate Entertainment Corp. shareholders | $ (54) | $ (7.9) | |
Per share information attributable to Lions Gate Entertainment Corp. shareholders: | |||
Basic net loss per common share (in usd per share) | $ (0.25) | $ (0.04) | |
Diluted net loss per common share (in usd per share) | $ (0.25) | $ (0.04) | |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 216.1 | 211.8 | |
Diluted (in shares) | 216.1 | 211.8 | |
Dividends declared per common share (in usd per share) | $ 0 | $ 0.09 | |
[1] | Represents interest expense before interest on dissenting shareholders' liability. | ||
[2] | Represents interest accrued in connection with the previously outstanding dissenting shareholders' liability associated with the Starz merger. |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (58.4) | $ (11.4) |
Foreign currency translation adjustments, net of tax | 0.9 | (6) |
Net unrealized loss on cash flow hedges, net of tax | (45.9) | (5.2) |
Comprehensive loss | (103.4) | (22.6) |
Less: Comprehensive loss attributable to noncontrolling interests | 4.4 | 3.5 |
Comprehensive loss attributable to Lions Gate Entertainment Corp. shareholders | $ (99) | $ (19.1) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Retained Earnings | Accumulated other comprehensive loss | Lions Gate Entertainment Corp. Shareholders' Equity | Noncontrolling Interests | Class A Voting SharesCommon Shares | Class B Non-Voting SharesCommon Shares | |
Beginning balance, shares at Mar. 31, 2018 | 81.8 | 129.3 | ||||||
Beginning balance at Mar. 31, 2018 | $ 3,156.9 | $ 516.6 | $ (9.7) | $ 3,155.9 | $ 1 | $ 628.7 | $ 2,020.3 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options, shares | 0 | 0 | ||||||
Exercise of stock options | 0.6 | 0.6 | $ 0.3 | $ 0.3 | ||||
Share-based compensation, net, shares | 0.2 | 0.2 | ||||||
Share-based compensation, net | 13.2 | 13.2 | $ 7.1 | $ 6.1 | ||||
Issuance of common shares related to acquisitions and other, shares | 0 | 2.5 | ||||||
Issuance of common shares related to acquisitions and other | 55.8 | 55.8 | $ 0.1 | $ 55.7 | ||||
Noncontrolling interests | 1.4 | 1.4 | ||||||
Dividends declared | (19.2) | (19.2) | (19.2) | |||||
Net loss | (8.9) | (7.9) | (7.9) | (1) | ||||
Other comprehensive loss | (11.2) | 0 | (11.2) | (11.2) | ||||
Redeemable noncontrolling interests adjustments to redemption value | (4.6) | (4.6) | (4.6) | |||||
Ending balance, shares at Jun. 30, 2018 | 82 | 132 | ||||||
Ending balance at Jun. 30, 2018 | 3,202.7 | 506.2 | (23.5) | 3,201.3 | 1.4 | [1] | $ 636.2 | $ 2,082.4 |
Beginning balance, shares at Mar. 31, 2019 | 82.5 | 133.5 | ||||||
Beginning balance at Mar. 31, 2019 | 2,921.9 | 208.7 | (80.3) | 2,918.7 | 3.2 | $ 649.7 | $ 2,140.6 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options, shares | 0 | 0.1 | ||||||
Exercise of stock options | 0.5 | 0.5 | $ 0 | $ 0.5 | ||||
Share-based compensation, net, shares | 0.1 | 0.1 | ||||||
Share-based compensation, net | 9.2 | 9.2 | $ 1.5 | $ 7.7 | ||||
Issuance of common shares related to acquisitions and other, shares | 0 | 1.3 | ||||||
Issuance of common shares related to acquisitions and other | 28.1 | 28.1 | $ 0 | $ 28.1 | ||||
Noncontrolling interests | (0.3) | (0.3) | ||||||
Net loss | (53.9) | (54) | (54) | 0.1 | ||||
Other comprehensive loss | (45) | 0 | (45) | (45) | ||||
Redeemable noncontrolling interests adjustments to redemption value | (5.5) | (5.5) | (5.5) | |||||
Ending balance, shares at Jun. 30, 2019 | 82.6 | 135 | ||||||
Ending balance at Jun. 30, 2019 | $ 2,855 | $ 149.2 | $ (125.3) | $ 2,852 | $ 3 | [1] | $ 651.2 | $ 2,176.9 |
[1] | Excludes redeemable noncontrolling interests, which are reflected in temporary equity (see Note 9 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Activities: | ||
Net loss | $ (58.4) | $ (11.4) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 40.1 | 40.3 |
Amortization of films and television programs and program rights | 436.6 | 385.5 |
Interest on dissenting shareholders' liability | 0 | 15.9 |
Amortization of debt financing costs | 4 | 2.9 |
Non-cash share-based compensation | 9.6 | 15.1 |
Other non-cash items | 8.3 | 3.7 |
Equity interests loss | 7.9 | 6.2 |
Loss (gain) on investments | (0.1) | 0.9 |
Deferred income taxes (benefit) | 0.2 | (13) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net and other assets | 4.1 | 126.3 |
Investment in films and television programs and program rights, net | (364.5) | (358) |
Accounts payable and accrued liabilities | 3 | (70.2) |
Participations and residuals | (21.9) | (29.4) |
Film obligations | (34.8) | (11.3) |
Deferred revenue | 3.2 | 9.8 |
Net Cash Flows Provided By Operating Activities | 37.3 | 113.3 |
Investing Activities: | ||
Investment in equity method investees | (0.9) | (2.8) |
Business acquisitions, net of cash acquired of $5.5 (see Note 2) | 0 | (77.3) |
Increase in loans receivable | 0 | (4) |
Capital expenditures | (8.6) | (9.2) |
Net Cash Flows Used In Investing Activities | (9.5) | (93.3) |
Financing Activities: | ||
Debt - borrowings | 115 | 2,069.5 |
Debt - repayments | (128.2) | (2,139.7) |
Production loans - borrowings | 29.9 | 100.1 |
Production loans - repayments | (34.6) | (90.7) |
Dividends paid | 0 | (19) |
Distributions to noncontrolling interest | (0.3) | (0.8) |
Exercise of stock options | 0.5 | 2.2 |
Tax withholding required on equity awards | (0.3) | (2.5) |
Net Cash Flows Used In Financing Activities | (18) | (80.9) |
Net Change In Cash, Cash Equivalents and Restricted Cash | 9.8 | (60.9) |
Foreign Exchange Effects on Cash, Cash Equivalents and Restricted Cash | 1.9 | (1.6) |
Cash, Cash Equivalents and Restricted Cash - Beginning Of Period | 184.3 | 378.1 |
Cash, Cash Equivalents and Restricted Cash - End Of Period | $ 196 | $ 315.6 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Statement of Cash Flows [Abstract] | |
Cash acquired from business acquisitions | $ 5.5 |
General
General | 3 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Nature of Operations 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 The accompanying unaudited condensed consolidated financial statements include the accounts of Lionsgate and all of its majority-owned and controlled subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to quarterly report on Form 10-Q under the Securities Exchange Act of 1934, as amended, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these unaudited condensed consolidated financial statements. Operating results for the three months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2020. The balance sheet at March 31, 2019 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read together with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2019 . Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs 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. Recent Accounting Pronouncements Accounting Guidance Adopted in Fiscal 2020 Accounting for Leases : In February 2016, the Financial Accounting Standards Board ("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 Company adopted the new standard on April 1, 2019 utilizing the modified retrospective approach, and therefore, results for reporting periods beginning after April 1, 2019 are presented under the new guidance, while prior periods have not been adjusted. Additionally, the Company elected to apply practical expedients allowing it to not reassess (1) whether any expired or existing contracts previously assessed as not containing leases are, or contain, leases; (2) the lease classification for any expired or existing leases; and (3) initial direct costs for any existing leases. The Company also elected to not separate lease components from non-lease components across all lease categories. Instead, each separate lease component and non-lease component are accounted for as a single lease component. Upon adoption of the new guidance, the Company recognized lease liabilities on the Company's consolidated balance sheet for its operating leases of approximately $187.2 million , with a corresponding right-of-use assets balance of $157.4 million , net of existing lease incentives of $29.8 million which were previously classified in accounts payable and accrued liabilities and other liabilities, with no material impact on its consolidated statement of operations. See Note 6 for further information regarding the impact of the adoption of the new guidance on accounting for leases on the Company's financial statements. Accounting Guidance Not Yet Adopted 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. Financial Instruments - Credit Losses: In June 2016, the FASB issued guidance that changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, from the incurred loss methodology under current U.S. GAAP to a new, forward-looking current expected credit loss model that would generally result in the earlier recognition of credit losses. This guidance is effective for the Company’s fiscal year beginning April 1, 2020, with early adoption permitted. Adoption of the standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. The Company is currently evaluating the impact of this standard on its consolidated financial statements, including accounting policies, processes, and systems. |
Acquisitions
Acquisitions | 3 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
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% was paid in the Company's Class B non-voting common shares on the one -year anniversary of closing. The number of shares 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. 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 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 9 ). The acquired finite-lived intangible assets primarily represent customer relationships and are being amortized over a weighted average estimated useful life of 12 years . |
Investment In Films and Televis
Investment In Films and Television Programs and Program Rights | 3 Months Ended |
Jun. 30, 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 June 30, March 31, (Amounts in millions) Motion Picture Segment - Theatrical and Non-Theatrical Films Released, net of accumulated amortization $ 459.6 $ 376.7 Acquired libraries, net of accumulated amortization 1.8 1.8 Completed and not released 18.8 80.6 In progress 173.8 250.4 In development 47.3 45.0 701.3 754.5 Television Production Segment - Direct-to-Television Programs Released, net of accumulated amortization 193.8 186.1 In progress 277.4 295.6 In development 19.4 17.6 490.6 499.3 Media Networks Segment Released program rights, net of accumulated amortization 613.7 591.0 In progress 67.4 106.8 In development 44.1 56.2 725.2 754.0 Intersegment eliminations (23.3 ) (40.1 ) Investment in films and television programs and program rights, net 1,893.8 1,967.7 Less current portion of program rights (274.3 ) (295.7 ) Non-current portion $ 1,619.5 $ 1,672.0 During the three months ended June 30, 2019 and 2018, the Company performed fair value measurements related to films having indicators of impairment. In determining the fair value of its films, the Company employs a DCF methodology that includes cash flow estimates of a film’s ultimate revenue and costs as well as a discount rate. The discount rate utilized in the DCF analysis is based on the Company’s weighted average cost of capital plus a risk premium representing the risk associated with producing a particular film. As the primary determination of fair value is determined using a DCF model, the resulting fair value is considered a Level 3 measurement (see Note 8 ). During the three months ended June 30, 2019 , the Company recorded $1.6 million of fair value film write-downs (2018 - $4.5 million ). |
Investments
Investments | 3 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments, and Investments in Debt and Equity Securities [Abstract] | |
Investments | Investments The Company's investments consisted of the following: June 30, March 31, (Amounts in millions) Investments in equity method investees $ 26.8 $ 24.5 Other investments 1.8 1.7 $ 28.6 $ 26.2 Equity Method Investments: The Company has investments in various equity method investees with ownership percentages ranging from approximately 12% to 49% . These investments include: STARZPLAY Arabia. STARZPLAY Arabia (Playco Holdings Limited) 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. 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 equity method investees owned at June 30, 2019 and March 31, 2019, respectively, is set forth below: June 30, March 31, (Amounts in millions) Current assets $ 120.2 $ 189.8 Non-current assets $ 66.0 $ 55.7 Current liabilities $ 139.7 $ 167.8 Non-current liabilities $ 51.3 $ 46.7 Three Months Ended June 30, 2019 2018 (Amounts in millions) Revenues $ 25.9 $ 22.7 Gross profit $ 10.1 $ 4.3 Net loss $ (16.9 ) $ (18.7 ) 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. Prior to the sale of its interest in Pop, the Company had accounted for such interest as an equity method investment. Pop Financial Information: The following table presents the summarized statements of operations for the three months ended June 30, 2018 for Pop and a reconciliation of the net loss reported by Pop to equity interest loss recorded by the Company: Three Months Ended June 30, 2018 Revenues $ 25.6 Expenses: Cost of services 13.1 Selling, marketing, and general and administration 11.9 Depreciation and amortization 2.0 Operating loss (1.4 ) Interest expense, net 0.5 Accretion of redeemable preferred stock units (1) 21.7 Total interest expense, net 22.2 Net loss $ (23.6 ) Reconciliation of net loss reported by Pop to equity interest loss: Net loss reported by Pop $ (23.6 ) Ownership interest in Pop 50 % The Company's share of net loss (11.8 ) Accretion of dividend and interest income on redeemable preferred stock units (1) 10.9 Elimination of the Company's share of profits on licensing sales to Pop — Realization of the Company’s share of profits on licensing sales to Pop 0.1 Total equity interest loss recorded $ (0.8 ) ___________________ (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 previously held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest loss. |
Debt
Debt | 3 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt of the Company, excluding film obligations and production loans, was as follows as of June 30, 2019 and March 31, 2019 : June 30, March 31, (Amounts in millions) Corporate debt: Revolving Credit Facility $ — $ — Term Loan A (1) 740.6 750.0 Term Loan B (1) 1,104.4 1,107.5 5.875% Senior Notes 520.0 520.0 6.375% Senior Notes 550.0 550.0 Total corporate debt 2,915.0 2,927.5 Finance lease obligations 44.7 45.4 Total debt 2,959.7 2,972.9 Unamortized debt issuance costs, net of fair value adjustment on finance lease obligations (64.7 ) (68.5 ) Total debt, net 2,895.0 2,904.4 Less current portion (57.4 ) (53.6 ) Non-current portion of debt $ 2,837.6 $ 2,850.8 _____________________ (1) To manage interest rate risk on certain of its LIBOR-based floating-rate corporate debt, as of June 30, 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 June 30, 2019 converts the effective rate on our LIBOR-based corporate debt to 4.882% (see Note 17 for further information). 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 June 30, 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 June 30, 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 credit and guarantee agreement dated December 8, 2016, as amended (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 (effective interest rate of 4.15% as of June 30, 2019 , before the impact of interest rate swaps). • Term Loan B: As of March 22, 2018, pursuant to the Amended Credit Agreement, 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 4.65% as of June 30, 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 June 30, 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 Amended 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 by the Company 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 November 1, 2019 (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 by the Company 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 February 1, 2021 (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 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 June 30, 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 June 30, 2019 , the capacity to pay dividends under the Senior Credit Facilities and 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 $58.4 million and retained earnings of $149.2 million were deemed free of restrictions at June 30, 2019 . Interest Expense The table below sets forth the composition of the Company’s interest expense for the three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 (Amounts in millions) Interest expense Cash interest $ 45.2 $ 32.5 Amortization of debt financing costs 3.8 2.9 49.0 35.4 Interest on dissenting shareholders' liability (1) — 15.9 Total interest expense $ 49.0 $ 51.3 ___________________ (1) |
