Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | LIONS GATE ENTERTAINMENT CORP /CN/ | |
Entity Central Index Key | 929,351 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Voting Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 82,068,047 | |
Class B Non-Voting Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 132,351,596 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 372.3 | $ 378.1 |
Accounts receivable, net | 1,059 | 946 |
Program rights | 234.2 | 253.2 |
Other current assets | 191 | 195.8 |
Total current assets | 1,856.5 | 1,773.1 |
Investment in films and television programs and program rights, net | 1,662.9 | 1,692 |
Property and equipment, net | 158.5 | 161.7 |
Investments | 129.8 | 164.9 |
Intangible assets | 1,928.5 | 1,937.7 |
Goodwill | 2,833.5 | 2,740.8 |
Other assets | 439.6 | 458.6 |
Deferred tax assets | 40.1 | 38.8 |
Total assets | 9,049.4 | 8,967.6 |
LIABILITIES | ||
Accounts payable and accrued liabilities | 585.9 | 447.7 |
Participations and residuals | 494.3 | 504.5 |
Film obligations and production loans | 318.7 | 327.9 |
Debt - short term portion | 35.3 | 79.1 |
Dissenting shareholders' liability | 961.3 | 869.3 |
Deferred revenue | 238 | 183.9 |
Total current liabilities | 2,633.5 | 2,412.4 |
Debt | 2,458 | 2,478.3 |
Participations and residuals | 456.5 | 438.3 |
Film obligations and production loans | 149.6 | 171.3 |
Other liabilities | 48.4 | 46.4 |
Deferred revenue | 59.3 | 70.3 |
Deferred tax liabilities | 58.8 | 91.9 |
Redeemable noncontrolling interest | 133.1 | 101.8 |
Commitments and contingencies (Note 16) | ||
EQUITY | ||
Retained earnings | 332.3 | 516.6 |
Accumulated other comprehensive loss | (15.6) | (9.7) |
Total Lions Gate Entertainment Corp. shareholders' equity | 3,050 | 3,155.9 |
Noncontrolling interests | 2.2 | 1 |
Total equity | 3,052.2 | 3,156.9 |
Total liabilities and equity | 9,049.4 | 8,967.6 |
Class A Voting Shares | ||
EQUITY | ||
Common shares | 638.3 | 628.7 |
Class B Non-Voting Shares | ||
EQUITY | ||
Common shares | $ 2,095 | $ 2,020.3 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2018 | Mar. 31, 2018 |
Class A Voting Shares | ||
Common shares, no par value | $ 0 | $ 0 |
Authorized common shares | 500 | 500 |
Common shares, shares issued | 82 | 81.8 |
Class B Non-Voting Shares | ||
Common shares, no par value | $ 0 | $ 0 |
Authorized common shares | 500 | 500 |
Common shares, shares issued | 132.1 | 129.3 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Income Statement [Abstract] | |||||
Revenues | $ 901 | $ 940.8 | $ 1,833.6 | $ 1,946.1 | |
Expenses | |||||
Direct operating | 463.2 | 521.6 | 993.2 | 1,076.4 | |
Distribution and marketing | 227.9 | 234.5 | 431.4 | 432.6 | |
General and administration | 115 | 111.5 | 225.1 | 223.3 | |
Depreciation and amortization | 40.8 | 39.3 | 81.1 | 79.3 | |
Restructuring and other | 15 | 3.5 | 25.6 | 14.4 | |
Total expenses | 861.9 | 910.4 | 1,756.4 | 1,826 | |
Operating income | 39.1 | 30.4 | 77.2 | 120.1 | |
Interest expense | |||||
Interest expense | [1] | (38.8) | (34.8) | (74.2) | (73.8) |
Interest on dissenting shareholders' liability | (16.7) | (13.9) | (32.6) | (27.2) | |
Total interest expense | (55.5) | (48.7) | (106.8) | (101) | |
Shareholder litigation settlements | [2] | (114.1) | 0 | (114.1) | 0 |
Interest and other income | 3 | 2.7 | 6.1 | 5.5 | |
Loss on extinguishment of debt | 0 | (6.4) | 0 | (18) | |
Gain (loss) on investments | (36.1) | 0 | (37) | 201 | |
Equity interests loss | (11.7) | (12.7) | (17.8) | (21) | |
Income (loss) before income taxes | (175.3) | (34.7) | (192.4) | 186.6 | |
Income tax benefit | 26 | 47.6 | 31.8 | 0.8 | |
Net income (loss) | (149.3) | 12.9 | (160.6) | 187.4 | |
Less: Net loss attributable to noncontrolling interests | 5.2 | 2.6 | 8.7 | 1.9 | |
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (144.1) | $ 15.5 | $ (151.9) | $ 189.3 | |
Per share information attributable to Lions Gate Entertainment Corp. shareholders: | |||||
Basic net income (loss) per common share (in usd per share) | $ (0.67) | $ 0.07 | $ (0.71) | $ 0.91 | |
Diluted net income (loss) per common share (in usd per share) | $ (0.67) | $ 0.07 | $ (0.71) | $ 0.87 | |
Weighted average number of common shares outstanding: | |||||
Basic (in shares) | 213.6 | 207.8 | 212.7 | 207.3 | |
Diluted (in shares) | 213.6 | 219.8 | 212.7 | 218.7 | |
Dividends declared per common share (in usd per share) | $ 0.09 | $ 0 | $ 0.18 | $ 0 | |
[1] | Represents interest expense before interest on dissenting shareholders' liability. | ||||
[2] | Shareholder litigation settlements of $114.1 million in the three and six months ended September 30, 2018 includes the following: (i) $54.8 million for the net expense recorded for the settlement of the Fiduciary Litigation (representing the settlement amount of $92.5 million, which the Company has included in accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheet, net of aggregate insurance reimbursement of $37.8 million, which amount the Company has recorded a receivable included in the "other current assets" line item in the unaudited condensed consolidated balance sheet as of September 30, 2018) and (ii) $59.3 million related to the Appraisal Litigation, representing the amount by which the settlement amount of approximately $961 million exceeds the previously accrued $901.9 million dissenting shareholders' liability, before considering the settlement (i.e., dissenting shareholders' liability plus accrued interest through September 30, 2018). See Note 16. |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (149.3) | $ 12.9 | $ (160.6) | $ 187.4 |
Foreign currency translation adjustments, net of tax | (1.7) | (0.5) | (7.8) | 1.6 |
Net unrealized gain on available-for-sale securities, net of tax | 0 | 3.9 | 0 | 3 |
Net unrealized gain (loss) on cash flow hedges, net of tax | 9.7 | (0.8) | 4.5 | (0.1) |
Comprehensive income (loss) | (141.3) | 15.5 | (163.9) | 191.9 |
Less: Comprehensive loss attributable to noncontrolling interests | 5.2 | 2.6 | 8.7 | 1.9 |
Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (136.1) | $ 18.1 | $ (155.2) | $ 193.8 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statement of Equity - 6 months ended Sep. 30, 2018 - USD ($) shares in Millions, $ in Millions | Total | Retained Earnings | Accumulated Other Comprehensive Loss | Lions Gate Entertainment Corp. Shareholders' Equity | Noncontrolling Interests | Class A Voting SharesCommon Shares | Class B Non-Voting SharesCommon Shares | |
Beginning balance, shares at Mar. 31, 2018 | 81.8 | 129.3 | ||||||
Beginning balance at Mar. 31, 2018 | $ 3,156.9 | $ 516.6 | $ (9.7) | $ 3,155.9 | $ 1 | $ 628.7 | $ 2,020.3 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options, shares | 0 | 0.1 | ||||||
Exercise of stock options | 2.3 | 2.3 | $ 0.4 | $ 1.9 | ||||
Share-based compensation, net, shares | 0.2 | 0.2 | ||||||
Share-based compensation, net | 26.2 | 26.2 | $ 9.1 | $ 17.1 | ||||
Issuance of common shares related to acquisitions and other, shares | 0 | 2.5 | ||||||
Issuance of common shares related to acquisitions and other | 55.8 | 55.8 | $ 0.1 | $ 55.7 | ||||
Noncontrolling interests | 2.5 | 2.5 | ||||||
Dividends declared | (38.7) | (38.7) | (38.7) | |||||
Net loss | (153.2) | (151.9) | (151.9) | (1.3) | ||||
Other comprehensive loss | (3.3) | 0 | (3.3) | (3.3) | ||||
Redeemable noncontrolling interests adjustments to redemption value | (15) | (15) | (15) | |||||
Ending balance, shares at Sep. 30, 2018 | 82 | 132.1 | ||||||
Ending balance at Sep. 30, 2018 | $ 3,052.2 | $ 332.3 | $ (15.6) | $ 3,050 | $ 2.2 | [1] | $ 638.3 | $ 2,095 |
[1] | Excludes redeemable noncontrolling interests, which are reflected in temporary equity (see Note 9). |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Operating Activities: | |||
Net income (loss) | $ (160.6) | $ 187.4 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 81.1 | 79.3 | |
Amortization of films and television programs and program rights | 723.2 | 764.6 | |
Interest on dissenting shareholders' liability | 32.6 | 27.2 | |
Amortization of debt discount and financing costs | 6 | 7.5 | |
Non-cash share-based compensation | 30.2 | 47.4 | |
Other non-cash items | 12.1 | 3.9 | |
Shareholder litigation settlements | [1] | 114.1 | 0 |
Loss on extinguishment of debt | 0 | 18 | |
Equity interests loss | 17.8 | 21 | |
Loss (gain) on investments | 37 | (201) | |
Deferred income taxes (benefit) | (40.9) | 16.2 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net and other assets | 172.7 | 131.6 | |
Investment in films and television programs and program rights, net | (697.1) | (680.7) | |
Accounts payable and accrued liabilities | (65.3) | (197.7) | |
Participations and residuals | (24.1) | 20.9 | |
Film obligations | (12.4) | 25.7 | |
Deferred revenue | 43.5 | 65.3 | |
Net Cash Flows Provided By Operating Activities | 269.9 | 336.6 | |
Investing Activities: | |||
Proceeds from the sale of equity method investee, net of transaction costs | 0 | 393.7 | |
Investment in equity method investees | (16.2) | (29.3) | |
Business acquisitions, net of cash acquired of $5.5 (see Note 2) | (77.3) | 0 | |
Increase in loans receivable | (5.8) | 0 | |
Capital expenditures | (21.6) | (21.3) | |
Net Cash Flows Provided By (Used In) Investing Activities | (120.9) | 343.1 | |
Financing Activities: | |||
Debt - borrowings | 2,069.5 | 115 | |
Debt - repayments | (2,144.8) | (818) | |
Production loans - borrowings | 154.5 | 169.7 | |
Production loans - repayments | (189.7) | (251.6) | |
Dividends paid | (38.2) | 0 | |
Distributions to noncontrolling interest | (1.5) | (4.6) | |
Exercise of stock options | 1.8 | 22.4 | |
Tax withholding required on equity awards | (4) | (8.5) | |
Net Cash Flows Used In Financing Activities | (152.4) | (775.6) | |
Net Change In Cash, Cash Equivalents and Restricted Cash | (3.4) | (95.9) | |
Foreign Exchange Effects on Cash, Cash Equivalents and Restricted Cash | (2.4) | (2.9) | |
Cash, Cash Equivalents and Restricted Cash - Beginning Of Period | 378.1 | 324.7 | |
Cash and Cash Equivalents - End Of Period | $ 372.3 | $ 225.9 | |
[1] | Shareholder litigation settlements of $114.1 million in the three and six months ended September 30, 2018 includes the following: (i) $54.8 million for the net expense recorded for the settlement of the Fiduciary Litigation (representing the settlement amount of $92.5 million, which the Company has included in accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheet, net of aggregate insurance reimbursement of $37.8 million, which amount the Company has recorded a receivable included in the "other current assets" line item in the unaudited condensed consolidated balance sheet as of September 30, 2018) and (ii) $59.3 million related to the Appraisal Litigation, representing the amount by which the settlement amount of approximately $961 million exceeds the previously accrued $901.9 million dissenting shareholders' liability, before considering the settlement (i.e., dissenting shareholders' liability plus accrued interest through September 30, 2018). See Note 16. |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Cash acquired from business acquisitions | $ 5.5 | $ 0 |
General
General | 6 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Nature of Operations Lions Gate Entertainment Corp. (“Lionsgate,” the “Company,”, “Lions Gate”, “we,” “us” or “our”) is a global content platform whose films, television series, digital products and linear and over-the-top platforms reach next generation audiences around the world. In addition to our filmed entertainment leadership, Lionsgate content drives a growing presence in interactive and location-based entertainment, gaming, virtual reality and other new entertainment technologies. Lionsgate's content initiatives are backed by a nearly 17,000-title film and television library and delivered through a global licensing infrastructure. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lionsgate and all of its majority-owned and controlled subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to quarterly report on Form 10-Q under the Securities Exchange Act of 1934, as amended, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these unaudited condensed consolidated financial statements. Operating results for the three and six months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2019. The balance sheet at March 31, 2018 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read together with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2018 , as updated by the Current Report on Form 8-K filed with the SEC on October 15, 2018. Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. In particular, as a result of the segment reorganization in the first quarter of fiscal 2019 (see Note 15 ), the Company has presented prior period segment data in a manner that conforms to the current period presentation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; the allocations made in connection with the amortization of program rights; estimates of sales returns and other allowances and provisions for doubtful accounts; estimates related to the recognition of sales or usage-based royalties; fair value of equity-based compensation; fair value of assets and liabilities for allocation of the purchase price of companies acquired; income taxes including the assessment of valuation allowances for deferred tax assets; accruals for contingent liabilities; and impairment assessments for investment in films and television programs, property and equipment, equity investments, goodwill and intangible assets. Actual results could differ from such estimates. Recent Accounting Pronouncements Accounting Guidance Adopted in Fiscal 2019 Revenue Recognition : On April 1, 2018, the Company adopted, on a modified retrospective basis, accounting guidance that establishes a new revenue recognition framework in U.S. GAAP for all companies and industries. The core principle of the new revenue framework is that an entity should recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive for those goods or services. The revenue framework includes a five-step model to determine the timing and amount of revenue to recognize related to contracts with customers. The adoption of the new accounting guidance did not result in significant changes to the Company's reported operating results. The Company recorded a transition adjustment for all open contracts existing as of April 1, 2018, of $18.7 million as an increase to the opening balance of retained earnings related principally to the areas noted below: Sales or Usage Based Royalties: The Company currently receives royalties from certain domestic and international distributors and other transactional digital distribution partners based on the sales made by these distributors after recoupment of a minimum guarantee, if applicable. Under prior guidance, the Company recorded these sales or usage based royalties after receiving statements from the licensee and/or film distributor. Under the new guidance, revenues are recorded based on best estimates available of the amounts due to the Company in the period of the customer's sales or usage. Accordingly, the timing of the revenue recognition is accelerated; however, the Company continues to have a consistent number of periods of sales or usage based royalties in each reporting period, and therefore the impact of the new guidance depends on the timing and performance of the titles released in those reporting periods. This change primarily impacts the Motion Picture and Television Production segments. Renewals of Licenses of Intellectual Property: Under the prior guidance, when the term of an existing license agreement was extended, without any other changes to the provisions of the license, revenue for the renewal period was recognized when the agreement was renewed or extended. Under the new guidance, revenue associated with renewals or extensions of existing license agreements is recognized as revenue when the licensed content becomes available for the customer to use and benefit from under the renewal or extension. This change impacts the timing of revenue recognition (i.e., revenue is recorded at a later time) as compared with prior revenue recognition guidance. While revenues from renewal do occur, they are not a significant portion of our revenue and thus do not have a material impact on our revenue recognition. This change primarily impacts the Motion Picture and Television Production segments. Also, under the new guidance, the Company presents sales returns and certain sales incentive allowances as refund liabilities instead of as contra asset allowances within accounts receivable. On April 1, 2018, the liabilities for such sales returns and incentives were $86.9 million and were recorded in accounts payable and accrued liabilities on the unaudited condensed consolidated balance sheet. Changes to the opening balances of current assets, total assets, current liabilities and total liabilities resulting from the adoption of the new guidance were as follows: March 31, 2018 Impact of Adoption April 1, 2018 (Amounts in millions) Current assets $ 1,773.1 $ 174.4 $ 1,947.5 Total assets $ 8,967.6 $ 143.6 $ 9,111.2 Current liabilities $ 2,412.4 $ 104.1 $ 2,516.5 Total liabilities $ 5,708.9 $ 124.9 $ 5,833.8 For further information, including the impact of adoption of the new guidance on the current period, see Note 10 . Recognition and Measurement of Financial Instruments : In January 2016, the Financial Accounting Standards Board ("FASB") issued new guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other provisions, the new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. For investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. The guidance is effective for the Company's fiscal year beginning April 1, 2018. Upon adoption of the new guidance, the Company recorded a transition adjustment of $2.6 million to reclassify the unrealized gains recorded through March 31, 2018 for the Company's available-for-sale investments with a readily determinable fair market value (i.e., Next Games) from accumulated other comprehensive loss to retained earnings. After adoption of the new guidance, changes in the fair value of the Company's available-for-sale investments with a readily determinable fair market value will be recognized in net income. The adoption of the new guidance will also impact the accounting for the Company's cost method investments, which will now be measured at cost less any impairment, adjusted for observable price changes in orderly transactions in the investees' securities that are identical or similar to the Company's investments in the investee. The impact of this change will depend on the nature and extent of changes in observable prices, if any. See Note 4 . Restricted Cash : In November 2016, the FASB issued guidance to clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. This guidance became effective for the Company as of April 1, 2018, and has been applied on a retrospective basis. Upon adoption, in the unaudited condensed consolidated statement of cash flows for the six months ended September 30, 2017 , cash provided by operating activities was reduced by $2.8 million , and beginning cash and cash equivalents was increased by $2.8 million to include restricted cash. There was no restricted cash in the unaudited condensed consolidated balance sheets as of September 30, 2018 or March 31, 2018. Accounting Guidance Not Yet Adopted Accounting for Leases : In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The new guidance also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The guidance is effective for the Company's fiscal year beginning April 1, 2019, with early adoption permitted, and is required to be implemented using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements; however, the Company currently believes the most significant change will be related to the increases in assets and liabilities for the recognition of right-of-use assets and lease liabilities on the Company's balance sheet for its operating leases. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income : In February 2018, the FASB issued guidance that permits a company to reclassify the income tax effects of the Tax Act on items in accumulated other comprehensive income to retained earnings, eliminating the stranded tax effects resulting from the Tax Act. The new guidance only applies to the tax effects resulting from the Tax Act, and does not change the underlying guidance to recognize the effect of a change in tax laws or rates in income from continuing operations. This guidance is effective for the Company's fiscal year beginning April 1, 2019, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. Disclosure Update and Simplification: In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification , amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of shareholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of shareholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule is effective for the first quarter of the Company's fiscal year beginning April 1, 2019. Fair Value Measurement - Changes to Disclosure Requirements : In August 2018, the FASB issued guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements. This guidance eliminates the requirement that entities disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but requires public companies to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements, among other changes. This guidance is effective for the Company's fiscal year beginning April 1, 2020, with early adoption permitted. The Company does not expect that the adoption of this guidance will have a material effect on its consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 3 Arts Entertainment On May 29, 2018, the Company purchased a 51% membership interest in 3 Arts Entertainment LLC, a talent management and television/film production company. The purchase price was approximately $166.6 million , of which 50% was paid in cash at closing, 32.5% was paid in the Company's Class B non-voting common shares at closing, and 17.5% will be paid in the Company's Class B non-voting common shares on the one -year anniversary of closing, subject to certain conditions. The number of shares issued and to be issued was determined by dividing the dollar value of the portion of the purchase price to be paid by the daily weighted average closing price of the Company's Class B non-voting common shares on the New York Stock Exchange for the twenty ( 20 ) consecutive trading days immediately preceding the closing date. The value of the shares issued or to be issued was based on the closing price of the Company's Class B non-voting common shares at closing. A portion of the purchase price, up to $38.3 million , may be recoupable for a five -year period commencing on the acquisition date of May 29, 2018, contingent upon the continued employment of certain employees, or the achievement of certain EBITDA targets, as defined in the 3 Arts Entertainment acquisition and related agreements. Accordingly, $38.3 million is recorded as a deferred compensation arrangement within other current and non-current assets and is being amortized in general and administrative expenses over a five -year period. The acquisition was accounted for as a purchase, with the results of operations of 3 Arts Entertainment included in the Company's consolidated results from May 29, 2018. Based on a preliminary purchase price allocation, $92.7 million was allocated to goodwill, $47.0 million was allocated to the fair value of finite-lived intangible assets (including measurement period adjustments recorded, see Note 5 ) and $38.3 million was allocated to deferred compensation arrangements, as discussed above. The remainder of the purchase price was primarily allocated to cash and cash equivalents, accounts receivable, other assets, and accounts payable and accrued liabilities, and $15.8 million was recorded as a redeemable noncontrolling interest, representing the noncontrolling interest holders' 49% equity interest in 3 Arts Entertainment (see Note 9 ). The acquired finite-lived intangible assets primarily represent customer relationships and are being amortized over a weighted average estimated useful life of 12 years. The Company incurred approximately $1.3 million of acquisition-related costs that were expensed in restructuring and other expenses during the six months ended September 30, 2018. The preliminary allocation of the estimated purchase price is based upon management's estimates and is subject to revision, as a more detailed analysis of intangible assets, certain tangible assets, and other assets and liabilities is completed and additional information on the fair value of assets and liabilities becomes available, including receipt of final appraisals of the net assets acquired. A change in the fair value of the net assets may change the amount of the purchase price allocable to goodwill, and could impact the amounts of amortization expense. The Company used discounted cash flows ("DCF") analyses, which represent Level 3 fair value measurements, to assess certain components of its purchase price allocation, including acquired intangible assets and the redeemable noncontrolling interest. The acquisition goodwill arises from the opportunity for synergies of the combined companies to grow and strengthen the Company's television operations by expanding the Company's talent relationships, and improving the Company's television production capabilities. The goodwill recorded as part of this acquisition is included in the Television Production segment. The goodwill is not amortized for financial reporting purposes, but is deductible for federal tax purposes. Good Universe On October 11, 2017, the Company purchased all of the membership interests in True North Media, LLC ("Good Universe"), a motion picture production and global sales company. The purchase price consisted of $20.4 million in cash paid at closing, and an additional $1.4 million in cash and 119,751 of Class B non-voting common shares to be paid and issued after one -year of the closing date. In addition, the Company assumed $23.6 million of corporate debt and production loans, of which $14.9 million was paid off shortly following the acquisition during the fiscal year ended March 31, 2018. The acquisition was accounted for as a purchase, with the results of operations of Good Universe included in the Company's consolidated results from October 12, 2017. Based on the purchase price allocation, $29.0 million was allocated to goodwill, with the remainder primarily allocated to the fair values of investment in film and television programs, cash and cash equivalents, and other liabilities. The goodwill recorded as part of this acquisition arises from the executive management personnel and their extensive experience and key relationships in the entertainment industry, and is included in the Motion Picture segment (see Note 5 ). The goodwill is not amortized for financial reporting purposes, but is deductible for federal tax purposes. |
Investment In Films and Televis
Investment In Films and Television Programs and Program Rights | 6 Months Ended |
Sep. 30, 2018 | |
Investment In Films And Television Programs and Program Rights [Abstract] | |
Investment In Films and Television Programs and Program Rights | Investment in Films and Television Programs and Program Rights September 30, March 31, 2018 (1) (Amounts in millions) Motion Picture Segment - Theatrical and Non-Theatrical Films Released, net of accumulated amortization $ 417.4 $ 410.5 Acquired libraries, net of accumulated amortization 1.6 2.1 Completed and not released 93.3 55.0 In progress 268.4 347.2 In development 23.0 24.6 803.7 839.4 Television Production Segment - Direct-to-Television Programs Released, net of accumulated amortization 188.8 238.9 In progress 239.2 186.6 In development 9.9 4.8 437.9 430.3 Media Networks Segment Released program rights, net of accumulated amortization 530.7 616.9 In progress 114.2 45.6 In development 52.8 30.0 697.7 692.5 Intersegment eliminations (42.2 ) (17.0 ) Investment in films and television programs and program rights, net 1,897.1 1,945.2 Less current portion of program rights (234.2 ) (253.2 ) Non-current portion $ 1,662.9 $ 1,692.0 __________________ (1) As a result of the segment reorganization in the first quarter of fiscal 2019 (see Note 15 ), the Company has presented prior period segment data in a manner that conforms to the current period presentation. During the three and six months ended September 30, 2018 and 2017, the Company performed fair value measurements related to films having indicators of impairment. In determining the fair value of its films, the Company employs a DCF methodology that includes cash flow estimates of a film’s ultimate revenue and costs as well as a discount rate. The discount rate utilized in the DCF analysis is based on the Company’s weighted average cost of capital plus a risk premium representing the risk associated with producing a particular film. As the primary determination of fair value is determined using a DCF model, the resulting fair value is considered a Level 3 measurement (see Note 8 ). During the three and six months ended September 30, 2018 , the Company recorded $2.5 million and $7.0 million , respectively, of fair value film write-downs (2017 - $2.3 million and $2.6 million , respectively). |
