Document and Entity Information
Document and Entity Information | 12 Months Ended |
Jun. 30, 2019shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | DHX Media Ltd. |
Entity Central Index Key | 0001490186 |
Current Fiscal Year End Date | --06-30 |
Entity Current Reporting Status | Yes |
Document Type | 40-F |
Document Period End Date | Jun. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 134,938,365 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Consolidated Balance Sheet
Consolidated Balance Sheet - CAD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets | ||
Cash | $ 39,999 | $ 46,550 |
Amounts receivable (note 6) | 265,710 | 251,538 |
Prepaid expenses and other | 7,182 | 8,580 |
Investment in film and television programs (note 7) | 148,561 | 186,008 |
Current assets | 461,452 | 492,676 |
Long-term amounts receivable (note 6) | 14,318 | 18,789 |
Property and equipment (note 9) | 19,352 | 30,436 |
Goodwill (note 11) | 239,754 | 240,806 |
Assets | 1,318,955 | 1,476,792 |
Current liabilities | ||
Bank indebtedness (note 12) | 0 | 16,350 |
Accounts payable and accrued liabilities | 103,487 | 130,545 |
Deferred revenue | 64,299 | 47,552 |
Interim production financing (note 12) | 92,448 | 93,683 |
Current portion of long-term debt and obligations under finance leases (note 12) | 11,007 | 10,524 |
Current liabilities | 271,241 | 298,654 |
Long-term debt and obligations under finance leases (note 12) | 523,061 | 746,046 |
Other long-term liabilities | 8,269 | 13,621 |
Deferred income taxes (note 15) | 16,406 | 17,679 |
Liabilities | 818,977 | 1,076,000 |
Equity attributable to shareholders of the Company | 243,033 | 315,078 |
Non-controlling interest (note 16) | 85,714 | |
Total Shareholders’ Equity | 499,978 | 400,792 |
Equity and liabilities | 1,318,955 | 1,476,792 |
Acquired and library content (note 8) | ||
Current assets | ||
Acquired and library content and Intangible assets | 118,247 | 147,088 |
Intangible assets (note 10) | ||
Current assets | ||
Acquired and library content and Intangible assets | $ 465,832 | $ 546,997 |
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 shares | Common sharesCommon Shares |
Beginning balance at Jun. 30, 2017 | $ 415,853 | $ 26,310 | $ (21,596) | $ 20,263 | $ 86,556 | $ 304,320 | $ 304,320 |
Net (loss) income | (6,748) | (14,060) | 7,312 | ||||
Other comprehensive income (loss) for the year | 6,978 | 6,978 | |||||
Comprehensive income (loss) | 230 | 6,978 | (14,060) | 7,312 | |||
Common shares issued | 228 | (200) | 428 | ||||
Dividends | (10,315) | (10,734) | 419 | ||||
Share-based compensation (note 13) | 2,950 | 2,950 | |||||
Disposal of interest in subsidiary, net of transaction costs and taxes (note 16) | 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 | 305,167 |
Net (loss) income | (78,202) | (101,494) | 23,292 | ||||
Other comprehensive income (loss) for the year | (5,845) | (5,845) | |||||
Comprehensive income (loss) | (84,047) | (5,845) | (101,494) | 23,292 | |||
Common shares issued | 815 | (1,176) | 1,991 | ||||
Share-based compensation (note 13) | 1,354 | 1,354 | |||||
Disposal of interest in subsidiary, net of transaction costs and taxes (note 16) | 214,112 | 39,516 | 174,596 | ||||
Distributions to non-controlling interests | (26,657) | (26,657) | |||||
Ending balance at Jun. 30, 2019 | $ 499,978 | $ 29,238 | $ (19,982) | $ (73,381) | $ 256,945 | $ 307,158 | $ 307,158 |
Consolidated Statement of Incom
Consolidated Statement of Income (Loss) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statements Of Income [Line Items] | ||
Revenues (note 24) | $ 439,800 | $ 434,416 |
Expenses (note 18) | ||
Direct production costs and expense of film and television produced | 253,003 | 244,244 |
Amortization of property and equipment and intangible assets | 22,651 | 24,174 |
Development, integration and other | 1,661 | 10,554 |
Write-down of investment in film and television programs and acquired and library content and impairment of intangible assets (note 7, 8, 10) | 104,871 | 12,027 |
Selling, general and administrative | 81,121 | 86,200 |
Finance costs (note 17) | 52,236 | 50,109 |
Change in fair value of embedded derivative | (7,185) | (11,251) |
Foreign exchange (gain) loss | (1,081) | 7,700 |
Expenses | 521,708 | 439,673 |
Loss before income taxes | (81,908) | (5,257) |
Current income taxes (note 15) | (1,770) | 2,166 |
Deferred income taxes (note 15) | (1,936) | (675) |
(Recovery of) provision for income taxes | (3,706) | 1,491 |
Net loss | (78,202) | (6,748) |
Net income attributable to non-controlling interests (note 16) | 23,292 | 7,312 |
Net loss attributable to shareholders of the Company | $ (101,494) | $ (14,060) |
Basic loss per common share (note 21) (in CAD per share) | $ (0.75) | $ (0.10) |
Diluted loss per common share (note 21) (in CAD per share) | $ (0.75) | $ (0.10) |
Acquired and library content | ||
Expenses (note 18) | ||
Amortization of acquired and library content (note 8) | $ 14,431 | $ 15,916 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of comprehensive income [abstract] | ||
Net loss for the year | $ (78,202) | $ (6,748) |
Items that may be subsequently reclassified to the statement of (loss) income | ||
Foreign currency translation adjustment | (5,845) | 6,978 |
Comprehensive income (loss) | $ (84,047) | $ 230 |
Consolidated Statement Of Cash
Consolidated Statement Of Cash Flows Statement - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash provided by (used in) Operating activities | ||
Net loss for the year | $ (78,202) | $ (6,748) |
Charges (credits) not involving cash | ||
Amortization of property and equipment | 8,331 | 8,828 |
Unrealized foreign exchange loss (gain) | 1,341 | (3,295) |
Amortization of deferred financing fees | 3,628 | 4,992 |
Accretion on tangible benefit obligation | 420 | 539 |
Share-based compensation | 1,354 | 2,950 |
Deferred share units expensed | 244 | 0 |
Write-down of term facility unamortized issue costs | 7,641 | 0 |
Accretion expense | 3,098 | 2,276 |
Change in fair value of embedded derivative | (7,185) | (11,251) |
Deferred tax recovery | (1,936) | (675) |
Write-down of acquired and library content | 12,928 | 3,402 |
Write-down of investment in film and television programs | 24,217 | 7,566 |
Impairment of intangible assets | 67,726 | 1,059 |
Gain on sale of assets | (6,499) | 0 |
Net investment in film and television programs (note 23) | 9,274 | 4,471 |
Net change in non-cash balances related to operations (note 23) | (30,602) | (32,012) |
Cash provided by operating activities | 44,529 | 13,364 |
Financing activities | ||
Common shares issued, net of withholding taxes | 815 | 228 |
Dividends | 0 | (10,315) |
(Repayment of) proceeds from bank indebtedness | (16,350) | 16,350 |
Repayment of interim production financing | (1,235) | (7,541) |
Distributions to non-controlling interests | (26,657) | (12,190) |
Payment of debt issue costs | 0 | (539) |
Decrease in cash held in trust | 0 | 239,877 |
Proceeds on sale of interest in a subsidiary, net of cash fees paid (note 16) | 218,088 | 0 |
Repayment of long-term debt and obligations under finance leases | (229,992) | (236,763) |
Cash used in financing activities | (55,331) | (10,893) |
Investing activities | ||
Business acquisitions, net of cash acquired | (2,696) | (7,641) |
Proceeds on sale of assets, net of transaction costs | 12,592 | 0 |
Acquisition of property and equipment | (1,247) | (2,426) |
Acquisition of intangible assets | (4,252) | (8,539) |
Cash provided by (used in) investing activities | 4,397 | (18,606) |
Effect of foreign exchange rate changes on cash | (146) | 542 |
Net change in cash during the year | (6,551) | (15,593) |
Cash - Beginning of the year | 46,550 | 62,143 |
Cash - End of the year | 39,999 | 46,550 |
Intangible Assets | ||
Charges (credits) not involving cash | ||
Amortization of intangible assets and Amortization of acquired and library content | 14,320 | 15,346 |
Acquired and library content | ||
Charges (credits) not involving cash | ||
Amortization of intangible assets and Amortization of acquired and library content | 14,431 | 15,916 |
Write-down of acquired and library content | $ 12,928 | $ 3,402 |
Nature of business
Nature of business | 12 Months Ended |
Jun. 30, 2019 | |
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 5657 Spring Garden Road, Unit 505, Halifax, Nova Scotia, B3J 3R4. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Jun. 30, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of preparation | Basis of preparation These consolidated financial statements were prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"), on a going concern basis. The accounting policies applied in these consolidated financial statements were based on IFRS issued and outstanding as at June 30, 2019 . These consolidated financial statements have been authorized for issuance by the Board of Directors on September 23, 2019. |
Significant accounting policies
Significant accounting policies, judgments and estimation uncertainty | 12 Months Ended |
Jun. 30, 2019 | |
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 the Company and all entities that it controls. DHX Media controls an entity: i) when it has the power to direct the activities of the entity that have the most significant impact on the entity's risks and/or returns; ii) where it is exposed to significant risks and/or returns arising from the entity; and iii) where it is able to use its power to affect the risks and/or returns to which it is exposed. 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 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. 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 (loss) 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 is recognized at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer by 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; and 5. recognize revenue when (or as) the entity satisfies a performance obligation. Revenue excludes sales taxes and other amounts that are collected on behalf of third parties and is recorded when control of a product or service is transferred to a customer. For initial broadcast license rights related to proprietary production titles, an assessment is made at the execution of each contract to determine whether: i) the performance obligations are satisfied over time, or ii) the performance obligations are satisfied at a point in time. Performance obligations are satisfied over time during the production of the title when the customer can exert control over the production process and the Company’s ability to generate other revenues from the title are limited based on the remaining rights held and the nature of the show. Revenue is recognized using the percentage-of-completion method when performance obligations are satisfied over time. Performance obligations that are not satisfied over time are satisfied at a point in time, which generally occurs when the production is completed, available to the customer and the customer has the contractual right to broadcast or stream the content. When performance obligations are satisfied at a point in time, revenue is recognized when all of the aforementioned recognition criteria are met. Revenue from the sale of broadcast license rights to third parties is recognized when the licensed content is available to the customer and the customer has the contractual right to broadcast or stream the content. Revenue from production services for third parties is recognized using the percentage-of-completion method. Percentage-of-completion recognizes revenues based upon the proportion of costs incurred in the current period to total expected costs. Royalty revenue is accrued for royalty streams when the amount of revenue can be reliably measured based on relevant agreements and statements received from third party agents, and the underlying sales activity generating the royalty revenue has occurred. 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 and the services have been performed. Minimum guarantees received on its merchandising and consumer brand licenses are deferred and recognized as revenue over the term of the license period. License renewals or extensions are recognized when the licensed content becomes available under the renewal or extension. 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 is recognized at the transaction price, which is adjusted for the consideration of the time value of money if the timing of payments provides the customer with a significant financing component. Principal versus agent revenue The Company evaluates each arrangement with third parties to determine whether revenue should be reported on a gross or net basis by determining whether the nature of its promise is a performance obligation to provide the specified goods or services itself (principal) or to arrange for those goods or services to be provided by the other party (agent). An assessment of each specified good or service promised to the customer is made separately. Where the Company acts as the principal in an arrangement, revenues are reported on a gross basis and revenues and expenses are classified accordingly in the consolidated statement of income (loss). Conversely, where the Company acts as the agent in an arrangement, revenues are reported on a net basis and presented net of any related expenses or costs. The most significant considerations to determine whether the Company acts as principal or agent include: i) whether the Company controls the specified good or service before it is transfered to the customer; ii) whether the Company is primarily responsible for fulfilling the promise to provide the specified good or service and the acceptability of such good or service; iii) whether the entity has inventory risk (or equivalent); and iv) whether the entity has latitude in establishing prices for the specified good or service. 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 30% 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 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 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. 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. Broadcast rights are tested for impairment on a title-by-title basis if events or changes in circumstances indiate that the carrying amount may exceed its recoverable amount. Any shortfall between the recoverable amount from future cash flows from the distribution rights and the carrying value is written off as an impairment expense on the consolidated statement of income (loss) in the period in which the decline in value becomes evident. 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 amounts. 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 finance costs in the consolidated statement of income. 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 (loss). 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 the sale or disposals of property and equipment are determined by comparing the proceeds with the carrying amount of the asset. 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 Customer representation agreements 5 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 flows 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 (i) Equity-settled transactions The Company issues stock options and performance share units ("PSUs") which are accounted for as equity-settled awards. Upon vesting, these awards are settled by the Company with common shares from treasury. The costs of equity-settled awards are measured using the Black-Scholes valuation model using management's inputs and assumptions. Share-based compensation expense for equity-settled awards are recognized over the vesting period of each award, with a corresponding increase to contributed surplus, based on the vesting period that has elapsed and the Company's best estimate of the number of equity instruments that will ultimately vest. No expense is recognized for awards that do not vest. (ii) Cash-settled transactions In Fiscal 2019, the Company introduced a deferred share unit plan ("DSU Plan") and long-term incentive plan ("LTIP"). The DSU Plan permits directors and certain eligible employees to defer receipt of all or a portion of their board fees or certain cash bonus amounts in the form of deferred share units ("DSUs"). DSUs fully vest upon grant and cannot be redeemed until the recipient is no longer a director or employee of the Company. DSUs are settled in cash or common shares of the Company that are purchased in the open market and held in a trust account, and are transferable on a 1:1 common share basis. In no event shall DSUs be settled by common shares issued from treasury. On the grant date, the Company recognizes a share-based compensation expense for the full value of the awards with a corresponding accrued liability. The value of the DSUs are adjusted each period based on the then prevailing market price of the Company's common shares through share-based compensation expense and the related liability. The LTIP provides common shares of the Company to certain eligible employees. These common shares are purchased in the open market and in no event are issued from treasury. On the grant date, the Company recognizes a share-based compensation expense for the value of the awards based on the cash cost of the common shares purchased. Earnings per share Basic earnings per share (“EPS”) is calculated by dividing the net income (loss) for the period attributable to equity owners of the Company by the weighted average number of common shares outstanding during the year. 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 under IAS 39, Financial Instruments, are applicable to prior year comparatives and 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 (loss). • Cash, cash held in trust, amounts 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. Financial instruments under IFRS 9 applies to the current fiscal year and are classified and measured based on the business model in which they are held and the characteristics of their contractual cash flows. IFRS 9 contains three primary measurement categories for financial assets: measured at fair value through profit and loss ("FVPL"), amortized cost, and fair value through other comprehensive income ("FVCI"). • Cash, cash held in trust and embedded derivative component of the senior unsecured convertible debentures are classified as FVPL, and are initially measured at fair value less transaction costs. They are subsequently measured at fair value and net gains/losses are recognized in the consolidated statement of income (loss). • Amounts receivables, long-term amounts receivables, accounts payable and accrued liabilities, interim production financing, long-term debt, senior unsecured convertible debentures and other liabilities are classified as 'Amortized Cost', and are initially measured at fair value. They are subsequently measured at amortized cost, with amounts receivables reassessed using the customer's historical default experience and expected future credit losses under the 'expected credit loss' model. • There are no financial assets classified as 'FVCI". Impairment of financial assets Under IAS 39, which applies to prior year comparative, the Company assesses whether there is objective evidence that a financial asset is impaired at each reporting period. 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 |
Compensation of key management
Compensation of key management | 12 Months Ended |
Jun. 30, 2019 | |
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: 2019 2018 $ $ Salaries and employee benefits 3,392 4,205 Share-based compensation 1,838 2,146 Termination benefits 732 2,899 5,962 9,250 |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations1 [Abstract] | |
Acquisitions | Acquisitions i) On May 17, 2019, the Company acquired 100% of the outstanding shares of an entity that provides international strategic expertise on licensing programs, partnering with entertainment and design brands, for cash consideration of EUR € 2,039 (CAD $3,066 ). This acquisition was accounted for using the purchase method and as such, the results of operations reflect revenue and expenses since the acquisition date of May 17, 2019. The final purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as follows: $ Assets Cash 370 Amounts receivable 468 Prepaid expenses and deposits 32 Property and equipment 26 Intangible assets 3,918 Total identifiable net assets at fair value 4,814 Accounts payable and accrued liabilities 844 Deferred income tax liabilities 904 1,748 Purchase consideration transferred 3,066 ii) 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 (CAD $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 (CAD $1,218 ) which, subject to achieving performance based targets, may become payable on the first and second anniversaries of closing. It was determined that $ nil would be payable in relation to the second 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 final 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 |
Amounts receivable
Amounts receivable | 12 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Amounts receivable | Amounts receivable June 30, June 30, $ $ Trade receivables 182,701 163,203 Less: Loss allowance on trade receivables (9,354 ) (9,742 ) 173,347 153,461 Goods and services tax recoverable, net 1,019 1,203 Federal and provincial film tax credits and other government assistance 91,344 96,874 Short-term amounts receivable 265,710 251,538 Long-term amounts receivable 14,318 18,789 Total amounts receivable 280,028 270,327 The aging of trade receivables not impaired is as follows: June 30, June 30, $ $ Less than 60 days 149,837 131,683 Between 60 and 90 days 7,016 5,863 Over 90 days 16,494 15,915 173,347 153,461 A continuity of loss allowance on trade receivables as follows: June 30, June 30, $ $ Opening balance 9,742 4,772 Impact of adoption of IFRS 9 1,049 — Opening balance, restated for IFRS 9 10,791 4,772 Loss allowance on trade receivables 2,788 5,089 Receivables written off in the year (3,428 ) (197 ) Recoveries of receivables previously provided for (586 ) (12 ) Foreign exchange (211 ) 90 Ending balance 9,354 9,742 |
Investment in film and televisi
Investment in film and television programs | 12 Months Ended |
Jun. 30, 2019 | |
Inventories [Abstract] | |