Leases
Leases | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases primarily for office space, studio facilities, and other equipment. The Company also has finance leases for a satellite transponder and the Starz commercial building. The Company's leases have remaining lease terms of up to approximately 10 years , and the Starz commercial building lease includes four successive five-year renewal periods at the Company's option. Most leases are not cancelable prior to their expiration. The expected term of the lease used for computing the lease liability and right-of-use ("ROU") asset and determining the classification of the lease as operating or financing may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company determines if an arrangement is a lease at its inception. Operating Leases. Operating lease ROU assets, representing the Company's right to use the underlying asset for the lease term, are included in the "Other assets - non-current" line item in the Company's unaudited condensed consolidated balance sheet. Operating lease liabilities, representing the present value of the Company's obligation to make payments over the lease term, are included in the “Accounts payable and accrued liabilities” and “Other liabilities - non-current” line items in the Company's June 30, 2019 unaudited condensed consolidated balance sheet. The Company has entered into various short-term operating leases which have an initial term of 12 months or less. These short-term leases are not recorded on the Company's unaudited condensed consolidated balance sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Finance Leases. Finance lease ROU assets are included in "Property and equipment, net" and finance lease liabilities are included in the “Debt - short-term portion” and “Debt - non-current” line items in the Company's June 30, 2019 unaudited condensed consolidated balance sheet. For finance leases, the Company recognizes interest expense on lease liabilities using the effective interest method and amortization of ROU assets on a straight-line basis over the lease term. The present value of the lease payments is calculated using a rate implicit in the lease, when readily determinable. However, as most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate to determine the present value of the lease payments for the majority of its leases. Variable lease payments that are based on an index or rate are included in the measurement of ROU assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in the measurement of ROU assets and lease liabilities. The components of lease cost were as follows: Three Months Ended June 30, 2019 (Amounts in millions) Operating lease cost (1) $ 8.4 Finance lease cost Amortization of right-of-use assets 0.8 Interest on lease liabilities 0.9 Total finance lease cost 1.7 Short-term lease cost (1)(2) 30.2 Total lease cost $ 40.3 ___________________ (1) Amounts include costs capitalized during the period for leased assets used in the production of film and television programs. (2) Short-term lease cost primarily consists of leases of facilities and equipment associated with film and television productions. Supplemental cash flow information related to leases was as follows: Three Months Ended June 30, 2019 (Amounts in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9.0 Financing cash flows from financing leases 0.7 Supplemental balance sheet information related to leases was as follows: Category Balance Sheet June 30, Operating Leases (Amounts in millions) Right-of-use assets Other assets - non-current $ 151.5 Lease liabilities (current) Accounts payable and accrued liabilities $ 29.0 Lease liabilities (non-current) Other liabilities - non-current 150.9 $ 179.9 Finance Leases Right-of-use assets Property and equipment, net $ 49.5 Lease liabilities (current) Debt - short-term portion $ 3.0 Lease liabilities (non-current) Debt - non-current 41.7 $ 44.7 June 30, Weighted average remaining lease term (in years): Operating leases 6.7 Finance leases 21.9 Weighted average discount rate: Operating leases 4.11 % Finance leases 6.42 % The expected future payments relating to the Company's operating and finance lease liabilities at June 30, 2019 are as follows: Operating Leases Finance Leases (Amounts in millions) Nine months ending March 31, 2020 $ 26.9 $ 4.8 Year ending March 31, 2021 35.2 6.2 2022 32.5 3.9 2023 32.1 3.9 2024 20.1 3.9 Thereafter 60.2 73.5 Total lease payments 207.0 96.2 Less imputed interest (27.1 ) (51.5 ) Total $ 179.9 $ 44.7 |
Leases | Leases The Company has operating leases primarily for office space, studio facilities, and other equipment. The Company also has finance leases for a satellite transponder and the Starz commercial building. The Company's leases have remaining lease terms of up to approximately 10 years , and the Starz commercial building lease includes four successive five-year renewal periods at the Company's option. Most leases are not cancelable prior to their expiration. The expected term of the lease used for computing the lease liability and right-of-use ("ROU") asset and determining the classification of the lease as operating or financing may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company determines if an arrangement is a lease at its inception. Operating Leases. Operating lease ROU assets, representing the Company's right to use the underlying asset for the lease term, are included in the "Other assets - non-current" line item in the Company's unaudited condensed consolidated balance sheet. Operating lease liabilities, representing the present value of the Company's obligation to make payments over the lease term, are included in the “Accounts payable and accrued liabilities” and “Other liabilities - non-current” line items in the Company's June 30, 2019 unaudited condensed consolidated balance sheet. The Company has entered into various short-term operating leases which have an initial term of 12 months or less. These short-term leases are not recorded on the Company's unaudited condensed consolidated balance sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Finance Leases. Finance lease ROU assets are included in "Property and equipment, net" and finance lease liabilities are included in the “Debt - short-term portion” and “Debt - non-current” line items in the Company's June 30, 2019 unaudited condensed consolidated balance sheet. For finance leases, the Company recognizes interest expense on lease liabilities using the effective interest method and amortization of ROU assets on a straight-line basis over the lease term. The present value of the lease payments is calculated using a rate implicit in the lease, when readily determinable. However, as most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate to determine the present value of the lease payments for the majority of its leases. Variable lease payments that are based on an index or rate are included in the measurement of ROU assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in the measurement of ROU assets and lease liabilities. The components of lease cost were as follows: Three Months Ended June 30, 2019 (Amounts in millions) Operating lease cost (1) $ 8.4 Finance lease cost Amortization of right-of-use assets 0.8 Interest on lease liabilities 0.9 Total finance lease cost 1.7 Short-term lease cost (1)(2) 30.2 Total lease cost $ 40.3 ___________________ (1) Amounts include costs capitalized during the period for leased assets used in the production of film and television programs. (2) Short-term lease cost primarily consists of leases of facilities and equipment associated with film and television productions. Supplemental cash flow information related to leases was as follows: Three Months Ended June 30, 2019 (Amounts in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9.0 Financing cash flows from financing leases 0.7 Supplemental balance sheet information related to leases was as follows: Category Balance Sheet June 30, Operating Leases (Amounts in millions) Right-of-use assets Other assets - non-current $ 151.5 Lease liabilities (current) Accounts payable and accrued liabilities $ 29.0 Lease liabilities (non-current) Other liabilities - non-current 150.9 $ 179.9 Finance Leases Right-of-use assets Property and equipment, net $ 49.5 Lease liabilities (current) Debt - short-term portion $ 3.0 Lease liabilities (non-current) Debt - non-current 41.7 $ 44.7 June 30, Weighted average remaining lease term (in years): Operating leases 6.7 Finance leases 21.9 Weighted average discount rate: Operating leases 4.11 % Finance leases 6.42 % The expected future payments relating to the Company's operating and finance lease liabilities at June 30, 2019 are as follows: Operating Leases Finance Leases (Amounts in millions) Nine months ending March 31, 2020 $ 26.9 $ 4.8 Year ending March 31, 2021 35.2 6.2 2022 32.5 3.9 2023 32.1 3.9 2024 20.1 3.9 Thereafter 60.2 73.5 Total lease payments 207.0 96.2 Less imputed interest (27.1 ) (51.5 ) Total $ 179.9 $ 44.7 |
Film Obligations and Production
Film Obligations and Production Loans | 3 Months Ended |
Jun. 30, 2019 | |
Film Obligations And Production Loans [Abstract] | |
Film Obligations and Production Loans | Film Obligations and Production Loans June 30, March 31, (Amounts in millions) Film obligations $ 234.4 $ 270.3 Production loans 381.4 386.4 Total film obligations and production loans 615.8 656.7 Unamortized debt issuance costs (0.9 ) (1.0 ) Total film obligations and production loans, net 614.9 655.7 Less current portion (469.3 ) (512.6 ) Total non-current film obligations and production loans $ 145.6 $ 143.1 Film Obligations Film obligations include minimum guarantees and accrued licensed program rights obligations, which represent amounts payable for film rights that the Company has acquired and certain theatrical marketing obligations for amounts received from third parties that are contractually committed for theatrical marketing expenditures associated with specific titles. Production Loans Production loans represent individual loans for the production of film and television programs that the Company produces. The majority of production loans have contractual repayment dates either at or near the expected completion date, with the exception of certain loans containing repayment dates on a longer term basis, and incur interest at rates ranging from 4.42% to 5.14% . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 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 June 30, 2019 and March 31, 2019 : June 30, 2019 March 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in millions) Available-for-sale equity securities $ 1.3 $ — $ 1.3 $ 1.2 $ — $ 1.2 Forward exchange contracts (see Note 17) — 1.4 1.4 — 1.5 1.5 Liabilities: Forward exchange contracts (see Note 17) — (0.5 ) (0.5 ) — (0.6 ) (0.6 ) Interest rate swaps (see Note 17) — (109.5 ) (109.5 ) — (63.6 ) (63.6 ) $ 1.3 $ (108.6 ) $ (107.3 ) $ 1.2 $ (62.7 ) $ (61.5 ) The following table sets forth the carrying values and fair values of the Company’s outstanding debt at June 30, 2019 and March 31, 2019 : June 30, 2019 March 31, 2019 (Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value (Level 2) (Level 2) Liabilities (2) : Term Loan A $ 725.0 $ 732.3 $ 733.3 $ 742.5 Term Loan B 1,088.7 1,094.7 1,091.2 1,088.1 5.875% Senior Notes 503.4 533.0 502.8 534.3 6.375% Senior Notes 542.0 574.8 541.4 576.1 Production loans 380.5 381.4 385.4 386.4 ________________ (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, other liabilities, borrowings under the Revolving Credit Facility, if any, and finance lease obligations. The carrying values of these financial instruments approximated the fair values at June 30, 2019 and March 31, 2019 . |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Redeemable Noncontrolling Interests The table below presents the reconciliation of changes in redeemable noncontrolling interests: Three Months Ended June 30, 2019 2018 (Amounts in millions) Beginning balance $ 127.6 $ 101.8 Initial fair value of redeemable noncontrolling interest of 3 Arts Entertainment — 15.8 Net loss attributable to redeemable noncontrolling interests (4.5 ) (2.5 ) Noncontrolling interests discount accretion 6.4 3.0 Adjustments to redemption value 5.5 4.6 Cash distributions (0.1 ) (0.8 ) Ending balance $ 134.9 $ 121.9 Redeemable noncontrolling interests (included in temporary equity on the unaudited condensed consolidated balance sheets) relate to the November 12, 2015 acquisition of a controlling interest in Pilgrim Media Group and the May 29, 2018 acquisition of a controlling interest in 3 Arts Entertainment. 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. Other Noncontrolling Interests |
Revenue
Revenue | 3 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue 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 by Segment, Market or Product Line The table below presents revenues by segment, market or product line for the three months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 (Amounts in millions) Revenue by Type: Motion Picture Theatrical $ 121.8 $ 50.3 Home Entertainment Digital Media 83.3 86.2 Packaged Media 56.4 76.5 Total Home Entertainment 139.7 162.7 Television 64.8 61.8 International 67.4 67.3 Other 4.1 23.2 Total Motion Picture revenues 397.8 365.3 Television Production Television 196.8 217.7 International 56.7 37.0 Home Entertainment Digital Media 5.9 16.3 Packaged Media 1.4 1.8 Total Home Entertainment 7.3 18.1 Other 19.0 6.6 Total Television Production revenues 279.8 279.4 Media Networks - Programming Revenues Domestic (1) 369.3 354.8 International 3.1 0.1 372.4 354.9 Intersegment eliminations (86.4 ) (66.9 ) Total revenues $ 963.6 $ 932.7 ___________________ (1) Media Networks domestic revenues include revenue from the Company's Streaming Services product line of $6.4 million and $3.7 million , in the three months ended June 30, 2019 and 2018, 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 June 30, 2019 are as follows: Rest of Year Ending March 31, 2020 Year Ending March 31, 2021 2022 Thereafter Total (Amounts in millions) Remaining Performance Obligations $ 1,377.8 $ 126.2 $ 66.3 $ 121.6 $ 1,691.9 The above table does not include estimates of variable consideration for transactions involving sales or usage-based royalties in exchange for licenses of intellectual property. The revenues included in the above table include all fixed fee contracts regardless of duration. Revenues of $64.9 million , including variable and fixed fee arrangements, were recognized during the three months ended June 30, 2019 , respectively, from performance obligations satisfied prior to March 31, 2019 . 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. At June 30, 2019 and March 31, 2019 accounts receivable, contract assets and deferred revenue are as follows: June 30, March 31, Addition (Reduction) (Amounts in millions) Accounts receivable, net - current $ 710.6 $ 647.2 $ 63.4 Accounts receivable, net - non-current (1) 232.6 176.1 56.5 Contract asset - current (2) 17.4 97.3 (79.9 ) Contract asset - non-current (3) 13.2 72.1 (58.9 ) Deferred revenue - current 144.8 146.5 (1.7 ) Deferred revenue - non-current 67.6 62.8 4.8 __________________ (1) Included in accounts receivable within non-current other assets in the unaudited condensed consolidated balance sheets. (2) Included in prepaid expenses and other within other current assets in the unaudited condensed consolidated balance sheets. (3) Included in prepaid expenses and other within non-current other assets in the unaudited condensed 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 $67.3 million were recognized during the three months ended June 30, 2019 , related to the balance of deferred revenue at March 31, 2019. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is calculated based on the weighted average common shares outstanding for the period. Basic and diluted net loss per share for the three months ended June 30, 2019 and 2018 is presented below: Three Months Ended June 30, 2019 2018 (Amounts in millions, except per share amounts) Basic and Diluted Net Loss Per Common Share: Numerator: Net loss attributable to Lions Gate Entertainment Corp. shareholders $ (54.0 ) $ (7.9 ) Denominator: Weighted average common shares outstanding 216.1 211.8 Basic and diluted net loss per common share $ (0.25 ) $ (0.04 ) As a result of the net loss in the three months ended June 30, 2019 and 2018, the dilutive effect of the 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 three months ended June 30, 2019 totaled 3.6 million (2018 - 7.9 million ). Additionally, for the three months ended June 30, 2019 and 2018 , the outstanding common shares issuable presented below were excluded from diluted net loss per common share because their inclusion would have had an anti-dilutive effect regardless of net income or loss in the period. Three Months Ended June 30, 2019 2018 (Amounts in millions) Anti-dilutive shares issuable Share purchase options 29.3 18.6 Restricted share units 1.4 0.6 Other issuable shares 2.1 1.1 Total weighted average anti-dilutive shares issuable excluded from diluted net loss per common share 32.8 20.3 |