Investments
Investments | 6 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments, Cost Method Investments, and Investments in Debt and Equity [Abstract] | |
Investments | Investments The carrying amounts of investments, by category, at September 30, 2018 and March 31, 2018 were as follows: September 30, March 31, (Amounts in millions) Equity method investments $ 124.7 $ 127.0 Available-for-sale securities 4.6 7.3 Cost method investments 0.5 30.6 $ 129.8 $ 164.9 Equity Method Investments: The carrying amounts of equity method investments at September 30, 2018 and March 31, 2018 were as follows: September 30, Equity Method Investee Ownership Percentage September 30, March 31, (Amounts in millions) Pop 50.0% $ 95.3 $ 91.3 Other Various 29.4 35.7 $ 124.7 $ 127.0 Equity interests in equity method investments for the three and six months ended September 30, 2018 and 2017 were as follows (income (loss)): Three Months Ended Six Months Ended September 30, September 30, Equity Method Investee 2018 2017 2018 2017 (Amounts in millions) EPIX (1) $ — $ — $ — $ 4.0 Pop (0.3 ) 0.5 (1.1 ) (2.5 ) Other (11.4 ) (13.2 ) (16.7 ) (22.5 ) $ (11.7 ) $ (12.7 ) $ (17.8 ) $ (21.0 ) ______________ (1) In May 2017, the Company sold all of its 31.15% equity interest in EPIX. The Company recorded a gain before income taxes of approximately $201.0 million which is reflected in the gain (loss) on investments line item in the unaudited condensed consolidated statement of operations for the six months ended September 30, 2017. Prior to the sale of its interest in EPIX, the Company had accounted for such interest as an equity method investment. Pop. Pop is the Company's joint venture with CBS. The Company’s investment interest in Pop consists of an equity investment in its common stock units and mandatorily redeemable preferred stock units. The mandatorily redeemable preferred stock units carry a dividend rate of 10% compounded annually and are mandatorily redeemable at the stated value plus the dividend return and any additional capital contributions less previous distributions. The mandatorily redeemable preferred stock units were initially recorded based on their estimated fair value, as determined using an option pricing model. The mandatorily redeemable preferred stock units and the 10% dividend are being accreted up to their redemption amount over the ten -year period to the redemption date, which is recorded as income within equity interest loss. During the three and six months ended September 30, 2018 , the Company made contributions to Pop of $5.0 million and $5.0 million , respectively. Pop Financial Information: The following table presents summarized balance sheet data as of September 30, 2018 and March 31, 2018 for Pop: September 30, March 31, (Amounts in millions) Current assets $ 73.5 $ 48.2 Non-current assets $ 190.6 $ 191.6 Current liabilities $ 46.5 $ 37.2 Non-current liabilities (1) $ 716.5 $ 654.9 Redeemable preferred stock (1) $ 692.7 $ 638.4 _________________________ (1) Non-current liabilities includes mandatorily redeemable preferred stock units. The following table presents the summarized statements of operations for the three and six months ended September 30, 2018 , and 2017 for Pop and a reconciliation of the net loss reported by Pop to equity interest income (loss) recorded by the Company: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 Revenues $ 25.9 $ 28.3 $ 51.5 $ 53.0 Expenses: Cost of services 12.4 13.8 25.5 30.8 Selling, marketing, and general and administration 11.5 11.1 23.4 23.2 Depreciation and amortization 2.0 2.0 4.0 4.0 Operating income (loss) — 1.4 (1.4 ) (5.0 ) Interest expense, net 0.5 0.4 0.9 0.5 Accretion of redeemable preferred stock units (1) 22.6 19.3 44.4 37.9 Total interest expense, net 23.1 19.7 45.3 38.4 Net loss $ (23.1 ) $ (18.3 ) $ (46.7 ) $ (43.4 ) Reconciliation of net loss reported by Pop to equity interest income (loss): Net loss reported by Pop $ (23.1 ) $ (18.3 ) $ (46.7 ) $ (43.4 ) Ownership interest in Pop 50 % 50 % 50 % 50 % The Company's share of net loss (11.6 ) (9.2 ) (23.4 ) (21.7 ) Accretion of dividend and interest income on redeemable preferred stock units (1) 11.3 9.7 22.2 19.0 Elimination of the Company's share of profits on licensing sales to Pop (0.1 ) (0.1 ) (0.2 ) (0.2 ) Realization of the Company’s share of profits on licensing sales to Pop 0.1 0.1 0.3 0.4 Total equity interest income (loss) recorded $ (0.3 ) $ 0.5 $ (1.1 ) $ (2.5 ) ___________________ (1) Accretion of mandatorily redeemable preferred stock units represents Pop's 10% dividend and the amortization of discount on its mandatorily redeemable preferred stock units held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest loss. Other Equity Method Investments The Company has investments in various other equity method investees with ownership percentages ranging from approximately 9% to 50% . These investments include: Playco. Playco Holdings Limited ("Playco") offers a STARZ-branded online subscription video-on-demand service in the Middle East and North Africa. Laugh Out Loud. In March 2016, the Company entered into a partnership with Kevin Hart and Hartbeat Digital to launch a new streaming video service, Laugh Out Loud. The streaming video service launched in August 2017. The new service will serve as the exclusive home for all content created by Kevin Hart outside his theatrical and live touring activities and will include original series starring Kevin Hart. Laugh Out Loud will also showcase content curated by Kevin Hart along with shows featuring social media stars and up and coming comedians. Roadside Attractions . Roadside Attractions is an independent theatrical distribution company. Pantelion Films. Pantelion Films is a joint venture with Videocine, an affiliate of Televisa, which produces, acquires and distributes a slate of English and Spanish language feature films that target Hispanic moviegoers in the U.S. Atom Tickets. Atom Tickets is the first-of-its-kind theatrical mobile ticketing platform and app. The Company is accounting for its investment in Atom Tickets, a limited liability company, under the equity method of accounting due to the Company's board representation that provides significant influence over the investee. Other. In addition to the equity method investments discussed above, the Company holds ownership interests in other immaterial equity method investees. Summarized Financial Information. Summarized financial information for the Company's "other equity method investees", on an aggregate basis, is set forth below: September 30, March 31, (Amounts in millions) Current assets $ 181.4 $ 232.7 Non-current assets $ 59.5 $ 130.0 Current liabilities $ 149.9 $ 201.5 Non-current liabilities $ 10.2 $ 45.0 Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Revenues $ 30.7 $ 49.3 $ 53.4 $ 88.1 Gross profit $ 15.3 $ 9.3 $ 19.6 $ 18.0 Net loss $ (34.9 ) $ (32.5 ) $ (55.3 ) $ (62.4 ) Available-for-Sale Securities: Next Games. At September 30, 2018 and March 31, 2018, the Company's available-for-sale securities consisted of the Company's minority ownership interest in Next Games. Next Games is a mobile games development company headquartered in Helsinki, Finland, with a focus on crafting visually impressive, highly engaging games. Next Games is traded on the Nasdaq First North Finland marketplace maintained by Nasdaq Helsinki Ltd, and the Company classifies its investment in Next Games within Level 1 of the fair value hierarchy as the valuation inputs are based on quoted prices in active markets (see Note 8 ). As a result of the adoption of new accounting guidance for Recognition and Measurement of Financial Instruments (see Note 1 ), effective April 1, 2018 changes in the fair value of the Company's available-for-sale investments with a readily determinable fair market value are recognized in net income. Accordingly, during the three and six months ended September 30, 2018 , the Company recognized $1.9 million and $2.8 million , respectively in unrealized losses on available-for-sale securities held as of September 30, 2018 which are reflected in the gain (loss) on investments line item on the unaudited condensed consolidated statement of operations. Cost Method Investments: At March 31, 2018, the Company's cost method investments primarily consisted of its minority economic interest in Telltale Games ("Telltale"). Telltale is a creator, developer and publisher of interactive software episodic games based upon popular stories and characters across all major gaming and entertainment platforms. During the three and six months ended September 30, 2018 , the Company recognized $34.2 million of other-than-temporary impairments on its cost method investments and notes receivable (previously included in other assets, see Note 18) related to Telltale, which were written down to their estimated fair value of zero . The impairment charges are included in the gain (loss) on investments line item in the unaudited condensed consolidated statements of operations. Gain (Loss) on Investments: The following table summarizes the components of the gain (loss) on investments, as previously described in the respective sections above: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Impairments of long-term investments and other assets $ (34.2 ) $ — $ (34.2 ) $ — Unrealized losses on available-for-sale securities held as of September 30, 2018 (1.9 ) — (2.8 ) — Gain on sale of EPIX — — — 201.0 $ (36.1 ) $ — $ (37.0 ) $ 201.0 |
Goodwill
Goodwill | 6 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in the carrying value of goodwill by reporting segment were as follows: Motion Picture Television Production Media Networks Total (Amounts in millions) Balance as of March 31, 2018 $ 393.7 $ 309.2 $ 2,037.9 $ 2,740.8 Business acquisitions (1) — 92.0 — 92.0 Measurement period adjustments (1) — 0.7 — 0.7 Balance as of September 30, 2018 $ 393.7 $ 401.9 $ 2,037.9 $ 2,833.5 ______________________ (1) Represents the goodwill and measurement period adjustments resulting from the acquisition of 3 Arts Entertainment (see Note 2 ). Measurement period adjustments represented a decrease to the fair value of finite-lived intangible assets and a corresponding increase to goodwill. |
Debt
Debt | 6 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Total debt of the Company, excluding film obligations and production loans, was as follows as of September 30, 2018 and March 31, 2018 : September 30, March 31, (Amounts in millions) Corporate debt: Revolving Credit Facility $ — $ — Term Loan A (1) 750.0 750.0 Term Loan B (1) 1,243.8 1,250.0 5.875% Senior Notes 520.0 520.0 Total corporate debt 2,513.8 2,520.0 Convertible senior subordinated notes (2) — 60.0 Capital lease obligations 47.0 50.5 Total debt 2,560.8 2,630.5 Unamortized discount and debt issuance costs, net of fair value adjustment on capital lease obligations (67.5 ) (73.1 ) Total debt, net 2,493.3 2,557.4 Less current portion (35.3 ) (79.1 ) Non-current portion of debt $ 2,458.0 $ 2,478.3 _____________________ (1) To manage interest rate risk on certain of its LIBOR-based floating-rate corporate debt, as of September 30, 2018 . the Company has entered into three interest rate swaps to effectively convert the floating interest rates to fixed interest rates on a $1.5 billion notional amount (see Note 17 for further information). (2) On April 15, 2018, the 1.25% convertible senior subordinated notes due April 2018 (the "April 2013 1.25% Notes") matured, and upon maturity, the Company repaid the outstanding principal amount, together with accrued and unpaid interest. Senior Credit Facilities (Revolving Credit Facility, Term Loan A and Term Loan B) Issuance. On March 22, 2018, the Company amended its credit and guarantee agreement issued December 8, 2016 (the "Amended Credit Agreement"), and in connection with the amendment and repayment of amounts previously outstanding under the credit and guarantee agreement, obtained a new $1.5 billion five -year revolving credit facility (the "Revolving Credit Facility"), incurred a new five -year term loan A in aggregate principal amount of $750.0 million (the "Term Loan A") and incurred a new seven -year term loan B in aggregate principal amount of $1,250.0 million (the "Term Loan B", and together with the Revolving Credit Facility and the Term Loan A, the "Senior Credit Facilities"). Revolving Credit Facility Availability of Funds & Commitment Fee. The Revolving Credit Facility provides for borrowings and letters of credit up to an aggregate of $1.5 billion , and at September 30, 2018 there was $1.5 billion available. However, borrowing levels are subject to certain financial covenants as discussed below. There were no letters of credit outstanding at September 30, 2018 . The Company is required to pay a quarterly commitment fee on the Revolving Credit Facility of 0.250% to 0.375% per annum, depending on the achievement of certain leverage ratios, as defined in the Amended Credit Agreement, on the total Revolving Credit Facility of $1.5 billion less the amount drawn. Maturity Date: • Revolving Credit Facility & Term Loan A: March 22, 2023. • Term Loan B: March 24, 2025. Interest: • Revolving Credit Facility & Term Loan A: Initially bear interest at a rate per annum equal to LIBOR plus 1.75% (or an alternative base rate plus 0.75% ) margin, with a LIBOR floor of zero . The margin is subject to potential increases of up to 50 basis points ( two ( 2 ) increases of 25 basis points each) upon certain increases to net first lien leverage ratios, as defined in the Amended Credit Agreement (effective interest rate of 4.01% as of September 30, 2018 ). • Term Loan B: As of March 22, 2018, pursuant to the Amended Credit Agreement described above, the Term Loan B bears interest at a rate per annum equal to LIBOR plus 2.25% margin, with a LIBOR floor of zero (or an alternative base rate plus 1.25% margin) (effective interest rate of 4.51% as of September 30, 2018 ). Required Principal Payments: • Term Loan A: Quarterly principal payments which began on June 30, 2018 (the last day of the first full fiscal quarter ending after March 22, 2018), at quarterly rates of 0.00% for the first year, 1.25% for the second year, 1.75% for the third year, and 2.50% for the fourth and fifth years, with the balance payable at maturity. • Term Loan B: Quarterly principal payments which began on June 30, 2018 (the last day of the first full fiscal quarter ending after March 22, 2018), at a quarterly rate of 0.25% , with the balance payable at maturity. The Term Loan A and Term Loan B also require mandatory prepayments in connection with certain asset sales, subject to certain significant exceptions, and the Term Loan B is subject to additional mandatory repayment from specified percentages of excess cash flow, as defined in the Amended Credit Agreement. Optional Prepayment: • Revolving Credit Facility & Term Loan A: The Company may voluntarily prepay the Revolving Credit Facility and Term Loan A at any time without premium or penalty. • Term Loan B: The Company may voluntarily prepay the Term Loan B at any time. Security. The Senior Credit Facilities are guaranteed by the Guarantors (as defined in the Amended Credit Agreement) and are secured by a security interest in substantially all of the assets of Lionsgate and the Guarantors (as defined in the Amended Credit Agreement), subject to certain exceptions. Covenants. The Senior Credit Facilities contain representations and warranties, events of default and affirmative and negative covenants that are customary for similar financings and which include, among other things and subject to certain significant exceptions, restrictions on the ability to declare or pay dividends, create liens, incur additional indebtedness, make investments, dispose of assets and merge or consolidate with any other person. At September 30, 2018 , the capacity to pay dividends under the Senior Credit Facilities significantly exceeded the amount of the Company's retained earnings or net loss, and therefore the Company's net loss of $160.6 million and retained earnings of $332.3 million were deemed free of restrictions at September 30, 2018 . In addition, a net first lien leverage maintenance covenant and an interest coverage ratio maintenance covenant apply to the Revolving Credit Facility and the Term Loan A and are tested quarterly. As of September 30, 2018 , the Company was in compliance with all applicable covenants. Change in Control. The Company may also be subject to an event of default upon a change in control (as defined in the Amended Credit Agreement) which, among other things, includes a person or group acquiring ownership or control in excess of 50% of the Company’s common shares. 5.875% Senior Notes Issuance. On October 27, 2016, Lions Gate Entertainment Corp. issued $520.0 million aggregate principal amount of 5.875% senior notes due 2024 (the "2016 5.875% Senior Notes"). On March 28, 2018, in connection with a private exchange offer of the $520.0 million aggregate principal amount of its 2016 5.875% Senior Notes, an indirect, wholly owned subsidiary of the Company issued $512.3 million aggregate principal amount of new 5.875% senior notes due 2024 (the "2018 5.875% Senior Notes", and collectively with the 2016 5.875% Senior Notes, the " 5.875% Senior Notes"). The new 2018 5.875% Senior Notes were exchanged by the Company for $512.3 million of the 2016 5.875% Senior Notes. Interest. Bears interest at 5.875% annually. Maturity Date. November 1, 2024. Optional Redemption: (i) Prior to November 1, 2019, the 5.875% Senior Notes are redeemable under certain circumstances (as defined in the indenture governing the 5.875% Senior Notes), in whole at any time or in part from time to time, at a price equal to 100% of the principal amount, plus the Applicable Premium (as defined in the indenture governing the 5.875% Senior Notes). The Applicable Premium is the greater of (i) 1.0% of the principal amount redeemed and (ii) the excess of the present value of the redemption amount at November 1, 2019 (see below) of the notes redeemed plus interest through the redemption date (discounted at the treasury rate on the redemption date plus 50 basis points) over the principal amount of the notes redeemed on the redemption date. (ii) On and after November 1, 2019, redeemable by the Company, in whole or in part, at the redemption prices set forth as follows (as a percentage of the principal amount redeemed), plus accrued and unpaid interest to the redemption date: (i) on or after November 1, 2019 - 104.406% ; (ii) on or after November 1, 2020 - 102.938% ; (iii) on or after November 1, 2021 - 101.439% ; and (iv) on or after November 1, 2022 - 100% . Security. The 5.875% Senior Notes are guaranteed on an unsubordinated, unsecured basis. Covenants. The 5.875% Senior Notes contain certain restrictions and covenants that, subject to certain exceptions, limit the Company’s ability to incur additional indebtedness, pay dividends or repurchase the Company’s common shares, make certain loans or investments, and sell or otherwise dispose of certain assets subject to certain conditions, among other limitations. At September 30, 2018 , the capacity to pay dividends under the 5.875% Senior Notes significantly exceeded the amount of the Company's retained earnings or net loss, and therefore the Company's net loss of $160.6 million and retained earnings of $332.3 million were deemed free of restrictions at September 30, 2018 . As of September 30, 2018 , the Company was in compliance with all applicable covenants. Change in Control. The occurrence of a change of control will be a triggering event requiring the Company to offer to purchase from holders all of the 5.875% Senior Notes, at a price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase. In addition, certain asset dispositions will be triggering events that may require the Company to use the excess proceeds from such dispositions to make an offer to purchase the 5.875% Senior Notes at 100% of their principal amount, plus accrued and unpaid interest, if any to the date of purchase. Interest Expense The table below sets forth the composition of the Company’s interest expense for the three and six months September 30, 2018 and 2017 : Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Interest expense Cash interest $ 35.8 $ 31.8 $ 68.2 $ 66.3 Amortization of debt discount and financing costs 3.0 3.0 6.0 7.5 38.8 34.8 74.2 73.8 Interest on dissenting shareholders' liability (see Note 16) 16.7 13.9 32.6 27.2 Total interest expense $ 55.5 $ 48.7 $ 106.8 $ 101.0 |
Film Obligations and Production
Film Obligations and Production Loans | 6 Months Ended |
Sep. 30, 2018 | |
Film Obligations And Production Loans [Abstract] | |
Film Obligations and Production Loans | Film Obligations and Production Loans September 30, March 31, (Amounts in millions) Film obligations $ 150.7 $ 146.7 Production loans 318.1 352.9 Total film obligations and production loans 468.8 499.6 Unamortized debt issuance costs (0.5 ) (0.4 ) Total film obligations and production loans, net 468.3 499.2 Less current portion (318.7 ) (327.9 ) Total non-current film obligations and production loans $ 149.6 $ 171.3 Film Obligations Film obligations include minimum guarantees and accrued licensed program rights obligations, which represent amounts payable for film rights that the Company has acquired and certain theatrical marketing obligations for amounts received from third parties that are contractually committed for theatrical marketing expenditures associated with specific titles. Production Loans Production loans represent individual loans for the production of film and television programs that the Company produces. The majority of production loans have contractual repayment dates either at or near the expected completion date, with the exception of certain loans containing repayment dates on a longer term basis, and incur interest at rates ranging from 4.43% to 5.30% . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Value Accounting guidance and standards about fair value define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair Value Hierarchy Fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting guidance and standards establish three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of September 30, 2018 and March 31, 2018 : September 30, 2018 March 31, 2018 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in millions) Available-for-sale securities (see Note 4) $ 4.6 $ — $ 4.6 $ 7.3 $ — $ 7.3 Forward exchange contracts (see Note 17) — 0.8 0.8 — 0.3 0.3 Interest rate swaps (see Note 17) — 5.4 5.4 — — — Liabilities: Forward exchange contracts (see Note 17) — (0.5 ) (0.5 ) — (0.6 ) (0.6 ) $ 4.6 $ 5.7 $ 10.3 $ 7.3 $ (0.3 ) $ 7.0 The following table sets forth the carrying values and fair values of the Company’s investment in Pop's mandatorily redeemable preferred stock units and outstanding debt at September 30, 2018 and March 31, 2018 : September 30, 2018 March 31, 2018 (Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value (Level 3) (Level 3) Assets: Investment in Pop's mandatorily redeemable preferred stock units (1) $ 95.3 $ 125.0 $ 91.3 $ 125.0 Carrying Value Fair Value Carrying Value Fair Value (Level 2) (Level 2) Liabilities (2) : Term Loan A 731.6 747.2 729.7 750.9 Term Loan B 1,224.3 1,253.1 1,229.3 1,251.6 5.875% Senior Notes 501.6 534.3 500.4 539.5 April 2013 1.25% Notes — — 60.0 60.3 Production loans 317.6 318.1 352.6 352.9 $ 2,775.1 $ 2,852.7 $ 2,872.0 $ 2,955.2 ________________ (1) The Company measures the fair value of its investment in Pop's mandatorily redeemable preferred stock units using primarily a discounted cash flow analysis based on the expected cash flows of the investment (a Level 3 measurement). The analysis reflects the contractual terms of the investment, including the period to maturity, and uses a discount rate commensurate with the risk associated with the investment. (2) The Company measures the fair value of its outstanding debt using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements). The Company’s financial instruments also include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, borrowings under the Revolving Credit Facility, if any, capital lease obligations and dissenting shareholders' liability. The carrying values of these financial instruments approximated the fair values at September 30, 2018 and March 31, 2018 . |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Redeemable Noncontrolling Interests The table below presents the reconciliation of changes in redeemable noncontrolling interests: Six Months Ended September 30, 2018 2017 (Amounts in millions) Beginning balance $ 101.8 $ 93.8 Initial fair value of redeemable noncontrolling interest of 3 Arts Entertainment 15.8 — Net income (loss) attributable to redeemable noncontrolling interests (7.4 ) — Noncontrolling interests discount accretion 9.4 2.9 Adjustments to redemption value 15.0 5.1 Cash distributions (1.5 ) (4.6 ) Ending balance $ 133.1 $ 97.2 Redeemable noncontrolling interests relate to the November 12, 2015 acquisition of a controlling interest in Pilgrim Media Group and the May 29, 2018 acquisition of a controlling interest in 3 Arts Entertainment. Redeemable noncontrolling interests are measured at the greater of (i) the redemption amount that would be paid if settlement occurred at the balance sheet date less the amount attributed to unamortized noncontrolling interest discount if applicable, or (ii) the historical value resulting from the original acquisition date value plus or minus any earnings or loss attribution, plus the amount of amortized noncontrolling interest discount, less the amount of cash distributions that are not accounted for as compensation, if any. The amount of the redemption value in excess of the historical values of the noncontrolling interest, if any, is recognized as an increase to redeemable noncontrolling interest and a charge to retained earnings. In connection with the acquisition of a controlling interest in 3 Arts Entertainment on May 29, 2018, the Company recorded a non-compensatory (see below) redeemable noncontrolling interest of $15.8 million , representing the noncontrolling interest holders 49% equity interest in 3 Arts Entertainment (see Note 2 ). The noncontrolling interest holders have a right to put the noncontrolling interest of 3 Arts Entertainment, at fair value, exercisable at five years after the acquisition date of May 29, 2018, for a 60 day period. Beginning 30 days after the expiration of the exercise period for the put rights held by the noncontrolling interest holders, the Company has a right to call the noncontrolling interest of 3 Arts Entertainment, at fair value, for a 60 day period. The put and call options have been determined to be embedded in the noncontrolling interest, and because the put rights are outside the control of the Company, the noncontrolling interest holder's interest is presented as redeemable noncontrolling interest outside of shareholders' equity on the Company's consolidated balance sheets. In addition, the noncontrolling interest holders have continued as employees of 3 Arts Entertainment. Pursuant to the various 3 Arts Entertainment acquisition and related agreements, a portion of the noncontrolling interest holders' participation in the put and call proceeds is based on the noncontrolling interest holders' performance during the period. Further, if the employment of a noncontrolling interest holder is terminated, under certain circumstances, their participations in distributions cease and the put and call value is discounted from the fair value of their equity ownership percentage. Accordingly, earned distributions are accounted for as compensation and are being expensed within general and administrative expense as incurred. Additionally, the amount of the put and call proceeds subject to the discount is also accounted for as compensation, and is being amortized over the vesting period within general and administrative expense and reflected as an addition to redeemable noncontrolling interest. Other Noncontrolling Interests The Company has other noncontrolling interests that are not redeemable. These noncontrolling interests primarily relate to Pantaya (a joint venture between the Company and Hemisphere Media Group), a premium Spanish-language streaming service in which the Company owns a controlling interest. The Pantaya service was launched in the three months ended September 30, 2017. |