Investment in film and television programs | Investment in film and television programs June 30, June 30, $ $ Development costs 1,559 2,112 Productions in progress Cost, net of government and third party assistance 11,890 17,577 Productions completed and released Cost, net of government and third party assistance 564,065 529,494 Accumulated expense (417,206 ) (377,041 ) Accumulated write-down of investment in film and television programs (37,295 ) (15,910 ) 109,564 136,543 Program and film rights - broadcasting Cost 148,288 134,765 Accumulated expense (117,121 ) (102,202 ) Accumulated write-down of program and film rights (5,619 ) (2,787 ) 25,548 29,776 148,561 186,008 All program and film rights - broadcasting 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 186,008 195,180 Increase/(decrease) in development costs (553 ) 434 Cost of productions (completed and released and productions in progress), net of assistance 32,840 33,088 Expense of investment in film and television programs (40,165 ) (33,554 ) Write-down of investment in film and television programs (21,385 ) (4,779 ) Increase of program and film rights - broadcasting 13,523 14,110 Expense of program and film rights - broadcasting (14,919 ) (18,546 ) Write-down of program and film rights - broadcasting (2,832 ) (2,787 ) Foreign exchange (3,956 ) 2,862 148,561 186,008 During the year ended June 30, 2019 , interest of $665 (2018 - $1,384 ) was capitalized to investment in film and television programs. During the year ended June 30, 2019 , the Company recorded $24,217 in the write-down of certain investments in film, television programs and broadcasting film rights (2018 - $7,566 ). The Company assesses its investment in film titles for indicators of impairment based on current revenue performance. For titles with an indicator of impairment, recoverable amount is calculated using the value-in-use model and discounting the forecasted future cash flows based on revenue by territory and when rights revert back to the Company. Due to weaker than expected revenue performance and management's outlook for certain titles in the Company's library, it was determined that the carrying amount exceeded the recoverable amount for certain titles and an impairment charge was required. The television programming write-down related to licensed programming that were no longer being aired on the Company's television channels. |
Acquired and library content
Acquired and library content | 12 Months Ended |
Jun. 30, 2019 | |
Intangible Assets [Abstract] | |
Acquired and library content | Acquired and library content June 30, June 30, $ $ Net opening acquired and library content 147,088 155,940 Additions — 8,406 Write-down of acquired and library content (12,928 ) (3,402 ) Amortization (14,431 ) (15,916 ) Foreign exchange (1,482 ) 2,060 118,247 147,088 During the year ended June 30, 2019 , the Company recorded $12,928 in the write-down of certain acquired and library content (2018 - $3,402 ). The Company assesses its acquired and library content titles for indicators of impairment based on current revenue performance. For titles with an indicator of impairment, recoverable amount is calculated using the value-in-use model and discounting the forecasted future cash flows based on revenue by territory and when rights revert back to the Company. Due to weaker than expected revenue performance and management's outlook for certain titles in the Company's acquired library, it was determined that the carrying amount exceeded the recoverable amount for certain titles and an impairment charge was required. Intangible assets Broadcast licenses (4) Broadcaster relationships Customer relationships and representation agreements Brands (1) Production and distribution rights (2) Other (3) Total $ $ $ $ $ $ $ For the year ended June 30, 2018 Opening net 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 and impairment — (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 For the year ended June 30, 2019 Opening net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 Additions — — — 260 — 81 341 Acquisitions (note 5) — — 3,918 — — — 3,918 Impairment — — — (67,726 ) — — (67,726 ) Amortization — (21 ) (2,887 ) (8,100 ) (2,354 ) (958 ) (14,320 ) Foreign exchange differences — — (407 ) (2,055 ) (894 ) (22 ) (3,378 ) Net book value 67,800 211 16,601 363,093 17,921 206 465,832 At June 30, 2019 Cost 67,800 7,362 31,838 389,735 30,946 8,482 536,163 Accumulated amortization and impairment — (7,195 ) (15,359 ) (30,917 ) (8,363 ) (8,320 ) (70,154 ) Foreign exchange differences — 44 122 4,275 (4,662 ) 44 (177 ) Net book value 67,800 211 16,601 363,093 17,921 206 465,832 (1) Included in Brands are $348,246 of indefinite life intangibles (2018 - $350,419 ). (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. (4) All broadcast licenses relate to the operations of DHX Television. |
Property and equipment
Property and equipment | 12 Months Ended |
Jun. 30, 2019 | |
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, 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 — — 9 292 — 65 18 384 Net book value 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 For the year ended June 30, 2019 Opening net book value 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 Additions — — 52 877 2,190 1,050 2 4,171 Acquisitions (note 5) — — — 26 — — — 26 Disposals, net (4,276 ) (1,874 ) (148 ) (699 ) — — (9 ) (7,006 ) Amortization — (59 ) (381 ) (965 ) (4,527 ) (933 ) (1,466 ) (8,331 ) Foreign exchange — — — 56 — — — 56 — — 1,246 1,409 7,099 924 8,674 19,352 At June 30, 2019 Cost — — 6,534 13,592 22,211 6,277 14,877 63,491 Accumulated amortization — — (5,297 ) (12,531 ) (15,112 ) (5,418 ) (6,221 ) (44,579 ) Foreign exchange — — 9 348 — 65 18 440 Net book value — — 1,246 1,409 7,099 924 8,674 19,352 As at June 30, 2019, included in the property and equipment net book value were leased post-production equipment and computer software in the amount of $6,172 and $655 , respectively (2018 - $8,017 and $740 , respectively). On May 13, 2019, the Company sold its building in Toronto, Ontario for gross proceeds of $12,000 and recorded a gain on the transaction of $5,084 included in Development, integration and other in the consolidated statement of income (loss). Net book value of assets comprised of land for $4,276 and building for $1,874 (net of accumulated amortization of $444 ). |
Intangible assets
Intangible assets | 12 Months Ended |
Jun. 30, 2019 | |
Intangible Assets [Abstract] | |
Intangible assets | Acquired and library content June 30, June 30, $ $ Net opening acquired and library content 147,088 155,940 Additions — 8,406 Write-down of acquired and library content (12,928 ) (3,402 ) Amortization (14,431 ) (15,916 ) Foreign exchange (1,482 ) 2,060 118,247 147,088 During the year ended June 30, 2019 , the Company recorded $12,928 in the write-down of certain acquired and library content (2018 - $3,402 ). The Company assesses its acquired and library content titles for indicators of impairment based on current revenue performance. For titles with an indicator of impairment, recoverable amount is calculated using the value-in-use model and discounting the forecasted future cash flows based on revenue by territory and when rights revert back to the Company. Due to weaker than expected revenue performance and management's outlook for certain titles in the Company's acquired library, it was determined that the carrying amount exceeded the recoverable amount for certain titles and an impairment charge was required. Intangible assets Broadcast licenses (4) Broadcaster relationships Customer relationships and representation agreements Brands (1) Production and distribution rights (2) Other (3) Total $ $ $ $ $ $ $ For the year ended June 30, 2018 Opening net 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 and impairment — (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 For the year ended June 30, 2019 Opening net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 Additions — — — 260 — 81 341 Acquisitions (note 5) — — 3,918 — — — 3,918 Impairment — — — (67,726 ) — — (67,726 ) Amortization — (21 ) (2,887 ) (8,100 ) (2,354 ) (958 ) (14,320 ) Foreign exchange differences — — (407 ) (2,055 ) (894 ) (22 ) (3,378 ) Net book value 67,800 211 16,601 363,093 17,921 206 465,832 At June 30, 2019 Cost 67,800 7,362 31,838 389,735 30,946 8,482 536,163 Accumulated amortization and impairment — (7,195 ) (15,359 ) (30,917 ) (8,363 ) (8,320 ) (70,154 ) Foreign exchange differences — 44 122 4,275 (4,662 ) 44 (177 ) Net book value 67,800 211 16,601 363,093 17,921 206 465,832 (1) Included in Brands are $348,246 of indefinite life intangibles (2018 - $350,419 ). (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. (4) All broadcast licenses relate to the operations of DHX Television. |
Goodwill
Goodwill | 12 Months Ended |
Jun. 30, 2019 | |
Intangible Assets [Abstract] | |
Goodwill | Goodwill The continuity of goodwill is as follows: June 30, June 30, $ $ Opening balance 240,806 240,534 Exchange differences (1,052 ) 272 239,754 240,806 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, 2019 and 2018, in accordance with its policy described in note 3. Goodwill is tested for impairment at the lowest CGU level that goodwill is monitored. On this basis, management 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. As at June 30, 2019, the carrying amount of goodwill was $183,405 in the Content Business, $23,125 in Peanuts, and $33,224 in DHX Television (2018 - $184,314 in the Content Business, $23,268 in Peanuts, and $33,224 in DHX Television). 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 VIU of the Company's Content Business CGU and DHX Television CGU were determined by discounting two-year cash flow projections prepared from business plans reviewed by senior management and approved by the Board of Directors, and extended for three additional years using industry outlook growth rate assumptions for a total forecast period of five years . 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 to determine the terminal value. The discount rates are applied to the cash flows 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 2.0 % 13.8 % 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 were greater than their carrying values, as such the Company determined there were no impairments of goodwill or indefinite life intangible assets as at June 30, 2019. For the DHX Television CGU, management believes any reasonably possible change in the key assumptions on which the estimate of recoverable amount was determined would not result in an impairment. For the Content Business CGU, management's calculation of value-in-use resulted in the recoverable amount exceeding carrying amount by $24,000 . Management performed a sensitivity analysis and determined that an increase in the pre-tax discount rate by 65 basis points, and changing no other assumptions, would result in the carrying amount of the CGU to equal the recoverable amount. 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. on July 23, 2018 and other relevant market data. The Company's assessment of recoverable amount exceeded the carrying amount of the CGU by a significant margin, and therefore no impairment of goodwill or indefinite life intangible assets in the Peanuts CGU was required as at June 30, 2019. |
Bank indebtedness, interim prod
Bank indebtedness, interim production financing, long-term debt and obligations under finance leases | 12 Months Ended |
Jun. 30, 2019 | |
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 92,448 93,683 Long-term debt and obligations under finance leases 534,068 756,570 Interest bearing debt and obligations under finance leases 626,516 866,603 Amount due within 12 months (103,455 ) (120,557 ) Amount due beyond 12 months 523,061 746,046 a) Bank indebtedness The Revolving Facility has a maximum available balance of US $30,000 (CAD $39,261 ) 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, 2019 , $nil (June 30, 2018 - $16,350 ) was drawn on the Revolving Facility. b) Interim production financing June 30, June 30, $ $ Interim production credit facilities 92,448 93,683 Interim production credit facilities with various institutions, bearing interest at bank prime plus 0.5% - 1.0% , LIBOR plus 3.25% , or base rate of 5.75% plus 0.5% . Assignment and direction of specific production financing, licensing contracts receivable and film tax credits receivable with a net book value of approximately $109,573 at June 30, 2019 (June 30, 2018 - $115,639 ) have been pledged as security. During the year ended June 30, 2019 , the $CAD bank prime rate averaged 3.95% (2018 - 3.19% ). c) Long-term debt and obligations under finance leases June 30, June 30, $ $ Term Facility, net of unamortized issue costs of $11,856 (June 30, 2018 - $22,232) 407,031 623,066 Senior Unsecured Convertible Debentures, net of unamortized issue costs of $4,695 (June 30, 2018 - $5,588) and embedded derivatives at fair value of $4,755 (June 30, 2018 - $11,940) 120,850 124,747 Obligations under various finance leases, bearing interest at rates ranging from 4.0% to 9.8%, maturing on dates ranging from July 2019 to March 2023 6,187 8,757 534,068 756,570 Less: Current portion (11,007 ) (10,524 ) 523,061 746,046 (i) Term Facility As at June 30, 2019 , the Company's Term Facility had a principal balance of US $320,022 , or CAD $418,887 (June 30, 2018 - US $490,050 , or CAD $645,298 ), bearing interest at floating rates of either $US base rate + 2.75% or $US LIBOR + 3.75% and will mature on December 29, 2023. During the first quarter of fiscal 2019, the Company repaid US $161,328 (CAD $212,243 ) against its Term Facility using proceeds from the sale of a 49% interest of the Company's 80% ownership in Peanuts (see note 16). As a result of this repayment, the Company recorded a write-down of its unamortized issue costs of $7,320 . During the fourth quarter of fiscal 2019, the Company repaid US $8,700 (CAD $11,552 ) against its Term Facility using proceeds from the sale of its land and building. As a result of this repayment, the Company recorded a write-down of its unamortized issue costs of $321 . The Term Facility is repayable in equal quarterly installment payments of US $1,238 (CAD $1,620 ) or 0.25% of the initial principal commencing September 30, 2017. As a result of the repayment in the first quarter of 2019, the Company is not required to make any further installment payments through to maturity. 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, 2019 , $7,501 were owed under the Excess Cash Flow Payments terms of the Term Facility. The Senior Secured Credit Facilities require that the Company comply with a Total Net Leverage Ratio covenant, as defined in the Senior Secured Credit Agreement: Period Ratio target Each fiscal quarter commencing September 30, 2018 < 6.75x Each fiscal quarter commencing September 30, 2019 < 6.50x Each fiscal quarter commencing September 30, 2020 < 5.75x Each fiscal quarter commencing September 30, 2021 to Maturity at December 29, 2023 < 5.50x As at June 30, 2019 , the Company was in compliance with all its debt covenants with a Total Net Leverage Ratio of 5.92 x. (ii) Senior Unsecured Convertible Debentures As at June 30, 2019 , the Senior Unsecured Convertible Debentures had a principal balance of $140,000 (June 30, 2018 - $140,000 ), bearing interest at an annual rate of 5.875% and paid semi-annually on March 31 and September 30 of each year. 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 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. As a result, the Senior Unsecured Convertible Debentures were deemed to have no equity component at initial recognition and the estimated fair value of the embedded derivatives is recorded as a financial liability and 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 (loss). As at June 30, 2019 , the estimated fair value of the embedded derivatives was $4,755 . |
Share capital and share-based c
Share capital and share-based compensation | 12 Months Ended |
Jun. 30, 2019 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Share capital and share-based compensation | Share capital and share-based compensation 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 former Executive Chairman and Chief Executive Officer, Michael Donovan ("Donovan"), 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, Donovan entered into the PVVS Shareholder Agreement with the Company, pursuant to which Donovan: (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, 2019 June 30, 2018 Number Amount Number Amount $ $ Preferred variable voting shares (note 13 (a)) 100,000,000 — 100,000,000 — Common shares (note 13 (c)) Opening balance 134,293,890 305,167 134,061,548 304,320 Dividend reinvestment — — 108,180 419 Employee share purchase plan 100,390 226 43,496 199 PSU's settled 78,460 541 20,666 69 Options exercised 465,625 1,224 60,000 160 Ending balance 134,938,365 307,158 134,293,890 305,167 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, 2019 , the Company had 32,198,166 Common Voting Shares, 102,740,199 Variable Voting Shares and nil Non-Voting Shares issued and outstanding (2018 - 99,510,508 ; 34,783,382 ; and nil , respectively). During the year ended June 30, 2019 , the Company did not issue any common shares as part of the shareholder enrollment in the Company's dividend reinvestment program (2018 - 108,180 at $3.87 ). During the year ended June 30, 2019 , the Company issued 100,390 common shares, at an average price of $2.25 as part of the Company’s employee share purchase plan (2018 - 43,496 at $4.58 ). During the year ended June 30, 2019 , the Company issued 78,460 common shares, at an average price of $6.89 as part of the Company’s performance share unit plan (2018 - 20,666 at $3.34 ). During the year ended June 30, 2019 , 465,625 common shares were issued out of treasury at an average price of $1.79 upon exercise of stock options (2018 - 60,000 at $1.81 ). d) Stock options As at June 30, 2019 and 2018, the Company had the following stock options outstanding: Weighted average Number of exercise price options per stock option Outstanding at June 30, 2017 8,819,525 6.93 Granted 1,920,000 5.69 Forfeited (2,431,050 ) 7.85 Expired (125,000 ) 7.13 Exercised (60,000 ) 1.81 Outstanding at June 30, 2018 8,123,475 6.41 Granted 5,069,016 1.66 Forfeited (1,946,250 ) 6.67 Expired (810,000 ) 3.81 Exercised (465,625 ) 1.79 Outstanding at June 30, 2019 9,970,616 4.38 Exercisable at June 30, 2019 3,205,050 7.56 The total maximum number of common shares to be reserved for issuance through the Company's option plan at June 30, 2019 is 8.5% (2018 - 8.5% ) of the total number of outstanding common shares at any time. As at June 30, 2019 , this amounted to 11,469,761 (2018 - 11,414,980 ). On September 27, 2018, 4,046,500 options were granted to directors, officers and employees with an exercise price of $1.51 per common share. Included in this option grant were 3,046,500 that vest over four years and expire in seven years , and 1,000,000 that vest if the shares of DHX Media traded on the TSX reach a target price of $10 and expire in seven years . On November 16, 2018, 272,516 options were granted to directors, officers and employees with an exercise price of $2.81 per common share, all of which vest over four years and expire in seven years . On February 15, 2019, 300,000 options were granted to directors, officers and employees with an exercise price of $2.26 per common share, all of which vest over four years and expire in seven years . On May 17, 2019, 300,000 options were granted to a director with an exercise price of $1.80 per common share, vesting over 10 months subject to meeting certain performance conditions. On June 10, 2019, 150,000 options were granted to an employee with an exercise price of $2.04 per common share, vesting over four years and an expiry of seven years . The weighted average grant date value of stock options and assumptions using the Black-Scholes option pricing model for the year ended June 30, 2019 and 2018 are as follows: 2019 2018 Weighted average grant date value $ 1.68 $ 1.67 Risk-free rate 2.19 % 1.45 % Expected option life 5 years 5 years Expected volatility 46 % 36 % Expected dividend yield — % 1.35 % During the year ended June 30, 2019 , the compensation expense recognized as a result of stock options was $1,277 (2018 - $2,159 ), with a corresponding adjustment to contributed surplus. Information related to options outstanding at June 30, 2019 is presented below. Weighted Weighted Weighted Number average average Number average outstanding at remaining exercise outstanding at exercise Range of June 30, contractual life price June 30, price exercise prices 2019 years $ 2018 $ $1.50 - $3.49 5,034,016 6.33 1.66 655,625 2.03 $3.50 - $5.49 300,000 5.26 5.47 1,170,000 4.43 $5.50 - $7.49 2,672,100 4.18 6.43 4,027,100 6.57 $7.50 - $9.49 1,964,500 1.53 8.37 2,270,750 8.40 Total 9,970,616 4.78 4.38 8,123,475 6.41 e) Performance share unit plan 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 a three -year period. On the vesting date, each eligible employee will receive one common share for each PSU as settlement. As at June 30, 2019 , there were 55,198 PSUs (2018 - 207,270 PSUs) outstanding. During the year ended June 30, 2019, an expense of $43 was recognized for the vesting of PSUs (2018 - $791 expense) in share-based compensation expense, with a corresponding adjustment to contributed surplus. During the year ended June 30, 2019 , 148,689 PSUs were exercised of which 70,229 PSUs were withheld by the Company to settle employee tax withholding liabilities, and 3,383 PSUs were forfeited. On July 5, 2019, subsequent to year end, all remaining PSUs were exercised and settled. f) Deferred share unit plan During the year ended June 30, 2019 , the Company granted directors 128,587 DSUs and recognized an expense of $244 (2018 - $nil ) in share-based compensation expense. DSUs are classified as a cash-settled share-based award and included in other long-term liabilities in the consolidated balance sheet. g) Long-term incentive plan During the year ended June 30, 2019 , the Company recognized an expense of $228 (2018 - $nil ) in share-based compensation expense. The LTIP plan is cash-settled and proceeds are used to purchase common shares in the open market and transfered to eligible employees. h) Share-based compensation expense During the year ended June 30, 2019 and 2018, share-based compensation expense was comprised of equity-settled and cash-settled share-based compensation expense as follows: June 30, June 30, $ $ Equity-settled expense 1,354 2,950 Cash-settled expense 472 — Total share-based compensation expense 1,826 2,950 |
Government financing and assist
Government financing and assistance | 12 Months Ended |
Jun. 30, 2019 | |
Government Grants [Abstract] | |
Government financing and assistance | Government financing and assistance During the year ended June 30, 2019 , investment in film was reduced by $4,549 (2018 - $1,667 ) related to non-repayable contributions from the Canadian Media Fund license fee program. During the year ended June 30, 2019 , investment in film and television programs was reduced by $17,558 (2018 - $15,618 ) for tax credits related to production activities. Lastly, during the year ended June 30, 2019 , the Company received $47,164 , in government financing and assistance (2018 - $63,464 ). Amounts receivable from the Canadian federal government and other government agencies in connection with production financing represented 35% of total amounts receivable at June 30, 2019 (2018 - 36% ). Certain of these amounts are subject to audit by the government agency. 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, 2019 | |
