Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2018shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | DHX Media Ltd. |
Entity Central Index Key | 1,490,186 |
Current Fiscal Year End Date | --06-30 |
Entity Current Reporting Status | Yes |
Document Type | 40-F |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 34,783,382,000 |
Consolidated Balance Sheet
Consolidated Balance Sheet - CAD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets | ||
Cash | $ 46,550 | $ 62,143 |
Cash held in trust (note 12(c)(iv)) | 0 | 239,877 |
Amounts receivable (note 6) | 251,538 | 245,033 |
Prepaid expenses and other | 8,580 | 10,092 |
Investment in film and television programs (note 7) | 186,008 | 195,180 |
Current assets | 492,676 | 752,325 |
Long-term amounts receivable (note 6) | 18,789 | 26,502 |
Property and equipment (note 9) | 30,436 | 30,996 |
Goodwill (note 11) | 240,806 | 240,534 |
Assets | 1,476,792 | 1,761,705 |
Current liabilities | ||
Bank indebtedness (note 12) | 16,350 | 0 |
Accounts payable and accrued liabilities | 130,545 | 178,365 |
Deferred revenue | 47,552 | 50,949 |
Interim production financing (note 12) | 93,683 | 101,224 |
Current portion of long-term debt and obligations under finance leases (note 12) | 10,524 | 234,876 |
Current liabilities | 298,654 | 565,414 |
Long-term debt and obligations under finance leases (note 12) | 746,046 | 748,459 |
Other long-term liabilities | 13,621 | 17,420 |
Deferred income taxes (note 15) | 17,679 | 14,559 |
Liabilities | 1,076,000 | 1,345,852 |
Equity attributable to Shareholders of the Company | 315,078 | 329,297 |
Non-controlling interest | 85,714 | 86,556 |
Total Shareholders’ Equity | 400,792 | 415,853 |
Equity and liabilities | 1,476,792 | 1,761,705 |
Commitments And Contingencies1 | ||
Acquired and library content (note 8) | ||
Current assets | ||
Acquired and library content and Intangible assets | 147,088 | 155,940 |
Intangible assets (note 10) | ||
Current assets | ||
Acquired and library content and Intangible assets | $ 546,997 | $ 555,408 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - CAD ($) $ in Thousands | Total | Contributed surplus | Accumulated other comprehensive income (loss) | Retained earnings (deficit) | Non-controlling interest | Common sharesCommon Shares |
Beginning balance at Jun. 30, 2016 | $ 336,835 | $ 20,488 | $ (20,286) | $ 33,805 | $ 0 | $ 302,828 |
Net income (loss) for the year | (3,634) | (3,634) | ||||
Other comprehensive income (loss) for the year | (1,310) | (1,310) | ||||
Comprehensive income (loss) for the year | (4,944) | (1,310) | (3,634) | |||
Common shares issued (note 13) | 309 | (45) | 354 | |||
Dividends reinvested and paid | (8,770) | (9,908) | 1,138 | |||
Share-based compensation (note 13) | 5,867 | 5,867 | ||||
Non-controlling interest on acquisition of subsidiaries (note 5) | 86,556 | 86,556 | ||||
Ending balance at Jun. 30, 2017 | 415,853 | 26,310 | (21,596) | 20,263 | 86,556 | 304,320 |
Net income (loss) for the year | (6,748) | (14,060) | 7,312 | |||
Other comprehensive income (loss) for the year | 6,978 | 6,978 | ||||
Comprehensive income (loss) for the year | 230 | 6,978 | (14,060) | 7,312 | ||
Common shares issued (note 13) | 228 | (200) | 428 | |||
Dividends reinvested and paid | (10,315) | (10,734) | 419 | |||
Share-based compensation (note 13) | 2,950 | 2,950 | ||||
Non-controlling interest on acquisition of subsidiaries (note 5) | 4,036 | 4,036 | ||||
Distributions to non-controlling interests | (12,190) | (12,190) | ||||
Ending balance at Jun. 30, 2018 | $ 400,792 | $ 29,060 | $ (14,618) | $ (4,531) | $ 85,714 | $ 305,167 |
Consolidated Statement of Incom
Consolidated Statement of Income (Loss) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statements Of Income [Line Items] | ||
Revenues (note 23) | $ 434,416 | $ 298,712 |
Expenses (note 17) | ||
Direct production costs and expense of film and television produced | 244,244 | 143,112 |
Amortization of property and equipment and intangible assets | 24,174 | 17,565 |
Development, integration and other | 10,554 | 3,435 |
Acquisition costs (note 5) | 0 | 9,695 |
Write-down of investment in film and television programs and acquired and library content and impairment of intangible assets (notes 7,8,10) | 10,968 | 1,540 |
Selling, general and administrative | 86,200 | 74,133 |
Finance expense (note 16) | 58,956 | 42,978 |
Finance income (note 16) | (12,398) | (2,524) |
Expenses | 439,673 | 300,475 |
Loss before income taxes | (5,257) | (1,763) |
Current income taxes (note 15) | 2,166 | 5,991 |
Deferred income taxes (note 15) | (675) | (4,120) |
Provision for (recovery of) income taxes | 1,491 | 1,871 |
Net loss for the year | (6,748) | (3,634) |
Net income attributable to non-controlling interests | 7,312 | 0 |
Net loss attributable to Shareholders of the Company | $ (14,060) | $ (3,634) |
Basic loss per common share (note 21) (in CAD per share) | $ (0.10) | $ (0.03) |
Diluted loss per common share (note 21) (in CAD per share) | $ (0.10) | $ (0.03) |
Acquired and library content | ||
Expenses (note 17) | ||
Amortization of acquired and library content (note 8) | $ 15,916 | $ 10,541 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of comprehensive income [abstract] | ||
Net loss for the year | $ (6,748) | $ (3,634) |
Items that may be subsequently reclassified to the statement of income (loss) | ||
Foreign currency translation adjustment | 6,978 | (1,310) |
Comprehensive income (loss) for the year | $ 230 | $ (4,944) |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows Statement - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash provided by (used in) Operating activities | ||
Net loss for the year | $ (6,748) | $ (3,634) |
Charges (credits) not involving cash | ||
Amortization of property and equipment | 8,828 | 6,186 |
Write-down of intangible assets | 1,059 | 0 |
Unrealized foreign exchange loss | (3,295) | 2,637 |
Amortization of deferred financing fees | 4,992 | 1,682 |
Accretion on tangible benefit obligation | 539 | 651 |
Debt extinguishment charge | 0 | 6,990 |
Share-based compensation | 2,950 | 5,867 |
Accretion on Senior Unsecured Convertible Debentures | (1,586) | 0 |
Amortization of debt premium | 0 | 118 |
Movement in the fair value of embedded derivatives | (11,251) | (1,968) |
Deferred tax recovery | (675) | (4,120) |
Write-down of acquired and library content | 3,402 | 363 |
Write-down of investment in film and television programs | 7,566 | 1,177 |
Net investment in film and television programs (note 22) | 4,471 | (57,235) |
Net change in non-cash balances related to operations (note 22) | (31,322) | 12,830 |
Cash provided by (used in) operating activities | 13,364 | (6,536) |
Financing activities | ||
Dividends | (10,315) | (8,770) |
Common shares issued | 228 | 309 |
Proceeds from bank indebtedness | 16,350 | 0 |
Proceeds from (repayment of) interim production financing | (7,541) | 9,221 |
Distributions to non-controlling interests | (12,190) | 0 |
Payment of debt issue costs | (539) | (32,340) |
Decrease (increase) in cash held in trust | 239,877 | (239,877) |
Proceeds from long-term debt | 0 | 782,362 |
Repayment of long-term debt and obligations under finance leases | (236,763) | (73,623) |
Cash (used in) provided by financing activities | (10,893) | 437,282 |
Investing activities | ||
Business acquisitions, net of cash acquired (note 5) | (7,641) | (439,014) |
Acquisition of property and equipment | (2,426) | (5,618) |
Acquisition/cost of intangible assets | (8,539) | (4,332) |
Cash used in investing activities | (18,606) | (448,964) |
Effect of foreign exchange rate changes on cash | 542 | (85) |
Net change in cash during the year | (15,593) | (18,303) |
Cash - Beginning of year | 62,143 | 80,446 |
Cash - End of year | 46,550 | 62,143 |
Intangible Assets | ||
Charges (credits) not involving cash | ||
Amortization of intangible assets | 15,346 | 11,379 |
Write-down of intangible assets | 1,059 | |
Acquired and library content | ||
Charges (credits) not involving cash | ||
Amortization of intangible assets | 15,916 | 10,541 |
Write-down of acquired and library content | $ 3,402 | $ 363 |
Nature of business
Nature of business | 12 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Nature of business | Nature of business DHX Media Ltd. (the “Company”) is a public company, and the ultimate parent, whose common shares are traded on the Toronto Stock Exchange (“TSX”), admitted on May 19, 2006, under the symbol DHX. On June 23, 2015, the Company commenced trading its Variable Voting Shares on the NASDAQ Global Trading Market (“NASDAQ”) under the symbol DHXM. The Company, incorporated on February 12, 2004 under the laws of the Province of Nova Scotia, Canada, and continued on April 25, 2006 under the Canada Business Corporation Act, develops, produces and distributes films and television programs for the domestic and international markets; licenses its brands in the domestic and international markets; broadcasts films and television programs in the domestic market; and manages copyrights, licensing and brands for third parties. The address of the Company’s head office is 1478 Queen Street, Halifax, Nova Scotia, Canada, B3J 2H7. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of preparation | Basis of preparation The Company prepares its consolidated financial statements (the “financial statements”) in accordance with Canadian generally accepted accounting principles (“GAAP”) as set out in the Chartered Professional Accountants of Canada Handbook - Accounting - Part 1 (“CPA Canada Handbook”), which incorporates International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements have been authorized for issuance by the Board of Directors on September 24, 2018 . |
Significant accounting policies
Significant accounting policies, judgments and estimation uncertainty | 12 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Significant accounting policies, judgments and estimation uncertainty | Significant accounting policies, judgments and estimation uncertainty The significant accounting policies used in the preparation of these financial statements are described below: Basis of measurement The consolidated financial statements have been prepared under a historical cost basis, except for certain financial assets and financial liabilities, including derivative instruments that are measured at fair value. Consolidation The consolidated financial statements include the accounts of DHX Media Ltd. and all of its subsidiaries. The consolidated financial statements of all subsidiaries are prepared for the same reporting period, using consistent accounting policies. Intercompany accounts, transactions, income and expenses and unrealized gains and losses resulting from transactions among the consolidated companies have been eliminated upon consolidation. Subsidiaries are those entities, including structured entities, which the Company controls. Consistent with other entities in the film and television industry, the Company utilizes structured entities as a vehicle to create and fund some of its film and television projects. When the Company makes substantive decisions on creation of the content and financing within the structured entities it consolidates them. For accounting purposes, control is established by the Company when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is obtained by the Company and are de-consolidated from the date that control ceases. Non-controlling interest represents the portion of a subsidiary's earning and losses and net assets that is not held by the Company. If losses in a subsidiary applicable to a non-controlling interest exceed the non-controlling interest in the subsidiary's equity, the excess is allocated to the non-controlling interest except to the extent that the majority has a binding obligation and is able to cover the losses. Foreign currency translation (i) Functional and presentation currency Items included in the consolidated financial statements of each consolidated entity of the Company are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). Primary and secondary indicators are used to determine the functional currency (primary indicators have priority over secondary indicators). The primary indicator which applies to the Company is the currency that mainly influences revenues and expenses. Secondary indicators include the currency in which funds from financing activities are generated. The Company operates material subsidiaries in three currency jurisdictions including the Canadian dollar, the US dollar, and the UK pound sterling. An assessment of the primary and secondary indicators for each subsidiary is performed to determine the functional currency of the subsidiary, which are then translated to Canadian dollars, the Company's presentation currency. The financial statements of consolidated entities that have a functional currency other than Canadian dollars (“foreign operations”) are translated into Canadian dollars as follows: (a) assets and liabilities - at the closing rate at the date of the balance sheet; and (b) income and expenses - at the average rate for the period. All resulting exchange differences are recognized in other comprehensive income as foreign currency translation adjustments. When the Company disposes of its entire interest in a foreign operation, or loses control, joint control, or significant influence over a foreign operation, the foreign currency gains or losses accumulated in other comprehensive income related to the foreign operation are recognized in profit or loss. If the Company disposes of part of an interest in a foreign operation which remains a subsidiary, a proportionate amount of foreign currency gains or losses accumulated in other comprehensive income related to the subsidiary is reallocated between controlling and non-controlling interests. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation, at year-end exchange rates, of monetary assets and liabilities denominated in currencies other than the functional currency are recognized in the consolidated statement of income (loss). Revenue recognition Revenue from the licensing of film and television programs is recognized when: (a) the production has been completed; (b) the contractual delivery arrangements have been satisfied and the Company retains neither continuing managerial involvement to the degree usually associated with the ownership nor effective control over the goods sold; (c) the customer has access to the production and can benefit from the content; (d) the amount of revenue can be measured reliably; (e) collectability of proceeds is probable; and (f) the costs incurred or to be incurred in respect of the contractual arrangement can be measured reliably. Cash payments received or advances currently due pursuant to a broadcast license or distribution arrangement are recorded as deferred revenue until all of the foregoing conditions of revenue recognition have been met. Revenue from production services for third parties and other revenue, as appropriate, is recognized on a percentage-of-completion basis. Percentage-of-completion is based upon the proportion of costs incurred in the current period to total expected costs. A provision is made for the entire amount of future estimated losses, if any, on productions-in-progress. Royalty revenue is accrued for royalty streams for which the receipt of revenue is probable and is recognized in accordance with the substance of the relevant agreements and statements received from third party agents. Revenue from live tours is recorded in the period in which the show is performed, the amount of revenue can be reliably measured, the costs incurred or to be incurred can be measured and collectability is reasonably assured. Merchandising revenue is recognized at the point of sale to customers. Revenue from the management of copyrights, licensing and brands for third parties through representation agreements is recognized when the amount of revenue can be reliably measured, the services have been provided and collectability is reasonably assured. Amounts received or advances currently due pursuant to a contractual arrangement, which have not yet met the criteria established to be recognized as revenue, are recorded as deferred revenue. Revenue from the Company's broadcasting business is recognized as follows: (a) subscriber fee revenues are recognized monthly based on estimated subscriber levels for the period-end, which are based on the preceding month's actual subscribed as submitted by the broadcast distribution undertakings; (b) advertising and promotion revenue, net of agency commission where applicable, is recorded when the advertising or promotion airs on the Company's television stations; and (c) other revenues, including sponsorship revenue, as earned. Gross versus net revenue The Company evaluates arrangements with third parties to determine whether revenue should be reported on a gross or net basis under each individual arrangement by determining whether the Company acts as the principal or agent under the terms of each arrangement. To the extent that the Company acts as the principal in an arrangement, revenues are reported on a gross basis, resulting in revenues and expenses being classified in their respective financial statement line items. Conversely, to the extent that the Company acts as the agent in an arrangement, revenues are reported on a net basis, resulting in revenues being presented net of any related expenses. Determining whether the Company acts as principal or agent is based on an evaluation of which party has substantial risks and rewards of ownership under the terms of an arrangement. The most significant factors that the Company considers include identification of the primary obligor, as well as which party has credit risk, general and inventory risk (or equivalent) and latitude in establishing prices. Investment in film and television programs Investment in film and television programs represents the balance of costs of film and television programs which have been produced by the Company or for which the Company has invested in distribution rights and the Company’s right to participate in certain future cash flows of film and television programs produced and distributed by other unrelated parties. Costs of investing in and producing film and television programs are capitalized. The costs are measured net of federal and provincial program contributions earned and are charged to income using a declining balance method of amortization. For film and television programs produced by the Company, capitalized costs include all direct production and financing costs incurred during production that are expected to benefit future periods. Financing costs are capitalized to the costs of a film or television program until substantially all of the activities necessary to prepare the film or television program for delivery are complete. Production financing provided by third parties that acquire participation rights is recorded as a reduction of the cost of the production. The rates used for the declining balance method of amortization range from 40 to 100% at the time of initial episodic delivery and at rates ranging from 10 to 25% annually thereafter. The determination of the rates is based on the expected economic useful life of the film or television program, and includes factors such as the ability to license rights to broadcast rights programs in development and availability of rights to renew licenses for episodic television programs in subsequent seasons, as well as the availability of secondary market revenue. Investments in film and television programs are accounted for as inventory and classified within current assets. The normal operating cycle of the Company can be greater than 12 months. The investment in film and television programs is measured at the lower of cost and net realizable value. The net realizable value is determined using estimates of future revenues net of future costs. A write-down is recorded equivalent to the amount by which the costs exceed the estimated net realizable value of the film or television program. Acquired and library content Acquired and library content represents the balance of acquired film and television programs. Acquired and library content typically has minimal ongoing costs to maintain the content, and is charged to income using a declining balance method of amortization. The rates used for the declining balance method of amortization range from 10 to 20 % annually. The determination of rates is based on the expected economic useful life of the film or television program, and includes factors such as the availability of rights to renew licenses for episodic television programs in various territories, as well as the availability of secondary market revenue. Acquired and library content is accounted for as an intangible asset and classified within long-term assets. Acquired and library content is tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use, being the present value of the expected future cash flows of the asset. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Broadcast rights Program and film rights for broadcasting are purchased on a fixed or variable cost basis. The asset and liability for fixed cost purchases are recognized at the time the rights are known and determinable, and if they are available for airing. The cost of fixed program and film rights is expensed over the lesser of the availability period and the maximum period that varies depending upon the type of program, generally ranging from 24 to 60 months based on the expected pattern of consumption of the economic benefit. Program and film rights for broadcasting acquired on a variable cost basis are not capitalized and their cost is determined and expensed over their contracted exhibition period, on the basis of the average number of subscribers to the network exhibiting the program and of other contracting terms. In the event that the recognition criteria for fixed cost purchases described above are not met and the Company has already paid amounts to obtain future rights, such amounts are considered as prepaid program and film rights and are included as prepaids on the consolidated balance sheet. Any impairment charges are reported as an expense on the consolidated statement of income (loss). Accrued participation payables Included in accounts payable and accrued liabilities are accrued participation payables. Accrued participation payables reflect the legal liability due as at the balance sheet date, calculated as the participation owing on cash collected and accounts receivable. Deferred financing fees and debt issue costs Debt issue costs related to bank indebtedness are recorded as a deferred charge and amortized, using the straight-line method, over the term of the related bank indebtedness and the expense is included in interest expense. Debt issue costs related to long-term debt are recorded as a reduction to the carrying amount of long-term debt and amortized using the effective interest method and the expense is included in finance expense. Business combinations The Company applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred. Any contingent consideration to be transferred by the group is recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognized either in profit or loss or as a change to other comprehensive income. Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity. Goodwill is initially measured as the excess of the aggregate of the fair value of consideration transferred over the fair value of identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss. Development costs Development costs include costs of acquiring film rights to books, stage plays or original screenplays and costs to adapt such projects. Such costs are capitalized and included in investment in film and television programs upon commencement of production. Advances or contributions received from third parties to assist in development are deducted from these costs. Projects in development are written off as development expenses at the earlier of the date determined not to be recoverable or when projects under development are abandoned, or three years from the date of the initial recognition of the investment, if there have been no active development milestones or significant development expenditures within the last year. Property and equipment Property and equipment are carried at historical cost, less accumulated amortization and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost can be measured reliably. The carrying amount of a replaced asset is derecognized when replaced. Repairs and maintenance costs are charged to the consolidated statement of income during the period in which they are incurred. Amortization is provided, commencing when the asset is available for use, over the estimated useful life of the asset, using the following annual rates and methods: Buildings 4% declining balance Furniture, fixtures and other equipment 5% to 20% declining balance Computer equipment 30% declining balance Post-production equipment 30% declining balance Computer software 2 years straight-line Website design 2 years straight-line Leasehold improvements Straight-line over the term of lease The Company allocates the amount initially recognized in respect of an item of property and equipment to its significant parts and depreciates each such part separately. Residual values, method of amortization and useful lives of the assets are reviewed annually and adjusted if appropriate. Gains and losses on disposals of property and equipment are determined by comparing the proceeds with the carrying amount of the asset and are included as part of other gains and losses in the consolidated statement of income (loss). Goodwill Goodwill represents the cost of acquired businesses in excess of the fair value of net identifiable assets acquired at the date of acquisition. Goodwill is carried at cost less any accumulated impairment losses and is not subject to amortization. Goodwill is tested for impairment annually or more frequently if events or circumstances indicate that the asset might be impaired. Goodwill is allocated to a cash generating unit (“CGU”), or group of CGUs, which is the lowest level within an entity at which the goodwill is monitored for internal management purposes, which is not higher than an operating segment. Impairment is tested by comparing the recoverable amount of goodwill assigned to a CGU or group of CGUs to its carrying value. Intangible assets Intangible assets are carried at cost. Amortization is provided on a straight-line basis over the estimated useful life of the assets, using the following annual rates and methods: Broadcaster relationships 7 to 10 years straight-line Customer relationships 10 years straight-line Brands 10 to 20 years straight-line or indefinite life Production and distribution rights 10 to 25 years straight-line Production backlog 2 to 3 years straight-line Non-compete contracts 3 years straight-line Production software 5 years straight-line Intangible assets with indefinite life are not amortized. The assessment of whether the underlying asset continues to have an indefinite life is reviewed annually to determine whether an indefinite life continues to be supportable, and if not, the change in useful life from indefinite to finite is made on a prospective basis. Broadcast licenses Broadcast licenses are considered to have an indefinite life based on management’s intent and ability to renew the licenses without significant cost and without material modification of the existing terms and conditions of the license. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. Broadcast licenses are tested for impairment annually or more frequently if events or circumstances indicate that they may be impaired. Broadcast licenses by themselves do not generate cash inflows and therefore, when assessing these assets for impairment, the Company looks to the CGUs to which the asset belongs. Impairment of non-financial assets Property and equipment and intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Long-lived assets that are not amortized are subject to an annual impairment test. For the purposes of measuring recoverable amounts, assets are grouped into CGUs. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use, being the present value of the expected future cash flows of the relevant CGU. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, including investment in films and property and equipment, are added to the cost of those assets, until such time as the assets are substantially complete and ready for use. All other borrowing costs are recognized as a finance expense in the consolidated statement of income in the period in which they are incurred. Government financing and assistance The Company has access to several government programs, including tax credits that are designed to assist film and television production and distribution in Canada. The Company records government assistance when the related costs have been incurred and there is reasonable assurance that they will be realized. Amounts received or receivable in respect of production assistance are recorded as a reduction of the production costs of the applicable production. Government assistance with respect to distribution rights is recorded as a reduction of investment in film and television programs. Government assistance towards current expenses is recorded as a reduction of the applicable expense item. Provisions Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at management’s best estimate of the expenditure required to settle the obligation at the end of the reporting period and are discounted to present value where the effect is material. The Company performs evaluations to identify onerous contracts and, where applicable, records provisions for such contracts. Leases Upon initial recognition, the Company classifies all leases as either a finance lease or an operating lease, depending on the substance of the lease terms. Finance leases are classified as such because they are found to transfer substantially all the rewards incidental to ownership of the asset to the lessee, whereas operating leases are classified as such because they are not found to meet the criteria required for classification as a finance lease. Upon commencement of the lease, finance leases are recorded as assets with corresponding liabilities in the consolidated balance sheet at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The rate used to discount the payments is either the interest rate implicit in the lease or the Company's incremental borrowing rate. The asset is amortized over the shorter of the term of the lease and the useful life of the asset while the liability is decreased by the actual lease payments and increased by any accretion expense. Payments made under operating leases are charged to the consolidated statement of income (loss) on a straight-line basis over the period of the lease. Income taxes The tax expense for the period comprises current and deferred tax. Tax is recognized in the consolidated statement of income (loss), except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantively enacted, at the end of the reporting period, and any adjustment to tax payable in respect of previous periods. Deferred tax is recognized in respect of temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the financial statements, as well as the benefit of losses that are probable to be realized and are available for carry forward to future years to reduce income taxes. Deferred income tax is determined on a non-discounted basis using tax rates and laws that have been enacted or substantively enacted at the balance sheet date and are expected to apply when the deferred tax asset or liability is settled. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that the assets can be recovered. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable earnings will be available to allow all or part of the asset to be recovered. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except, in the case of subsidiaries, where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. The effect of a change in tax rates on deferred tax assets and liabilities is included in earnings in the period that the change is substantively enacted, except to the extent it relates to items previously recognized outside earnings in which case the rate change impact is recognized in a manner consistent with how the items were originally recognized. Deferred income tax assets and liabilities are presented as non-current. Share-based compensation The Company grants stock options to certain directors, officers, employees and consultants of the Company. Stock options vest over periods of up to 4 years and expire after 5 to 7 years. Each vesting tranche of stock options is considered a separate award with its own vesting period and estimated grant date fair value. The estimated grant date fair value of each vesting tranche is estimated using the Black-Scholes option pricing model. The non-cash compensation expense is recognized over each tranche’s vesting period by increasing contributed surplus based on the number of awards expected to vest. The number of awards expected to vest is reviewed at least annually with any impact being recognized immediately. The Company also grants performance share units ("PSUs") to certain eligible employees. PSUs are granted at the discretion of the Board based on a notional equity value of the common shares of the Company tied to a specified formula. The number of PSUs that ultimately vest under each grant is dependent on continued employment for a period of time and the achievement of specific performance measures. On the vesting date, each employee will receive common shares as settlement; accordingly, grants of PSUs are accounted for as equity settled instruments. The Company recognizes compensation expense offset by contributed surplus equal to the estimated grant date fair value of the PSUs granted on a straight-line basis over the applicable vesting period, taking into consideration forfeiture estimates. Compensation expense is adjusted prospectively for subsequent changes in management’s estimate of the number of PSUs that are expected to vest. Earnings per share Basic earnings per share (“EPS”) is calculated by dividing the net income for the period attributable to equity owners of the Company by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated by adjusting the weighted average number of common shares outstanding for potentially dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method. The Company’s potentially dilutive common shares comprise stock options, PSUs and the Senior Unsecured Convertible Debentures. Financial instruments Financial instruments are classified as follows: • Financial assets classified as "Available-for-Sale" are recognized initially at fair value plus transaction costs and are subsequently carried at fair value with the changes in fair value recorded in other comprehensive income. Available-for-Sale assets are classified as non-current, unless the investment matures or management expects to dispose of them within twelve months. • Derivative financial instruments are classified as “Held-for-Trading” and recognized initially on the balance sheet at fair value. Financial assets classified as Held-for-Trading are recognized at fair value with the changes in fair value recorded in net income. • Cash, cash held in trust, trade receivables and long-term amounts receivables are classified as “Loans and Receivables”. After their initial fair value measurement, they are measured at amortized cost using the effective interest method, less a provision for impairment, established on an account-by-account basis, based on, among other factors, prior experience and knowledge of the specific debtor and management’s assessment of the current economic environment. • Accounts payable and accrued liabilities, interim production financing, long-term debt, special warrants and other liabilities are classified as “Other Financial Liabilities”, and are initially recognized at fair value less transaction costs. Subsequent to initial recognition, Other Financial Liabilities are measured at amortized cost using the effective interest method. Impairment of financial assets At each reporting date, the Company assesses whether there is objective evidence that a financial asset is impaired. A significant or prolonged decline in the fair value of the security below its cost is evidence that the asset is impaired. If such evidence exists, the Company recognizes an impairment loss, as follows: • Financial assets carried at amortized cost: The loss is the difference between the amortized cost of the loan or receivable and the present value of the estimated future cash flows, discounted using the instrument’s original effective interest rate. The carrying amount of the asset is reduced by this amount either directly or indirectly through the use of an allowance account. • Available-for-Sale financial assets: The impairment loss is the difference between the original cost of the asset and its fair value at the measurement date, less any impairment losses previously recognized in the statement of income. This amount represents the cumulative loss in accumulated other comprehensive income that is reclassified to net income. Impairment losses on financial assets carried at amortized cost and Available-for-Sale financial assets are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. Impairment losses on available-for-sale equity instruments are not reversed. Dividend distribution Dividend distribution to the Company’s shareholders is recognized as a liability in the financial statements in the period in which the dividends are approved by the Board of Directors. Tangible benefit obligation As part of the Canadian Radio-Television and Telecommunications Commission (“CRTC”) decision approving the Company’s acquisition of 8504601 Canada Inc. (“DHX Television”) on July 31, 2014, the Company is required to contribute $ 17,313 to provide tangible benefits to the Canadian broadcasting system over seven years from the date of acquisition. The tangible benefit obligation was initially recorded in the consolidated statement of income at the estimated fair value on the date of acquisition, being the sum of the discounted future net cash flows and the same amount was recorded as a liability at the date of acquisition of DHX Television. The tangible benefit obligation is being adjusted for the incurrence of related expenditures, the passage of time and for revisions to the timing of the cash flows. Changes in the obligation (other than incurred expenditures) are recorded as finance expense in the consolidated statement of income (loss). Cash and cash equivalents Cash and cash equivalents consist of current |
Compensation of key management
Compensation of key management | 12 Months Ended |
Jun. 30, 2018 | |
Related Party [Abstract] | |
Compensation of key management | Compensation of key management Key management includes all directors, including both executive and non-executive directors, as well as the Executive Chairman and Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief Commercial Officer and President. The compensation earned by key management is as follows: 2018 2017 $ $ Salaries and employee benefits 4,205 2,694 Share-based compensation 2,146 2,738 Termination benefits 2,899 — 9,250 5,432 |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations1 [Abstract] | |
Acquisitions | Acquisitions i) On September 15, 2017, the Company acquired 51% of the outstanding shares of Egg Head Studios LLC ("Ellie Sparkles"), which owns and produces proprietary kids and family content and operates a kids and family focused YouTube channel, for consideration as follows: • Cash consideration US $3,570 ( $4,350 ) paid at closing, subject to a customary working capital adjustment; and • Two performance based earn-outs, each in the amount of up to US $1,000 ( $1,218 ) which, subject to achieving performance based targets, may become payable on the first and second anniversaries of closing. Subsequent to year end, it was determined that $ nil would be payable in relation to the first anniversary performance based target. The acquisition of Ellie Sparkles was accounted for using the purchase method and as such, the results of operations reflect revenue and expenses of Ellie Sparkles since September 15, 2017. The purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair values as follows: $ Assets Cash 122 Acquired and library content 8,406 Total identifiable net assets at fair value 8,528 Non-controlling interest 4,178 Purchase consideration transferred 4,350 The Company finalized the purchase price allocation during the year. There was no impact to net income previously reported as a result of finalizing the purchase price allocation. ii) On June 30, 2017 (“IED Effective Date”), the Company acquired all of the entertainment division of Iconix Brand Group, Inc. (“IED”), which includes an 80% controlling interest in Peanuts and a 100% interest in Strawberry Shortcake for consideration of US $349,132 ( $453,070 ), consisting of US $345,000 ( $447,707 ) paid at closing for the purchase price and a working capital adjustment of US $4,132 ( $5,363 ), of which US $1,503 ( $1,950 ) was paid at closing, and US $2,629 ( $3,413 ) of which was paid during the period. Specifically, the acquisition of IED consisted of two Membership Interest Purchase Agreements which provided for the acquisition of an 80% interest in Peanuts Holdings LLC (including all subsidiaries) ("Peanuts"), a 100% interest in IBGNYC LLC (including all subsidiaries), a 100% interest in IBGSCREEN LLC, and a 100% interest in Shortcake IP Holdings LLC. The acquisition of IED was funded in conjunction with a refinancing (the “Refinancing”) of all the Company’s existing senior secured credit facilities (the "Former Senior Secured Credit Facilities") and existing senior unsecured notes (the "Senior Unsecured Notes"). The Company also entered into a new senior secured credit agreement (the "Senior Secured Credit Agreement") and completed an offering (the "Offering") of subscription receipts (the "Subscription Receipts"), which commensurate with the closing of the acquisition of IED on June 30, 2017 were automatically converted into special warrants (the "Special Warrants"), and effective October 1, 2017 were automatically exercised, for no additional consideration, into Senior Unsecured Convertible Debentures. The details of the Refinancing are further described in note 12. The remaining 20% interest in Peanuts Holdings LLC (including all subsidiaries) continues to be held by members of the family of Charles M. Schulz. In addition to its 20% interest in Peanuts Holdings LLC (including all subsidiaries), the family of Charles M. Schulz is also entitled to receive an additional fee based on the revenues less shareable costs of Peanuts Worldwide LLC, a subsidiary of Peanuts Holdings LLC, which for the year ended June 30, 2018 was $54,082 . The goodwill value of $25,149 arising from the acquisition of IED is attributable to the Company’s ability to further develop the Peanuts and Strawberry Shortcake properties in new ways; the increased size and scale of the combined consumer products and licensing businesses; synergies related to the Company’s CPLG business, which manages copyrights, licensing and brands; and the value of the assembled workforce. Goodwill is measured as the excess of the consideration transferred and the amount of non-controlling interests over the estimated fair value of the identifiable assets acquired and the liabilities assumed. The acquisition of IED was accounted for using the purchase method; and as such, the results of operations reflect the revenues and expenses of IED since June 30, 2017. The purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair values as follows: $ Assets Cash 12,754 Amounts receivable 24,367 Prepaid expenses and deposits 1,787 Long-term receivables 8,661 Acquired and library content 74,618 Property and equipment 104 Intangible assets - brands 422,012 Goodwill 25,149 569,452 Liabilities Accounts payable and accrued liabilities 10,938 Deferred revenue 14,575 Other liabilities 5,148 30,661 Total identifiable net assets at fair value 538,791 Non-controlling interest 85,721 Purchase consideration transferred 453,070 The Company finalized the purchase price allocation during the year. There was no impact to net income previously reported as a result of finalizing the purchase price allocation. Subsequent to June 30, 2018, the Company sold 49% of its 80% ownership interest in Peanuts (see note 24 for further details). iii) On March 3, 2017, the Company acquired 80% of the outstanding shares of Whizzsis Limited ("Kiddyzuzaa"), which owns and produces proprietary kids and family content and operates a kids and family focused YouTube channel, for consideration as follows: • Cash consideration £GBP 1,290 ( $2,121 ) paid at closing, with an additional payment of £GBP 202 ( $333 ) due on the first anniversary of closing and a final payment of £GBP 202 ( $333 ) due on the second anniversary of closing; and • A performance based earn-out of up to £GBP 322 ( $530 ) based on total commercial exploitation over a two -year period following closing. The acquisition of Kiddyzuzaa was accounted for using the purchase method and as such, the results of operations reflect revenue and expenses of Kiddyzuzaa since March 3, 2017. The purchase price has been allocated to the assets acquired and liabilities assumed based on their fair values as follows: $ Assets Cash 10 Acquired and library content 3,484 Goodwill 695 4,189 Liabilities Accounts payable and accrued liabilities 75 Deferred income tax liabilities 631 706 Total identifiable net assets at fair value 3,483 Non-controlling interest 696 Purchase consideration transferred 2,787 The Company finalized the purchase price allocation during the year. There was no impact to net income previously reported as a result of finalizing the purchase price allocation. |
Amounts receivable
Amounts receivable | 12 Months Ended |
Jun. 30, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Amounts receivable | Amounts receivable June 30, June 30, $ $ Trade receivables 163,203 136,755 Less: Provision for impairment of trade receivables (9,742 ) (4,772 ) 153,461 131,983 Goods and services tax recoverable, net 1,203 1,411 Federal and provincial film tax credits and other government assistance 96,874 111,639 Short-term amounts receivable 251,538 245,033 Long-term amounts receivable 18,789 26,502 Total amounts receivable 270,327 271,535 The aging of trade receivables not impaired is as follows: June 30, June 30, $ $ Less than 60 days 131,683 125,081 Between 60 and 90 days 5,863 1,833 Over 90 days 15,915 5,069 153,461 131,983 The Company does not have security over these balances. All impaired trade receivables are older than 90 days. Trade receivables, goods and services taxes recoverable and federal and provincial film tax credits and other government assistance are provided for based on estimated recoverable amounts as determined by using a combination of historical default experience, any changes to credit quality and management estimates. Goods and services taxes recoverable and other government assistance do not contain any significant uncertainty. Provision for impairment of trade receivables: June 30, June 30, $ $ Opening balance 4,772 6,459 Provision for receivables 5,089 3,857 Receivables written off during the period (197 ) (5,300 ) Recoveries of receivables previously provided for (12 ) (94 ) Foreign exchange 90 (150 ) Closing balance 9,742 4,772 |
Investment in film and televisi
Investment in film and television programs | 12 Months Ended |
Jun. 30, 2018 | |
Inventories [Abstract] | |
Investment in film and television programs | Investment in film and television programs June 30, June 30, $ $ Development costs 2,112 1,678 Productions in progress Cost, net of government and third-party assistance 17,577 37,346 Productions completed and released Cost, net of government and third-party assistance 529,494 473,775 Accumulated expense (377,041 ) (343,487 ) Accumulated write-down of investment in film and television programs (15,910 ) (11,131 ) 136,543 119,157 Program and film rights - broadcasting Cost 134,765 120,655 Accumulated expense (102,202 ) (83,656 ) Accumulated write-down of program and film rights (2,787 ) — 29,776 36,999 186,008 195,180 All program and film rights - broadcasting, noted above, relate to DHX Television. The continuity of investment in film and television programs is as follows: June 30, June 30, $ $ Net opening investment in film and television programs 195,180 140,444 Increase in development costs 434 238 Cost of productions (completed and released and productions in progress), net of government assistance and third-party assistance 33,088 88,021 Expense of investment in film and television programs (33,554 ) (24,348 ) Write-down of investment in film and television programs (4,779 ) (1,177 ) Increase of program and film rights - broadcasting 14,110 15,839 Expense of program and film rights - broadcasting (18,546 ) (22,515 ) Write-down of program and film rights - broadcasting (2,787 ) — Foreign exchange 2,862 (1,322 ) 186,008 195,180 During the year ended June 30, 2018, interest of $1,384 (2017 - $2,149 ) has been capitalized to investment in film and television programs. |
Acquired and library content
Acquired and library content | 12 Months Ended |
Jun. 30, 2018 | |
Intangible Assets [Abstract] | |
Acquired and library content | Acquired and library content June 30, June 30, $ $ Net opening acquired and library content 155,940 88,462 Additions IED (note 5) — 74,618 Additions Kiddyzuzaa (note 5) — 3,484 Additions Ellie Sparkles (note 5) 8,406 — Write-down of acquired and library content (3,402 ) (363 ) Amortization (15,916 ) (10,541 ) Foreign exchange 2,060 280 147,088 155,940 Intangible assets All broadcast licenses relate to the operations of DHX Television. Broadcast licenses Broadcaster relationships Customer relationships Brands (1) Production and distribution rights (2) Other (3) Total $ $ $ $ $ $ $ For the year ended June 30, 2017 Opening book value 67,800 1,262 21,653 24,853 25,843 3,199 144,610 IED acquisition (note 5) — — — 422,012 — — 422,012 Additions — — — 969 — — 969 Amortization — (732 ) (2,747 ) (3,177 ) (2,387 ) (2,336 ) (11,379 ) Foreign exchange differences — 1 (226 ) (76 ) (503 ) — (804 ) Net book value 67,800 531 18,680 444,581 22,953 863 555,408 At June 30, 2017 Cost 67,800 7,362 27,920 458,260 30,946 7,327 599,615 Accumulated amortization — (6,875 ) (9,680 ) (13,918 ) (3,551 ) (6,464 ) (40,488 ) Foreign exchange differences — 44 440 239 (4,442 ) — (3,719 ) Net book value 67,800 531 18,680 444,581 22,953 863 555,408 For the year ended June 30, 2018 Opening book value 67,800 531 18,680 444,581 22,953 863 555,408 Additions — — — — — 1,074 1,074 Amortization — (299 ) (2,792 ) (8,899 ) (2,458 ) (898 ) (15,346 ) Impairment — — — (1,059 ) — — (1,059 ) Foreign exchange differences — — 89 6,091 674 66 6,920 Net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 At June 30, 2018 Cost 67,800 7,362 27,920 457,201 30,946 8,401 599,630 Accumulated amortization — (7,174 ) (12,472 ) (22,817 ) (6,009 ) (7,362 ) (55,834 ) Foreign exchange differences — 44 529 6,330 (3,768 ) 66 3,201 Net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 (1) Included in Brands are $350,419 of indefinite life intangibles (2017 - $345,319 ). (2) Productions and distribution rights represent rights acquired by the Company to produce and/or distribute television content where the Company does not own the underlying intellectual properties. (3) Comprised of production backlog, non-compete contracts and production software. |
Property and equipment
Property and equipment | 12 Months Ended |
Jun. 30, 2018 | |
Property, plant and equipment [abstract] | |
Property and equipment | Property and equipment Land Building Furniture, fixtures and equipment Computer equipment Post-production equipment Computer software Leasehold improvements Total $ $ $ $ $ $ $ $ For the year ended June 30, 2017 Opening net book value 4,276 1,792 1,354 2,811 2,917 1,040 3,493 17,683 IED Acquisition — — — 104 — — — 104 Additions — — 1,071 1,087 8,223 344 8,872 19,597 Disposals, net — — — (170 ) — — — (170 ) Transfers, net — 158 — — — — (158 ) — Amortization — (12 ) (314 ) (1,475 ) (2,852 ) (488 ) (1,045 ) (6,186 ) Foreign exchange differences — — — (32 ) — — — (32 ) Net book value 4,276 1,938 2,111 2,325 8,288 896 11,162 30,996 At June 30, 2017 Cost 4,276 2,070 6,281 12,536 13,966 4,896 14,372 58,397 Accumulated amortization — (132 ) (4,178 ) (10,419 ) (5,678 ) (4,056 ) (3,226 ) (27,689 ) Foreign exchange differences — — 8 208 — 56 16 288 Net book value 4,276 1,938 2,111 2,325 8,288 896 11,162 30,996 For the year ended June 30, 2018 Opening net book value 4,276 1,938 2,111 2,325 8,288 896 11,162 30,996 Additions — 73 349 852 6,055 331 616 8,276 Disposals, net — — — — — — (104 ) (104 ) Amortization — (78 ) (738 ) (1,147 ) (4,907 ) (429 ) (1,529 ) (8,828 ) Foreign exchange differences — — 1 84 — 9 2 96 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 At June 30, 2018 Cost 4,276 2,143 6,630 13,388 20,021 5,227 14,884 66,569 Accumulated amortization — (210 ) (4,916 ) (11,566 ) (10,585 ) (4,485 ) (4,755 ) (36,517 ) Foreign exchange differences — — 9 292 — 65 18 384 Net book value 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 As at June 30, 2018, included in the property and equipment net book value were leased computers equipment, post production equipment and computer software in the amount of $1,690 , $6,327 , and $740 respectively, (2017 - $1,733 , $5,787 , and $725 ). |
Intangible assets
Intangible assets | 12 Months Ended |
Jun. 30, 2018 | |
Intangible Assets [Abstract] | |
Intangible assets | Acquired and library content June 30, June 30, $ $ Net opening acquired and library content 155,940 88,462 Additions IED (note 5) — 74,618 Additions Kiddyzuzaa (note 5) — 3,484 Additions Ellie Sparkles (note 5) 8,406 — Write-down of acquired and library content (3,402 ) (363 ) Amortization (15,916 ) (10,541 ) Foreign exchange 2,060 280 147,088 155,940 Intangible assets All broadcast licenses relate to the operations of DHX Television. Broadcast licenses Broadcaster relationships Customer relationships Brands (1) Production and distribution rights (2) Other (3) Total $ $ $ $ $ $ $ For the year ended June 30, 2017 Opening book value 67,800 1,262 21,653 24,853 25,843 3,199 144,610 IED acquisition (note 5) — — — 422,012 — — 422,012 Additions — — — 969 — — 969 Amortization — (732 ) (2,747 ) (3,177 ) (2,387 ) (2,336 ) (11,379 ) Foreign exchange differences — 1 (226 ) (76 ) (503 ) — (804 ) Net book value 67,800 531 18,680 444,581 22,953 863 555,408 At June 30, 2017 Cost 67,800 7,362 27,920 458,260 30,946 7,327 599,615 Accumulated amortization — (6,875 ) (9,680 ) (13,918 ) (3,551 ) (6,464 ) (40,488 ) Foreign exchange differences — 44 440 239 (4,442 ) — (3,719 ) Net book value 67,800 531 18,680 444,581 22,953 863 555,408 For the year ended June 30, 2018 Opening book value 67,800 531 18,680 444,581 22,953 863 555,408 Additions — — — — — 1,074 1,074 Amortization — (299 ) (2,792 ) (8,899 ) (2,458 ) (898 ) (15,346 ) Impairment — — — (1,059 ) — — (1,059 ) Foreign exchange differences — — 89 6,091 674 66 6,920 Net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 At June 30, 2018 Cost 67,800 7,362 27,920 457,201 30,946 8,401 599,630 Accumulated amortization — (7,174 ) (12,472 ) (22,817 ) (6,009 ) (7,362 ) (55,834 ) Foreign exchange differences — 44 529 6,330 (3,768 ) 66 3,201 Net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 (1) Included in Brands are $350,419 of indefinite life intangibles (2017 - $345,319 ). (2) Productions and distribution rights represent rights acquired by the Company to produce and/or distribute television content where the Company does not own the underlying intellectual properties. (3) Comprised of production backlog, non-compete contracts and production software. |
Goodwill
Goodwill | 12 Months Ended |
Jun. 30, 2018 | |
Intangible Assets [Abstract] | |
Goodwill | Goodwill The continuity of goodwill is as follows: June 30, June 30, $ $ Opening net book value 240,534 214,325 Acquired on acquisition of IED (note 5) (537 ) 25,818 Acquired on acquisition of Kiddyzuzaa (note 5) — 695 Exchange differences 809 (304 ) 240,806 240,534 Impairment testing Goodwill and indefinite life intangible assets, being the broadcast licenses and certain brands, are tested for impairment annually or more frequently if events or circumstances indicate that the asset might be impaired. The Company tested goodwill for impairment at June 30, 2018 and 2017, in accordance with its policy described in note 3. For the purposes of allocating goodwill, the Company has determined that it has four CGU's: i) the Company's production, distribution and licensing of film and television programs business, being the Content Business excluding Peanuts (the "Content Business"); ii) Peanuts; iii) CPLG, which manages copyrights, licensing and brands for third parties; and iv) DHX Television. The CPLG CGU does not have any goodwill or indefinite life intangible assets, and therefore has not been tested for impairment. In assessing the goodwill and indefinite life intangible assets for impairment, the Company compares the carrying value of the CGU to the recoverable amount, where the recoverable amount is the higher of fair value less costs to sell ("FVLCS") and the value-in-use ("VIU"). An impairment charge is recognized to the extent that the carrying value exceeds the recoverable amount. To determine the recoverable amount for each of it's CGU's, the Company applied the following valuation methods: CGU's Valuation methodology Content Business Value-in-use Peanuts FVLCS DHX Television Value-in-use Value-in-Use The value-in-use of the Company's Content Business CGU and DHX Television CGU were determined by discounting five-year cash flow projections prepared from business plans reviewed by senior management and approved by the Board of Directors. The projections reflect management’s expectations of revenue, profit, capital expenditures, working capital and operating cash flows, based on past experience and future expectations of operating performance. Cash flows beyond the five-year period are extrapolated using perpetual growth rates. The discount rates are applied to the cash flow projections and were derived from the weighted average cost of capital and other external sources for each CGU. The following table shows the key assumptions used to estimate the recoverable amounts of the groups of CGUs: Assumptions used Perpetual Pre-tax CGU's growth rate discount rate Content Business 3.0 % 12.2 % DHX Television 0.0 % 15.5 % For the Content Business and DHX Television CGU's, the recoverable amount of the CGU's to which goodwill and indefinite life intangible assets have been allocated was greater than its carrying value, as such the Company determined there were no impairments of goodwill or indefinite life intangible assets as at June 30, 2018. Management believes that any reasonably possible change in the key assumptions on which the estimate of recoverable amounts of the Content Business and DHX Television CGU's was based would not cause their carrying amounts to exceed their recoverable amounts. The cash flows used in determining the recoverable amounts for the CGU’s were based on the following key assumptions: Cash flows from operations for each CGU were projected for a period of five years based on a combination of past experience, actual operating results and forecasted future results. For the Content Business CGU, key revenue assumptions include i) future production slates (both proprietary and production service), ii) future sources of distribution revenues (linear and digital) and expected sales prices/revenue levels, and iii) consumer products revenue forecasts by brand. These key assumptions represent Management’s assessment of future industry trends and are based on both historical results, future projections and external sources. Gross margins for the Content Business were estimated using a combination of both forecast and historical margins. For the DHX Television CGU, the key revenue assumptions include subscriber levels, rates per subscriber, and future advertising revenues. Subscriber levels were estimated based on Management’s assessment of future industry trends, while subscriber rates were based on existing agreements and Management’s estimates of future renewal rates. Advertising and promotion revenues were based upon Management’s assessment of future industry trends, based on internal and external sources. Gross margins for DHX Television were estimated using historical margins, while giving consideration to expected future content costs. Expenditure levels for all CGU’s were forecasted based on Management’s assessment of future industry trends. Cash flow adjustments for capital expenditures for each CGU were based upon Management’s sustaining capital expenditure estimates, adjusted for presently planned capital expenditures required to achieve forecast operating levels. The perpetual growth rates were estimated based upon Management’s assessment of future industry trends for each specific CGU. Fair value less costs to sell The fair value less costs to sell of the Company's Peanuts CGU was estimated with reference to the sale of 49% of its ownership interest to a third party, Sony Music Entertainment (Japan) Inc. subsequent to year end (see note 24). Based on the sales price of this transaction, the Company concluded there were no impairments of goodwill or indefinite life intangible assets in the Peanuts CGU as at June 30, 2018. |
Bank indebtedness, interim prod
Bank indebtedness, interim production financing, long-term debt and obligations under finance leases | 12 Months Ended |
Jun. 30, 2018 | |
Financial Instruments [Abstract] | |
Bank indebtedness, interim production financing, long-term debt and obligations under finance leases | Bank indebtedness, interim production financing, long-term debt and obligations under finance leases June 30, June 30, $ $ Bank indebtedness 16,350 — Interim production financing 93,683 101,224 Long-term debt and obligations under finance leases 756,570 983,335 Interest bearing debt and obligations under finance leases 866,603 1,084,559 Amount due within 12 months (120,557 ) (336,100 ) Amount due beyond 12 months 746,046 748,459 Effective June 30, 2017 and commensurate with the closing of the Company’s acquisition of IED (note 5), the Company entered into the Senior Secured Credit Agreement with a syndicate of lenders, which provides for a revolving facility (the “Revolving Facility”) and a term facility (the “Term Facility”). All amounts borrowed pursuant to the Senior Secured Credit Agreement are guaranteed by the Company and certain of its subsidiaries (the “Guarantors”). A first priority security interest in respect of all of the capital stock of certain of the subsidiaries of DHX Media Ltd. has been provided in favour of the syndicate of lenders, as well as all present and subsequently acquired real and personal property of the Guarantors. On May 31, 2017, and pursuant to the Company’s acquisition of IED (note 5), the Company completed the Offering of Subscription Receipts, which upon closing of the acquisition of IED on June 30, 2017 were automatically converted into Special Warrants and were automatically exercised, for no additional consideration, into Senior Unsecured Convertible Debentures effective October 1, 2017. The proceeds from the Refinancing were used to fund the acquisition of IED (note 5) and to repay all amounts owing pursuant to Former Senior Secured Credit Facilities and Senior Unsecured Notes. a) Bank indebtedness The Revolving Facility has a maximum available balance of US $30,000 (CAD $39,504 ) and matures on June 30, 2022. The Revolving Facility may be drawn down by way of either $USD base rate, $CAD prime rate, $CAD bankers’ acceptance, or $USD and £GBP LIBOR advances (the “Drawdown Rate”) and bears interest at floating rates ranging from the Drawdown Rate + 2.50% to the Drawdown Rate + 3.75% . As at June 30, 2018, $ 16,350 (2017 - $ nil ) was drawn on the Revolving Facility, comprised of the following amounts payable: US $4,000 , GBP £1,200 , and CAD $9,000 . b) Interim production financing June 30, June 30, $ $ Interim production credit facilities with various institutions, bearing interest at bank prime plus 0.5% - 1.0%. Assignment and direction of specific production financing, licensing contracts receivable and film tax credits receivable with a net book value of approximately $115,639 at June 30, 2018 (June 30, 2017 - $131,186) have been pledged as security. 93,683 101,224 During the year ended June 30, 2018, the $CDN bank prime rate averaged 3.19% ( 2017 - 2.70% ). c) Long-term debt and obligations under finance leases June 30, June 30, $ $ Term Facility, net of unamortized issue costs of $22,232 (June 30, 2017 - $26,107) 623,066 616,339 Special Warrants, net of unamortized issue costs of $nil (June 30, 2017 - $6,249) — 133,751 Senior Unsecured Convertible Debentures, net of unamortized issue costs of $5,588 (June 30, 2017 - $nil) and embedded derivatives at fair value of $11,940 (June 30, 2017 - $nil) 124,747 — Senior Unsecured Notes — 225,000 Obligations under various finance leases, bearing interest at rates ranging from 4.0% to 9.8%, maturing on dates ranging from July 2018 to March 2021 8,757 8,245 756,570 983,335 Less: Current portion (10,524 ) (234,876 ) 746,046 748,459 (i) Term Facility As at June 30, 2018, the Term Facility has a principal balance of US $490,050 (2017 - US $495,000 ) and matures on December 29, 2023. The Term Facility is repayable in annual amortization payments of 1% of the initial principal, payable in equal quarterly installments which commenced September 30, 2017. The Term Facility also requires repayments equal to 50% of Excess Cash Flow (the "Excess Cash Flow Payments") (as defined in the Senior Secured Credit Agreement), commencing for the fiscal year-ended June 30, 2018, while the First Lien Net Leverage Ratio (as defined in the Senior Secured Credit Agreement) is greater than 3.50 times, reducing to 25% of Excess Cash Flow while First Lien Net Leverage Ratio (as defined in the Senior Secured Credit Agreement) is at or below 3.50 times and greater than 3.00 times, with the remaining balance due on December 29, 2023. As at June 30, 2018, no payments were owing under the Excess Cash Flow Payments terms of the Term Facility. The Term Facility bears interest at floating rates of either $USD base rate + 2.75% or $USD LIBOR + 3.75% . Subsequent to June 30, 2018, the Company repaid US $161,328 against its Term Facility using proceeds from the sale of a 49% interest of the Company's 80% ownership in Peanuts (see note 24 for further details). The Senior Secured Credit Facilities require that the Company comply with a Total Net Leverage Ratio covenant, defined as follows: • The ratio of Consolidated Funded Indebtedness (defined in summary as all third-party indebtedness for borrowed money, unreimbursed obligations in respect of drawn letters of credit, finance leases and other purchase money indebtedness and guarantees of the Company and certain of its subsidiaries (the “Restricted Subsidiaries”) and generally excludes all interim production financing), less the unrestricted cash and cash equivalents of the Company and Restricted Subsidiaries to Consolidated EBITDA (rolling consolidated adjusted EBITDA, pro-forma last 12 months) of the Company and its Restricted Subsidiaries, calculated quarterly in $USD, which commencing the 12 month period ended September 30, 2017 is not to exceed 7.25 times, stepping down to 6.75 times commencing for the 12 month period ended September 30, 2018, then stepping down to 6.50 times for the 12 month period ended September 30, 2019, then stepping down to 5.75 times commencing for the 12 month period ended September 30, 2020, then stepping down to 5.50 times commencing for the 12 month period ended September 30, 2021 through until maturity. As at June 30, 2018, the Company was in compliance with its debt covenants. (ii) Former Term Facility On June 30, 2017, a portion of the proceeds from the Refinancing were used to repay all amounts outstanding pursuant to the Former Term Facility which bore interest at floating rates, resulting in a debt extinguishment charge of $1,471 during the year ended June 30, 2017, representing the previously unamortized debt issue costs. (iii) Senior Unsecured Convertible Debentures On May 31, 2017, and in contemplation of the closing of the acquisition of IED (note 5), the Company completed the Offering of Subscription Receipts in the amount of $140,000 , which upon closing of the acquisition of IED (note 5) on June 30, 2017 automatically converted into Special Warrants and were exercised, for no additional consideration, into Senior Unsecured Convertible Debentures of the Company effective October 1, 2017. The Subscription Receipts, Special Warrants and Senior Unsecured Convertible Debentures all bear interest at an annual rate of 5.875% , paid semi-annually on March 31 and September 30. The Senior Unsecured Convertible Debentures are convertible into Common Voting Shares or Variable Voting Shares of the Company at a price of $8.00 per share, subject to certain customary adjustments. The Senior Unsecured Convertible Debentures mature September 30, 2024. The Company accounts for the Senior Unsecured Convertible Debentures by allocating the proceeds, net of issue costs, between the debt component and the embedded derivatives based on the estimated fair values of the debt component and the embedded derivatives, as determined by the residual value of the debt component. The Senior Unsecured Convertible Debentures have a cash conversion option whereby the Company can elect to make a cash payment in lieu of issuing Common Voting Shares or Variable Voting Shares upon exercise of the conversion option feature by the holder of the Senior Unsecured Convertible Debentures; accordingly, the Senior Unsecured Convertible Debentures are deemed to have no equity component and the estimated fair value of the embedded derivatives is recorded as a financial liability and is included with the debt component on the Company's consolidated balance sheet. Changes in the estimated fair value of the embedded derivatives are recorded through the Company's consolidated statement of income. As at October 1, 2017, the initial estimated fair value of the embedded derivatives was $23,191 . (iv) Senior Unsecured Notes As at June 30, 2018, the outstanding principal amount due on the Senior Unsecured Notes was $ nil (2017 - $225,000 ). The Senior Unsecured Notes bore interest at 5.875% and with an originally scheduled maturity of December 2, 2021. On June 7, 2017, and pursuant to both the acquisition of IED (note 5) and the Refinancing, the Company issued notice to the holders of the Senior Unsecured Notes of its intention to redeem the Senior Unsecured Notes on July 11, 2017, resulting in the recognition of an early redemption penalty of $13,464 and a debt extinguishment charge of $5,519 , representing the previously unamortized debt issue costs, during the year ended June 30, 2017. On July 11, 2017, the Senior Unsecured Notes, including all accrued interest and the early redemption penalty were settled for $239,877 . (v) Principal repayments The aggregate amount of scheduled principal repayments, excluding any potential Excess Cash Flow Payments, required in each of the next five years is as follows: $ Year ending June 30, 2019 10,524 2020 8,611 2021 8,254 2022 7,440 2023 and beyond 759,225 |