Capital Stock
Capital Stock | 3 Months Ended |
Jun. 30, 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 June 30, 2019 and March 31, 2019 . The table below outlines common shares reserved for future issuance: June 30, March 31, (Amounts in millions) Stock options and equity-settled SARs outstanding 35.6 34.6 Restricted stock and restricted share units — unvested 2.5 2.0 Common shares available for future issuance 7.0 6.7 Shares reserved for future issuance 45.1 43.3 (b) Share-based Compensation The Company recognized the following share-based compensation expense during the three months ended June 30, 2019 , and 2018 : Three Months Ended June 30, 2019 2018 (Amounts in millions) Compensation Expense: Stock options $ 3.6 $ 6.8 Restricted share units and other share-based compensation 4.8 6.7 Share appreciation rights 0.8 1.6 9.2 15.1 Impact of accelerated vesting on equity awards (1) 0.3 — Total share-based compensation expense $ 9.5 $ 15.1 Tax impact (2) (2.1 ) (3.7 ) Reduction in net income $ 7.4 $ 11.4 ___________________ (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: Three Months Ended June 30, 2019 2018 (Amounts in millions) Share-Based Compensation Expense: Direct operating $ 0.1 $ 0.2 Distribution and marketing 0.1 — General and administration 9.0 14.9 Restructuring and other 0.3 — $ 9.5 $ 15.1 The following table sets forth the stock option, equity-settled SARs, cash-settled SARs, restricted stock and restricted share unit activity during the three months ended June 30, 2019 : Stock Options, Equity-settled and Cash-settled SARs Restricted Stock and Restricted Share Units Class A Voting Shares Class B Non-Voting Shares Class A Voting Shares Class B Non-Voting Shares Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Grant-Date Fair Value Number of Shares Weighted-Average Grant-Date Fair Value Outstanding at March 31, 2019 8.4 $26.70 26.2 $20.72 0.1 $25.68 1.9 $24.24 Granted — $0.00 2.2 (2) $14.84 — $0.00 0.8 $14.56 Options exercised or restricted stock or RSUs vested — $0.00 (0.1 ) $10.50 — (1) $28.40 (0.1 ) $24.46 Forfeited or expired (0.4 ) $27.33 (0.7 ) $25.13 — (1) $18.90 (0.1 ) $25.99 Outstanding at June 30, 2019 8.0 $26.67 27.6 $20.16 — (1) $24.34 2.5 $21.25 __________________ (1) Represents less than 0.1 million shares. (2) During the three months ended June 30, 2019 , the Company granted 2.0 million cash-settled share-appreciation rights ("CSARs"). The CSARs are revalued each reporting period until settlement using a closed-form option pricing model (Black Scholes). (c) Other In connection with an amendment of an affiliation agreement with a customer and effective upon the close of the Starz merger (December 8, 2016), Lionsgate 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 | 3 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the quarters ended June 30, 2019 and 2018, the Company determined that a small change in its estimated pretax results for the years ending March 31, 2020 and 2019, respectively, would create a large change in its expected annual effective rate. Accordingly, it was determined that a reliable estimate of the expected annual effective tax rate could not be made. As a result, the Company computed its tax benefit (provision) using the cut-off method, which reflects the actual taxes attributable to year-to-date earnings or losses. The Company's income tax benefit (provision) 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 changes in the valuation allowance against the Company's deferred tax assets. |
Restructuring and Other
Restructuring and Other | 3 Months Ended |
Jun. 30, 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 three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 (Amounts in millions) Restructuring and other: Severance (1) Cash $ 3.8 $ 0.8 Accelerated vesting on equity awards (see Note 12) 0.3 — Total severance costs 4.1 0.8 Transaction and related costs (2) 1.5 9.7 $ 5.6 $ 10.5 _______________________ (1) Severance costs in the three months ended June 30, 2019 and 2018 were primarily related to restructuring activities in connection with recent acquisitions, and other cost-saving initiatives. As of June 30, 2019 , the remaining severance liability was approximately $12.7 million , which is expected to be paid in the next 12 months. (2) Transaction and related costs in the three months ended June 30, 2019 and 2018 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters. In the three months ended June 30, 2018 , these costs were primarily related to the legal fees associated with the Starz class action lawsuits and other matters, and the acquisition of 3 Arts Entertainment. Changes in the restructuring and other severance liability were as follows for the three months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 (Amounts in millions) Severance liability Beginning balance $ 21.2 $ 14.7 Accruals 3.8 0.8 Severance payments (12.3 ) (7.2 ) Ending balance $ 12.7 $ 8.3 |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 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: Three Months Ended June 30, 2019 2018 (Amounts in millions) Segment revenues Motion Picture $ 397.8 $ 365.3 Television Production 279.8 279.4 Media Networks 372.4 354.9 Intersegment eliminations (86.4 ) (66.9 ) $ 963.6 $ 932.7 Intersegment revenues Motion Picture $ 4.4 $ 2.1 Television Production 81.4 64.8 Media Networks 0.6 — $ 86.4 $ 66.9 Gross contribution Motion Picture $ 32.9 $ 78.5 Television Production 34.7 26.0 Media Networks 80.9 114.1 Intersegment eliminations (1.7 ) (11.2 ) $ 146.8 $ 207.4 Segment general and administration Motion Picture $ 25.3 $ 26.9 Television Production 9.7 10.4 Media Networks 20.3 25.6 $ 55.3 $ 62.9 Segment profit Motion Picture $ 7.6 $ 51.6 Television Production 25.0 15.6 Media Networks 60.6 88.5 Intersegment eliminations (1.7 ) (11.2 ) $ 91.5 $ 144.5 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, when applicable, 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 loss before income taxes is as follows: Three Months Ended June 30, 2019 2018 (Amounts in millions) Company’s total segment profit $ 91.5 $ 144.5 Corporate general and administrative expenses (24.2 ) (27.6 ) Adjusted depreciation and amortization (1) (10.7 ) (10.3 ) Restructuring and other (2) (5.6 ) (10.5 ) Adjusted share-based compensation expense (3) (9.2 ) (15.1 ) Purchase accounting and related adjustments (4) (45.0 ) (42.8 ) Operating income (loss) (3.2 ) 38.2 Interest expense (49.0 ) (51.3 ) Interest and other income 2.8 3.0 Other expense (2.3 ) — Gain (loss) on investments 0.1 (0.9 ) Equity interests loss (7.9 ) (6.2 ) Loss before income taxes $ (59.5 ) $ (17.2 ) ___________________ (1) Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Three Months Ended June 30, 2019 2018 (Amounts in millions) Depreciation and amortization $ 40.1 $ 40.3 Less: Amount included in purchase accounting and related adjustments (29.4 ) (30.0 ) Adjusted depreciation and amortization $ 10.7 $ 10.3 (2) Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 14 ). (3) The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Three Months Ended June 30, 2019 2018 (Amounts in millions) Total share-based compensation expense $ 9.5 $ 15.1 Less: Amount included in restructuring and other (i) (0.3 ) — Adjusted share-based compensation $ 9.2 $ 15.1 (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. (4) Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended June 30, 2019 2018 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 1.5 $ 8.0 General and administrative expense 14.1 4.8 Depreciation and amortization 29.4 30.0 $ 45.0 $ 42.8 See Note 10 for revenues by media or product line as broken down by segment for the three months ended June 30, 2019 and 2018 . The following table reconciles segment general and administration expense to the Company's total consolidated general and administration expense: Three Months Ended June 30, 2019 2018 (Amounts in millions) General and administration Segment general and administrative expenses $ 55.3 $ 62.9 Corporate general and administrative expenses 24.2 27.6 Share-based compensation expense included in general and administrative expense 9.0 14.9 Purchase accounting and related adjustments 14.1 4.8 $ 102.6 $ 110.2 The reconciliation of total segment assets to the Company’s total consolidated assets is as follows: June 30, March 31, (Amounts in millions) Assets Motion Picture $ 1,648.4 $ 1,694.5 Television Production 1,593.2 1,394.2 Media Networks 4,712.2 4,850.3 Other unallocated assets (1) 483.5 469.9 $ 8,437.3 $ 8,408.9 _____________________ (1) Other unallocated assets primarily consist of cash, other assets and investments. |
Contingencies
Contingencies | 3 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies From time to time, the Company is involved in certain claims and legal proceedings arising in the normal course of business. 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. Insurance 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 provided 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 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. 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. On November 5, 2018, an insurer that entered into an agreement and contributed $10.0 million |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 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 June 30, 2019 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 9 months from June 30, 2019 ): June 30, 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$21.1 in exchange for $16.5 C$1.28 Australian Dollar A$3.5 in exchange for $2.8 A$1.25 Mexican Peso $109.7 in exchange for $5.7 $19.27 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 June 30, 2019 and March 31, 2019, the total notional amount of the Company’s pay-fixed interest rate swaps was $1.7 billion and $1.7 billion , respectively. The major terms of the Company's interest rate swap agreements as of June 30, 2019 are as follows (all related to the Company's LIBOR-based debt, see Note 5 ): 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 three months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in accumulated other comprehensive income (loss) $ — $ — Gain reclassified from accumulated other comprehensive income (loss) into direct operating expense $ 1.1 $ — Interest rate swap agreements Loss recognized in accumulated other comprehensive income (loss) $ (45.9 ) $ (6.8 ) Loss reclassified from accumulated other comprehensive income (loss) into interest expense (1.8 ) (0.9 ) Derivatives not designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in direct operating expense $ — $ (0.7 ) Total direct operating expense on consolidated statements of operations $ 568.0 $ 530.0 Total interest expense on consolidated statements of operations (1) $ 49.0 $ 35.4 ________________ (1) Represents interest expense before interest on dissenting shareholders' liability. The Company classifies its forward foreign exchange contracts and interest rate swap agreements within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments (see Note 8 ). As of June 30, 2019 and March 31, 2019 , the Company had the following amounts recorded in the accompanying consolidated balance sheets related to the Company's use of derivatives: June 30, 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 $ 1.4 $ 0.5 $ — Interest rate swap agreements — — 109.5 Fair value of derivatives $ 1.4 $ 0.5 $ 109.5 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 As of June 30, 2019 , based on the current release schedule, the Company estimates less than $0.1 million of gains 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 June 30, 2020. As of June 30, 2019 , the Company estimates approximately $17.3 million |
Additional Financial Informatio
Additional Financial Information | 3 Months Ended |
Jun. 30, 2019 | |
Additional Financial Information [Abstract] | |
Additional Financial Information | Additional Financial Information The following tables present supplemental information related to the unaudited condensed consolidated financial statements. Other Assets The composition of the Company’s other assets is as follows as of June 30, 2019 and March 31, 2019: June 30, March 31, (Amounts in millions) Other current assets Prepaid expenses and other $ 68.3 $ 150.6 Product inventory 18.6 19.9 Tax credits receivable 91.7 96.7 $ 178.6 $ 267.2 Other non-current assets Prepaid expenses and other $ 43.8 $ 109.2 Accounts receivable 232.6 176.1 Tax credits receivable 173.0 150.8 Operating lease right-of-use assets 151.5 — $ 600.9 $ 436.1 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 three months ended June 30, 2019, the Company monetized trade accounts receivable with a carrying value of $374.5 million with third-party purchasers, which were derecognized from the Company's unaudited condensed consolidated balance sheet, in exchange for net cash proceeds of $372.2 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 $2.3 million , which is included in the "other expense" line item on the unaudited condensed 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 three months ended June 30, 2019. At June 30, 2019, the outstanding amount of receivables derecognized from the Company's unaudited condensed consolidated balance sheets, but which the Company continues to service, was $394.0 million (March 31, 2019 - $350.6 million ). 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 loss on cash flow hedges Total (Amounts in millions) March 31, 2019 $ (18.2 ) $ (62.1 ) $ (80.3 ) Other comprehensive loss 0.9 (45.9 ) (45.0 ) June 30, 2019 $ (17.3 ) $ (108.0 ) $ (125.3 ) Cash, Cash Equivalents and Restricted Cash There was no restricted cash in the unaudited condensed consolidated balance sheets as of June 30, 2019 or March 31, 2019. Supplemental Cash Flow Information The supplemental schedule of non-cash investing activities is presented below: Three Months Ended June 30, 2019 2018 (Amounts in millions) Non-cash investing activities: Common shares related to business acquisitions (see Note 2) $ 28.1 $ 83.7 Non-cash financing activities: Accrued dividends $ — $ 19.2 |
General (Policies)