Income Taxes [Abstract] | |
Income taxes | Income taxes Significant components of the Company’s net deferred income tax liability as at June 30, 2019 and June 30, 2018 are as follows: June 30, June 30, $ $ Broadcast licenses (17,967 ) (17,967 ) Tangible benefit obligation 1,644 2,171 Deferred revenue 372 — Foreign tax credits 4,238 2,324 Property and equipment 1,501 697 Share issuance costs and deferred financing fees (759 ) (1,603 ) Investment in film and television programs and acquired and library content (16,146 ) (27,568 ) Intangible assets 2,094 (9,633 ) Non-capital losses and other 8,617 33,900 Net deferred income tax liability (16,406 ) (17,679 ) In the fourth quarter of 2019, the Company recorded a deferred tax expense of $21.7 million related to the de-recognition of the deferred tax asset in Canada. The recognition of the Canadian net operating losses is dependent upon the future taxable income and the ability under Canadian tax law to utilize its net operating losses. Based on the current forecast of Canadian taxable income, it is no longer probable that the losses will be utilized. The ending balance of deferred tax asset not recognized of $21 million (2018 - $nil ), relates to the Canadian non-capital loss carry forwards which begin to expire in the 2033 taxation year. The de-recognition of the deferred tax asset related to the net operating losses does not constrain the Company's ability to utilize it against future income in Canada. 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 totaled $81,879 at June 30, 2019 (June 30, 2018 - $72,648 ). 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, 2018 - 31%) (25,391 ) (1,664 ) Income taxes increased (reduced) by: Share-based compensation 7 915 Non-taxable or non-deductible portion of capital gain/(loss) (4,768 ) (1,024 ) Tax rate differential 10,536 3,675 Non-controlling interest (5,946 ) (2,223 ) Tax rate change on opening balance — 2,120 Derecognition of deferred tax assets 21,743 — Other 113 (308 ) Provision for income taxes (3,706 ) 1,491 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. |
Non-controlling interest and pa
Non-controlling interest and partial disposal of interest in subsidiary | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure of interests in other entities [Abstract] | |
Non-controlling interest and partial dsposal of interest in subsidiary | Non-controlling interest and partial disposal of interest in subsidiary On July 23, 2018, the Company completed the sale of a non-controlling interest in its Peanuts subsidiary ("Peanuts") to Sony Music Entertainment (Japan) Inc. ("SMEJ"). SMEJ acquired 49% of the Company's 80% interest in Peanuts for gross proceeds of $234,610 and net proceeds of $214,112 (net of transaction costs of $8,720 and taxes of $11,778 ). The Company recorded an increase to non-controlling interest of $174,596 on the sale to SMEJ. Subsequent to the sale, the Company held a 41% interest in Peanuts, SMEJ held a 39% interest, and the members of the family of Charles M. Schulz held a 20% interest. Subsequent to the sale, the Company continued to control Peanuts and therefore consolidated 100% of Peanuts. As at June 30, 2019 , the Company's consolidated non-controlling interest of $256,945 included in the consolidated balance sheet primarily related to its subsidiary, Peanuts Worldwide LLC (DE). The following tables summarizes the information of Peanuts Worldwide LLC (DE), before intercompany eliminations: June 30, June 30, $ $ Current assets 97,628 89,891 Non-current assets 426,810 440,842 Current liabilities (48,560 ) (43,041 ) — (2,654 ) Net assets 475,878 485,038 Revenue 149,625 137,918 Total expenses (108,667 ) (100,929 ) Net income and comprehensive income 40,958 36,989 |
Finance costs
Finance costs | 12 Months Ended |
Jun. 30, 2019 | |
Analysis of income and expense [abstract] | |
Finance Costs | Finance costs Finance costs comprised of the following: June 30, June 30, $ $ Finance costs Interest income (2,036 ) (1,147 ) Interest expense on bank indebtedness 426 788 Accretion of tangible benefit obligation 420 539 Interest on long-term debt 37,239 42,661 Interest on completed and released productions 1,820 — Amortization of deferred financing fees 3,628 4,992 Write-down of term facility unamortized issue costs 7,641 — Accretion on Senior Unsecured Convertible Debentures 2,395 1,586 Interest on finance leases 703 690 52,236 50,109 Interest income is comprised of accretion on long-term amounts receivable and cash interest earned on bank deposits. |
Expenses by nature and employee
Expenses by nature and employee benefit expense | 12 Months Ended |
Jun. 30, 2019 | |
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, $ $ Direct production and new media costs 197,919 192,143 Expense of film and television programs 40,165 33,554 Expense of film and broadcast rights for broadcasting 14,919 18,546 Write-down of investment in film and television programs and acquired and library content 37,145 10,968 Development, integration and other 1,661 10,554 Impairment of intangible assets 67,726 1,059 Amortization of acquired and library content 14,431 15,916 Office and administrative 21,664 21,704 Finance costs, changes in fair value of embedded derivative, and foreign exchange 43,970 46,558 Investor relations and marketing 3,579 3,322 Professional and regulatory 6,401 7,804 Amortization of property and equipment and intangible assets 22,651 24,174 472,231 386,302 The following sets out the components of employee benefits expense: Salaries and employee benefits 47,651 50,421 Share-based compensation (note 13(h)) 1,826 2,950 49,477 53,371 521,708 439,673 |
Financial instruments
Financial instruments | 12 Months Ended |
Jun. 30, 2019 | |
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 $237,018 at June 30, 2019 (2018 - $228,542 ). 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 3.40% 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. 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 $4,000 to $5,000 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. As at June 30, 2019, the Company had cash on hand of $39,999 (June 30, 2018 - $46,550 ). 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 to provide funds until such time as the federal and provincial film tax credits 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, 2019, 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 $6,000 effect on net income and comprehensive income. Contractual maturity analysis for financial liabilities Less than 1 to 3 4 to 5 After 5 Total 1 year years years years $ $ $ $ $ Accounts payable and accrued liabilities 103,487 103,487 — — — Interim production financing 92,448 92,448 — — — Other long-term liabilities 3,283 — 3,283 — — Senior unsecured convertible debentures 183,198 8,225 16,450 16,450 142,073 Term facility 470,656 19,018 23,035 428,603 — Finance lease obligations 6,589 3,362 3,187 40 — 859,661 226,540 45,955 445,093 142,073 Contractual payments in the table above includes fixed rate interest payments but excludes variable rate interest payments and are not discounted. Other long-term liabilities exclude deferred lease inducements as these do not require any future contractual payments. e) Fair values Financial instruments recorded at fair value on the consolidated balance sheet are classified 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. Changes in assumptions and estimates could significantly affect fair values. Financial assets and liabilities measured at fair value June 30, 2019 June 30, 2018 Fair value hierarchy Fair value (1) Fair value hierarchy Fair value (1) $ $ Embedded Derivatives (2) Level 2 (4,755 ) Level 2 (11,940 ) (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 value of embedded derivatives are estimated using valuation models. 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 carrying amount of all financial instruments presented in the consolidated balance sheet approximate their fair values, except for the Senior Unsecured Convertible Debentures as follows: June 30, 2019 June 30, 2018 Fair value hierarchy Fair value liability Carrying value Fair value hierarchy Fair value liability Carrying value $ $ $ $ Senior Unsecured Convertible Debentures (1) Level 1 103,600 116,096 Level 1 123,200 112,870 (1) The fair value of the convertible debentures is based on market quotes as these are actively traded on the open exchange. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Commitments and contingencies | Commitments and contingencies Commitments The Company has entered into various operating and capital leases for premises and equipment. The future aggregate minimum payments are as follows: Operating Leases Capital Leases Total $ $ $ Less than 1 year 8,137 3,362 11,499 1 to 5 years 21,271 3,227 24,498 Beyond 5 years 11,065 — 11,065 Total 40,473 6,589 47,062 The Company has entered into various contracts to buy broadcast rights with future commitments totaling $13,966 . 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. |
Earnings or loss per common sha
Earnings or loss per common share | 12 Months Ended |
Jun. 30, 2019 | |
Earnings per share [abstract] | |
Earnings or loss per common share | Earnings or loss per common share a) Basic Basic earnings or loss per share is calculated by dividing the net income (loss) attributable to shareholders of the Company by the weighted average number of common shares outstanding during the year. June 30, June 30, $ $ Net loss attributable to shareholders of the Company (101,494 ) (14,060 ) Weighted average number of common shares outstanding (in 000's) 134,828 134,506 Basic loss per share (0.75 ) (0.10 ) b) Diluted Diluted earnings or loss per share reflect the potential dilutive effect that could occur if additional common shares were assumed to be issued under securities or instruments that may entitle their holders to obtain common shares in the future. Dilution could occur through the exercise of stock options, the exercise of PSUs, or the exercise of the conversion option of the convertible debentures. The number of additional shares for inclusion in the diluted earnings per share calculation was determined using the treasury stock method. For both fiscal years ended June 30, 2019 and 2018, 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 (101,494 ) (14,060 ) Weighted average number of common shares (in 000's) 134,828 134,506 Dilutive effect of share-based compensation (in 000's) — — Weighted average number of diluted shares outstanding 134,828 134,506 Diluted loss per share (0.75 ) (0.10 ) |
Capital disclosures
Capital disclosures | 12 Months Ended |
Jun. 30, 2019 | |
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. The balance of the Company’s cash is being used to maximize ongoing development and reduce leverage. The Company’s capital at June 30, 2019 and June 30, 2018 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 534,068 772,920 Less: Cash (39,999 ) (46,550 ) Net debt 494,069 726,370 Total Shareholders’ Equity 499,978 400,792 994,047 1,127,162 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 flows. These budgets are regularly reviewed by the Board of Directors. |
Statement of cash flows - suppl
Statement of cash flows - supplementary information | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019 2018 $ $ Decrease (increase) in amounts receivable (13,642 ) 7,345 Decrease (increase) in prepaid expenses and other 1,430 1,512 Decrease (increase) in long-term amounts receivable 4,471 7,713 Increase (decrease) in accounts payable and accrued liabilities (30,743 ) (42,165 ) Increase (decrease) in deferred revenue 10,288 (5,558 ) Tangible benefit obligation payments (2,406 ) (859 ) (30,602 ) (32,012 ) During the year, the Company paid and received the following: June 30, June 30, 2019 2018 $ $ Interest paid 39,850 45,156 Interest received 416 342 Taxes paid 8,151 3,694 Net change in film and television programs June 30, June 30, 2019 2018 $ $ Decrease (increase) in development 553 (434 ) Decrease (increase) in productions in progress 5,687 19,769 Decrease (increase) in productions completed and released (38,527 ) (52,854 ) Expense of film and television programs 40,165 33,554 Decrease (increase) in program and film rights - broadcasting (13,523 ) (14,110 ) Expense of film and broadcast rights for broadcasting 14,919 18,546 9,274 4,471 Reconciliation between the opening and closing balances on the consolidated balance sheet arising from financing activities Senior unsecured Term convertible Finance facility debentures leases Total $ $ $ $ Balance - June 30, 2018 623,066 124,747 8,757 756,570 Repayments (223,795 ) — (6,197 ) (229,992 ) Total financing cash flow activities (223,795 ) — (6,197 ) (229,992 ) Amortization of deferred financing costs 2,735 893 — 3,628 Write-down of term facility unamortized issue costs 7,641 — — 7,641 New finance leases — — 2,924 2,924 Change in fair value of embedded derivatives — (7,185 ) — (7,185 ) Accretion expense — 2,395 703 3,098 Unrealized foreign exchange gain (2,616 ) — — (2,616 ) — Total financing non-cash activities 7,760 (3,897 ) 3,627 7,490 — Balance - June 30, 2019 407,031 120,850 6,187 534,068 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 (6,651 ) — (313 ) (225,000 ) (5,338 ) (237,302 ) 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 — — — — 5,160 5,160 Change in fair value of embedded derivatives — — (11,251 ) — — (11,251 ) Accretion expense — — 1,586 — 690 2,276 Unrealized foreign exchange gain 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 |
Revenues and segmented informat
Revenues and segmented information | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019 CPLG DHX Television Content Consolidated $ $ $ $ Revenues 14,320 52,469 373,011 439,800 Direct production costs and expense of film and television produced, and selling, general and administrative 14,254 27,886 269,803 311,943 Segment profit 66 24,583 103,208 127,857 Corporate selling, general and administrative 22,181 Amortization of property and equipment and intangible assets 22,651 Finance costs 52,236 Foreign exchange gain (1,081 ) Change in fair value of embedded derivative (7,185 ) Amortization of acquired and library content 14,431 Write-down of investment in film and television programs and acquired and library content and impairment of intangible assets 104,871 Development, integration and other 1,661 Loss before income taxes (81,908 ) 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/(loss) (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 costs 50,109 Foreign exchange loss 7,700 Change in fair value of embedded derivative (11,251 ) Amortization of acquired and library content 15,916 Write-down of investment in film and television programs and acquired and library content 12,027 Development, integration and other 10,554 Loss before income taxes (5,257 ) The following table presents further components of revenue derived from the following areas: June 30, June 30, $ $ Content Production revenue 22,239 19,793 Distribution revenue 128,793 124,093 Merchandising and licensing and other revenue 160,252 144,712 Producer and service fee revenue 61,727 77,770 373,011 366,368 DHX Television Subscriber revenue 47,425 51,102 Promotion and advertising revenue 5,044 3,912 52,469 55,014 CPLG Third party brand representation revenue 14,320 13,034 439,800 434,416 Of the Company’s $439,800 in revenues for the year ended June 30, 2019 (2018 - $434,416 ), $161,870 was attributable to the Company’s entities based in Canada (2018 - $168,038 ), $158,072 (2018 - $144,940 ) was attributable to the Company’s entities based in the USA, $107,525 (2018 - $109,024 ) was attributable to the Companies entities based in the UK and $12,333 (2018 - $12,414 ) was attributable to entities based outside of Canada, the USA and the UK. As at June 30, 2019 , the following non-current assets were attributable to the Company’s entities based in the USA: $21 of property and equipment, $353,305 of intangible assets, and $26,271 of goodwill (2018 - $67 , $423,485 , and $26,399 , respectively). As at June 30, 2019, the following non-current assets were attributable to the Company’s entities based outside of Canada and the USA: $1,551 of property and equipment, $24,990 of intangible assets and $4,420 of goodwill (2018 - $1,872 , $30,332 , and $5,334 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, 2019 | |
Events After Reporting Period [Abstract] | |
Subsequent events | Subsequent events Subsequent to year end, the Company initiated a reorganization of its management team to simplify the organizational structure and reduce costs. These initiatives began in Q1 2020 and as a result, the Company expects to incur a one-time reorganization charge. |
Significant accounting polici_2
Significant accounting policies, judgments and estimation uncertainty (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
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 the Company and all entities that it controls. DHX Media controls an entity: i) when it has the power to direct the activities of the entity that have the most significant impact on the entity's risks and/or returns; ii) where it is exposed to significant risks and/or returns arising from the entity; and iii) where it is able to use its power to affect the risks and/or returns to which it is exposed. 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 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. |
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 (loss) 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 is recognized at an amount that reflects the expected consideration receivable in exchange for transferring goods or services to a customer by 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; and 5. recognize revenue when (or as) the entity satisfies a performance obligation. Revenue excludes sales taxes and other amounts that are collected on behalf of third parties and is recorded when control of a product or service is transferred to a customer. For initial broadcast license rights related to proprietary production titles, an assessment is made at the execution of each contract to determine whether: i) the performance obligations are satisfied over time, or ii) the performance obligations are satisfied at a point in time. Performance obligations are satisfied over time during the production of the title when the customer can exert control over the production process and the Company’s ability to generate other revenues from the title are limited based on the remaining rights held and the nature of the show. Revenue is recognized using the percentage-of-completion method when performance obligations are satisfied over time. Performance obligations that are not satisfied over time are satisfied at a point in time, which generally occurs when the production is completed, available to the customer and the customer has the contractual right to broadcast or stream the content. When performance obligations are satisfied at a point in time, revenue is recognized when all of the aforementioned recognition criteria are met. Revenue from the sale of broadcast license rights to third parties is recognized when the licensed content is available to the customer and the customer has the contractual right to broadcast or stream the content. Revenue from production services for third parties is recognized using the percentage-of-completion method. Percentage-of-completion recognizes revenues based upon the proportion of costs incurred in the current period to total expected costs. Royalty revenue is accrued for royalty streams when the amount of revenue can be reliably measured based on relevant agreements and statements received from third party agents, and the underlying sales activity generating the royalty revenue has occurred. 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 and the services have been performed. Minimum guarantees received on its merchandising and consumer brand licenses are deferred and recognized as revenue over the term of the license period. License renewals or extensions are recognized when the licensed content becomes available under the renewal or extension. 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 is recognized at the transaction price, which is adjusted for the consideration of the time value of money if the timing of payments provides the customer with a significant financing component. Principal versus agent revenue The Company evaluates each arrangement with third parties to determine whether revenue should be reported on a gross or net basis by determining whether the nature of its promise is a performance obligation to provide the specified goods or services itself (principal) or to arrange for those goods or services to be provided by the other party (agent). An assessment of each specified good or service promised to the customer is made separately. Where the Company acts as the principal in an arrangement, revenues are reported on a gross basis and revenues and expenses are classified accordingly in the consolidated statement of income (loss). Conversely, where the Company acts as the agent in an arrangement, revenues are reported on a net basis and presented net of any related expenses or costs. The most significant considerations to determine whether the Company acts as principal or agent include: i) whether the Company controls the specified good or service before it is transfered to the customer; ii) whether the Company is primarily responsible for fulfilling the promise to provide the specified good or service and the acceptability of such good or service; iii) whether the entity has inventory risk (or equivalent); and iv) whether the entity has latitude in establishing prices for the specified good or service. |
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 30% 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 | 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 Customer representation agreements 5 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 flows and therefore, when assessing these assets for impairment, the Company looks to the CGUs to which the asset belongs. 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 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 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. 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. Broadcast rights are tested for impairment on a title-by-title basis if events or changes in circumstances indiate that the carrying amount may exceed its recoverable amount. Any shortfall between the recoverable amount from future cash flows from the distribution rights and the carrying value is written off as an impairment expense on the consolidated statement of income (loss) in the period in which the decline in value becomes evident. |