Share capital and contributed s
Share capital and contributed surplus | 12 Months Ended |
Jun. 30, 2018 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Share capital and contributed surplus | Share capital and contributed surplus a) Authorized 100,000,000 Preferred Variable Voting Shares (“PVVS”), redeemable at the option of the Company at any time at a millionth of a cent per share, no entitlement to dividends, voting Unlimited Common Voting Shares without nominal or par value Unlimited Variable Voting Shares without nominal or par value Unlimited Non-Voting Shares without nominal or par value Preferred Variable Voting Shares On May 14, 2018, the PVVS were transferred to the Company’s Executive Chairmen and Chief Executive Officer ("CEO"), in accordance with the terms of a shareholders agreement among the Company and holder of the PVVS (the “PVVS Shareholder Agreement”). On the date of such transfer, the CEO entered into the PVVS Shareholder Agreement with the Company, pursuant to which the CEO: (i) agreed not to transfer the PVVS, in whole or in part, except with the prior written approval of the Board; (ii) granted to the Company the unilateral right to compel the transfer of the PVVS, at any time and from time to time, in whole or in part, to a person designated by the Board; and (iii) granted to the Company a power of attorney to effect any transfers contemplated by the PVVS Shareholder Agreement. The Board will not approve or compel a transfer without first obtaining the approval of the TSX and the PVVS Shareholder Agreement cannot be amended, waived or terminated unless approved by the TSX. Common shares On September 30, 2014, the Company’s shareholders approved a reorganization of the Company’s share capital structure (the “Share Capital Reorganization”) to address the Canadian ownership requirements of DHX Television. The Share Capital Reorganization was affected on October 9, 2014 and resulted in, among other things, the creation of three new classes of shares: Common Voting Shares, Variable Voting Shares and Non-Voting Shares. On October 9, 2014, each outstanding Common Share of the Company that was not owned and controlled by a Canadian for the purposes of the Broadcasting Act (Canada) (the “Broadcasting Act”) was converted into one Variable Voting Share and each outstanding Common Share that was owned and controlled by a Canadian for the purposes of the Broadcasting Act was converted into one Common Voting Share. Each Common Voting Share carries one vote per share on all matters. Each Variable Voting Share carries one vote per share unless the number of Variable Voting Shares outstanding exceeds 33 1/3% of the total number of Variable Voting Shares and Common Voting Shares outstanding, in which case the voting rights per share of the Variable Voting Shares are reduced so that the total number of votes associated with the outstanding Variable Voting Shares equals 33 1/3% of the total votes associated with the outstanding Variable Voting Shares and Common Voting Shares combined. The economic rights of each Variable Voting Share, each Common Voting Share and each Non-Voting Share are the same. All of the unissued Common Shares of the Company were cancelled on the completion of the Share Capital Reorganization. The Variable Voting Shares and Common Voting Shares are listed on the TSX under the ticker symbol DHX. On June 23, 2015, the Variable Voting Shares were listed on the NASDAQ under the ticker symbol DHXM. b) Issued and outstanding June 30, 2018 June 30, 2017 Number Amount Number Amount $ $ Preferred variable voting shares (note 13 (a)) 100,000,000 — 100,000,000 — Common shares (note 13 (c)) Opening balance 134,061,548 304,320 133,774,729 302,828 Dividend reinvestment 108,180 419 195,319 1,138 Shares issued pursuant to the ESPP 43,496 199 31,500 205 PSU's settled 20,666 69 — — Options exercised 60,000 160 60,000 149 Ending balance 134,293,890 305,167 134,061.548 304,320 c) Common shares The common shares of the Company are inclusive of Common Voting Shares, Variable Voting Shares and Non-Voting Shares. As at June 30, 2018 , the Company had 99,510,508 Common Voting Shares, 34,783,382 Variable Voting Shares and nil Non-Voting Shares issued and outstanding (2017 - 103,821,287 , 30,240,261 , and nil respectively). During the year ended June 30, 2018 , the Company issued 43,496 common shares, at an average price of $4.58 as part of the Company’s employee share purchase plan (2017 - 31,500 at $6.51 ). During the year ended June 30, 2018 , 60,000 common shares were issued out of treasury at an average price of $1.81 upon exercise of stock options (2017 - 60,000 at $1.73 ). During the year ended June 30, 2018 , the Company issued 108,180 common shares at an average price of $3.87 , as part of the shareholder enrollment in the Company's dividend reinvestment program (2017 - 195,319 at 5.82 ). d) Stock options As at June 30, 2018 and 2017, the Company had the following stock options outstanding: Weighted average Number of exercise price options per stock option Outstanding at June 30, 2016 7,137,125 6.93 Granted 1,742,400 6.79 Exercised (60,000 ) 1.73 Outstanding at June 30, 2017 8,819,525 6.93 Granted 1,920,000 5.69 Forfeited (2,431,050 ) 7.85 Cancelled (125,000 ) 7.13 Exercised (60,000 ) 1.81 Outstanding at June 30, 2018 8,123,475 6.41 Exercisable at June 30, 2018 4,297,150 6.12 The total maximum number of common shares to be reserved for issuance through the Company's option plan at June 30, 2018 is 8.5% (2017 - 8.5% ) of the total number of outstanding common shares at any time. As at June 30, 2018, this amounted to 11,414,980 (2017 - 11,395,231 ). On October 3, 2016, 1,342,400 stock options were issued at $7.02 per share, vesting over four years, expiring on October 2, 2023. On February 16, 2017, 400,000 stock options were issued at $6.08 per share, vesting over four years, expiring on February 15, 2024. On July 11, 2017, 1,620,000 stock options were granted to directors, officers and employees with an exercise price of $5.73 per common share, vesting over four years and expiring on July 10, 2024. On October 2 2017, 300,000 stock options were granted to employees with and exercise price of $5.47 per common share, vesting over four years , expiring on October 1, 2024. The weighted average grant date value of stock options and assumptions using the Black-Scholes option pricing model for the year ended June 30, 2018 and 2017 are as follows: 2018 2017 Weighted average grant date value $ 1.67 $ 2.01 Risk-free rate 1.45 % 0.69 % Expected option life 5 years 5 years Expected volatility 36 % 37 % Expected dividend yield 1.35 % 1.08 % During the year ended June 30, 2018, the compensation expense recognized as a result of stock options was $2,159 (2017 - $4,972 ), with a corresponding adjustment to contributed surplus. Information related to options outstanding at June 30, 2018 is presented below. Number Weighted Weighted Number Weighted Range of outstanding at average average exercisable at average exercise prices June 30, remaining exercise June 30, exercise 2018 contractual life price 2017 price years $ $ $1.50 - $3.49 655,625 0.03 2.03 655,625 2.03 $3.50 - $5.49 1,170,000 1.90 4.43 870,000 4.07 $5.50 - $7.49 4,027,100 4.35 6.57 1,324,900 7.00 $7.50 - $9.49 2,270,750 2.71 8.40 1,446,625 8.40 Total 8,123,475 3.19 6.41 4,297,150 6.12 e) Performance share unit plan As described in note 3, on December 16, 2015, the Company's Shareholders approved the Plan for eligible employees of the Company. During the year ended June 30, 2017, and in two separate awards, the Company granted certain eligible employees a target number of PSUs that vest over up to a three -year period. On the vesting date, each eligible employee will receive common shares as settlement. As at June 30, 2018, there were 207,270 (2017 - 338,665 ) PSUs both granted and outstanding. During the year, the compensation expense recognized as a result of the PSUs was $791 (2017 - $895 ), with a corresponding adjustment to contributed surplus. During the year ended June 30, 2018, 20,666 PSU's were paid out to employees, 87,076 were forfeited and 23,653 were cancelled relating to taxes payable on the units issued. |
Government financing and assist
Government financing and assistance | 12 Months Ended |
Jun. 30, 2018 | |
Government Grants [Abstract] | |
Government financing and assistance | Government financing and assistance During the year ended June 30, 2018 , investment in film and television programs was reduced by $nil ( 2017 - $ 2,125 ) related to production financing from government agencies. This financing is related to participation amounts by government agencies and is repayable from distribution revenue of the specific productions for which the financing was made. In addition, during the year ended June 30, 2018 , investment in film has also been reduced by $ 1,667 ( 2017 - $ 3,737 ) related to non-repayable contributions from the Canadian Media Fund license fee program. During the year ended June 30, 2018 , investment in film and television programs has been reduced by $ 15,618 ( 2017 - $ 25,547 ) for tax credits relating to production activities. Lastly, during the year ended June 30, 2018 , the Company received $ 63,464 , in government financing and assistance ( 2017 - $ 39,919 ). Amounts receivable from the Canadian federal government and other government agencies in connection with production financing represents 36% of total amounts receivable at June 30, 2018 ( 2017 - 41% ). Certain of these amounts are subject to audit by the government agency. Management believes that the net amounts recorded are fully collectible. The Company adjusts amounts receivable from Canadian federal government and other government agencies including federal and provincial tax credits receivable, in connection with production financing, quarterly and yearly, for any known differences arising from internal or external audit of these balances. |
Income taxes
Income taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Taxes [Abstract] | |
Income taxes | Income taxes Significant components of the Company’s net deferred income tax liability as at June 30, 2018 and 2017 are as follows: June 30, June 30, $ $ Broadcast licenses (17,967 ) (17,967 ) Tangible benefit obligation 2,171 2,352 Leasehold inducement — 123 Foreign tax credits 2,324 85 Participation payables and finance lease obligations and other liabilities — 64 Property and equipment 697 (1,724 ) Share issuance costs and deferred financing fees (1,603 ) (1,051 ) Investment in film and television programs and acquired and library content (27,568 ) (7,782 ) Intangible assets (9,633 ) (6,278 ) Non-capital losses and other 33,900 17,619 Net deferred income tax liability (17,679 ) (14,559 ) Deferred income tax liabilities have not been recognized for the withholding tax and other taxes that would be payable on unremitted earnings of certain subsidiaries, as such amounts are permanently reinvested. Unremitted earnings totalled $72,648 at June 30, 2018 ( 2017 - $60,510 ). The reconciliation of income taxes computed at the statutory tax rates to income tax expense (recovery) is as follows: June 30, June 30, $ $ Income tax expense (recovery) based on combined federal and provincial tax rates of 31% (June 30, 2017 - 31%) (1,664 ) (113 ) Income taxes increased (reduced) by: Share-based compensation 915 1,792 Non-taxable portion of capital gain (1,024 ) — Tax rate differential 3,675 (1,252 ) Non-controlling interest (2,223 ) — Non-deductible acquisition costs — 1,244 Tax rate change on opening balance 2,120 — Other (308 ) 200 Provision for income taxes 1,491 1,871 The Company operates in multiple jurisdictions with differing tax rates. The Company’s effective tax rates are dependent on the jurisdiction to which income relates. For the year ended June 30, 2018 , the Company’s blended U.S. federal statutory tax rate is 27.5% , a result of using a tax rate of 34% for the six months ended December 31, 2017 and a reduced tax rate of 21% for the six months ended June 30, 2018. As a result of the change in the U.S. federal statutory tax rate, the Company has recorded an estimated $2,120 expense, primarily as a result of the re-measurement of its deferred tax assets and deferred tax liabilities. The Company’s deferred tax assets and deferred tax liabilities have been re-measured to reflect the reduced U.S. federal statutory tax rate expected to apply when the deferred tax assets and deferred tax liabilities are settled or realized in future periods; re-measuring the deferred tax assets and deferred tax liabilities involves estimating when the amounts will be settled or realized, and may be further revised if these estimates are ultimately different from actual future operating results. |
Finance income and finance expe
Finance income and finance expense | 12 Months Ended |
Jun. 30, 2018 | |
Analysis of income and expense [abstract] | |
Finance income and finance expense | Finance income and finance expense Finance income and finance expense are comprised of the following: June 30, June 30, $ $ Finance income Interest income 1,147 556 Gain on movement in fair value of the embedded derivatives on Senior Unsecured Convertible Debentures and Senior Unsecured Notes 11,251 1,968 12,398 2,524 Finance expense Interest expense on bank indebtedness 788 348 Accretion of tangible benefit obligation 539 651 Interest on long-term debt, obligations under finance leases and other 48,343 18,181 Early redemption penalties — 13,464 Accretion on Senior Unsecured Convertible Debentures 1,586 — Debt extinguishment charge — 6,990 Amortization of debt premium on Senior Unsecured Notes — 118 Net foreign exchange loss 7,700 3,226 58,956 42,978 |
Expenses by nature and employee
Expenses by nature and employee benefit expense | 12 Months Ended |
Jun. 30, 2018 | |
Analysis of income and expense [abstract] | |
Expenses by nature and employee benefit expense | Expenses by nature and employee benefit expense The following sets out the expenses by nature: June 30, June 30, $ $ Investment in film and television programs Direct production and new media costs 192,143 96,249 Expense of film and television programs 33,554 24,348 Expense of film and broadcast rights for broadcasting 18,546 22,515 Write-down of investment in film and television programs and acquired and library content 10,968 1,540 Development, integration and other 10,554 3,435 Impairment of intangible assets 1,059 — Amortization of acquired and library content 15,916 10,541 Office and administrative 21,704 20,395 Acquisition costs — 9,695 Finance expense, net 46,558 40,454 Investor relations and marketing 3,322 2,902 Professional and regulatory 7,804 5,363 Amortization of property and equipment and intangible assets 24,174 17,565 386,302 255,002 The following sets out the components of employee benefits expense: Salaries and employee benefits 50,421 39,606 Share-based compensation 2,950 5,867 53,371 45,473 439,673 300,475 |
Financial instruments
Financial instruments | 12 Months Ended |
Jun. 30, 2018 | |
Financial Instruments [Abstract] | |
Financial instruments | Financial instruments a) Credit risk Credit risk arises from cash, cash held in trust as well as credit exposure to customers, including outstanding trade receivables. The Company manages credit risk on cash and cash equivalents by ensuring that the counterparties are banks, governments and government agencies with high credit ratings. The maximum exposure to credit risk for cash, cash held in trust and trade receivables approximate the amount recorded on the consolidated balance sheet of $ 228,542 at June 30, 2018 ( 2017 - $ 465,277 ). The balance of trade amounts receivable are mainly with Canadian broadcasters and large international distribution companies. Management manages credit risk by regularly reviewing aged accounts receivables and appropriate credit analysis. The Company has booked an allowance for doubtful accounts of approximately 6% against the gross amounts for certain trade amounts receivable and management believes that the net amount of trade amounts receivable is fully collectible. In assessing credit risk, management includes in its assessment the long-term receivables and considers what impact the long-term nature of the receivable has on credit risk. For certain arrangements with licensees, the Company is considered the agent, and only reports the revenue net of the licensor’s share. When the Company bills a third party in full where it is an agent for the licensor, the Company records an offsetting amount in accounts payable that is only payable to a licensee when the amount is collected from the third party. This reduces the risk, as the Company is only exposed to the amounts receivable related to the revenue it records. b) Interest rate risk The Company is exposed to interest rate risk arising from fluctuations in interest rates as its interim production financing, certain long-term debt and a portion of cash and cash equivalents and cash held in trust bear interest at floating rates. A 1% (100 bps) fluctuation in the interest rate on the Company's variable rate debt instruments would have an approximate $6,000 to $7,000 effect on net income before income taxes. c) Liquidity risk The Company manages liquidity by forecasting and monitoring operating cash flows and through the use of finance leases, interim production financing and maintaining revolving credit facilities (note 12). As at June 30, 2018 , the Company had cash on hand of $ 46,550 (June 30, 2017 - $ 62,143 ). Results of operations for any period are dependent on the number and timing of film and television programs delivered, which cannot be predicted with certainty. Consequently, the Company’s results from operations may fluctuate materially from period-to-period and the results of any one period are not necessarily indicative of results for future periods. Cash flows may also fluctuate and are not necessarily closely correlated with revenue recognition. During the initial broadcast of the rights, the Company is somewhat reliant on the broadcaster’s budget and financing cycles and at times the license period gets delayed and commences at a later date than originally projected. The Company’s film and television revenues vary significantly from quarter to quarter driven by contracted deliveries with the primary broadcasters. Although with the Company’s recent diversification of its revenue mix, particularly in the strengthening of the distribution revenue stream and addition of the broadcasting revenue stream, some of the quarterly unevenness is improving slightly and becoming more predictable. Distribution revenues are contract and demand driven and can fluctuate significantly from year-to-year. The Company maintains appropriate cash balances and has access to financing facilities to manage fluctuating cash flows. The Company obtains interim production financing (note 12) to provide funds until such time as the federal and provincial film tax credits (note 6) are collected. Upon collection of the film tax credits, the related interim production financing is repaid. d) Currency risk The Company’s activities involve holding foreign currencies and incurring production costs and earning revenues denominated in foreign currencies. These activities result in exposure to fluctuations in foreign currency exchange rates. The Company periodically enters into foreign exchange purchases contracts to manage its foreign exchange risk on USD, GBP and Euro denominate contracts. At June 30, 2018, the Company revalued its financial instruments denominated in a foreign currency at the prevailing exchange rates. A 1% change in the USD, GBP, JPY or Euro foreign exchange rates would have an approximate $8,000 effect on net income and comprehensive income. e) Contractual maturity analysis for financial liabilities Less than 1 to 3 4 to 5 After 5 Total 1 year years years years $ $ $ $ $ Bank indebtedness 16,350 16,350 — — — Accounts payable and accrued liabilities 130,545 130,545 — — — Interim production financing 93,683 93,683 — — — Other liabilities 8,150 — 8,150 — — Senior Unsecured Convertible Debentures 193,474 8,225 16,450 16,450 152,349 Term Facility 747,021 24,197 47,856 47,273 627,695 Finance lease obligations 9,435 4,364 4,132 939 — 1,198,658 277,364 76,588 64,662 780,044 Contractual payments in the table above includes fixed rate interest payments but excludes variable rate interest payments and are not discounted. Other liabilities exclude deferred lease inducements as these do not require any future contractual payments. f) Fair values The Company categorizes its fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The value hierarchy has the following levels: Level 1 - valuation based on quoted prices observed in active markets for identical assets and liabilities. Level 2 - valuation techniques based on inputs that are quoted prices of similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; inputs other than quoted prices used in a valuation model that are observable for that instrument, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - valuation techniques with significant unobservable market inputs. A financial instrument is classified to the lowest of the hierarchy for which a significant input has been considered in measuring fair value. Fair value estimates are made at a specific point in time based on relevant market information. These are estimates and involve uncertainties and matters of significant judgment and cannot be determined with precision. Change in assumptions and estimates could significantly affect fair values. Financial assets and liabilities measured at fair value As at June 30, 2018 June 30, 2017 Fair value hierarchy Fair value (1) Fair value hierarchy Fair value (1) Derivatives Embedded derivatives (2) Level 2 (11,940 ) Level 2 — Foreign currency forwards (3) Level 2 (61 ) Level 2 (174 ) (1) The Company values its derivatives using valuations that are calibrated to the initial trade prices. Subsequent valuations are based on observable inputs to the valuation model. (2) The fair values of embedded derivatives are determined using valuation models. (3) The fair value of forward currency contracts is determined using prevailing exchange rates. Financial assets and liabilities not measured at fair value The carrying amounts reported on the consolidated financial statements for cash on hand, cash held in trust, amounts receivables and accounts payable and accrued liabilities all approximate their fair values due to their immediate or short-term nature. Bank indebtedness was renegotiated during the previous year to reflect current interest rates; therefore, management believes the carrying amounts also approximate their fair values. Cash has a hierarchy of Level 1, all other values listed above are listed as Level 3. The following table summarizes the fair value and carrying value of other financial liabilities that are not recognized at fair value on a recurring basis on the consolidated balance sheets: As at June 30, 2018 June 30, 2017 Fair value hierarchy Fair value liability Carrying value Fair value hierarchy Fair value liability Carrying value Term Facility (1) Level 2 645,298 645,298 Level 2 642,363 642,363 Senior Unsecured Notes (2) Level 2 — — Level 2 225,000 225,000 Obligations under finance leases Level 2 8,757 8,757 Level 2 8,245 8,245 Special Warrants Level 3 — — Level 3 140,000 140,000 Senior Unsecured Convertible Debentures (3) Level 1 123,200 130,355 N/A — — Interim production financing (4) Level 2 93,683 93,683 Level 2 101,224 101,224 Other liabilities (5) Level 3 8,150 8,150 Level 3 11,422 11,422 (1) The interest rates on the Term Facility resets regularly; therefore, the fair value, using a market approach approximates the carrying value. (2) Management estimates the fair value using a market approach, based on publicly disclosed trades between arm's length parties. (3) The fair value of the convertible debentures is based on market quotes as these are actively traded on the open exchange. (4) Interim production financing bears interest at variable rates, therefore management believes the fair value approximates the carrying value. (5) The fair value of other liabilities, which includes the tangible benefit obligations, the long-term portion of certain other contractual liabilities and excludes deferred lease inducements, was estimated based on discounting the expected future cash flows. The key unobservable assumptions in calculating the fair value are the timing of the payments over the next four years related to the tangible benefit obligation included in other liabilities, and the discount rate used for discounting the other liabilities. g) Foreign currency contracts At June 30, 2018 , the Company had notional principal of US$ 2,231 ( 2017 - US $7,756 ) in contracts to sell US dollars. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jun. 30, 2018 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Commitments and contingencies | Commitments and contingencies Commitments The Company has entered into various operating leases for operating premises and equipment. The future aggregate minimum payments are as follows: $ Year ended June 30, 2019 9,884 2020 8,933 2021 7,563 2022 6,925 Beyond 2022 26,762 The Company has entered into various contracts to buy broadcast rights with future commitments totalling $22,321 . Contingencies The Company is, from time-to-time, involved in various claims, legal proceedings and complaints arising in the normal course of business and as such, provisions have been recorded where appropriate. Management does not believe that the final determination of these claims will have a material adverse effect on the financial position or results of operations of the Company. |
Capital disclosures
Capital disclosures | 12 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Capital disclosures | Capital disclosures The Company’s objectives when managing capital are to provide an adequate return to shareholders, safeguard its assets, maintain a competitive cost structure and continue as a going concern in order to pursue the development, production, distribution and licensing of its film and television properties and broadcast operations. During the year ended June 30, 2018 , the Company declared dividends totalling $ 10,734 ( 2017 - $9,908 ). The balance of the Company’s cash is being used to maximize ongoing development and reduce leverage. The Company’s capital at June 30, 2018 and 2017 is summarized in the table below: June 30, June 30, $ $ Total bank indebtedness, long-term debt and obligations under capital leases, excluding interim production financing 772,920 983,335 Less: Cash and cash held in trust (46,550 ) (302,020 ) Net debt 726,370 681,315 Total Shareholders’ Equity 400,792 415,853 1,127,162 1,097,168 To facilitate the management of its capital structure, the Company prepares annual expenditure operating budgets that are updated as necessary depending on various factors including industry conditions and operating cash flow. The annual and updated budgets are reviewed by the Board of Directors. |
Earnings per common share
Earnings per common share | 12 Months Ended |
Jun. 30, 2018 | |
Earnings per share [abstract] | |
Earnings per common share | Earnings per common share a) Basic Basic earnings per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. June 30, June 30, $ $ Net loss attributable to shareholders of the Company (14,060 ) (3,634 ) Weighted average number of common shares 134,505,625 134,059,478 Basic loss per share (0.10 ) (0.03 ) b) Diluted Diluted earnings per common share is calculated by adjusting the weighted average number of common shares outstanding to assume conversion of all potentially dilutive instruments which are convertible into common shares. The Company has three categories of potentially dilutive instruments which are convertible into common shares: stock options, performance share units and the Senior Unsecured Convertible Debentures. For the stock options, performance share units and the Senior Unsecured Convertible Debentures, a calculation is completed to determine the number of common shares that could have been acquired at fair value (determined as the average market price of the Company’s outstanding common shares for the period), based on the monetary value of the subscription rights attached to the stock options, performance share units and Senior Unsecured Convertible Debentures. The number of shares calculated above is compared with the number of shares that would have been issued assuming exercises of stock options, issuance of performance share units and exercise of Senior Unsecured Convertible Debentures. For the years ended June 30, 2018 and 2017, the diluted weighted average number of common shares outstanding is the same as the basic weighted average number of common shares outstanding, as the Company had a net loss for the period and the exercise of any potentially dilutive instruments would be anti-dilutive. June 30, June 30, $ $ Net loss attributable to shareholders of the Company (14,060 ) (3,634 ) Weighted average number of common shares 134,505,625 134,059,478 Diluted loss per share (0.10 ) (0.03 ) |