Revenue
Revenue | 6 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue General. The Company's Motion Picture and Television Production segments generate revenue principally from the licensing of content in domestic theatrical exhibition, home entertainment (e.g., digital media and packaged media), television, and international market places. The Company's Media Networks segment generates revenue primarily from the distribution of the Company's STARZ branded premium subscription video services and, to a lesser extent, direct-to-consumer content streaming services. Revenue is recognized upon transfer of control of promised services or goods to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services or goods. Revenues do not include taxes collected from customers on behalf of taxing authorities such as sales tax and value-added tax. Licensing Arrangements. The Company's content licensing arrangements include fixed fee and minimum guarantee arrangements, and sales or usage based royalties. Fixed Fee or Minimum Guarantees: The Company's fixed fee or minimum guarantee arrangements may, in some cases, include multiple titles, multiple license periods (windows) with a substantive period in between the windows, rights to exploitation in different media, or rights to exploitation in multiple territories, which may be considered distinct performance obligations. When these performance obligations are considered distinct, the fixed fee or minimum guarantee in the arrangement is allocated to the title, window, media right or territory as applicable, based on estimates of relative standalone selling prices. The amounts related to each performance obligation (i.e., title, window, media or territory) are recognized when the content has been delivered, and the window for the exploitation right in that territory has begun, which is the point in time at which the customer is able to begin to use and benefit from the content. Sales or Usage Based Royalties: Sales or usage based royalties represent amounts due to the Company based on the “sale” or “usage” of the Company's content by the customer, and revenues are recognized at the later of when the subsequent sale or usage occurs, or the performance obligation to which some or all the sales or usage-based royalty has been allocated has been satisfied (or partially satisfied). Generally when the Company licenses completed content (with standalone functionality, such as a movie, or television show), its performance obligation will be satisfied prior to the sale or usage. When the Company licenses intellectual property that does not have stand-alone functionality (e.g., brands, themes, logos, etc.), its performance obligation is generally satisfied in the same period as the sale or usage. The actual amounts due to the Company under these arrangements are generally not reported to the Company until after the close of the reporting period. The Company records revenue under these arrangements for the amounts due and not yet reported to the Company based on estimates of the sales or usage of these customers and pursuant to the terms of the contracts. Such estimates are based on information from the Company's customers, historical experience with similar titles in that market or territory, the performance of the title in other markets, and/or data available in the industry. Revenues by Market or Product Line. The following describes the revenues generated by market or product line. Theatrical revenues are included in the Motion Picture segment; home entertainment, television, international and other revenues are applicable to both the Motion Picture and Television Production segments; Media Networks programming revenues are included in the Media Networks segment. • Theatrical. Theatrical revenues are derived from the domestic theatrical release of motion pictures licensed to theatrical exhibitors on a picture-by-picture basis (distributed by the Company directly in the United States and through a sub-distributor in Canada). Revenue from the theatrical release of feature films are treated as sales or usage- based royalties and recognized starting at the exhibition date and based on the Company's participation in box office receipts of the theatrical exhibitor . • Home Entertainment. Home entertainment consists of Digital Media and Packaged Media. ◦ Digital Media. Digital media includes digital transaction revenue sharing arrangements (pay-per-view and video-on-demand platforms, electronic sell through ("EST"), and digital rental) and licenses of content to digital platforms for a fixed fee. Digital Transaction Revenue Sharing Arrangements : Primarily represents revenue sharing arrangements with certain digital media platforms which generally provide that, in exchange for a nominal or no upfront sales price, the Company shares in the rental or sales revenues generated by the platform on a title-by-title basis. These digital media platforms generate revenue from rental and EST arrangements, such as download-to-own, download-to-rent, and video-on-demand. These revenue sharing arrangements are recognized as sales or usage based royalties based on the performance of these platforms and pursuant to the terms of the contract, as discussed above. Licenses of Content to Digital Platforms: Primarily represents the licensing of content to subscription-video-on-demand ("SVOD") or other digital platforms for a fixed fee. As discussed above, revenues are recognized when the content has been delivered and the window for the exploitation right in that territory has begun. ◦ Packaged Media. Packaged media revenues represent the sale of motion pictures and television shows (produced or acquired) on physical discs (DVD’s, Blu-Ray, 4K Ultra HD) in the retail market. Revenues are recognized, net of an allowance for estimated returns and other allowances, on the later of receipt by the customer or “street date” (when it is available for sale by the customer). • Television . Television revenues are derived from the licensing to domestic markets (linear pay, basic cable, free television markets, syndication) of motion pictures (including theatrical productions and acquired films) and scripted and unscripted television series, television movies, mini-series, and non-fiction programming. Television revenues include fixed fee arrangements as well as arrangements in which the Company earns advertising revenue from the exploitation of certain content on television networks. Television also includes revenue from licenses to SVOD platforms in which the initial license of a television series is to an SVOD platform. Revenues associated with a title, right, or window from television licensing arrangements are recognized when the feature film or television program is delivered (on an episodic basis for television product) and the window for the exploitation right has begun. • International. International revenues are derived from (1) licensing of the Company's productions, acquired films, catalog product and libraries of acquired titles to international distributors, on a territory-by-territory basis; (2) the direct distribution of our productions, acquired films, and our catalog product and libraries of acquired titles in the United Kingdom; and (3) licensing to international markets of scripted and unscripted series, television movies, mini-series and non-fiction programming. License fees and minimum guarantee amounts associated with title, window, media or territory, are recognized when access to the feature film or television program has been granted or delivery has occurred, as required under the contract, and the right to exploit the feature film or television program in that window, media or territory has commenced. Revenues are also generated from sales or usage based royalties received from international distributors based on their distribution performance pursuant to the terms of the contracts after the recoupment of certain costs in some cases, and the initial minimum guarantee, if any, and are recognized when the sale by our customer generating a royalty due to us has occurred. • Other. Other revenues are derived from, among others, the following: ◦ the licensing of our film and television content to other ancillary markets; ◦ the Company's interactive ventures and games division, its global franchise management division (including location-based entertainment) and merchandising rights, all of which may include licenses of motion picture or television characters, brands, storylines, themes or logos (i.e., symbolic intellectual property); ◦ the sales and licensing of music from the theatrical exhibition of our films and the television broadcast of our productions; and ◦ commissions due to 3 Arts Entertainment related to talent management. Revenues from the licensing of film and television content and the sales and licensing of music are recognized when the content has been delivered and the license period has begun, as discussed above. Revenues from the licensing of symbolic intellectual property is recognized over the corresponding license term. Commissions are recognized as such services are provided. • Media Networks - Programming Revenues. Media Networks’ revenues are primarily derived from the distribution of the Company's STARZ branded premium subscription video services pursuant to affiliation agreements with U.S. multichannel video programming distributors (“MVPDs”), including cable operators, satellite television providers and telecommunications companies, and over-the-top (“OTT”) (collectively, “Distributors”) and on a direct-to-consumer basis. Media Networks revenues also include international revenues from the OTT distribution of the Company's STARZ branded premium subscription video services. Pursuant to the Company’s distribution agreements, revenues may be based on a fixed fee, subject to nominal annual escalations, or a variable fee (i.e., a fee based on number of subscribers who receive the Company's networks or other factors). Programming revenue is recognized over the contract term based on the continuous delivery of the content to the distributor. The variable distribution fee arrangements represent sales or usage based royalties and are recognized over the period of such sales or usage by the Company's distributor, which is the same period that the content is provided to the distributor. Revenue for direct-to-consumer streaming services represent subscription fees for the STARZ app (included in Starz Networks), or other streaming services (e.g., Pantaya) (included in Streaming Services), and is recognized over the subscription period as the content is made available and streamed to the end consumer. The table below presents revenues by segment, market or product line for the three and six months ended September 30, 2018 and 2017. As a result of the segment reorganization described in Note 15 , the Company has presented prior period segment data in a manner that conforms to the current period presentation. The prior year information in the below table has not been adjusted under the modified retrospective method of adoption of the new revenue recognition guidance. Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Revenue by Type: Motion Picture Theatrical $ 69.1 $ 57.9 $ 119.5 $ 108.7 Home Entertainment Digital Media 85.1 90.4 171.3 192.0 Packaged Media 64.5 75.3 141.0 207.7 Total Home Entertainment 149.6 165.7 312.3 399.7 Television 70.9 74.2 132.8 131.8 International 82.2 79.9 149.6 202.3 Other 7.2 8.0 30.1 15.5 Total Motion Picture revenues $ 379.0 $ 385.7 744.3 858.0 Television Production Television $ 85.1 $ 143.3 302.9 330.7 International 21.8 36.8 58.8 68.1 Home Entertainment Digital Media 27.0 25.1 43.3 66.7 Packaged Media 1.6 4.8 3.4 5.8 Total Home Entertainment 28.6 29.9 46.7 72.5 Other 16.6 1.2 23.1 1.1 Total Television Production revenues $ 152.1 $ 211.2 431.5 472.4 Media Networks Starz Networks - programming revenues $ 373.7 $ 358.6 724.9 701.8 Streaming Services - programming revenues 3.6 1.1 7.3 2.5 Total Media Networks revenues $ 377.3 $ 359.7 732.2 704.3 Intersegment eliminations (7.4 ) (15.8 ) (74.4 ) (88.6 ) Total revenues $ 901.0 $ 940.8 $ 1,833.6 $ 1,946.1 Remaining Performance Obligations Remaining performance obligations represent deferred revenue on the balance sheet plus fixed fee or minimum guarantee contracts where the revenue will be recognized and the cash received in the future (i.e., backlog). Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at September 30, 2018 are as follows: Rest of Year Ending March 31, 2019 Year Ended March 31, 2020 2021 Thereafter Total (Amounts in millions) Remaining Performance Obligations $ 950.7 $ 717.0 $ 241.7 $ 333.0 $ 2,242.4 The above table does not include estimates of variable consideration for transactions involving sales or usage-based royalties in exchange for licenses of intellectual property. The revenues included in the above table include all fixed fee contracts regardless of duration. Revenues of $33.7 million and $122.2 million , including variable and fixed fee arrangements, were recognized during the three and six months ended September 30, 2018, respectively, from performance obligations satisfied prior to March 31, 2018. These revenues were primarily associated with the distribution of television and theatrical product in electronic sell-through and video-on-demand formats, and to a lesser extent, the distribution of theatrical product in the domestic and international markets related to films initially released in prior periods. Payment Terms, Contract Assets and Deferred Revenue The timing of revenue recognition, billings and cash collections affects the recognition of accounts receivable, contract assets and deferred revenue. At September 30, 2018 and April 1, 2018, accounts receivable, contract assets and deferred revenue are as follows: September 30, April 1, Addition (Reduction) (Amounts in millions) Accounts receivable, net - current $ 1,059.0 $ 1,042.2 $ 16.8 Accounts receivable, net - non-current (1) 266.4 257.7 8.7 Contract asset - current (2) 19.9 78.3 (58.4 ) Contract asset - non-current (3) 12.1 71.5 (59.4 ) Deferred revenue - current 238.0 183.8 54.2 Deferred revenue - non-current 59.3 70.5 (11.2 ) __________________ (1) Included in accounts receivable within non-current other assets in the unaudited condensed consolidated balance sheets. (2) Included in prepaid expenses and other within other current assets in the unaudited condensed consolidated balance sheets. (3) Included in prepaid expenses and other within non-current other assets in the unaudited condensed consolidated balance sheets. Contract assets relate to the Company’s conditional right to consideration for completed performance under the contract (e.g., unbilled receivables). Amounts relate primarily to contractual payment holdbacks in cases in which the Company is required to deliver additional episodes or seasons of television content in order to receive payment, complete certain administrative activities, such as guild filings, or allow the Company's customers' audit rights to expire. The change in balance of contract assets is primarily due to the satisfaction of the condition related to payment holdbacks. Deferred revenue relates primarily to customer cash advances or deposits received prior to when the Company satisfies the corresponding performance obligation. Revenues of $33.0 million and $105.2 million were recognized during the three and six months ended September 30, 2018 , respectively, related to the balance of deferred revenue at April 1, 2018. Payment terms vary by location and type of customer and the nature of the licensing arrangement, however, other than certain multi-year license arrangements, generally payment is due within 60 days after revenue is recognized. For certain multi-year licensing arrangements, primarily in the television, digital media, and international markets, payments may be due over a longer period. When we expect the period between fulfillment of our performance obligation and the receipt of payment to be greater than a year, a significant financing component is present. In these cases, such payments are discounted to present value based on a discount rate reflective of a separate financing transaction between the customer and the Company, at contract inception. The significant financing component is recorded as a reduction to revenue and accounts receivable initially, with such accounts receivable discount amortized to interest income over the period to receipt of payment. The Company does not assess contracts with deferred payments for significant financing components if, at contract inception, we expect the period between fulfillment of the performance obligation and subsequent payment to be one year or less. In other cases, customer payments are made in advance of when the Company fulfills its performance obligation and recognizes revenue. This primarily occurs under television production contracts, in which payments may be received as the production progresses, international motion picture contracts, where a portion of the payments are received prior to the completion of the movie and prior to license rights start dates, and pay television contracts with multiple windows with a portion of the revenues deferred until the subsequent exploitation windows commence. These arrangements do not contain significant financing components because the reason for the payment structure is not for the provision of financing to the Company, but rather to mitigate the Company's risk of customer non-performance and incentivize the customer to exploit the Company's content. Summarized Balance Sheet and Income Statement Comparison of New and Prior Revenue Recognition Guidance The following table presents the line items impacted by the adoption of the new revenue recognition guidance (described in Note 1 ) on the unaudited condensed consolidated balance sheet and statement of operations: September 30, 2018 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Balance Sheet Information: (Amounts in millions) Assets Accounts receivable, net - current $ 1,059.0 $ (129.2 ) $ 929.8 Other assets - current 191.0 (19.8 ) 171.2 Other assets - non-current 439.6 (3.9 ) 435.7 Investment in films and television programs and program rights, net 1,662.9 35.2 1,698.1 Liabilities Accounts payable and accrued liabilities 585.9 (76.3 ) 509.6 Participations and residuals - current 494.3 (26.4 ) 467.9 Deferred revenue - current 238.0 (1.5 ) 236.5 Deferred revenue - non-current 59.3 2.3 61.6 Deferred tax liabilities 58.8 (3.1 ) 55.7 Equity Retained earnings 332.3 (12.7 ) 319.6 Three Months Ended September 30, 2018 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Statement of Operations Information: (Amounts in millions) Revenues $ 901.0 $ 16.1 $ 917.1 Direct operating 463.2 5.6 468.8 Operating income 39.1 10.5 49.6 Interest and other income 3.0 (0.2 ) 2.8 Loss before income taxes (175.3 ) 10.3 (165.0 ) Income tax benefit 26.0 (2.6 ) 23.4 Net loss (149.3 ) 7.7 (141.6 ) Six Months Ended September 30, 2018 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Statement of Operations Information: (Amounts in millions) Revenues $ 1,833.6 $ 13.2 $ 1,846.8 Direct operating 993.2 4.7 997.9 Operating income 77.2 8.5 85.7 Interest and other income 6.1 (0.3 ) 5.8 Loss before income taxes (192.4 ) 8.2 (184.2 ) Income tax benefit 31.8 (2.2 ) 29.6 Net loss (160.6 ) 6.0 (154.6 ) |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is calculated based on the weighted average common shares outstanding for the period. Basic net income (loss) per share for the three and six months ended September 30, 2018 and 2017 is presented below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions, except per share amounts) Basic Net Income (Loss) Per Common Share: Numerator: Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (144.1 ) $ 15.5 $ (151.9 ) $ 189.3 Denominator: Weighted average common shares outstanding 213.6 207.8 212.7 207.3 Basic net income (loss) per common share $ (0.67 ) $ 0.07 $ (0.71 ) $ 0.91 Diluted net income (loss) per common share reflects the potential dilutive effect, if any, of the conversion of convertible senior subordinated notes under the "if converted" method. Diluted net income (loss) per common share also reflects share purchase options, including equity-settled share appreciation rights ("SARs"), restricted share units ("RSUs") and restricted stock using the treasury stock method when dilutive, and any contingently issuable shares when dilutive. Diluted net income (loss) per common share for the three and six months ended September 30, 2018 and 2017 is presented below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions, except per share amounts) Diluted Net Income (Loss) Per Common Share: Numerator: Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (144.1 ) $ 15.5 $ (151.9 ) $ 189.3 Add: Interest on convertible notes, net of tax — 0.1 — 0.2 Numerator for diluted net income (loss) per common share $ (144.1 ) $ 15.6 $ (151.9 ) $ 189.5 Denominator: Weighted average common shares outstanding 213.6 207.8 212.7 207.3 Effect of dilutive securities: Conversion of notes — 2.1 — 2.1 Share purchase options — 7.4 — 6.9 Restricted share units and restricted stock — 0.8 — 0.7 Contingently issuable shares — 1.7 — 1.7 Adjusted weighted average common shares outstanding 213.6 219.8 212.7 218.7 Diluted net income (loss) per common share $ (0.67 ) $ 0.07 $ (0.71 ) $ 0.87 For the three and six months ended September 30, 2018 and 2017 , the outstanding common shares issuable presented below were excluded from diluted net income (loss) per common share because their inclusion would have had an anti-dilutive effect. Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Anti-dilutive shares issuable Conversion of notes — — 0.2 — Share purchase options 5.0 10.3 5.1 13.6 Restricted share units 0.3 0.1 0.3 0.1 Other issuable shares 3.0 1.1 2.6 1.3 Total weighted average anti-dilutive shares issuable excluded from diluted net income (loss) per common share 8.3 11.5 8.2 15.0 |
Capital Stock
Capital Stock | 6 Months Ended |
Sep. 30, 2018 | |
Equity and Share-based Compensation [Abstract] | |
Capital Stock | Capital Stock (a) Common Shares The Company had 500 million authorized Class A voting shares and 500 million authorized Class B non-voting shares at September 30, 2018 and March 31, 2018 . The table below outlines common shares reserved for future issuance: September 30, March 31, (Amounts in millions) Stock options and equity-settled SARs outstanding 33.8 32.1 Restricted stock and restricted share units — unvested 2.3 2.2 Common shares available for future issuance under the 2017 Plan (as defined below) 8.1 10.3 Shares issuable upon conversion of April 2013 1.25% Notes — 2.1 Shares reserved for future issuance 44.2 46.7 On September 12, 2017, the Company’s shareholders approved the Lions Gate Entertainment Corp. 2017 Performance Incentive Plan (the “2017 Plan”) previously adopted by the Board of Directors (the “Board”) of the Company. The types of awards that may be granted under the 2017 Plan include stock options, SARs, restricted stock, restricted share units, stock bonuses and other forms of awards granted or denominated in Class A voting shares and Class B non-voting shares ("Common Shares") or units of Common Shares, as well as certain cash bonus awards. Persons eligible to receive awards under the 2017 Plan include directors of the Company, officers or employees of the Company or any of its subsidiaries, and certain consultants and advisors to the Company or any of its subsidiaries. (b) Share-based Compensation The Company recognized the following share-based compensation expense during the three and six months ended September 30, 2018 , and 2017 : Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Compensation Expense: Stock options $ 6.7 $ 11.7 $ 13.5 $ 24.0 Restricted share units and other share-based compensation 7.2 9.9 13.9 20.2 Share appreciation rights 1.2 2.0 2.8 3.2 15.1 23.6 30.2 47.4 Tax impact (1) (3.4 ) (8.3 ) (6.9 ) (16.8 ) Reduction in net income $ 11.7 $ 15.3 $ 23.3 $ 30.6 ___________________ (1) Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements. Share-based compensation expense, by expense category, consisted of the following: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Share-Based Compensation Expense: Direct operating $ 0.3 $ 0.2 $ 0.5 $ 0.5 Distribution and marketing 0.1 0.2 0.1 0.4 General and administration 14.7 23.2 29.6 46.5 $ 15.1 $ 23.6 $ 30.2 $ 47.4 The following table sets forth the stock option, equity-settled SARs, restricted stock and restricted share unit activity during the six months ended September 30, 2018 : Stock Options and Equity-Settled SARs Restricted Stock and Restricted Share Units Class A Voting Shares Class B Non-Voting Shares Class A Voting Shares Class B Non-Voting Shares Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Grant-Date Fair Value Number of Shares Weighted-Average Grant-Date Fair Value Outstanding at March 31, 2018 8,636,437 $26.93 23,463,115 $20.56 230,561 $28.49 2,001,049 $27.97 Granted 130,832 $25.96 2,508,991 $23.91 15,939 $23.19 594,476 $23.15 Options exercised or restricted stock or RSUs vested (18,719 ) $21.85 (262,981 ) $15.18 (121,651 ) $29.89 (291,750 ) $28.17 Forfeited or expired (229,138 ) $35.25 (448,511 ) $30.83 (11,823 ) $25.69 (77,763 ) $27.35 Outstanding at September 30, 2018 8,519,412 $26.70 25,260,614 $20.78 113,026 $26.53 2,226,012 $26.68 (c) Dividends On September 14, 2018, the Company's Board of Directors declared a quarterly cash dividend of $0.09 per each of the Company’s Class A voting shares and the Company’s Class B non-voting shares, payable November 8, 2018, to shareholders of record as of September 30, 2018. As of September 30, 2018, the Company had $19.4 million of cash dividends payable included in accounts payable and accrued liabilities on the unaudited condensed consolidated balance sheet. (d) Other In connection with an amendment of an affiliation agreement with a customer and effective upon the close of the Starz merger (December 8, 2016), Lionsgate agreed to issue to the customer three $16.67 million annual installments of equity (or cash at Lionsgate's election). The total value of the contract of $50 million is being amortized as a reduction of revenue over the period from December 8, 2016 to August 31, 2019. During the year ended March 31, 2018, Lionsgate issued to the customer 266,667 Class A voting shares valued at $8.3 million and 278,334 Class B non-voting shares valued at $8.3 million . |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the Tax Act was signed into law, making significant changes to the taxation of U.S. business entities. The Tax Act reduced the U.S. corporate income tax rate from 35% to 21% , imposed a one-time transition tax in connection with the move from a worldwide tax system to a territorial tax system, provided for accelerated deductions for certain U.S. film production costs, imposed limitations on certain tax deductions such as executive compensation in future periods, and included numerous other provisions. As the Company has a March 31 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of approximately 31.5% for the fiscal year ended March 31, 2018, and 21% for subsequent fiscal years. The Company's U.S. tax provision consists primarily of deferred tax benefits calculated at the 21% tax rate. In connection with the Tax Act, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance to companies that have not completed their accounting for the income tax effects of the Tax Act. Under SAB 118, provisional amounts can be recorded to the extent a reasonable estimate can be made. Additional tax effects and adjustments to previously recorded provisional amounts can be recorded upon obtaining, preparing, or analyzing additional information (including computations) within one year from the enactment date of the Tax Act. The Company is currently in the process of evaluating the full impact of the Tax Act on its financial statements and has not completed this evaluation. The Company has made provisional estimates of other effects of the Tax Act, such as the measurement of deferred tax assets and liabilities, the tax effects of executive compensation, the one-time transition tax, net operating loss carryovers, foreign tax credits, and accelerated deductions for U.S. film costs. The estimated impact of the Tax Act is based on a preliminary review of the new law and is subject to revision based upon further analysis and interpretation of the Tax Act. The Company will complete its accounting for the Tax Act once the Company has obtained, prepared, and analyzed all information needed (including computations) for its analysis, but no later than one year from the enactment date of the Tax Act. For the quarters ended September 30, 2018 and 2017, the Company determined that a small change in its estimated pretax results for the years ending March 31, 2019 and 2018, respectively, would create a large change in its expected annual effective rate. Accordingly, it was determined that a reliable estimate of the expected annual effective tax rate could not be made. As a result, the Company computed its tax benefit using the cut-off method, which reflects the actual taxes attributable to year-to-date earnings or losses. The Company's income tax benefit differs from the federal statutory rate multiplied by pre-tax income (loss) due to the mix of the Company's pre-tax income (loss) generated across the various jurisdictions in which the Company operates and the tax deductions generated by the Company's capital structure. In addition, the Company's income tax benefit was impacted by certain minimum taxes imposed by the Tax Act and the nondeductible portion of the Company's shareholder litigation settlements. The Company's income tax benefit can be affected by many factors, including the overall level of pre-tax income, the mix of pre-tax income generated across the various jurisdictions in which the Company operates, changes in tax laws and regulations in those jurisdictions, further interpretation and legislative guidance regarding the new Tax Act, changes in valuation allowances on its deferred tax assets, tax planning strategies available to the Company, and other discrete items. |