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 amounts. |
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 finance costs in the consolidated statement of income. 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 (loss). 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 the sale or disposals of property and equipment are determined by comparing the proceeds with the carrying amount of the asset. |
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 (i) Equity-settled transactions The Company issues stock options and performance share units ("PSUs") which are accounted for as equity-settled awards. Upon vesting, these awards are settled by the Company with common shares from treasury. The costs of equity-settled awards are measured using the Black-Scholes valuation model using management's inputs and assumptions. Share-based compensation expense for equity-settled awards are recognized over the vesting period of each award, with a corresponding increase to contributed surplus, based on the vesting period that has elapsed and the Company's best estimate of the number of equity instruments that will ultimately vest. No expense is recognized for awards that do not vest. (ii) Cash-settled transactions In Fiscal 2019, the Company introduced a deferred share unit plan ("DSU Plan") and long-term incentive plan ("LTIP"). The DSU Plan permits directors and certain eligible employees to defer receipt of all or a portion of their board fees or certain cash bonus amounts in the form of deferred share units ("DSUs"). DSUs fully vest upon grant and cannot be redeemed until the recipient is no longer a director or employee of the Company. DSUs are settled in cash or common shares of the Company that are purchased in the open market and held in a trust account, and are transferable on a 1:1 common share basis. In no event shall DSUs be settled by common shares issued from treasury. On the grant date, the Company recognizes a share-based compensation expense for the full value of the awards with a corresponding accrued liability. The value of the DSUs are adjusted each period based on the then prevailing market price of the Company's common shares through share-based compensation expense and the related liability. The LTIP provides common shares of the Company to certain eligible employees. These common shares are purchased in the open market and in no event are issued from treasury. On the grant date, the Company recognizes a share-based compensation expense for the value of the awards based on the cash cost of the common shares purchased. |
Earnings per share | Earnings per share Basic earnings per share (“EPS”) is calculated by dividing the net income (loss) for the period attributable to equity owners of the Company by the weighted average number of common shares outstanding during the year. 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 under IAS 39, Financial Instruments, are applicable to prior year comparatives and 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 (loss). • Cash, cash held in trust, amounts 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 Under IAS 39, which applies to prior year comparative, the Company assesses whether there is objective evidence that a financial asset is impaired at each reporting period. 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. |
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. Discounting 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 accounting standards | New and amended standards adopted i) IFRS 9, Financial Instruments ("IFRS 9") Effective July 1, 2018, the Company adopted IFRS 9, which establishes a single classification and measurement approach for financial assets and financial liabilities that reflect the business model in which they are managed and their cash flow characteristics. IFRS 9 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. IFRS 9 replaces IAS 39, Financial Instruments: Recognition and Measurement ("IAS 39"). Under the previous accounting standard, the Company calculated its provision for impaired receivables by applying an 'incurred loss' model. Under IFRS 9, the Company applied the 'expected credit loss' model under a simplified approach, which is permitted for financial assets that do not have a significant financing component. 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 the customer's historical default experience and expected future credit losses. Goods and services taxes recoverable and other government assistance do not contain any significant uncertainty. In accordance with the transitional provisions of IFRS 9, the resulting increase to the provision for impaired receivables as at July 1, 2018 was $1,049 with a corresponding increase to opening deficit. In addition, the Company previously classified its financial assets as 'loans and receivables' and its financial liabilities as 'other financial liabilities', both of which were measured at amortized cost, with the exception of embedded derivatives which was classified as FVPL and measured, on a recurring basis, at fair value. Under IFRS 9, the measurement basis would remain the same across all financial instruments, however the category for classification has been amended to 'Amortized Cost' for its financial assets classified as loans and receivables and its financial liabilities classified as other financial liabilities, and to FVPL for its embedded derivative. The standard also clarifies the accounting treatment for modifications of financial liabilities and requires a financial liability measured at amortized cost to be remeasured when a modification occurs. Any resulting gain or loss is required to be recognized in profit or loss at the date of modification. There was no adjustment to the Company's consolidated financial statements as a result of this change. ii) IFRS 15, Revenue from Contracts with Customers (“IFRS 15”) Effective July 1, 2018, the Company adopted IFRS 15, which establishes a new comprehensive framework to record revenues from contracts for the sale of goods or services, unless the contracts are in the scope of other standards. IFRS 15 replaces IAS 18, Revenue, 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; and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company adopted IFRS 15 using the modified retrospective method, which requires the cumulative effect of initially applying the Standard to be recognized at the date of initial application, which is July 1, 2018, and that the financial information previously presented for the year ended June 30, 2018 would remain unchanged. The Company also elected to apply the practical expedient which permits the Company to apply IFRS 15 retrospectively only to contracts that are not completed contracts at the date of initial application. The significant changes to the Company's revenue recognition policies are as follows: • Under its proprietary production channel, the Company previously recorded revenue for the initial broadcast rights when the production was completed and available to the customer. Under IFRS 15, an assessment is made at the inception of each contract to determine whether: i) the performance obligations are satisfied at a point in time, which generally occurs when the production is completed, available to the customer, and the customer has the contractual right to broadcast or stream the content; or ii) the Company transfers control of the production over time and therefore satisfies the performance obligations and recognizes revenue over time. Over time recognition generally occurs when the Company's production creates an asset that the customer controls as that production is created. When performance obligations are satisfied at a point in time, revenue is recognized when all the aforementioned criteria are met. When performance obligations are satisfied over time during the production of the show, revenue is recognized using the percentage of completion method, based on actual costs incurred compared to the total estimated costs. This change did not have an effect on the Company's opening balance sheet. • Under its distribution channel, the Company previously recorded revenue on certain distribution license agreements for its television and film content when the contract was executed and the licensed content was available to the customer. Under IFRS 15, revenue is deferred and recorded as revenue when the licensed content is available to the customer and the customer has the contractual right to broadcast or stream the content. This change did not have an effect on the Company's opening balance sheet. • Under its consumer product-owned channel, the Company previously recognized license revenue relating to certain minimum guarantees for royalties on its copyrights and brands at the start of the license period. Under IFRS 15, the Company determined that these were right-of-access licenses and as a result, minimum guarantees are deferred and amortized over the term of the license. Royalty revenue is calculated as the greater of royalties based on underlying sales or the pro-rata allocation of the minimum guarantee. This change resulted in a July 1, 2018 adjustment to increase opening deficit by $5.8 million , an increase to opening deferred revenue by $6.5 million , a decrease to opening deferred income taxes by $1.1 million and a decrease to accumulated other comprehensive loss by $0.5 million . • For renewals or extensions of license agreements for television and film content, the Company previously recorded revenue when the agreement was renewed or extended. Under IFRS 15, revenue related to the extension or renewal term is recognized when the customer has the contractual right to broadcast or stream the content. This change did not have an effect on the Company's opening balance sheet. The following is a reconciliation of the impact of IFRS 15 for the year ended June 30, 2019: June 30, $ Revenue under IFRS 15, as reported 439,800 Impact of IFRS 15 on revenue: Revenue on minimum guarantees (1) (3,693 ) Revenue on proprietary production shows (2) 1,544 Revenue on distribution licenses (3) 1,834 Revenue under IAS 18 439,485 Direct production costs and expense of film and television produced under IFRS 15, as reported 253,003 Impact of IFRS 15 on Direct production costs and expense of film and television produced: (4) 926 Direct production costs and expense of film and television produced under IAS 18 253,929 (1) Revenue on minimum guarantees - these are minimum guarantees on royalties in the consumer products-owned channel that were previously recognized at the inception of the license period but under IFRS 15 are recognized over the license term as a "right-to-access license", resulting in a corresponding adjustment to deferred revenue. (2) Revenue on proprietary production shows - these are proprietary production revenues that would have met the previous revenue recognition criteria under IAS 18 and recognized at a point in time with a corresponding adjustment to amounts receivable, but have been deferred under IFRS 15 as the risks and rewards of ownership under IAS 18 transferred to the customer at an earlier date than control was transferred under IFRS 15. (3) Revenue on distribution licenses - these are distribution revenues that would have met the previous revenue recognition criteria under IAS 18 and recognized at a point in time with a corresponding adjustment to amounts receivable, but have been deferred under IFRS 15 as the risks and rewards of ownership under IAS 18 transferred to the customer at an earlier date than control transferred under IFRS 15. (4) Direct production and new media costs - these costs are the expense of film and television produced related to proprietary production shows that have been deferred, with a corresponding adjustment to investment in film and television programs. iii) IFRIC 22, Foreign Currency Transactions and Advance Consideration ("IFRIC 22") Effective July 1, 2018, the Company adopted IFRIC 22, which clarified 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 recognizes the non-monetary asset or liability arising from the advance consideration (the prepayment or deferred income/contract liability). The Company elected to apply IFRIC 22 prospectively beginning July 1, 2018. The adoption of this standard did not have a material impact to the Company's consolidated financial statements. iv) Amendments to IFRS 2, Share-Based Payment ("IFRS 2") Effective July 1, 2018, the Company adopted the amendments to IFRS 2, which clarified the classification and measurement of certain share-based payment transactions. The adoption of this amendment did not have an impact to the Company's consolidated financial statements. Accounting standards issued but not yet applied i) Effective July 1, 2019, the Company will adopt IFRS 16, Leases ("IFRS 16"), which introduces a single accounting model and eliminates the existing distinction between operating and finance leases for lessees. The standard requires a lessee to recognize right-of-use assets and lease liabilities on the statement of financial position for all leases, with limited exceptions. The Company will adopt IFRS 16 using the modified retrospective method, which will result in no restatement to prior reporting periods presented and no adjustment to opening retained earnings as at July 1, 2019. Existing finance leases under the previous standard will continue on as finance leases under IFRS 16. The Company has elected to apply the following practical expedients on adoption: • Consider contracts determined to be leases under IAS 17, Leases ( "IAS 17" ) as leases under IFRS 16; • Measure all right-of-use assets and lease liabilities, regardless of commencement date, using discount rates as of July 1, 2019; • Retain prior assessment of onerous lease contracts under IAS 37, provision, contingent liabilities and contingent Assets, rather than re-performing an impairment review; • Exclude initial direct costs from the measurement of the right-of-use asset on the date of initial application; • Continue to treat leases with a remaining term of 12 months or less from July 1, 2019, and low-value leases, as operating leases under IAS 17; and • Elect, by class of underlying asset, not to separate non-lease components from lease components. The adoption of IFRS 16 is expected to result in the recognition of approximately $34 million in lease liabilities, $27 million in right-of-use assets, $2 million in amounts receivable, and a reduction of accounts payable and accrued liabilities and other long-term liabilities by $5 million related to lease inducements under IAS 17. Additional disclosures required by the new standard will be included in the first quarter of fiscal 2020. ii) In June 2017, the IASB issued IFRIC 23, Uncertainty over Income Tax Treatment 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 permitted. The Company does not expect a material financial impact due to the adoption of this Standard. 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 Company allocates the consideration paid in the acquisition of a business to the identifiable tangible and intangible assets acquired and liabilities assumed based on their fair values at the transaction date, in accordance with IFRS 3, Business combinations , and any excess is recorded as goodwill. Management exercises judgment in determining the fair values of assets acquired and liabilities assumed based on assumptions and estimates, which are inherently uncertain and based on the best information available at the time of the assessment. Estimates include future cash flows forecasts, discount rates, estimated changes in future operating costs including the effects of synergies, among others. Changes in assumptions applied or estimated 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. (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 30% 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, indefinite life intangibles and non-financial assets Management estimates the recoverable amount of each CGU with goodwill, indefinite life intangibles and non-financial assets when an indicator of impairment exists. Goodwill and indefinite life intangibles are also tested annually at year end for impairment. Recoverable amount is estimated at the greater of a CGU's value-in-use or fair value less costs to sell, and the excess of carrying amount over the recoverable amount is recorded as an impairment charge in the period. 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, indefinite life intangible assets and non-financial assets in subsequent reporting periods. (v) Measurement of expected credit loss allowance Management estimates the expected credit loss allowance for trade accounts receivable based on an assessment of accounts receivable aging, management's collection experience with the customer, and the probability that these balances will not be collected. (vi) Revenue recognition of proprietary production For the Company's proprietary production revenues, an assessment is made at the inception of each contract to determine whether performance obligations are satisfied over a period of time, or at a point in time. Management exercises judgment in assessing the facts and circumstances of each arrangement, including the ongoing ability to control the asset, the rights retained, and the nature of the Company's performance obligations. Contracts where performance obligations are satisfied over a period of time are recognized using the percentage of completion method of revenue completion, while contracts where performance obligations are satisfied at a point in time are recognized when all performance obligations are completed, as described above under the Company's policy on revenue recognition. |
Significant accounting polici_3
Significant accounting policies, judgments and estimation uncertainty (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, 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 — — 9 292 — 65 18 384 Net book value 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 For the year ended June 30, 2019 Opening net book value 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 Additions — — 52 877 2,190 1,050 2 4,171 Acquisitions (note 5) — — — 26 — — — 26 Disposals, net (4,276 ) (1,874 ) (148 ) (699 ) — — (9 ) (7,006 ) Amortization — (59 ) (381 ) (965 ) (4,527 ) (933 ) (1,466 ) (8,331 ) Foreign exchange — — — 56 — — — 56 — — 1,246 1,409 7,099 924 8,674 19,352 At June 30, 2019 Cost — — 6,534 13,592 22,211 6,277 14,877 63,491 Accumulated amortization — — (5,297 ) (12,531 ) (15,112 ) (5,418 ) (6,221 ) (44,579 ) Foreign exchange — — 9 348 — 65 18 440 Net book value — — 1,246 1,409 7,099 924 8,674 19,352 |
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 Customer representation agreements 5 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 147,088 155,940 Additions — 8,406 Write-down of acquired and library content (12,928 ) (3,402 ) Amortization (14,431 ) (15,916 ) Foreign exchange (1,482 ) 2,060 118,247 147,088 Broadcast licenses (4) Broadcaster relationships Customer relationships and representation agreements Brands (1) Production and distribution rights (2) Other (3) Total $ $ $ $ $ $ $ For the year ended June 30, 2018 Opening net 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 and impairment — (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 For the year ended June 30, 2019 Opening net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 Additions — — — 260 — 81 341 Acquisitions (note 5) — — 3,918 — — — 3,918 Impairment — — — (67,726 ) — — (67,726 ) Amortization — (21 ) (2,887 ) (8,100 ) (2,354 ) (958 ) (14,320 ) Foreign exchange differences — — (407 ) (2,055 ) (894 ) (22 ) (3,378 ) Net book value 67,800 211 16,601 363,093 17,921 206 465,832 At June 30, 2019 Cost 67,800 7,362 31,838 389,735 30,946 8,482 536,163 Accumulated amortization and impairment — (7,195 ) (15,359 ) (30,917 ) (8,363 ) (8,320 ) (70,154 ) Foreign exchange differences — 44 122 4,275 (4,662 ) 44 (177 ) Net book value 67,800 211 16,601 363,093 17,921 206 465,832 (1) Included in Brands are $348,246 of indefinite life intangibles (2018 - $350,419 ). (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. (4) All broadcast licenses relate to the operations of DHX Television. |
Reconciliation of impact of IFRS 15 | The following is a reconciliation of the impact of IFRS 15 for the year ended June 30, 2019: June 30, $ Revenue under IFRS 15, as reported 439,800 Impact of IFRS 15 on revenue: Revenue on minimum guarantees (1) (3,693 ) Revenue on proprietary production shows (2) 1,544 Revenue on distribution licenses (3) 1,834 Revenue under IAS 18 439,485 Direct production costs and expense of film and television produced under IFRS 15, as reported 253,003 Impact of IFRS 15 on Direct production costs and expense of film and television produced: (4) 926 Direct production costs and expense of film and television produced under IAS 18 253,929 (1) Revenue on minimum guarantees - these are minimum guarantees on royalties in the consumer products-owned channel that were previously recognized at the inception of the license period but under IFRS 15 are recognized over the license term as a "right-to-access license", resulting in a corresponding adjustment to deferred revenue. (2) Revenue on proprietary production shows - these are proprietary production revenues that would have met the previous revenue recognition criteria under IAS 18 and recognized at a point in time with a corresponding adjustment to amounts receivable, but have been deferred under IFRS 15 as the risks and rewards of ownership under IAS 18 transferred to the customer at an earlier date than control was transferred under IFRS 15. (3) Revenue on distribution licenses - these are distribution revenues that would have met the previous revenue recognition criteria under IAS 18 and recognized at a point in time with a corresponding adjustment to amounts receivable, but have been deferred under IFRS 15 as the risks and rewards of ownership under IAS 18 transferred to the customer at an earlier date than control transferred under IFRS 15. (4) Direct production and new media costs - these costs are the expense of film and television produced related to proprietary production shows that have been deferred, with a corresponding adjustment to investment in film and television programs. |
Compensation of key management