Statement of cash flows - suppl
Statement of cash flows - supplementary information | 12 Months Ended |
Jun. 30, 2018 | |
Cash Flow Statement [Abstract] | |
Statement of cash flows - supplementary information | Statement of cash flows - supplementary information Net change in non-cash balances related to operations June 30, June 30, 2018 2017 $ $ Decrease (increase) in amounts receivable 7,345 (44,457 ) Decrease (increase) in prepaid expenses and deposits and other 1,512 (526 ) Decrease (increase) in long-term amounts receivable 7,713 2,912 Increase (decrease) in accounts payable and accrued liabilities (41,475 ) 47,601 Increase (decrease) in deferred revenue (5,558 ) 10,899 Tangible benefit obligation payments (859 ) (3,599 ) (31,322 ) 12,830 During the year, the Company paid and received the following: $ $ Interest paid 45,156 19,250 Interest received 342 556 Taxes paid 3,694 15,996 Net change in film and television programs June 30, June 30, 2018 2017 $ $ Decrease (increase) in development (434 ) (238 ) Decrease (increase) in productions in progress 19,769 (12,285 ) Decrease (increase) in productions completed and released (52,854 ) (75,736 ) Expense of film and television programs 33,554 24,348 Decrease (increase) in program and film rights - broadcasting (14,110 ) (15,839 ) Expense of film and broadcast rights for broadcasting 18,546 22,515 4,471 (57,235 ) Reconciliation between the opening and closing balances in the consolidated balance sheet arising from financing activities Senior Unsecured Senior Term Special Convertible Unsecured Finance Facility Warrants Debentures Notes leases Total $ $ $ $ $ $ Balance - June 30, 2017 616,339 133,751 — 225,000 8,245 983,335 Repayments (6,425 ) — — (225,000 ) (5,338 ) (236,763 ) Issue costs (226 ) — (313 ) — — (539 ) Total financing cash flow activities (6,651 ) — (313 ) (225,000 ) (5,338 ) (237,302 ) Conversion to Senior Unsecured Convertible Debentures — (133,751 ) 133,751 — — — Amortization of deferred financing costs 4,018 — 974 — — 4,992 New finance leases — — — — 5,850 5,850 Movement in fair value of embedded derivatives — — (11,251 ) — — (11,251 ) Accretion on Senior Unsecured Convertible Debentures — — 1,586 — — 1,586 Unrealized foreign exchange loss 9,360 — — — — 9,360 Total financing non-cash activities 13,378 (133,751 ) 125,060 — 5,850 10,537 Balance - June 30, 2018 623,066 — 124,747 — 8,757 756,570 Former Senior Term Special Term Unsecured Finance Facility Warrants Facility Notes leases Total $ $ $ $ $ $ Balance - June 30, 2016 — — 67,578 219,928 4,567 292,073 New debt 642,362 140,000 — — — 782,362 Debt extinguishment cost — — 1,116 5,874 — 6,990 Realized foreign exchange — — — 372 — 372 Repayments — — (69,106 ) — (4,517 ) (73,623 ) Issue costs (26,023 ) (6,322 ) (18 ) (332 ) — (32,695 ) Total financing cash flow activities 616,339 133,678 (68,008 ) 5,914 (4,517 ) 683,406 Amortization of deferred financing costs — 73 430 1,008 — 1,511 Amortization of premium — — — 118 — 118 New finance leases — — — — 8,195 8,195 Movement in fair value of embedded derivatives — — — (1,968 ) — (1,968 ) Total financing non-cash activities — 73 430 (842 ) 8,195 7,856 Balance - June 30, 2017 616,339 133,751 — 225,000 8,245 983,335 |
Revenues and segmented informat
Revenues and segmented information | 12 Months Ended |
Jun. 30, 2018 | |
Operating Segments [Abstract] | |
Revenues and segmented information | Revenues and segmented information The Company operates production entities and offices throughout Canada, the United States and Europe. In evaluating performance, the Chief Operating Decision Maker ("CODM") does not distinguish or group its production, distribution and merchandising operations ("Content Business") on a geographic basis. The Company has determined that it has three reportable segments being the Content Business, CPLG, which manages copyrights, licensing and brands for third parties and DHX Television. Year ended June 30, 2018 CPLG DHX Television Content Consolidated $ $ $ $ Revenues 13,034 55,014 366,368 434,416 Direct production costs and expense of film and television produced, and selling, general and administrative 15,285 33,459 257,891 306,635 Segment profit (2,251 ) 21,555 108,477 127,781 Corporate selling, general and administrative 23,809 Amortization of property and equipment and intangible assets 24,174 Finance expense, net 46,558 Amortization of acquired and library content 15,916 Write-down of investment in film and television programs and acquired and library content, and impairment intangible assets 12,027 Development, integration and other 10,554 Loss before income taxes (5,257 ) Year ended June 30, 2017 CPLG DHX Television Content Consolidated $ $ $ $ Revenues 18,814 57,384 222,514 298,712 Direct production costs and expense of film and television produced, and selling, general and administrative 16,589 35,276 140,132 191,997 Segment profit 2,225 22,108 82,382 106,715 Corporate selling, general and administrative 25,248 Amortization of property and equipment and intangible assets 17,565 Finance expense, net 40,454 Amortization of acquired and library content 10,541 Write-down of acquired and library content 1,540 Acquisition costs 9,695 Development, integration and other 3,435 Loss before income taxes (1,763 ) For the year ended June 30, 2018, write-down of investment in film and television programs and acquired and library content included $2,787 and $9,240 related to DHX Television and Content segments, respectively (2017 - $ nil and $1,540 , respectively). As at June 30, 2018, $ nil , $33,224 , and $207,582 of goodwill was allocated to CPLG, DHX Television and Content Business, respectively (2017 - $ nil , $33,224 , and $207,310 , respectively). The following table presents further components of revenue derived from the following areas: June 30, June 30, $ $ Content Production revenue 19,793 36,877 Distribution revenue 124,094 100,408 Merchandising and licensing and other revenue 144,712 26,253 Producer and service fee revenue 77,769 58,976 366,368 222,514 DHX Television Subscriber revenue 51,102 53,240 Promotion and advertising revenue 3,912 4,144 55,014 57,384 CPLG Third party brand representation revenue 13,034 18,814 434,416 298,712 Of the Company’s $ 434,416 in revenues for the year ended June 30, 2018 , ( 2017 - $298,712 ), $ 168,038 was attributable to the Company’s entities based in Canada ( 2017 - $ 173,427 ), $ 144,940 ( 2017 - $1,089 ) was attributable to the Company’s entities based in the USA $ 109,024 ( 2017 - $108,849 ) was attributable to the Companies entities based in the UK and $12,414 (2017 - $15,347 ) was attributable to entities based outside of Canada, the USA and the UK. As at June 30, 2018 , the following non-current assets were attributable to the Company’s entities based in the USA: $ 67 of property and equipment, $ 423,485 of intangible assets, and $ 26,399 of goodwill ( 2017 - $ 125 , $ 422,170 , and $ 26,742 , respectively). As at June 30, 2018 , the following non-current assets were attributable to the Company’s entities based outside of Canada and the USA: $ 1,872 of property and equipment, $ 30,332 of intangible assets and $ 5,334 of goodwill ( 2017 - $ 2,091 , $ 55,956 , and $ 3,771 respectively). All other non-current assets were attributable to the Company’s entities based in Canada. |
Subsequent events
Subsequent events | 12 Months Ended |
Jun. 30, 2018 | |
Events After Reporting Period [Abstract] | |
Subsequent events | Subsequent events On July 23, 2018, the Company completed the sale of a non-controlling interest in Peanuts to Sony Music Entertainment (Japan) Inc. (“SMEJ”). SMEJ has indirectly purchased 49% of the Company’s 80% interest in Peanuts for $235.6 million in cash, subject to certain adjustments contemplated in the original agreement. Subsequent to the sale, the Company now owns a 41% interest in Peanuts, SMEJ owns a 39% interest, and the members of the family of Charles M. Schulz continue to hold their 20% interest. |
Significant accounting polici31
Significant accounting policies, judgments and estimation uncertainty (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of measurement | Basis of measurement The consolidated financial statements have been prepared under a historical cost basis, except for certain financial assets and financial liabilities, including derivative instruments that are measured at fair value. |
Consolidation | Consolidation The consolidated financial statements include the accounts of DHX Media Ltd. and all of its subsidiaries. The consolidated financial statements of all subsidiaries are prepared for the same reporting period, using consistent accounting policies. Intercompany accounts, transactions, income and expenses and unrealized gains and losses resulting from transactions among the consolidated companies have been eliminated upon consolidation. Subsidiaries are those entities, including structured entities, which the Company controls. Consistent with other entities in the film and television industry, the Company utilizes structured entities as a vehicle to create and fund some of its film and television projects. When the Company makes substantive decisions on creation of the content and financing within the structured entities it consolidates them. For accounting purposes, control is established by the Company when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is obtained by the Company and are de-consolidated from the date that control ceases. Non-controlling interest represents the portion of a subsidiary's earning and losses and net assets that is not held by the Company. If losses in a subsidiary applicable to a non-controlling interest exceed the non-controlling interest in the subsidiary's equity, the excess is allocated to the non-controlling interest except to the extent that the majority has a binding obligation and is able to cover the losses. |
Foreign currency translation | Foreign currency translation (i) Functional and presentation currency Items included in the consolidated financial statements of each consolidated entity of the Company are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). Primary and secondary indicators are used to determine the functional currency (primary indicators have priority over secondary indicators). The primary indicator which applies to the Company is the currency that mainly influences revenues and expenses. Secondary indicators include the currency in which funds from financing activities are generated. The Company operates material subsidiaries in three currency jurisdictions including the Canadian dollar, the US dollar, and the UK pound sterling. An assessment of the primary and secondary indicators for each subsidiary is performed to determine the functional currency of the subsidiary, which are then translated to Canadian dollars, the Company's presentation currency. The financial statements of consolidated entities that have a functional currency other than Canadian dollars (“foreign operations”) are translated into Canadian dollars as follows: (a) assets and liabilities - at the closing rate at the date of the balance sheet; and (b) income and expenses - at the average rate for the period. All resulting exchange differences are recognized in other comprehensive income as foreign currency translation adjustments. When the Company disposes of its entire interest in a foreign operation, or loses control, joint control, or significant influence over a foreign operation, the foreign currency gains or losses accumulated in other comprehensive income related to the foreign operation are recognized in profit or loss. If the Company disposes of part of an interest in a foreign operation which remains a subsidiary, a proportionate amount of foreign currency gains or losses accumulated in other comprehensive income related to the subsidiary is reallocated between controlling and non-controlling interests. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation, at year-end exchange rates, of monetary assets and liabilities denominated in currencies other than the functional currency are recognized in the consolidated statement of income (loss). |
Revenue recognition | Revenue recognition Revenue from the licensing of film and television programs is recognized when: (a) the production has been completed; (b) the contractual delivery arrangements have been satisfied and the Company retains neither continuing managerial involvement to the degree usually associated with the ownership nor effective control over the goods sold; (c) the customer has access to the production and can benefit from the content; (d) the amount of revenue can be measured reliably; (e) collectability of proceeds is probable; and (f) the costs incurred or to be incurred in respect of the contractual arrangement can be measured reliably. Cash payments received or advances currently due pursuant to a broadcast license or distribution arrangement are recorded as deferred revenue until all of the foregoing conditions of revenue recognition have been met. Revenue from production services for third parties and other revenue, as appropriate, is recognized on a percentage-of-completion basis. Percentage-of-completion is based upon the proportion of costs incurred in the current period to total expected costs. A provision is made for the entire amount of future estimated losses, if any, on productions-in-progress. Royalty revenue is accrued for royalty streams for which the receipt of revenue is probable and is recognized in accordance with the substance of the relevant agreements and statements received from third party agents. Revenue from live tours is recorded in the period in which the show is performed, the amount of revenue can be reliably measured, the costs incurred or to be incurred can be measured and collectability is reasonably assured. Merchandising revenue is recognized at the point of sale to customers. Revenue from the management of copyrights, licensing and brands for third parties through representation agreements is recognized when the amount of revenue can be reliably measured, the services have been provided and collectability is reasonably assured. Amounts received or advances currently due pursuant to a contractual arrangement, which have not yet met the criteria established to be recognized as revenue, are recorded as deferred revenue. Revenue from the Company's broadcasting business is recognized as follows: (a) subscriber fee revenues are recognized monthly based on estimated subscriber levels for the period-end, which are based on the preceding month's actual subscribed as submitted by the broadcast distribution undertakings; (b) advertising and promotion revenue, net of agency commission where applicable, is recorded when the advertising or promotion airs on the Company's television stations; and (c) other revenues, including sponsorship revenue, as earned. Gross versus net revenue The Company evaluates arrangements with third parties to determine whether revenue should be reported on a gross or net basis under each individual arrangement by determining whether the Company acts as the principal or agent under the terms of each arrangement. To the extent that the Company acts as the principal in an arrangement, revenues are reported on a gross basis, resulting in revenues and expenses being classified in their respective financial statement line items. Conversely, to the extent that the Company acts as the agent in an arrangement, revenues are reported on a net basis, resulting in revenues being presented net of any related expenses. Determining whether the Company acts as principal or agent is based on an evaluation of which party has substantial risks and rewards of ownership under the terms of an arrangement. The most significant factors that the Company considers include identification of the primary obligor, as well as which party has credit risk, general and inventory risk (or equivalent) and latitude in establishing prices. |
Investment in film and television programs | Investment in film and television programs Investment in film and television programs represents the balance of costs of film and television programs which have been produced by the Company or for which the Company has invested in distribution rights and the Company’s right to participate in certain future cash flows of film and television programs produced and distributed by other unrelated parties. Costs of investing in and producing film and television programs are capitalized. The costs are measured net of federal and provincial program contributions earned and are charged to income using a declining balance method of amortization. For film and television programs produced by the Company, capitalized costs include all direct production and financing costs incurred during production that are expected to benefit future periods. Financing costs are capitalized to the costs of a film or television program until substantially all of the activities necessary to prepare the film or television program for delivery are complete. Production financing provided by third parties that acquire participation rights is recorded as a reduction of the cost of the production. The rates used for the declining balance method of amortization range from 40 to 100% at the time of initial episodic delivery and at rates ranging from 10 to 25% annually thereafter. The determination of the rates is based on the expected economic useful life of the film or television program, and includes factors such as the ability to license rights to broadcast rights programs in development and availability of rights to renew licenses for episodic television programs in subsequent seasons, as well as the availability of secondary market revenue. Investments in film and television programs are accounted for as inventory and classified within current assets. The normal operating cycle of the Company can be greater than 12 months. The investment in film and television programs is measured at the lower of cost and net realizable value. The net realizable value is determined using estimates of future revenues net of future costs. A write-down is recorded equivalent to the amount by which the costs exceed the estimated net realizable value of the film or television program. |
Intangible assets | Acquired and library content Acquired and library content represents the balance of acquired film and television programs. Acquired and library content typically has minimal ongoing costs to maintain the content, and is charged to income using a declining balance method of amortization. The rates used for the declining balance method of amortization range from 10 to 20 % annually. The determination of rates is based on the expected economic useful life of the film or television program, and includes factors such as the availability of rights to renew licenses for episodic television programs in various territories, as well as the availability of secondary market revenue. Acquired and library content is accounted for as an intangible asset and classified within long-term assets. Acquired and library content is tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use, being the present value of the expected future cash flows of the asset. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Broadcast rights Program and film rights for broadcasting are purchased on a fixed or variable cost basis. The asset and liability for fixed cost purchases are recognized at the time the rights are known and determinable, and if they are available for airing. The cost of fixed program and film rights is expensed over the lesser of the availability period and the maximum period that varies depending upon the type of program, generally ranging from 24 to 60 months based on the expected pattern of consumption of the economic benefit. Program and film rights for broadcasting acquired on a variable cost basis are not capitalized and their cost is determined and expensed over their contracted exhibition period, on the basis of the average number of subscribers to the network exhibiting the program and of other contracting terms. In the event that the recognition criteria for fixed cost purchases described above are not met and the Company has already paid amounts to obtain future rights, such amounts are considered as prepaid program and film rights and are included as prepaids on the consolidated balance sheet. Any impairment charges are reported as an expense on the consolidated statement of income (loss). Intangible assets Intangible assets are carried at cost. Amortization is provided on a straight-line basis over the estimated useful life of the assets, using the following annual rates and methods: Broadcaster relationships 7 to 10 years straight-line Customer relationships 10 years straight-line Brands 10 to 20 years straight-line or indefinite life Production and distribution rights 10 to 25 years straight-line Production backlog 2 to 3 years straight-line Non-compete contracts 3 years straight-line Production software 5 years straight-line Intangible assets with indefinite life are not amortized. The assessment of whether the underlying asset continues to have an indefinite life is reviewed annually to determine whether an indefinite life continues to be supportable, and if not, the change in useful life from indefinite to finite is made on a prospective basis. Broadcast licenses Broadcast licenses are considered to have an indefinite life based on management’s intent and ability to renew the licenses without significant cost and without material modification of the existing terms and conditions of the license. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. Broadcast licenses are tested for impairment annually or more frequently if events or circumstances indicate that they may be impaired. Broadcast licenses by themselves do not generate cash inflows and therefore, when assessing these assets for impairment, the Company looks to the CGUs to which the asset belongs. |
Accrued participation payables | Accrued participation payables Included in accounts payable and accrued liabilities are accrued participation payables. Accrued participation payables reflect the legal liability due as at the balance sheet date, calculated as the participation owing on cash collected and accounts receivable. |
Deferred financing fees and debt issue costs | Deferred financing fees and debt issue costs Debt issue costs related to bank indebtedness are recorded as a deferred charge and amortized, using the straight-line method, over the term of the related bank indebtedness and the expense is included in interest expense. Debt issue costs related to long-term debt are recorded as a reduction to the carrying amount of long-term debt and amortized using the effective interest method and the expense is included in finance expense. |
Business combinations | Business combinations The Company applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Company. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred. Any contingent consideration to be transferred by the group is recognized at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognized either in profit or loss or as a change to other comprehensive income. Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity. Goodwill is initially measured as the excess of the aggregate of the fair value of consideration transferred over the fair value of identifiable assets acquired and liabilities assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognized in profit or loss. |
Development costs | Development costs Development costs include costs of acquiring film rights to books, stage plays or original screenplays and costs to adapt such projects. Such costs are capitalized and included in investment in film and television programs upon commencement of production. Advances or contributions received from third parties to assist in development are deducted from these costs. Projects in development are written off as development expenses at the earlier of the date determined not to be recoverable or when projects under development are abandoned, or three years from the date of the initial recognition of the investment, if there have been no active development milestones or significant development expenditures within the last year. |
Property and equipment | Property and equipment Property and equipment are carried at historical cost, less accumulated amortization and accumulated impairment losses. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost can be measured reliably. The carrying amount of a replaced asset is derecognized when replaced. Repairs and maintenance costs are charged to the consolidated statement of income during the period in which they are incurred. Amortization is provided, commencing when the asset is available for use, over the estimated useful life of the asset, using the following annual rates and methods: Buildings 4% declining balance Furniture, fixtures and other equipment 5% to 20% declining balance Computer equipment 30% declining balance Post-production equipment 30% declining balance Computer software 2 years straight-line Website design 2 years straight-line Leasehold improvements Straight-line over the term of lease The Company allocates the amount initially recognized in respect of an item of property and equipment to its significant parts and depreciates each such part separately. Residual values, method of amortization and useful lives of the assets are reviewed annually and adjusted if appropriate. Gains and losses on disposals of property and equipment are determined by comparing the proceeds with the carrying amount of the asset and are included as part of other gains and losses in the consolidated statement of income (loss). |
Goodwill | Goodwill Goodwill represents the cost of acquired businesses in excess of the fair value of net identifiable assets acquired at the date of acquisition. Goodwill is carried at cost less any accumulated impairment losses and is not subject to amortization. Goodwill is tested for impairment annually or more frequently if events or circumstances indicate that the asset might be impaired. Goodwill is allocated to a cash generating unit (“CGU”), or group of CGUs, which is the lowest level within an entity at which the goodwill is monitored for internal management purposes, which is not higher than an operating segment. Impairment is tested by comparing the recoverable amount of goodwill assigned to a CGU or group of CGUs to its carrying value. |
Impairment of non-financial assets | Impairment of non-financial assets Property and equipment and intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Long-lived assets that are not amortized are subject to an annual impairment test. For the purposes of measuring recoverable amounts, assets are grouped into CGUs. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use, being the present value of the expected future cash flows of the relevant CGU. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. |
Borrowing costs | Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, including investment in films and property and equipment, are added to the cost of those assets, until such time as the assets are substantially complete and ready for use. All other borrowing costs are recognized as a finance expense in the consolidated statement of income in the period in which they are incurred. |
Government financing and assistance | Government financing and assistance The Company has access to several government programs, including tax credits that are designed to assist film and television production and distribution in Canada. The Company records government assistance when the related costs have been incurred and there is reasonable assurance that they will be realized. Amounts received or receivable in respect of production assistance are recorded as a reduction of the production costs of the applicable production. Government assistance with respect to distribution rights is recorded as a reduction of investment in film and television programs. Government assistance towards current expenses is recorded as a reduction of the applicable expense item. |
Provisions | Provisions Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at management’s best estimate of the expenditure required to settle the obligation at the end of the reporting period and are discounted to present value where the effect is material. The Company performs evaluations to identify onerous contracts and, where applicable, records provisions for such contracts. |
Leases | Leases Upon initial recognition, the Company classifies all leases as either a finance lease or an operating lease, depending on the substance of the lease terms. Finance leases are classified as such because they are found to transfer substantially all the rewards incidental to ownership of the asset to the lessee, whereas operating leases are classified as such because they are not found to meet the criteria required for classification as a finance lease. Upon commencement of the lease, finance leases are recorded as assets with corresponding liabilities in the consolidated balance sheet at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The rate used to discount the payments is either the interest rate implicit in the lease or the Company's incremental borrowing rate. The asset is amortized over the shorter of the term of the lease and the useful life of the asset while the liability is decreased by the actual lease payments and increased by any accretion expense. Payments made under operating leases are charged to the consolidated statement of income (loss) on a straight-line basis over the period of the lease. |
Income taxes | Income taxes The tax expense for the period comprises current and deferred tax. Tax is recognized in the consolidated statement of income (loss), except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantively enacted, at the end of the reporting period, and any adjustment to tax payable in respect of previous periods. Deferred tax is recognized in respect of temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the financial statements, as well as the benefit of losses that are probable to be realized and are available for carry forward to future years to reduce income taxes. Deferred income tax is determined on a non-discounted basis using tax rates and laws that have been enacted or substantively enacted at the balance sheet date and are expected to apply when the deferred tax asset or liability is settled. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that it is probable that the assets can be recovered. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable earnings will be available to allow all or part of the asset to be recovered. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except, in the case of subsidiaries, where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. The effect of a change in tax rates on deferred tax assets and liabilities is included in earnings in the period that the change is substantively enacted, except to the extent it relates to items previously recognized outside earnings in which case the rate change impact is recognized in a manner consistent with how the items were originally recognized. Deferred income tax assets and liabilities are presented as non-current. |
Share-based compensation | Share-based compensation The Company grants stock options to certain directors, officers, employees and consultants of the Company. Stock options vest over periods of up to 4 years and expire after 5 to 7 years. Each vesting tranche of stock options is considered a separate award with its own vesting period and estimated grant date fair value. The estimated grant date fair value of each vesting tranche is estimated using the Black-Scholes option pricing model. The non-cash compensation expense is recognized over each tranche’s vesting period by increasing contributed surplus based on the number of awards expected to vest. The number of awards expected to vest is reviewed at least annually with any impact being recognized immediately. The Company also grants performance share units ("PSUs") to certain eligible employees. PSUs are granted at the discretion of the Board based on a notional equity value of the common shares of the Company tied to a specified formula. The number of PSUs that ultimately vest under each grant is dependent on continued employment for a period of time and the achievement of specific performance measures. On the vesting date, each employee will receive common shares as settlement; accordingly, grants of PSUs are accounted for as equity settled instruments. The Company recognizes compensation expense offset by contributed surplus equal to the estimated grant date fair value of the PSUs granted on a straight-line basis over the applicable vesting period, taking into consideration forfeiture estimates. Compensation expense is adjusted prospectively for subsequent changes in management’s estimate of the number of PSUs that are expected to vest. |