General (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lionsgate and all of its majority-owned and controlled subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to quarterly report on Form 10-Q under the Securities Exchange Act of 1934, as amended, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these unaudited condensed consolidated financial statements. Operating results for the three months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2020. The balance sheet at March 31, 2019 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read together with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2019 . Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Guidance Adopted in Fiscal 2020 Accounting for Leases : In February 2016, the Financial Accounting Standards Board ("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 Company adopted the new standard on April 1, 2019 utilizing the modified retrospective approach, and therefore, results for reporting periods beginning after April 1, 2019 are presented under the new guidance, while prior periods have not been adjusted. Additionally, the Company elected to apply practical expedients allowing it to not reassess (1) whether any expired or existing contracts previously assessed as not containing leases are, or contain, leases; (2) the lease classification for any expired or existing leases; and (3) initial direct costs for any existing leases. The Company also elected to not separate lease components from non-lease components across all lease categories. Instead, each separate lease component and non-lease component are accounted for as a single lease component. Upon adoption of the new guidance, the Company recognized lease liabilities on the Company's consolidated balance sheet for its operating leases of approximately $187.2 million , with a corresponding right-of-use assets balance of $157.4 million , net of existing lease incentives of $29.8 million which were previously classified in accounts payable and accrued liabilities and other liabilities, with no material impact on its consolidated statement of operations. See Note 6 for further information regarding the impact of the adoption of the new guidance on accounting for leases on the Company's financial statements. Accounting Guidance Not Yet Adopted 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. Financial Instruments - Credit Losses: In June 2016, the FASB issued guidance that changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, from the incurred loss methodology under current U.S. GAAP to a new, forward-looking current expected credit loss model that would generally result in the earlier recognition of credit losses. This guidance is effective for the Company’s fiscal year beginning April 1, 2020, with early adoption permitted. Adoption of the standard will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. The Company is currently evaluating the impact of this standard on its consolidated financial statements, including accounting policies, processes, and systems. |
Net Loss Per Share | Basic net loss per share is calculated based on the weighted average common shares outstanding for the period. |
Investment In Films and Telev_2
Investment In Films and Television Programs and Program Rights (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Investment In Films And Television Programs and Program Rights [Abstract] | |
Investment In Films And Television Programs and Program Rights | June 30, March 31, (Amounts in millions) Motion Picture Segment - Theatrical and Non-Theatrical Films Released, net of accumulated amortization $ 459.6 $ 376.7 Acquired libraries, net of accumulated amortization 1.8 1.8 Completed and not released 18.8 80.6 In progress 173.8 250.4 In development 47.3 45.0 701.3 754.5 Television Production Segment - Direct-to-Television Programs Released, net of accumulated amortization 193.8 186.1 In progress 277.4 295.6 In development 19.4 17.6 490.6 499.3 Media Networks Segment Released program rights, net of accumulated amortization 613.7 591.0 In progress 67.4 106.8 In development 44.1 56.2 725.2 754.0 Intersegment eliminations (23.3 ) (40.1 ) Investment in films and television programs and program rights, net 1,893.8 1,967.7 Less current portion of program rights (274.3 ) (295.7 ) Non-current portion $ 1,619.5 $ 1,672.0 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Jun. 30, 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: June 30, March 31, (Amounts in millions) Investments in equity method investees $ 26.8 $ 24.5 Other investments 1.8 1.7 $ 28.6 $ 26.2 |
Schedule of Equity Method Investments [Line Items] | |
Summarized Balance Sheet | Summarized financial information for the Company's equity method investees owned at June 30, 2019 and March 31, 2019, respectively, is set forth below: June 30, March 31, (Amounts in millions) Current assets $ 120.2 $ 189.8 Non-current assets $ 66.0 $ 55.7 Current liabilities $ 139.7 $ 167.8 Non-current liabilities $ 51.3 $ 46.7 |
Summarized Statement of Income | Three Months Ended June 30, 2019 2018 (Amounts in millions) Revenues $ 25.9 $ 22.7 Gross profit $ 10.1 $ 4.3 Net loss $ (16.9 ) $ (18.7 ) |
Pop | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Balance Sheet | The following table presents the summarized statements of operations for the three months ended June 30, 2018 for Pop and a reconciliation of the net loss reported by Pop to equity interest loss recorded by the Company: Three Months Ended June 30, 2018 Revenues $ 25.6 Expenses: Cost of services 13.1 Selling, marketing, and general and administration 11.9 Depreciation and amortization 2.0 Operating loss (1.4 ) Interest expense, net 0.5 Accretion of redeemable preferred stock units (1) 21.7 Total interest expense, net 22.2 Net loss $ (23.6 ) Reconciliation of net loss reported by Pop to equity interest loss: Net loss reported by Pop $ (23.6 ) Ownership interest in Pop 50 % The Company's share of net loss (11.8 ) Accretion of dividend and interest income on redeemable preferred stock units (1) 10.9 Elimination of the Company's share of profits on licensing sales to Pop — Realization of the Company’s share of profits on licensing sales to Pop 0.1 Total equity interest loss recorded $ (0.8 ) ___________________ (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 previously held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest loss. |
Summarized Statement of Income | The following table presents the summarized statements of operations for the three months ended June 30, 2018 for Pop and a reconciliation of the net loss reported by Pop to equity interest loss recorded by the Company: Three Months Ended June 30, 2018 Revenues $ 25.6 Expenses: Cost of services 13.1 Selling, marketing, and general and administration 11.9 Depreciation and amortization 2.0 Operating loss (1.4 ) Interest expense, net 0.5 Accretion of redeemable preferred stock units (1) 21.7 Total interest expense, net 22.2 Net loss $ (23.6 ) Reconciliation of net loss reported by Pop to equity interest loss: Net loss reported by Pop $ (23.6 ) Ownership interest in Pop 50 % The Company's share of net loss (11.8 ) Accretion of dividend and interest income on redeemable preferred stock units (1) 10.9 Elimination of the Company's share of profits on licensing sales to Pop — Realization of the Company’s share of profits on licensing sales to Pop 0.1 Total equity interest loss recorded $ (0.8 ) ___________________ (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 previously held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest loss. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jun. 30, 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 June 30, 2019 and March 31, 2019 : June 30, March 31, (Amounts in millions) Corporate debt: Revolving Credit Facility $ — $ — Term Loan A (1) 740.6 750.0 Term Loan B (1) 1,104.4 1,107.5 5.875% Senior Notes 520.0 520.0 6.375% Senior Notes 550.0 550.0 Total corporate debt 2,915.0 2,927.5 Finance lease obligations 44.7 45.4 Total debt 2,959.7 2,972.9 Unamortized debt issuance costs, net of fair value adjustment on finance lease obligations (64.7 ) (68.5 ) Total debt, net 2,895.0 2,904.4 Less current portion (57.4 ) (53.6 ) Non-current portion of debt $ 2,837.6 $ 2,850.8 _____________________ (1) To manage interest rate risk on certain of its LIBOR-based floating-rate corporate debt, as of June 30, 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 June 30, 2019 converts the effective rate on our LIBOR-based corporate debt to 4.882% (see Note 17 for further information). |
Schedule of Interest Expense | The table below sets forth the composition of the Company’s interest expense for the three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 (Amounts in millions) Interest expense Cash interest $ 45.2 $ 32.5 Amortization of debt financing costs 3.8 2.9 49.0 35.4 Interest on dissenting shareholders' liability (1) — 15.9 Total interest expense $ 49.0 $ 51.3 ___________________ (1) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease Cost | The components of lease cost were as follows: Three Months Ended June 30, 2019 (Amounts in millions) Operating lease cost (1) $ 8.4 Finance lease cost Amortization of right-of-use assets 0.8 Interest on lease liabilities 0.9 Total finance lease cost 1.7 Short-term lease cost (1)(2) 30.2 Total lease cost $ 40.3 ___________________ (1) Amounts include costs capitalized during the period for leased assets used in the production of film and television programs. (2) Short-term lease cost primarily consists of leases of facilities and equipment associated with film and television productions. June 30, Weighted average remaining lease term (in years): Operating leases 6.7 Finance leases 21.9 Weighted average discount rate: Operating leases 4.11 % Finance leases 6.42 % |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Three Months Ended June 30, 2019 (Amounts in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9.0 Financing cash flows from financing leases 0.7 |
Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Category Balance Sheet June 30, Operating Leases (Amounts in millions) Right-of-use assets Other assets - non-current $ 151.5 Lease liabilities (current) Accounts payable and accrued liabilities $ 29.0 Lease liabilities (non-current) Other liabilities - non-current 150.9 $ 179.9 Finance Leases Right-of-use assets Property and equipment, net $ 49.5 Lease liabilities (current) Debt - short-term portion $ 3.0 Lease liabilities (non-current) Debt - non-current 41.7 $ 44.7 |
Maturity of Finance Lease Liabilities | The expected future payments relating to the Company's operating and finance lease liabilities at June 30, 2019 are as follows: Operating Leases Finance Leases (Amounts in millions) Nine months ending March 31, 2020 $ 26.9 $ 4.8 Year ending March 31, 2021 35.2 6.2 2022 32.5 3.9 2023 32.1 3.9 2024 20.1 3.9 Thereafter 60.2 73.5 Total lease payments 207.0 96.2 Less imputed interest (27.1 ) (51.5 ) Total $ 179.9 $ 44.7 |
Maturity of Operating Lease Liabilities | The expected future payments relating to the Company's operating and finance lease liabilities at June 30, 2019 are as follows: Operating Leases Finance Leases (Amounts in millions) Nine months ending March 31, 2020 $ 26.9 $ 4.8 Year ending March 31, 2021 35.2 6.2 2022 32.5 3.9 2023 32.1 3.9 2024 20.1 3.9 Thereafter 60.2 73.5 Total lease payments 207.0 96.2 Less imputed interest (27.1 ) (51.5 ) Total $ 179.9 $ 44.7 |
Film Obligations and Producti_2
Film Obligations and Production Loans (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Film Obligations And Production Loans [Abstract] | |
Films Obligations And Production Loans | June 30, March 31, (Amounts in millions) Film obligations $ 234.4 $ 270.3 Production loans 381.4 386.4 Total film obligations and production loans 615.8 656.7 Unamortized debt issuance costs (0.9 ) (1.0 ) Total film obligations and production loans, net 614.9 655.7 Less current portion (469.3 ) (512.6 ) Total non-current film obligations and production loans $ 145.6 $ 143.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 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 June 30, 2019 and March 31, 2019 : June 30, 2019 March 31, 2019 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in millions) Available-for-sale equity securities $ 1.3 $ — $ 1.3 $ 1.2 $ — $ 1.2 Forward exchange contracts (see Note 17) — 1.4 1.4 — 1.5 1.5 Liabilities: Forward exchange contracts (see Note 17) — (0.5 ) (0.5 ) — (0.6 ) (0.6 ) Interest rate swaps (see Note 17) — (109.5 ) (109.5 ) — (63.6 ) (63.6 ) $ 1.3 $ (108.6 ) $ (107.3 ) $ 1.2 $ (62.7 ) $ (61.5 ) |
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 June 30, 2019 and March 31, 2019 : June 30, 2019 March 31, 2019 (Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value (Level 2) (Level 2) Liabilities (2) : Term Loan A $ 725.0 $ 732.3 $ 733.3 $ 742.5 Term Loan B 1,088.7 1,094.7 1,091.2 1,088.1 5.875% Senior Notes 503.4 533.0 502.8 534.3 6.375% Senior Notes 542.0 574.8 541.4 576.1 Production loans 380.5 381.4 385.4 386.4 ________________ (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) | 3 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The table below presents the reconciliation of changes in redeemable noncontrolling interests: Three Months Ended June 30, 2019 2018 (Amounts in millions) Beginning balance $ 127.6 $ 101.8 Initial fair value of redeemable noncontrolling interest of 3 Arts Entertainment — 15.8 Net loss attributable to redeemable noncontrolling interests (4.5 ) (2.5 ) Noncontrolling interests discount accretion 6.4 3.0 Adjustments to redemption value 5.5 4.6 Cash distributions (0.1 ) (0.8 ) Ending balance $ 134.9 $ 121.9 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below presents revenues by segment, market or product line for the three months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 (Amounts in millions) Revenue by Type: Motion Picture Theatrical $ 121.8 $ 50.3 Home Entertainment Digital Media 83.3 86.2 Packaged Media 56.4 76.5 Total Home Entertainment 139.7 162.7 Television 64.8 61.8 International 67.4 67.3 Other 4.1 23.2 Total Motion Picture revenues 397.8 365.3 Television Production Television 196.8 217.7 International 56.7 37.0 Home Entertainment Digital Media 5.9 16.3 Packaged Media 1.4 1.8 Total Home Entertainment 7.3 18.1 Other 19.0 6.6 Total Television Production revenues 279.8 279.4 Media Networks - Programming Revenues Domestic (1) 369.3 354.8 International 3.1 0.1 372.4 354.9 Intersegment eliminations (86.4 ) (66.9 ) Total revenues $ 963.6 $ 932.7 ___________________ (1) Media Networks domestic revenues include revenue from the Company's Streaming Services product line of $6.4 million and $3.7 million , in the three months ended June 30, 2019 and 2018, respectively. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at June 30, 2019 are as follows: Rest of Year Ending March 31, 2020 Year Ending March 31, 2021 2022 Thereafter Total (Amounts in millions) Remaining Performance Obligations $ 1,377.8 $ 126.2 $ 66.3 $ 121.6 $ 1,691.9 The above table does not include estimates of variable consideration for transactions involving sales or usage-based royalties in exchange for licenses of intellectual property. The revenues included in the above table include all fixed fee contracts regardless of duration. |
Contract with Customer, Asset and Liability | At June 30, 2019 and March 31, 2019 accounts receivable, contract assets and deferred revenue are as follows: June 30, March 31, Addition (Reduction) (Amounts in millions) Accounts receivable, net - current $ 710.6 $ 647.2 $ 63.4 Accounts receivable, net - non-current (1) 232.6 176.1 56.5 Contract asset - current (2) 17.4 97.3 (79.9 ) Contract asset - non-current (3) 13.2 72.1 (58.9 ) Deferred revenue - current 144.8 146.5 (1.7 ) Deferred revenue - non-current 67.6 62.8 4.8 __________________ (1) Included in accounts receivable within non-current other assets in the unaudited condensed consolidated balance sheets. (2) Included in prepaid expenses and other within other current assets in the unaudited condensed consolidated balance sheets. (3) Included in prepaid expenses and other within non-current other assets in the unaudited condensed consolidated balance sheets. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Net Loss Per Common Share | Basic and diluted net loss per share for the three months ended June 30, 2019 and 2018 is presented below: Three Months Ended June 30, 2019 2018 (Amounts in millions, except per share amounts) Basic and Diluted Net Loss Per Common Share: Numerator: Net loss attributable to Lions Gate Entertainment Corp. shareholders $ (54.0 ) $ (7.9 ) Denominator: Weighted average common shares outstanding 216.1 211.8 Basic and diluted net loss per common share $ (0.25 ) $ (0.04 ) |