Compensation of key management (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Related Party [Abstract] | |
Compensation earned by key management | The compensation earned by key management is as follows: 2019 2018 $ $ Salaries and employee benefits 3,392 4,205 Share-based compensation 1,838 2,146 Termination benefits 732 2,899 5,962 9,250 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations1 [Abstract] | |
Disclosure of detailed information about business combinations | The final 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 final purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values as follows: $ Assets Cash 370 Amounts receivable 468 Prepaid expenses and deposits 32 Property and equipment 26 Intangible assets 3,918 Total identifiable net assets at fair value 4,814 Accounts payable and accrued liabilities 844 Deferred income tax liabilities 904 1,748 Purchase consideration transferred 3,066 |
Amounts receivable (Tables)
Amounts receivable (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of amounts receivable | June 30, June 30, $ $ Trade receivables 182,701 163,203 Less: Loss allowance on trade receivables (9,354 ) (9,742 ) 173,347 153,461 Goods and services tax recoverable, net 1,019 1,203 Federal and provincial film tax credits and other government assistance 91,344 96,874 Short-term amounts receivable 265,710 251,538 Long-term amounts receivable 14,318 18,789 Total amounts receivable 280,028 270,327 |
Aging of trade receivables | The aging of trade receivables not impaired is as follows: June 30, June 30, $ $ Less than 60 days 149,837 131,683 Between 60 and 90 days 7,016 5,863 Over 90 days 16,494 15,915 173,347 153,461 |
Provision for impairment of trade receivables | A continuity of loss allowance on trade receivables as follows: June 30, June 30, $ $ Opening balance 9,742 4,772 Impact of adoption of IFRS 9 1,049 — Opening balance, restated for IFRS 9 10,791 4,772 Loss allowance on trade receivables 2,788 5,089 Receivables written off in the year (3,428 ) (197 ) Recoveries of receivables previously provided for (586 ) (12 ) Foreign exchange (211 ) 90 Ending balance 9,354 9,742 |
Investment in film and televi_2
Investment in film and television programs (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 186,008 195,180 Increase/(decrease) in development costs (553 ) 434 Cost of productions (completed and released and productions in progress), net of assistance 32,840 33,088 Expense of investment in film and television programs (40,165 ) (33,554 ) Write-down of investment in film and television programs (21,385 ) (4,779 ) Increase of program and film rights - broadcasting 13,523 14,110 Expense of program and film rights - broadcasting (14,919 ) (18,546 ) Write-down of program and film rights - broadcasting (2,832 ) (2,787 ) Foreign exchange (3,956 ) 2,862 148,561 186,008 June 30, June 30, $ $ Development costs 1,559 2,112 Productions in progress Cost, net of government and third party assistance 11,890 17,577 Productions completed and released Cost, net of government and third party assistance 564,065 529,494 Accumulated expense (417,206 ) (377,041 ) Accumulated write-down of investment in film and television programs (37,295 ) (15,910 ) 109,564 136,543 Program and film rights - broadcasting Cost 148,288 134,765 Accumulated expense (117,121 ) (102,202 ) Accumulated write-down of program and film rights (5,619 ) (2,787 ) 25,548 29,776 148,561 186,008 |
Acquired and library content (T
Acquired and library content (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 Customer representation agreements 5 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 147,088 155,940 Additions — 8,406 Write-down of acquired and library content (12,928 ) (3,402 ) Amortization (14,431 ) (15,916 ) Foreign exchange (1,482 ) 2,060 118,247 147,088 Broadcast licenses (4) Broadcaster relationships Customer relationships and representation agreements Brands (1) Production and distribution rights (2) Other (3) Total $ $ $ $ $ $ $ For the year ended June 30, 2018 Opening net 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 and impairment — (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 For the year ended June 30, 2019 Opening net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 Additions — — — 260 — 81 341 Acquisitions (note 5) — — 3,918 — — — 3,918 Impairment — — — (67,726 ) — — (67,726 ) Amortization — (21 ) (2,887 ) (8,100 ) (2,354 ) (958 ) (14,320 ) Foreign exchange differences — — (407 ) (2,055 ) (894 ) (22 ) (3,378 ) Net book value 67,800 211 16,601 363,093 17,921 206 465,832 At June 30, 2019 Cost 67,800 7,362 31,838 389,735 30,946 8,482 536,163 Accumulated amortization and impairment — (7,195 ) (15,359 ) (30,917 ) (8,363 ) (8,320 ) (70,154 ) Foreign exchange differences — 44 122 4,275 (4,662 ) 44 (177 ) Net book value 67,800 211 16,601 363,093 17,921 206 465,832 (1) Included in Brands are $348,246 of indefinite life intangibles (2018 - $350,419 ). (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. (4) All broadcast licenses relate to the operations of DHX Television. |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, 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 — — 9 292 — 65 18 384 Net book value 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 For the year ended June 30, 2019 Opening net book value 4,276 1,933 1,723 2,114 9,436 807 10,147 30,436 Additions — — 52 877 2,190 1,050 2 4,171 Acquisitions (note 5) — — — 26 — — — 26 Disposals, net (4,276 ) (1,874 ) (148 ) (699 ) — — (9 ) (7,006 ) Amortization — (59 ) (381 ) (965 ) (4,527 ) (933 ) (1,466 ) (8,331 ) Foreign exchange — — — 56 — — — 56 — — 1,246 1,409 7,099 924 8,674 19,352 At June 30, 2019 Cost — — 6,534 13,592 22,211 6,277 14,877 63,491 Accumulated amortization — — (5,297 ) (12,531 ) (15,112 ) (5,418 ) (6,221 ) (44,579 ) Foreign exchange — — 9 348 — 65 18 440 Net book value — — 1,246 1,409 7,099 924 8,674 19,352 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 Customer representation agreements 5 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 147,088 155,940 Additions — 8,406 Write-down of acquired and library content (12,928 ) (3,402 ) Amortization (14,431 ) (15,916 ) Foreign exchange (1,482 ) 2,060 118,247 147,088 Broadcast licenses (4) Broadcaster relationships Customer relationships and representation agreements Brands (1) Production and distribution rights (2) Other (3) Total $ $ $ $ $ $ $ For the year ended June 30, 2018 Opening net 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 and impairment — (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 For the year ended June 30, 2019 Opening net book value 67,800 232 15,977 440,714 21,169 1,105 546,997 Additions — — — 260 — 81 341 Acquisitions (note 5) — — 3,918 — — — 3,918 Impairment — — — (67,726 ) — — (67,726 ) Amortization — (21 ) (2,887 ) (8,100 ) (2,354 ) (958 ) (14,320 ) Foreign exchange differences — — (407 ) (2,055 ) (894 ) (22 ) (3,378 ) Net book value 67,800 211 16,601 363,093 17,921 206 465,832 At June 30, 2019 Cost 67,800 7,362 31,838 389,735 30,946 8,482 536,163 Accumulated amortization and impairment — (7,195 ) (15,359 ) (30,917 ) (8,363 ) (8,320 ) (70,154 ) Foreign exchange differences — 44 122 4,275 (4,662 ) 44 (177 ) Net book value 67,800 211 16,601 363,093 17,921 206 465,832 (1) Included in Brands are $348,246 of indefinite life intangibles (2018 - $350,419 ). (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. (4) All broadcast licenses relate to the operations of DHX Television. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in goodwill | The continuity of goodwill is as follows: June 30, June 30, $ $ Opening balance 240,806 240,534 Exchange differences (1,052 ) 272 239,754 240,806 |
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 2.0 % 13.8 % DHX Television 0.0 % 15.5 % |
Bank indebtedness, interim pr_2
Bank indebtedness, interim production financing, long-term debt and obligations under financing leases (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about borrowings | Interim production financing June 30, June 30, $ $ Interim production credit facilities 92,448 93,683 Long-term debt and obligations under finance leases June 30, June 30, $ $ Term Facility, net of unamortized issue costs of $11,856 (June 30, 2018 - $22,232) 407,031 623,066 Senior Unsecured Convertible Debentures, net of unamortized issue costs of $4,695 (June 30, 2018 - $5,588) and embedded derivatives at fair value of $4,755 (June 30, 2018 - $11,940) 120,850 124,747 Obligations under various finance leases, bearing interest at rates ranging from 4.0% to 9.8%, maturing on dates ranging from July 2019 to March 2023 6,187 8,757 534,068 756,570 Less: Current portion (11,007 ) (10,524 ) 523,061 746,046 June 30, June 30, $ $ Bank indebtedness — 16,350 Interim production financing 92,448 93,683 Long-term debt and obligations under finance leases 534,068 756,570 Interest bearing debt and obligations under finance leases 626,516 866,603 Amount due within 12 months (103,455 ) (120,557 ) Amount due beyond 12 months 523,061 746,046 |
Disclosure of repayments of borrowings | The Senior Secured Credit Facilities require that the Company comply with a Total Net Leverage Ratio covenant, as defined in the Senior Secured Credit Agreement: Period Ratio target Each fiscal quarter commencing September 30, 2018 < 6.75x Each fiscal quarter commencing September 30, 2019 < 6.50x Each fiscal quarter commencing September 30, 2020 < 5.75x Each fiscal quarter commencing September 30, 2021 to Maturity at December 29, 2023 < 5.50x Contractual maturity analysis for financial liabilities Less than 1 to 3 4 to 5 After 5 Total 1 year years years years $ $ $ $ $ Accounts payable and accrued liabilities 103,487 103,487 — — — Interim production financing 92,448 92,448 — — — Other long-term liabilities 3,283 — 3,283 — — Senior unsecured convertible debentures 183,198 8,225 16,450 16,450 142,073 Term facility 470,656 19,018 23,035 428,603 — Finance lease obligations 6,589 3,362 3,187 40 — 859,661 226,540 45,955 445,093 142,073 |
Share capital and share-based_2
Share capital and share-based compensation (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Disclosure of classes of share capital | June 30, 2019 June 30, 2018 Number Amount Number Amount $ $ Preferred variable voting shares (note 13 (a)) 100,000,000 — 100,000,000 — Common shares (note 13 (c)) Opening balance 134,293,890 305,167 134,061,548 304,320 Dividend reinvestment — — 108,180 419 Employee share purchase plan 100,390 226 43,496 199 PSU's settled 78,460 541 20,666 69 Options exercised 465,625 1,224 60,000 160 Ending balance 134,938,365 307,158 134,293,890 305,167 |
Disclosure of number and weighted average exercise prices of share options | As at June 30, 2019 and 2018, the Company had the following stock options outstanding: Weighted average Number of exercise price options per stock option Outstanding at June 30, 2017 8,819,525 6.93 Granted 1,920,000 5.69 Forfeited (2,431,050 ) 7.85 Expired (125,000 ) 7.13 Exercised (60,000 ) 1.81 Outstanding at June 30, 2018 8,123,475 6.41 Granted 5,069,016 1.66 Forfeited (1,946,250 ) 6.67 Expired (810,000 ) 3.81 Exercised (465,625 ) 1.79 Outstanding at June 30, 2019 9,970,616 4.38 Exercisable at June 30, 2019 3,205,050 7.56 |
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, 2019 and 2018 are as follows: 2019 2018 Weighted average grant date value $ 1.68 $ 1.67 Risk-free rate 2.19 % 1.45 % Expected option life 5 years 5 years Expected volatility 46 % 36 % Expected dividend yield — % 1.35 % |
Disclosure of range of exercise prices of outstanding share options | Information related to options outstanding at June 30, 2019 is presented below. Weighted Weighted Weighted Number average average Number average outstanding at remaining exercise outstanding at exercise Range of June 30, contractual life price June 30, price exercise prices 2019 years $ 2018 $ $1.50 - $3.49 5,034,016 6.33 1.66 655,625 2.03 $3.50 - $5.49 300,000 5.26 5.47 1,170,000 4.43 $5.50 - $7.49 2,672,100 4.18 6.43 4,027,100 6.57 $7.50 - $9.49 1,964,500 1.53 8.37 2,270,750 8.40 Total 9,970,616 4.78 4.38 8,123,475 6.41 |
Disclosure of number and weighted average remaining contractual life of outstanding share options | Information related to options outstanding at June 30, 2019 is presented below. Weighted Weighted Weighted Number average average Number average outstanding at remaining exercise outstanding at exercise Range of June 30, contractual life price June 30, price exercise prices 2019 years $ 2018 $ $1.50 - $3.49 5,034,016 6.33 1.66 655,625 2.03 $3.50 - $5.49 300,000 5.26 5.47 1,170,000 4.43 $5.50 - $7.49 2,672,100 4.18 6.43 4,027,100 6.57 $7.50 - $9.49 1,964,500 1.53 8.37 2,270,750 8.40 Total 9,970,616 4.78 4.38 8,123,475 6.41 |
Share-based compensation expense | During the year ended June 30, 2019 and 2018, share-based compensation expense was comprised of equity-settled and cash-settled share-based compensation expense as follows: June 30, June 30, $ $ Equity-settled expense 1,354 2,950 Cash-settled expense 472 — Total share-based compensation expense 1,826 2,950 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019 and June 30, 2018 are as follows: June 30, June 30, $ $ Broadcast licenses (17,967 ) (17,967 ) Tangible benefit obligation 1,644 2,171 Deferred revenue 372 — Foreign tax credits 4,238 2,324 Property and equipment 1,501 697 Share issuance costs and deferred financing fees (759 ) (1,603 ) Investment in film and television programs and acquired and library content (16,146 ) (27,568 ) Intangible assets 2,094 (9,633 ) Non-capital losses and other 8,617 33,900 Net deferred income tax liability (16,406 ) (17,679 ) |
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, 2018 - 31%) (25,391 ) (1,664 ) Income taxes increased (reduced) by: Share-based compensation 7 915 Non-taxable or non-deductible portion of capital gain/(loss) (4,768 ) (1,024 ) Tax rate differential 10,536 3,675 Non-controlling interest (5,946 ) (2,223 ) Tax rate change on opening balance — 2,120 Derecognition of deferred tax assets 21,743 — Other 113 (308 ) Provision for income taxes (3,706 ) 1,491 |
Non-controlling interest and _2
Non-controlling interest and partial disposal of interest in subsidiary (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure of interests in other entities [Abstract] | |
Noncoontrolling Interest In Subsidiary | The following tables summarizes the information of Peanuts Worldwide LLC (DE), before intercompany eliminations: June 30, June 30, $ $ Current assets 97,628 89,891 Non-current assets 426,810 440,842 Current liabilities (48,560 ) (43,041 ) — (2,654 ) Net assets 475,878 485,038 Revenue 149,625 137,918 Total expenses (108,667 ) (100,929 ) Net income and comprehensive income 40,958 36,989 |
Finance costs (Tables)
Finance costs (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Analysis of income and expense [abstract] | |
Summary of finance income and finance expense | Finance costs comprised of the following: June 30, June 30, $ $ Finance costs Interest income (2,036 ) (1,147 ) Interest expense on bank indebtedness 426 788 Accretion of tangible benefit obligation 420 539 Interest on long-term debt 37,239 42,661 Interest on completed and released productions 1,820 — Amortization of deferred financing fees 3,628 4,992 Write-down of term facility unamortized issue costs 7,641 — Accretion on Senior Unsecured Convertible Debentures 2,395 1,586 Interest on finance leases 703 690 52,236 50,109 Interest income is comprised of accretion on long-term amounts receivable and cash interest earned on bank deposits. |
Expenses by nature and employ_2
Expenses by nature and employee benefit expense (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, $ $ Direct production and new media costs 197,919 192,143 Expense of film and television programs 40,165 33,554 Expense of film and broadcast rights for broadcasting 14,919 18,546 Write-down of investment in film and television programs and acquired and library content 37,145 10,968 Development, integration and other 1,661 10,554 Impairment of intangible assets 67,726 1,059 Amortization of acquired and library content 14,431 15,916 Office and administrative 21,664 21,704 Finance costs, changes in fair value of embedded derivative, and foreign exchange 43,970 46,558 Investor relations and marketing 3,579 3,322 Professional and regulatory 6,401 7,804 Amortization of property and equipment and intangible assets 22,651 24,174 472,231 386,302 The following sets out the components of employee benefits expense: Salaries and employee benefits 47,651 50,421 Share-based compensation (note 13(h)) 1,826 2,950 49,477 53,371 521,708 439,673 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of contractual maturity analysis for financial liabilities | The Senior Secured Credit Facilities require that the Company comply with a Total Net Leverage Ratio covenant, as defined in the Senior Secured Credit Agreement: Period Ratio target Each fiscal quarter commencing September 30, 2018 < 6.75x Each fiscal quarter commencing September 30, 2019 < 6.50x Each fiscal quarter commencing September 30, 2020 < 5.75x Each fiscal quarter commencing September 30, 2021 to Maturity at December 29, 2023 < 5.50x Contractual maturity analysis for financial liabilities Less than 1 to 3 4 to 5 After 5 Total 1 year years years years $ $ $ $ $ Accounts payable and accrued liabilities 103,487 103,487 — — — Interim production financing 92,448 92,448 — — — Other long-term liabilities 3,283 — 3,283 — — Senior unsecured convertible debentures 183,198 8,225 16,450 16,450 142,073 Term facility 470,656 19,018 23,035 428,603 — Finance lease obligations 6,589 3,362 3,187 40 — 859,661 226,540 45,955 445,093 142,073 |
Disclosure of fair value measurement of liabilities | Financial assets and liabilities measured at fair value June 30, 2019 June 30, 2018 Fair value hierarchy Fair value (1) Fair value hierarchy Fair value (1) $ $ Embedded Derivatives (2) Level 2 (4,755 ) Level 2 (11,940 ) (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 value of embedded derivatives are estimated using valuation models. The carrying amount of all financial instruments presented in the consolidated balance sheet approximate their fair values, except for the Senior Unsecured Convertible Debentures as follows: June 30, 2019 June 30, 2018 Fair value hierarchy Fair value liability Carrying value Fair value hierarchy Fair value liability Carrying value $ $ $ $ Senior Unsecured Convertible Debentures (1) Level 1 103,600 116,096 Level 1 123,200 112,870 (1) The fair value of the convertible debentures is based on market quotes as these are actively traded on the open exchange. |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of operating lease by lessee | The future aggregate minimum payments are as follows: Operating Leases Capital Leases Total $ $ $ Less than 1 year 8,137 3,362 11,499 1 to 5 years 21,271 3,227 24,498 Beyond 5 years 11,065 — 11,065 Total 40,473 6,589 47,062 |
Earnings or loss per common s_2
Earnings or loss per common share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings per share [abstract] | |
Earnings or loss per share | Basic earnings or loss per share is calculated by dividing the net income (loss) attributable to shareholders of the Company by the weighted average number of common shares outstanding during the year. June 30, June 30, $ $ Net loss attributable to shareholders of the Company (101,494 ) (14,060 ) Weighted average number of common shares outstanding (in 000's) 134,828 134,506 Basic loss per share (0.75 ) (0.10 ) June 30, June 30, $ $ Net loss attributable to shareholders of the Company (101,494 ) (14,060 ) Weighted average number of common shares (in 000's) 134,828 134,506 Dilutive effect of share-based compensation (in 000's) — — Weighted average number of diluted shares outstanding 134,828 134,506 Diluted loss per share (0.75 ) (0.10 ) |
Capital disclosures (Tables)
Capital disclosures (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Disclosure of capital items | The Company’s capital at June 30, 2019 and June 30, 2018 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 534,068 772,920 Less: Cash (39,999 ) (46,550 ) Net debt 494,069 726,370 Total Shareholders’ Equity 499,978 400,792 994,047 1,127,162 |
Statement of cash flows - sup_2
Statement of cash flows - supplementary information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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, 2019 2018 $ $ Decrease (increase) in amounts receivable (13,642 ) 7,345 Decrease (increase) in prepaid expenses and other 1,430 1,512 Decrease (increase) in long-term amounts receivable 4,471 7,713 Increase (decrease) in accounts payable and accrued liabilities (30,743 ) (42,165 ) Increase (decrease) in deferred revenue 10,288 (5,558 ) Tangible benefit obligation payments (2,406 ) (859 ) (30,602 ) (32,012 ) During the year, the Company paid and received the following: June 30, June 30, 2019 2018 $ $ Interest paid 39,850 45,156 Interest received 416 342 Taxes paid 8,151 3,694 |
Schedule of net change film and television programs | Net change in film and television programs June 30, June 30, 2019 2018 $ $ Decrease (increase) in development 553 (434 ) Decrease (increase) in productions in progress 5,687 19,769 Decrease (increase) in productions completed and released (38,527 ) (52,854 ) Expense of film and television programs 40,165 33,554 Decrease (increase) in program and film rights - broadcasting (13,523 ) (14,110 ) Expense of film and broadcast rights for broadcasting 14,919 18,546 9,274 4,471 |
Disclosure of reconciliation of liabilities arising from financing activities | Reconciliation between the opening and closing balances on the consolidated balance sheet arising from financing activities Senior unsecured Term convertible Finance facility debentures leases Total $ $ $ $ Balance - June 30, 2018 623,066 124,747 8,757 756,570 Repayments (223,795 ) — (6,197 ) (229,992 ) Total financing cash flow activities (223,795 ) — (6,197 ) (229,992 ) Amortization of deferred financing costs 2,735 893 — 3,628 Write-down of term facility unamortized issue costs 7,641 — — 7,641 New finance leases — — 2,924 2,924 Change in fair value of embedded derivatives — (7,185 ) — (7,185 ) Accretion expense — 2,395 703 3,098 Unrealized foreign exchange gain (2,616 ) — — (2,616 ) — Total financing non-cash activities 7,760 (3,897 ) 3,627 7,490 — Balance - June 30, 2019 407,031 120,850 6,187 534,068 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 (6,651 ) — (313 ) (225,000 ) (5,338 ) (237,302 ) 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 — — — — 5,160 5,160 Change in fair value of embedded derivatives — — (11,251 ) — — (11,251 ) Accretion expense — — 1,586 — 690 2,276 Unrealized foreign exchange gain 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 |