Earnings per share | Earnings per share Basic earnings per share (“EPS”) is calculated by dividing the net income for the period attributable to equity owners of the Company by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated by adjusting the weighted average number of common shares outstanding for potentially dilutive instruments. The number of shares included with respect to options, warrants and similar instruments is computed using the treasury stock method. The Company’s potentially dilutive common shares comprise stock options, PSUs and the Senior Unsecured Convertible Debentures. |
Financial instruments | Financial instruments Financial instruments are classified as follows: • Financial assets classified as "Available-for-Sale" are recognized initially at fair value plus transaction costs and are subsequently carried at fair value with the changes in fair value recorded in other comprehensive income. Available-for-Sale assets are classified as non-current, unless the investment matures or management expects to dispose of them within twelve months. • Derivative financial instruments are classified as “Held-for-Trading” and recognized initially on the balance sheet at fair value. Financial assets classified as Held-for-Trading are recognized at fair value with the changes in fair value recorded in net income. • Cash, cash held in trust, trade receivables and long-term amounts receivables are classified as “Loans and Receivables”. After their initial fair value measurement, they are measured at amortized cost using the effective interest method, less a provision for impairment, established on an account-by-account basis, based on, among other factors, prior experience and knowledge of the specific debtor and management’s assessment of the current economic environment. • Accounts payable and accrued liabilities, interim production financing, long-term debt, special warrants and other liabilities are classified as “Other Financial Liabilities”, and are initially recognized at fair value less transaction costs. Subsequent to initial recognition, Other Financial Liabilities are measured at amortized cost using the effective interest method. |
Impairment of financial assets | Impairment of financial assets At each reporting date, the Company assesses whether there is objective evidence that a financial asset is impaired. A significant or prolonged decline in the fair value of the security below its cost is evidence that the asset is impaired. If such evidence exists, the Company recognizes an impairment loss, as follows: • Financial assets carried at amortized cost: The loss is the difference between the amortized cost of the loan or receivable and the present value of the estimated future cash flows, discounted using the instrument’s original effective interest rate. The carrying amount of the asset is reduced by this amount either directly or indirectly through the use of an allowance account. • Available-for-Sale financial assets: The impairment loss is the difference between the original cost of the asset and its fair value at the measurement date, less any impairment losses previously recognized in the statement of income. This amount represents the cumulative loss in accumulated other comprehensive income that is reclassified to net income. Impairment losses on financial assets carried at amortized cost and Available-for-Sale financial assets are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. Impairment losses on available-for-sale equity instruments are not reversed. |
Dividend distribution | Dividend distribution Dividend distribution to the Company’s shareholders is recognized as a liability in the financial statements in the period in which the dividends are approved by the Board of Directors. |
Tangible benefit obligation | Tangible benefit obligation As part of the Canadian Radio-Television and Telecommunications Commission (“CRTC”) decision approving the Company’s acquisition of 8504601 Canada Inc. (“DHX Television”) on July 31, 2014, the Company is required to contribute $ 17,313 to provide tangible benefits to the Canadian broadcasting system over seven years from the date of acquisition. The tangible benefit obligation was initially recorded in the consolidated statement of income at the estimated fair value on the date of acquisition, being the sum of the discounted future net cash flows and the same amount was recorded as a liability at the date of acquisition of DHX Television. The tangible benefit obligation is being adjusted for the incurrence of related expenditures, the passage of time and for revisions to the timing of the cash flows. Changes in the obligation (other than incurred expenditures) are recorded as finance expense in the consolidated statement of income (loss). |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of current operating bank accounts, term deposits and fixed income securities with an original term to maturity of 90 days or less. Cash equivalents are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. |
New and amended standards adopted, Accounting standards issued but not yet applied, and Significant accounting judgments and estimation uncertainty | New and amended standards adopted i) The IASB issued amendments to IAS 7 , " Statement of Cash Flows " ("IAS 7") to improve financial information provided to users of financial statements about an entity's financing activities. These amendments are effective for annual periods beginning on or after January 1, 2017. The adoption of this standard had no financial impact on the Company's consolidated financial statements, however did required additional disclosure in note 22. Accounting standards issued but not yet applied i) IFRS 9 “ Financial instruments ” (“IFRS 9”) is required to be applied for years beginning on or after January 1, 2018, and sets out the requirements for recognizing and measuring financial assets and financial liabilities. IFRS 9 replaces IAS 39 “ Financial Instruments: Recognition and Measurement ” (“IAS 39”). The new standard establishes a single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics. It also provides guidance on an entity's own credit risk relating to financial liabilities and amends the impairment model by introducing a new 'expected credit loss' model for calculating impairment. Additional disclosures would be required under the new standard. Upon adoption, the Company expects the impact to be $500 to $1,500 , and will change the category of classification for its financial assets and financial liabilities. Previously, the Company classified its financial assets as ‘loans and receivables’ and its financial liabilities as ‘other financial liabilities’, both of which were previously measure at amortized cost, with the exception of embedded derivatives which were measured at fair value. Under IFRS 9, the measurement basis would remain the same, however the category for classification would be referred to as 'Amortized Cost'. ii) IFRS 15 “ Revenue from Contracts and Customers ” (“IFRS 15”) is required to be applied for years beginning on or after January 1, 2018, and establishes principles to record revenues from contracts for the sale of goods or services, unless the contracts are in the scope of other IFRSs. IFRS 15 replaces IAS 18, “ Revenue ” and IAS 11, “ Construction Contracts ”, and some revenue related interpretations. Under IFRS 15, revenue is recognized at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer, applying the following five steps: 1. Identify the contract with a customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when (or as) the entity satisfies a performance obligation The new standard also provides additional guidance relating to principal versus agent relationships, licenses of intellectual property, and contract costs. The Company has completed its assessment of the impact of IFRS 15 and expects its proprietary production revenue and consumer products owned revenue streams to be impacted. Under IFRS 15, the Company has determined that in certain proprietary production contracts, the customer who owns the initial broadcast license rights may in substance control the asset. In such cases, the Company would record revenue using the percentage of completion basis. In addition, the Company has determined that, under IFRS 15, contracts for the management of copyrights, licensing and brands provide the customer with a right to access to the underlying property, and therefore royalties, including minimum guarantees, will be recognized as the greater of earned royalties or the pro-rata minimum guarantee over the term of the license. IFRS 15 permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective or cumulative effect method). The Company intends to adopt the standard using the modified retrospective method on the date of transition, which is July 1, 2018. The expected impact of this adoption is a increase in deficit as at July 1, 2018 in the range of $4.0 million to $9.0 million , with a corresponding adjustment to deferred revenue. iii) In January 2016, the IASB issued IFRS 16, "Leases" ("IFRS 16") effective for annual periods beginning on or after January 1, 2019, with early adoption permitted for entities that have also adopted IFRS 15. IFRS 16 provides a comprehensive model for the measurement, presentation and disclosure of leases and supersedes IAS 17, "Leases". The adoption of IFRS 16 will result in substantially all lessee leases being recorded on the balance sheet as an asset with a corresponding liability with both current and long-term portions. The Company is currently evaluating the impact of IFRS 16 on its financial statements. iv) The IASB issued amendments to IFRS 2, "Share-based payment" ("IFRS 2"), to clarify the classification and measurement of share-based payment transactions. The amendments are effective for annual periods beginning on or after January 1, 2018. The Company is currently evaluating the impact of these amendments on its consolidated financial statements. v) In June 2017, the IASB issued IFRIC 23 to clarify how the requirements of IAS 12 Income Taxes should be applied when there is uncertainty over income tax treatments. The interpretation is effective for annual periods beginning on or after January 1, 2019, with modified retrospective or retrospective application. The Company is currently evaluating the impact of IFRIC 23 on its consolidated financial statements. vi) The IASB issued IFRIC 22 "Foreign currency transactions and advance consideration" ("IFRIC 22"), which clarifies how to determine the date of transaction for the exchange rate to be used on initial recognition of a related asset, expense or income where an entity pays or receives consideration in advance for foreign currency-denominated contracts. For a single payment or receipt, the date of the transaction is the date on which the entity initially recognises the non-monetary asset or liability arising from the advance consideration (the prepayment or deferred income/contract liability). IFRIC 22 is effective for annual periods beginning on or after January 1, 2018. The Company will apply the IFRIC on a prospective basis. The effect of applying this IFRIC is not expected to be have a significant impact on the Company's consolidated financial statements. Significant accounting judgments and estimation uncertainty The preparation of financial statements under IFRS requires the Company to make estimates and assumptions that affect the application of policies and reported amounts. Estimates and judgments are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable. Actual results may differ materially from these estimates. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: (i) Income taxes and deferred income taxes Deferred tax assets and liabilities require management’s judgment in determining the amounts to be recognized. In particular, judgment is used when assessing the extent to which deferred tax assets should be recognized with respect to the timing of deferred taxable income. The current income tax provision for the year requires judgment in interpreting tax laws and regulations. Estimates are used in determining the provision for current income taxes which are recognized in the financial statements. The Company considers the estimates, assumptions and judgments to be reasonable but this can involve complex issues which may take an extended period to resolve. The final determination of the amounts to be paid related to the current year’s tax provisions could be different from the estimates reflected in the financial statements. The Company’s tax filings also are subject to audits, the outcome of which could change the amount of current and deferred tax assets and liabilities. (ii) Business combinations The purchase price allocation process requires management to use significant estimates and assumptions, including fair value estimates including, but not limited to: • estimated fair values of tangible assets; • estimated fair values of intangible assets; • estimated fair values of deferred revenue; • probability of required payment under contingent consideration provisions; • estimated income tax assets and liabilities; and • estimated fair value of pre-acquisition contingencies. While management uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value the assets acquired and liabilities assumed at the business combination date, estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the measurement period, which is the earlier of the date management receives the information it is looking for or one year from the business combination date, adjustments are recorded to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Although management believes the assumptions and estimates made in the past have been reasonable and appropriate, they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Examples of critical estimates in valuing certain of the assets and liabilities acquired include but are not limited to: • future expected cash flows from distribution, consumer products and licensing and other customer contracts; • expected costs to complete film and television productions in-progress and the estimated cash flows from the productions when completed; • the acquired company’s brand, broadcaster relationships and customer and distribution relationships as well as assumptions about the period of time these acquired intangibles will continue to benefit the combined company; • the fair value of deferred revenue, including future obligations to customers; • uncertain tax positions assumed in connection with a business combination are initially estimated as of the acquisition date and are re-evaluated quarterly, management continues to collect information in order to determine their estimated value, with any adjustments to preliminary estimates recorded to goodwill during the measurement period; and • discount rates applied to future expected cash flows. Changes in any of the assumptions or estimates used in determining the fair value of acquired assets and liabilities could impact the amounts assigned to assets, liabilities and goodwill in the purchase price allocation, which could also impact net income as expenses and impairments could change. Unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions, estimates or actual results. (iii) Investment in film and television programs/Acquired and library content The costs of investing in and producing film and television programs are capitalized, net of federal and provincial program contributions earned. Investment in film assets are amortized using the declining balance method with rates of amortization ranging from 40% to 100% at the time of initial episodic delivery and at rates ranging from 10% to 25% annually thereafter. Management estimates these rates based on the expected economic useful life of the film or television program, and includes factors such as the ability to license rights to broadcast rights programs in development and availability of rights to renew licenses for episodic television programs in subsequent seasons, as well as the availability of secondary market revenue. Estimation uncertainty relates to management's ability to estimate the expected economic useful life of the film or television program. (iv) Impairment of goodwill and indefinite life intangibles Management estimates the recoverable amount of each CGU that has goodwill or indefinite life intangibles by estimating its value-in-use or fair value less costs to sell, whichever is greater, and compares it to the carrying amount to determine if the goodwill or indefinite life intangible asset are impaired. Value-in-use is based on the expected future cash flows of an asset or CGU discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The impairment test calculations are based on detailed budgets and forecasts which are prepared for each CGU to which the assets are allocated. These budgets and forecasts generally cover a period of five years with a long-term growth rate applied to the terminal year. Key areas of estimation uncertainty relate to management's assumptions about future operating results, long-term growth rates and the discount rate. Actual results could vary from these estimates which may cause significant adjustments to the Company's goodwill or indefinite life intangible assets in subsequent reporting periods. (v) Impairment of non-financial assets The indicators of impairment for non-financial assets are determined based on management’s judgment. If an indication of impairment exists, or when annual testing for an asset is required, the Company estimates the asset’s or CGU’s recoverable amount. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing the recoverable amount, management estimates the asset or CGU’s value-in-use. Value-in-use is based on the estimated future cash flows of the asset or CGU discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The impairment test calculations are based on detailed budgets or forecasts which are prepared for each CGU to which the assets are allocated. Key areas of estimation uncertainty relate to management's assumptions about the cash flow forecast, the long-term growth rate applied to cash flows and the discount rate. |
Significant accounting polici32
Significant accounting policies, judgments and estimation uncertainty (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of detailed information about property, plant and equipment | Amortization is provided, commencing when the asset is available for use, over the estimated useful life of the asset, using the following annual rates and methods: Buildings 4% declining balance Furniture, fixtures and other equipment 5% to 20% declining balance Computer equipment 30% declining balance Post-production equipment 30% declining balance Computer software 2 years straight-line Website design 2 years straight-line Leasehold improvements Straight-line over the term of lease Land Building Furniture, fixtures and equipment Computer equipment Post-production equipment Computer software Leasehold improvements Total $ $ $ $ $ $ $ $ For the year ended June 30, 2017 Opening net book value 4,276 1,792 1,354 2,811 2,917 1,040 3,493 17,683 IED Acquisition — — — 104 — — — 104 Additions — — 1,071 1,087 8,223 344 8,872 19,597 Disposals, net — — — (170 ) — — — (170 ) Transfers, net — 158 — — — — (158 ) — Amortization — (12 ) (314 ) (1,475 ) (2,852 ) (488 ) (1,045 ) (6,186 ) Foreign exchange differences — — — (32 ) — — — (32 ) Net book value 4,276 1,938 2,111 2,325 8,288 896 11,162 30,996 At June 30, 2017 Cost 4,276 2,070 6,281 12,536 13,966 4,896 14,372 58,397 Accumulated amortization — (132 ) (4,178 ) (10,419 ) (5,678 ) (4,056 ) (3,226 ) (27,689 ) Foreign exchange differences — — 8 208 — 56 16 288 Net book value 4,276 1,938 2,111 2,325 8,288 896 11,162 30,996 For the year ended June 30, 2018 Opening net book value 4,276 1,938 2,111 2,325 8,288 896 11,162 30,996 Additions — 73 349 852 6,055 331 616 8,276 Disposals, net — — — — — — (104 ) (104 ) Amortization — (78 ) (738 ) (1,147 ) (4,907 ) (429 ) (1,529 ) (8,828 ) Foreign exchange differences — — 1 84 — 9 2 96 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 At June 30, 2018 Cost 4,276 2,143 6,630 13,388 20,021 5,227 14,884 66,569 Accumulated amortization — (210 ) (4,916 ) (11,566 ) (10,585 ) (4,485 ) (4,755 ) (36,517 ) Foreign exchange differences — — 9 292 — 65 18 384 Net book value 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 |
Disclosure of detailed information about intangible assets | Amortization is provided on a straight-line basis over the estimated useful life of the assets, using the following annual rates and methods: Broadcaster relationships 7 to 10 years straight-line Customer relationships 10 years straight-line Brands 10 to 20 years straight-line or indefinite life Production and distribution rights 10 to 25 years straight-line Production backlog 2 to 3 years straight-line Non-compete contracts 3 years straight-line Production software 5 years straight-line June 30, June 30, $ $ Net opening acquired and library content 155,940 88,462 Additions IED (note 5) — 74,618 Additions Kiddyzuzaa (note 5) — 3,484 Additions Ellie Sparkles (note 5) 8,406 — Write-down of acquired and library content (3,402 ) (363 ) Amortization (15,916 ) (10,541 ) Foreign exchange 2,060 280 147,088 155,940 Broadcast licenses Broadcaster relationships Customer relationships Brands (1) Production and distribution rights (2) Other (3) Total $ $ $ $ $ $ $ For the year ended June 30, 2017 Opening book value 67,800 1,262 21,653 24,853 25,843 3,199 144,610 IED acquisition (note 5) — — — 422,012 — — 422,012 Additions — — — 969 — — 969 Amortization — (732 ) (2,747 ) (3,177 ) (2,387 ) (2,336 ) (11,379 ) Foreign exchange differences — 1 (226 ) (76 ) (503 ) — (804 ) Net book value 67,800 531 18,680 444,581 22,953 863 555,408 At June 30, 2017 Cost 67,800 7,362 27,920 458,260 30,946 7,327 599,615 Accumulated amortization — (6,875 ) (9,680 ) (13,918 ) (3,551 ) (6,464 ) (40,488 ) Foreign exchange differences — 44 440 239 (4,442 ) — (3,719 ) Net book value 67,800 531 18,680 444,581 22,953 863 555,408 For the year ended June 30, 2018 Opening book value 67,800 531 18,680 444,581 22,953 863 555,408 Additions — — — — — 1,074 1,074 Amortization — (299 ) (2,792 ) (8,899 ) (2,458 ) (898 ) (15,346 ) Impairment — — — (1,059 ) — — (1,059 ) Foreign exchange differences — — 89 6,091 674 66 6,920 Net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 At June 30, 2018 Cost 67,800 7,362 27,920 457,201 30,946 8,401 599,630 Accumulated amortization — (7,174 ) (12,472 ) (22,817 ) (6,009 ) (7,362 ) (55,834 ) Foreign exchange differences — 44 529 6,330 (3,768 ) 66 3,201 Net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 (1) Included in Brands are $350,419 of indefinite life intangibles (2017 - $345,319 ). (2) Productions and distribution rights represent rights acquired by the Company to produce and/or distribute television content where the Company does not own the underlying intellectual properties. (3) Comprised of production backlog, non-compete contracts and production software. |
Compensation of key management
Compensation of key management (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Related Party [Abstract] | |
Compensation earned by key management | The compensation earned by key management is as follows: 2018 2017 $ $ Salaries and employee benefits 4,205 2,694 Share-based compensation 2,146 2,738 Termination benefits 2,899 — 9,250 5,432 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations1 [Abstract] | |
Disclosure of detailed information about business combinations | The purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair values as follows: $ Assets Cash 122 Acquired and library content 8,406 Total identifiable net assets at fair value 8,528 Non-controlling interest 4,178 Purchase consideration transferred 4,350 The purchase price has been allocated to the assets acquired and liabilities assumed based on their fair values as follows: $ Assets Cash 10 Acquired and library content 3,484 Goodwill 695 4,189 Liabilities Accounts payable and accrued liabilities 75 Deferred income tax liabilities 631 706 Total identifiable net assets at fair value 3,483 Non-controlling interest 696 Purchase consideration transferred 2,787 The purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair values as follows: $ Assets Cash 12,754 Amounts receivable 24,367 Prepaid expenses and deposits 1,787 Long-term receivables 8,661 Acquired and library content 74,618 Property and equipment 104 Intangible assets - brands 422,012 Goodwill 25,149 569,452 Liabilities Accounts payable and accrued liabilities 10,938 Deferred revenue 14,575 Other liabilities 5,148 30,661 Total identifiable net assets at fair value 538,791 Non-controlling interest 85,721 Purchase consideration transferred 453,070 |
Amounts receivable (Tables)
Amounts receivable (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of amounts receivable | June 30, June 30, $ $ Trade receivables 163,203 136,755 Less: Provision for impairment of trade receivables (9,742 ) (4,772 ) 153,461 131,983 Goods and services tax recoverable, net 1,203 1,411 Federal and provincial film tax credits and other government assistance 96,874 111,639 Short-term amounts receivable 251,538 245,033 Long-term amounts receivable 18,789 26,502 Total amounts receivable 270,327 271,535 |
Aging of trade receivables | The aging of trade receivables not impaired is as follows: June 30, June 30, $ $ Less than 60 days 131,683 125,081 Between 60 and 90 days 5,863 1,833 Over 90 days 15,915 5,069 153,461 131,983 |
Provision for impairment of trade receivables | Provision for impairment of trade receivables: June 30, June 30, $ $ Opening balance 4,772 6,459 Provision for receivables 5,089 3,857 Receivables written off during the period (197 ) (5,300 ) Recoveries of receivables previously provided for (12 ) (94 ) Foreign exchange 90 (150 ) Closing balance 9,742 4,772 |
Investment in film and televi36
Investment in film and television programs (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Inventories [Abstract] | |
Disclosure of detailed information about inventory | The continuity of investment in film and television programs is as follows: June 30, June 30, $ $ Net opening investment in film and television programs 195,180 140,444 Increase in development costs 434 238 Cost of productions (completed and released and productions in progress), net of government assistance and third-party assistance 33,088 88,021 Expense of investment in film and television programs (33,554 ) (24,348 ) Write-down of investment in film and television programs (4,779 ) (1,177 ) Increase of program and film rights - broadcasting 14,110 15,839 Expense of program and film rights - broadcasting (18,546 ) (22,515 ) Write-down of program and film rights - broadcasting (2,787 ) — Foreign exchange 2,862 (1,322 ) 186,008 195,180 June 30, June 30, $ $ Development costs 2,112 1,678 Productions in progress Cost, net of government and third-party assistance 17,577 37,346 Productions completed and released Cost, net of government and third-party assistance 529,494 473,775 Accumulated expense (377,041 ) (343,487 ) Accumulated write-down of investment in film and television programs (15,910 ) (11,131 ) 136,543 119,157 Program and film rights - broadcasting Cost 134,765 120,655 Accumulated expense (102,202 ) (83,656 ) Accumulated write-down of program and film rights (2,787 ) — 29,776 36,999 186,008 195,180 |
Acquired and library content (T
Acquired and library content (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Intangible Assets [Abstract] | |
Disclosure of detailed information about intangible assets | Amortization is provided on a straight-line basis over the estimated useful life of the assets, using the following annual rates and methods: Broadcaster relationships 7 to 10 years straight-line Customer relationships 10 years straight-line Brands 10 to 20 years straight-line or indefinite life Production and distribution rights 10 to 25 years straight-line Production backlog 2 to 3 years straight-line Non-compete contracts 3 years straight-line Production software 5 years straight-line June 30, June 30, $ $ Net opening acquired and library content 155,940 88,462 Additions IED (note 5) — 74,618 Additions Kiddyzuzaa (note 5) — 3,484 Additions Ellie Sparkles (note 5) 8,406 — Write-down of acquired and library content (3,402 ) (363 ) Amortization (15,916 ) (10,541 ) Foreign exchange 2,060 280 147,088 155,940 Broadcast licenses Broadcaster relationships Customer relationships Brands (1) Production and distribution rights (2) Other (3) Total $ $ $ $ $ $ $ For the year ended June 30, 2017 Opening book value 67,800 1,262 21,653 24,853 25,843 3,199 144,610 IED acquisition (note 5) — — — 422,012 — — 422,012 Additions — — — 969 — — 969 Amortization — (732 ) (2,747 ) (3,177 ) (2,387 ) (2,336 ) (11,379 ) Foreign exchange differences — 1 (226 ) (76 ) (503 ) — (804 ) Net book value 67,800 531 18,680 444,581 22,953 863 555,408 At June 30, 2017 Cost 67,800 7,362 27,920 458,260 30,946 7,327 599,615 Accumulated amortization — (6,875 ) (9,680 ) (13,918 ) (3,551 ) (6,464 ) (40,488 ) Foreign exchange differences — 44 440 239 (4,442 ) — (3,719 ) Net book value 67,800 531 18,680 444,581 22,953 863 555,408 For the year ended June 30, 2018 Opening book value 67,800 531 18,680 444,581 22,953 863 555,408 Additions — — — — — 1,074 1,074 Amortization — (299 ) (2,792 ) (8,899 ) (2,458 ) (898 ) (15,346 ) Impairment — — — (1,059 ) — — (1,059 ) Foreign exchange differences — — 89 6,091 674 66 6,920 Net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 At June 30, 2018 Cost 67,800 7,362 27,920 457,201 30,946 8,401 599,630 Accumulated amortization — (7,174 ) (12,472 ) (22,817 ) (6,009 ) (7,362 ) (55,834 ) Foreign exchange differences — 44 529 6,330 (3,768 ) 66 3,201 Net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 (1) Included in Brands are $350,419 of indefinite life intangibles (2017 - $345,319 ). (2) Productions and distribution rights represent rights acquired by the Company to produce and/or distribute television content where the Company does not own the underlying intellectual properties. (3) Comprised of production backlog, non-compete contracts and production software. |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment | Amortization is provided, commencing when the asset is available for use, over the estimated useful life of the asset, using the following annual rates and methods: Buildings 4% declining balance Furniture, fixtures and other equipment 5% to 20% declining balance Computer equipment 30% declining balance Post-production equipment 30% declining balance Computer software 2 years straight-line Website design 2 years straight-line Leasehold improvements Straight-line over the term of lease Land Building Furniture, fixtures and equipment Computer equipment Post-production equipment Computer software Leasehold improvements Total $ $ $ $ $ $ $ $ For the year ended June 30, 2017 Opening net book value 4,276 1,792 1,354 2,811 2,917 1,040 3,493 17,683 IED Acquisition — — — 104 — — — 104 Additions — — 1,071 1,087 8,223 344 8,872 19,597 Disposals, net — — — (170 ) — — — (170 ) Transfers, net — 158 — — — — (158 ) — Amortization — (12 ) (314 ) (1,475 ) (2,852 ) (488 ) (1,045 ) (6,186 ) Foreign exchange differences — — — (32 ) — — — (32 ) Net book value 4,276 1,938 2,111 2,325 8,288 896 11,162 30,996 At June 30, 2017 Cost 4,276 2,070 6,281 12,536 13,966 4,896 14,372 58,397 Accumulated amortization — (132 ) (4,178 ) (10,419 ) (5,678 ) (4,056 ) (3,226 ) (27,689 ) Foreign exchange differences — — 8 208 — 56 16 288 Net book value 4,276 1,938 2,111 2,325 8,288 896 11,162 30,996 For the year ended June 30, 2018 Opening net book value 4,276 1,938 2,111 2,325 8,288 896 11,162 30,996 Additions — 73 349 852 6,055 331 616 8,276 Disposals, net — — — — — — (104 ) (104 ) Amortization — (78 ) (738 ) (1,147 ) (4,907 ) (429 ) (1,529 ) (8,828 ) Foreign exchange differences — — 1 84 — 9 2 96 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 At June 30, 2018 Cost 4,276 2,143 6,630 13,388 20,021 5,227 14,884 66,569 Accumulated amortization — (210 ) (4,916 ) (11,566 ) (10,585 ) (4,485 ) (4,755 ) (36,517 ) Foreign exchange differences — — 9 292 — 65 18 384 Net book value 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Intangible Assets [Abstract] | |