Anti-dilutive Shares Issuable | Additionally, for the three months ended June 30, 2019 and 2018 , the outstanding common shares issuable presented below were excluded from diluted net loss per common share because their inclusion would have had an anti-dilutive effect regardless of net income or loss in the period. Three Months Ended June 30, 2019 2018 (Amounts in millions) Anti-dilutive shares issuable Share purchase options 29.3 18.6 Restricted share units 1.4 0.6 Other issuable shares 2.1 1.1 Total weighted average anti-dilutive shares issuable excluded from diluted net loss per common share 32.8 20.3 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Equity and Share-based Compensation [Abstract] | |
Common Shares Reserved For Future Issuance | The table below outlines common shares reserved for future issuance: June 30, March 31, (Amounts in millions) Stock options and equity-settled SARs outstanding 35.6 34.6 Restricted stock and restricted share units — unvested 2.5 2.0 Common shares available for future issuance 7.0 6.7 Shares reserved for future issuance 45.1 43.3 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Expense | Share-based compensation expense, by expense category, consisted of the following: Three Months Ended June 30, 2019 2018 (Amounts in millions) Share-Based Compensation Expense: Direct operating $ 0.1 $ 0.2 Distribution and marketing 0.1 — General and administration 9.0 14.9 Restructuring and other 0.3 — $ 9.5 $ 15.1 The Company recognized the following share-based compensation expense during the three months ended June 30, 2019 , and 2018 : Three Months Ended June 30, 2019 2018 (Amounts in millions) Compensation Expense: Stock options $ 3.6 $ 6.8 Restricted share units and other share-based compensation 4.8 6.7 Share appreciation rights 0.8 1.6 9.2 15.1 Impact of accelerated vesting on equity awards (1) 0.3 — Total share-based compensation expense $ 9.5 $ 15.1 Tax impact (2) (2.1 ) (3.7 ) Reduction in net income $ 7.4 $ 11.4 ___________________ (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. |
Schedule of Stock Option, Equity-Settled SARs, Cash-Settled SARs, Restricted Stock and Restricted Share Unit Activity | The following table sets forth the stock option, equity-settled SARs, cash-settled SARs, restricted stock and restricted share unit activity during the three months ended June 30, 2019 : Stock Options, Equity-settled and Cash-settled SARs Restricted Stock and Restricted Share Units Class A Voting Shares Class B Non-Voting Shares Class A Voting Shares Class B Non-Voting Shares Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Grant-Date Fair Value Number of Shares Weighted-Average Grant-Date Fair Value Outstanding at March 31, 2019 8.4 $26.70 26.2 $20.72 0.1 $25.68 1.9 $24.24 Granted — $0.00 2.2 (2) $14.84 — $0.00 0.8 $14.56 Options exercised or restricted stock or RSUs vested — $0.00 (0.1 ) $10.50 — (1) $28.40 (0.1 ) $24.46 Forfeited or expired (0.4 ) $27.33 (0.7 ) $25.13 — (1) $18.90 (0.1 ) $25.99 Outstanding at June 30, 2019 8.0 $26.67 27.6 $20.16 — (1) $24.34 2.5 $21.25 __________________ (1) Represents less than 0.1 million shares. (2) During the three months ended June 30, 2019 , the Company granted 2.0 million cash-settled share-appreciation rights ("CSARs"). The CSARs are revalued each reporting period until settlement using a closed-form option pricing model (Black Scholes). |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 3 Months Ended |
Jun. 30, 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 three months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 (Amounts in millions) Restructuring and other: Severance (1) Cash $ 3.8 $ 0.8 Accelerated vesting on equity awards (see Note 12) 0.3 — Total severance costs 4.1 0.8 Transaction and related costs (2) 1.5 9.7 $ 5.6 $ 10.5 _______________________ (1) Severance costs in the three months ended June 30, 2019 and 2018 were primarily related to restructuring activities in connection with recent acquisitions, and other cost-saving initiatives. As of June 30, 2019 , the remaining severance liability was approximately $12.7 million , which is expected to be paid in the next 12 months. (2) Transaction and related costs in the three months ended June 30, 2019 and 2018 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters. In the three months ended June 30, 2018 , these costs were primarily related to the legal fees associated with the Starz class action lawsuits and other matters, and the acquisition of 3 Arts Entertainment. Changes in the restructuring and other severance liability were as follows for the three months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 (Amounts in millions) Severance liability Beginning balance $ 21.2 $ 14.7 Accruals 3.8 0.8 Severance payments (12.3 ) (7.2 ) Ending balance $ 12.7 $ 8.3 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information is presented in the table below: Three Months Ended June 30, 2019 2018 (Amounts in millions) Segment revenues Motion Picture $ 397.8 $ 365.3 Television Production 279.8 279.4 Media Networks 372.4 354.9 Intersegment eliminations (86.4 ) (66.9 ) $ 963.6 $ 932.7 Intersegment revenues Motion Picture $ 4.4 $ 2.1 Television Production 81.4 64.8 Media Networks 0.6 — $ 86.4 $ 66.9 Gross contribution Motion Picture $ 32.9 $ 78.5 Television Production 34.7 26.0 Media Networks 80.9 114.1 Intersegment eliminations (1.7 ) (11.2 ) $ 146.8 $ 207.4 Segment general and administration Motion Picture $ 25.3 $ 26.9 Television Production 9.7 10.4 Media Networks 20.3 25.6 $ 55.3 $ 62.9 Segment profit Motion Picture $ 7.6 $ 51.6 Television Production 25.0 15.6 Media Networks 60.6 88.5 Intersegment eliminations (1.7 ) (11.2 ) $ 91.5 $ 144.5 |
Reconciliation Of Total Segment Profit To The Company's Loss Before Income Taxes | The reconciliation of total segment profit to the Company’s loss before income taxes is as follows: Three Months Ended June 30, 2019 2018 (Amounts in millions) Company’s total segment profit $ 91.5 $ 144.5 Corporate general and administrative expenses (24.2 ) (27.6 ) Adjusted depreciation and amortization (1) (10.7 ) (10.3 ) Restructuring and other (2) (5.6 ) (10.5 ) Adjusted share-based compensation expense (3) (9.2 ) (15.1 ) Purchase accounting and related adjustments (4) (45.0 ) (42.8 ) Operating income (loss) (3.2 ) 38.2 Interest expense (49.0 ) (51.3 ) Interest and other income 2.8 3.0 Other expense (2.3 ) — Gain (loss) on investments 0.1 (0.9 ) Equity interests loss (7.9 ) (6.2 ) Loss before income taxes $ (59.5 ) $ (17.2 ) ___________________ (1) Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Three Months Ended June 30, 2019 2018 (Amounts in millions) Depreciation and amortization $ 40.1 $ 40.3 Less: Amount included in purchase accounting and related adjustments (29.4 ) (30.0 ) Adjusted depreciation and amortization $ 10.7 $ 10.3 (2) Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 14 ). (3) The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Three Months Ended June 30, 2019 2018 (Amounts in millions) Total share-based compensation expense $ 9.5 $ 15.1 Less: Amount included in restructuring and other (i) (0.3 ) — Adjusted share-based compensation $ 9.2 $ 15.1 (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. (4) Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended June 30, 2019 2018 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 1.5 $ 8.0 General and administrative expense 14.1 4.8 Depreciation and amortization 29.4 30.0 $ 45.0 $ 42.8 |
Adjusted Depreciation and Amortization | Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Three Months Ended June 30, 2019 2018 (Amounts in millions) Depreciation and amortization $ 40.1 $ 40.3 Less: Amount included in purchase accounting and related adjustments (29.4 ) (30.0 ) Adjusted depreciation and amortization $ 10.7 $ 10.3 |
Adjusted Share-Based Compensation | The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Three Months Ended June 30, 2019 2018 (Amounts in millions) Total share-based compensation expense $ 9.5 $ 15.1 Less: Amount included in restructuring and other (i) (0.3 ) — Adjusted share-based compensation $ 9.2 $ 15.1 (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. |
Purchase Accounting and Related Adjustments | Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended June 30, 2019 2018 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 1.5 $ 8.0 General and administrative expense 14.1 4.8 Depreciation and amortization 29.4 30.0 $ 45.0 $ 42.8 |
Reconciliation of Segment General and Administrative Expense to Consolidated | The following table reconciles segment general and administration expense to the Company's total consolidated general and administration expense: Three Months Ended June 30, 2019 2018 (Amounts in millions) General and administration Segment general and administrative expenses $ 55.3 $ 62.9 Corporate general and administrative expenses 24.2 27.6 Share-based compensation expense included in general and administrative expense 9.0 14.9 Purchase accounting and related adjustments 14.1 4.8 $ 102.6 $ 110.2 |
Reconciliation of Assets from Segment to Consolidated | The reconciliation of total segment assets to the Company’s total consolidated assets is as follows: June 30, March 31, (Amounts in millions) Assets Motion Picture $ 1,648.4 $ 1,694.5 Television Production 1,593.2 1,394.2 Media Networks 4,712.2 4,850.3 Other unallocated assets (1) 483.5 469.9 $ 8,437.3 $ 8,408.9 _____________________ (1) Other unallocated assets primarily consist of cash, other assets and investments. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Derivative [Line Items] | |
Schedule of Derivative Instruments, Statements of Financial Performance And Comprehensive Income, Location And Effect | 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 three months ended June 30, 2019 and 2018: Three Months Ended June 30, 2019 2018 (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in accumulated other comprehensive income (loss) $ — $ — Gain reclassified from accumulated other comprehensive income (loss) into direct operating expense $ 1.1 $ — Interest rate swap agreements Loss recognized in accumulated other comprehensive income (loss) $ (45.9 ) $ (6.8 ) Loss reclassified from accumulated other comprehensive income (loss) into interest expense (1.8 ) (0.9 ) Derivatives not designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in direct operating expense $ — $ (0.7 ) Total direct operating expense on consolidated statements of operations $ 568.0 $ 530.0 Total interest expense on consolidated statements of operations (1) $ 49.0 $ 35.4 ________________ (1) Represents interest expense before interest on dissenting shareholders' liability. |
Derivative Instruments by Balance Sheet Location | As of June 30, 2019 and March 31, 2019 , the Company had the following amounts recorded in the accompanying consolidated balance sheets related to the Company's use of derivatives: June 30, 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 $ 1.4 $ 0.5 $ — Interest rate swap agreements — — 109.5 Fair value of derivatives $ 1.4 $ 0.5 $ 109.5 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 |
Forward Foreign Exchange Contracts | |
Derivative [Line Items] | |
Schedule of Derivative Instruments Outstanding | As of June 30, 2019 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 9 months from June 30, 2019 ): June 30, 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$21.1 in exchange for $16.5 C$1.28 Australian Dollar A$3.5 in exchange for $2.8 A$1.25 Mexican Peso $109.7 in exchange for $5.7 $19.27 |
Interest rate swap agreements | |
Derivative [Line Items] | |
Schedule of Derivative Instruments Outstanding | The major terms of the Company's interest rate swap agreements as of June 30, 2019 are as follows (all related to the Company's LIBOR-based debt, see Note 5 ): 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) | 3 Months Ended |
Jun. 30, 2019 | |
Additional Financial Information [Abstract] | |
Schedule of Other Assets | The composition of the Company’s other assets is as follows as of June 30, 2019 and March 31, 2019: June 30, March 31, (Amounts in millions) Other current assets Prepaid expenses and other $ 68.3 $ 150.6 Product inventory 18.6 19.9 Tax credits receivable 91.7 96.7 $ 178.6 $ 267.2 Other non-current assets Prepaid expenses and other $ 43.8 $ 109.2 Accounts receivable 232.6 176.1 Tax credits receivable 173.0 150.8 Operating lease right-of-use assets 151.5 — $ 600.9 $ 436.1 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | The supplemental schedule of non-cash investing activities is presented below: Three Months Ended June 30, 2019 2018 (Amounts in millions) Non-cash investing activities: Common shares related to business acquisitions (see Note 2) $ 28.1 $ 83.7 Non-cash financing activities: Accrued dividends $ — $ 19.2 |
Schedule of 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 loss on cash flow hedges Total (Amounts in millions) March 31, 2019 $ (18.2 ) $ (62.1 ) $ (80.3 ) Other comprehensive loss 0.9 (45.9 ) (45.0 ) June 30, 2019 $ (17.3 ) $ (108.0 ) $ (125.3 ) |
General (Narrative) (Details)
General (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Liabilities | $ 179.9 | ||
Operating Leases, Right-of-use assets | $ 151.5 | $ 0 | |
Accounting for Leases | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Liabilities | $ 187.2 | ||
Operating Leases, Right-of-use assets | 157.4 | ||
Lease Incentives | $ 29.8 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Millions | May 29, 2018 | Jun. 30, 2019 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,833.5 | $ 2,833.5 | |
3 Arts Entertainment | |||
Business Acquisition [Line Items] | |||
Business acquisition, percentage of membership interest acquired | 51.00% | ||
Purchase price | $ 166.6 | ||
Percent of purchase price paid in cash at closing | 50.00% | ||
Period for weighted average closing price (number of consecutive trading days) | 20 days | ||
Goodwill | $ 92.7 | ||
Finite-lived intangible assets | 47 | ||
Deferred compensation arrangements | $ 38.3 | ||
Redeemable noncontrolling interest | $ (15.8) | ||
Period for issuance of equity interests after closing date | 1 year | ||
Business combination, contingent consideration, contingency period | 5 years | ||
Class B Non-Voting Shares | 3 Arts Entertainment | |||
Business Acquisition [Line Items] | |||
Percent of purchase price paid in Class B non-voting common shares at closing | 32.50% | ||
Percent of purchase prince to be paid in Class B non-voting common shares on the one-year anniversary of closing | 17.50% | ||
Customer relationships | 3 Arts Entertainment | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 12 years | ||
3 Arts Entertainment | |||
Business Acquisition [Line Items] | |||
Redeemable noncontrolling interest, ownership percentage held by noncontrolling interest holders | 49.00% |
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 | Jun. 30, 2019 | Mar. 31, 2019 |
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Total investment in films and television programs and program rights, net | $ 1,893.8 | $ 1,967.7 |
Intersegment eliminations | (23.3) | (40.1) |
Less current portion of program rights | (274.3) | (295.7) |
Non-current portion | 1,619.5 | 1,672 |
Motion Picture | Theatrical And Non-Theatrical Films | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 459.6 | 376.7 |