Revenues and segmented inform_2
Revenues and segmented information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Operating Segments [Abstract] | |
Disclosure of operating segments | Year Ended June 30, 2019 CPLG DHX Television Content Consolidated $ $ $ $ Revenues 14,320 52,469 373,011 439,800 Direct production costs and expense of film and television produced, and selling, general and administrative 14,254 27,886 269,803 311,943 Segment profit 66 24,583 103,208 127,857 Corporate selling, general and administrative 22,181 Amortization of property and equipment and intangible assets 22,651 Finance costs 52,236 Foreign exchange gain (1,081 ) Change in fair value of embedded derivative (7,185 ) Amortization of acquired and library content 14,431 Write-down of investment in film and television programs and acquired and library content and impairment of intangible assets 104,871 Development, integration and other 1,661 Loss before income taxes (81,908 ) 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/(loss) (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 costs 50,109 Foreign exchange loss 7,700 Change in fair value of embedded derivative (11,251 ) Amortization of acquired and library content 15,916 Write-down of investment in film and television programs and acquired and library content 12,027 Development, integration and other 10,554 Loss before income taxes (5,257 ) |
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 22,239 19,793 Distribution revenue 128,793 124,093 Merchandising and licensing and other revenue 160,252 144,712 Producer and service fee revenue 61,727 77,770 373,011 366,368 DHX Television Subscriber revenue 47,425 51,102 Promotion and advertising revenue 5,044 3,912 52,469 55,014 CPLG Third party brand representation revenue 14,320 13,034 439,800 434,416 |
Significant accounting polici_4
Significant accounting policies, judgments and estimation uncertainty - Investment in film and television programs (Details) | Jun. 30, 2019 |
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 | 30.00% |
Significant accounting polici_5
Significant accounting policies, judgments and estimation uncertainty - Acquired and library content (Details) - Acquired and library content | 12 Months Ended |
Jun. 30, 2019 | |
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 | 10.00% |
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 | 20.00% |
Significant accounting polici_6
Significant accounting policies, judgments and estimation uncertainty - Development costs (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure of notes and other explanatory information [Abstract] | |
Years from date of initial recognition | 3 years |
Significant accounting polici_7
Significant accounting policies, judgments and estimation uncertainty - Property and equipment (Details) | 12 Months Ended |
Jun. 30, 2019 | |
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 polici_8
Significant accounting policies, judgments and estimation uncertainty - Intangible assets (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Customer relationships | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 10 years |
Customer representation agreements | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives or amortisation rates, intangible assets other than goodwill period | 5 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 polici_9
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 polic_10
Significant accounting policies, judgments and estimation uncertainty - New and amended standards (Details) - CAD ($) $ in Thousands | Jul. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 01, 2019 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Revenues | $ 439,800 | $ 434,416 | ||
Direct production costs and expense of film and television produced | 253,003 | 244,244 | ||
Accounts payable and accrued liabilities | 103,487 | $ 130,545 | ||
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 | $ 1,049 | |||
IFRS 15 | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Cumulative effect of new accounting principle in period of adoption | (5,342) | |||
Cumulative effect of new accounting principle, increase in defecit | 5,800 | |||
Cumulative effect of new accounting principle, increase to deferred revenue | 6,500 | |||
Cumulative effect of new accounting principle, decrease to deferred income taxes | 1,100 | |||
Cumulative effect of new accounting principle, decrease to accumulated other comprehensive loss | $ (500) | |||
Revenue on minimum guarantees | (3,693) | |||
Revenue on proprietary production shows | 1,544 | |||
Revenue on distribution licenses | 1,834 | |||
Direct production costs and expense of film and television produced | $ 926 | |||
IFRS 16 | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Lease liabilities | $ 34,000 | |||
Right-of-use assets | 27,000 | |||
Undiscounted operating lease payments to be received | 2,000 | |||
Accounts payable and other long-term liabilities | $ 5,000 | |||
Bottom of range | ||||
Disclosure of expected impact of initial application of new standards or interpretations [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 expected impact of initial application of new standards or interpretations [line items] | ||||
Declining balance method, amortization range rate, initial delivery | 100.00% | |||
Declining balance method, amortization range rate, after initial delivery | 30.00% | |||
IAS 18 | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Revenues | $ 439,485 | |||
Direct production costs and expense of film and television produced | $ 253,929 |
Compensation of key managemen_2
Compensation of key management (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party [Abstract] | ||
Salaries and employee benefits | $ 3,392 | $ 4,205 |
Share-based compensation | 1,838 | 2,146 |
Termination benefits | 732 | 2,899 |
Total compensation earned by key management | $ 5,962 | $ 9,250 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) € in Thousands, $ in Thousands | May 17, 2019CAD ($) | May 17, 2019EUR (€) | Sep. 15, 2017CAD ($)earn_out | Sep. 15, 2017USD ($)earn_out |
Acquired Company | ||||
Disclosure of detailed information about business combination [line items] | ||||
Percentage of voting equity interests acquired | 100.00% | 100.00% | ||
Consideration paid | $ 3,066 | € 2,039 | ||
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 | ||
Payable in relation to performance based target | $ | $ 0 | |||
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 |
Acquisitions - Purchase price a
Acquisitions - Purchase price allocation (Details) - CAD ($) $ in Thousands | Jun. 30, 2019 | May 17, 2019 | Sep. 15, 2017 |
Assets | |||
Property and equipment | $ 26 | ||
Acquired Company | |||
Assets | |||
Cash | $ 370 | ||
Amounts receivable | 468 | ||
Prepaid expenses and deposits | 32 | ||
Property and equipment | 26 | ||
Acquisitions (note 5) | 3,918 | ||
Total identifiable net assets at fair value | 4,814 | ||
Liabilities | |||
Accounts payable and accrued liabilities | 844 | ||
Deferred income tax liabilities | 904 | ||
Identifiable Liabilities Acquired Recognised As Of Acquisition Date | 1,748 | ||
Purchase consideration transferred | $ 3,066 | ||
Ellie Sparkles | |||
Assets | |||
Cash | $ 122 | ||
Acquisitions (note 5) | 8,406 | ||
Total identifiable net assets at fair value | 8,528 | ||
Liabilities | |||
Non-controlling interest | 4,178 | ||
Purchase consideration transferred | $ 4,350 |
Amounts receivable - Amounts re
Amounts receivable - Amounts receivable summary (Details) - CAD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Trade receivables | $ 173,347 | $ 153,461 |
Goods and services tax recoverable, net | 1,019 | 1,203 |
Federal and provincial film tax credits and other government assistance | 91,344 | 96,874 |
Short-term amounts receivable | 265,710 | 251,538 |
Long-term amounts receivable | 14,318 | 18,789 |
Total amounts receivable | 280,028 | 270,327 |
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 | 182,701 | 163,203 |
Less: Loss allowance on 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 | $ (9,354) | $ (9,742) |
Amounts receivable - Aging of t
Amounts receivable - Aging of trade receivables not impaired (Details) - CAD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Disclosure of provision matrix [line items] | ||
Trade receivables | $ 173,347 | $ 153,461 |
Less than 60 days | ||
Disclosure of provision matrix [line items] | ||
Trade receivables | 149,837 | 131,683 |
Between 60 and 90 days | ||
Disclosure of provision matrix [line items] | ||
Trade receivables | 7,016 | 5,863 |
Over 90 days | ||
Disclosure of provision matrix [line items] | ||
Trade receivables | $ 16,494 | $ 15,915 |
Amounts receivable - Provision
Amounts receivable - Provision for impairment of trade receivables (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jul. 01, 2018 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |||
Provision, opening balance | $ 9,742 | $ 4,772 | |
Loss allowance on trade receivables | 2,788 | 5,089 | |
Receivables written off in the year | (3,428) | (197) | |
Recoveries of receivables previously provided for | (586) | (12) | |
Foreign exchange | (211) | 90 | |
Provision, closing balance | $ 9,354 | $ 9,742 | |
IFRS 9 | |||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | |||
Impact of adoption of IFRS 9 | $ 1,049 |
Investment in film and televi_3
Investment in film and television programs - Schedule of investment in film and television programs (Details) - CAD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure Of Detailed Information About Inventory [Line Items] | |||
Development costs | $ 1,559 | $ 2,112 | |
Productions in progress | 11,890 | 17,577 | |
Productions completed and released | 109,564 | 136,543 | |
Program and film rights - broadcasting | 25,548 | 29,776 | |
Investment in film and television programs | 148,561 | 186,008 | $ 195,180 |
Cost | |||
Disclosure Of Detailed Information About Inventory [Line Items] | |||
Productions completed and released | 564,065 | 529,494 | |
Program and film rights - broadcasting | 148,288 | 134,765 | |
Accumulated amortization | |||
Disclosure Of Detailed Information About Inventory [Line Items] | |||
Productions completed and released | (417,206) | (377,041) | |
Program and film rights - broadcasting | (117,121) | (102,202) | |
Accumulated impairment | |||
Disclosure Of Detailed Information About Inventory [Line Items] | |||
Productions completed and released | (37,295) | (15,910) | |
Accumulated Write Down Of Program And Film Rights [Member] | |||
Disclosure Of Detailed Information About Inventory [Line Items] | |||
Program and film rights - broadcasting | $ (5,619) | $ (2,787) |
Investment in film and televi_4
Investment in film and television programs - Continuity of investment in film and television programs (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Inventories [Abstract] | ||
Net opening investment in film and television programs | $ 186,008 | $ 195,180 |
Increase/(decrease) in development costs | (553) | 434 |
Cost of productions (completed and released and productions in progress), net of assistance | 32,840 | 33,088 |
Expense of investment in film and television programs | (40,165) | (33,554) |
Write-down of investment in film and television programs | (21,385) | (4,779) |
Increase of program and film rights - broadcasting | 13,523 | 14,110 |
Expense of program and film rights - broadcasting | (14,919) | (18,546) |
Write-down of program and film rights - broadcasting | (2,832) | (2,787) |
Foreign exchange | (3,956) | 2,862 |
Net ending investment in film and television programs | $ 148,561 | $ 186,008 |
Investment in film and televi_5
Investment in film and television programs - Narrative (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Inventories [Abstract] | ||
Interest costs capitalised | $ 665 | $ 1,384 |
Write-down of investment in film and television programs | $ 24,217 | $ 7,566 |
Acquired and library content (D
Acquired and library content (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Additions through business combination | $ 0 | $ 8,406 |
Write-down of acquired and library content | (12,928) | (3,402) |
Acquired and library content | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Opening net book value | 147,088 | 155,940 |
Write-down of acquired and library content | (12,928) | (3,402) |
Amortization | (14,431) | (15,916) |
Foreign exchange | (1,482) | 2,060 |
Net book value | $ 118,247 | $ 147,088 |
Acquired and library content Na
Acquired and library content Narrative (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of detailed information about intangible assets [line items] | ||
Write-down of acquired and library content | $ 12,928 | $ 3,402 |
Acquired and library content | ||
Disclosure of detailed information about intangible assets [line items] | ||
Write-down of acquired and library content | $ 12,928 | $ 3,402 |
Property and equipment (Details
Property and equipment (Details) - CAD ($) $ in Thousands | May 13, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | $ 30,436 | $ 30,996 | |
Additions | 4,171 | 8,276 | |
Property, plant and equipment recognised as of acquisition date | 26 | ||
Disposals, net | (7,006) | (104) | |
Amortization | (8,331) | (8,828) | |
Foreign exchange differences | 56 | 96 | |
Net book value | 19,352 | 30,436 | |
Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 66,569 | ||
Net book value | 63,491 | 66,569 | |
Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | (36,517) | ||
Net book value | (44,579) | (36,517) | |
Foreign exchange | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 384 | ||
Net book value | 440 | 384 | |
Land | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 4,276 | 4,276 | |
Additions | 0 | 0 | |
Property, plant and equipment recognised as of acquisition date | 0 | ||
Disposals, net | $ 4,276 | (4,276) | 0 |
Amortization | 0 | 0 | |
Foreign exchange differences | 0 | 0 | |
Net book value | 0 | 4,276 | |
Land | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 4,276 | ||
Net book value | 0 | 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 | |||
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 | 1,933 | 1,938 | |
Additions | 0 | 73 | |
Property, plant and equipment recognised as of acquisition date | 0 | ||
Disposals, net | 1,874 | (1,874) | 0 |
Amortization | (59) | (78) | |
Foreign exchange differences | 0 | 0 | |
Net book value | 0 | 1,933 | |
Building | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 2,143 | ||
Net book value | 0 | 2,143 | |
Building | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | (210) | ||
Net book value | 0 | (210) | |
Building | Foreign exchange | |||
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 | 1,723 | 2,111 | |
Additions | 52 | 349 | |
Property, plant and equipment recognised as of acquisition date | 0 | ||
Disposals, net | (148) | 0 | |
Amortization | (381) | (738) | |
Foreign exchange differences | 0 | 1 | |
Net book value | 1,246 | 1,723 | |
Furniture, fixtures and equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 6,630 | ||
Net book value | 6,534 | 6,630 | |
Furniture, fixtures and equipment | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | (4,916) | ||
Net book value | (5,297) | (4,916) | |
Furniture, fixtures and equipment | Foreign exchange | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 9 | ||
Net book value | 9 | 9 | |
Computer equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 2,114 | 2,325 | |
Additions | 877 | 852 | |
Property, plant and equipment recognised as of acquisition date | 26 | ||
Disposals, net | (699) | 0 | |
Amortization | (965) | (1,147) | |
Foreign exchange differences | 56 | 84 | |
Net book value | 1,409 | 2,114 | |
Computer equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 13,388 | ||
Net book value | 13,592 | 13,388 | |
Computer equipment | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | (11,566) | ||
Net book value | (12,531) | (11,566) | |
Computer equipment | Foreign exchange | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 292 | ||
Net book value | 348 | 292 | |
Post-production equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 9,436 | 8,288 | |
Additions | 2,190 | 6,055 | |
Property, plant and equipment recognised as of acquisition date | 0 | ||
Disposals, net | 0 | 0 | |
Amortization | (4,527) | (4,907) | |
Foreign exchange differences | 0 | 0 | |
Net book value | 7,099 | 9,436 | |
Post-production equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 20,021 | ||
Net book value | 22,211 | 20,021 | |
Post-production equipment | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | (10,585) | ||
Net book value | (15,112) | (10,585) | |
Post-production equipment | Foreign exchange | |||
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 | 807 | 896 | |
Additions | 1,050 | 331 | |
Property, plant and equipment recognised as of acquisition date | 0 | ||
Disposals, net | 0 | 0 | |
Amortization | (933) | (429) | |
Foreign exchange differences | 0 | 9 | |
Net book value | 924 | 807 | |
Computer software | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 5,227 | ||
Net book value | 6,277 | 5,227 | |
Computer software | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | (4,485) | ||
Net book value | (5,418) | (4,485) | |
Computer software | Foreign exchange | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 65 | ||
Net book value | 65 | 65 | |
Leasehold improvements | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 10,147 | 11,162 | |
Additions | 2 | 616 | |
Property, plant and equipment recognised as of acquisition date | 0 | ||
Disposals, net | (9) | (104) | |
Amortization | (1,466) | (1,529) | |
Foreign exchange differences | 0 | 2 | |
Net book value | 8,674 | 10,147 | |
Leasehold improvements | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 14,884 | ||
Net book value | 14,877 | 14,884 | |
Leasehold improvements | Accumulated amortization | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | (4,755) | ||
Net book value | (6,221) | (4,755) | |
Leasehold improvements | Foreign exchange | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 18 | ||
Net book value | 18 | 18 | |
Land and buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Disposals, net | 5,084 | ||
Proceeds from sales of land and buildings | (12,000) | ||
Disposals of property, net of accumulated amortization | $ (444) | ||
Property, plant and equipment subject to operating leases | Leased Post-production Equipment [Member] | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 8,017 | ||
Net book value | 6,172 | 8,017 | |
Property, plant and equipment subject to operating leases | Computer software | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Opening net book value | 740 | ||
Net book value | $ 655 | $ 740 |
Intangible assets (Details)
Intangible assets (Details) - CAD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Acquisitions (note 5) | $ 0 | $ 8,406 | |
Impairment | (67,726) | (1,059) | |
Intangible Assets | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 546,997 | 555,408 | |
Additions | 341 | 1,074 | |
Acquisitions (note 5) | 3,918 | ||
Amortization | 14,320 | (15,346) | |
Impairment | (67,726) | (1,059) | |
Foreign exchange differences | (3,378) | 6,920 | |
Net book value | $ 465,832 | 465,832 | 546,997 |
Intangible Assets | Cost | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 599,630 | ||
Net book value | 536,163 | 536,163 | 599,630 |
Intangible Assets | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | (55,834) | ||
Net book value | (70,154) | (70,154) | (55,834) |
Intangible Assets | Foreign exchange | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 3,201 | ||
Net book value | (177) | (177) | 3,201 |
Broadcast licenses | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 67,800 | 67,800 | |
Additions | 0 | 0 | |
Acquisitions (note 5) | 0 | ||
Amortization | 0 | 0 | |
Impairment | 0 | 0 | |
Foreign exchange differences | 0 | 0 | |
Net book value | 67,800 | 67,800 | 67,800 |
Broadcast licenses | Cost | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 67,800 | ||
Net book value | 67,800 | 67,800 | 67,800 |
Broadcast licenses | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 0 | ||
Net book value | 0 | 0 | 0 |
Broadcast licenses | Foreign exchange | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 0 | ||
Net book value | 0 | 0 | 0 |
Broadcaster relationships | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 232 | 531 | |
Additions | 0 | 0 | |
Acquisitions (note 5) | 0 | ||
Amortization | 21 | (299) | |
Impairment | 0 | 0 | |
Foreign exchange differences | 0 | 0 | |
Net book value | 211 | 211 | 232 |
Broadcaster relationships | Cost | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 7,362 | ||
Net book value | 7,362 | 7,362 | 7,362 |
Broadcaster relationships | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | (7,174) | ||
Net book value | (7,195) | (7,195) | (7,174) |
Broadcaster relationships | Foreign exchange | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 44 | ||
Net book value | 44 | 44 | 44 |
Customer relationships and representation agreements | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 15,977 | 18,680 | |
Additions | 0 | 0 | |
Acquisitions (note 5) | 3,918 | ||
Amortization | 2,887 | (2,792) | |
Impairment | 0 | 0 | |
Foreign exchange differences | (407) | 89 | |
Net book value | 16,601 | 16,601 | 15,977 |
Customer relationships and representation agreements | Cost | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 27,920 | ||
Net book value | 31,838 | 31,838 | 27,920 |
Customer relationships and representation agreements | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | (12,472) | ||
Net book value | (15,359) | (15,359) | (12,472) |
Customer relationships and representation agreements | Foreign exchange | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 529 | ||
Net book value | 122 | 122 | 529 |
Brands | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 440,714 | 444,581 | |
Additions | 260 | 0 | |
Acquisitions (note 5) | 0 | ||
Amortization | 8,100 | (8,899) | |
Impairment | (63,072) | (67,726) | (1,059) |
Foreign exchange differences | (2,055) | 6,091 | |
Net book value | 363,093 | 363,093 | 440,714 |
Indefinite life intangible assets | 348,246 | 348,246 | 350,419 |
Brands | Cost | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 457,201 | ||
Net book value | 389,735 | 389,735 | 457,201 |
Brands | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | (22,817) | ||
Net book value | (30,917) | (30,917) | (22,817) |
Brands | Foreign exchange | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 6,330 | ||
Net book value | 4,275 | 4,275 | 6,330 |
Production and distribution rights | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 21,169 | 22,953 | |