Disclosure of detailed information about intangible assets | Amortization is provided on a straight-line basis over the estimated useful life of the assets, using the following annual rates and methods: Broadcaster relationships 7 to 10 years straight-line Customer relationships 10 years straight-line Brands 10 to 20 years straight-line or indefinite life Production and distribution rights 10 to 25 years straight-line Production backlog 2 to 3 years straight-line Non-compete contracts 3 years straight-line Production software 5 years straight-line June 30, June 30, $ $ Net opening acquired and library content 155,940 88,462 Additions IED (note 5) — 74,618 Additions Kiddyzuzaa (note 5) — 3,484 Additions Ellie Sparkles (note 5) 8,406 — Write-down of acquired and library content (3,402 ) (363 ) Amortization (15,916 ) (10,541 ) Foreign exchange 2,060 280 147,088 155,940 Broadcast licenses Broadcaster relationships Customer relationships Brands (1) Production and distribution rights (2) Other (3) Total $ $ $ $ $ $ $ For the year ended June 30, 2017 Opening book value 67,800 1,262 21,653 24,853 25,843 3,199 144,610 IED acquisition (note 5) — — — 422,012 — — 422,012 Additions — — — 969 — — 969 Amortization — (732 ) (2,747 ) (3,177 ) (2,387 ) (2,336 ) (11,379 ) Foreign exchange differences — 1 (226 ) (76 ) (503 ) — (804 ) Net book value 67,800 531 18,680 444,581 22,953 863 555,408 At June 30, 2017 Cost 67,800 7,362 27,920 458,260 30,946 7,327 599,615 Accumulated amortization — (6,875 ) (9,680 ) (13,918 ) (3,551 ) (6,464 ) (40,488 ) Foreign exchange differences — 44 440 239 (4,442 ) — (3,719 ) Net book value 67,800 531 18,680 444,581 22,953 863 555,408 For the year ended June 30, 2018 Opening book value 67,800 531 18,680 444,581 22,953 863 555,408 Additions — — — — — 1,074 1,074 Amortization — (299 ) (2,792 ) (8,899 ) (2,458 ) (898 ) (15,346 ) Impairment — — — (1,059 ) — — (1,059 ) Foreign exchange differences — — 89 6,091 674 66 6,920 Net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 At June 30, 2018 Cost 67,800 7,362 27,920 457,201 30,946 8,401 599,630 Accumulated amortization — (7,174 ) (12,472 ) (22,817 ) (6,009 ) (7,362 ) (55,834 ) Foreign exchange differences — 44 529 6,330 (3,768 ) 66 3,201 Net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 (1) Included in Brands are $350,419 of indefinite life intangibles (2017 - $345,319 ). (2) Productions and distribution rights represent rights acquired by the Company to produce and/or distribute television content where the Company does not own the underlying intellectual properties. (3) Comprised of production backlog, non-compete contracts and production software. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in goodwill | The continuity of goodwill is as follows: June 30, June 30, $ $ Opening net book value 240,534 214,325 Acquired on acquisition of IED (note 5) (537 ) 25,818 Acquired on acquisition of Kiddyzuzaa (note 5) — 695 Exchange differences 809 (304 ) 240,806 240,534 |
Disclosure of information for cash-generating units | To determine the recoverable amount for each of it's CGU's, the Company applied the following valuation methods: CGU's Valuation methodology Content Business Value-in-use Peanuts FVLCS DHX Television Value-in-use The following table shows the key assumptions used to estimate the recoverable amounts of the groups of CGUs: Assumptions used Perpetual Pre-tax CGU's growth rate discount rate Content Business 3.0 % 12.2 % DHX Television 0.0 % 15.5 % |
Bank indebtedness, interim pr41
Bank indebtedness, interim production financing, long-term debt and obligations under financing leases (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | Long-term debt and obligations under finance leases June 30, June 30, $ $ Term Facility, net of unamortized issue costs of $22,232 (June 30, 2017 - $26,107) 623,066 616,339 Special Warrants, net of unamortized issue costs of $nil (June 30, 2017 - $6,249) — 133,751 Senior Unsecured Convertible Debentures, net of unamortized issue costs of $5,588 (June 30, 2017 - $nil) and embedded derivatives at fair value of $11,940 (June 30, 2017 - $nil) 124,747 — Senior Unsecured Notes — 225,000 Obligations under various finance leases, bearing interest at rates ranging from 4.0% to 9.8%, maturing on dates ranging from July 2018 to March 2021 8,757 8,245 756,570 983,335 Less: Current portion (10,524 ) (234,876 ) 746,046 748,459 Interim production financing June 30, June 30, $ $ Interim production credit facilities with various institutions, bearing interest at bank prime plus 0.5% - 1.0%. Assignment and direction of specific production financing, licensing contracts receivable and film tax credits receivable with a net book value of approximately $115,639 at June 30, 2018 (June 30, 2017 - $131,186) have been pledged as security. 93,683 101,224 June 30, June 30, $ $ Bank indebtedness 16,350 — Interim production financing 93,683 101,224 Long-term debt and obligations under finance leases 756,570 983,335 Interest bearing debt and obligations under finance leases 866,603 1,084,559 Amount due within 12 months (120,557 ) (336,100 ) Amount due beyond 12 months 746,046 748,459 |
Disclosure of repayments of borrowings | The aggregate amount of scheduled principal repayments, excluding any potential Excess Cash Flow Payments, required in each of the next five years is as follows: $ Year ending June 30, 2019 10,524 2020 8,611 2021 8,254 2022 7,440 2023 and beyond 759,225 Contractual maturity analysis for financial liabilities Less than 1 to 3 4 to 5 After 5 Total 1 year years years years $ $ $ $ $ Bank indebtedness 16,350 16,350 — — — Accounts payable and accrued liabilities 130,545 130,545 — — — Interim production financing 93,683 93,683 — — — Other liabilities 8,150 — 8,150 — — Senior Unsecured Convertible Debentures 193,474 8,225 16,450 16,450 152,349 Term Facility 747,021 24,197 47,856 47,273 627,695 Finance lease obligations 9,435 4,364 4,132 939 — 1,198,658 277,364 76,588 64,662 780,044 |
Share capital and contributed42
Share capital and contributed surplus (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Disclosure of classes of share capital | June 30, 2018 June 30, 2017 Number Amount Number Amount $ $ Preferred variable voting shares (note 13 (a)) 100,000,000 — 100,000,000 — Common shares (note 13 (c)) Opening balance 134,061,548 304,320 133,774,729 302,828 Dividend reinvestment 108,180 419 195,319 1,138 Shares issued pursuant to the ESPP 43,496 199 31,500 205 PSU's settled 20,666 69 — — Options exercised 60,000 160 60,000 149 Ending balance 134,293,890 305,167 134,061.548 304,320 |
Disclosure of number and weighted average exercise prices of share options | As at June 30, 2018 and 2017, the Company had the following stock options outstanding: Weighted average Number of exercise price options per stock option Outstanding at June 30, 2016 7,137,125 6.93 Granted 1,742,400 6.79 Exercised (60,000 ) 1.73 Outstanding at June 30, 2017 8,819,525 6.93 Granted 1,920,000 5.69 Forfeited (2,431,050 ) 7.85 Cancelled (125,000 ) 7.13 Exercised (60,000 ) 1.81 Outstanding at June 30, 2018 8,123,475 6.41 Exercisable at June 30, 2018 4,297,150 6.12 |
Weighted average grant date value of stock options and assumptions | The weighted average grant date value of stock options and assumptions using the Black-Scholes option pricing model for the year ended June 30, 2018 and 2017 are as follows: 2018 2017 Weighted average grant date value $ 1.67 $ 2.01 Risk-free rate 1.45 % 0.69 % Expected option life 5 years 5 years Expected volatility 36 % 37 % Expected dividend yield 1.35 % 1.08 % |
Disclosure of range of exercise prices of outstanding share options | Information related to options outstanding at June 30, 2018 is presented below. Number Weighted Weighted Number Weighted Range of outstanding at average average exercisable at average exercise prices June 30, remaining exercise June 30, exercise 2018 contractual life price 2017 price years $ $ $1.50 - $3.49 655,625 0.03 2.03 655,625 2.03 $3.50 - $5.49 1,170,000 1.90 4.43 870,000 4.07 $5.50 - $7.49 4,027,100 4.35 6.57 1,324,900 7.00 $7.50 - $9.49 2,270,750 2.71 8.40 1,446,625 8.40 Total 8,123,475 3.19 6.41 4,297,150 6.12 |
Disclosure of number and weighted average remaining contractual life of outstanding share options | Information related to options outstanding at June 30, 2018 is presented below. Number Weighted Weighted Number Weighted Range of outstanding at average average exercisable at average exercise prices June 30, remaining exercise June 30, exercise 2018 contractual life price 2017 price years $ $ $1.50 - $3.49 655,625 0.03 2.03 655,625 2.03 $3.50 - $5.49 1,170,000 1.90 4.43 870,000 4.07 $5.50 - $7.49 4,027,100 4.35 6.57 1,324,900 7.00 $7.50 - $9.49 2,270,750 2.71 8.40 1,446,625 8.40 Total 8,123,475 3.19 6.41 4,297,150 6.12 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Taxes [Abstract] | |
Disclosure of temporary difference, unused tax losses and unused tax credits | Significant components of the Company’s net deferred income tax liability as at June 30, 2018 and 2017 are as follows: June 30, June 30, $ $ Broadcast licenses (17,967 ) (17,967 ) Tangible benefit obligation 2,171 2,352 Leasehold inducement — 123 Foreign tax credits 2,324 85 Participation payables and finance lease obligations and other liabilities — 64 Property and equipment 697 (1,724 ) Share issuance costs and deferred financing fees (1,603 ) (1,051 ) Investment in film and television programs and acquired and library content (27,568 ) (7,782 ) Intangible assets (9,633 ) (6,278 ) Non-capital losses and other 33,900 17,619 Net deferred income tax liability (17,679 ) (14,559 ) |
Disclosure of reconciliation of accounting profit multiplied by applicable tax rates and average effective tax rate | The reconciliation of income taxes computed at the statutory tax rates to income tax expense (recovery) is as follows: June 30, June 30, $ $ Income tax expense (recovery) based on combined federal and provincial tax rates of 31% (June 30, 2017 - 31%) (1,664 ) (113 ) Income taxes increased (reduced) by: Share-based compensation 915 1,792 Non-taxable portion of capital gain (1,024 ) — Tax rate differential 3,675 (1,252 ) Non-controlling interest (2,223 ) — Non-deductible acquisition costs — 1,244 Tax rate change on opening balance 2,120 — Other (308 ) 200 Provision for income taxes 1,491 1,871 |
Finance income and finance ex44
Finance income and finance expense (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Analysis of income and expense [abstract] | |
Summary of finance income and finance expense | Finance income and finance expense are comprised of the following: June 30, June 30, $ $ Finance income Interest income 1,147 556 Gain on movement in fair value of the embedded derivatives on Senior Unsecured Convertible Debentures and Senior Unsecured Notes 11,251 1,968 12,398 2,524 Finance expense Interest expense on bank indebtedness 788 348 Accretion of tangible benefit obligation 539 651 Interest on long-term debt, obligations under finance leases and other 48,343 18,181 Early redemption penalties — 13,464 Accretion on Senior Unsecured Convertible Debentures 1,586 — Debt extinguishment charge — 6,990 Amortization of debt premium on Senior Unsecured Notes — 118 Net foreign exchange loss 7,700 3,226 58,956 42,978 |
Expenses by nature and employ45
Expenses by nature and employee benefit expense (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Analysis of income and expense [abstract] | |
Disclosure of components of expenses by nature | The following sets out the expenses by nature: June 30, June 30, $ $ Investment in film and television programs Direct production and new media costs 192,143 96,249 Expense of film and television programs 33,554 24,348 Expense of film and broadcast rights for broadcasting 18,546 22,515 Write-down of investment in film and television programs and acquired and library content 10,968 1,540 Development, integration and other 10,554 3,435 Impairment of intangible assets 1,059 — Amortization of acquired and library content 15,916 10,541 Office and administrative 21,704 20,395 Acquisition costs — 9,695 Finance expense, net 46,558 40,454 Investor relations and marketing 3,322 2,902 Professional and regulatory 7,804 5,363 Amortization of property and equipment and intangible assets 24,174 17,565 386,302 255,002 The following sets out the components of employee benefits expense: Salaries and employee benefits 50,421 39,606 Share-based compensation 2,950 5,867 53,371 45,473 439,673 300,475 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Financial Instruments [Abstract] | |
Disclosure of contractual maturity analysis for financial liabilities | The aggregate amount of scheduled principal repayments, excluding any potential Excess Cash Flow Payments, required in each of the next five years is as follows: $ Year ending June 30, 2019 10,524 2020 8,611 2021 8,254 2022 7,440 2023 and beyond 759,225 Contractual maturity analysis for financial liabilities Less than 1 to 3 4 to 5 After 5 Total 1 year years years years $ $ $ $ $ Bank indebtedness 16,350 16,350 — — — Accounts payable and accrued liabilities 130,545 130,545 — — — Interim production financing 93,683 93,683 — — — Other liabilities 8,150 — 8,150 — — Senior Unsecured Convertible Debentures 193,474 8,225 16,450 16,450 152,349 Term Facility 747,021 24,197 47,856 47,273 627,695 Finance lease obligations 9,435 4,364 4,132 939 — 1,198,658 277,364 76,588 64,662 780,044 |
Disclosure of fair value measurement of liabilities | The following table summarizes the fair value and carrying value of other financial liabilities that are not recognized at fair value on a recurring basis on the consolidated balance sheets: As at June 30, 2018 June 30, 2017 Fair value hierarchy Fair value liability Carrying value Fair value hierarchy Fair value liability Carrying value Term Facility (1) Level 2 645,298 645,298 Level 2 642,363 642,363 Senior Unsecured Notes (2) Level 2 — — Level 2 225,000 225,000 Obligations under finance leases Level 2 8,757 8,757 Level 2 8,245 8,245 Special Warrants Level 3 — — Level 3 140,000 140,000 Senior Unsecured Convertible Debentures (3) Level 1 123,200 130,355 N/A — — Interim production financing (4) Level 2 93,683 93,683 Level 2 101,224 101,224 Other liabilities (5) Level 3 8,150 8,150 Level 3 11,422 11,422 (1) The interest rates on the Term Facility resets regularly; therefore, the fair value, using a market approach approximates the carrying value. (2) Management estimates the fair value using a market approach, based on publicly disclosed trades between arm's length parties. (3) The fair value of the convertible debentures is based on market quotes as these are actively traded on the open exchange. (4) Interim production financing bears interest at variable rates, therefore management believes the fair value approximates the carrying value. (5) The fair value of other liabilities, which includes the tangible benefit obligations, the long-term portion of certain other contractual liabilities and excludes deferred lease inducements, was estimated based on discounting the expected future cash flows. The key unobservable assumptions in calculating the fair value are the timing of the payments over the next four years related to the tangible benefit obligation included in other liabilities, and the discount rate used for discounting the other liabilities. As at June 30, 2018 June 30, 2017 Fair value hierarchy Fair value (1) Fair value hierarchy Fair value (1) Derivatives Embedded derivatives (2) Level 2 (11,940 ) Level 2 — Foreign currency forwards (3) Level 2 (61 ) Level 2 (174 ) (1) The Company values its derivatives using valuations that are calibrated to the initial trade prices. Subsequent valuations are based on observable inputs to the valuation model. (2) The fair values of embedded derivatives are determined using valuation models. (3) The fair value of forward currency contracts is determined using prevailing exchange rates. |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of operating lease by lessee | The future aggregate minimum payments are as follows: $ Year ended June 30, 2019 9,884 2020 8,933 2021 7,563 2022 6,925 Beyond 2022 26,762 |
Capital disclosures (Tables)
Capital disclosures (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of capital items | The Company’s capital at June 30, 2018 and 2017 is summarized in the table below: June 30, June 30, $ $ Total bank indebtedness, long-term debt and obligations under capital leases, excluding interim production financing 772,920 983,335 Less: Cash and cash held in trust (46,550 ) (302,020 ) Net debt 726,370 681,315 Total Shareholders’ Equity 400,792 415,853 1,127,162 1,097,168 |
Earnings per common share (Tabl
Earnings per common share (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings per share [abstract] | |
Earnings per share | June 30, June 30, $ $ Net loss attributable to shareholders of the Company (14,060 ) (3,634 ) Weighted average number of common shares 134,505,625 134,059,478 Diluted loss per share (0.10 ) (0.03 ) Basic earnings per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. June 30, June 30, $ $ Net loss attributable to shareholders of the Company (14,060 ) (3,634 ) Weighted average number of common shares 134,505,625 134,059,478 Basic loss per share (0.10 ) (0.03 ) |
Statement of cash flows - sup50
Statement of cash flows - supplementary information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Cash Flow Statement [Abstract] | |
Disclosure of other non cash items operating activities | Net change in non-cash balances related to operations June 30, June 30, 2018 2017 $ $ Decrease (increase) in amounts receivable 7,345 (44,457 ) Decrease (increase) in prepaid expenses and deposits and other 1,512 (526 ) Decrease (increase) in long-term amounts receivable 7,713 2,912 Increase (decrease) in accounts payable and accrued liabilities (41,475 ) 47,601 Increase (decrease) in deferred revenue (5,558 ) 10,899 Tangible benefit obligation payments (859 ) (3,599 ) (31,322 ) 12,830 During the year, the Company paid and received the following: $ $ Interest paid 45,156 19,250 Interest received 342 556 Taxes paid 3,694 15,996 |
Schedule of net change film and television programs | Net change in film and television programs June 30, June 30, 2018 2017 $ $ Decrease (increase) in development (434 ) (238 ) Decrease (increase) in productions in progress 19,769 (12,285 ) Decrease (increase) in productions completed and released (52,854 ) (75,736 ) Expense of film and television programs 33,554 24,348 Decrease (increase) in program and film rights - broadcasting (14,110 ) (15,839 ) Expense of film and broadcast rights for broadcasting 18,546 22,515 4,471 (57,235 ) |
Disclosure of reconciliation of liabilities arising from financing activities | Reconciliation between the opening and closing balances in the consolidated balance sheet arising from financing activities Senior Unsecured Senior Term Special Convertible Unsecured Finance Facility Warrants Debentures Notes leases Total $ $ $ $ $ $ Balance - June 30, 2017 616,339 133,751 — 225,000 8,245 983,335 Repayments (6,425 ) — — (225,000 ) (5,338 ) (236,763 ) Issue costs (226 ) — (313 ) — — (539 ) Total financing cash flow activities (6,651 ) — (313 ) (225,000 ) (5,338 ) (237,302 ) Conversion to Senior Unsecured Convertible Debentures — (133,751 ) 133,751 — — — Amortization of deferred financing costs 4,018 — 974 — — 4,992 New finance leases — — — — 5,850 5,850 Movement in fair value of embedded derivatives — — (11,251 ) — — (11,251 ) Accretion on Senior Unsecured Convertible Debentures — — 1,586 — — 1,586 Unrealized foreign exchange loss 9,360 — — — — 9,360 Total financing non-cash activities 13,378 (133,751 ) 125,060 — 5,850 10,537 Balance - June 30, 2018 623,066 — 124,747 — 8,757 756,570 Former Senior Term Special Term Unsecured Finance Facility Warrants Facility Notes leases Total $ $ $ $ $ $ Balance - June 30, 2016 — — 67,578 219,928 4,567 292,073 New debt 642,362 140,000 — — — 782,362 Debt extinguishment cost — — 1,116 5,874 — 6,990 Realized foreign exchange — — — 372 — 372 Repayments — — (69,106 ) — (4,517 ) (73,623 ) Issue costs (26,023 ) (6,322 ) (18 ) (332 ) — (32,695 ) Total financing cash flow activities 616,339 133,678 (68,008 ) 5,914 (4,517 ) 683,406 Amortization of deferred financing costs — 73 430 1,008 — 1,511 Amortization of premium — — — 118 — 118 New finance leases — — — — 8,195 8,195 Movement in fair value of embedded derivatives — — — (1,968 ) — (1,968 ) Total financing non-cash activities — 73 430 (842 ) 8,195 7,856 Balance - June 30, 2017 616,339 133,751 — 225,000 8,245 983,335 |
Revenues and segmented inform51
Revenues and segmented information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | Year ended June 30, 2018 CPLG DHX Television Content Consolidated $ $ $ $ Revenues 13,034 55,014 366,368 434,416 Direct production costs and expense of film and television produced, and selling, general and administrative 15,285 33,459 257,891 306,635 Segment profit (2,251 ) 21,555 108,477 127,781 Corporate selling, general and administrative 23,809 Amortization of property and equipment and intangible assets 24,174 Finance expense, net 46,558 Amortization of acquired and library content 15,916 Write-down of investment in film and television programs and acquired and library content, and impairment intangible assets 12,027 Development, integration and other 10,554 Loss before income taxes (5,257 ) Year ended June 30, 2017 CPLG DHX Television Content Consolidated $ $ $ $ Revenues 18,814 57,384 222,514 298,712 Direct production costs and expense of film and television produced, and selling, general and administrative 16,589 35,276 140,132 191,997 Segment profit 2,225 22,108 82,382 106,715 Corporate selling, general and administrative 25,248 Amortization of property and equipment and intangible assets 17,565 Finance expense, net 40,454 Amortization of acquired and library content 10,541 Write-down of acquired and library content 1,540 Acquisition costs 9,695 Development, integration and other 3,435 Loss before income taxes (1,763 ) |
Disclosure of disaggregation of revenue from contracts with customers | The following table presents further components of revenue derived from the following areas: June 30, June 30, $ $ Content Production revenue 19,793 36,877 Distribution revenue 124,094 100,408 Merchandising and licensing and other revenue 144,712 26,253 Producer and service fee revenue 77,769 58,976 366,368 222,514 DHX Television Subscriber revenue 51,102 53,240 Promotion and advertising revenue 3,912 4,144 55,014 57,384 CPLG Third party brand representation revenue 13,034 18,814 434,416 298,712 |
Significant accounting polici52
Significant accounting policies, judgments and estimation uncertainty - Investment in film and television programs (Details) | Jun. 30, 2018 |
Bottom of range | |
Disclosure Of Detailed Information About Investment In Firm and Television Programs [Line Items] | |
Declining balance method, amortization range rate, initial delivery | 40.00% |
Declining balance method, amortization range rate, after initial delivery | 10.00% |
Top of range | |
Disclosure Of Detailed Information About Investment In Firm and Television Programs [Line Items] | |
Declining balance method, amortization range rate, initial delivery | 100.00% |
Declining balance method, amortization range rate, after initial delivery | 25.00% |
Significant accounting polici53
Significant accounting policies, judgments and estimation uncertainty - Acquired and library content (Details) - Acquired and library content | 12 Months Ended |
Jun. 30, 2018 | |
Bottom of range | |
Disclosure Of Detailed Information About Acquired And Library Content [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 1000.00% |
Top of range | |
Disclosure Of Detailed Information About Acquired And Library Content [Line Items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 2000.00% |
Significant accounting polici54
Significant accounting policies, judgments and estimation uncertainty - Development costs (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of notes and other explanatory information [Abstract] | |
Years from date of initial recognition | 3 years |
Significant accounting polici55
Significant accounting policies, judgments and estimation uncertainty - Property and equipment (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Building | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment rate | 4.00% |
Furniture, fixtures and equipment | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment rate | 5.00% |
Furniture, fixtures and equipment | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment rate | 20.00% |
Computer equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment rate | 30.00% |
Post-production equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment rate | 30.00% |
Computer software | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment period | 2 years |
Website design | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives or depreciation rates, property, plant and equipment period | 2 years |
Significant accounting polici56
Significant accounting policies, judgments and estimation uncertainty - Intangible assets (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Customer relationships | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 10 years |
Non-compete contracts | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 3 years |
Production software | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 5 years |
Bottom of range | Broadcaster relationships | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 7 years |
Bottom of range | Brands | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 10 years |
Bottom of range | Production and distribution rights | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 10 years |
Bottom of range | Production backlog | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 2 years |
Top of range | Broadcaster relationships | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 10 years |
Top of range | Brands | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 20 years |
Top of range | Production and distribution rights | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 25 years |
Top of range | Production backlog | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 3 years |
Significant accounting polici57
Significant accounting policies, judgments and estimation uncertainty - Share-based compensation (Details) - Stock Options | 12 Months Ended |
Jun. 30, 2018 | |
Top of range | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Stock options vesting period | 4 years |
Stock options expiration period | 7 years |
Bottom of range | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Stock options expiration period | 5 years |
Significant accounting polici58
Significant accounting policies, judgments and estimation uncertainty - Tangible benefit obligation (Details) $ in Thousands | Jul. 31, 2014CAD ($) |
Disclosure of detailed information about tangible assets [Line Items] | |
Tangible benefit contribution period | 7 years |
Financial liabilities at fair value | |
Disclosure of detailed information about tangible assets [Line Items] | |
Tangible benefit requirement | $ 17,313 |
Significant accounting polici59
Significant accounting policies, judgments and estimation uncertainty - Accounting standards issued but not yet applied (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2018CAD ($) | |
Bottom of range | IFRS 9 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Cumulative effect of new accounting principle in period of adoption | $ 500 |
Bottom of range | IFRS 15 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Cumulative effect of new accounting principle, increase in defecit | 4,000 |
Top of range | IFRS 9 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Cumulative effect of new accounting principle in period of adoption | 1,500 |
Top of range | IFRS 15 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Cumulative effect of new accounting principle, increase in defecit | $ 9,000 |
Compensation of key managemen60
Compensation of key management (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party [Abstract] | ||
Salaries and employee benefits | $ 4,205 | $ 2,694 |
Share-based compensation | 2,146 | 2,738 |
Termination benefits | 2,899 | 0 |
Total compensation earned by key management | $ 9,250 | $ 5,432 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) £ in Thousands, $ in Thousands | Jul. 23, 2018CAD ($) | Jun. 30, 2017CAD ($)agreement | Jun. 30, 2017USD ($) | Mar. 03, 2017GBP (£) | Jun. 30, 2018CAD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017CAD ($)agreement | Jun. 30, 2017USD ($) | Sep. 15, 2017CAD ($)earn_out | Sep. 15, 2017USD ($)earn_out | Jun. 30, 2017USD ($)agreement | Mar. 03, 2017CAD ($) |
Disclosure of detailed information about business combination [line items] | ||||||||||||
Payable in relation to performance based target | $ 0 | |||||||||||
Net change in non-cash balances related to operations (note 22) | $ 31,322 | $ (12,830) | ||||||||||
Goodwill | $ 240,534 | $ 240,806 | 240,534 | |||||||||
Peanuts | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Percentage of voting equity interests acquired | 80.00% | |||||||||||
Proportion of voting rights held by non-controlling interests | 20.00% | 20.00% | ||||||||||
Major business combination | Peanuts | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Consideration paid | $ 235,600 | |||||||||||
Proportion of ownership interest in subsidiary | 41.00% | |||||||||||
Major business combination | Sony Music Entertainment Japan Inc. (SMEJ) | Peanuts | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 39.00% | |||||||||||
Percentage equity interests sold | 49.00% | |||||||||||
Ellie Sparkles | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Percentage of voting equity interests acquired | 51.00% | 51.00% | ||||||||||
Consideration paid | $ 4,350 | $ 3,570,000 | ||||||||||
Number of performance based earn-outs | earn_out | 2 | 2 | ||||||||||
Consideration transferred, acquisition-date fair value | $ 4,350 | |||||||||||
IED | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Consideration paid | $ 447,707 | 447,707 | $ 345,000,000 | |||||||||
Consideration transferred, acquisition-date fair value | 453,070 | 453,070 | $ 349,132,000 | |||||||||
Net change in non-cash balances related to operations (note 22) | $ 1,950 | $ 1,503,000 | $ 3,413 | $ 2,629,000 | $ 5,363 | $ 4,132,000 | ||||||
Number of member interest purchase agreements | agreement | 2 | 2 | 2 | |||||||||
Goodwill | $ 25,149 | $ 25,149 | ||||||||||
IED | Peanuts | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 80.00% | 80.00% | ||||||||||
IED | Shortcake IP Holdings LLC | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | ||||||||||
IED | IBGNYC LLC | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | ||||||||||
IED | IBGSCREEN LLC | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | ||||||||||
Kiddyzuzaa | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Percentage of voting equity interests acquired | 80.00% | 80.00% | ||||||||||
Consideration paid | £ 1,290 | $ 2,121 | ||||||||||
Consideration transferred, acquisition-date fair value | 2,787 | |||||||||||
Goodwill | 695 | |||||||||||
Contingent consideration, commercial exploration period for target earn-out | 2 years | |||||||||||
Kiddyzuzaa | First Anniversary of Acquisition Closing Date | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Consideration paid | £ 202 | 333 | ||||||||||
Kiddyzuzaa | Second Anniversary of Acquisition Closing Date | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Consideration paid | 202 | 333 | ||||||||||
Subsidiaries | Family of Charles M. Schulz | Peanuts | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Fee received based on revenues less shareable costs of subsidiary | $ 54,082 | |||||||||||
Performance Target Earnout | Ellie Sparkles | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Estimated financial effect, contingent liabilities in business combination | $ 1,218 | $ 1,000,000 | ||||||||||
Performance Target Earnout | Kiddyzuzaa | ||||||||||||
Disclosure of detailed information about business combination [line items] | ||||||||||||
Estimated financial effect, contingent liabilities in business combination | £ 322 | $ 530 |
Acquisitions - Purchase price a
Acquisitions - Purchase price allocation (Details) $ in Thousands, $ in Thousands | Jun. 30, 2018CAD ($) | Sep. 15, 2017CAD ($) | Jun. 30, 2017CAD ($) | Jun. 30, 2017USD ($) | Mar. 03, 2017CAD ($) |
Assets | |||||
Goodwill | $ 240,806 | $ 240,534 | |||
Ellie Sparkles | |||||
Assets | |||||
Cash | $ 122 | ||||
Intangible assets | 8,406 | ||||
Total identifiable net assets at fair value | 8,528 | ||||
Liabilities | |||||
Non-controlling interest | 4,178 | ||||
Purchase consideration transferred | $ 4,350 | ||||
IED | |||||
Assets | |||||
Cash | 12,754 | ||||
Amounts receivable | 24,367 | ||||
Prepaid expenses and deposits | 1,787 | ||||
Long-term receivables | 8,661 | ||||
Property and equipment | 104 | ||||
Goodwill | 25,149 | ||||
Total identifiable net assets at fair value | 569,452 | ||||
Liabilities | |||||
Accounts payable and accrued liabilities | 10,938 | ||||
Deferred revenue | 14,575 | ||||
Other liabilities | 5,148 | ||||
Liabilities | 30,661 | ||||
Total identifiable net assets at fair value | 538,791 | ||||
Non-controlling interest | 85,721 | ||||
Purchase consideration transferred | 453,070 | $ 349,132 | |||
Kiddyzuzaa | |||||
Assets | |||||
Cash | $ 10 | ||||
Intangible assets | 3,484 | ||||
Goodwill | 695 | ||||
Total identifiable net assets at fair value | 4,189 | ||||
Liabilities | |||||
Accounts payable and accrued liabilities | 75 | ||||
Liabilities | 706 | ||||
Total identifiable net assets at fair value | 3,483 | ||||
Deferred income tax liabilities | 631 | ||||
Non-controlling interest | 696 | ||||
Purchase consideration transferred | $ 2,787 | ||||
Acquired and library content | IED | |||||
Assets | |||||
Intangible assets | 74,618 | ||||
Brands | IED | |||||
Assets | |||||
Intangible assets | $ 422,012 |
Amounts receivable - Amounts re
Amounts receivable - Amounts receivable summary (Details) - CAD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Trade receivables | $ 153,461 | $ 131,983 |
Goods and services tax recoverable, net | 1,203 | 1,411 |
Federal and provincial film tax credits and other government assistance | 96,874 | 111,639 |
Short-term amounts receivable | 251,538 | 245,033 |
Long-term amounts receivable | 18,789 | 26,502 |
Total amounts receivable | 270,327 | 271,535 |
Trade receivables | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Trade receivables | 163,203 | 136,755 |
Less: Provision for impairment of trade receivables | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Trade receivables | $ (9,742) | $ (4,772) |
Amounts receivable - Aging of t
Amounts receivable - Aging of trade receivables not impaired (Details) - Trade receivables - CAD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of provision matrix [line items] | ||