Restructuring and Other
Restructuring and Other | 6 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | Restructuring and Other Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable, and were as follows for the three and six months ended September 30, 2018 and 2017 : Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Restructuring and other: Severance (1) $ 2.9 $ — $ 3.7 $ 1.0 Transaction and related costs (2) 12.1 3.5 21.9 13.4 $ 15.0 $ 3.5 $ 25.6 $ 14.4 _______________________ (1) Severance costs in the three and six months ended September 30, 2018 and the six months ended September 30, 2017 were primarily related to restructuring activities in connection with recent acquisitions, and other cost-saving initiatives. As of September 30, 2018 , the remaining severance liability was approximately $7.0 million , which is expected to be paid in the next 12 months. (2) Transaction and related costs in the three and six months ended September 30, 2018 and 2017 reflect transaction, integration and legal costs associated with certain strategic transactions and legal matters. In the three and six months ended September 30, 2018 , these costs were primarily related to the legal fees associated with the Starz class action lawsuits and other matters, and to a lesser extent, costs related to the acquisition of 3 Arts Entertainment and other strategic transactions. In the three and six months ended September 30, 2017 , these costs were primarily related to the sale of EPIX (see Note 4 ), the legal fees associated with the Starz class action lawsuits and other matters, and the integration of Starz. Changes in the restructuring and other severance liability were as follows for the six months ended September 30, 2018 and 2017: Six Months Ended September 30, 2018 2017 (Amounts in millions) Severance liability Beginning balance $ 14.7 $ 22.2 Accruals 3.7 1.0 Severance payments (11.4 ) (12.1 ) Ending balance $ 7.0 $ 11.1 |
Segment Information
Segment Information | 6 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s reportable segments have been determined based on the distinct nature of their operations, the Company's internal management structure, and the financial information that is evaluated regularly by the Company's chief operating decision maker. The Company has three reportable business segments: (1) Motion Picture, (2) Television Production and (3) Media Networks. Segment Reorganization. During the quarter ended June 30, 2018, the Company reorganized its operational reporting of the Television Production segment to include the production and licensing to Starz Networks of Starz original series (previously produced by and included in the Media Networks segment) and the ancillary market distribution of Starz original productions and licensed product (also previously included in the Media Networks segment). This reorganization aligns the segment presentation of the Starz original product to be consistent with the Company's other television productions included in the Television Production segment. This alignment of operational reporting and business operations will allow our chief operating decision maker to review all of the Company's television production related activity in a consistent manner, and as part of one segment (i.e., the Television Production segment). The changes resulting from the segment reorganization are as follows: (i) the Television Production segment includes licensing revenues from the licensing of Starz original series productions to Starz Networks which are eliminated in consolidation as intersegment transactions; and (ii) the Television Production segment now includes the associated ancillary market distribution of Starz original productions and licensed product that were previously included in Content and Other within the Media Networks segment. As a result of the segment reorganization, the Company has presented prior period segment data in a manner that conforms to the current period presentation. Motion Picture. Motion Picture consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired. Television Production. Television Production consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series, and non-fiction programming. As described under the Segment Reorganization section above, as of April 1, 2018, Television Production now includes the licensing of Starz original series productions to Starz Networks and the ancillary market distribution of Starz original productions and licensed product. Additionally, the results of operations of 3 Arts Entertainment is included in the Television Production segment from the acquisition date of May 29, 2018 (see Note 2 ). Media Networks. Media Networks consists of (i) Starz Networks, which includes the licensing of premium subscription video programming to Distributors, and on a direct-to-consumer basis and (ii) Streaming Services, which represents the Lionsgate legacy start-up direct to consumer streaming services on its SVOD platforms. In the ordinary course of business, the Company's reportable segments enter into transactions with one another. The most common types of intersegment transactions include licensing motion pictures or television programming (including Starz original productions) from the Motion Picture and Television Production segments to the Media Networks segment. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses, assets, or liabilities recognized by the segment that is the counterparty to the transaction) are eliminated in consolidation and, therefore, do not affect consolidated results. Segment information by business unit is presented in the table below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Segment revenues Motion Picture $ 379.0 $ 385.7 $ 744.3 $ 858.0 Television Production 152.1 211.2 431.5 472.4 Media Networks 377.3 359.7 732.2 704.3 Intersegment eliminations (7.4 ) (15.8 ) (74.4 ) (88.6 ) $ 901.0 $ 940.8 $ 1,833.6 $ 1,946.1 Intersegment revenues Motion Picture $ 2.2 $ 2.5 $ 4.3 $ 5.9 Television Production 5.2 13.3 70.0 82.4 Media Networks — — 0.1 0.3 $ 7.4 $ 15.8 $ 74.4 $ 88.6 Gross contribution Motion Picture $ 38.9 $ 35.2 $ 117.7 $ 149.1 Television Production 20.4 28.9 46.1 80.9 Media Networks 147.4 127.8 261.6 242.3 Intersegment eliminations 9.1 3.4 (2.3 ) (8.4 ) $ 215.8 $ 195.3 $ 423.1 $ 463.9 Segment general and administration Motion Picture $ 26.0 $ 26.3 $ 52.8 $ 53.2 Television Production 11.0 10.6 21.5 19.7 Media Networks 24.7 24.5 50.3 50.2 $ 61.7 $ 61.4 $ 124.6 $ 123.1 Segment profit Motion Picture $ 12.9 $ 8.9 $ 64.9 $ 95.9 Television Production 9.4 18.3 24.6 61.2 Media Networks 122.7 103.3 211.3 192.1 Intersegment eliminations 9.1 3.4 (2.3 ) (8.4 ) $ 154.1 $ 133.9 $ 298.5 $ 340.8 Segment profit is defined as gross contribution (segment revenues, less segment direct operating and distribution and marketing expense) less segment general and administration expenses. Segment direct operating expenses, distribution and marketing expenses and general and administrative expenses exclude share-based compensation, other than annual bonuses granted in stock, and include annual bonuses paid in cash. Segment profit excludes purchase accounting and related adjustments. The reconciliation of total segment profit to the Company’s income (loss) before income taxes is as follows: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Company’s total segment profit $ 154.1 $ 133.9 $ 298.5 $ 340.8 Corporate general and administrative expenses (25.3 ) (25.3 ) (52.8 ) (50.7 ) Adjusted depreciation and amortization (1) (10.0 ) (9.3 ) (20.3 ) (19.4 ) Restructuring and other (2) (15.0 ) (3.5 ) (25.6 ) (14.4 ) Adjusted share-based compensation expense (3) (15.1 ) (23.6 ) (30.2 ) (47.4 ) Purchase accounting and related adjustments (4) (49.6 ) (41.8 ) (92.4 ) (88.8 ) Operating income 39.1 30.4 77.2 120.1 Interest expense (55.5 ) (48.7 ) (106.8 ) (101.0 ) Shareholder litigation settlements (5) (114.1 ) — (114.1 ) — Interest and other income 3.0 2.7 6.1 5.5 Loss on extinguishment of debt — (6.4 ) — (18.0 ) Gain (loss) on investments (36.1 ) — (37.0 ) 201.0 Equity interests loss (11.7 ) (12.7 ) (17.8 ) (21.0 ) Income (loss) before income taxes $ (175.3 ) $ (34.7 ) $ (192.4 ) $ 186.6 ___________________ (1) Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Depreciation and amortization $ 40.8 $ 39.3 $ 81.1 $ 79.3 Less: Amount included in purchase accounting and related adjustments (30.8 ) (30.0 ) (60.8 ) (59.9 ) Adjusted depreciation and amortization $ 10.0 $ 9.3 $ 20.3 $ 19.4 (2) Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 14 ). (3) Represents share-based compensation expense excluding, when applicable, amounts attributable to immediately vested stock bonus awards (which are, when granted, included in segment and corporate general and administrative expense) and amounts related to severance awards included in restructuring and other. There were no such amounts in the three and six months ended September 30, 2018 and 2017, and accordingly, adjusted share-based compensation expense represents total share-based compensation expense in the three and six months ended September 30, 2018 and 2017. (4) Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 5.6 $ 10.2 $ 13.6 $ 26.0 General and administrative expense 13.2 1.6 18.0 2.9 Depreciation and amortization 30.8 30.0 60.8 59.9 $ 49.6 $ 41.8 $ 92.4 $ 88.8 (5) Shareholder litigation settlements of $114.1 million in the three and six months ended September 30, 2018 includes the following: (i) $54.8 million for the net expense recorded for the settlement of the Fiduciary Litigation (representing the settlement amount of $92.5 million , which the Company has included in accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheet, net of aggregate insurance reimbursement of $37.8 million , which amount the Company has recorded a receivable included in the "other current assets" line item in the unaudited condensed consolidated balance sheet as of September 30, 2018) and (ii) $59.3 million related to the Appraisal Litigation, representing the amount by which the settlement amount of approximately $961 million exceeds the previously accrued $901.9 million dissenting shareholders' liability, before considering the settlement (i.e., dissenting shareholders' liability plus accrued interest through September 30, 2018). See Note 16 . See Note 10 for revenues by media or product line as broken down by segment for the three and six months ended September 30, 2018 and 2017 . The following table reconciles segment general and administration expense to the Company's total consolidated general and administration expense: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) General and administration Segment general and administrative expenses $ 61.7 $ 61.4 $ 124.6 $ 123.1 Corporate general and administrative expenses 25.3 25.3 52.8 50.7 Share-based compensation expense included in general and administrative expense 14.8 23.2 29.7 46.5 Purchase accounting and related adjustments 13.2 1.6 18.0 3.0 $ 115.0 $ 111.5 $ 225.1 $ 223.3 The reconciliation of total segment assets to the Company’s total consolidated assets is as follows: September 30, March 31, (Amounts in millions) Assets Motion Picture $ 1,826.4 $ 1,757.4 Television Production 1,500.8 1,400.5 Media Networks 5,085.6 5,166.5 Other unallocated assets (1) 636.6 643.2 $ 9,049.4 $ 8,967.6 _____________________ (1) Other unallocated assets primarily consist of cash, other assets and investments. |
Contingencies
Contingencies | 6 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies From time to time, the Company is involved in certain claims and legal proceedings arising in the normal course of business. In addition, the matters discussed below under the captions Fiduciary Litigation and Appraisal have arisen in connection with the Starz merger. The Company establishes an accrued liability for legal claims when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Due to the inherent difficulty of predicting the outcome of litigation and claims, the Company often cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, if any, related to each pending matter may be. Accordingly, at this time, the Company has determined a loss related to these matters in excess of accrued liabilities is reasonably possible, however a reasonable estimate of the possible loss or range of loss cannot be made at this time. Fiduciary Litigation Between July 19, 2016 and August 30, 2016, seven putative class action complaints were filed by purported Starz stockholders in the Court of Chancery of the State of Delaware (the "Fiduciary Litigation"). These actions have been consolidated into In re Starz Stockholder Litigation , Consolidated C.A. No. 12584-VCG, and the plaintiffs in the consolidated action filed a verified consolidated class action complaint on August 16, 2016. On August 18, 2016, plaintiffs filed a motion for expedited proceedings. On September 22, 2016, the court denied the motion. The defendants filed answers to the verified consolidated class action complaint on January 24, 2017. On May 16, 2018, the plaintiffs filed a verified amended consolidated class action complaint. The amended complaint names as defendants former members of the board of directors of Starz Susan Lyne, Andrew Heller, Greg Maffei, Christopher Albrecht, Daniel E. Sanchez, and Charles Y. Tanabe. The amended complaint also names as defendants Dr. Malone and Lions Gate. The amended complaint alleges, among other things, that the members of the Starz board of directors breached fiduciary duties owed to Starz and the holders of Starz Series A common stock in connection with the merger and related transactions; that Dr. Malone was a controlling stockholder of Starz who breached fiduciary duties owed to other Starz stockholders in connection with the merger and related transactions; and that Lions Gate aided and abetted such breaches of fiduciary duty. On June 18, 2018, the defendants (except Mr. Heller and Ms. Lyne) filed answers to the amended complaint. On July 3, 2018, Mr. Heller and Ms. Lyne filed a motion seeking summary judgment on the claims against them. On August 9, 2016, a putative class action complaint was filed by a purported Starz stockholder in the District Court for the City and County of Denver, Colorado: Gross v. John C. Malone, et al. , 2016-CV-32873. The complaint names as defendants the members of the board of directors of Starz, Dr. Malone and Robert Bennett, as well as Lions Gate and an affiliated entity. The complaint alleges, among other things, that the members of the Starz board of directors breached fiduciary duties owed to Starz and the holders of Starz Series A common stock in connection with the merger and the transactions contemplated by the merger agreement, and that Dr. Malone, Mr. Bennett, Lions Gate, and Merger Sub aided and abetted such breaches of fiduciary duty. On December 10, 2016, the court granted the defendants’ unopposed motion to stay the action pending final resolution of the consolidated Delaware action. As disclosed in the Company's Current Report on Form 8-K filed on August 24, 2018, on August 22, 2018, the parties to the Fiduciary Litigation reached an agreement in principle providing for the settlement of the Fiduciary Litigation on the terms and conditions set forth in an executed term sheet. On October 9, 2018, the parties to the Litigation executed a stipulation of settlement, which was filed with the court (the "Stipulation"). The Stipulation provides for, among other things, the final dismissal of the Fiduciary Litigation in exchange for a settlement payment made in the amount of $92.5 million , which the Company has included in accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheet as of September 30, 2018. The Company has also reached agreements with certain insurance carriers for aggregate insurance reimbursement of $37.8 million , which amount the Company has recorded as a receivable included in the "other current assets" line item in the unaudited condensed consolidated balance sheet as of September 30, 2018, and the Company is continuing to seek additional insurance reimbursement, including pursuant to a lawsuit submitted by the Company on November 7, 2018 against certain insurers. Accordingly, the Company has recorded the net expense of $54.8 million in the "shareholder litigation settlements" line item in the unaudited condensed consolidated statement of operations related to these items. The settlement of the Fiduciary Litigation is subject to the final approval of the Court of Chancery of the State of Delaware. In addition, the settlement of the Fiduciary Litigation is not contingent or dependent in any way on, and does not release or resolve claims for, the separate statutory appraisal action brought by petitioners in the Appraisal Litigation, described below. On November 5, 2018, an insurer that entered into an agreement to contribute $10 million to the Company's aggregate insurance reimbursement filed a lawsuit seeking declaratory judgment for reimbursement of its agreed upon payment. The Company believes the lawsuit to be without merit and intends to vigorously defend it. Appraisal Between December 8, 2016 and March 16, 2017, five verified petitions for appraisal (representing approximately 22.5 million shares of Starz Series A common stock) were filed by purported Starz stockholders in the Court of Chancery of the State of Delaware (the "Appraisal Litigation"). These actions have been consolidated into In re Starz Appraisal , Consolidated C.A. No. 12968-VCG. On November 8, 2018, the parties to the Appraisal Litigation entered into a settlement agreement that provides for, among other things, the final dismissal of the Appraisal Litigation in exchange for a settlement payment made by the Company of approximately $961 million . The dissenting shareholders' liability at September 30, 2018 for the Appraisal Litigation, before considering the settlement, would have amounted to $901.9 million , representing the June 30, 2018 accrued liability of $885.2 million (including $87.9 million of previously accrued interest) plus approximately $16.7 million of interest for the quarter ended September 30, 2018. Accordingly, the Company has recorded a shareholder litigation charge of $59.3 million , representing the amount by which the settlement amount exceeds the previously accrued liability, and which is included in the "shareholder litigation settlements" line item in the unaudited condensed consolidated statement of operations for the three and six months ended September 30, 2018. The settlement of the Appraisal Litigation is subject to the final approval of the Court of Chancery of the State of Delaware. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Forward Foreign Exchange Contracts The Company enters into forward foreign exchange contracts to hedge its foreign currency exposures on future production expenses and tax credit receivables denominated in various foreign currencies (i.e., cash flow hedges). The Company also enters into forward foreign exchange contracts that economically hedge certain of its foreign currency risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. Changes in the fair value of the foreign exchange contracts that are designated as hedges are reflected in accumulated other comprehensive income (loss), and changes in the fair value of foreign exchange contracts that are not designated as hedges and do not qualify for hedge accounting are recorded in direct operating expense. Gains and losses realized upon settlement of the foreign exchange contracts that are designated as hedges are amortized to direct operating expense on the same basis as the production expenses being hedged. As of September 30, 2018 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 17 months from September 30, 2018 ): September 30, 2018 Foreign Currency Foreign Currency Amount US Dollar Amount Weighted Average Exchange Rate Per $1 USD (Amounts in millions) (Amounts in millions) British Pound Sterling £5.1 in exchange for $7.1 £0.72 Canadian Dollar C$25.8 in exchange for $20.4 C$1.27 Australian Dollar A$5.1 in exchange for $3.9 A$1.29 Interest Rate Swaps The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows. The Company primarily uses pay-fixed interest rate swaps to facilitate its interest rate risk management activities, which the Company designates as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed swaps effectively convert floating-rate borrowings to fixed-rate borrowings. The unrealized gains or losses from these cash flow hedges are deferred in accumulated other comprehensive income (loss) and recognized in interest expense as the interest payments occur. As of September 30, 2018 and March 31, 2018, the total notional amount of the Company’s pay-fixed interest rate swaps was $1.5 billion and nil , respectively. The major terms of the Company's interest rate swap agreements as of September 30, 2018 are as follows (all related to the Company's LIBOR-based debt, see Note 6 ): Effective Date Notional Amount (in millions) Fixed Rate Paid Maturity Date May 23, 2018 $1,000.0 2.915% March 24, 2025 June 25, 2018 $200.0 2.723% March 23, 2025 July 31, 2018 $300.0 2.885% March 23, 2025 The following table presents the effect of the Company's derivatives on the accompanying consolidated statements of operations and comprehensive income (loss) for the three and six months ended September 30, 2018 and 2017: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in accumulated other comprehensive income (loss) $ 0.4 $ (0.8 ) $ 0.4 $ (0.1 ) Gain reclassified from accumulated other comprehensive income (loss) into direct operating expense $ 0.1 $ — $ 0.2 $ — Interest rate swap agreements Gain recognized in accumulated other comprehensive income (loss) $ 12.2 $ — $ 5.4 $ — Loss reclassified from accumulated other comprehensive income (loss) into interest expense (2.9 ) — (3.9 ) — Derivatives not designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in direct operating expense $ — $ 0.2 $ (0.7 ) $ 0.2 Total direct operating expense on consolidated statements of operations $ 463.2 $ 521.6 $ 993.2 $ 1,076.4 Total interest expense on consolidated statements of operations (1) $ 38.8 $ 34.8 $ 74.2 $ 73.8 ________________ (1) Represents interest expense before interest on dissenting shareholders' liability. The Company classifies its forward foreign exchange contracts and interest rate contracts within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments (see Note 8 ). As of September 30, 2018 and March 31, 2018 , the Company had the following amounts recorded in the accompanying consolidated balance sheets related to the Company's use of derivatives: September 30, 2018 Other Current Assets Other Non-Current Assets Accounts Payable and Accrued Liabilities Other Non-Current Liabilities (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 0.8 $ — $ 0.5 $ — Interest rate swap agreements — 5.4 — — Fair value of derivatives $ 0.8 $ 5.4 $ 0.5 $ — March 31, 2018 Other Current Assets Accounts Payable and Accrued Liabilities (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 0.3 $ 0.6 Fair value of derivatives $ 0.3 (1) $ 0.6 (1) _____________ (1) Includes an immaterial amount of forward foreign exchange contracts not designated as hedging instruments as of March 31, 2018. As of September 30, 2018 , based on the current release schedule, the Company estimates approximately $0.8 million of losses associated with forward foreign exchange contract cash flow hedges in accumulated other comprehensive loss to be reclassified into earnings during the one-year period ending September 30, 2019. As of September 30, 2018 , the Company estimates approximately $4.2 million of losses recorded in accumulated other comprehensive loss associated with interest rate swap agreement cash flow hedges will be reclassified into interest expense during the one-year period ending September 30, 2019. |
Additional Financial Informatio
Additional Financial Information | 6 Months Ended |
Sep. 30, 2018 | |
Additional Financial Information [Abstract] | |
Additional Financial Information | Additional Financial Information The following tables present supplemental information related to the unaudited condensed consolidated financial statements. Other Assets The composition of the Company’s other assets is as follows as of September 30, 2018 and March 31, 2018: September 30, March 31, (Amounts in millions) Other current assets Prepaid expenses and other $ 64.0 $ 34.1 Product inventory 20.8 20.3 Tax credits receivable 106.2 141.4 $ 191.0 $ 195.8 Other non-current assets Prepaid expenses and other $ 52.1 $ 23.8 Accounts receivable 266.4 325.2 Tax credits receivable 121.1 109.6 $ 439.6 $ 458.6 Cash, Cash Equivalents and Restricted Cash There was no restricted cash in the unaudited condensed consolidated balance sheets as of September 30, 2018 or March 31, 2018. Supplemental Cash Flow Information The supplemental schedule of non-cash investing and financing activities is presented below: Six Months Ended September 30, 2018 2017 (Amounts in millions) Non-cash investing activities: Common shares related to business acquisitions (see Note 2) $ 83.7 $ — Non-cash financing activities: Accrued dividends $ 19.4 $ — |
General (Policies)