Additions | 0 | 0 | |
Acquisitions (note 5) | 0 | ||
Amortization | 2,354 | (2,458) | |
Impairment | 0 | 0 | |
Foreign exchange differences | (894) | 674 | |
Net book value | 17,921 | 17,921 | 21,169 |
Production and distribution rights | Cost | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 30,946 | ||
Net book value | 30,946 | 30,946 | 30,946 |
Production and distribution rights | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | (6,009) | ||
Net book value | (8,363) | (8,363) | (6,009) |
Production and distribution rights | Foreign exchange | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | (3,768) | ||
Net book value | (4,662) | (4,662) | (3,768) |
Other | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 1,105 | 863 | |
Additions | 81 | 1,074 | |
Acquisitions (note 5) | 0 | ||
Amortization | (958) | (898) | |
Impairment | 0 | 0 | |
Foreign exchange differences | (22) | 66 | |
Net book value | 206 | 206 | 1,105 |
Other | Cost | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 8,401 | ||
Net book value | 8,482 | 8,482 | 8,401 |
Other | Accumulated amortization | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | (7,362) | ||
Net book value | (8,320) | (8,320) | (7,362) |
Other | Foreign exchange | |||
Reconciliation of changes in intangible assets other than goodwill [abstract] | |||
Opening net book value | 66 | ||
Net book value | $ 44 | $ 44 | $ 66 |
Intangible assets Narrative (De
Intangible assets Narrative (Details) - CAD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets and goodwill | $ 67,726 | $ 1,059 | |
Brands | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss recognised in profit or loss, intangible assets and goodwill | $ 63,072 | $ 67,726 | $ 1,059 |
Pre-tax discount rate | 13.80% | 13.80% | |
Terminal growth rate | 2.00% | 2.00% |
Goodwill - Continuity of goodwi
Goodwill - Continuity of goodwill and narrative (Details) $ in Thousands | Jul. 23, 2018 | Jun. 30, 2019CAD ($)cash_generating_unit | Jun. 30, 2018CAD ($) |
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 balance | $ 240,806 | $ 240,534 | |
Exchange differences | (1,052) | 272 | |
Ending net book value | 239,754 | 240,806 | |
Content Business | Goodwill | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Opening balance | 184,314 | ||
Ending net book value | 183,405 | 184,314 | |
Peanuts | Goodwill | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Opening balance | 23,268 | ||
Ending net book value | 23,125 | 23,268 | |
DHX Television | Goodwill | |||
Reconciliation of changes in intangible assets and goodwill [abstract] | |||
Opening balance | 33,224 | ||
Ending net book value | $ 33,224 | $ 33,224 | |
Peanuts | Sony Music Entertainment Japan Inc. (SMEJ) | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Percentage equity interests sold | 49.00% |
Goodwill - Value-In-Use assumpt
Goodwill - Value-In-Use assumptions (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2019CAD ($) | |
Disclosure of information for cash-generating units [line items] | |
Cash flow projection period | 2 years |
Extended cash flow projection period | 3 years |
Total forecast period | 5 years |
Basis point increase to pre-tax discount rate | 0.40% |
Content Business | |
Disclosure of information for cash-generating units [line items] | |
Perpetual growth rate | 2.00% |
Pre-tax discount rate | 13.80% |
Recoverable amount of asset or cash-generating unit | $ 24,000 |
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 pr
- Bank indebtedness, interim production financing, long-term debt and obligations under finance leases (Details) - CAD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 626,516 | $ 866,603 |
Amount due within 12 months | (103,455) | (120,557) |
Amount due beyond 12 months | 523,061 | 746,046 |
Bank indebtedness | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 0 | 16,350 |
Interim production financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 92,448 | 93,683 |
Long-term debt and obligations under finance leases | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 534,068 | 756,570 |
Amount due within 12 months | 11,007 | 10,524 |
Amount due beyond 12 months | $ 523,061 | $ 746,046 |
Bank indebtedness, interim pr_3
Bank indebtedness, interim production financing, long-term debt and obligations under finance leases - Narrative (Details) | Jul. 23, 2018 | Jun. 30, 2019CAD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2018CAD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019CAD ($)$ / shares | Jun. 30, 2018CAD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||||
Current borrowings | $ 0 | $ 0 | $ 16,350,000 | ||||||
Borrowings | $ 626,516,000 | 626,516,000 | 866,603,000 | ||||||
Repayments of borrowings | $ 229,992,000 | 236,763,000 | |||||||
Debt instrument, leverage ratio | 592.00% | 592.00% | 592.00% | ||||||
Fair value liability | $ 818,977,000 | $ 818,977,000 | 1,076,000,000 | ||||||
Revolving Credit Facility | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Line of credit maximum borrowing capacity | 39,261 | 39,261 | $ 30,000,000 | ||||||
Current borrowings | 0 | 0 | 16,350,000 | ||||||
Borrowings | $ 0 | $ 0 | 16,350,000 | ||||||
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] | |||||||||
Production financing, licensing contracts receivable and film tax credits receivable | $ 109,573 | $ 109,573 | 115,639 | ||||||
Borrowings | $ 92,448,000 | $ 92,448,000 | $ 93,683,000 | ||||||
Interim Production Financing | Bottom of range | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, adjustment to interest rate basis | 0.50% | 0.50% | 0.50% | ||||||
Interim Production Financing | Top of range | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, adjustment to interest rate basis | 1.00% | 1.00% | 1.00% | ||||||
Interim Production Financing | LIBOR | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, adjustment to interest rate basis | 3.25% | 3.25% | 3.25% | ||||||
Interim Production Financing | Floating interest rate | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, interest rate | 3.95% | 3.95% | 3.19% | 3.95% | 3.19% | ||||
Interim Production Financing | Base Rate | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, interest rate | 5.75% | 5.75% | 5.75% | ||||||
Interim Production Financing | Fixed interest rate | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, adjustment to interest rate basis | 0.50% | 0.50% | 0.50% | ||||||
Term Facility | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | $ 407,031,000 | $ 407,031,000 | $ 623,066,000 | ||||||
Term Facility | LIBOR | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, adjustment to interest rate basis | 3.75% | 3.75% | 3.75% | ||||||
Term Facility | Base Rate | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, adjustment to interest rate basis | 2.75% | 2.75% | 2.75% | ||||||
Senior Unsecured Convertible Debentures | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings, interest rate | 5.875% | 5.875% | 5.875% | ||||||
Borrowings | $ 120,850,000 | $ 120,850,000 | 124,747,000 | ||||||
Repayments of borrowings | 11,552,000 | $ 8,700,000 | $ 212,243,000 | $ 161,328,000 | |||||
Debt extinguishment cost | (321,000) | $ (7,320) | |||||||
Repayments on borrowings on a quarterly basis | 1,620,000 | $ 1,238,000 | |||||||
Repayments of borrowings on a quarterly basis, percent | 0.25% | ||||||||
Notional amount | $ 140,000,000 | $ 140,000,000 | 140,000,000 | ||||||
Debt instrument, convertible, conversion price (in CAD per share) | $ / shares | $ 8 | ||||||||
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% | ||||||
Excess cash flow payments due | $ 7,501,000 | $ 7,501,000 | |||||||
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 | ||||||
12 month period ending September 30, 2018 | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Debt Instrument, covenant, leverage ratio, maximum | 6.75 | 6.75 | 6.75 | ||||||
12 month period ending September 30, 2019 | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Debt Instrument, covenant, leverage ratio, maximum | 6.50 | 6.50 | 6.50 | ||||||
12 month period ending September 30, 2020 | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Debt Instrument, covenant, leverage ratio, maximum | 5.75 | 5.75 | 5.75 | ||||||
12 month period ending September 30, 2021 | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Debt Instrument, covenant, leverage ratio, maximum | 5.50 | 5.50 | 5.50 | ||||||
Peanuts | Senior Unsecured Convertible Debentures | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Percentage equity interests sold | 49.00% | ||||||||
Percentage of voting equity interests acquired | 80.00% | ||||||||
Sony Music Entertainment Japan Inc. (SMEJ) | Peanuts | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Percentage equity interests sold | 49.00% | ||||||||
Percentage of voting equity interests acquired | 49.00% | ||||||||
Principal balance | Term Facility | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | $ 418,887,000 | $ 418,887,000 | 645,298,000 | $ 320,022,000 | $ 490,050,000 | ||||
Unamortized issue costs | Term Facility | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | 11,856,000 | 11,856,000 | 22,232,000 | ||||||
Unamortized issue costs | Senior Unsecured Convertible Debentures | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Borrowings | 4,695,000 | 4,695,000 | 5,588,000 | ||||||
Embedded derivatives | Level 2 | Fair value | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Fair value liability | $ 4,755,000 | $ 4,755,000 | $ 11,940,000 |
Bank indebtedness, interim pr_4
Bank indebtedness, interim production financing, long-term debt and obligations under finance leases - Long-term debt and obligations under finance leases (Details) - CAD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 626,516 | $ 866,603 |
Fair value liability | 818,977 | 1,076,000 |
Less: Current portion | (103,455) | (120,557) |
Non-current portion of non-current borrowings | 523,061 | 746,046 |
Long-Term Debt and Obligations under Finance Leases | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 534,068 | 756,570 |
Less: Current portion | 11,007 | 10,524 |
Non-current portion of non-current borrowings | 523,061 | 746,046 |
Term Facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 407,031 | 623,066 |
Senior Unsecured Convertible Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 120,850 | 124,747 |
Borrowings, interest rate | 5.875% | |
Finance Lease Liabilities | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 6,187 | 8,757 |
Finance Lease Liabilities | Bottom of range | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate | 4.00% | |
Finance Lease Liabilities | Top of range | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, interest rate | 9.80% | |
Unamortized issue costs | Term Facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 11,856 | 22,232 |
Unamortized issue costs | Senior Unsecured Convertible Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 4,695 | 5,588 |
Level 2 | Recurring fair value measurement | Embedded derivatives | ||
Disclosure of detailed information about borrowings [line items] | ||
Fair value liability | $ 4,755 | $ 11,940 |
Share capital and share-based_3
Share capital and share-based compensation - Preferred variable voting shares and common shares narrative (Details) | Oct. 09, 2014class_of_sharevote | Jun. 30, 2019CAD ($)shares$ / shares | Jun. 30, 2018CAD ($)shares$ / shares | Jun. 30, 2017shares |
Disclosure of classes of share capital [line items] | ||||
Number of classes of shares | class_of_share | 3 | |||
Weighted average exercise price of share options exercised (in CAD per share) | $ | $ 1.79 | $ 1.81 | ||
Options exercised (in shares) | 465,625 | 60,000 | ||
Preference Variable Voting Shares | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares authorised (in shares) | 100,000,000 | |||
Number of shares outstanding (in shares) | 100,000,000 | 100,000,000 | ||
Par value per share (in CAD per share) | $ / shares | $ 0.00 | |||
Common shares | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding (in shares) | 134,938,365 | 134,293,890 | 134,061,548 | |
Dividend reinvestment (in shares) | 0 | 108,180 | ||
Options exercised (in shares) | 465,625 | 60,000 | ||
Employee share purchase plan (in shares) | 100,390 | 43,496 | ||
Issued capital | ||||
Disclosure of classes of share capital [line items] | ||||
Dividend reinvestment (in shares) | 108,180 | |||
Dividend reinvestment (in CAD per share) | $ / shares | $ 3.87 | |||
Stock repurchased and cancelled (in shares) | 100,390 | 43,496 | ||
Stock repurchased and cancelled (in CAD per share) | $ / shares | $ 2.25 | $ 4.58 | ||
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) | 32,198,166 | 99,510,508 | ||
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) | 102,740,199 | 34,783,382 | ||
Issued capital | Non-Voting Shares | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding (in shares) | 0 | 0 | ||
Performance Share Units (PSU) | ||||
Disclosure of classes of share capital [line items] | ||||
PSUs settled (in shares) | 70,229 | |||
Performance Share Units (PSU) | Common shares | ||||
Disclosure of classes of share capital [line items] | ||||
PSUs settled (in shares) | 78,460 | 20,666 | ||
Weighted average exercise price of share options exercised (in CAD per share) | $ | $ 6.89 | $ 3.34 |
Share capital and share-based_4
Share capital and share-based compensation - Issued and outstanding (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of number of shares outstanding [abstract] | ||
Options exercised (in shares) | 465,625 | 60,000 |
Beginning balance | $ 400,792 | $ 415,853 |
Ending balance | $ 499,978 | $ 400,792 |
Preference Variable Voting Shares | ||
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 |
Common shares | ||
Reconciliation of number of shares outstanding [abstract] | ||
Number of shares outstanding at beginning of period (in shares) | 134,293,890 | 134,061,548 |
Dividend reinvestment (in shares) | 0 | 108,180 |
Employee share purchase plan (in shares) | 100,390 | 43,496 |
Options exercised (in shares) | 465,625 | 60,000 |
Number of shares outstanding at end of period (in shares) | 134,938,365 | 134,293,890 |
Beginning balance | $ 305,167 | $ 304,320 |
Dividend reinvestment | 0 | 419 |
Employee share purchase plan | 226 | 199 |
Stock options exercised | 1,224 | 160 |
Ending balance | $ 307,158 | $ 305,167 |
Performance Share Units (PSU) | ||
Reconciliation of number of shares outstanding [abstract] | ||
PSUs settled (in shares) | 70,229 | |
Performance Share Units (PSU) | Common shares | ||
Reconciliation of number of shares outstanding [abstract] | ||
PSUs settled (in shares) | 78,460 | 20,666 |
PSU's settled | $ 541 | $ 69 |
Share capital and share-based_5
Share capital and share-based compensation - Stock options rollforward (Details) | Jun. 10, 2019CAD ($)shares | May 17, 2019CAD ($)shares | Feb. 15, 2019CAD ($)shares | Nov. 16, 2018CAD ($)shares | Sep. 27, 2018CAD ($)shares | Jun. 30, 2019CAD ($)shares | Jun. 30, 2018CAD ($)shares |
Share Capital, Reserves And Other Equity Interest [Abstract] | |||||||
Outstanding at beginning of period (in shares) | shares | 8,123,475 | 8,819,525 | |||||
Granted (in shares) | shares | 150,000 | 300,000 | 300,000 | 272,516 | 4,046,500 | 5,069,016 | 1,920,000 |
Forfeited (in shares) | shares | (1,946,250) | (2,431,050) | |||||
Cancelled (in shares) | shares | (810,000) | (125,000) | |||||
Exercised (in shares) | shares | (465,625) | (60,000) | |||||
Outstanding at end of period (in shares) | shares | 9,970,616 | 8,123,475 | |||||
Exercisable (in shares) | shares | 3,205,050 | ||||||
Weighted average exercise price of stock option at beginning of period (in CAD per share) | $ | $ 6.41 | $ 6.93 | |||||
Weighted average exercise price of share options granted (in CAD per share) | $ | $ 2.04 | $ 1.80 | $ 2.26 | $ 2.81 | $ 1.51 | 1.66 | 5.69 |
Weighted average exercise price of share options forfeited (in CAD per share) | $ | 6.67 | 7.85 | |||||
Weighted average exercise price of share options cancelled (in CAD per share) | $ | 3.81 | 7.13 | |||||
Weighted average exercise price of share options exercised (in CAD per share) | $ | 1.79 | 1.81 | |||||
Weighted average exercise price of stock option at end of period (in CAD per share) | $ | 4.38 | $ 6.41 | |||||
Weighted average exercise price of share options exercisable (in CAD per share) | $ | $ 7.56 |
Share capital and share-based_6
Share capital and share-based compensation - Stock options narrative (Details) | Jun. 10, 2019CAD ($)shares | May 17, 2019CAD ($)shares | Feb. 15, 2019CAD ($)shares | Nov. 16, 2018CAD ($)shares | Sep. 27, 2018CAD ($)shares | Jun. 30, 2019CAD ($)shares | Jun. 30, 2018CAD ($)shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Percentage of total number of outstanding common shares authorized | 8.50% | 8.50% | |||||
Shares authorized (in shares) | shares | 11,469,761 | 11,414,980 | |||||
Granted (in shares) | shares | 150,000 | 300,000 | 300,000 | 272,516 | 4,046,500 | 5,069,016 | 1,920,000 |
Weighted average exercise price of share options granted (in CAD per share) | $ | $ 2.04 | $ 1.80 | $ 2.26 | $ 2.81 | $ 1.51 | $ 1.66 | $ 5.69 |
Award vesting period | 4 years | 10 months | 4 years | 4 years | |||
Expiration period | 7 years | 7 years | 7 years | ||||
Share-based compensation | $ | 1,826,000 | 2,950,000 | |||||
Share Based Compensation Award Tranche One | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Granted (in shares) | shares | 3,046,500 | ||||||
Award vesting period | 4 years | ||||||
Expiration period | 7 years | ||||||
Share Based Compensation Award Tranche Two | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Granted (in shares) | shares | 1,000,000 | ||||||
Weighted average exercise price of share options granted (in CAD per share) | $ | $ 10 | ||||||
Expiration period | 7 years | ||||||
Stock Options | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Share-based compensation | $ | $ 1,277,000 | $ 2,159,000 |
Share capital and share-based_7
Share capital and share-based compensation - Weighted average grant date value of stock options and assumptions (Details) | 12 Months Ended | |
Jun. 30, 2019CAD ($)year | Jun. 30, 2018CAD ($)year | |
Share Capital, Reserves And Other Equity Interest [Abstract] | ||
Weighted average fair value at measurement date, share options granted | $ | $ 1.68 | $ 1.67 |
Risk free interest rate, share options granted | 2.19% | 1.45% |
Expected option life, in years | year | 5 | 5 |
Expected volatility, share options granted | 46.00% | 36.00% |
Expected dividend as percentage, share options granted | 0.00% | 1.35% |
Share capital and share-based_8
Share capital and share-based compensation - Information related to stock option (Details) | Jun. 30, 2019CAD ($)sharesyear | Jun. 30, 2018CAD ($)shares | Jun. 30, 2017CAD ($)shares |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding (in shares) | shares | 9,970,616 | 8,123,475 | 8,819,525 |
Weighted average remaining contractual life (in years) | year | 4.78 | ||
Weighted average exercise price (in CAD per share) | $ 4.38 | $ 6.41 | $ 6.93 |
$1.50 - $3.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding (in shares) | shares | 5,034,016 | 655,625 | |
Weighted average remaining contractual life (in years) | year | 6.33 | ||
Weighted average exercise price (in CAD per share) | $ 1.66 | $ 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 | 300,000 | 1,170,000 | |
Weighted average remaining contractual life (in years) | year | 5.26 | ||
Weighted average exercise price (in CAD per share) | $ 5.47 | $ 4.43 | |
$5.50 - $7.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding (in shares) | shares | 2,672,100 | 4,027,100 | |
Weighted average remaining contractual life (in years) | year | 4.18 | ||
Weighted average exercise price (in CAD per share) | $ 6.43 | $ 6.57 | |
$7.50 - $9.49 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of share options outstanding (in shares) | shares | 1,964,500 | 2,270,750 | |
Weighted average remaining contractual life (in years) | year | 1.53 | ||
Weighted average exercise price (in CAD per share) | $ 8.37 | $ 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 share-based_9
Share capital and share-based compensation - Share capital and contributed surplus narrative (Details) | Jun. 10, 2019 | May 17, 2019 | Feb. 15, 2019 | Nov. 16, 2018 | Jun. 30, 2019CAD ($)shares | Jun. 30, 2018CAD ($)sharesaward |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Award vesting period | 4 years | 10 months | 4 years | 4 years | ||
Compensation expense | $ 1,826,000 | $ 2,950,000 | ||||
PSUs outstanding (in shares) | shares | 338,665 | 0 | ||||
Total share-based compensation expense | $ 1,826 | $ 2,950 | ||||
Stock Options | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Compensation expense | $ 1,277,000 | $ 2,159,000 | ||||
Performance Share Units (PSU) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of awards | award | 2 | |||||
Award vesting period | 3 years | |||||
Granted (in shares) | shares | 55,198 | 207,270 | ||||
Compensation expense | $ 43,000 | $ 791,000 | ||||
PSUs outstanding (in shares) | shares | 148,689 | |||||
PSUs settled (in shares) | shares | 70,229 | |||||
PSUs forfeited (in shares) | shares | 3,383 | |||||
Deferred Share Units (DSU) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Granted (in shares) | shares | 128,587 | |||||
Compensation expense | $ 244,000 | 0 | ||||
Long Term Incentive Plan (LTIP) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Compensation expense | 228,000 | 0 | ||||
Equity-settled expense | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Total share-based compensation expense | 1,354 | 2,950 | ||||
Cash-settled expense | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Total share-based compensation expense | $ 472 | $ 0 |
Government financing and assi_2
Government financing and assistance (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Adjustments for decrease (increase) in inventories | $ 9,274 | $ 4,471 |
Income from government grants | 47,164 | 63,464 |
Canadian Media Fund | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Adjustments for decrease (increase) in inventories | 4,549 | 1,667 |
Government customers, production activities | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Adjustments for decrease (increase) in inventories | $ 17,558 | $ 15,618 |
Customer Concentration Risk | Government customers | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Concentration risk, percentage | 35.00% | 36.00% |
Income taxes - Components of de
Income taxes - Components of deferred tax liability (Details) - CAD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | $ (16,406) | $ (17,679) |
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 | (1,644) | 2,171 |
Deferred revenue | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | (372) | 0 |