Financial assets | $ 153,461 | $ 131,983 |
Less than 60 days | ||
Disclosure of provision matrix [line items] | ||
Financial assets | 131,683 | 125,081 |
Between 60 and 90 days | ||
Disclosure of provision matrix [line items] | ||
Financial assets | 5,863 | 1,833 |
Over 90 days | ||
Disclosure of provision matrix [line items] | ||
Financial assets | $ 15,915 | $ 5,069 |
Amounts receivable - Provision
Amounts receivable - Provision for impairment of trade receivables (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Provision, opening balance | $ 4,772 | $ 6,459 |
Provision for receivables | 5,089 | 3,857 |
Receivables written off during the period | (197) | (5,300) |
Recoveries of receivables previously provided for | (12) | (94) |
Foreign exchange | 90 | (150) |
Provision, closing balance | $ 9,742 | $ 4,772 |
Investment in film and televi66
Investment in film and television programs - Schedule of investment in film and television programs (Details) - CAD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Disclosure Of Detailed Information About Inventory [Line Items] | |||
Development costs | $ 2,112 | $ 1,678 | |
Productions in progress | 17,577 | 37,346 | |
Productions completed and released | 136,543 | 119,157 | |
Program and film rights - broadcasting | 29,776 | 36,999 | |
Investment in film and television programs | 186,008 | 195,180 | $ 140,444 |
Cost | |||
Disclosure Of Detailed Information About Inventory [Line Items] | |||
Productions completed and released | 529,494 | 473,775 | |
Program and film rights - broadcasting | 134,765 | 120,655 | |
Accumulated amortization | |||
Disclosure Of Detailed Information About Inventory [Line Items] | |||
Productions completed and released | (377,041) | (343,487) | |
Program and film rights - broadcasting | (102,202) | (83,656) | |
Accumulated impairment | |||
Disclosure Of Detailed Information About Inventory [Line Items] | |||
Productions completed and released | (15,910) | (11,131) | |
Accumulated Write Down Of Program And Film Rights [Member] | |||
Disclosure Of Detailed Information About Inventory [Line Items] | |||
Program and film rights - broadcasting | $ (2,787) | $ 0 |
Investment in film and televi67
Investment in film and television programs - Continuity of investment in film and television programs (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Inventories [Abstract] | ||
Net opening investment in film and television programs | $ 195,180 | $ 140,444 |
Increase in development costs | 434 | 238 |
Cost of productions (completed and released and productions in progress), net of government assistance and third-party assistance | 33,088 | 88,021 |
Expense of investment in film and television programs | (33,554) | (24,348) |
Write-down of investment in film and television programs | (4,779) | (1,177) |
Increase of program and film rights - broadcasting | 14,110 | 15,839 |
Expense of program and film rights - broadcasting | (18,546) | (22,515) |
Write-down of program and film rights - broadcasting | (2,787) | 0 |
Foreign exchange | 2,862 | (1,322) |
Net ending investment in film and television programs | $ 186,008 | $ 195,180 |
Investment in film and televi68
Investment in film and television programs - Narrative (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Inventories [Abstract] | ||
Interest costs capitalised | $ 1,384 | $ 2,149 |
Acquired and library content (D
Acquired and library content (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Write-down of acquired and library content | $ (3,402) | $ (363) |
Acquired and library content | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 155,940 | 88,462 |
Write-down of acquired and library content | (3,402) | (363) |
Amortization | (15,916) | (10,541) |
Foreign exchange | 2,060 | 280 |
Net book value | 147,088 | 155,940 |
IED | Acquired and library content | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Additions through business combination | 0 | 74,618 |
Kiddyzuzaa | Acquired and library content | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Additions through business combination | 0 | 3,484 |
Ellie Sparkles | Acquired and library content | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Additions through business combination | $ 8,406 | $ 0 |
Property and equipment (Details
Property and equipment (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | $ 30,996 | $ 17,683 |
IED Acquisition | 104 | |
Additions | 8,276 | 19,597 |
Disposals, net | (104) | (170) |
Transfers, net | 0 | |
Amortization | (8,828) | (6,186) |
Foreign exchange differences | 96 | (32) |
Net book value | 30,436 | 30,996 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 58,397 | |
Net book value | 66,569 | 58,397 |
Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (27,689) | |
Net book value | (36,517) | (27,689) |
Foreign exchange differences | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 288 | |
Net book value | 384 | 288 |
Land | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 4,276 | 4,276 |
IED Acquisition | 0 | |
Additions | 0 | 0 |
Disposals, net | 0 | 0 |
Transfers, net | 0 | |
Amortization | 0 | 0 |
Foreign exchange differences | 0 | 0 |
Net book value | 4,276 | 4,276 |
Land | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 4,276 | |
Net book value | 4,276 | 4,276 |
Land | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 0 | |
Net book value | 0 | 0 |
Land | Foreign exchange differences | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 0 | |
Net book value | 0 | 0 |
Building | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 1,938 | 1,792 |
IED Acquisition | 0 | |
Additions | 73 | 0 |
Disposals, net | 0 | 0 |
Transfers, net | 158 | |
Amortization | (78) | (12) |
Foreign exchange differences | 0 | 0 |
Net book value | 1,933 | 1,938 |
Building | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 2,070 | |
Net book value | 2,143 | 2,070 |
Building | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (132) | |
Net book value | (210) | (132) |
Building | Foreign exchange differences | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 0 | |
Net book value | 0 | 0 |
Furniture, fixtures and equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 2,111 | 1,354 |
IED Acquisition | 0 | |
Additions | 349 | 1,071 |
Disposals, net | 0 | 0 |
Transfers, net | 0 | |
Amortization | (738) | (314) |
Foreign exchange differences | 1 | 0 |
Net book value | 1,723 | 2,111 |
Furniture, fixtures and equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 6,281 | |
Net book value | 6,630 | 6,281 |
Furniture, fixtures and equipment | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (4,178) | |
Net book value | (4,916) | (4,178) |
Furniture, fixtures and equipment | Foreign exchange differences | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 8 | |
Net book value | 9 | 8 |
Computer equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 2,325 | 2,811 |
IED Acquisition | 104 | |
Additions | 852 | 1,087 |
Disposals, net | 0 | (170) |
Transfers, net | 0 | |
Amortization | (1,147) | (1,475) |
Foreign exchange differences | 84 | (32) |
Net book value | 2,114 | 2,325 |
Computer equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 12,536 | |
Net book value | 13,388 | 12,536 |
Computer equipment | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (10,419) | |
Net book value | (11,566) | (10,419) |
Computer equipment | Foreign exchange differences | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 208 | |
Net book value | 292 | 208 |
Post-production equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 8,288 | 2,917 |
IED Acquisition | 0 | |
Additions | 6,055 | 8,223 |
Disposals, net | 0 | 0 |
Transfers, net | 0 | |
Amortization | (4,907) | (2,852) |
Foreign exchange differences | 0 | 0 |
Net book value | 9,436 | 8,288 |
Post-production equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 13,966 | |
Net book value | 20,021 | 13,966 |
Post-production equipment | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (5,678) | |
Net book value | (10,585) | (5,678) |
Post-production equipment | Foreign exchange differences | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 0 | |
Net book value | 0 | 0 |
Computer software | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 896 | 1,040 |
IED Acquisition | 0 | |
Additions | 331 | 344 |
Disposals, net | 0 | 0 |
Transfers, net | 0 | |
Amortization | (429) | (488) |
Foreign exchange differences | 9 | 0 |
Net book value | 807 | 896 |
Computer software | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 4,896 | |
Net book value | 5,227 | 4,896 |
Computer software | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (4,056) | |
Net book value | (4,485) | (4,056) |
Computer software | Foreign exchange differences | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 56 | |
Net book value | 65 | 56 |
Leasehold improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 11,162 | 3,493 |
IED Acquisition | 0 | |
Additions | 616 | 8,872 |
Disposals, net | (104) | 0 |
Transfers, net | (158) | |
Amortization | (1,529) | (1,045) |
Foreign exchange differences | 2 | 0 |
Net book value | 10,147 | 11,162 |
Leasehold improvements | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 14,372 | |
Net book value | 14,884 | 14,372 |
Leasehold improvements | Accumulated amortization | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (3,226) | |
Net book value | (4,755) | (3,226) |
Leasehold improvements | Foreign exchange differences | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 16 | |
Net book value | 18 | 16 |
Property, plant and equipment subject to operating leases | Computer equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 1,733 | |
Net book value | 1,690 | 1,733 |
Property, plant and equipment subject to operating leases | Post-production equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 5,787 | |
Net book value | 6,327 | 5,787 |
Property, plant and equipment subject to operating leases | Computer software | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 725 | |
Net book value | $ 740 | $ 725 |
Intangible assets (Details)
Intangible assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Impairment | $ (1,059) | $ 0 |
Intangible Assets | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 555,408 | 144,610 |
IED acquisition (note 5) | 422,012 | |
Amortization | (15,346) | (11,379) |
Impairment | (1,059) | |
Additions | 1,074 | 969 |
Foreign exchange differences | 6,920 | (804) |
Net book value | 546,997 | 555,408 |
Intangible Assets | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 599,615 | |
Net book value | 599,630 | 599,615 |
Intangible Assets | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | (40,488) | |
Net book value | (55,834) | (40,488) |
Intangible Assets | Foreign exchange differences | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | (3,719) | |
Net book value | 3,201 | (3,719) |
Broadcast licenses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 67,800 | 67,800 |
IED acquisition (note 5) | 0 | |
Amortization | 0 | 0 |
Impairment | 0 | |
Additions | 0 | 0 |
Foreign exchange differences | 0 | 0 |
Net book value | 67,800 | 67,800 |
Broadcast licenses | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 67,800 | |
Net book value | 67,800 | 67,800 |
Broadcast licenses | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 0 | |
Net book value | 0 | 0 |
Broadcast licenses | Foreign exchange differences | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 0 | |
Net book value | 0 | 0 |
Broadcaster relationships | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 531 | 1,262 |
IED acquisition (note 5) | 0 | |
Amortization | (299) | (732) |
Impairment | 0 | |
Additions | 0 | 0 |
Foreign exchange differences | 0 | 1 |
Net book value | 232 | 531 |
Broadcaster relationships | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 7,362 | |
Net book value | 7,362 | 7,362 |
Broadcaster relationships | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | (6,875) | |
Net book value | (7,174) | (6,875) |
Broadcaster relationships | Foreign exchange differences | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 44 | |
Net book value | 44 | 44 |
Customer relationships | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 18,680 | 21,653 |
IED acquisition (note 5) | 0 | |
Amortization | (2,792) | (2,747) |
Impairment | 0 | |
Additions | 0 | 0 |
Foreign exchange differences | 89 | (226) |
Net book value | 15,977 | 18,680 |
Customer relationships | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 27,920 | |
Net book value | 27,920 | 27,920 |
Customer relationships | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | (9,680) | |
Net book value | (12,472) | (9,680) |
Customer relationships | Foreign exchange differences | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 440 | |
Net book value | 529 | 440 |
Brands | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 444,581 | 24,853 |
IED acquisition (note 5) | 422,012 | |
Amortization | (8,899) | (3,177) |
Impairment | (1,059) | |
Additions | 0 | 969 |
Foreign exchange differences | 6,091 | (76) |
Net book value | 440,714 | 444,581 |
Indefinite life intangible assets | 350,419 | 345,319 |
Brands | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 458,260 | |
Net book value | 457,201 | 458,260 |
Brands | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | (13,918) | |
Net book value | (22,817) | (13,918) |
Brands | Foreign exchange differences | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 239 | |
Net book value | 6,330 | 239 |
Production and distribution rights | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 22,953 | 25,843 |
IED acquisition (note 5) | 0 | |
Amortization | (2,458) | (2,387) |
Impairment | 0 | |
Additions | 0 | 0 |
Foreign exchange differences | 674 | (503) |
Net book value | 21,169 | 22,953 |
Production and distribution rights | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 30,946 | |
Net book value | 30,946 | 30,946 |
Production and distribution rights | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | (3,551) | |
Net book value | (6,009) | (3,551) |
Production and distribution rights | Foreign exchange differences | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | (4,442) | |
Net book value | (3,768) | (4,442) |
Other | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 863 | 3,199 |
IED acquisition (note 5) | 0 | |
Amortization | (898) | (2,336) |
Impairment | 0 | |
Additions | 1,074 | 0 |
Foreign exchange differences | 66 | 0 |
Net book value | 1,105 | 863 |
Other | Cost | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 7,327 | |
Net book value | 8,401 | 7,327 |
Other | Accumulated amortization | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | (6,464) | |
Net book value | (7,362) | (6,464) |
Other | Foreign exchange differences | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening book value | 0 | |
Net book value | $ 66 | $ 0 |
Goodwill - Continuity of goodwi
Goodwill - Continuity of goodwill and narrative (Details) $ in Thousands | Jul. 23, 2018 | Jun. 30, 2018CAD ($)cash_generating_unit | Jun. 30, 2017CAD ($) |
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Number of cash generating units | cash_generating_unit | 4 | ||
Goodwill | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Opening net book value | $ 240,534 | $ 214,325 | |
Exchange differences | 809 | (304) | |
Ending net book value | 240,806 | 240,534 | |
IED | Goodwill | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Acquired on acquisition | (537) | 25,818 | |
Kiddyzuzaa | Goodwill | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Acquired on acquisition | $ 0 | $ 695 | |
Sony Music Entertainment Japan Inc. (SMEJ) | Major business combination | Peanuts Holdings LLC | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Percentage equity interests sold | 49.00% |
Goodwill - Value-In-Use assumpt
Goodwill - Value-In-Use assumptions (Details) | Jun. 30, 2018 |
Content Business | |
Disclosure of information for cash-generating units [line items] | |
Perpetual growth rate | 3.00% |
Pre-tax discount rate | 12.20% |
DHX Television | |
Disclosure of information for cash-generating units [line items] | |
Perpetual growth rate | 0.00% |
Pre-tax discount rate | 15.50% |
Bank indebtedness, interim pr74
Bank indebtedness, interim production financing, long-term debt and obligations under finance leases - Bank indebtedness, interim production financing, long-term debt and obligations under finance leases (Details) £ in Thousands, $ in Thousands | Jun. 30, 2018GBP (£) | Jun. 30, 2018CAD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017CAD ($) |
Disclosure of detailed information about borrowings [line items] | ||||
Current borrowings | $ 16,350,000 | $ 0 | ||
Borrowings | 866,603,000 | 1,084,559,000 | ||
Amount due within 12 months | (120,557,000) | (336,100,000) | ||
Amount due beyond 12 months | 746,046,000 | 748,459,000 | ||
Bank indebtedness | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | £ 1,200 | 9,000,000 | $ 4,000 | 0 |
Interim production financing | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 93,683,000 | 101,224,000 | ||
Long-term debt and obligations under finance leases | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 756,570,000 | 983,335,000 | ||
Amount due within 12 months | (10,524,000) | (234,876,000) | ||
Amount due beyond 12 months | $ 746,046,000 | $ 748,459,000 |
Bank indebtedness, interim pr75
Bank indebtedness, interim production financing, long-term debt and obligations under finance leases - Narrative (Details) $ / shares in Units, £ in Thousands | Jul. 23, 2018 | Oct. 01, 2017CAD ($)$ / shares | Jul. 11, 2017CAD ($) | Sep. 25, 2018USD ($) | Jun. 30, 2018CAD ($) | Jun. 30, 2017CAD ($) | Jun. 30, 2018GBP (£) | Jun. 30, 2018CAD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Current borrowings | $ 0 | $ 16,350,000 | ||||||||
Borrowings | 1,084,559,000 | $ 866,603,000 | ||||||||
Repayments of borrowings | $ 236,763,000 | 73,623,000 | ||||||||
Debt extinguishment cost | 0 | 6,990,000 | ||||||||
Credit derivative, fair value | $ 23,191,000 | |||||||||
Borrowings, early redemption penalty | $ 0 | 13,464,000 | ||||||||
Base Rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, adjustment to interest rate basis | 2.75% | 2.75% | 2.75% | |||||||
Revolving Credit Facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Line of credit maximum borrowing capacity | $ 39,504,000 | $ 30,000,000 | ||||||||
Borrowings | 0 | £ 1,200 | $ 9,000,000 | $ 4,000,000 | ||||||
Revolving Credit Facility | LIBOR | Bottom of range | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, adjustment to interest rate basis | 2.50% | 2.50% | 2.50% | |||||||
Revolving Credit Facility | LIBOR | Top of range | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, adjustment to interest rate basis | 3.75% | 3.75% | 3.75% | |||||||
Interim Production Financing | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings | $ 101,224,000 | $ 93,683,000 | ||||||||
Interim Production Financing | Floating interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, interest rate | 2.70% | 3.19% | 3.19% | 3.19% | 2.70% | |||||
Term Facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings | $ 747,021,000 | $ 490,050,000 | $ 495,000,000 | |||||||
Annual amortization payment percentage | 1.00% | 1.00% | 1.00% | |||||||
Term Facility | LIBOR | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, adjustment to interest rate basis | 3.75% | 3.75% | 3.75% | |||||||
Former Term Facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debt extinguishment cost | $ 1,471,000 | |||||||||
Senior Unsecured Convertible Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings | $ 193,474,000 | |||||||||
Notional amount | $ 140,000,000 | |||||||||
Debt instrument, convertible, conversion price (in CAD per share) | $ / shares | $ 8 | |||||||||
Subscription Receipts, Special Warrants and Senior Unsecured Convertible Debentures | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, interest rate | 5.875% | |||||||||
Senior Unsecured Notes | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings | 225,000,000 | $ 0 | ||||||||
Repayments of borrowings | $ 239,877,000 | |||||||||
Debt extinguishment cost | (5,519,000) | |||||||||
Borrowings, early redemption penalty | $ 13,464,000 | |||||||||
Senior Unsecured Notes | Fixed interest rate | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, interest rate | 5.875% | 5.875% | 5.875% | |||||||
First Lien Net Leverage Ratio, Greater than 3.50 | Term Facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Excess cash flow repayment percentage | 50.00% | 50.00% | 50.00% | |||||||
First Lien Net Leverage Ratio, Greater than 3.50 | Term Facility | Top of range | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
First lien net leverage ratio | 3.50 | 3.50 | 3.50 | |||||||
First Lien Net Leverage Ratio, Between 3.00 and 3.50 | Term Facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Excess cash flow repayment percentage | 25.00% | 25.00% | 25.00% | |||||||
First Lien Net Leverage Ratio, Between 3.00 and 3.50 | Term Facility | Bottom of range | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
First lien net leverage ratio | 3.50 | 3.50 | 3.50 | |||||||
First Lien Net Leverage Ratio, Between 3.00 and 3.50 | Term Facility | Top of range | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
First lien net leverage ratio | 3 | 3 | 3 | |||||||
Initial 12 month period | Senior Secured Credit Facilities | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debt instrument, covenant, maximum leverage ratio | 7.25 | 7.25 | 7.25 | |||||||
12 month period ending September 30, 2018 | Senior Secured Credit Facilities | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debt instrument, covenant, maximum leverage ratio | 6.75 | 6.75 | 6.75 | |||||||
12 month period ending September 30, 2019 | Senior Secured Credit Facilities | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debt instrument, covenant, maximum leverage ratio | 6.50 | 6.50 | 6.50 | |||||||
12 month period ending September 30, 2020 | Senior Secured Credit Facilities | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debt instrument, covenant, maximum leverage ratio | 5.75 | 5.75 | 5.75 | |||||||
12 month period ending September 30, 2021 | Senior Secured Credit Facilities | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debt instrument, covenant, maximum leverage ratio | 5.50 | 5.50 | 5.50 | |||||||
Peanuts | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Percentage of voting equity interests acquired | 80.00% | 80.00% | 80.00% | |||||||
Disposal of Major Subsidiary | Term Facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Repayments of borrowings | $ 161,328,000 | |||||||||
Sony Music Entertainment Japan Inc. (SMEJ) | Disposal of Major Subsidiary | Peanuts | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Percentage equity interests sold | 49.00% |
Bank indebtedness, interim pr76
Bank indebtedness, interim production financing, long-term debt and obligations under finance leases - Interim production financing (Details) - CAD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Net book value of production financing, licensing contracts receivable and film tax credits receivable | $ 115,639 | $ 131,186 |
Borrowings | 866,603 | 1,084,559 |
Interim production financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 93,683 | $ 101,224 |
Interim production financing | Prime Rate | Bottom of range | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, adjustment to interest rate basis | 0.50% | |
Interim production financing | Prime Rate | Top of range | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, adjustment to interest rate basis | 1.00% |
Bank indebtedness, interim pr77
Bank indebtedness, interim production financing, long-term debt and obligations under finance leases - Long-term debt and obligations under finance leases (Details) $ in Thousands | Jun. 30, 2018CAD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017CAD ($) | Jun. 30, 2017USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 866,603,000 | $ 1,084,559,000 | ||
Liabilities | 1,076,000,000 | 1,345,852,000 | ||
Less: Current portion | (120,557,000) | (336,100,000) | ||
Non-current portion of non-current borrowings | 746,046,000 | 748,459,000 | ||
Long-Term Debt and Obligations under Finance Leases | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 756,570,000 | 983,335,000 | ||
Less: Current portion | (10,524,000) | (234,876,000) | ||
Non-current portion of non-current borrowings | 746,046,000 | 748,459,000 | ||
Term Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, net | 623,066,000 | 616,339,000 | ||
Borrowings | 747,021,000 | $ 490,050 | $ 495,000 | |
Special Warrants | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, net | 0 | 133,751,000 | ||
Senior Unsecured Convertible Debentures | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, net | 124,747,000 | 0 | ||
Borrowings | 193,474,000 | |||
Senior Unsecured Notes | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 0 | 225,000,000 | ||
Finance Lease Liabilities | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 8,757,000 | 8,245,000 | ||
Finance Lease Liabilities | Bottom of range | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 4.00% | 4.00% | ||
Finance Lease Liabilities | Top of range | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 9.80% | 9.80% | ||
Unamortized issue costs | Term Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 22,232,000 | 26,107,000 | ||
Unamortized issue costs | Special Warrants | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 0 | 6,249,000 | ||
Unamortized issue costs | Senior Unsecured Convertible Debentures | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 5,588,000 | 0 | ||
Recurring fair value measurement | Embedded derivatives | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Liabilities | $ 0 |
Bank indebtedness, interim pr78
Bank indebtedness, interim production financing, long-term debt and obligations under finance leases - Principal repayments and undrawn borrowing facilities (Details) - CAD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 866,603 | $ 1,084,559 |
Year ending June 30, 2019 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 10,524 | |
2,020 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 8,611 | |
2,021 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 8,254 | |
2,022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 7,440 | |
2023 and beyond | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 759,225 |
Share capital and contributed79
Share capital and contributed surplus - Preferred variable voting shares and common shares narrative (Details) | Oct. 09, 2014class_of_sharevote | Jun. 30, 2018CAD ($)shares$ / shares | Jun. 30, 2017CAD ($)shares$ / shares | Jun. 30, 2016shares |
Disclosure of classes of share capital [line items] | ||||
Number of classes of shares | class_of_share | 3 | |||
Options exercised (in shares) | 60,000 | 60,000 | ||
Weighted average exercise price of share options exercised (in CAD per share) | $ | $ 1.81 | $ 1.73 | ||
Preference Variable Voting Shares | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares authorised (in shares) | 100,000,000 | |||
Par value per share (in CAD per share) | $ / shares | $ 0.00 | |||
Issued capital | Preference Variable Voting Shares | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding (in shares) | 100,000,000 | 100,000,000 | ||
Issued capital | Common shares | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding (in shares) | 134,293,890 | 134,061,548 | 133,774,729 | |
Shares issued pursuant to the ESPP (in shares) | 43,496 | 31,500 | ||
ESPP shares issued price per share (in CAD per share) | $ / shares | $ 4.58 | $ 6.51 | ||
Options exercised (in shares) | 60,000 | 60,000 | ||
Dividend reinvestment (in shares) | 108,180 | 195,319 | ||
Dividend reinvestment (in CAD per share) | $ / shares | $ 3.87 | $ 5.82 | ||
Issued capital | Common Voting Shares | ||||
Disclosure of classes of share capital [line items] | ||||
Stock conversion ratio if held for purposes other than broadcasting act | 1 | |||
Number of votes per share | vote | 1 | |||
Number of shares outstanding (in shares) | 99,510,508 | 103,821,287 | ||
Issued capital | Variable Voting Shares | ||||
Disclosure of classes of share capital [line items] | ||||
Stock conversion ratio if held for purpose of broadcasting act | 1 | |||
Number of votes per share if under threshold percentage | vote | 1 | |||
Threshold percentage of outstanding shares to dilute votes per share | 33.33% | |||
Number of shares outstanding (in shares) | 34,783,382 | 30,240,261 | ||
Issued capital | Non-Voting Shares | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding (in shares) | 0 | 0 |
Share capital and contributed80
Share capital and contributed surplus - Issued and outstanding (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of number of shares outstanding [abstract] | |||
Options exercised (in shares) | 60,000 | 60,000 | |
Beginning balance | $ 415,853 | $ 336,835 | |
Ending balance | 400,792 | 415,853 | |
Common shares | |||
Reconciliation of number of shares outstanding [abstract] | |||
Dividend reinvestment | $ 419 | $ 1,138 | |
Issued capital | Preference Variable Voting Shares | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 100,000,000 | 100,000,000 | |
Reconciliation of number of shares outstanding [abstract] | |||
Number of shares outstanding at beginning of period (in shares) | 100,000,000 | ||
Number of shares outstanding at end of period (in shares) | 100,000,000 | 100,000,000 | |
Beginning balance | $ 0 | ||
Ending balance | $ 0 | $ 0 | |
Issued capital | Common shares | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 134,061,548 | 133,774,729 | 123,982,312 |
Reconciliation of number of shares outstanding [abstract] | |||
Number of shares outstanding at beginning of period (in shares) | 134,061,548 | 133,774,729 | |
Dividend reinvestment (in shares) | 108,180 | 195,319 | |
Shares issued pursuant to the ESPP (in shares) | 43,496 | 31,500 | |
Options exercised (in shares) | 60,000 | 60,000 | |
Number of shares outstanding at end of period (in shares) | 134,293,890 | 134,061,548 | |
Beginning balance | $ 304,320 | $ 302,828 | |
Shares issued pursuant to the ESPP | 199 | 205 | |
Stock options exercised | 160 | 149 | |
Ending balance | $ 305,167 | $ 304,320 | |
Contributed surplus | |||
Disclosure of classes of share capital [line items] | |||
Number of shares issued | 9,158,190 | 7,137,125 | 6,353,750 |
Reconciliation of number of shares outstanding [abstract] | |||
Beginning balance | $ 26,310 | $ 20,488 | |
Ending balance | $ 29,060 | $ 26,310 | |
Performance Share Units (PSU) | |||
Reconciliation of number of shares outstanding [abstract] | |||
PSUs settled (in shares) | 20,666 | ||
Performance Share Units (PSU) | Common shares | |||
Reconciliation of number of shares outstanding [abstract] | |||
PSUs settled (in shares) | 20,666 | 0 | |
PSU's settled | $ 69 | $ 0 |
Share capital and contributed81
Share capital and contributed surplus - Stock options rollforward (Details) | Oct. 02, 2017CAD ($)shares | Jul. 11, 2017CAD ($)shares | Feb. 16, 2017CAD ($)shares | Oct. 03, 2016CAD ($)shares | Jun. 30, 2018CAD ($)shares | Jun. 30, 2018CAD ($)shares | Jun. 30, 2017CAD ($)shares |
Share Capital, Reserves And Other Equity Interest [Abstract] | |||||||
Outstanding at beginning of period (in shares) | shares | 8,819,525 | 7,137,125 | |||||
Granted (in shares) | shares | 300,000 | 1,620,000 | 400,000 | 1,342,400 | 1,742,400 | 1,920,000 | |
Forfeited (in shares) | shares | (2,431,050) | ||||||
Cancelled (in shares) | shares | (125,000) | ||||||
Exercised (in shares) | shares | (60,000) | (60,000) | |||||
Outstanding at end of period (in shares) | shares | 8,123,475 | 8,123,475 | 8,819,525 | ||||
Exercisable (in shares) | shares | 4,297,150 | 4,297,150 | |||||
Weighted average exercise price of stock option at beginning of period (in CAD per share) | $ | $ 6.93 | $ 6.93 | |||||
Weighted average exercise price of share options granted (in CAD per share) | $ | $ 5.47 | $ 5.73 | $ 6.08 | $ 7.02 | 5.69 | 6.79 | |
Weighted average exercise price of share options forfeited (in CAD per share) | $ | 7.85 | ||||||
Weighted average exercise price of share options cancelled (in CAD per share) | $ | 7.13 | ||||||
Weighted average exercise price of share options exercised (in CAD per share) | $ | 1.81 | 1.73 | |||||
Weighted average exercise price of stock option at end of period (in CAD per share) | $ | $ 6.41 | 6.41 | $ 6.93 | ||||
Weighted average exercise price of share options exercisable (in CAD per share) | $ | $ 6.12 | $ 6.12 |
Share capital and contributed82
Share capital and contributed surplus - Stock options narrative (Details) | Oct. 02, 2017CAD ($)shares | Jul. 11, 2017CAD ($)shares | Feb. 16, 2017CAD ($)shares | Oct. 03, 2016CAD ($)shares | Jun. 30, 2018shares | Jun. 30, 2018CAD ($)shares | Jun. 30, 2017CAD ($)shares |
Share Capital, Reserves And Other Equity Interest [Abstract] | |||||||
Percentage of total number of outstanding common shares authorized | 8.50% | 8.50% | 8.50% | ||||
Shares authorized (in shares) | 11,414,980 | 11,414,980 | 11,395,231 | ||||
Granted (in shares) | 300,000 | 1,620,000 | 400,000 | 1,342,400 | 1,742,400 | 1,920,000 | |
Weighted average exercise price of share options granted (in CAD per share) | $ | $ 5.47 | $ 5.73 | $ 6.08 | $ 7.02 | $ 5.69 | $ 6.79 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Award vesting period | 4 years | 4 years | 4 years | 4 years | |||