Acquired libraries, net of accumulated amortization | 1.8 | 1.8 |
Completed and not released | 18.8 | 80.6 |
In progress | 173.8 | 250.4 |
In development | 47.3 | 45 |
Total investment in film and television programs | 701.3 | 754.5 |
Television Production | Direct-to-Television Programs | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 193.8 | 186.1 |
In progress | 277.4 | 295.6 |
In development | 19.4 | 17.6 |
Total investment in film and television programs | 490.6 | 499.3 |
Media Networks | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 613.7 | 591 |
In progress | 67.4 | 106.8 |
In development | 44.1 | 56.2 |
Total investment in films and television programs and program rights, net | $ 725.2 | $ 754 |
Investment In Films and Telev_4
Investment In Films and Television Programs and Program Rights (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Investment In Films And Television Programs and Program Rights [Abstract] | ||
Fair value film write-downs | $ 1.6 | $ 4.5 |
Investments (Investments by Cat
Investments (Investments by Category) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Equity Method Investments, and Investments in Debt and Equity Securities [Abstract] | ||
Investments in equity method investees | $ 26.8 | $ 24.5 |
Other investments | 1.8 | 1.7 |
Investments | $ 28.6 | $ 26.2 |
Investments (Equity Method Inve
Investments (Equity Method Investments Narrative) (Details) | Mar. 15, 2019 | Mar. 15, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Pop | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest sold | 50.00% | |||
Equity method investment, ownership percentage | 50.00% | |||
Redeemable Preferred Stock | Pop | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Rate of dividend on preferred stock | 10.00% | |||
Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 12.00% | |||
Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 49.00% |
Investments (Summarized Balance
Investments (Summarized Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 120.2 | $ 189.8 |
Non-current assets | 66 | 55.7 |
Current liabilities | 139.7 | 167.8 |
Non-current liabilities | $ 51.3 | $ 46.7 |
Investments (Summarized Stateme
Investments (Summarized Statement Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 25.9 | $ 22.7 |
Expenses: | ||
Gross profit | 10.1 | 4.3 |
Reconciliation of net loss reported by investee to equity interest loss: | ||
Net income (loss) | (16.9) | (18.7) |
Total equity interest loss recorded | $ (7.9) | (6.2) |
Pop | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 25.6 | |
Expenses: | ||
Cost of services | 13.1 | |
Selling, marketing and general and administrative expenses | 11.9 | |
Depreciation and amortization | 2 | |
Operating income (loss) | (1.4) | |
Interest expense, net | 0.5 | |
Accretion of redeemable preferred stock units | 21.7 | |
Total interest expense, net | 22.2 | |
Reconciliation of net loss reported by investee to equity interest loss: | ||
Net income (loss) | $ (23.6) | |
Ownership interest in investee | 50.00% | |
The Company's share of net income (loss) | $ (11.8) | |
Accretion of dividend and interest income of redeemable preferred stock units | 10.9 | |
Eliminations of the Company's share of profits on licensing sales to investee | 0 | |
Realization of the Company's share of profits on licensing sales to investee | 0.1 | |
Total equity interest loss recorded | $ (0.8) |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Jul. 31, 2018 | Jun. 25, 2018 | May 23, 2018 | |
Debt Instrument [Line Items] | ||||||
Corporate debt | $ 2,915 | $ 2,927.5 | ||||
Finance lease obligations | 44.7 | 45.4 | ||||
Total debt | 2,959.7 | 2,972.9 | ||||
Unamortized debt issuance costs, net of fair value adjustment on finance lease obligations | (64.7) | (68.5) | ||||
Total debt, net | 2,895 | 2,904.4 | ||||
Less current portion | (57.4) | (53.6) | ||||
Non-current portion of debt | 2,837.6 | 2,850.8 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | $ 0 | 0 | ||||
LIBOR-Based | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, effective percentage after interest rate swaps | 4.882% | |||||
Term Loan A Facility | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | [1] | $ 740.6 | 750 | |||
Term Loan B Facility | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | [1] | 1,104.4 | 1,107.5 | |||
5.875% Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | $ 520 | 520 | ||||
Coupon rate | 5.875% | |||||
6.375% Senior Notes | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Corporate debt | $ 550 | 550 | ||||
Coupon rate | 6.375% | |||||
Interest rate swap agreements | ||||||
Debt Instrument [Line Items] | ||||||
Notional amount | $ 1,700 | $ 1,700 | $ 300 | $ 200 | $ 1,000 | |
[1] | To manage interest rate risk on certain of its LIBOR-based floating-rate corporate debt, as of June 30, 2019 , the Company has entered into interest rate swaps to effectively convert the floating interest rates to fixed interest rates on a $1.7 billion notional amount, which as of June 30, 2019 converts the effective rate on our LIBOR-based corporate debt to 4.882% (see Note 17 for further information). |
Debt (Narrative - Senior Credit
Debt (Narrative - Senior Credit Facilities) (Details) - USD ($) $ in Millions | Mar. 22, 2018 | Dec. 08, 2016 | Jun. 30, 2019 |
Revolving Credit Facility | |||
Line of Credit Facility [Abstract] | |||
Debt term | 5 years | ||
Revolving credit facility, maximum borrowing capacity | $ 1,500 | ||
Revolving credit facility, available amount | $ 1,500 | ||
Number of possible increases in margin | 2 | ||
Effective interest rate | 4.15% | ||
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 | 1.75% | ||
Potential increases in interest rate upon certain increases to leverage ratios, total | 0.50% | ||
Potential increase in interest rate upon certain increases to leverage ratios, per reduction | 0.25% | ||
LIBOR | Minimum | Revolving Credit Facility | |||
Line of Credit Facility [Abstract] | |||
Coupon rate | 0.00% | ||
Previous Term Loan A | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Debt term | 5 years | ||
Term Loan A Facility | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Number of possible increases in margin | 2 | ||
Effective interest rate | 4.15% | ||
Quarterly principal payment percent | 1.25% | ||
Quarterly principal payment percent, year two | 1.75% | ||
Quarterly principal payment percent, year three | 2.50% | ||
Quarterly principal payment percent, year four | 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 | 1.75% | ||
Potential increases in interest rate upon certain increases to leverage ratios, total | 0.50% | ||
Potential increase in interest rate upon certain increases to leverage ratios, 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 | 4.65% | ||
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% | ||
Previous Term Loan B | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Debt term | 7 years |
Debt (Narrative - Senior Notes)
Debt (Narrative - Senior Notes) (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Debt Instrument [Line Items] | |
Basis spread on treasury rate | 0.50% |
5.875% Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Coupon rate | 5.875% |
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% |
Debt instrument redemption premium percentage, as a percentage of principal amount prepaid or redeemed | 1.00% |
Senior Credit Facilities And 5.875% Senior Notes And 6.375% Senior Notes | |
Debt Instrument [Line Items] | |
Net loss, amount free of restrictions | $ 58.4 |
Retained earnings, amount free of restrictions | $ 149.2 |
Debt instrument, redemption period one | 5.875% Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument redemption price percentage | 100.00% |
Debt instrument, redemption period one | 6.375% Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument redemption price percentage | 100.00% |
Debt instrument, redemption, period two | 5.875% Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument redemption price percentage | 104.406% |
Debt instrument, redemption, period two | 6.375% Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument redemption price percentage | 103.188% |
Debt instrument, redemption, period three | 5.875% Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument redemption price percentage | 102.938% |
Debt instrument, redemption, period three | 6.375% Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument redemption price percentage | 101.594% |
Debt instrument, redemption, period four | 5.875% Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument redemption price percentage | 101.439% |
Debt instrument, redemption, period four | 6.375% Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Debt instrument redemption price percentage | 100.00% |
Debt instrument, redemption, period five | 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 (Interest Expense) (Detail
Debt (Interest Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Debt Disclosure [Abstract] | |||
Cash interest | $ 45.2 | $ 32.5 | |
Amortization of debt financing costs | 3.8 | 2.9 | |
Interest expense, before interest on dissenting shareholders' liability | [1] | 49 | 35.4 |
Interest on dissenting shareholders' liability | [2] | 0 | 15.9 |
Total interest expense | $ 49 | $ 51.3 | |
[1] | Represents interest expense before interest on dissenting shareholders' liability. | ||
[2] | Represents interest accrued in connection with the previously outstanding dissenting shareholders' liability associated with the Starz merger. |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 3 Months Ended |
Jun. 30, 2019 | |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Leases, remaining lease term | 10 years |
Building | |
Lessee, Lease, Description [Line Items] | |
Finance lease, number of renewal periods | 4 |
Finance lease, renewal term (in years) | 5 years |
Leases (Lease Cost) (Details)
Leases (Lease Cost) (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2019USD ($) | ||
Leases [Abstract] | ||
Operating lease cost | $ 8.4 | [1] |
Finance lease cost | ||
Amortization of right-of-use assets | 0.8 | |
Interest on lease liabilities | 0.9 | |
Total finance lease cost | 1.7 | |
Short-term lease cost | 30.2 | [1],[2] |
Total lease cost | $ 40.3 | |
[1] | Amounts include costs capitalized during the period for leased assets used in the production of film and television programs. | |
[2] | Short-term lease cost primarily consists of leases of facilities and equipment associated with film and television productions. |
Leases (Cash Flow Information,
Leases (Cash Flow Information, Leases) (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 9 |
Financing cash flows from financing leases | $ 0.7 |
Leases (Balance Sheet Informati
Leases (Balance Sheet Information, Leases) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Operating Leases | ||
Operating Leases, Right-of-use assets | $ 151.5 | $ 0 |
Operating Lease, Liabilities | 179.9 | |
Finance Leases | ||
Finance Lease, Liabilities | $ 44.7 | $ 45.4 |
Operating leases, weighted average remaining lease term | 6 years 8 months 12 days | |
Finance leases, weighted average remaining lease term | 21 years 10 months 24 days | |
Operating leases, weighted average discount rate, percent | 4.11% | |
Finance leases, weighted average discount rate, percent | 6.42% | |
Other Non-Current Assets | ||
Operating Leases | ||
Operating Leases, Right-of-use assets | $ 151.5 | |
Accounts Payable and Accrued Liabilities | ||
Operating Leases | ||
Operating Leases, Liabilities, current | 29 | |
Other Non-Current Liabilities | ||
Operating Leases | ||
Operating Leases, Liabilities, non-current | 150.9 | |
Property and equipment, net | ||
Finance Leases | ||
Finance Leases, Right-of-Use assets | 49.5 | |
Debt - short-term portion | ||
Finance Leases | ||
Finance Lease, Liabilities, Current | 3 | |
Debt - non-current | ||
Finance Leases | ||
Finance Lease, Liabilities, Non-current | $ 41.7 |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Operating Leases | ||
Nine months ended March 31, 2020 | $ 26.9 | |
Year ended March 31, 2021 | 35.2 | |
Year ended March 31, 2022 | 32.5 | |
Year ended March 31, 2023 | 32.1 | |
Year ended March 31, 2024 | 20.1 | |
Thereafter | 60.2 | |
Total lease payments | 207 | |
Less imputed interest | (27.1) | |
Total | 179.9 | |
Finance Leases | ||
Nine months ended March 31, 2020 | 4.8 | |
Year ended March 31, 2021 | 6.2 | |
Year ended March 31, 2022 | 3.9 | |
Year ended March 31, 2023 | 3.9 | |
Year ended March 31, 2024 | 3.9 | |
Thereafter | 73.5 | |
Total lease payments | 96.2 | |
Less imputed interest | (51.5) | |
Total | $ 44.7 | $ 45.4 |
Film Obligations and Producti_3
Film Obligations and Production Loans (Film Obligations And Production Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Film Obligations And Production Loans [Abstract] | ||
Film obligations | $ 234.4 | $ 270.3 |
Production loans | 381.4 | 386.4 |
Total film obligations and production loans | 615.8 | 656.7 |
Unamortized debt issuance costs | (0.9) | (1) |
Total film obligations and production loans, net | 614.9 | 655.7 |
Less current portion | (469.3) | (512.6) |
Total non-current film obligations and production loans | $ 145.6 | $ 143.1 |
Film Obligations and Producti_4
Film Obligations and Production Loans (Narrative) (Details) - Production Loans | Jun. 30, 2019 |
Minimum | |
Interest rates on production loans | 4.42% |
Maximum | |
Interest rates on production loans | 5.14% |
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 | Jun. 30, 2019 | Mar. 31, 2019 |
Assets: | ||
Available-for-sale securities | $ 1.3 | $ 1.2 |
Forward exchange contracts | 1.4 | 1.5 |
Liabilities: | ||
Forward exchange contracts | (0.5) | (0.6) |
Interest rate swaps | (109.5) | (63.6) |
Fair value, net asset (liability) | (107.3) | (61.5) |
Level 1 | ||
Assets: | ||
Available-for-sale securities | 1.3 | 1.2 |
Forward exchange contracts | 0 | 0 |
Liabilities: | ||
Forward exchange contracts | 0 | 0 |
Interest rate swaps | 0 | 0 |
Fair value, net asset (liability) | 1.3 | 1.2 |
Level 2 | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Forward exchange contracts | 1.4 | 1.5 |
Liabilities: | ||
Forward exchange contracts | (0.5) | (0.6) |
Interest rate swaps | (109.5) | (63.6) |
Fair value, net asset (liability) | $ (108.6) | $ (62.7) |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values And Fair Values Of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | |
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% | ||
Carrying Value | Term Loan | Term Loan A Facility | |||
Liabilities: | |||
Loans, fair value disclosure | $ 725 | $ 733.3 | |
Carrying Value | Term Loan | Term Loan B Facility | |||
Liabilities: | |||
Loans, fair value disclosure | 1,088.7 | 1,091.2 | |
Carrying Value | Senior Notes | 5.875% Senior Notes | |||
Liabilities: | |||
Senior Notes, fair value disclosure | 503.4 | 502.8 | |
Carrying Value | Senior Notes | 6.375% Senior Notes | |||
Liabilities: | |||
Senior Notes, fair value disclosure | 542 | 541.4 | |
Carrying Value | Production Loans | Production Loans | |||
Liabilities: | |||
Loans, fair value disclosure | 380.5 | 385.4 | |
Fair Value | Fair Value (Level 2) | Term Loan | Term Loan A Facility | |||
Liabilities: | |||
Loans, fair value disclosure | [1] | 732.3 | 742.5 |
Fair Value | Fair Value (Level 2) | Term Loan | Term Loan B Facility | |||
Liabilities: | |||
Loans, fair value disclosure | [1] | 1,094.7 | 1,088.1 |
Fair Value | Fair Value (Level 2) | Senior Notes | 5.875% Senior Notes | |||
Liabilities: | |||
Senior Notes, fair value disclosure | [1] | 533 | 534.3 |
Fair Value | Fair Value (Level 2) | Senior Notes | 6.375% Senior Notes | |||
Liabilities: | |||
Senior Notes, fair value disclosure | [1] | 574.8 | 576.1 |
Fair Value | Fair Value (Level 2) | Production Loans | Production Loans | |||
Liabilities: | |||
Loans, fair value disclosure | [1] | $ 381.4 | $ 386.4 |
[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 (Chang
Noncontrolling Interests (Changes In Redeemable Noncontrolling Interest) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | $ 127.6 | $ 101.8 |