General (Policies) | 6 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Lionsgate and all of its majority-owned and controlled subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to quarterly report on Form 10-Q under the Securities Exchange Act of 1934, as amended, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these unaudited condensed consolidated financial statements. Operating results for the three and six months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2019. The balance sheet at March 31, 2018 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read together with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2018 , as updated by the Current Report on Form 8-K filed with the SEC on October 15, 2018. Certain amounts presented in prior periods have been reclassified to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs; the allocations made in connection with the amortization of program rights; estimates of sales returns and other allowances and provisions for doubtful accounts; estimates related to the recognition of sales or usage-based royalties; fair value of equity-based compensation; fair value of assets and liabilities for allocation of the purchase price of companies acquired; income taxes including the assessment of valuation allowances for deferred tax assets; accruals for contingent liabilities; and impairment assessments for investment in films and television programs, property and equipment, equity investments, goodwill and intangible assets. Actual results could differ from such estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Guidance Adopted in Fiscal 2019 Revenue Recognition : On April 1, 2018, the Company adopted, on a modified retrospective basis, accounting guidance that establishes a new revenue recognition framework in U.S. GAAP for all companies and industries. The core principle of the new revenue framework is that an entity should recognize revenue from the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive for those goods or services. The revenue framework includes a five-step model to determine the timing and amount of revenue to recognize related to contracts with customers. The adoption of the new accounting guidance did not result in significant changes to the Company's reported operating results. The Company recorded a transition adjustment for all open contracts existing as of April 1, 2018, of $18.7 million as an increase to the opening balance of retained earnings related principally to the areas noted below: Sales or Usage Based Royalties: The Company currently receives royalties from certain domestic and international distributors and other transactional digital distribution partners based on the sales made by these distributors after recoupment of a minimum guarantee, if applicable. Under prior guidance, the Company recorded these sales or usage based royalties after receiving statements from the licensee and/or film distributor. Under the new guidance, revenues are recorded based on best estimates available of the amounts due to the Company in the period of the customer's sales or usage. Accordingly, the timing of the revenue recognition is accelerated; however, the Company continues to have a consistent number of periods of sales or usage based royalties in each reporting period, and therefore the impact of the new guidance depends on the timing and performance of the titles released in those reporting periods. This change primarily impacts the Motion Picture and Television Production segments. Renewals of Licenses of Intellectual Property: Under the prior guidance, when the term of an existing license agreement was extended, without any other changes to the provisions of the license, revenue for the renewal period was recognized when the agreement was renewed or extended. Under the new guidance, revenue associated with renewals or extensions of existing license agreements is recognized as revenue when the licensed content becomes available for the customer to use and benefit from under the renewal or extension. This change impacts the timing of revenue recognition (i.e., revenue is recorded at a later time) as compared with prior revenue recognition guidance. While revenues from renewal do occur, they are not a significant portion of our revenue and thus do not have a material impact on our revenue recognition. This change primarily impacts the Motion Picture and Television Production segments. Also, under the new guidance, the Company presents sales returns and certain sales incentive allowances as refund liabilities instead of as contra asset allowances within accounts receivable. On April 1, 2018, the liabilities for such sales returns and incentives were $86.9 million and were recorded in accounts payable and accrued liabilities on the unaudited condensed consolidated balance sheet. Changes to the opening balances of current assets, total assets, current liabilities and total liabilities resulting from the adoption of the new guidance were as follows: March 31, 2018 Impact of Adoption April 1, 2018 (Amounts in millions) Current assets $ 1,773.1 $ 174.4 $ 1,947.5 Total assets $ 8,967.6 $ 143.6 $ 9,111.2 Current liabilities $ 2,412.4 $ 104.1 $ 2,516.5 Total liabilities $ 5,708.9 $ 124.9 $ 5,833.8 For further information, including the impact of adoption of the new guidance on the current period, see Note 10 . Recognition and Measurement of Financial Instruments : In January 2016, the Financial Accounting Standards Board ("FASB") issued new guidance that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other provisions, the new guidance requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. For investments without readily determinable fair values, entities have the option to either measure these investments at fair value or at cost adjusted for changes in observable prices minus impairment. The guidance is effective for the Company's fiscal year beginning April 1, 2018. Upon adoption of the new guidance, the Company recorded a transition adjustment of $2.6 million to reclassify the unrealized gains recorded through March 31, 2018 for the Company's available-for-sale investments with a readily determinable fair market value (i.e., Next Games) from accumulated other comprehensive loss to retained earnings. After adoption of the new guidance, changes in the fair value of the Company's available-for-sale investments with a readily determinable fair market value will be recognized in net income. The adoption of the new guidance will also impact the accounting for the Company's cost method investments, which will now be measured at cost less any impairment, adjusted for observable price changes in orderly transactions in the investees' securities that are identical or similar to the Company's investments in the investee. The impact of this change will depend on the nature and extent of changes in observable prices, if any. See Note 4 . Restricted Cash : In November 2016, the FASB issued guidance to clarify how entities should present restricted cash and restricted cash equivalents in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. This guidance became effective for the Company as of April 1, 2018, and has been applied on a retrospective basis. Upon adoption, in the unaudited condensed consolidated statement of cash flows for the six months ended September 30, 2017 , cash provided by operating activities was reduced by $2.8 million , and beginning cash and cash equivalents was increased by $2.8 million to include restricted cash. There was no restricted cash in the unaudited condensed consolidated balance sheets as of September 30, 2018 or March 31, 2018. Accounting Guidance Not Yet Adopted Accounting for Leases : In February 2016, the FASB issued guidance on accounting for leases which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The new guidance also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. The guidance is effective for the Company's fiscal year beginning April 1, 2019, with early adoption permitted, and is required to be implemented using a modified retrospective approach. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements; however, the Company currently believes the most significant change will be related to the increases in assets and liabilities for the recognition of right-of-use assets and lease liabilities on the Company's balance sheet for its operating leases. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income : In February 2018, the FASB issued guidance that permits a company to reclassify the income tax effects of the Tax Act on items in accumulated other comprehensive income to retained earnings, eliminating the stranded tax effects resulting from the Tax Act. The new guidance only applies to the tax effects resulting from the Tax Act, and does not change the underlying guidance to recognize the effect of a change in tax laws or rates in income from continuing operations. This guidance is effective for the Company's fiscal year beginning April 1, 2019, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements. Disclosure Update and Simplification: In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification , amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of shareholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of shareholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule is effective for the first quarter of the Company's fiscal year beginning April 1, 2019. Fair Value Measurement - Changes to Disclosure Requirements : In August 2018, the FASB issued guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements. This guidance eliminates the requirement that entities disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but requires public companies to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements, among other changes. This guidance is effective for the Company's fiscal year beginning April 1, 2020, with early adoption permitted. The Company does not expect that the adoption of this guidance will have a material effect on its consolidated financial statements. |
Net Income Per Share | Diluted net income (loss) per common share reflects the potential dilutive effect, if any, of the conversion of convertible senior subordinated notes under the "if converted" method. Diluted net income (loss) per common share also reflects share purchase options, including equity-settled share appreciation rights ("SARs"), restricted share units ("RSUs") and restricted stock using the treasury stock method when dilutive, and any contingently issuable shares when dilutive. Basic net income (loss) per share is calculated based on the weighted average common shares outstanding for the period. |
General (Tables)
General (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Changes to the opening balances of current assets, total assets, current liabilities and total liabilities resulting from the adoption of the new guidance were as follows: March 31, 2018 Impact of Adoption April 1, 2018 (Amounts in millions) Current assets $ 1,773.1 $ 174.4 $ 1,947.5 Total assets $ 8,967.6 $ 143.6 $ 9,111.2 Current liabilities $ 2,412.4 $ 104.1 $ 2,516.5 Total liabilities $ 5,708.9 $ 124.9 $ 5,833.8 The following table presents the line items impacted by the adoption of the new revenue recognition guidance (described in Note 1 ) on the unaudited condensed consolidated balance sheet and statement of operations: September 30, 2018 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Balance Sheet Information: (Amounts in millions) Assets Accounts receivable, net - current $ 1,059.0 $ (129.2 ) $ 929.8 Other assets - current 191.0 (19.8 ) 171.2 Other assets - non-current 439.6 (3.9 ) 435.7 Investment in films and television programs and program rights, net 1,662.9 35.2 1,698.1 Liabilities Accounts payable and accrued liabilities 585.9 (76.3 ) 509.6 Participations and residuals - current 494.3 (26.4 ) 467.9 Deferred revenue - current 238.0 (1.5 ) 236.5 Deferred revenue - non-current 59.3 2.3 61.6 Deferred tax liabilities 58.8 (3.1 ) 55.7 Equity Retained earnings 332.3 (12.7 ) 319.6 Three Months Ended September 30, 2018 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Statement of Operations Information: (Amounts in millions) Revenues $ 901.0 $ 16.1 $ 917.1 Direct operating 463.2 5.6 468.8 Operating income 39.1 10.5 49.6 Interest and other income 3.0 (0.2 ) 2.8 Loss before income taxes (175.3 ) 10.3 (165.0 ) Income tax benefit 26.0 (2.6 ) 23.4 Net loss (149.3 ) 7.7 (141.6 ) Six Months Ended September 30, 2018 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Statement of Operations Information: (Amounts in millions) Revenues $ 1,833.6 $ 13.2 $ 1,846.8 Direct operating 993.2 4.7 997.9 Operating income 77.2 8.5 85.7 Interest and other income 6.1 (0.3 ) 5.8 Loss before income taxes (192.4 ) 8.2 (184.2 ) Income tax benefit 31.8 (2.2 ) 29.6 Net loss (160.6 ) 6.0 (154.6 ) |
Investment In Films and Telev_2
Investment In Films and Television Programs and Program Rights (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Investment In Films And Television Programs and Program Rights [Abstract] | |
Investment In Films And Television Programs and Program Rights | September 30, March 31, 2018 (1) (Amounts in millions) Motion Picture Segment - Theatrical and Non-Theatrical Films Released, net of accumulated amortization $ 417.4 $ 410.5 Acquired libraries, net of accumulated amortization 1.6 2.1 Completed and not released 93.3 55.0 In progress 268.4 347.2 In development 23.0 24.6 803.7 839.4 Television Production Segment - Direct-to-Television Programs Released, net of accumulated amortization 188.8 238.9 In progress 239.2 186.6 In development 9.9 4.8 437.9 430.3 Media Networks Segment Released program rights, net of accumulated amortization 530.7 616.9 In progress 114.2 45.6 In development 52.8 30.0 697.7 692.5 Intersegment eliminations (42.2 ) (17.0 ) Investment in films and television programs and program rights, net 1,897.1 1,945.2 Less current portion of program rights (234.2 ) (253.2 ) Non-current portion $ 1,662.9 $ 1,692.0 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments, Cost Method Investments, and Investments in Debt and Equity [Abstract] | |
Carrying Amount of Investments, By Category | The carrying amounts of investments, by category, at September 30, 2018 and March 31, 2018 were as follows: September 30, March 31, (Amounts in millions) Equity method investments $ 124.7 $ 127.0 Available-for-sale securities 4.6 7.3 Cost method investments 0.5 30.6 $ 129.8 $ 164.9 |
Schedule of Equity Method Investments [Line Items] | |
Carrying Amount of Equity Method Investments | The carrying amounts of equity method investments at September 30, 2018 and March 31, 2018 were as follows: September 30, Equity Method Investee Ownership Percentage September 30, March 31, (Amounts in millions) Pop 50.0% $ 95.3 $ 91.3 Other Various 29.4 35.7 $ 124.7 $ 127.0 |
Equity Method Investee, Income (Loss) | Equity interests in equity method investments for the three and six months ended September 30, 2018 and 2017 were as follows (income (loss)): Three Months Ended Six Months Ended September 30, September 30, Equity Method Investee 2018 2017 2018 2017 (Amounts in millions) EPIX (1) $ — $ — $ — $ 4.0 Pop (0.3 ) 0.5 (1.1 ) (2.5 ) Other (11.4 ) (13.2 ) (16.7 ) (22.5 ) $ (11.7 ) $ (12.7 ) $ (17.8 ) $ (21.0 ) ______________ (1) In May 2017, the Company sold all of its 31.15% equity interest in EPIX. The Company recorded a gain before income taxes of approximately $201.0 million which is reflected in the gain (loss) on investments line item in the unaudited condensed consolidated statement of operations for the six months ended September 30, 2017. Prior to the sale of its interest in EPIX, the Company had accounted for such interest as an equity method investment. |
Gain (Loss) on Investments | The following table summarizes the components of the gain (loss) on investments, as previously described in the respective sections above: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Impairments of long-term investments and other assets $ (34.2 ) $ — $ (34.2 ) $ — Unrealized losses on available-for-sale securities held as of September 30, 2018 (1.9 ) — (2.8 ) — Gain on sale of EPIX — — — 201.0 $ (36.1 ) $ — $ (37.0 ) $ 201.0 |
Pop | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Balance Sheet | The following table presents summarized balance sheet data as of September 30, 2018 and March 31, 2018 for Pop: September 30, March 31, (Amounts in millions) Current assets $ 73.5 $ 48.2 Non-current assets $ 190.6 $ 191.6 Current liabilities $ 46.5 $ 37.2 Non-current liabilities (1) $ 716.5 $ 654.9 Redeemable preferred stock (1) $ 692.7 $ 638.4 _________________________ (1) Non-current liabilities includes mandatorily redeemable preferred stock units. |
Summarized Statement of Income | The following table presents the summarized statements of operations for the three and six months ended September 30, 2018 , and 2017 for Pop and a reconciliation of the net loss reported by Pop to equity interest income (loss) recorded by the Company: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 Revenues $ 25.9 $ 28.3 $ 51.5 $ 53.0 Expenses: Cost of services 12.4 13.8 25.5 30.8 Selling, marketing, and general and administration 11.5 11.1 23.4 23.2 Depreciation and amortization 2.0 2.0 4.0 4.0 Operating income (loss) — 1.4 (1.4 ) (5.0 ) Interest expense, net 0.5 0.4 0.9 0.5 Accretion of redeemable preferred stock units (1) 22.6 19.3 44.4 37.9 Total interest expense, net 23.1 19.7 45.3 38.4 Net loss $ (23.1 ) $ (18.3 ) $ (46.7 ) $ (43.4 ) Reconciliation of net loss reported by Pop to equity interest income (loss): Net loss reported by Pop $ (23.1 ) $ (18.3 ) $ (46.7 ) $ (43.4 ) Ownership interest in Pop 50 % 50 % 50 % 50 % The Company's share of net loss (11.6 ) (9.2 ) (23.4 ) (21.7 ) Accretion of dividend and interest income on redeemable preferred stock units (1) 11.3 9.7 22.2 19.0 Elimination of the Company's share of profits on licensing sales to Pop (0.1 ) (0.1 ) (0.2 ) (0.2 ) Realization of the Company’s share of profits on licensing sales to Pop 0.1 0.1 0.3 0.4 Total equity interest income (loss) recorded $ (0.3 ) $ 0.5 $ (1.1 ) $ (2.5 ) ___________________ (1) Accretion of mandatorily redeemable preferred stock units represents Pop's 10% dividend and the amortization of discount on its mandatorily redeemable preferred stock units held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest loss. |
Other | |
Schedule of Equity Method Investments [Line Items] | |
Summarized Balance Sheet | Summarized financial information for the Company's "other equity method investees", on an aggregate basis, is set forth below: September 30, March 31, (Amounts in millions) Current assets $ 181.4 $ 232.7 Non-current assets $ 59.5 $ 130.0 Current liabilities $ 149.9 $ 201.5 Non-current liabilities $ 10.2 $ 45.0 |
Summarized Statement of Income | Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Revenues $ 30.7 $ 49.3 $ 53.4 $ 88.1 Gross profit $ 15.3 $ 9.3 $ 19.6 $ 18.0 Net loss $ (34.9 ) $ (32.5 ) $ (55.3 ) $ (62.4 ) |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying value of goodwill by reporting segment were as follows: Motion Picture Television Production Media Networks Total (Amounts in millions) Balance as of March 31, 2018 $ 393.7 $ 309.2 $ 2,037.9 $ 2,740.8 Business acquisitions (1) — 92.0 — 92.0 Measurement period adjustments (1) — 0.7 — 0.7 Balance as of September 30, 2018 $ 393.7 $ 401.9 $ 2,037.9 $ 2,833.5 ______________________ (1) Represents the goodwill and measurement period adjustments resulting from the acquisition of 3 Arts Entertainment (see Note 2 ). Measurement period adjustments represented a decrease to the fair value of finite-lived intangible assets and a corresponding increase to goodwill. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt, Excluding Film Obligations and Production Loans | Total debt of the Company, excluding film obligations and production loans, was as follows as of September 30, 2018 and March 31, 2018 : September 30, March 31, (Amounts in millions) Corporate debt: Revolving Credit Facility $ — $ — Term Loan A (1) 750.0 750.0 Term Loan B (1) 1,243.8 1,250.0 5.875% Senior Notes 520.0 520.0 Total corporate debt 2,513.8 2,520.0 Convertible senior subordinated notes (2) — 60.0 Capital lease obligations 47.0 50.5 Total debt 2,560.8 2,630.5 Unamortized discount and debt issuance costs, net of fair value adjustment on capital lease obligations (67.5 ) (73.1 ) Total debt, net 2,493.3 2,557.4 Less current portion (35.3 ) (79.1 ) Non-current portion of debt $ 2,458.0 $ 2,478.3 _____________________ (1) To manage interest rate risk on certain of its LIBOR-based floating-rate corporate debt, as of September 30, 2018 . the Company has entered into three interest rate swaps to effectively convert the floating interest rates to fixed interest rates on a $1.5 billion notional amount (see Note 17 for further information). (2) On April 15, 2018, the 1.25% convertible senior subordinated notes due April 2018 (the "April 2013 1.25% Notes") matured, and upon maturity, the Company repaid the outstanding principal amount, together with accrued and unpaid interest. |
Schedule of Interest Expense | The table below sets forth the composition of the Company’s interest expense for the three and six months September 30, 2018 and 2017 : Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Interest expense Cash interest $ 35.8 $ 31.8 $ 68.2 $ 66.3 Amortization of debt discount and financing costs 3.0 3.0 6.0 7.5 38.8 34.8 74.2 73.8 Interest on dissenting shareholders' liability (see Note 16) 16.7 13.9 32.6 27.2 Total interest expense $ 55.5 $ 48.7 $ 106.8 $ 101.0 |
Film Obligations and Producti_2
Film Obligations and Production Loans (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Film Obligations And Production Loans [Abstract] | |
Films Obligations And Production Loans | September 30, March 31, (Amounts in millions) Film obligations $ 150.7 $ 146.7 Production loans 318.1 352.9 Total film obligations and production loans 468.8 499.6 Unamortized debt issuance costs (0.5 ) (0.4 ) Total film obligations and production loans, net 468.3 499.2 Less current portion (318.7 ) (327.9 ) Total non-current film obligations and production loans $ 149.6 $ 171.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Required to be Carried at Fair Value on a Recurring Basis | The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of September 30, 2018 and March 31, 2018 : September 30, 2018 March 31, 2018 Level 1 Level 2 Total Level 1 Level 2 Total Assets: (Amounts in millions) Available-for-sale securities (see Note 4) $ 4.6 $ — $ 4.6 $ 7.3 $ — $ 7.3 Forward exchange contracts (see Note 17) — 0.8 0.8 — 0.3 0.3 Interest rate swaps (see Note 17) — 5.4 5.4 — — — Liabilities: Forward exchange contracts (see Note 17) — (0.5 ) (0.5 ) — (0.6 ) (0.6 ) $ 4.6 $ 5.7 $ 10.3 $ 7.3 $ (0.3 ) $ 7.0 |
Carrying Values and Fair Values of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis | The following table sets forth the carrying values and fair values of the Company’s investment in Pop's mandatorily redeemable preferred stock units and outstanding debt at September 30, 2018 and March 31, 2018 : September 30, 2018 March 31, 2018 (Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value (Level 3) (Level 3) Assets: Investment in Pop's mandatorily redeemable preferred stock units (1) $ 95.3 $ 125.0 $ 91.3 $ 125.0 Carrying Value Fair Value Carrying Value Fair Value (Level 2) (Level 2) Liabilities (2) : Term Loan A 731.6 747.2 729.7 750.9 Term Loan B 1,224.3 1,253.1 1,229.3 1,251.6 5.875% Senior Notes 501.6 534.3 500.4 539.5 April 2013 1.25% Notes — — 60.0 60.3 Production loans 317.6 318.1 352.6 352.9 $ 2,775.1 $ 2,852.7 $ 2,872.0 $ 2,955.2 ________________ (1) The Company measures the fair value of its investment in Pop's mandatorily redeemable preferred stock units using primarily a discounted cash flow analysis based on the expected cash flows of the investment (a Level 3 measurement). The analysis reflects the contractual terms of the investment, including the period to maturity, and uses a discount rate commensurate with the risk associated with the investment. (2) The Company measures the fair value of its outstanding debt using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements). |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The table below presents the reconciliation of changes in redeemable noncontrolling interests: Six Months Ended September 30, 2018 2017 (Amounts in millions) Beginning balance $ 101.8 $ 93.8 Initial fair value of redeemable noncontrolling interest of 3 Arts Entertainment 15.8 — Net income (loss) attributable to redeemable noncontrolling interests (7.4 ) — Noncontrolling interests discount accretion 9.4 2.9 Adjustments to redemption value 15.0 5.1 Cash distributions (1.5 ) (4.6 ) Ending balance $ 133.1 $ 97.2 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below presents revenues by segment, market or product line for the three and six months ended September 30, 2018 and 2017. As a result of the segment reorganization described in Note 15 , the Company has presented prior period segment data in a manner that conforms to the current period presentation. The prior year information in the below table has not been adjusted under the modified retrospective method of adoption of the new revenue recognition guidance. Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Revenue by Type: Motion Picture Theatrical $ 69.1 $ 57.9 $ 119.5 $ 108.7 Home Entertainment Digital Media 85.1 90.4 171.3 192.0 Packaged Media 64.5 75.3 141.0 207.7 Total Home Entertainment 149.6 165.7 312.3 399.7 Television 70.9 74.2 132.8 131.8 International 82.2 79.9 149.6 202.3 Other 7.2 8.0 30.1 15.5 Total Motion Picture revenues $ 379.0 $ 385.7 744.3 858.0 Television Production Television $ 85.1 $ 143.3 302.9 330.7 International 21.8 36.8 58.8 68.1 Home Entertainment Digital Media 27.0 25.1 43.3 66.7 Packaged Media 1.6 4.8 3.4 5.8 Total Home Entertainment 28.6 29.9 46.7 72.5 Other 16.6 1.2 23.1 1.1 Total Television Production revenues $ 152.1 $ 211.2 431.5 472.4 Media Networks Starz Networks - programming revenues $ 373.7 $ 358.6 724.9 701.8 Streaming Services - programming revenues 3.6 1.1 7.3 2.5 Total Media Networks revenues $ 377.3 $ 359.7 732.2 704.3 Intersegment eliminations (7.4 ) (15.8 ) (74.4 ) (88.6 ) Total revenues $ 901.0 $ 940.8 $ 1,833.6 $ 1,946.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at September 30, 2018 are as follows: Rest of Year Ending March 31, 2019 Year Ended March 31, 2020 2021 Thereafter Total (Amounts in millions) Remaining Performance Obligations $ 950.7 $ 717.0 $ 241.7 $ 333.0 $ 2,242.4 The above table does not include estimates of variable consideration for transactions involving sales or usage-based royalties in exchange for licenses of intellectual property. The revenues included in the above table include all fixed fee contracts regardless of duration. |
Contract with Customer, Asset and Liability | At September 30, 2018 and April 1, 2018, accounts receivable, contract assets and deferred revenue are as follows: September 30, April 1, Addition (Reduction) (Amounts in millions) Accounts receivable, net - current $ 1,059.0 $ 1,042.2 $ 16.8 Accounts receivable, net - non-current (1) 266.4 257.7 8.7 Contract asset - current (2) 19.9 78.3 (58.4 ) Contract asset - non-current (3) 12.1 71.5 (59.4 ) Deferred revenue - current 238.0 183.8 54.2 Deferred revenue - non-current 59.3 70.5 (11.2 ) __________________ (1) Included in accounts receivable within non-current other assets in the unaudited condensed consolidated balance sheets. (2) Included in prepaid expenses and other within other current assets in the unaudited condensed consolidated balance sheets. (3) Included in prepaid expenses and other within non-current other assets in the unaudited condensed consolidated balance sheets. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Changes to the opening balances of current assets, total assets, current liabilities and total liabilities resulting from the adoption of the new guidance were as follows: March 31, 2018 Impact of Adoption April 1, 2018 (Amounts in millions) Current assets $ 1,773.1 $ 174.4 $ 1,947.5 Total assets $ 8,967.6 $ 143.6 $ 9,111.2 Current liabilities $ 2,412.4 $ 104.1 $ 2,516.5 Total liabilities $ 5,708.9 $ 124.9 $ 5,833.8 The following table presents the line items impacted by the adoption of the new revenue recognition guidance (described in Note 1 ) on the unaudited condensed consolidated balance sheet and statement of operations: September 30, 2018 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Balance Sheet Information: (Amounts in millions) Assets Accounts receivable, net - current $ 1,059.0 $ (129.2 ) $ 929.8 Other assets - current 191.0 (19.8 ) 171.2 Other assets - non-current 439.6 (3.9 ) 435.7 Investment in films and television programs and program rights, net 1,662.9 35.2 1,698.1 Liabilities Accounts payable and accrued liabilities 585.9 (76.3 ) 509.6 Participations and residuals - current 494.3 (26.4 ) 467.9 Deferred revenue - current 238.0 (1.5 ) 236.5 Deferred revenue - non-current 59.3 2.3 61.6 Deferred tax liabilities 58.8 (3.1 ) 55.7 Equity Retained earnings 332.3 (12.7 ) 319.6 Three Months Ended September 30, 2018 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Statement of Operations Information: (Amounts in millions) Revenues $ 901.0 $ 16.1 $ 917.1 Direct operating 463.2 5.6 468.8 Operating income 39.1 10.5 49.6 Interest and other income 3.0 (0.2 ) 2.8 Loss before income taxes (175.3 ) 10.3 (165.0 ) Income tax benefit 26.0 (2.6 ) 23.4 Net loss (149.3 ) 7.7 (141.6 ) Six Months Ended September 30, 2018 As Reported Impact of Adoption Without Adoption of New Revenue Guidance Statement of Operations Information: (Amounts in millions) Revenues $ 1,833.6 $ 13.2 $ 1,846.8 Direct operating 993.2 4.7 997.9 Operating income 77.2 8.5 85.7 Interest and other income 6.1 (0.3 ) 5.8 Loss before income taxes (192.4 ) 8.2 (184.2 ) Income tax benefit 31.8 (2.2 ) 29.6 Net loss (160.6 ) 6.0 (154.6 ) |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic Net Income (Loss) Per Common Share | Basic net income (loss) per share for the three and six months ended September 30, 2018 and 2017 is presented below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions, except per share amounts) Basic Net Income (Loss) Per Common Share: Numerator: Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (144.1 ) $ 15.5 $ (151.9 ) $ 189.3 Denominator: Weighted average common shares outstanding 213.6 207.8 212.7 207.3 Basic net income (loss) per common share $ (0.67 ) $ 0.07 $ (0.71 ) $ 0.91 |