Options exercised (in shares) | 60,000 | 60,000 | |||||
Weighted average exercise price of share options exercised (in CAD per share) | $ | $ 1.81 | $ 1.73 |
Share capital and contributed83
Share capital and contributed surplus - Weighted average grant date value of stock options and assumptions (Details) | 12 Months Ended | |
Jun. 30, 2018CAD ($)year | Jun. 30, 2017CAD ($)year | |
Share Capital, Reserves And Other Equity Interest [Abstract] | ||
Weighted average fair value at measurement date, share options granted | $ | $ 1.67 | $ 2.01 |
Risk free interest rate, share options granted | 1.45% | 0.69% |
Expected option life, in years | year | 5 | 5 |
Expected volatility, share options granted | 36.00% | 37.00% |
Expected dividend as percentage, share options granted | 1.35% | 1.08% |
Share capital and contributed84
Share capital and contributed surplus - Information related to stock option (Details) | Jun. 30, 2018CAD ($)sharesyear | Jun. 30, 2017CAD ($)shares | Jun. 30, 2016CAD ($)shares |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding (in shares) | shares | 8,123,475 | 8,819,525 | 7,137,125 |
Weighted average remaining contractual life (in years) | year | 3.19 | ||
Weighted average exercise price (in CAD per share) | $ 6.41 | $ 6.93 | $ 6.93 |
Number of share options exercisable (in shares) | shares | 4,297,150 | ||
Weighted average exercise price of share options exercisable (in CAD per share) | $ 6.12 | ||
$1.50 - $3.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding (in shares) | shares | 655,625 | ||
Weighted average remaining contractual life (in years) | year | 0.03 | ||
Weighted average exercise price (in CAD per share) | $ 2.03 | ||
Number of share options exercisable (in shares) | shares | 655,625 | ||
Weighted average exercise price of share options exercisable (in CAD per share) | $ 2.03 | ||
$3.50 - $5.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding (in shares) | shares | 1,170,000 | ||
Weighted average remaining contractual life (in years) | year | 1.90 | ||
Weighted average exercise price (in CAD per share) | $ 4.43 | ||
Number of share options exercisable (in shares) | shares | 870,000 | ||
Weighted average exercise price of share options exercisable (in CAD per share) | $ 4.07 | ||
$5.50 - $7.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding (in shares) | shares | 4,027,100 | ||
Weighted average remaining contractual life (in years) | year | 4.35 | ||
Weighted average exercise price (in CAD per share) | $ 6.57 | ||
Number of share options exercisable (in shares) | shares | 1,324,900 | ||
Weighted average exercise price of share options exercisable (in CAD per share) | $ 7 | ||
$7.50 - $9.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding (in shares) | shares | 2,270,750 | ||
Weighted average remaining contractual life (in years) | year | 2.71 | ||
Weighted average exercise price (in CAD per share) | $ 8.40 | ||
Number of share options exercisable (in shares) | shares | 1,446,625 | ||
Weighted average exercise price of share options exercisable (in CAD per share) | $ 8.40 | ||
Bottom of range | $1.50 - $3.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in CAD per share) | 1.50 | ||
Bottom of range | $3.50 - $5.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in CAD per share) | 3.50 | ||
Bottom of range | $5.50 - $7.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in CAD per share) | 5.50 | ||
Bottom of range | $7.50 - $9.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in CAD per share) | 7.50 | ||
Top of range | $1.50 - $3.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in CAD per share) | 3.49 | ||
Top of range | $3.50 - $5.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in CAD per share) | 5.49 | ||
Top of range | $5.50 - $7.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in CAD per share) | 7.49 | ||
Top of range | $7.50 - $9.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in CAD per share) | $ 9.49 |
Share capital and contributed85
Share capital and contributed surplus - Share capital and contributed surplus narrative (Details) $ in Thousands | Oct. 02, 2017 | Jul. 11, 2017 | Feb. 16, 2017 | Oct. 03, 2016 | Jun. 30, 2018CAD ($)shares | Jun. 30, 2017CAD ($)sharesaward |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Compensation expense | $ | $ 2,950 | $ 5,867 | ||||
Award vesting period | 4 years | 4 years | 4 years | 4 years | ||
PSUs outstanding (in shares) | 338,665 | 0 | ||||
Stock Options | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Compensation expense | $ | $ 2,159 | $ 4,972 | ||||
Performance Share Units (PSU) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Compensation expense | $ | $ 791 | $ 895 | ||||
Number of awards | award | 2 | |||||
Award vesting period | 3 years | |||||
PSUs granted (in shares) | 207,270 | 338,665 | ||||
PSUs settled (in shares) | 20,666 | |||||
PSUs forfeited (in shares) | 87,076 | |||||
PSUs cancelled (in shares) | 23,653 |
Government financing and assi86
Government financing and assistance (Details) - CAD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Adjustments for decrease (increase) in inventories | $ 4,471,000 | $ (57,235,000) |
Income from government grants | 63,464,000 | 39,919,000 |
Government customers | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Adjustments for decrease (increase) in inventories | 0 | 2,125,000 |
Canadian Media Fund | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Adjustments for decrease (increase) in inventories | 1,667,000 | 3,737,000 |
Government customers, production activities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Adjustments for decrease (increase) in inventories | $ 15,618,000 | $ 25,547,000 |
Customer Concentration Risk | Government customers | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Concentration risk, percentage | 36.00% | 41.00% |
Income taxes - Components of de
Income taxes - Components of deferred tax liability (Details) - CAD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | $ (17,679) | $ (14,559) |
Broadcast licenses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | (17,967) | (17,967) |
Tangible benefit obligation | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | 2,171 | 2,352 |
Leasehold inducement | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | 0 | 123 |
Foreign tax credits | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | 2,324 | 85 |
Participation payables and finance lease obligations and other liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | 0 | 64 |
Property and equipment | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | 697 | (1,724) |
Share issuance costs and deferred financing fees | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | (1,603) | (1,051) |
Investment in film and television programs and acquired and library content | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | (27,568) | (7,782) |
Intangible assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | (9,633) | (6,278) |
Non-capital losses and other | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | $ 33,900 | $ 17,619 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Of Income Taxes [Line Items] | ||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | $ 72,648 | $ 60,510 |
Applicable tax rate | 31.00% | 31.00% |
Tax effect from change in tax rate | $ 2,120 | $ 0 |
Foreign Tax Authority | ||
Disclosure Of Income Taxes [Line Items] | ||
Applicable tax rate | 27.50% | |
Tax effect from change in tax rate | $ 2,120 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of income taxes (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes [Abstract] | ||
Applicable tax rate | 31.00% | 31.00% |
Income tax expense (recovery) based on combined federal and provincial tax rates of 31% (June 30, 2017 - 31%) | $ (1,664) | $ (113) |
Share-based compensation | 915 | 1,792 |
Non-taxable portion of capital gain | (1,024) | 0 |
Tax rate differential | 3,675 | (1,252) |
Non-controlling interest | (2,223) | 0 |
Non-deductible acquisition costs | 0 | 1,244 |
Tax rate change on opening balance | 2,120 | 0 |
Other | (308) | 200 |
Provision for (recovery of) income taxes | $ 1,491 | $ 1,871 |
Finance income and finance ex90
Finance income and finance expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Interest income | $ 1,147 | $ 556 |
Gain on movement in fair value of the embedded derivatives on Senior Unsecured Convertible Debentures and Senior Unsecured Notes | 11,251 | 1,968 |
Finance income | 12,398 | 2,524 |
Accretion on tangible benefit obligation | 539 | 651 |
Early redemption penalties | 0 | 13,464 |
Debt extinguishment cost | 0 | 6,990 |
Amortization of premium | 0 | 118 |
Net foreign exchange loss | 7,700 | 3,226 |
Finance expense | 58,956 | 42,978 |
Interest expense on bank indebtedness | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense on borrowings | 788 | 348 |
Interest on long-term debt, obligations under finance leases and other | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense on borrowings | 48,343 | 18,181 |
Accretion on Senior Unsecured Convertible Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense on borrowings | $ 1,586 | $ 0 |
Expenses by nature and employ91
Expenses by nature and employee benefit expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Investment in film and television programs | ||
Direct production and new media costs | $ 192,143 | $ 96,249 |
Expense of film and television programs | 33,554 | 24,348 |
Expense of film and broadcast rights for broadcasting | 18,546 | 22,515 |
Write-down of investment in film and television programs and acquired and library content and impairment of intangible assets (notes 7,8,10) | 10,968 | 1,540 |
Development, integration and other | 10,554 | 3,435 |
Impairment of intangible assets | 1,059 | 0 |
Office and administrative | 21,704 | 20,395 |
Acquisition costs | 0 | 9,695 |
Finance expense, net | 46,558 | 40,454 |
Investor relations and marketing | 3,322 | 2,902 |
Professional and regulatory | 7,804 | 5,363 |
Amortization of property and equipment and intangible assets | 24,174 | 17,565 |
Expenses by nature, excluding benefit expense | 386,302 | 255,002 |
The following sets out the components of employee benefits expense: | ||
Salaries and employee benefits | 50,421 | 39,606 |
Share-based compensation | 2,950 | 5,867 |
Employee benefits expense | 53,371 | 45,473 |
Expenses | 439,673 | 300,475 |
Acquired and library content | ||
Investment in film and television programs | ||
Amortization of acquired and library content | $ 15,916 | $ 10,541 |
Financial instruments - Narrati
Financial instruments - Narrative (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018CAD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017CAD ($) | Jun. 30, 2017USD ($) | |
Credit risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Maximum exposure to credit risk | $ 228,542 | $ 465,277 | ||
Allowance account for credit losses of financial assets, percent | 6.00% | 6.00% | ||
Liquidity risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Maximum exposure to credit risk | $ 46,550 | $ 62,143 | ||
Currency risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Sensitivity analysis for types of market risk, reasonably possible change in risk variable, percent | 1.00% | |||
Sensitivity analysis for types of market risk, reasonably possible change in risk variable, impact to net income (loss) | $ 8,000 | |||
Risk exposure associated with instruments sharing characteristic | $ 2,231 | $ 7,756 | ||
Floating interest rate | Interest rate risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Sensitivity analysis for types of market risk, reasonably possible change in risk variable, percent | 1.00% | |||
Bottom of range | Interest rate risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Sensitivity analysis for types of market risk, reasonably possible change in risk variable, impact to net income (loss) | $ 6,000 | |||
Top of range | Interest rate risk | ||||
Disclosure of credit risk exposure [line items] | ||||
Sensitivity analysis for types of market risk, reasonably possible change in risk variable, impact to net income (loss) | $ 7,000 |
Financial instruments - Contrac
Financial instruments - Contractual maturity analysis for financial liabilities (Details) $ in Thousands, $ in Thousands | Jun. 30, 2018CAD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017CAD ($) | Jun. 30, 2017USD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Bank indebtedness | $ 16,350 | $ 0 | ||
Accounts payable and accrued liabilities | 130,545 | 178,365 | ||
Interim production financing | 93,683 | |||
Other liabilities | 8,150 | |||
Borrowings | 866,603 | $ 1,084,559 | ||
Finance lease obligations | 9,435 | |||
Financial liabilities | 1,198,658 | |||
Less than 1 year | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Bank indebtedness | 16,350 | |||
Accounts payable and accrued liabilities | 130,545 | |||
Interim production financing | 93,683 | |||
Other liabilities | 0 | |||
Borrowings | 10,524 | |||
Finance lease obligations | 4,364 | |||
Financial liabilities | 277,364 | |||
1 to 3 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Bank indebtedness | 0 | |||
Accounts payable and accrued liabilities | 0 | |||
Interim production financing | 0 | |||
Other liabilities | 8,150 | |||
Finance lease obligations | 4,132 | |||
Financial liabilities | 76,588 | |||
4 to 5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Bank indebtedness | 0 | |||
Accounts payable and accrued liabilities | 0 | |||
Interim production financing | 0 | |||
Other liabilities | 0 | |||
Finance lease obligations | 939 | |||
Financial liabilities | 64,662 | |||
After 5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Bank indebtedness | 0 | |||
Accounts payable and accrued liabilities | 0 | |||
Interim production financing | 0 | |||
Other liabilities | 0 | |||
Borrowings | 759,225 | |||
Finance lease obligations | 0 | |||
Financial liabilities | 780,044 | |||
Senior Unsecured Convertible Debentures | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Borrowings | 193,474 | |||
Senior Unsecured Convertible Debentures | Less than 1 year | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Borrowings | 8,225 | |||
Senior Unsecured Convertible Debentures | 1 to 3 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Borrowings | 16,450 | |||
Senior Unsecured Convertible Debentures | 4 to 5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Borrowings | 16,450 | |||
Senior Unsecured Convertible Debentures | After 5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Borrowings | 152,349 | |||
Term Facility | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Borrowings | 747,021 | $ 490,050 | $ 495,000 | |
Term Facility | Less than 1 year | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Borrowings | 24,197 | |||
Term Facility | 1 to 3 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Borrowings | 47,856 | |||
Term Facility | 4 to 5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Borrowings | 47,273 | |||
Term Facility | After 5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Borrowings | $ 627,695 |
Financial instruments - Fair va
Financial instruments - Fair values (Details) - CAD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | $ 1,076,000 | $ 1,345,852 |
Embedded derivatives | Recurring fair value measurement | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 0 | |
Embedded derivatives | Level 2 | Recurring fair value measurement | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 11,940 | 0 |
Foreign currency forwards | Level 2 | Recurring fair value measurement | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 61 | 174 |
Term Facility | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 645,298 | 642,363 |
Term Facility | Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 645,298 | 642,363 |
Senior Unsecured Notes | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 0 | 225,000 |
Senior Unsecured Notes | Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 0 | 225,000 |
Obligations under finance leases | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 8,757 | 8,245 |
Obligations under finance leases | Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 8,757 | 8,245 |
Special Warrants | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 0 | 140,000 |
Special Warrants | Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 0 | 140,000 |
Senior Unsecured Convertible Debentures | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 130,355 | 0 |
Senior Unsecured Convertible Debentures | Level 1 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 123,200 | 0 |
Interim production financing | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 93,683 | 101,224 |
Interim production financing | Level 2 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 93,683 | 101,224 |
Other liabilities | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 8,150 | 11,422 |
Other liabilities | Level 3 | Not measured at fair value in statement of financial position but for which fair value is disclosed | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | $ 8,150 | $ 11,422 |
Commitments and contingencies -
Commitments and contingencies - Future aggregate minimum payments (Details) $ in Thousands | Jun. 30, 2018CAD ($) |
Year ending June 30, 2019 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future aggregate minimum payments | $ 9,884 |
2,020 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future aggregate minimum payments | 8,933 |
2,021 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future aggregate minimum payments | 7,563 |
2,022 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future aggregate minimum payments | 6,925 |
Beyond 2,022 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future aggregate minimum payments | $ 26,762 |
Commitments and contingencies96
Commitments and contingencies - Narrative (Details) $ in Thousands | Jun. 30, 2018CAD ($) |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Future purchase commitments | $ 22,321 |
Capital disclosures - Narrative
Capital disclosures - Narrative (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | ||
Dividends declared | $ 10,734 | $ 9,908 |
Capital disclosures - Company's
Capital disclosures - Company's capital (Details) - CAD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 866,603 | $ 1,084,559 | |
Less: Cash and cash held in trust | (46,550) | (302,020) | |
Net debt | 726,370 | 681,315 | |
Total Shareholders’ Equity | 400,792 | 415,853 | $ 336,835 |
Total company's capital | 1,127,162 | 1,097,168 | |
Total bank indebtedness, long-term debt and obligations under capital leases, excluding interim production financing | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 772,920 | $ 983,335 |
Earnings per common share (Deta
Earnings per common share (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings per share [abstract] | ||
Net loss attributable to shareholders of the Company | $ (14,060) | $ (3,634) |
Weighted average number of common shares (in shares) | 134,505,625 | 134,059,478 |
Basic loss per share (in CAD per share) | $ (0.10) | $ (0.03) |
Weighted average number of common shares (diluted) (in shares) | 134,505,625 | 134,059,478 |
Diluted loss per share (in CAD per share) | $ (0.10) | $ (0.03) |
Statement of cash flows - su100
Statement of cash flows - supplementary information - Net change in non-cash balances related to operations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flow Statement [Abstract] | ||
Decrease (increase) in amounts receivable | $ 7,345 | $ (44,457) |
Decrease (increase) in prepaid expenses and deposits and other | 1,512 | (526) |
Decrease (increase) in long-term amounts receivable | 7,713 | 2,912 |
Increase (decrease) in accounts payable and accrued liabilities | (41,475) | 47,601 |
Increase (decrease) in deferred revenue | (5,558) | 10,899 |
Tangible benefit obligation payments | (859) | (3,599) |
Increase (decrease) in working capital | (31,322) | 12,830 |
Interest paid | 45,156 | 19,250 |
Interest received | 342 | 556 |
Taxes paid | $ 3,694 | $ 15,996 |
Statement of cash flows - su101
Statement of cash flows - supplementary information - Net change in film and television programs (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flow Statement [Abstract] | ||
Decrease (increase) in development | $ (434) | $ (238) |
Decrease (increase) in productions in progress | 19,769 | (12,285) |
Decrease (increase) in productions completed and released | (52,854) | (75,736) |
Expense of film and television programs | 33,554 | 24,348 |
Decrease (increase) in program and film rights - broadcasting | (14,110) | (15,839) |
Expense of film and broadcast rights for broadcasting | 18,546 | 22,515 |
Net change in film and television programs | $ 4,471 | $ (57,235) |
Statement of cash flows - su102
Statement of cash flows - supplementary information - Reconciliation between the opening and closing balances in the consolidated balance sheet arising from financing activities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | $ 983,335 | $ 292,073 |
New debt | 0 | 782,362 |
Debt extinguishment cost | 0 | 6,990 |
Realized foreign exchange | 372 | |
Repayments | (236,763) | (73,623) |
Issue costs | (539) | (32,695) |
Total financing cash flow activities | (237,302) | 683,406 |
Conversion to Senior Unsecured Convertible Debentures | 0 | |
Amortization of deferred financing costs | 4,992 | 1,511 |
Amortization of premium | 0 | 118 |
New finance leases | 5,850 | 8,195 |
Movement in fair value of embedded derivatives | (11,251) | (1,968) |
Accretion on Senior Unsecured Convertible Debentures | 1,586 | 0 |
Unrealized foreign exchange loss | 9,360 | |
Total financing non-cash activities | 10,537 | 7,856 |
Liabilities from financing activities, ending balance | 756,570 | 983,335 |
Term Facility | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 616,339 | 0 |
New debt | 642,362 | |
Debt extinguishment cost | 0 | |
Realized foreign exchange | 0 | |
Repayments | (6,425) | 0 |
Issue costs | (226) | (26,023) |
Total financing cash flow activities | (6,651) | 616,339 |
Conversion to Senior Unsecured Convertible Debentures | 0 | |
Amortization of deferred financing costs | 4,018 | 0 |
Amortization of premium | 0 | |
New finance leases | 0 | 0 |
Movement in fair value of embedded derivatives | 0 | 0 |
Accretion on Senior Unsecured Convertible Debentures | 0 | |
Unrealized foreign exchange loss | 9,360 | |
Total financing non-cash activities | 13,378 | 0 |
Liabilities from financing activities, ending balance | 623,066 | 616,339 |
Special Warrants | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 133,751 | 0 |
New debt | 140,000 | |
Debt extinguishment cost | 0 | |
Realized foreign exchange | 0 | |
Repayments | 0 | 0 |
Issue costs | 0 | (6,322) |
Total financing cash flow activities | 0 | 133,678 |
Conversion to Senior Unsecured Convertible Debentures | (133,751) | |
Amortization of deferred financing costs | 0 | 73 |
Amortization of premium | 0 | |
New finance leases | 0 | 0 |
Movement in fair value of embedded derivatives | 0 | 0 |
Accretion on Senior Unsecured Convertible Debentures | 0 | |
Unrealized foreign exchange loss | 0 | |
Total financing non-cash activities | (133,751) | 73 |
Liabilities from financing activities, ending balance | 0 | 133,751 |
Senior Unsecured Convertible Debentures | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 0 | |
Repayments | 0 | |
Issue costs | (313) | |
Total financing cash flow activities | (313) | |
Conversion to Senior Unsecured Convertible Debentures | 133,751 | |
Amortization of deferred financing costs | 974 | |
New finance leases | 0 | |
Movement in fair value of embedded derivatives | (11,251) | |
Accretion on Senior Unsecured Convertible Debentures | 1,586 | |
Unrealized foreign exchange loss | 0 | |
Total financing non-cash activities | 125,060 | |
Liabilities from financing activities, ending balance | 124,747 | 0 |
Former Term Facility | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 0 | 67,578 |
New debt | 0 | |
Debt extinguishment cost | 1,116 | |
Realized foreign exchange | 0 | |
Repayments | (69,106) | |
Issue costs | (18) | |
Total financing cash flow activities | (68,008) | |
Amortization of deferred financing costs | 430 | |
Amortization of premium | 0 | |
New finance leases | 0 | |
Movement in fair value of embedded derivatives | 0 | |
Total financing non-cash activities | 430 | |
Liabilities from financing activities, ending balance | 0 | |
Senior Unsecured Notes | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 225,000 | 219,928 |
New debt | 0 | |
Debt extinguishment cost | 5,874 | |
Realized foreign exchange | 372 | |
Repayments | (225,000) | 0 |
Issue costs | 0 | (332) |
Total financing cash flow activities | (225,000) | 5,914 |
Conversion to Senior Unsecured Convertible Debentures | 0 | |
Amortization of deferred financing costs | 0 | 1,008 |
Amortization of premium | 118 | |
New finance leases | 0 | 0 |
Movement in fair value of embedded derivatives | 0 | (1,968) |
Accretion on Senior Unsecured Convertible Debentures | 0 | |
Unrealized foreign exchange loss | 0 | |
Total financing non-cash activities | 0 | (842) |
Liabilities from financing activities, ending balance | 0 | 225,000 |
Finance leases | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 8,245 | 4,567 |
New debt | 0 | |
Debt extinguishment cost | 0 | |
Realized foreign exchange | 0 | |
Repayments | (5,338) | (4,517) |
Issue costs | 0 | 0 |
Total financing cash flow activities | (5,338) | (4,517) |
Conversion to Senior Unsecured Convertible Debentures | 0 | |
Amortization of deferred financing costs | 0 | 0 |
Amortization of premium | 0 | |
New finance leases | 5,850 | 8,195 |
Movement in fair value of embedded derivatives | 0 | 0 |
Accretion on Senior Unsecured Convertible Debentures | 0 | |
Unrealized foreign exchange loss | 0 | |
Total financing non-cash activities | 5,850 | 8,195 |
Liabilities from financing activities, ending balance | $ 8,757 | $ 8,245 |
Revenues and segmented infor103
Revenues and segmented information - Narrative (Details) | 12 Months Ended | ||
Jun. 30, 2018CAD ($)segment | Jun. 30, 2017CAD ($) | Jun. 30, 2016CAD ($) | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of reportable segments | segment | 3 | ||
Write-down of investment in film and television programs and acquired and library content, and impairment intangible assets | $ 10,968,000 | $ 1,540,000 | |
Goodwill | 240,806,000 | 240,534,000 | |
Revenues | 434,416,000 | 298,712,000 | |
Property and equipment | 30,436,000 | 30,996,000 | $ 17,683,000 |
Canada | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 168,038,000 | 173,427,000 | |
USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Goodwill | 26,399,000 | 26,742,000 | |
Revenues | 144,940,000 | 1,089,000 | |
Property and equipment | 67,000 | 125,000 | |
UNITED KINGDOM | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 109,024,000 | 108,849,000 | |
Countries outside of Canada and the USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Goodwill | 5,334,000 | 3,771,000 | |
Revenues | 12,414,000 | 15,347,000 | |
Property and equipment | 1,872,000 | 2,091,000 | |
Intangible Assets | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Intangible assets | 546,997,000 | 555,408,000 | $ 144,610,000 |
Intangible Assets | USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Intangible assets | 423,485,000 | 422,170,000 | |
Intangible Assets | Countries outside of Canada and the USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Intangible assets | 30,332,000 | 55,956,000 | |
DHX Television | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Write-down of investment in film and television programs and acquired and library content, and impairment intangible assets | 2,787,000 | 0 | |
Goodwill | 33,224,000 | 33,224,000 | |
Revenues | 55,014,000 | 57,384,000 | |
Content Business | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Write-down of investment in film and television programs and acquired and library content, and impairment intangible assets | 9,240,000 | 1,540,000 | |
Goodwill | 207,582,000 | 207,310,000 | |
Revenues | 366,368,000 | 222,514,000 | |
CPLG | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Goodwill | $ 0 | $ 0 |
Revenues and segmented infor104
Revenues and segmented information - Income statement information (Details) - CAD ($) | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of operating segments [line items] | ||
Revenues | $ 434,416,000 | $ 298,712,000 |
Direct production costs and expense of film and television produced, and selling, general and administrative | 306,635,000 | 191,997,000 |
Segment profit | 127,781,000 | 106,715,000 |
Corporate selling, general and administrative | 86,200,000 | 74,133,000 |
Amortization of property and equipment and intangible assets | 24,174,000 | 17,565,000 |
Finance expense, net | 46,558,000 | 40,454,000 |
Write-down of investment in film and television programs and acquired and library content, and impairment intangible assets | 10,968,000 | 1,540,000 |
Development, integration and other | 10,554,000 | 3,435,000 |
Loss before income taxes | (5,257,000) | (1,763,000) |
Acquisition costs | 0 | 9,695,000 |
Acquired and library content | ||
Disclosure of operating segments [line items] | ||
Amortization of acquired and library content | 15,916,000 | 10,541,000 |
DHX Television | ||
Disclosure of operating segments [line items] | ||
Revenues | 55,014,000 | 57,384,000 |
Write-down of investment in film and television programs and acquired and library content, and impairment intangible assets | 2,787,000 | 0 |
Content | ||
Disclosure of operating segments [line items] | ||
Revenues | 366,368,000 | 222,514,000 |
Write-down of investment in film and television programs and acquired and library content, and impairment intangible assets | 9,240,000 | 1,540,000 |
Operating segments | CPLG | ||
Disclosure of operating segments [line items] | ||
Revenues | 13,034,000 | 18,814,000 |
Direct production costs and expense of film and television produced, and selling, general and administrative | 15,285,000 | 16,589,000 |
Segment profit | (2,251,000) | 2,225,000 |
Operating segments | DHX Television | ||
Disclosure of operating segments [line items] | ||
Revenues | 55,014,000 | 57,384,000 |
Direct production costs and expense of film and television produced, and selling, general and administrative | 33,459,000 | 35,276,000 |
Segment profit | 21,555,000 | 22,108,000 |
Operating segments | Content | ||
Disclosure of operating segments [line items] | ||
Revenues | 366,368,000 | 222,514,000 |
Direct production costs and expense of film and television produced, and selling, general and administrative | 257,891,000 | 140,132,000 |
Segment profit | 108,477,000 | 82,382,000 |
Unallocated amounts | ||
Disclosure of operating segments [line items] | ||
Corporate selling, general and administrative | 23,809,000 | 25,248,000 |
Amortization of property and equipment and intangible assets | 24,174,000 | 17,565,000 |
Finance expense, net | 46,558,000 | 40,454,000 |
Write-down of investment in film and television programs and acquired and library content, and impairment intangible assets | 12,027,000 | 1,540,000 |
Development, integration and other | 10,554,000 | 3,435,000 |
Acquisition costs | 9,695,000 | |
Unallocated amounts | Acquired and library content | ||
Disclosure of operating segments [line items] | ||
Amortization of acquired and library content | $ 15,916,000 | $ 10,541,000 |
Revenues and segmented infor105
Revenues and segmented information - Disaggregation of revenue (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of operating segments [line items] | ||
Revenues | $ 434,416 | $ 298,712 |
Content | ||
Disclosure of operating segments [line items] | ||
Revenues | 366,368 | 222,514 |
Content | Production revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 19,793 | 36,877 |
Content | Distribution revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 124,094 | 100,408 |
Content | Merchandising and licensing and other revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 144,712 | 26,253 |
Content | Producer and service fee revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 77,769 | 58,976 |
DHX Television | ||
Disclosure of operating segments [line items] | ||
Revenues | 55,014 | 57,384 |
DHX Television | Subscriber revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 51,102 | 53,240 |
DHX Television | Promotion and advertising revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 3,912 | 4,144 |
CPLG | Third party brand representation revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 13,034 | 18,814 |
Countries outside of Canada and the USA | ||
Disclosure of operating segments [line items] | ||
Revenues | $ 12,414 | $ 15,347 |
Subsequent events (Details)
Subsequent events (Details) - Peanuts Holdings LLC - CAD ($) $ in Millions | Jul. 23, 2018 | Jun. 30, 2018 |
Disclosure of non-adjusting events after reporting period [line items] | ||
Percentage of voting equity interests acquired | 80.00% | |
Major business combination | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Consideration paid | $ 235.6 | |
Proportion of ownership interest in subsidiary | 41.00% | |
Proportion of voting rights held by non-controlling interests | 20.00% | |
Major business combination | Sony Music Entertainment Japan Inc. (SMEJ) | ||
Disclosure of non-adjusting events after reporting period [line items] | ||
Percentage equity interests sold | 49.00% | |
Proportion of ownership interest in subsidiary | 39.00% |