Initial fair value of redeemable noncontrolling interest of 3 Arts Entertainment | 0 | 15.8 |
Net loss attributable to redeemable noncontrolling interests | (4.5) | (2.5) |
Noncontrolling interests discount accretion | 6.4 | 3 |
Adjustments to redemption value | 5.5 | 4.6 |
Cash distributions | (0.1) | (0.8) |
Ending balance | $ 134.9 | $ 121.9 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 963.6 | $ 932.7 |
Operating segments | Motion Picture | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 397.8 | 365.3 |
Operating segments | Motion Picture | Theatrical | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 121.8 | 50.3 |
Operating segments | Motion Picture | Digital Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 83.3 | 86.2 |
Operating segments | Motion Picture | Packaged Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 56.4 | 76.5 |
Operating segments | Motion Picture | Home Entertainment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 139.7 | 162.7 |
Operating segments | Motion Picture | Television | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 64.8 | 61.8 |
Operating segments | Motion Picture | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 67.4 | 67.3 |
Operating segments | Motion Picture | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 4.1 | 23.2 |
Operating segments | Television Production | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 279.8 | 279.4 |
Operating segments | Television Production | Television | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 196.8 | 217.7 |
Operating segments | Television Production | Digital Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 5.9 | 16.3 |
Operating segments | Television Production | Packaged Media | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1.4 | 1.8 |
Operating segments | Television Production | Home Entertainment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7.3 | 18.1 |
Operating segments | Television Production | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 56.7 | 37 |
Operating segments | Television Production | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 19 | 6.6 |
Operating segments | Media Networks | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 372.4 | 354.9 |
Operating segments | Media Networks | Programming | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 372.4 | 354.9 |
Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (86.4) | (66.9) |
Intersegment Eliminations | Motion Picture | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (4.4) | (2.1) |
Intersegment Eliminations | Television Production | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (81.4) | (64.8) |
Intersegment Eliminations | Media Networks | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | (0.6) | 0 |
Domestic | Operating segments | Media Networks | Programming | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 369.3 | 354.8 |
Domestic | Operating segments | Media Networks | Streaming Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 6.4 | 3.7 |
International | Operating segments | Media Networks | Programming | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 3.1 | $ 0.1 |
Revenue (Remaining Performance
Revenue (Remaining Performance Obligations - Timing) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,691.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,377.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
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 | $ 126.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
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 | $ 66.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
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 | $ 121.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Revenue (Contract with Customer
Revenue (Contract with Customer, Asset and Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | ||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||
Accounts receivable, net - current | $ 710.6 | $ 647.2 | |
Accounts receivable, net - non-current | [1] | 232.6 | 176.1 |
Contract asset - current | [2] | 17.4 | 97.3 |
Contract asset - non-current | [3] | 13.2 | 72.1 |
Deferred revenue - current | 144.8 | 146.5 | |
Deferred revenue - non-current | 67.6 | $ 62.8 | |
Contract with Customer, Liability, Revenue Recognized | 67.3 | ||
Accounts receivable, current | |||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||
Contract with Customer, Asset, Increase (Decrease) | 63.4 | ||
Accounts receivable, noncurrent | |||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||
Contract with Customer, Asset, Increase (Decrease) | [1] | 56.5 | |
Other Current Assets | |||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||
Contract with Customer, Asset, Increase (Decrease) | [2] | (79.9) | |
Other Non-Current Assets | |||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||
Contract with Customer, Asset, Increase (Decrease) | [3] | (58.9) | |
Deferred revenue, current | |||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||
Contract with Customer, Liability, Increase (Decrease) | (1.7) | ||
Deferred revenue, noncurrent | |||
Contract with Customer, Schedule of Asset and Liability [Line Items] | |||
Contract with Customer, Liability, Increase (Decrease) | $ 4.8 | ||
[1] | Included in accounts receivable within non-current other assets in the unaudited condensed consolidated balance sheets. | ||
[2] | Included in prepaid expenses and other within other current assets in the unaudited condensed consolidated balance sheets. | ||
[3] | Included in prepaid expenses and other within non-current other assets in the unaudited condensed consolidated balance sheets. |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized in period from performance obligations satisfied in previous period | $ 64.9 |
Net Loss Per Share (Basic and D
Net Loss Per Share (Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||
Net loss attributable to Lions Gate Entertainment Corp. shareholders | $ (54) | $ (7.9) |
Denominator: | ||
Weighted average common shares outstanding (in shares) | 216.1 | 211.8 |
Basic and diluted net loss per common share | $ (0.25) | $ (0.04) |
Net Loss Per Share (Anti-Diluti
Net Loss Per Share (Anti-Dilutive Shares Issuable) (Details) - shares shares in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Anti-dilutive shares issuable [Line Items] | ||
Anti-dilutive shares excluded from calculation of diluted earnings per share due to net loss (in shares) | 3.6 | 7.9 |
Anti-dilutive shares issuable (in shares) | 32.8 | 20.3 |
Share purchase options | ||
Anti-dilutive shares issuable [Line Items] | ||
Anti-dilutive shares issuable (in shares) | 29.3 | 18.6 |
Restricted Stock and Restricted Share Units (RSUs) | ||
Anti-dilutive shares issuable [Line Items] | ||
Anti-dilutive shares issuable (in shares) | 1.4 | 0.6 |
Other issuable shares | ||
Anti-dilutive shares issuable [Line Items] | ||
Anti-dilutive shares issuable (in shares) | 2.1 | 1.1 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) $ in Thousands, shares in Millions | Dec. 08, 2016USD ($)installment | Mar. 31, 2019USD ($)shares | Mar. 31, 2018USD ($)shares | Jun. 30, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of annual installments | installment | 3 | |||
Annual installment payment, equity or cash, amount | $ | $ 16,670 | |||
Value of agreement | $ | $ 50,000 | |||
Class A Voting Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized common shares (in shares) | shares | 500 | 500 | ||
Annual installment payment, equity or cash, amount | $ | $ 8,300 | $ 8,300 | ||
Affiliation agreement, annual installment payment, shares issued | shares | 0.4 | 0.3 | ||
Class B Non-Voting Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized common shares (in shares) | shares | 500 | 500 | ||
Annual installment payment, equity or cash, amount | $ | $ 8,300 | $ 8,300 | ||
Affiliation agreement, annual installment payment, shares issued | shares | 0.5 | 0.3 |
Capital Stock (Common Shares Re
Capital Stock (Common Shares Reserved for Future Issuance) (Details) - shares shares in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 45.1 | 43.3 |
Stock Options and Equity-Settled SARs | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 35.6 | 34.6 |
Restricted Stock and Restricted Share Units - Unvested | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 2.5 | 2 |
Common shares available for future issuance | ||
Common Shares Reserved For Future Issuance [Line Items] | ||
Shares reserved for future issuance (in shares) | 7 | 6.7 |
Capital Stock (Share-Based Comp
Capital Stock (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Share-Based Compensation Expense [Line Items] | |||
Share-based compensation expense | $ 9.2 | $ 15.1 | |
Total share-based compensation expense | 9.5 | 15.1 | |
Tax impact | [1] | (2.1) | (3.7) |
Reduction in net income | 7.4 | 11.4 | |
Employee Stock Options, Restricted Stock and Restricted Share Units [Member] | |||
Share-Based Compensation Expense [Line Items] | |||
Impact of accelerated vesting on equity awards | [2] | 0.3 | 0 |
Stock Options | |||
Share-Based Compensation Expense [Line Items] | |||
Share-based compensation expense | 3.6 | 6.8 | |
Restricted Share Units and Other Share-based Compensation | |||
Share-Based Compensation Expense [Line Items] | |||
Share-based compensation expense | 4.8 | 6.7 | |
Share Appreciation Rights (SARs) | |||
Share-Based Compensation Expense [Line Items] | |||
Share-based compensation expense | $ 0.8 | $ 1.6 | |
[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 | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-Based Compensation Expense [Line Items] | ||
Share-based compensation expense | $ 9.5 | $ 15.1 |
Direct operating | ||
Share-Based Compensation Expense [Line Items] | ||
Share-based compensation expense | 0.1 | 0.2 |
Distribution and marketing | ||
Share-Based Compensation Expense [Line Items] | ||
Share-based compensation expense | 0.1 | 0 |
General and administration | ||
Share-Based Compensation Expense [Line Items] | ||
Share-based compensation expense | 9 | 14.9 |
Restructuring and other | ||
Share-Based Compensation Expense [Line Items] | ||
Share-based compensation expense | $ 0.3 | $ 0 |
Capital Stock (Stock Option, SA
Capital Stock (Stock Option, SARs, Restricted Stock and Restricted Share Unit Activity) (Details) shares in Millions | 3 Months Ended | |
Jun. 30, 2019$ / sharesshares | ||
Class A Voting Shares | Stock Options and Equity-Settled SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at March 31, 2019 (in shares) | 8.4 | |
Granted (in shares) | 0 | |
Options exercised (in shares) | 0 | |
Forfeited or expired (in shares) | (0.4) | |
Outstanding at June 30, 2019 (in shares) | 8 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding at March 31, 2019, weighted average exercise price (in usd per share) | $ / shares | $ 26.70 | |
Granted, weighted average exercise price (in usd per share) | $ / shares | 0 | |
Options exercised, weighted average exercise price (in usd per share) | $ / shares | 0 | |
Forfeited or expired, weighted average exercise price (in usd per share) | $ / shares | 27.33 | |
Outstanding at June 30, 2019, weighted average exercise price (in usd per share) | $ / shares | $ 26.67 | |
Class A Voting Shares | Restricted Stock and Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at March 31, 2019 (in shares) | 0.1 | |
Granted (in shares) | 0 | |
Restricted stock or RSUs vested (in shares) | 0 | [1] |
Forfeited or expired (in shares) | 0 | [1] |
Outstanding at June 30, 2019 (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 at March 31, 2019, weighted average grant-date fair value (in usd per share) | $ / shares | $ 25.68 | |
Granted, weighted average grant date fair value (in usd per share) | $ / shares | 0 | |
Restricted stock or RSUs vested, weighted average grant-date fair value (in usd per share) | $ / shares | 28.40 | |
Forfeited or expired, weighted average grant-date fair value (in usd per share) | $ / shares | 18.90 | |
Outstanding at June 30, 2019, weighted average grant-date fair value (in usd per share) | $ / shares | $ 24.34 | |
Class B Non-Voting Shares | Stock Options and Equity-Settled SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at March 31, 2019 (in shares) | 26.2 | |
Granted (in shares) | 2.2 | [2] |
Options exercised (in shares) | (0.1) | |
Forfeited or expired (in shares) | (0.7) | |
Outstanding at June 30, 2019 (in shares) | 27.6 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding at March 31, 2019, weighted average exercise price (in usd per share) | $ / shares | $ 20.72 | |
Granted, weighted average exercise price (in usd per share) | $ / shares | 14.84 | |
Options exercised, weighted average exercise price (in usd per share) | $ / shares | 10.50 | |
Forfeited or expired, weighted average exercise price (in usd per share) | $ / shares | 25.13 | |
Outstanding at June 30, 2019, weighted average exercise price (in usd per share) | $ / shares | $ 20.16 | |
Class B Non-Voting Shares | Share Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in shares) | 2 | |
Class B Non-Voting Shares | Restricted Stock and Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at March 31, 2019 (in shares) | 1.9 | |
Granted (in shares) | 0.8 | |
Restricted stock or RSUs vested (in shares) | (0.1) | |
Forfeited or expired (in shares) | (0.1) | |
Outstanding at June 30, 2019 (in shares) | 2.5 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding at March 31, 2019, weighted average grant-date fair value (in usd per share) | $ / shares | $ 24.24 | |
Granted, weighted average grant date fair value (in usd per share) | $ / shares | 14.56 | |
Restricted stock or RSUs vested, weighted average grant-date fair value (in usd per share) | $ / shares | 24.46 | |
Forfeited or expired, weighted average grant-date fair value (in usd per share) | $ / shares | 25.99 | |
Outstanding at June 30, 2019, weighted average grant-date fair value (in usd per share) | $ / shares | $ 21.25 | |
Maximum | Class A Voting Shares | Restricted Stock and Restricted Share Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Restricted stock or RSUs vested (in shares) | (0.1) | [1] |
Forfeited or expired (in shares) | (0.1) | |
Outstanding at June 30, 2019 (in shares) | 0.1 | |
[1] | Represents less than 0.1 million shares. | |
[2] | During the three months ended June 30, 2019 , the Company granted 2.0 million cash-settled share-appreciation rights ("CSARs"). The CSARs are revalued each reporting period until settlement using a closed-form option pricing model (Black Scholes). |
Restructuring and Other (Restru
Restructuring and Other (Restructuring and Other) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other | $ 5.6 | $ 10.5 | |
Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other | [1] | 4.1 | 0.8 |
Severance | Accounts Payable and Accrued Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Remaining severance liability, expected to be paid in next 12 months | 12.7 | ||
Transaction and related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other | [2] | 1.5 | 9.7 |
Cash | Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other | [1] | 3.8 | 0.8 |
Accelerated vesting on equity awards | Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and other | [1] | $ 0.3 | $ 0 |
[1] | Severance costs in the three months ended June 30, 2019 and 2018 were primarily related to restructuring activities in connection with recent acquisitions, and other cost-saving initiatives. As of June 30, 2019 , the remaining severance liability was approximately $12.7 million , which is expected to be paid in the next 12 months. | ||
[2] | Transaction and related costs in the three months ended June 30, 2019 and 2018 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters. In the three months ended June 30, 2018 , these costs were primarily related to the legal fees associated with the Starz class action lawsuits and other matters, and the acquisition of 3 Arts Entertainment. |
Restructuring and Other (Severa