Diluted Net Income (Loss) Per Common Share | Diluted net income (loss) per common share for the three and six months ended September 30, 2018 and 2017 is presented below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions, except per share amounts) Diluted Net Income (Loss) Per Common Share: Numerator: Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders $ (144.1 ) $ 15.5 $ (151.9 ) $ 189.3 Add: Interest on convertible notes, net of tax — 0.1 — 0.2 Numerator for diluted net income (loss) per common share $ (144.1 ) $ 15.6 $ (151.9 ) $ 189.5 Denominator: Weighted average common shares outstanding 213.6 207.8 212.7 207.3 Effect of dilutive securities: Conversion of notes — 2.1 — 2.1 Share purchase options — 7.4 — 6.9 Restricted share units and restricted stock — 0.8 — 0.7 Contingently issuable shares — 1.7 — 1.7 Adjusted weighted average common shares outstanding 213.6 219.8 212.7 218.7 Diluted net income (loss) per common share $ (0.67 ) $ 0.07 $ (0.71 ) $ 0.87 |
Anti-dilutive Shares Issuable | For the three and six months ended September 30, 2018 and 2017 , the outstanding common shares issuable presented below were excluded from diluted net income (loss) per common share because their inclusion would have had an anti-dilutive effect. Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Anti-dilutive shares issuable Conversion of notes — — 0.2 — Share purchase options 5.0 10.3 5.1 13.6 Restricted share units 0.3 0.1 0.3 0.1 Other issuable shares 3.0 1.1 2.6 1.3 Total weighted average anti-dilutive shares issuable excluded from diluted net income (loss) per common share 8.3 11.5 8.2 15.0 |
Capital Stock (Tables)
Capital Stock (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Equity and Share-based Compensation [Abstract] | |
Common Shares Reserved For Future Issuance | The table below outlines common shares reserved for future issuance: September 30, March 31, (Amounts in millions) Stock options and equity-settled SARs outstanding 33.8 32.1 Restricted stock and restricted share units — unvested 2.3 2.2 Common shares available for future issuance under the 2017 Plan (as defined below) 8.1 10.3 Shares issuable upon conversion of April 2013 1.25% Notes — 2.1 Shares reserved for future issuance 44.2 46.7 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Expense | Share-based compensation expense, by expense category, consisted of the following: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Share-Based Compensation Expense: Direct operating $ 0.3 $ 0.2 $ 0.5 $ 0.5 Distribution and marketing 0.1 0.2 0.1 0.4 General and administration 14.7 23.2 29.6 46.5 $ 15.1 $ 23.6 $ 30.2 $ 47.4 The Company recognized the following share-based compensation expense during the three and six months ended September 30, 2018 , and 2017 : Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Compensation Expense: Stock options $ 6.7 $ 11.7 $ 13.5 $ 24.0 Restricted share units and other share-based compensation 7.2 9.9 13.9 20.2 Share appreciation rights 1.2 2.0 2.8 3.2 15.1 23.6 30.2 47.4 Tax impact (1) (3.4 ) (8.3 ) (6.9 ) (16.8 ) Reduction in net income $ 11.7 $ 15.3 $ 23.3 $ 30.6 ___________________ (1) Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements. |
Schedule of Stock Option, Equity-Settled SARs, Restricted Stock and Restricted Share Unit Activity | The following table sets forth the stock option, equity-settled SARs, restricted stock and restricted share unit activity during the six months ended September 30, 2018 : Stock Options and Equity-Settled SARs Restricted Stock and Restricted Share Units Class A Voting Shares Class B Non-Voting Shares Class A Voting Shares Class B Non-Voting Shares Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Grant-Date Fair Value Number of Shares Weighted-Average Grant-Date Fair Value Outstanding at March 31, 2018 8,636,437 $26.93 23,463,115 $20.56 230,561 $28.49 2,001,049 $27.97 Granted 130,832 $25.96 2,508,991 $23.91 15,939 $23.19 594,476 $23.15 Options exercised or restricted stock or RSUs vested (18,719 ) $21.85 (262,981 ) $15.18 (121,651 ) $29.89 (291,750 ) $28.17 Forfeited or expired (229,138 ) $35.25 (448,511 ) $30.83 (11,823 ) $25.69 (77,763 ) $27.35 Outstanding at September 30, 2018 8,519,412 $26.70 25,260,614 $20.78 113,026 $26.53 2,226,012 $26.68 |
Restructuring and Other (Tables
Restructuring and Other (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other | Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable, and were as follows for the three and six months ended September 30, 2018 and 2017 : Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Restructuring and other: Severance (1) $ 2.9 $ — $ 3.7 $ 1.0 Transaction and related costs (2) 12.1 3.5 21.9 13.4 $ 15.0 $ 3.5 $ 25.6 $ 14.4 _______________________ (1) Severance costs in the three and six months ended September 30, 2018 and the six months ended September 30, 2017 were primarily related to restructuring activities in connection with recent acquisitions, and other cost-saving initiatives. As of September 30, 2018 , the remaining severance liability was approximately $7.0 million , which is expected to be paid in the next 12 months. (2) Transaction and related costs in the three and six months ended September 30, 2018 and 2017 reflect transaction, integration and legal costs associated with certain strategic transactions and legal matters. In the three and six months ended September 30, 2018 , these costs were primarily related to the legal fees associated with the Starz class action lawsuits and other matters, and to a lesser extent, costs related to the acquisition of 3 Arts Entertainment and other strategic transactions. In the three and six months ended September 30, 2017 , these costs were primarily related to the sale of EPIX (see Note 4 ), the legal fees associated with the Starz class action lawsuits and other matters, and the integration of Starz. Changes in the restructuring and other severance liability were as follows for the six months ended September 30, 2018 and 2017: Six Months Ended September 30, 2018 2017 (Amounts in millions) Severance liability Beginning balance $ 14.7 $ 22.2 Accruals 3.7 1.0 Severance payments (11.4 ) (12.1 ) Ending balance $ 7.0 $ 11.1 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information By Business Unit | Segment information by business unit is presented in the table below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Segment revenues Motion Picture $ 379.0 $ 385.7 $ 744.3 $ 858.0 Television Production 152.1 211.2 431.5 472.4 Media Networks 377.3 359.7 732.2 704.3 Intersegment eliminations (7.4 ) (15.8 ) (74.4 ) (88.6 ) $ 901.0 $ 940.8 $ 1,833.6 $ 1,946.1 Intersegment revenues Motion Picture $ 2.2 $ 2.5 $ 4.3 $ 5.9 Television Production 5.2 13.3 70.0 82.4 Media Networks — — 0.1 0.3 $ 7.4 $ 15.8 $ 74.4 $ 88.6 Gross contribution Motion Picture $ 38.9 $ 35.2 $ 117.7 $ 149.1 Television Production 20.4 28.9 46.1 80.9 Media Networks 147.4 127.8 261.6 242.3 Intersegment eliminations 9.1 3.4 (2.3 ) (8.4 ) $ 215.8 $ 195.3 $ 423.1 $ 463.9 Segment general and administration Motion Picture $ 26.0 $ 26.3 $ 52.8 $ 53.2 Television Production 11.0 10.6 21.5 19.7 Media Networks 24.7 24.5 50.3 50.2 $ 61.7 $ 61.4 $ 124.6 $ 123.1 Segment profit Motion Picture $ 12.9 $ 8.9 $ 64.9 $ 95.9 Television Production 9.4 18.3 24.6 61.2 Media Networks 122.7 103.3 211.3 192.1 Intersegment eliminations 9.1 3.4 (2.3 ) (8.4 ) $ 154.1 $ 133.9 $ 298.5 $ 340.8 |
Reconciliation Of Total Segment Profit To The Company's Income (Loss) Before Income Taxes | The reconciliation of total segment profit to the Company’s income (loss) before income taxes is as follows: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Company’s total segment profit $ 154.1 $ 133.9 $ 298.5 $ 340.8 Corporate general and administrative expenses (25.3 ) (25.3 ) (52.8 ) (50.7 ) Adjusted depreciation and amortization (1) (10.0 ) (9.3 ) (20.3 ) (19.4 ) Restructuring and other (2) (15.0 ) (3.5 ) (25.6 ) (14.4 ) Adjusted share-based compensation expense (3) (15.1 ) (23.6 ) (30.2 ) (47.4 ) Purchase accounting and related adjustments (4) (49.6 ) (41.8 ) (92.4 ) (88.8 ) Operating income 39.1 30.4 77.2 120.1 Interest expense (55.5 ) (48.7 ) (106.8 ) (101.0 ) Shareholder litigation settlements (5) (114.1 ) — (114.1 ) — Interest and other income 3.0 2.7 6.1 5.5 Loss on extinguishment of debt — (6.4 ) — (18.0 ) Gain (loss) on investments (36.1 ) — (37.0 ) 201.0 Equity interests loss (11.7 ) (12.7 ) (17.8 ) (21.0 ) Income (loss) before income taxes $ (175.3 ) $ (34.7 ) $ (192.4 ) $ 186.6 ___________________ (1) Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Depreciation and amortization $ 40.8 $ 39.3 $ 81.1 $ 79.3 Less: Amount included in purchase accounting and related adjustments (30.8 ) (30.0 ) (60.8 ) (59.9 ) Adjusted depreciation and amortization $ 10.0 $ 9.3 $ 20.3 $ 19.4 (2) Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 14 ). (3) Represents share-based compensation expense excluding, when applicable, amounts attributable to immediately vested stock bonus awards (which are, when granted, included in segment and corporate general and administrative expense) and amounts related to severance awards included in restructuring and other. There were no such amounts in the three and six months ended September 30, 2018 and 2017, and accordingly, adjusted share-based compensation expense represents total share-based compensation expense in the three and six months ended September 30, 2018 and 2017. (4) Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 5.6 $ 10.2 $ 13.6 $ 26.0 General and administrative expense 13.2 1.6 18.0 2.9 Depreciation and amortization 30.8 30.0 60.8 59.9 $ 49.6 $ 41.8 $ 92.4 $ 88.8 (5) Shareholder litigation settlements of $114.1 million in the three and six months ended September 30, 2018 includes the following: (i) $54.8 million for the net expense recorded for the settlement of the Fiduciary Litigation (representing the settlement amount of $92.5 million , which the Company has included in accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheet, net of aggregate insurance reimbursement of $37.8 million , which amount the Company has recorded a receivable included in the "other current assets" line item in the unaudited condensed consolidated balance sheet as of September 30, 2018) and (ii) $59.3 million related to the Appraisal Litigation, representing the amount by which the settlement amount of approximately $961 million exceeds the previously accrued $901.9 million dissenting shareholders' liability, before considering the settlement (i.e., dissenting shareholders' liability plus accrued interest through September 30, 2018). See Note 16 . |
Adjusted Depreciation and Amortization | Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Depreciation and amortization $ 40.8 $ 39.3 $ 81.1 $ 79.3 Less: Amount included in purchase accounting and related adjustments (30.8 ) (30.0 ) (60.8 ) (59.9 ) Adjusted depreciation and amortization $ 10.0 $ 9.3 $ 20.3 $ 19.4 |
Purchase Accounting and Related Adjustments | Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Purchase accounting and related adjustments: Direct operating $ 5.6 $ 10.2 $ 13.6 $ 26.0 General and administrative expense 13.2 1.6 18.0 2.9 Depreciation and amortization 30.8 30.0 60.8 59.9 $ 49.6 $ 41.8 $ 92.4 $ 88.8 |
Reconciliation of Segment General and Administrative Expense to Consolidated | The following table reconciles segment general and administration expense to the Company's total consolidated general and administration expense: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) General and administration Segment general and administrative expenses $ 61.7 $ 61.4 $ 124.6 $ 123.1 Corporate general and administrative expenses 25.3 25.3 52.8 50.7 Share-based compensation expense included in general and administrative expense 14.8 23.2 29.7 46.5 Purchase accounting and related adjustments 13.2 1.6 18.0 3.0 $ 115.0 $ 111.5 $ 225.1 $ 223.3 |
Reconciliation of Assets from Segment to Consolidated | The reconciliation of total segment assets to the Company’s total consolidated assets is as follows: September 30, March 31, (Amounts in millions) Assets Motion Picture $ 1,826.4 $ 1,757.4 Television Production 1,500.8 1,400.5 Media Networks 5,085.6 5,166.5 Other unallocated assets (1) 636.6 643.2 $ 9,049.4 $ 8,967.6 _____________________ (1) Other unallocated assets primarily consist of cash, other assets and investments. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Derivative [Line Items] | |
Schedule of Derivative Instruments, Statements of Financial Performance And Comprehensive Income, Location And Effect | The following table presents the effect of the Company's derivatives on the accompanying consolidated statements of operations and comprehensive income (loss) for the three and six months ended September 30, 2018 and 2017: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in accumulated other comprehensive income (loss) $ 0.4 $ (0.8 ) $ 0.4 $ (0.1 ) Gain reclassified from accumulated other comprehensive income (loss) into direct operating expense $ 0.1 $ — $ 0.2 $ — Interest rate swap agreements Gain recognized in accumulated other comprehensive income (loss) $ 12.2 $ — $ 5.4 $ — Loss reclassified from accumulated other comprehensive income (loss) into interest expense (2.9 ) — (3.9 ) — Derivatives not designated as cash flow hedges: Forward exchange contracts Gain (loss) recognized in direct operating expense $ — $ 0.2 $ (0.7 ) $ 0.2 Total direct operating expense on consolidated statements of operations $ 463.2 $ 521.6 $ 993.2 $ 1,076.4 Total interest expense on consolidated statements of operations (1) $ 38.8 $ 34.8 $ 74.2 $ 73.8 ________________ (1) Represents interest expense before interest on dissenting shareholders' liability. |
Forward Foreign Exchange Contracts | |
Derivative [Line Items] | |
Schedule of Derivative Instruments Outstanding | As of September 30, 2018 , the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 17 months from September 30, 2018 ): September 30, 2018 Foreign Currency Foreign Currency Amount US Dollar Amount Weighted Average Exchange Rate Per $1 USD (Amounts in millions) (Amounts in millions) British Pound Sterling £5.1 in exchange for $7.1 £0.72 Canadian Dollar C$25.8 in exchange for $20.4 C$1.27 Australian Dollar A$5.1 in exchange for $3.9 A$1.29 |
Derivative Instruments by Balance Sheet Location | As of September 30, 2018 and March 31, 2018 , the Company had the following amounts recorded in the accompanying consolidated balance sheets related to the Company's use of derivatives: September 30, 2018 Other Current Assets Other Non-Current Assets Accounts Payable and Accrued Liabilities Other Non-Current Liabilities (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 0.8 $ — $ 0.5 $ — Interest rate swap agreements — 5.4 — — Fair value of derivatives $ 0.8 $ 5.4 $ 0.5 $ — March 31, 2018 Other Current Assets Accounts Payable and Accrued Liabilities (Amounts in millions) Derivatives designated as cash flow hedges: Forward exchange contracts $ 0.3 $ 0.6 Fair value of derivatives $ 0.3 (1) $ 0.6 (1) _____________ (1) Includes an immaterial amount of forward foreign exchange contracts not designated as hedging instruments as of March 31, 2018. |
Interest rate swap agreements | |
Derivative [Line Items] | |
Schedule of Derivative Instruments Outstanding | The major terms of the Company's interest rate swap agreements as of September 30, 2018 are as follows (all related to the Company's LIBOR-based debt, see Note 6 ): Effective Date Notional Amount (in millions) Fixed Rate Paid Maturity Date May 23, 2018 $1,000.0 2.915% March 24, 2025 June 25, 2018 $200.0 2.723% March 23, 2025 July 31, 2018 $300.0 2.885% March 23, 2025 |
Additional Financial Informat_2
Additional Financial Information (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Additional Financial Information [Abstract] | |
Schedule of Other Assets | The composition of the Company’s other assets is as follows as of September 30, 2018 and March 31, 2018: September 30, March 31, (Amounts in millions) Other current assets Prepaid expenses and other $ 64.0 $ 34.1 Product inventory 20.8 20.3 Tax credits receivable 106.2 141.4 $ 191.0 $ 195.8 Other non-current assets Prepaid expenses and other $ 52.1 $ 23.8 Accounts receivable 266.4 325.2 Tax credits receivable 121.1 109.6 $ 439.6 $ 458.6 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | The supplemental schedule of non-cash investing and financing activities is presented below: Six Months Ended September 30, 2018 2017 (Amounts in millions) Non-cash investing activities: Common shares related to business acquisitions (see Note 2) $ 83.7 $ — Non-cash financing activities: Accrued dividends $ 19.4 $ — |
General (Narrative) (Details)
General (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Apr. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment for new accounting pronouncement | $ 18.7 | ||||
Decrease in cash provided by operating activities | $ 269.9 | $ 336.6 | |||
Increase in beginning cash and cash equivalents to include restricted cash | $ 378.1 | $ 324.7 | |||
Restricted cash | $ 0 | $ 0 | |||
Revenue Recognition ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment for new accounting pronouncement | 18.7 | ||||
Liability for sales returns and certain sales incentive allowances | 86.9 | ||||
Restricted Cash | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Decrease in cash provided by operating activities | $ 2.8 | ||||
Increase in beginning cash and cash equivalents to include restricted cash | $ 2.8 | ||||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment for new accounting pronouncement | 21.3 | ||||
Retained Earnings | Recognition and Measurement of Financial Instruments | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment for new accounting pronouncement | $ 2.6 |
General (Schedule of Impact of
General (Schedule of Impact of Adoption on Opening Financial Statement Balances) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Current assets | $ 1,856.5 | $ 1,947.5 | $ 1,773.1 |
Total assets | 9,049.4 | 9,111.2 | 8,967.6 |
Current liabilities | $ 2,633.5 | 2,516.5 | 2,412.4 |
Total liabilities | 5,833.8 | $ 5,708.9 | |
Impact of Adoption | Revenue Recognition ASU 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Current assets | 174.4 | ||
Total assets | 143.6 | ||
Current liabilities | 104.1 | ||
Total liabilities | $ 124.9 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Millions | May 29, 2018 | Oct. 11, 2017 | Sep. 30, 2018 | Mar. 31, 2018 |
Business Acquisition [Line Items] | ||||
Period for weighted average closing price (number of consecutive trading days) | 20 days | |||
Goodwill | $ 2,833.5 | $ 2,740.8 | ||
Deferred compensation arrangements | $ 38.3 | |||
Redeemable noncontrolling interest | $ (15.8) | |||
Business combination, contingent consideration, contingency period | 5 years | |||
3 Arts Entertainment | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, percentage of membership interest acquired | 51.00% | |||
Purchase price | $ 166.6 | |||
Percent of purchase price paid in cash at closing | 50.00% | |||
Acquisition related costs | $ 1.3 | |||
Goodwill | 92.7 | |||
Finite-lived intangible assets | $ 47 | |||
Period for issuance of equity interests after closing date | 1 year | |||
Good Universe | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 29 | |||
Purchase price, cash consideration | 20.4 | |||
Purchase price, cash consideration to be paid after one-year of the closing date | $ 1.4 | |||
Period for issuance of equity interests after closing date | 1 year | |||
Purchase price, loans assumed | $ 23.6 | |||
Repayments of corporate debt and production loans | $ 14.9 | |||
Class B Non-Voting Shares | 3 Arts Entertainment | ||||
Business Acquisition [Line Items] | ||||
Percent of purchase price paid in Class B non-voting common shares at closing | 32.50% | |||
Percent of purchase prince to be paid in Class B non-voting common shares on the one-year anniversary of closing | 17.50% | |||
Class B Non-Voting Shares | Good Universe | ||||
Business Acquisition [Line Items] | ||||
Purchase price, common shares to be issued, number of shares | 119,751 | |||
Customer relationships | 3 Arts Entertainment | ||||
Business Acquisition [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 12 years | |||
3 Arts Entertainment | ||||
Business Acquisition [Line Items] | ||||
Redeemable noncontrolling interest, ownership percentage held by noncontrolling interest holders | 49.00% |
Investment In Films and Telev_3
Investment In Films and Television Programs and Program Rights (Schedule of Investment In Films And Television Programs) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 31, 2018 |
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Total investment in films and television programs and program rights, net | $ 1,897.1 | $ 1,945.2 |
Less current portion of program rights | (234.2) | (253.2) |
Non-current portion | 1,662.9 | 1,692 |
Motion Picture | Theatrical And Non-Theatrical Films | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 417.4 | 410.5 |
Acquired libraries, net of accumulated amortization | 1.6 | 2.1 |
Completed and not released | 93.3 | 55 |
In progress | 268.4 | 347.2 |
In development | 23 | 24.6 |
Total investment in film and television programs | 803.7 | 839.4 |
Television Production | Direct-to-Television Programs | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 188.8 | 238.9 |
In progress | 239.2 | 186.6 |
In development | 9.9 | 4.8 |
Total investment in film and television programs | 437.9 | 430.3 |
Media Networks | ||
Investment in Films and Television Programs and Program Rights [Line Items] | ||
Released, net of accumulated amortization | 530.7 | 616.9 |
In progress | 114.2 | 45.6 |
In development | 52.8 | 30 |
Total investment in films and television programs and program rights, net | 697.7 | 692.5 |
Intersegment eliminations | $ (42.2) | $ (17) |
Investment In Films and Telev_4
Investment In Films and Television Programs and Program Rights (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investment In Films And Television Programs and Program Rights [Abstract] | ||||
Fair value film write-downs | $ 2.5 | $ 2.3 | $ 7 | $ 2.6 |
Investments (Investments by Cat
Investments (Investments by Category) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 31, 2018 |
Equity Method Investments, Cost Method Investments, and Investments in Debt and Equity [Abstract] | ||
Equity method investments | $ 124.7 | $ 127 |
Available-for-sale securities | 4.6 | 7.3 |
Cost method investments | 0.5 | 30.6 |
Investments | $ 129.8 | $ 164.9 |
Investments (Carrying Amount Of
Investments (Carrying Amount Of Equity Method Investments) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 124.7 | $ 127 | |
Pop | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | |
Equity method investments | $ 95.3 | 91.3 | |
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 29.4 | $ 35.7 |
Investments (Equity Method Inve
Investments (Equity Method Investee, Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity interests income (loss) | $ (11.7) | $ (12.7) | $ (17.8) | $ (21) | ||
EPIX | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity interests income (loss) | 0 | 0 | 0 | [1] | 4 | [1] |
Pop | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity interests income (loss) | (0.3) | 0.5 | (1.1) | (2.5) | ||
Other | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity interests income (loss) | $ (11.4) | $ (13.2) | $ (16.7) | $ (22.5) | ||
[1] | In May 2017, the Company sold all of its 31.15% equity interest in EPIX. The Company recorded a gain before income taxes of approximately $201.0 million which is reflected in the gain (loss) on investments line item in the unaudited condensed consolidated statement of operations for the six months ended September 30, 2017. Prior to the sale of its interest in EPIX, the Company had accounted for such interest as an equity method investment. |
Investments (Equity Method In_2
Investments (Equity Method Investments Narrative) (Details) - USD ($) $ in Millions | May 11, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale of EPIX | $ 0 | $ 0 | $ 0 | $ 201 | |
Investment in equity method investee | 16.2 | $ 29.3 | |||
Pop | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in equity method investee | $ 5 | $ 5 | |||
Equity method investment, ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | |
Redeemable Preferred Stock | Pop | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Rate of dividend on preferred stock | 10.00% | ||||
Total accretion period to redemption date of mandatorily redeemable preferred stock units and dividend | 10 years | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | EPIX | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest sold | 31.15% | ||||
Gain on sale of EPIX | $ 201 | ||||
Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 9.00% | 9.00% | |||
Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | 50.00% |
Investments (Summarized Balance
Investments (Summarized Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 31, 2018 | |
Pop | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | $ 73.5 | $ 48.2 | |
Non-current assets | 190.6 | 191.6 | |
Current liabilities | 46.5 | 37.2 | |
Non-current liabilities | [1] | 716.5 | 654.9 |
Redeemable preferred stock | [1] | 692.7 | 638.4 |
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 181.4 | 232.7 | |
Non-current assets | 59.5 | 130 | |
Current liabilities | 149.9 | 201.5 | |
Non-current liabilities | $ 10.2 | $ 45 | |
[1] | Non-current liabilities includes mandatorily redeemable preferred stock units. |
Investments (Summarized Stateme
Investments (Summarized Statement Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of net income (loss) reported by investee to equity interest income (loss): | ||||
Total equity interest income (loss) recorded | $ (11.7) | $ (12.7) | $ (17.8) | $ (21) |
Other | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 30.7 | 49.3 | 53.4 | 88.1 |
Expenses: | ||||
Gross profit | 15.3 | 9.3 | 19.6 | 18 |
Reconciliation of net income (loss) reported by investee to equity interest income (loss): | ||||
Net income (loss) | (34.9) | (32.5) | (55.3) | (62.4) |
Total equity interest income (loss) recorded | (11.4) | (13.2) | (16.7) | (22.5) |
Pop | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 25.9 | 28.3 | 51.5 | 53 |
Expenses: | ||||
Cost of services | 12.4 | 13.8 | 25.5 | 30.8 |
Selling, marketing and general and administrative expenses | 11.5 | 11.1 | 23.4 | 23.2 |
Depreciation and amortization | 2 | 2 | 4 | 4 |
Operating income (loss) | 0 | 1.4 | (1.4) | (5) |
Interest expense, net | 0.5 | 0.4 | 0.9 | 0.5 |
Accretion of redeemable preferred stock units | 22.6 | 19.3 | 44.4 | 37.9 |
Total interest expense, net | 23.1 | 19.7 | 45.3 | 38.4 |
Reconciliation of net income (loss) reported by investee to equity interest income (loss): | ||||
Net income (loss) | $ (23.1) | $ (18.3) | $ (46.7) | $ (43.4) |
Ownership interest in investee | 50.00% | 50.00% | 50.00% | 50.00% |
The Company's share of net income (loss) | $ (11.6) | $ (9.2) | $ (23.4) | $ (21.7) |
Accretion of dividend and interest income of redeemable preferred stock units | 11.3 | 9.7 | 22.2 | 19 |
Eliminations of the Company's share of profits on licensing sales to investee | (0.1) | (0.1) | (0.2) | (0.2) |
Realization of the Company's share of profits on licensing sales to investee | 0.1 | 0.1 | 0.3 | 0.4 |
Total equity interest income (loss) recorded | $ (0.3) | $ 0.5 | $ (1.1) | $ (2.5) |
Investments (Available-for-sale
Investments (Available-for-sale Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Unrealized losses on available-for-sale-securities held | $ 1.9 | $ 0 | $ 2.8 | $ 0 |
Investments (Gain (Loss) on Inv
Investments (Gain (Loss) on Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Gain (Loss) on Investments [Line Items] | ||||
Impairments of long-term investments and other assets | $ (34.2) | $ 0 | $ (34.2) | $ 0 |
Unrealized losses on available-for-sale-securities held | (1.9) | 0 | (2.8) | 0 |
Gain on sale of EPIX | 0 | 0 | 0 | 201 |