Foreign tax credits | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | (4,238) | 2,324 |
Property and equipment | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | (1,501) | 697 |
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 | 759 | (1,603) |
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 | 16,146 | (27,568) |
Intangible assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | (2,094) | (9,633) |
Non-capital losses and other | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net deferred income tax liability | $ (8,617) | $ 33,900 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - CAD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure Of Income Taxes [Line Items] | ||
Deferred tax expense, related to derocgnition of deferred tax asset | $ 21,743,000 | $ 0 |
Tax effect from change in tax rate | 0 | 2,120,000 |
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 81,879,000 | 72,648,000 |
Foreign Tax Authority | ||
Disclosure Of Income Taxes [Line Items] | ||
Tax effect from change in tax rate | $ 21,000,000 | $ 0 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of income taxes (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
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%) | $ (25,391) | $ (1,664) |
Share-based compensation | 7 | 915 |
Non-taxable portion of capital gain | (4,768) | (1,024) |
Tax rate differential | 10,536 | 3,675 |
Non-controlling interest | (5,946) | (2,223) |
Tax rate change on opening balance | 0 | 2,120 |
Derecognition of Deferred Tax Assets | 21,743 | 0 |
Other | 113 | (308) |
(Recovery of) provision for income taxes | $ (3,706) | $ 1,491 |
Non-controlling interest and _3
Non-controlling interest and partial disposal of interest in subsidiary (Details) - CAD ($) $ in Thousands | Jul. 24, 2018 | Jul. 23, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Disclosure of subsidiaries [line items] | ||||
Net proceeds from changes in ownership of subsidiary | $ 218,088 | $ 0 | ||
Non-controlling interest (note 16) | $ 85,714 | |||
Peanuts | ||||
Disclosure of subsidiaries [line items] | ||||
Gross proceeds from change sin ownership of subsidiary | $ 234,610 | |||
Net proceeds from changes in ownership of subsidiary | 214,112 | |||
Transaction costs | 8,720 | |||
Taxes related to sale of interest in subsidiary | 11,778 | |||
Increase to noncontrolling interest | $ 174,596 | |||
Proportion of ownership interest in subsidiary | 41.00% | 80.00% | ||
Proportion of voting rights held by non-controlling interests | 20.00% | |||
Non-controlling interest (note 16) | $ 256,945 | |||
Sony Music Entertainment Japan Inc. (SMEJ) | Peanuts | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of voting equity interests acquired | 49.00% | |||
Proportion of voting rights held by non-controlling interests | 39.00% |
Non-controlling interest and _4
Non-controlling interest and partial disposal of interest in subsidiary Summary of Noncontrolling Interest Before Intercompany Eliminations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of subsidiaries [line items] | ||
Current assets | $ 461,452 | $ 492,676 |
Current liabilities | (271,241) | (298,654) |
Revenues | 439,800 | 434,416 |
Total expenses | (521,708) | (439,673) |
Net income and comprehensive income | (78,202) | (6,748) |
Peanuts | ||
Disclosure of subsidiaries [line items] | ||
Current assets | 97,628 | 89,891 |
Non-current assets | 426,810 | 440,842 |
Current liabilities | (48,560) | (43,041) |
Net assets | 475,878 | 485,038 |
Revenues | 149,625 | 137,918 |
Total expenses | (108,667) | (100,929) |
Net income and comprehensive income | $ 40,958 | $ 36,989 |
Finance costs (Details)
Finance costs (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||
Interest income | $ (2,036) | $ (1,147) |
Accretion on tangible benefit obligation | 420 | 539 |
Interest on completed and released productions | 1,820 | 0 |
Amortization of deferred financing fees | 3,628 | 4,992 |
Write-down of term facility unamortized issue costs | 7,641 | 0 |
Interest on finance leases | 703 | 690 |
Finance costs | 52,236 | 50,109 |
Interest expense on bank indebtedness | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense on borrowings | 426 | 788 |
Interest on long-term debt | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense on borrowings | 37,239 | 42,661 |
Accretion on Senior Unsecured Convertible Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense on borrowings | $ 2,395 | $ 1,586 |
Expenses by nature and employ_3
Expenses by nature and employee benefit expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Investment in film and television programs | ||
Direct production and new media costs | $ 197,919 | $ 192,143 |
Expense of film and television programs | 40,165 | 33,554 |
Expense of film and broadcast rights for broadcasting | 14,919 | 18,546 |
Write-down of investment in film and television programs and acquired and library content | 37,145 | 10,968 |
Development, integration and other | 1,661 | 10,554 |
Impairment of intangible assets | 67,726 | 1,059 |
Office and administrative | 21,664 | 21,704 |
Finance expense, net | 43,970 | 46,558 |
Investor relations and marketing | 3,579 | 3,322 |
Professional and regulatory | 6,401 | 7,804 |
Amortization of property and equipment and intangible assets | 22,651 | 24,174 |
Expenses by nature, excluding benefit expense | 472,231 | 386,302 |
The following sets out the components of employee benefits expense: | ||
Salaries and employee benefits | 47,651 | 50,421 |
Share-based compensation | 1,826 | 2,950 |
Employee benefits expense | 49,477 | 53,371 |
Expenses | 521,708 | 439,673 |
Acquired and library content | ||
Investment in film and television programs | ||
Amortization of acquired and library content (note 8) | $ 14,431 | $ 15,916 |
Financial instruments - Narrati
Financial instruments - Narrative (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Credit risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 237,018 | $ 228,542 |
Allowance account for credit losses of financial assets, percent | 3.40% | |
Liquidity risk | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 39,999 | $ 46,550 |
Currency 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 | |
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% | |
Floating interest rate | 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% | |
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) | $ 4,000 | |
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) | $ 5,000 |
Financial instruments - Contrac
Financial instruments - Contractual maturity analysis for financial liabilities (Details) - CAD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | $ 103,487 | $ 130,545 |
Interim production financing | 92,448 | |
Other long-term liabilities | 3,283 | |
Borrowings | 626,516 | $ 866,603 |
Finance lease obligations | 6,589 | |
Financial liabilities | 859,661 | |
Less than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 103,487 | |
Interim production financing | 92,448 | |
Finance lease obligations | 3,362 | |
Financial liabilities | 226,540 | |
1 to 3 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other long-term liabilities | 3,283 | |
Finance lease obligations | 3,187 | |
Financial liabilities | 45,955 | |
4 to 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Finance lease obligations | 40 | |
Financial liabilities | 445,093 | |
After 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Finance lease obligations | 0 | |
Financial liabilities | 142,073 | |
Senior unsecured convertible debentures | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 183,198 | |
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 | 142,073 | |
Term facility | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 470,656 | |
Term facility | Less than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 19,018 | |
Term facility | 1 to 3 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 23,035 | |
Term facility | 4 to 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 428,603 | |
Term facility | After 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | $ 0 |
Financial instruments - Fair va
Financial instruments - Fair values (Details) - CAD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | $ 818,977 | $ 1,076,000 |
Embedded derivatives | Level 2 | Recurring fair value measurement | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value liability | 4,755 | 11,940 |
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 | 116,096 | 112,870 |
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 | $ 103,600 | $ 123,200 |
Commitments and contingencies -
Commitments and contingencies - Future aggregate minimum payments (Details) $ in Thousands | Jun. 30, 2019CAD ($) |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating Leases | $ 40,473 |
Capital Leases | 6,589 |
Total | 47,062 |
Less than 1 year | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating Leases | 8,137 |
Capital Leases | 3,362 |
Total | 11,499 |
1 to 5 years | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating Leases | 21,271 |
Capital Leases | 3,227 |
Total | 24,498 |
Total | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating Leases | 11,065 |
Capital Leases | 0 |
Total | $ 11,065 |
Commitments and contingencies_2
Commitments and contingencies - Narrative (Details) $ in Thousands | Jun. 30, 2019CAD ($) |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Future purchase commitments | $ 13,966 |
Earnings or loss per common s_3
Earnings or loss per common share (Details) - CAD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings per share [abstract] | ||
Net loss attributable to shareholders of the Company | $ (101,494) | $ (14,060) |
Weighted average number of common shares (in shares) | 134,828 | 134,506 |
Dilutive effect of share-based compensation (in shares) | 0 | 0 |
Basic loss per share (in CAD per share) | $ (0.75) | $ (0.10) |
Weighted average number of common shares (diluted) (in shares) | 134,828 | 134,506 |
Diluted loss per share (in CAD per share) | $ (0.75) | $ (0.10) |
Capital disclosures - Company's
Capital disclosures - Company's capital (Details) - CAD ($) $ in Thousands | Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 626,516 | $ 866,603 | ||
Less: Cash | (39,999) | (46,550) | ||
Net debt | 494,069 | 726,370 | ||
Total Shareholders’ Equity | 499,978 | $ 394,401 | 400,792 | $ 415,853 |
Total company's capital | 994,047 | 1,127,162 | ||
Total bank indebtedness, long-term debt and obligations under capital leases, excluding interim production financing | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 534,068 | $ 772,920 |
Statement of cash flows - sup_3
Statement of cash flows - supplementary information - Net change in non-cash balances related to operations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flow Statement [Abstract] | ||
Decrease (increase) in amounts receivable | $ (13,642) | $ 7,345 |
Decrease (increase) in prepaid expenses and other | 1,430 | 1,512 |
Decrease (increase) in long-term amounts receivable | 4,471 | 7,713 |
Increase (decrease) in accounts payable and accrued liabilities | (30,743) | (42,165) |
Increase (decrease) in deferred revenue | 10,288 | (5,558) |
Tangible benefit obligation payments | (2,406) | (859) |
Increase (decrease) in working capital | (30,602) | (32,012) |
Interest paid | 39,850 | 45,156 |
Interest received | 416 | 342 |
Taxes paid | $ 8,151 | $ 3,694 |
Statement of cash flows - sup_4
Statement of cash flows - supplementary information - Net change in film and television programs (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flow Statement [Abstract] | ||
Decrease (increase) in development | $ 553 | $ (434) |
Decrease (increase) in productions in progress | 5,687 | 19,769 |
Decrease (increase) in productions completed and released | (38,527) | (52,854) |
Expense of film and television programs | 40,165 | 33,554 |
Decrease (increase) in program and film rights - broadcasting | (13,523) | (14,110) |
Expense of film and broadcast rights for broadcasting | 14,919 | 18,546 |
Net change in film and television programs | $ 9,274 | $ 4,471 |
Statement of cash flows - sup_5
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, 2019 | Jun. 30, 2018 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | $ 756,570 | $ 983,335 |
Repayments | (229,992) | (237,302) |
Total financing cash flow activities | (229,992) | (237,302) |
Conversion to Senior Unsecured Convertible Debentures | 0 | |
Amortization of deferred financing costs | 3,628 | 4,992 |
Write down of term facility unamortized issue costs | 7,641 | 0 |
New finance leases | 2,924 | 5,160 |
Change in fair value of embedded derivatives | (7,185) | (11,251) |
Accretion expense | 3,098 | 2,276 |
Unrealized foreign exchange gain | (2,616) | 9,360 |
Total financing non-cash activities | 7,490 | 10,537 |
Liabilities from financing activities, ending balance | 534,068 | 756,570 |
Term Facility | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 623,066 | 616,339 |
Repayments | (223,795) | (6,651) |
Total financing cash flow activities | (223,795) | (6,651) |
Conversion to Senior Unsecured Convertible Debentures | 0 | |
Amortization of deferred financing costs | 2,735 | 4,018 |
Write down of term facility unamortized issue costs | 7,641 | |
New finance leases | 0 | 0 |
Change in fair value of embedded derivatives | 0 | 0 |
Accretion expense | 0 | 0 |
Unrealized foreign exchange gain | (2,616) | 9,360 |
Total financing non-cash activities | 7,760 | 13,378 |
Liabilities from financing activities, ending balance | 407,031 | 623,066 |
Special Warrants | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 0 | 133,751 |
Repayments | 0 | |
Total financing cash flow activities | 0 | |
Conversion to Senior Unsecured Convertible Debentures | (133,751) | |
Amortization of deferred financing costs | 0 | |
New finance leases | 0 | |
Change in fair value of embedded derivatives | 0 | |
Accretion expense | 0 | |
Unrealized foreign exchange gain | 0 | |
Total financing non-cash activities | (133,751) | |
Liabilities from financing activities, ending balance | 0 | |
Senior Unsecured Convertible Debentures | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 124,747 | 0 |
Repayments | 0 | (313) |
Total financing cash flow activities | 0 | (313) |
Conversion to Senior Unsecured Convertible Debentures | 133,751 | |
Amortization of deferred financing costs | 893 | 974 |
Write down of term facility unamortized issue costs | 0 | |
New finance leases | 0 | 0 |
Change in fair value of embedded derivatives | (7,185) | (11,251) |
Accretion expense | 2,395 | 1,586 |
Unrealized foreign exchange gain | 0 | |
Total financing non-cash activities | (3,897) | 125,060 |
Liabilities from financing activities, ending balance | 120,850 | 124,747 |
Senior Unsecured Notes | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 0 | 225,000 |
Repayments | (225,000) | |
Total financing cash flow activities | (225,000) | |
Amortization of deferred financing costs | 0 | |
New finance leases | 0 | |
Change in fair value of embedded derivatives | 0 | |
Accretion expense | 0 | |
Unrealized foreign exchange gain | 0 | |
Total financing non-cash activities | 0 | |
Liabilities from financing activities, ending balance | 0 | |
Finance leases | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Liabilities from financing activities, beginning balance | 8,757 | 8,245 |
Repayments | (6,197) | (5,338) |
Total financing cash flow activities | (6,197) | (5,338) |
Conversion to Senior Unsecured Convertible Debentures | ||
Amortization of deferred financing costs | 0 | 0 |
Write down of term facility unamortized issue costs | 0 | |
New finance leases | 2,924 | 5,160 |
Change in fair value of embedded derivatives | 0 | 0 |
Accretion expense | 703 | 690 |
Unrealized foreign exchange gain | 0 | 0 |
Total financing non-cash activities | 3,627 | 5,850 |
Liabilities from financing activities, ending balance | $ 6,187 | $ 8,757 |
Revenues and segmented inform_3
Revenues and segmented information - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019CAD ($)segment | Jun. 30, 2018CAD ($) | Jun. 30, 2017CAD ($) | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Number of reportable segments | segment | 3 | ||
Revenues | $ 439,800 | $ 434,416 | |
Property, plant and equipment | 19,352 | 30,436 | $ 30,996 |
Goodwill | 239,754 | 240,806 | |
Canada | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 161,870 | 168,038 | |
USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 158,072 | 144,940 | |
Property, plant and equipment | 21 | 67 | |
Goodwill | 26,271 | 26,399 | |
UNITED KINGDOM | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 107,525 | 109,024 | |
Countries outside of Canada and the USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 12,414 | ||
Property, plant and equipment | 1,551 | 1,872 | |
Goodwill | 4,420 | 5,334 | |
Intangible Assets | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Intangible assets | 465,832 | 546,997 | $ 555,408 |
Intangible Assets | USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Intangible assets | 353,305 | 423,485 | |
Intangible Assets | Countries outside of Canada and the USA | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Intangible assets | 24,990 | 30,332 | |
DHX Television | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | 52,469 | 55,014 | |
Content Business | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenues | $ 373,011 | $ 366,368 |
Revenues and segmented inform_4
Revenues and segmented information - Income statement information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of operating segments [line items] | ||
Revenues | $ 439,800 | $ 434,416 |
Direct production costs and expense of film and television produced, and selling, general and administrative | 311,943 | 306,635 |
Segment profit | 127,857 | 127,781 |
Corporate selling, general and administrative | 81,121 | 86,200 |
Amortization of property and equipment and intangible assets | 22,651 | 24,174 |
Finance costs | 52,236 | 50,109 |
Foreign exchange gain | 43,970 | 46,558 |
Change in fair value of embedded derivative | (7,185) | (11,251) |
Write-down of investment in film and television programs and acquired and library content and impairment of intangible assets | 104,871 | 12,027 |
Development, integration and other | 1,661 | 10,554 |
Loss before income taxes | (81,908) | (5,257) |
CPLG | ||
Disclosure of operating segments [line items] | ||
Revenues | 439,800 | 434,416 |
DHX Television | ||
Disclosure of operating segments [line items] | ||
Revenues | 52,469 | 55,014 |
Content | ||
Disclosure of operating segments [line items] | ||
Revenues | 373,011 | 366,368 |
Operating segments | CPLG | ||
Disclosure of operating segments [line items] | ||
Revenues | 14,320 | 13,034 |
Direct production costs and expense of film and television produced, and selling, general and administrative | 14,254 | 15,285 |
Segment profit | 66 | (2,251) |
Operating segments | DHX Television | ||
Disclosure of operating segments [line items] | ||
Revenues | 52,469 | 55,014 |
Direct production costs and expense of film and television produced, and selling, general and administrative | 27,886 | 33,459 |
Segment profit | 24,583 | 21,555 |
Operating segments | Content | ||
Disclosure of operating segments [line items] | ||
Revenues | 373,011 | 366,368 |
Direct production costs and expense of film and television produced, and selling, general and administrative | 269,803 | 257,891 |
Segment profit | 103,208 | 108,477 |
Unallocated amounts | ||
Disclosure of operating segments [line items] | ||
Corporate selling, general and administrative | 22,181 | 23,809 |
Amortization of property and equipment and intangible assets | 22,651 | 24,174 |
Finance costs | 52,236 | 50,109 |
Foreign exchange gain | 1,081 | (7,700) |
Change in fair value of embedded derivative | (7,185) | (11,251) |
Amortization of acquired and library content | 14,431 | 15,916 |
Write-down of investment in film and television programs and acquired and library content and impairment of intangible assets | 104,871 | 12,027 |
Development, integration and other | 1,661 | 10,554 |
Loss before income taxes | $ (81,908) | $ (5,257) |
Revenues and segmented inform_5
Revenues and segmented information - Disaggregation of revenue (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of operating segments [line items] | ||
Revenues | $ 439,800 | $ 434,416 |
Content | ||
Disclosure of operating segments [line items] | ||
Revenues | 373,011 | 366,368 |
Content | Production revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 22,239 | 19,793 |
Content | Distribution revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 128,793 | 124,093 |
Content | Merchandising and licensing and other revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 160,252 | 144,712 |
Content | Producer and service fee revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 61,727 | 77,770 |
DHX Television | ||
Disclosure of operating segments [line items] | ||
Revenues | 52,469 | 55,014 |
DHX Television | Subscriber revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 47,425 | 51,102 |
DHX Television | Promotion and advertising revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | 5,044 | 3,912 |
CPLG | ||
Disclosure of operating segments [line items] | ||
Revenues | 439,800 | 434,416 |
CPLG | Third party brand representation revenue | ||
Disclosure of operating segments [line items] | ||
Revenues | $ 14,320 | 13,034 |
Countries outside of Canada and the USA | ||
Disclosure of operating segments [line items] | ||
Revenues | $ 12,414 |
Uncategorized Items - dhx-20190
Label | Element | Value |
Allowance account for credit losses of financial assets | ifrs-full_AllowanceAccountForCreditLossesOfFinancialAssets | $ 10,791,000 |
Accumulated other comprehensive income [member] | ||
Equity | ifrs-full_Equity | (14,137,000) |
Accumulated other comprehensive income [member] | IFRS 15 [Member] | ||
CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | dhx_CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | 481,000 |
Retained earnings [member] | ||
Equity | ifrs-full_Equity | (11,403,000) |
Retained earnings [member] | IFRS 9 [Member] | ||
CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | dhx_CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | 1,049,000 |
Retained earnings [member] | IFRS 15 [Member] | ||
CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | dhx_CumulativeAdjustmentArisingFromChangeInMeasurementAttributeInitialApplicationOfIFRSStandard | (5,823,000) |
Non-controlling interests [member] | ||
Equity | ifrs-full_Equity | 85,714,000 |
Share premium [member] | ||
Equity | ifrs-full_Equity | 29,060,000 |
Ordinary shares [member] | Issued capital [member] | ||
Equity | ifrs-full_Equity | $ 305,167,000 |