Restructuring and Other (Severance Liability Rollforward) (Details) - Severance liability - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring and Other Severance Liability | ||
Beginning balance | $ 21.2 | $ 14.7 |
Accruals | 3.8 | 0.8 |
Severance payments | (12.3) | (7.2) |
Ending balance | $ 12.7 | $ 8.3 |
Segment Information (Segment In
Segment Information (Segment Information) (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable business segments | segment | 3 | |
Segment revenues | $ 963.6 | $ 932.7 |
Gross contribution | 146.8 | 207.4 |
Segment general and administration | 55.3 | 62.9 |
Segment profit | 91.5 | 144.5 |
Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Segment general and administration | 55.3 | 62.9 |
Segment profit | 91.5 | 144.5 |
Reportable Segments | Motion Picture | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | 397.8 | 365.3 |
Gross contribution | 32.9 | 78.5 |
Segment general and administration | 25.3 | 26.9 |
Segment profit | 7.6 | 51.6 |
Reportable Segments | Television Production | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | 279.8 | 279.4 |
Gross contribution | 34.7 | 26 |
Segment general and administration | 9.7 | 10.4 |
Segment profit | 25 | 15.6 |
Reportable Segments | Media Networks | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | 372.4 | 354.9 |
Gross contribution | 80.9 | 114.1 |
Segment general and administration | 20.3 | 25.6 |
Segment profit | 60.6 | 88.5 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | (86.4) | (66.9) |
Gross contribution | (1.7) | (11.2) |
Segment profit | (1.7) | (11.2) |
Intersegment Eliminations | Motion Picture | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | (4.4) | (2.1) |
Intersegment Eliminations | Television Production | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | (81.4) | (64.8) |
Intersegment Eliminations | Media Networks | ||
Segment Reporting Information [Line Items] | ||
Segment revenues | $ (0.6) | $ 0 |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Total Segment Profit To The Company's Loss Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting Information [Line Items] | |||
Company’s total segment profit | $ 91.5 | $ 144.5 | |
Adjusted depreciation and amortization | [1] | (10.7) | (10.3) |
Restructuring and other | (5.6) | (10.5) | |
Adjusted share-based compensation expense | (9.2) | (15.1) | |
Operating income (loss) | (3.2) | 38.2 | |
Interest expense | (49) | (51.3) | |
Interest and other income | 2.8 | 3 | |
Other expense | (2.3) | 0 | |
Gain (loss) on investments | 0.1 | (0.9) | |
Equity interests loss | (7.9) | (6.2) | |
Loss before income taxes | (59.5) | (17.2) | |
Operating segments | |||
Segment Reporting Information [Line Items] | |||
Company’s total segment profit | 91.5 | 144.5 | |
Corporate general and administrative expense | |||
Segment Reporting Information [Line Items] | |||
Corporate general and administrative expenses | (24.2) | (27.6) | |
Corporate and reconciling items | |||
Segment Reporting Information [Line Items] | |||
Restructuring and other | [2] | (5.6) | (10.5) |
Adjusted share-based compensation expense | [3] | (9.2) | (15.1) |
Purchase accounting and related adjustments | [4] | $ (45) | $ (42.8) |
[1] | Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Three Months Ended June 30, 2019 2018 (Amounts in millions) Depreciation and amortization $ 40.1 $ 40.3 Less: Amount included in purchase accounting and related adjustments (29.4 ) (30.0 ) Adjusted depreciation and amortization $ 10.7 $ 10.3 | ||
[2] | Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 14 ). | ||
[3] | The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Three Months Ended June 30, 2019 2018 (Amounts in millions) Total share-based compensation expense $ 9.5 $ 15.1 Less: Amount included in restructuring and other (i) (0.3 ) — Adjusted share-based compensation $ 9.2 $ 15.1 (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. | ||
[4] | Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended June 30, 2019 2018 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 1.5 $ 8.0 General and administrative expense 14.1 4.8 Depreciation and amortization 29.4 30.0 $ 45.0 $ 42.8 |
Segment Information (Adjusted D
Segment Information (Adjusted Depreciation and Amortization) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Depreciation and amortization | $ 40.1 | $ 40.3 | |
Adjusted depreciation and amortization | [1] | 10.7 | 10.3 |
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 | $ (29.4) | $ (30) | |
[1] | Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Three Months Ended June 30, 2019 2018 (Amounts in millions) Depreciation and amortization $ 40.1 $ 40.3 Less: Amount included in purchase accounting and related adjustments (29.4 ) (30.0 ) Adjusted depreciation and amortization $ 10.7 $ 10.3 |
Segment Information (Adjusted S
Segment Information (Adjusted Share-Based Compensation) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Share-based compensation expense | $ 9.5 | $ 15.1 | |
Adjusted share-based compensation | 9.2 | 15.1 | |
Corporate and reconciling items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Adjusted share-based compensation | [1] | 9.2 | 15.1 |
General and administrative expense | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Share-based compensation expense | 9 | 14.9 | |
Restructuring and other | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Share-based compensation expense | 0.3 | 0 | |
Restructuring and other | Corporate and reconciling items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Amount included in restructuring and other | [2] | $ (0.3) | $ 0 |
[1] | The following table reconciles total share-based compensation expense to adjusted share-based compensation expense: Three Months Ended June 30, 2019 2018 (Amounts in millions) Total share-based compensation expense $ 9.5 $ 15.1 Less: Amount included in restructuring and other (i) (0.3 ) — Adjusted share-based compensation $ 9.2 $ 15.1 (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] | 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) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Corporate and reconciling items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Purchase accounting and related adjustments | [1] | $ 45 | $ 42.8 |
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 | 1.5 | 8 | |
General and administrative expense | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Purchase accounting and related adjustments | 14.1 | 4.8 | |
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 | 14.1 | 4.8 | |
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 | $ 29.4 | $ 30 | |
[1] | Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended June 30, 2019 2018 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 1.5 $ 8.0 General and administrative expense 14.1 4.8 Depreciation and amortization 29.4 30.0 $ 45.0 $ 42.8 |
Segment Information (Reconcil_2
Segment Information (Reconciliation of Segment General and Administration to Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Segment general and administrative expenses | $ 55.3 | $ 62.9 | |
General and administration | 102.6 | 110.2 | |
Operating segments | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Segment general and administrative expenses | 55.3 | 62.9 | |
Corporate general and administrative expense | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Corporate general and administrative expenses | 24.2 | 27.6 | |
Corporate and reconciling items | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Purchase accounting and related adjustments | [1] | 45 | 42.8 |
General and administrative expense | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Purchase accounting and related adjustments | 14.1 | 4.8 | |
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 | 9 | 14.9 | |
Purchase accounting and related adjustments | $ 14.1 | $ 4.8 | |
[1] | Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended June 30, 2019 2018 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 1.5 $ 8.0 General and administrative expense 14.1 4.8 Depreciation and amortization 29.4 30.0 $ 45.0 $ 42.8 |
Segment Information (Reconcil_3
Segment Information (Reconciliation of Total Assets By Segment to Consolidated Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 8,437.3 | $ 8,408.9 | |
Operating segments | Motion Picture | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,648.4 | 1,694.5 | |
Operating segments | Television Production | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,593.2 | 1,394.2 | |
Operating segments | Media Networks | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 4,712.2 | 4,850.3 | |
Other unallocated assets | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [1] | $ 483.5 | $ 469.9 |
[1] | Other unallocated assets primarily consist of cash, other assets and investments. |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - Fiduciary Litigation $ in Millions | Oct. 09, 2018USD ($) | Aug. 30, 2016class_action_complaint | Dec. 31, 2018USD ($) | Nov. 05, 2018USD ($) |
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | class_action_complaint | 7 | |||
Settlement payment amount | $ 92.5 | |||
Insurance reimbursement, amount | $ 37.8 | |||
Lawsuit for insurance reimbursement, amount | $ 10 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jul. 31, 2018 | Jun. 25, 2018 | May 23, 2018 | |
Derivative [Line Items] | |||||
Remaining maturity of forward foreign exchange contracts, maximum | 9 months | ||||
Interest rate swap cash flow hedge loss estimated to be reclassified into earnings during next 12 months | $ 17.3 | ||||
Interest rate swap agreements | |||||
Derivative [Line Items] | |||||
Notional amount | 1,700 | $ 1,700 | $ 300 | $ 200 | $ 1,000 |
Maximum | |||||
Derivative [Line Items] | |||||
Foreign currency cash flow hedge gains estimated to be reclassified into earnings during next 12 months | $ 0.1 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Forward Foreign Exchange Contracts) (Details) - Forward exchange contracts £ in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | Jun. 30, 2019USD ($) | Jun. 30, 2019AUD ($) | Jun. 30, 2019MXN ($) | Jun. 30, 2019CAD ($) | Jun. 30, 2019GBP (£) |
British Pounds 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 |
Canada, Dollars | |||||
Derivative [Line Items] | |||||
Foreign Currency Amount | $ 21.1 | ||||
US Dollar Amount | $ 16.5 | ||||
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 | $ 2.8 | ||||
Weighted average exchange rate per $1 USD | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 |
Mexico, Pesos | |||||
Derivative [Line Items] | |||||
Foreign Currency Amount | $ 109.7 | ||||
US Dollar Amount | $ 5.7 | ||||
Weighted average exchange rate per $1 USD | 19.27 | 19.27 | 19.27 | 19.27 | 19.27 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Forward Interest Rate Swap Agreements) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 24, 2018 | Jul. 31, 2018 | Jun. 25, 2018 | May 23, 2018 |
Interest rate swap agreements | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 1,700 | $ 1,700 | $ 300 | $ 200 | $ 1,000 | |
Fixed Rate Paid | 2.885% | 2.723% | 2.915% | |||
Interest rate swap agreements - fixed rate paid 2.744% | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 50 | |||||
Fixed Rate Paid | 2.744% | |||||
Interest rate swap agreements - fixed rate paid 2.808% | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 100 | |||||
Fixed Rate Paid | 2.808% | |||||
Interest rate swap agreements - fixed rate paid 2.728% | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 50 | |||||
Fixed Rate Paid | 2.728% |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities (Forward Contracts Effect on Statement of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total direct operating expense on consolidated statements of operations | $ 568 | $ 530 | |
Total interest expense on consolidated statements of operations | [1] | 49 | 35.4 |
Direct operating | Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in direct operating expense | 0 | (0.7) | |
Forward exchange contracts | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in accumulated other comprehensive income (loss) | 0 | 0 | |
Gain reclassified from accumulated other comprehensive income (loss) into direct operating expense | 1.1 | 0 | |
Interest rate swap agreements | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in accumulated other comprehensive income (loss) | (45.9) | (6.8) | |
Loss reclassified from accumulated other comprehensive income (loss) into interest expense | $ (1.8) | $ (0.9) | |
[1] | Represents interest expense before interest on dissenting shareholders' liability. |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities (Forward Contracts by Balance Sheet Location) (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 1.4 | $ 1.5 |
Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 0.5 | 0.6 |
Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 109.5 | 63.6 |
Forward exchange contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 1.4 | 1.5 |
Forward exchange contracts | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 0.5 | 0.6 |
Forward exchange contracts | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 0 | 0 |
Interest rate swap agreements | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 0 | 0 |
Interest rate swap agreements | Accounts Payable and Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 0 | 0 |
Interest rate swap agreements | Other Non-Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | $ 109.5 | $ 63.6 |
Additional Financial Informat_3
Additional Financial Information (Other Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | |
Other current assets | |||
Prepaid expenses and other | $ 68.3 | $ 150.6 | |
Product inventory | 18.6 | 19.9 | |
Tax credits receivable | 91.7 | 96.7 | |
Other current assets | 178.6 | 267.2 | |
Other non-current assets | |||
Prepaid expenses and other | 43.8 | 109.2 | |
Accounts receivable | [1] | 232.6 | 176.1 |
Tax credits receivable | 173 | 150.8 | |
Operating lease right-of-use assets | 151.5 | 0 | |
Other non-current assets | $ 600.9 | $ 436.1 | |
[1] | Included in accounts receivable within non-current other assets in the unaudited condensed consolidated balance sheets. |
Additional Financial Informat_4
Additional Financial Information (Non-cash Investing and Financing Activities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Additional Financial Information [Abstract] | ||
Common shares related to business acquisitions | $ 28.1 | $ 83.7 |
Accrued dividends | $ 0 | $ 19.2 |
Additional Financial Informat_5
Additional Financial Information (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 2,921.9 | $ 3,156.9 |
Other comprehensive loss | (45) | (11.2) |
Ending balance | 2,855 | 3,202.7 |
Foreign currency translation adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (18.2) | |
Other comprehensive loss | 0.9 | |
Ending balance | (17.3) | |
Net unrealized gain (loss) on cash flow hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (62.1) | |
Other comprehensive loss | (45.9) | |
Ending balance | (108) | |
Accumulated other comprehensive loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (80.3) | (9.7) |
Other comprehensive loss | (45) | (11.2) |
Ending balance | $ (125.3) | $ (23.5) |
Additional Financial Informat_6
Additional Financial Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||
Restricted cash | $ 0 | $ 0 |
Trade Accounts Receivable | ||
Transfer of Financial Assets Accounted for as Sales [Line Items] | ||
Receivables monetized, amount derecognized | 374.5 | |
Cash proceeds from transfer of receivables | 372.2 | |
Loss recorded | 2.3 | |
Derecognized accounts receivable for which the Company continues to service, amount outstanding | $ 394 | $ 350.6 |
Uncategorized Items - lgf201963
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 18,700,000 |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 18,700,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (2,600,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 21,300,000 |