Gain (loss) on investments and other assets | $ (36.1) | $ 0 | $ (37) | $ 201 |
Investments (Other Narrative) (
Investments (Other Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Equity Method Investments, Cost Method Investments, and Investments in Debt and Equity [Abstract] | |||||
Other than temporary impairments on cost method investments and notes receivable | $ 34.2 | $ 0 | $ 34.2 | $ 0 | |
Investment [Line Items] | |||||
Cost method investments | 0.5 | 0.5 | $ 30.6 | ||
Telltale Games | |||||
Investment [Line Items] | |||||
Cost method investments | $ 0 | $ 0 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 6 Months Ended | |
Sep. 30, 2018USD ($) | ||
Goodwill [Roll Forward] | ||
Balance as of March 31, 2018 | $ 2,740.8 | |
Business acquisitions | 92 | [1] |
Measurement period adjustments | 0.7 | [1] |
Balance as of September 30, 2018 | 2,833.5 | |
Motion Picture | ||
Goodwill [Roll Forward] | ||
Balance as of March 31, 2018 | 393.7 | |
Business acquisitions | 0 | [1] |
Measurement period adjustments | 0 | [1] |
Balance as of September 30, 2018 | 393.7 | |
Television Production | ||
Goodwill [Roll Forward] | ||
Balance as of March 31, 2018 | 309.2 | |
Business acquisitions | 92 | [1] |
Measurement period adjustments | 0.7 | [1] |
Balance as of September 30, 2018 | 401.9 | |
Media Networks | ||
Goodwill [Roll Forward] | ||
Balance as of March 31, 2018 | 2,037.9 | |
Business acquisitions | 0 | [1] |
Measurement period adjustments | 0 | [1] |
Balance as of September 30, 2018 | $ 2,037.9 | |
[1] | Represents the goodwill and measurement period adjustments resulting from the acquisition of 3 Arts Entertainment (see Note 2). Measurement period adjustments represented a decrease to the fair value of finite-lived intangible assets and a corresponding increase to goodwill. |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jul. 31, 2018 | Jun. 25, 2018 | May 23, 2018 | Apr. 15, 2018 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | |||||||
Corporate debt | $ 2,513.8 | $ 2,520 | |||||
Convertible senior subordinated notes | [1] | 0 | 60 | ||||
Capital lease obligations | 47 | 50.5 | |||||
Total debt | 2,560.8 | 2,630.5 | |||||
Unamortized discount and debt issuance costs, net of fair value adjustment on capital lease obligations | (67.5) | (73.1) | |||||
Total debt, net | 2,493.3 | 2,557.4 | |||||
Less current portion | (35.3) | (79.1) | |||||
Non-current portion of debt | 2,458 | 2,478.3 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Corporate debt | 0 | 0 | |||||
Term Loan A Facility | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Corporate debt | [2] | 750 | 750 | ||||
Term Loan B Facility | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Corporate debt | [2] | 1,243.8 | 1,250 | ||||
5.875% Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Corporate debt | $ 520 | 520 | |||||
Coupon rate | 5.875% | ||||||
April 2013 Notes | Convertible Senior Subordinated Notes | |||||||
Debt Instrument [Line Items] | |||||||
Coupon rate | 1.25% | 1.25% | |||||
Interest rate swap agreements | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount | $ 1,500 | $ 300 | $ 200 | $ 1,000 | $ 0 | ||
[1] | On April 15, 2018, the 1.25% convertible senior subordinated notes due April 2018 (the "April 2013 1.25% Notes") matured, and upon maturity, the Company repaid the outstanding principal amount, together with accrued and unpaid interest. | ||||||
[2] | To manage interest rate risk on certain of its LIBOR-based floating-rate corporate debt, as of September 30, 2018. the Company has entered into three interest rate swaps to effectively convert the floating interest rates to fixed interest rates on a $1.5 billion notional amount (see Note 17 for further information). |
Debt (Narrative - Senior Credit
Debt (Narrative - Senior Credit Facilities) (Details) $ in Millions | Mar. 22, 2018USD ($) | Dec. 08, 2016USD ($) | Sep. 30, 2018USD ($)reduction |
Revolving Credit Facility | |||
Line of Credit Facility [Abstract] | |||
Debt instrument, term | 5 years | ||
Revolving credit facility, maximum borrowing capacity | $ 1,500 | $ 1,500 | |
Revolving credit facility, available amount | $ 1,500 | ||
Number of possible increases in margin | reduction | 2 | ||
Effective interest rate | 4.01% | ||
Change in control, trigger percentage | 50.00% | ||
Letter of Credit | |||
Line of Credit Facility [Abstract] | |||
Letters of credit outstanding, amount | $ 0 | ||
Minimum | Revolving Credit Facility | |||
Line of Credit Facility [Abstract] | |||
Revolving credit facility, commitment fee annual percentage | 0.25% | ||
Maximum | Revolving Credit Facility | |||
Line of Credit Facility [Abstract] | |||
Revolving credit facility, commitment fee annual percentage | 0.375% | ||
Base Rate | Revolving Credit Facility | |||
Line of Credit Facility [Abstract] | |||
Basis spread on variable interest rate | 0.75% | ||
LIBOR | Revolving Credit Facility | |||
Line of Credit Facility [Abstract] | |||
Basis spread on variable interest rate | 1.75% | ||
Potential increases in interest rate upon certain increases to leverage ratios, total | 0.50% | ||
Potential increase in interest rate upon certain increases to leverage ratios, per reduction | 0.25% | ||
LIBOR | Minimum | Revolving Credit Facility | |||
Line of Credit Facility [Abstract] | |||
Coupon rate | 0.00% | ||
Term Loan A Facility | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Principal amount issued | $ 750 | ||
Debt instrument, term | 5 years | ||
Potential reductions in interest rate | reduction | 2 | ||
Effective interest rate | 4.01% | ||
Quarterly principal payment percent, year one | 0.00% | ||
Quarterly principal payment percent, year two | 1.25% | ||
Quarterly principal payment percent, year three | 1.75% | ||
Quarterly principal payment percent, year four | 2.50% | ||
Quarterly principal payment percent, year five | 2.50% | ||
Term Loan A Facility | Base Rate | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Basis spread on variable interest rate | 0.75% | ||
Term Loan A Facility | LIBOR | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Basis spread on variable interest rate | 1.75% | ||
Potential reduction in interest rate if certain leverage ratios are met | 0.25% | ||
Potential reduction in interest rate if certain leverage ratios are met | 0.50% | ||
Term Loan A Facility | LIBOR | Minimum | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Coupon rate | 0.00% | ||
Term Loan B Facility | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Principal amount issued | $ 1,250 | ||
Debt instrument, term | 7 years | ||
Effective interest rate | 4.51% | ||
Quarterly principal payment percent | 0.25% | ||
Term Loan B Facility | Base Rate | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Basis spread on variable interest rate | 1.25% | ||
Term Loan B Facility | LIBOR | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Basis spread on variable interest rate | 2.25% | ||
Term Loan B Facility | LIBOR | Minimum | Term Loan | |||
Line of Credit Facility [Abstract] | |||
Coupon rate | 0.00% | ||
Senior Credit Facilities | |||
Line of Credit Facility [Abstract] | |||
Net loss, amount free of restrictions | $ (160.6) | ||
Retained earnings, amount free of restrictions | $ 332.3 |
Debt (Narrative - 5.875% Senior
Debt (Narrative - 5.875% Senior Notes) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Sep. 30, 2018 | Mar. 28, 2018 | Oct. 27, 2016 | |
Debt Instrument [Line Items] | |||
Basis spread on treasury rate | 0.50% | ||
5.875% Senior Notes | |||
Debt Instrument [Line Items] | |||
Net loss, amount free of restrictions | $ (160.6) | ||
Retained earnings, amount free of restrictions | $ 332.3 | ||
5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Coupon rate | 5.875% | ||
Debt instrument redemption premium percentage, as a percentage of principal amount prepaid or redeemed | 1.00% | ||
2016 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal amount issued | $ 520 | ||
2018 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal amount issued | $ 512.3 | ||
Prior to November 1, 2019 | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 100.00% | ||
On or after November 1, 2019 | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 104.406% | ||
On or after November 1, 2020 | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 102.938% | ||
On or after November 1, 2021 | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 101.439% | ||
On or after November 1, 2022 | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 100.00% | ||
Change in Control | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 101.00% | ||
Certain Asset Disposition | 5.875% Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage | 100.00% |
Debt (Interest Expense) (Detail
Debt (Interest Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Debt Disclosure [Abstract] | |||||
Cash interest | $ 35.8 | $ 31.8 | $ 68.2 | $ 66.3 | |
Amortization of debt discount and financing costs | 3 | 3 | 6 | 7.5 | |
Interest expense, before interest on dissenting shareholders' liability | [1] | 38.8 | 34.8 | 74.2 | 73.8 |
Interest on dissenting shareholders' liability | 16.7 | 13.9 | 32.6 | 27.2 | |
Total interest expense | $ 55.5 | $ 48.7 | $ 106.8 | $ 101 | |
[1] | Represents interest expense before interest on dissenting shareholders' liability. |
Film Obligations and Producti_3
Film Obligations and Production Loans (Film Obligations And Production Loans) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 31, 2018 |
Film Obligations And Production Loans [Abstract] | ||
Film obligations | $ 150.7 | $ 146.7 |
Production loans | 318.1 | 352.9 |
Total film obligations and production loans | 468.8 | 499.6 |
Unamortized debt issuance costs | (0.5) | (0.4) |
Total film obligations and production loans, net | 468.3 | 499.2 |
Less current portion | (318.7) | (327.9) |
Total non-current film obligations and production loans | $ 149.6 | $ 171.3 |
Film Obligations and Producti_4
Film Obligations and Production Loans (Narrative) (Details) - Production Loans | Sep. 30, 2018 |
Minimum | |
Interest rates on production loans | 4.43% |
Maximum | |
Interest rates on production loans | 5.30% |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Required to be Carried at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 31, 2018 |
Assets: | ||
Available-for-sale securities | $ 4.6 | $ 7.3 |
Forward exchange contracts | 0.8 | 0.3 |
Interest rate swaps | 5.4 | 0 |
Liabilities: | ||
Forward exchange contracts | (0.5) | (0.6) |
Fair value, net asset (liability) | 10.3 | 7 |
Level 1 | ||
Assets: | ||
Available-for-sale securities | 4.6 | 7.3 |
Forward exchange contracts | 0 | 0 |
Interest rate swaps | 0 | 0 |
Liabilities: | ||
Forward exchange contracts | 0 | 0 |
Fair value, net asset (liability) | 4.6 | 7.3 |
Level 2 | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Forward exchange contracts | 0.8 | 0.3 |
Interest rate swaps | 5.4 | 0 |
Liabilities: | ||
Forward exchange contracts | (0.5) | (0.6) |
Fair value, net asset (liability) | $ 5.7 | $ (0.3) |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values And Fair Values Of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Apr. 15, 2018 | Mar. 31, 2018 | |
Senior Notes | 5.875% Senior Notes | ||||
Fair Value, Carrying Values and Fair Values of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis [Line Items] | ||||
Coupon rate | 5.875% | |||
Convertible Senior Subordinated Notes | April 2013 Notes | ||||
Fair Value, Carrying Values and Fair Values of Assets and Liabilities Not Required to be Carried at Fair Value on a Recurring Basis [Line Items] | ||||
Coupon rate | 1.25% | 1.25% | ||
Carrying Value | ||||
Assets: | ||||
Investment in Pop's mandatorily redeemable preferred stock units(1) | $ 95.3 | $ 91.3 | ||
Liabilities: | ||||
Total liabilities, fair value disclosure | 2,775.1 | 2,872 | ||
Carrying Value | Term Loan | Term Loan A Facility | ||||
Liabilities: | ||||
Loans, fair value disclosure | 731.6 | 729.7 | ||
Carrying Value | Term Loan | Term Loan B Facility | ||||
Liabilities: | ||||
Loans, fair value disclosure | 1,224.3 | 1,229.3 | ||
Carrying Value | Senior Notes | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior Notes, fair value disclosure | 501.6 | 500.4 | ||
Carrying Value | Convertible Senior Subordinated Notes | April 2013 Notes | ||||
Liabilities: | ||||
Convertible notes, fair value disclosures | 0 | 60 | ||
Carrying Value | Production Loans | Production Loans | ||||
Liabilities: | ||||
Loans, fair value disclosure | 317.6 | 352.6 | ||
Fair Value | Fair Value (Level 3) | ||||
Assets: | ||||
Investment in Pop's mandatorily redeemable preferred stock units(1) | [1] | 125 | 125 | |
Fair Value | Fair Value (Level 2) | ||||
Liabilities: | ||||
Total liabilities, fair value disclosure | [2] | 2,852.7 | 2,955.2 | |
Fair Value | Fair Value (Level 2) | Term Loan | Term Loan A Facility | ||||
Liabilities: | ||||
Loans, fair value disclosure | [2] | 747.2 | 750.9 | |
Fair Value | Fair Value (Level 2) | Term Loan | Term Loan B Facility | ||||
Liabilities: | ||||
Loans, fair value disclosure | [2] | 1,253.1 | 1,251.6 | |
Fair Value | Fair Value (Level 2) | Senior Notes | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior Notes, fair value disclosure | [2] | 534.3 | 539.5 | |
Fair Value | Fair Value (Level 2) | Convertible Senior Subordinated Notes | April 2013 Notes | ||||
Liabilities: | ||||
Convertible notes, fair value disclosures | [2] | 0 | 60.3 | |
Fair Value | Fair Value (Level 2) | Production Loans | Production Loans | ||||
Liabilities: | ||||
Loans, fair value disclosure | [2] | $ 318.1 | $ 352.9 | |
[1] | The Company measures the fair value of its investment in Pop's mandatorily redeemable preferred stock units using primarily a discounted cash flow analysis based on the expected cash flows of the investment (a Level 3 measurement). The analysis reflects the contractual terms of the investment, including the period to maturity, and uses a discount rate commensurate with the risk associated with the investment. | |||
[2] | The Company measures the fair value of its outstanding debt using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements). |
Noncontrolling Interests (Chang
Noncontrolling Interests (Changes In Redeemable Noncontrolling Interest) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | $ 101.8 | $ 93.8 |
Initial fair value of redeemable noncontrolling interest of 3 Arts Entertainment | 15.8 | 0 |
Net income (loss) attributable to redeemable noncontrolling interests | (7.4) | 0 |
Noncontrolling interests discount accretion | 9.4 | 2.9 |
Adjustments to redemption value | 15 | 5.1 |
Cash distributions | (1.5) | (4.6) |
Ending balance | $ 133.1 | $ 97.2 |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) - USD ($) $ in Millions | May 29, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Redeemable Noncontrolling Interest [Line Items] | |||
Initial fair value of redeemable noncontrolling interest of 3 Arts Entertainment | $ 15.8 | $ 0 | |
3 Arts Entertainment | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Initial fair value of redeemable noncontrolling interest of 3 Arts Entertainment | $ 15.8 | ||
Redeemable noncontrolling interest, ownership percentage held by noncontrolling interest holders | 49.00% | ||
Put option, term from acquisition date | 5 years | ||
Put rights exercise period | 60 days | ||
Period after expiration of put rights that cal rights begin | 30 days | ||
Call rights exercise period | 60 days |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 901 | $ 940.8 | $ 1,833.6 | $ 1,946.1 |
Operating segments | Motion Picture | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 379 | 385.7 | 744.3 | 858 |
Operating segments | Motion Picture | Theatrical | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 69.1 | 57.9 | 119.5 | 108.7 |
Operating segments | Motion Picture | Digital Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 85.1 | 90.4 | 171.3 | 192 |
Operating segments | Motion Picture | Packaged Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 64.5 | 75.3 | 141 | 207.7 |
Operating segments | Motion Picture | Home Entertainment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 149.6 | 165.7 | 312.3 | 399.7 |
Operating segments | Motion Picture | Television | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70.9 | 74.2 | 132.8 | 131.8 |
Operating segments | Motion Picture | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 82.2 | 79.9 | 149.6 | 202.3 |
Operating segments | Motion Picture | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7.2 | 8 | 30.1 | 15.5 |
Operating segments | Television Production | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 152.1 | 211.2 | 431.5 | 472.4 |
Operating segments | Television Production | Television | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 85.1 | 143.3 | 302.9 | 330.7 |
Operating segments | Television Production | Digital Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27 | 25.1 | 43.3 | 66.7 |
Operating segments | Television Production | Packaged Media | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1.6 | 4.8 | 3.4 | 5.8 |
Operating segments | Television Production | Home Entertainment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 28.6 | 29.9 | 46.7 | 72.5 |
Operating segments | Television Production | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21.8 | 36.8 | 58.8 | 68.1 |
Operating segments | Television Production | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16.6 | 1.2 | 23.1 | 1.1 |
Operating segments | Media Networks | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 377.3 | 359.7 | 732.2 | 704.3 |
Operating segments | Media Networks | Starz Networks - programming revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 373.7 | 358.6 | 724.9 | 701.8 |
Operating segments | Media Networks | Streaming Services - programming revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3.6 | 1.1 | 7.3 | 2.5 |
Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (7.4) | (15.8) | (74.4) | (88.6) |
Intersegment Eliminations | Motion Picture | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (2.2) | (2.5) | (4.3) | (5.9) |
Intersegment Eliminations | Television Production | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (5.2) | (13.3) | (70) | (82.4) |
Intersegment Eliminations | Media Networks | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ (0.1) | $ (0.3) |
Revenue (Contract with Customer
Revenue (Contract with Customer, Asset and Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 | |||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | ||||||||
Accounts receivable, net - current | $ 1,059 | $ 1,059 | $ 1,042.2 | $ 946 | ||||
Accounts receivable, net - non-current | 266.4 | [1] | 266.4 | [1] | 257.7 | [1] | 325.2 | |
Contract asset - current | [2] | 19.9 | 19.9 | 78.3 | ||||
Contract asset - non-current | [3] | 12.1 | 12.1 | 71.5 | ||||
Deferred revenue - current | 238 | 238 | 183.8 | $ 183.9 | ||||
Deferred revenue - non-current | 59.3 | 59.3 | $ 70.5 | |||||
Contract with Customer, Liability, Revenue Recognized | $ 33 | 105.2 | ||||||
Accounts receivable, current | ||||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | ||||||||
Contract with Customer, Asset, Increase (Decrease) | 16.8 | |||||||
Accounts receivable, noncurrent | ||||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | ||||||||
Contract with Customer, Asset, Increase (Decrease) | [1] | 8.7 | ||||||
Other Current Assets | ||||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | ||||||||
Contract with Customer, Asset, Increase (Decrease) | [2] | (58.4) | ||||||
Other Non-Current Assets | ||||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | ||||||||
Contract with Customer, Asset, Increase (Decrease) | [3] | (59.4) | ||||||
Deferred revenue, current | ||||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | ||||||||
Contract with Customer, Liability, Increase (Decrease) | 54.2 | |||||||
Deferred revenue, noncurrent | ||||||||
Contract with Customer, Schedule of Asset and Liability [Line Items] | ||||||||
Contract with Customer, Liability, Increase (Decrease) | $ (11.2) | |||||||
[1] | Included in accounts receivable within non-current other assets in the unaudited condensed consolidated balance sheets. | |||||||
[2] | Included in prepaid expenses and other within other current assets in the unaudited condensed consolidated balance sheets. | |||||||
[3] | Included in prepaid expenses and other within non-current other assets in the unaudited condensed consolidated balance sheets. |
Revenue (Remaining Performance
Revenue (Remaining Performance Obligations - Timing) (Details) $ in Millions | 6 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation | $ 2,242.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation | $ 950.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation | $ 717 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation | $ 241.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation | $ 333 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 33 | $ 105.2 |
Revenue recognized in period from performance obligations satisfied in previous period | $ 33.7 | $ 122.2 |
Timing of payment | 60 days |
Revenue (Comparison of New and
Revenue (Comparison of New and Prior Revenue Recognition Guidance) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Apr. 01, 2018 | Mar. 31, 2018 | |
Assets | ||||||
Accounts receivable, net - current | $ 1,059 | $ 1,059 | $ 1,042.2 | $ 946 | ||
Other assets - current | 191 | 191 | 195.8 | |||
Other assets - non-current | 439.6 | 439.6 | 458.6 | |||
Investment in films and television programs and program rights, net | 1,662.9 | 1,662.9 | 1,692 | |||
Deferred tax assets | 40.1 | 40.1 | 38.8 | |||
Liabilities | ||||||
Accounts payable and accrued liabilities | 585.9 | 585.9 | 447.7 | |||
Participations and residuals - current | 494.3 | 494.3 | 504.5 | |||
Participations and residuals - non-current | 456.5 | 456.5 | 438.3 | |||
Deferred revenue - current | 238 | 238 | $ 183.8 | 183.9 | ||
Deferred revenue - non-current | 59.3 | 59.3 | 70.3 | |||
Deferred tax liabilities | 58.8 | 58.8 | 91.9 | |||
Equity | ||||||
Retained earnings | 332.3 | 332.3 | $ 516.6 | |||
Statement of Operations Information: | ||||||
Revenues | 901 | $ 940.8 | 1,833.6 | $ 1,946.1 | ||
Direct operating | 463.2 | 521.6 | 993.2 | 1,076.4 | ||
Operating income | 39.1 | 30.4 | 77.2 | 120.1 | ||
Interest and other income | 3 | 2.7 | 6.1 | 5.5 | ||
Loss before income taxes | (175.3) | (34.7) | (192.4) | 186.6 | ||
Income tax benefit | 26 | 47.6 | 31.8 | 0.8 | ||
Net loss | (149.3) | $ 12.9 | (160.6) | $ 187.4 | ||
Impact of Adoption | Revenue Recognition ASU 2014-09 | ||||||
Assets | ||||||
Accounts receivable, net - current | (129.2) | (129.2) | ||||
Other assets - current | (19.8) | (19.8) | ||||
Other assets - non-current | (3.9) | (3.9) | ||||
Investment in films and television programs and program rights, net | 35.2 | 35.2 | ||||
Liabilities | ||||||
Accounts payable and accrued liabilities | (76.3) | (76.3) | ||||
Participations and residuals - current | (26.4) | (26.4) | ||||
Deferred revenue - current | (1.5) | (1.5) | ||||
Deferred revenue - non-current | 2.3 | 2.3 | ||||
Deferred tax liabilities | (3.1) | (3.1) | ||||
Equity | ||||||
Retained earnings | (12.7) | (12.7) | ||||
Statement of Operations Information: | ||||||
Revenues | 16.1 | 13.2 | ||||
Direct operating | 5.6 | 4.7 | ||||
Operating income | 10.5 | 8.5 | ||||
Interest and other income | (0.2) | (0.3) | ||||
Loss before income taxes | 10.3 | 8.2 | ||||
Income tax benefit | (2.6) | (2.2) | ||||
Net loss | 7.7 | 6 | ||||
Without Adoption of New Revenue Guidance | Revenue Recognition ASU 2014-09 | ||||||
Assets | ||||||
Accounts receivable, net - current | 929.8 | 929.8 | ||||
Other assets - current | 171.2 | 171.2 | ||||
Other assets - non-current | 435.7 | 435.7 | ||||
Investment in films and television programs and program rights, net | 1,698.1 | 1,698.1 | ||||
Liabilities | ||||||
Accounts payable and accrued liabilities | 509.6 | 509.6 | ||||
Participations and residuals - current | 467.9 | 467.9 | ||||
Deferred revenue - current | 236.5 | 236.5 | ||||
Deferred revenue - non-current | 61.6 | 61.6 | ||||
Deferred tax liabilities | 55.7 | 55.7 | ||||
Equity | ||||||
Retained earnings | 319.6 | 319.6 | ||||
Statement of Operations Information: | ||||||
Revenues | 917.1 | 1,846.8 | ||||
Direct operating | 468.8 | 997.9 | ||||
Operating income | 49.6 | 85.7 | ||||
Interest and other income | 2.8 | 5.8 | ||||
Loss before income taxes | (165) | (184.2) | ||||
Income tax benefit | 23.4 | 29.6 | ||||
Net loss | $ (141.6) | $ (154.6) |
Net Income (Loss) Per Share (Ba
Net Income (Loss) Per Share (Basic) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (144.1) | $ 15.5 | $ (151.9) | $ 189.3 |
Denominator: | ||||
Weighted average common shares outstanding (in shares) | 213.6 | 207.8 | 212.7 | 207.3 |
Basic net income (loss) per common share (in usd per share) | $ (0.67) | $ 0.07 | $ (0.71) | $ 0.91 |
Net Income (Loss) Per Share (Di
Net Income (Loss) Per Share (Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders | $ (144.1) | $ 15.5 | $ (151.9) | $ 189.3 |
Interest on convertible notes, net of tax | 0 | 0.1 | 0 | 0.2 |
Numerator for diluted net income (loss) per common share | $ (144.1) | $ 15.6 | $ (151.9) | $ 189.5 |
Denominator: | ||||
Weighted average common shares outstanding (in shares) | 213.6 | 207.8 | 212.7 | 207.3 |
Effect of dilutive securities: | ||||
Conversion of notes (in shares) | 0 | 2.1 | 0 | 2.1 |
Share purchase options (in shares) | 0 | 7.4 | 0 | 6.9 |
Restricted share units and restricted stock (in shares) | 0 | 0.8 | 0 | 0.7 |
Contingently issuable shares | 0 | 1.7 | 0 | 1.7 |
Adjusted weighted average common shares outstanding | 213.6 | 219.8 | 212.7 | 218.7 |
Diluted net income (loss) per common share (in usd per share) | $ (0.67) | $ 0.07 | $ (0.71) | $ 0.87 |
Net Income (Loss) Per Share (An
Net Income (Loss) Per Share (Anti-Dilutive Shares Issuable) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Anti-dilutive shares issuable [Line Items] | ||||
Anti-dilutive shares issuable (in shares) | 8.3 | 11.5 | 8.2 | 15 |
Conversion of Notes | ||||
Anti-dilutive shares issuable [Line Items] | ||||
Anti-dilutive shares issuable (in shares) | 0 | 0 | 0.2 | 0 |
Share purchase options | ||||
Anti-dilutive shares issuable [Line Items] | ||||
Anti-dilutive shares issuable (in shares) | 5 | 10.3 | 5.1 | 13.6 |
Restricted Stock and Restricted Share Units (RSUs) | ||||
Anti-dilutive shares issuable [Line Items] | ||||
Anti-dilutive shares issuable (in shares) | 0.3 | 0.1 | 0.3 | 0.1 |
Other issuable shares | ||||
Anti-dilutive shares issuable [Line Items] | ||||
Anti-dilutive shares issuable (in shares) | 3 | 1.1 | 2.6 | 1.3 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) $ / shares in Units, $ in Thousands | Dec. 08, 2016USD ($)installment | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / shares | Mar. 31, 2018USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividends declared per common share (in usd per share) | $ / shares | $ 0.09 | $ 0 | $ 0.18 | $ 0 | ||
Cash dividends payable | $ 19,400 | $ 0 | $ 19,400 | $ 0 | ||
Number of annual installments | installment | 3 | |||||
Annual installment payment, equity or cash, amount | $ 16,670 | |||||
Value of agreement | $ 50,000 | |||||
Class A Voting Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized common shares (in shares) | shares | 500,000,000 | 500,000,000 | 500,000,000 | |||
Annual installment payment, equity or cash, amount | $ 8,300 | |||||
Affiliation agreement, annual installment payment, shares issued | shares | 266,667 | |||||
Class B Non-Voting Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized common shares (in shares) | shares | 500,000,000 | 500,000,000 | 500,000,000 | |||
Annual installment payment, equity or cash, amount | $ 8,300 | |||||
Affiliation agreement, annual installment payment, shares issued | shares | 278,334 |
Capital Stock (Common Shares Re
Capital Stock (Common Shares Reserved for Future Issuance) (Details) - shares shares in Millions | Sep. 30, 2018 | Apr. 15, 2018 | Mar. 31, 2018 |
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 44.2 | 46.7 | |
Stock Options and Equity-Settled SARs | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 33.8 | 32.1 | |
Restricted Stock and Restricted Share Units - Unvested | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 2.3 | 2.2 | |
Common shares available for future issuance under the 2017 Plan | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 8.1 | 10.3 | |
Convertible Senior Subordinated Notes | April 2013 Notes | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Shares reserved for future issuance (in shares) | 0 | 2.1 | |
April 2013 Notes | Convertible Senior Subordinated Notes | |||
Common Shares Reserved For Future Issuance [Line Items] | |||
Coupon rate | 1.25% | 1.25% |
Capital Stock (Share-Based Comp
Capital Stock (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Share-Based Compensation Expense [Line Items] | ||||||
Share-based compensation expense | $ 15.1 | $ 23.6 | $ 30.2 | $ 47.4 | ||
Total share-based compensation expense | 15.1 | 23.6 | 30.2 | 47.4 | ||
Tax impact | (3.4) | (8.3) | (6.9) | [1] | (16.8) | [1] |
Reduction in net income | 11.7 | 15.3 | 23.3 | 30.6 | ||
Stock Options | ||||||
Share-Based Compensation Expense [Line Items] | ||||||
Share-based compensation expense | 6.7 | 11.7 | 13.5 | 24 | ||
Restricted Share Units and Other Share-based Compensation | ||||||
Share-Based Compensation Expense [Line Items] | ||||||
Share-based compensation expense | 7.2 | 9.9 | 13.9 | 20.2 | ||
Share Appreciation Rights (SARs) | ||||||
Share-Based Compensation Expense [Line Items] | ||||||
Share-based compensation expense | $ 1.2 | $ 2 | $ 2.8 | $ 3.2 | ||
[1] | Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements. |
Capital Stock (Share-based Co_2
Capital Stock (Share-based Compensation Expense by Category) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-Based Compensation Expense [Line Items] | ||||
Share-based compensation expense | $ 15.1 | $ 23.6 | $ 30.2 | $ 47.4 |
Direct operating | ||||
Share-Based Compensation Expense [Line Items] | ||||
Share-based compensation expense | 0.3 | 0.2 | 0.5 | 0.5 |
Distribution and marketing | ||||
Share-Based Compensation Expense [Line Items] | ||||
Share-based compensation expense | 0.1 | 0.2 | 0.1 | 0.4 |
General and administration | ||||
Share-Based Compensation Expense [Line Items] | ||||
Share-based compensation expense | $ 14.7 | $ 23.2 | $ 29.6 | $ 46.5 |
Capital Stock (Stock Option, Re
Capital Stock (Stock Option, Restricted Stock and Restricted Share Unit Activity) (Details) | 6 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Class A Voting Shares | Stock Options and Equity-Settled SARs | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at March 31, 2018 (in shares) | shares | 8,636,437 |
Granted (in shares) | shares | 130,832 |
Options exercised (in shares) | shares | (18,719) |
Forfeited or expired (in shares) | shares | (229,138) |
Outstanding at September 30, 2018 (in shares) | shares | 8,519,412 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding at March 31, 2018, weighted average exercise price (in usd per share) | $ / shares | $ 26.93 |
Granted, weighted average exercise price (in usd per share) | $ / shares | 25.96 |
Options exercised, weighted average exercise price (in usd per share) | $ / shares | 21.85 |
Forfeited or expired, weighted average exercise price (in usd per share) | $ / shares | 35.25 |
Outstanding at September 30, 2018, weighted average exercise price (in usd per share) | $ / shares | $ 26.70 |
Class A Voting Shares | Restricted Stock and Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at March 31, 2018 (in shares) | shares | 230,561 |
Granted (in shares) | shares | 15,939 |
Restricted stock or RSUs vested (in shares) | shares | (121,651) |
Forfeited or expired (in shares) | shares | (11,823) |
Outstanding at September 30, 2018 (in shares) | shares | 113,026 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding at March 31, 2018, weighted average grant-date fair value (in usd per share) | $ / shares | $ 28.49 |
Granted, weighted average grant date fair value (in usd per share) | $ / shares | 23.19 |
Restricted stock or RSUs vested, weighted average grant-date fair value (in usd per share) | $ / shares | 29.89 |
Forfeited or expired, weighted average grant-date fair value (in usd per share) | $ / shares | 25.69 |
Outstanding at September 30, 2018, weighted average grant-date fair value (in usd per share) | $ / shares | $ 26.53 |
Class B Non-Voting Shares | Stock Options and Equity-Settled SARs | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at March 31, 2018 (in shares) | shares | 23,463,115 |
Granted (in shares) | shares | 2,508,991 |
Options exercised (in shares) | shares | (262,981) |
Forfeited or expired (in shares) | shares | (448,511) |
Outstanding at September 30, 2018 (in shares) | shares | 25,260,614 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding at March 31, 2018, weighted average exercise price (in usd per share) | $ / shares | $ 20.56 |
Granted, weighted average exercise price (in usd per share) | $ / shares | 23.91 |
Options exercised, weighted average exercise price (in usd per share) | $ / shares | 15.18 |
Forfeited or expired, weighted average exercise price (in usd per share) | $ / shares | 30.83 |
Outstanding at September 30, 2018, weighted average exercise price (in usd per share) | $ / shares | $ 20.78 |
Class B Non-Voting Shares | Restricted Stock and Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at March 31, 2018 (in shares) | shares | 2,001,049 |
Granted (in shares) | shares | 594,476 |
Restricted stock or RSUs vested (in shares) | shares | (291,750) |
Forfeited or expired (in shares) | shares | (77,763) |
Outstanding at September 30, 2018 (in shares) | shares | 2,226,012 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding at March 31, 2018, weighted average grant-date fair value (in usd per share) | $ / shares | $ 27.97 |
Granted, weighted average grant date fair value (in usd per share) | $ / shares | 23.15 |
Restricted stock or RSUs vested, weighted average grant-date fair value (in usd per share) | $ / shares | 28.17 |
Forfeited or expired, weighted average grant-date fair value (in usd per share) | $ / shares | 27.35 |
Outstanding at September 30, 2018, weighted average grant-date fair value (in usd per share) | $ / shares | $ 26.68 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | Dec. 22, 2017 | Dec. 21, 2017 | Mar. 31, 2018 |
Operating Loss Carryforwards [Line Items] | |||
Statutory tax rate | 21.00% | 35.00% | |
Pro Forma | |||
Operating Loss Carryforwards [Line Items] | |||
Statutory tax rate | 31.50% |
Restructuring and Other (Restru
Restructuring and Other (Restructuring and Other) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | $ 15 | $ 3.5 | $ 25.6 | $ 14.4 | |
Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | [1] | 2.9 | 0 | 3.7 | 1 |
Severance | Accounts Payable and Accrued Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Remaining severance liability, expected to be paid in next 12 months | 7 | 7 | |||
Transaction and related costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other | [2] | $ 12.1 | $ 3.5 | $ 21.9 | $ 13.4 |
[1] | Severance costs in the three and six months ended September 30, 2018 and the six months ended September 30, 2017 were primarily related to restructuring activities in connection with recent acquisitions, and other cost-saving initiatives. As of September 30, 2018, the remaining severance liability was approximately $7.0 million, which is expected to be paid in the next 12 months. | ||||
[2] | Transaction and related costs in the three and six months ended September 30, 2018 and 2017 reflect transaction, integration and legal costs associated with certain strategic transactions and legal matters. In the three and six months ended September 30, 2018, these costs were primarily related to the legal fees associated with the Starz class action lawsuits and other matters, and to a lesser extent, costs related to the acquisition of 3 Arts Entertainment and other strategic transactions. In the three and six months ended September 30, 2017, these costs were primarily related to the sale of EPIX (see Note 4), the legal fees associated with the Starz class action lawsuits and other matters, and the integration of Starz. |
Restructuring and Other (Severa
Restructuring and Other (Severance Liability Rollforward) (Details) - Severance liability - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring and Other Severance Liability | ||
Beginning balance | $ 14.7 | $ 22.2 |
Accruals | 3.7 | 1 |
Severance payments | (11.4) | (12.1) |
Ending balance | $ 7 | $ 11.1 |
Segment Information (Segment In
Segment Information (Segment Information By Business Unit) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable business segments | segment | 3 | |||
Segment revenues | $ 901 | $ 940.8 | $ 1,833.6 | $ 1,946.1 |
Gross contribution | 215.8 | 195.3 | 423.1 | 463.9 |
Segment general and administration | 61.7 | 61.4 | 124.6 | 123.1 |
Segment profit | 154.1 | 133.9 | 298.5 | 340.8 |
Reportable Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment general and administration | 61.7 | 61.4 | 124.6 | 123.1 |
Segment profit | 154.1 | 133.9 | 298.5 | 340.8 |
Reportable Segments | Motion Picture | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | 379 | 385.7 | 744.3 | 858 |
Gross contribution | 38.9 | 35.2 | 117.7 | 149.1 |
Segment general and administration | 26 | 26.3 | 52.8 | 53.2 |
Segment profit | 12.9 | 8.9 | 64.9 | 95.9 |
Reportable Segments | Television Production | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | 152.1 | 211.2 | 431.5 | 472.4 |
Gross contribution | 20.4 | 28.9 | 46.1 | 80.9 |
Segment general and administration | 11 | 10.6 | 21.5 | 19.7 |
Segment profit | 9.4 | 18.3 | 24.6 | 61.2 |
Reportable Segments | Media Networks | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | 377.3 | 359.7 | 732.2 | 704.3 |
Gross contribution | 147.4 | 127.8 | 261.6 | 242.3 |
Segment general and administration | 24.7 | 24.5 | 50.3 | 50.2 |
Segment profit | 122.7 | 103.3 | 211.3 | 192.1 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | (7.4) | (15.8) | (74.4) | (88.6) |
Gross contribution | 9.1 | 3.4 | (2.3) | (8.4) |
Segment profit | 9.1 | 3.4 | (2.3) | (8.4) |
Intersegment Eliminations | Motion Picture | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | (2.2) | (2.5) | (4.3) | (5.9) |
Intersegment Eliminations | Television Production | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | (5.2) | (13.3) | (70) | (82.4) |
Intersegment Eliminations | Media Networks | ||||
Segment Reporting Information [Line Items] | ||||
Segment revenues | $ 0 | $ 0 | $ (0.1) | $ (0.3) |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Total Segment Profit To The Company's Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Company’s total segment profit | $ 154.1 | $ 133.9 | $ 298.5 | $ 340.8 | |
Adjusted depreciation and amortization | [1] | (10) | (9.3) | (20.3) | (19.4) |
Restructuring and other | (15) | (3.5) | (25.6) | (14.4) | |
Adjusted share-based compensation expense | (15.1) | (23.6) | (30.2) | (47.4) | |
Operating income | 39.1 | 30.4 | 77.2 | 120.1 | |
Interest expense | (55.5) | (48.7) | (106.8) | (101) | |
Shareholder litigation settlements | [2] | (114.1) | 0 | (114.1) | 0 |
Interest and other income | 3 | 2.7 | 6.1 | 5.5 | |
Loss on extinguishment of debt | 0 | (6.4) | 0 | (18) | |
Gain (loss) on investments | (36.1) | 0 | (37) | 201 | |
Equity interests loss | (11.7) | (12.7) | (17.8) | (21) | |
Income (loss) before income taxes | (175.3) | (34.7) | (192.4) | 186.6 | |
Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Company’s total segment profit | 154.1 | 133.9 | 298.5 | 340.8 | |
Corporate general and administrative expense | |||||
Segment Reporting Information [Line Items] | |||||
Corporate general and administrative expenses | (25.3) | (25.3) | (52.8) | (50.7) | |
Corporate and reconciling items | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring and other | [3] | (15) | (3.5) | (25.6) | (14.4) |
Adjusted share-based compensation expense | [4] | (15.1) | (23.6) | (30.2) | (47.4) |
Purchase accounting and related adjustments | [5] | $ (49.6) | $ (41.8) | $ (92.4) | $ (88.8) |
[1] | Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions)Depreciation and amortization$40.8 $39.3 $81.1 $79.3Less: Amount included in purchase accounting and related adjustments(30.8) (30.0) (60.8) (59.9)Adjusted depreciation and amortization$10.0 $9.3 $20.3 $19.4 | ||||
[2] | Shareholder litigation settlements of $114.1 million in the three and six months ended September 30, 2018 includes the following: (i) $54.8 million for the net expense recorded for the settlement of the Fiduciary Litigation (representing the settlement amount of $92.5 million, which the Company has included in accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheet, net of aggregate insurance reimbursement of $37.8 million, which amount the Company has recorded a receivable included in the "other current assets" line item in the unaudited condensed consolidated balance sheet as of September 30, 2018) and (ii) $59.3 million related to the Appraisal Litigation, representing the amount by which the settlement amount of approximately $961 million exceeds the previously accrued $901.9 million dissenting shareholders' liability, before considering the settlement (i.e., dissenting shareholders' liability plus accrued interest through September 30, 2018). See Note 16. | ||||
[3] | Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 14). | ||||
[4] | Represents share-based compensation expense excluding, when applicable, amounts attributable to immediately vested stock bonus awards (which are, when granted, included in segment and corporate general and administrative expense) and amounts related to severance awards included in restructuring and other. There were no such amounts in the three and six months ended September 30, 2018 and 2017, and accordingly, adjusted share-based compensation expense represents total share-based compensation expense in the three and six months ended September 30, 2018 and 2017. | ||||
[5] | Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions)Purchase accounting and related adjustments: Direct operating$5.6 $10.2 $13.6 $26.0General and administrative expense13.2 1.6 18.0 2.9Depreciation and amortization30.8 30.0 60.8 59.9 $49.6 $41.8 $92.4 $88.8 |
Segment Information (Adjusted D
Segment Information (Adjusted Depreciation and Amortization) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Depreciation and amortization | $ 40.8 | $ 39.3 | $ 81.1 | $ 79.3 | |
Adjusted depreciation and amortization | [1] | 10 | 9.3 | 20.3 | 19.4 |
Purchase accounting and related adjustments | Corporate and reconciling items | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Depreciation and amortization | $ (30.8) | $ (30) | $ (60.8) | $ (59.9) | |
[1] | Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions)Depreciation and amortization$40.8 $39.3 $81.1 $79.3Less: Amount included in purchase accounting and related adjustments(30.8) (30.0) (60.8) (59.9)Adjusted depreciation and amortization$10.0 $9.3 $20.3 $19.4 |
Segment Information (Purchase A
Segment Information (Purchase Accounting and Related Adjustments and Shareholder Litigation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Shareholder litigation settlements | [1] | $ 114.1 | $ 0 | $ 114.1 | $ 0 |
Corporate and reconciling items | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Purchase accounting and related adjustments | [2] | 49.6 | 41.8 | 92.4 | 88.8 |
Direct operating | Corporate and reconciling items | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Purchase accounting and related adjustments | 5.6 | 10.2 | 13.6 | 26 | |
General and administrative expense | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Purchase accounting and related adjustments | 13.2 | 1.6 | 18 | 3 | |
General and administrative expense | Corporate and reconciling items | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Purchase accounting and related adjustments | 13.2 | 1.6 | 18 | 2.9 | |
Depreciation and amortization expense | Corporate and reconciling items | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Purchase accounting and related adjustments | 30.8 | $ 30 | 60.8 | $ 59.9 | |
Fiduciary Litigation | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Shareholder litigation settlements | 54.8 | 54.8 | |||
Settlement payment amount | 92.5 | 92.5 | |||
Insurance reimbursement receivable | 37.8 | 37.8 | |||
Appraisal Litigation | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Shareholder litigation settlements | 59.3 | 59.3 | |||
Settlement payment amount | 961 | 961 | |||
Dissenting shareholders' liability before settlement amount | $ 901.9 | $ 901.9 | |||
[1] | Shareholder litigation settlements of $114.1 million in the three and six months ended September 30, 2018 includes the following: (i) $54.8 million for the net expense recorded for the settlement of the Fiduciary Litigation (representing the settlement amount of $92.5 million, which the Company has included in accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheet, net of aggregate insurance reimbursement of $37.8 million, which amount the Company has recorded a receivable included in the "other current assets" line item in the unaudited condensed consolidated balance sheet as of September 30, 2018) and (ii) $59.3 million related to the Appraisal Litigation, representing the amount by which the settlement amount of approximately $961 million exceeds the previously accrued $901.9 million dissenting shareholders' liability, before considering the settlement (i.e., dissenting shareholders' liability plus accrued interest through September 30, 2018). See Note 16. | ||||
[2] | Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions)Purchase accounting and related adjustments: Direct operating$5.6 $10.2 $13.6 $26.0General and administrative expense13.2 1.6 18.0 2.9Depreciation and amortization30.8 30.0 60.8 59.9 $49.6 $41.8 $92.4 $88.8 |
Segment Information (Reconcil_2
Segment Information (Reconciliation of Segment General and Administration to Consolidated) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Segment general and administrative expenses | $ 61.7 | $ 61.4 | $ 124.6 | $ 123.1 | |
General and administration | 115 | 111.5 | 225.1 | 223.3 | |
Operating segments | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Segment general and administrative expenses | 61.7 | 61.4 | 124.6 | 123.1 | |
Corporate general and administrative expense | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Corporate general and administrative expenses | 25.3 | 25.3 | 52.8 | 50.7 | |
Corporate and reconciling items | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Purchase accounting and related adjustments | [1] | 49.6 | 41.8 | 92.4 | 88.8 |
General and administrative expense | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Purchase accounting and related adjustments | 13.2 | 1.6 | 18 | 3 | |
General and administrative expense | Corporate and reconciling items | |||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||
Share-based compensation expense included in general and administrative expense | 14.8 | 23.2 | 29.7 | 46.5 | |
Purchase accounting and related adjustments | $ 13.2 | $ 1.6 | $ 18 | $ 2.9 | |
[1] | Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements: Three Months Ended Six Months Ended September 30, September 30, 2018 2017 2018 2017 (Amounts in millions)Purchase accounting and related adjustments: Direct operating$5.6 $10.2 $13.6 $26.0General and administrative expense13.2 1.6 18.0 2.9Depreciation and amortization30.8 30.0 60.8 59.9 $49.6 $41.8 $92.4 $88.8 |
Segment Information (Reconcil_3
Segment Information (Reconciliation of Total Assets By Segment to Consolidated Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | $ 9,049.4 | $ 9,111.2 | $ 8,967.6 | |
Operating segments | Motion Picture | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 1,826.4 | 1,757.4 | ||
Operating segments | Television Production | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 1,500.8 | 1,400.5 | ||
Operating segments | Media Networks | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 5,085.6 | 5,166.5 | ||
Other unallocated assets | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | [1] | $ 636.6 | $ 643.2 | |
[1] | Other unallocated assets primarily consist of cash, other assets and investments. |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) shares in Millions, $ in Millions | Nov. 08, 2018USD ($) | Oct. 09, 2018USD ($) | Aug. 30, 2016class_action_complaint | Sep. 30, 2018USD ($)shares | Sep. 30, 2017USD ($) | Mar. 16, 2017plaintiff | Sep. 30, 2018USD ($)shares | Sep. 30, 2017USD ($) | Nov. 05, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | ||||||||||||
Shareholder litigation settlements | [1] | $ 114.1 | $ 0 | $ 114.1 | $ 0 | |||||||
Dissenting shareholders' liability | $ 961.3 | $ 961.3 | $ 869.3 | |||||||||
Petitions for appraisal filed | plaintiff | 5 | |||||||||||
Starz Dissenting Shareholders | Starz | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Outstanding equity interests (in shares) | shares | 22.5 | 22.5 | ||||||||||
Fiduciary Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of plaintiffs | class_action_complaint | 7 | |||||||||||
Settlement payment amount | $ 92.5 | $ 92.5 | ||||||||||
Insurance reimbursement receivable | 37.8 | 37.8 | ||||||||||
Shareholder litigation settlements | 54.8 | 54.8 | ||||||||||
Appraisal Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Settlement payment amount | 961 | 961 | ||||||||||
Dissenting shareholders' liability before settlement amount | 901.9 | 901.9 | ||||||||||
Shareholder litigation settlements | 59.3 | $ 59.3 | ||||||||||
Dissenting shareholders' liability | $ 885.2 | |||||||||||
Dissenting shareholders' liability, previously accrued interest | $ 87.9 | |||||||||||
Dissenting shareholders' liability, accrued interest for the quarter | $ 16.7 | |||||||||||
Subsequent Event | Fiduciary Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Settlement payment amount | $ 92.5 | |||||||||||
Lawsuit for insurance reimbursement, amount | $ 10 | |||||||||||
Subsequent Event | Appraisal Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Settlement payment amount | $ 961 | |||||||||||
[1] | Shareholder litigation settlements of $114.1 million in the three and six months ended September 30, 2018 includes the following: (i) $54.8 million for the net expense recorded for the settlement of the Fiduciary Litigation (representing the settlement amount of $92.5 million, which the Company has included in accounts payable and accrued liabilities in the unaudited condensed consolidated balance sheet, net of aggregate insurance reimbursement of $37.8 million, which amount the Company has recorded a receivable included in the "other current assets" line item in the unaudited condensed consolidated balance sheet as of September 30, 2018) and (ii) $59.3 million related to the Appraisal Litigation, representing the amount by which the settlement amount of approximately $961 million exceeds the previously accrued $901.9 million dissenting shareholders' liability, before considering the settlement (i.e., dissenting shareholders' liability plus accrued interest through September 30, 2018). See Note 16. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||||
Sep. 30, 2018 | Jul. 31, 2018 | Jun. 25, 2018 | May 23, 2018 | Mar. 31, 2018 | |
Derivative [Line Items] | |||||
Remaining maturity of forward foreign exchange contracts, maximum | 17 months | ||||
Foreign currency cash flow hedge loss estimated to be reclassified into earnings during next 12 months | $ 0.8 | ||||
Interest rate swap cash flow hedge loss estimated to be reclassified into earnings during next 12 months | 4.2 | ||||
Interest rate swap agreements | |||||
Derivative [Line Items] | |||||
Notional amount | $ 1,500 | $ 300 | $ 200 | $ 1,000 | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Forward Foreign Exchange Contracts) (Details) - Forward exchange contracts £ in Millions, $ in Millions, $ in Millions, $ in Millions | Sep. 30, 2018USD ($) | Sep. 30, 2018AUD ($) | Sep. 30, 2018CAD ($) | Sep. 30, 2018GBP (£) |
British Pounds Sterling | ||||
Derivative [Line Items] | ||||
Foreign Currency Amount | £ | £ 5.1 | |||
US Dollar Amount | $ 7.1 | |||
Weighted average exchange rate per $1 USD | 0.72 | 0.72 | 0.72 | 0.72 |
Canada, Dollars | ||||
Derivative [Line Items] | ||||
Foreign Currency Amount | $ 25.8 | |||
US Dollar Amount | $ 20.4 | |||
Weighted average exchange rate per $1 USD | 1.27 | 1.27 | 1.27 | 1.27 |
Australia, Dollars | ||||
Derivative [Line Items] | ||||
Foreign Currency Amount | $ 5.1 | |||
US Dollar Amount | $ 3.9 | |||
Weighted average exchange rate per $1 USD | 1.29 | 1.29 | 1.29 | 1.29 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Forward Interest Rate Swap Agreements) (Details) - Interest rate swap agreements - USD ($) $ in Millions | Sep. 30, 2018 | Jul. 31, 2018 | Jun. 25, 2018 | May 23, 2018 | Mar. 31, 2018 |
Derivative [Line Items] | |||||
Notional amount | $ 1,500 | $ 300 | $ 200 | $ 1,000 | $ 0 |
Fixed Rate Paid | 2.885% | 2.723% | 2.915% |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities (Forward Contracts Effect on Statement of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Direct operating cost | $ 463.2 | $ 521.6 | $ 993.2 | $ 1,076.4 | |
Interest Expense, Before Interest On Dissenters' Liability | [1] | 38.8 | 34.8 | 74.2 | 73.8 |
Direct operating | Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net unrealized fair value gain (loss) on foreign exchange contracts that did not qualify as effective hedge contracts | 0 | 0.2 | (0.7) | 0.2 | |
Forward exchange contracts | Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net unrealized fair value gain (loss) on foreign exchange contracts, effective portion | 0.4 | (0.8) | 0.4 | (0.1) | |
Foreign currency cash flow hedge gain (loss) reclassified to earnings | 0.1 | 0 | 0.2 | 0 | |
Interest rate swap agreements | Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net unrealized fair value gain (loss) on foreign exchange contracts, effective portion | 12.2 | 0 | 5.4 | 0 | |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ (2.9) | $ 0 | $ (3.9) | $ 0 | |
[1] | Represents interest expense before interest on dissenting shareholders' liability. |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities (Forward Contracts by Balance Sheet Location) (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 31, 2018 | [1] |
Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | $ 0.8 | $ 0.3 | |
Other Non-Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | 5.4 | ||
Accounts Payable and Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 0.5 | 0.6 | |
Other Non-Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 0 | ||
Forward exchange contracts | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | 0.8 | 0.3 | |
Forward exchange contracts | Other Non-Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | 0 | ||
Forward exchange contracts | Accounts Payable and Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 0.5 | $ 0.6 | |
Forward exchange contracts | Other Non-Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 0 | ||
Interest rate swap agreements | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | 0 | ||
Interest rate swap agreements | Other Non-Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset | 5.4 | ||
Interest rate swap agreements | Accounts Payable and Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 0 | ||
Interest rate swap agreements | Other Non-Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | $ 0 | ||
[1] | Includes an immaterial amount of forward foreign exchange contracts not designated as hedging instruments as of March 31, 2018. |
Additional Financial Informat_3
Additional Financial Information (Other Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Apr. 01, 2018 | [1] | Mar. 31, 2018 | |
Other current assets | |||||
Prepaid expenses and other | $ 64 | $ 34.1 | |||
Product inventory | 20.8 | 20.3 | |||
Tax credits receivable | 106.2 | 141.4 | |||
Other current assets | 191 | 195.8 | |||
Other non-current assets | |||||
Prepaid expenses and other | 52.1 | 23.8 | |||
Accounts receivable | 266.4 | [1] | $ 257.7 | 325.2 | |
Tax credits receivable | 121.1 | 109.6 | |||
Other non-current assets | $ 439.6 | $ 458.6 | |||
[1] | Included in accounts receivable within non-current other assets in the unaudited condensed consolidated balance sheets. |
Additional Financial Informat_4
Additional Financial Information (Non-cash Investing and Financing Activities) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Additional Financial Information [Abstract] | ||
Issuance of common shares related to business acquisitions | $ 83.7 | $ 0 |
Accrued dividends | $ 19.4 | $ 0 |
Additional Financial Informat_5
Additional Financial Information (Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Mar. 31, 2018 |
Additional Financial Information [Abstract] | ||
Restricted cash | $ 0 | $ 0 |
Uncategorized Items - lgfa-2018
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 18,700,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,600,000) |