Consolidating Financial Information - Senior Secured Second - Priority Notes (Tables) (Senior Secured Notes, Second-Priority)

9 Months Ended

Dec. 31, 2011

Senior Secured Notes, Second-Priority

Consolidated Financial Information - Balance Sheet

	As of
	March 31, 2011
	Lions Gate Entertainment Corp.		Lions Gate Entertainment Inc.
						Other Subsidiaries						Consolidating Adjustments			Lions Gate Consolidated
						Guarantors			Non-guarantors
	(Amounts in thousands)
BALANCE SHEET
Assets
Cash and cash equivalents	$	795	$	6,451		$	696		$	78,477		$	—		$	86,419
Restricted cash	13,992		29,466			—			—			—			43,458
Accounts receivable, net	494		4,237			292,860			33,033			—			330,624
Investment in films and television programs, net	12		6,391			513,505			89,137			(1,288		)	607,757
Property and equipment, net	—		8,292			189			608			—			9,089
Equity method investments	1,123		17,052			17,405			117,514			(2,509		)	150,585
Goodwill	10,173		—			198,883			30,198			—			239,254
Other assets	458		34,214			10,658			992			—			46,322
Assets held for sale	—		—			—			44,336			—			44,336
Subsidiary investments and advances	102,680		(171,895		)	(28,053		)	(199,205		)	296,473			—
	$	129,727	$	(65,792	)	$	1,006,143		$	195,090		$	292,676		$	1,557,844
Liabilities and Shareholders’ Equity (Deficiency)
Senior revolving credit facility	$	—	$	69,750		$	—		$	—		$	—		$	69,750
Senior secured second-priority notes	—		226,331			—			—			—			226,331
Accounts payable and accrued liabilities	1,910		52,035			141,715			35,288			41			230,989
Participations and residuals	195		11,093			264,320			21,973			(99		)	297,482
Film obligations and production loans	76		—			308,744			17,620			—			326,440
Convertible senior subordinated notes and other financing obligations	—		107,255			3,718			—			—			110,973
Deferred revenue	—		134			123,696			27,107			—			150,937
Liabilities held for sale	—		—			—			17,396			—			17,396
Shareholders’ equity (deficiency)	127,546		(532,390		)	163,950			75,706			292,734			127,546
	$	129,727	$	(65,792	)	$	1,006,143		$	195,090		$	292,676		$	1,557,844

	As of
	December 31, 2011
	Lions Gate Entertainment Corp.		Lions Gate Entertainment Inc.
						Other Subsidiaries						Consolidating Adjustments			Lions Gate Consolidated
						Guarantors			Non-guarantors
	(Amounts in thousands)
BALANCE SHEET
Assets
Cash and cash equivalents	$	388	$	39,666		$	2,810		$	9,987		$	—		$	52,851
Restricted cash	—		26,496			—			—			—			26,496
Accounts receivable, net	1,090		13,127			375,214			33,686			—			423,117
Investment in films and television programs, net	2		6,391			717,346			81,537			(2,404		)	802,872
Property and equipment, net	—		7,725			126			508			—			8,359
Equity method investments	179		14,330			35,782			112,256			(2,628		)	159,919
Goodwill	10,173		—			192,830			30,198			—			233,201
Other assets	195		46,382			7,529			1,313			—			55,419
Subsidiary investments and advances	26,533		(30,190		)	(72,356		)	(142,260		)	218,273			—
	$	38,560	$	123,927		$	1,259,281		$	127,225		$	213,241		$	1,762,234
Liabilities and Shareholders’ Equity (Deficiency)
Senior revolving credit facility	$	—	$	94,500		$	—		$	—		$	—		$	94,500
Senior secured second-priority notes	—		431,334			—			—			—			431,334
Accounts payable and accrued liabilities	383		48,383			110,711			24,485			38			184,000
Participations and residuals	186		3,411			252,872			23,954			(109		)	280,314
Film obligations and production loans	72		—			444,083			19,226			—			463,381
Convertible senior subordinated notes and other financing obligations	—		67,622			3,718			—			—			71,340
Deferred revenue	—		17,831			177,954			4,461			(800		)	199,446
Shareholders’ equity (deficiency)	37,919		(539,154		)	269,943			55,099			214,112			37,919
	$	38,560	$	123,927		$	1,259,281		$	127,225		$	213,241		$	1,762,234

Consolidated Financial Information - Statement of Operations

	Nine Months Ended
	December 31, 2010
	Lions Gate Entertainment Corp.			Lions Gate Entertainment Inc.
							Other Subsidiaries						Consolidating Adjustments			Lions Gate Consolidated
							Guarantors			Non-guarantors
							(Amounts in thousands)
STATEMENT OF OPERATIONS
Revenues	$	—		$	17,428		$	1,087,408		$	148,821		$	(47,852	)	$	1,205,805
EXPENSES:
Direct operating	—			1,109			577,800			66,703			(45,132		)	600,480
Distribution and marketing	—			737			398,683			62,090			(30		)	461,480
General and administration	19,389			70,567			33,589			10,922			(132		)	134,335
Depreciation and amortization	—			2,764			1,107			614			—			4,485
Total expenses	19,389			75,177			1,011,179			140,329			(45,294		)	1,200,780
OPERATING INCOME (LOSS)	(19,389		)	(57,749		)	76,229			8,492			(2,558		)	5,025
Other expenses (income):
Interest expense	—			39,162			2,504			627			(558		)	41,735
Interest and other income	(129		)	(1,030		)	(363		)	(118		)	558			(1,082		)
Loss on extinguishment of debt	—			14,505			—			—			—			14,505
Total other expenses (income)	(129		)	52,637			2,141			509			—			55,158
INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES	(19,260		)	(110,386		)	74,088			7,983			(2,558		)	(50,133		)
Equity interests income (loss)	(80,484		)	4,601			(44,439		)	(265		)	75,021			(45,566		)
INCOME (LOSS) BEFORE INCOME TAXES	(99,744		)	(105,785		)	29,649			7,718			72,463			(95,699		)
Income tax provision (benefit)	—			2,027			1,370			648			—			4,045
NET INCOME (LOSS)	$	(99,744	)	$	(107,812	)	$	28,279		$	7,070		$	72,463		$	(99,744	)

	Nine Months Ended
	December 31, 2011
	Lions Gate Entertainment Corp.			Lions Gate Entertainment Inc.
							Other Subsidiaries						Consolidating Adjustments			Lions Gate Consolidated
							Guarantors			Non-guarantors
	(Amounts in thousands)
STATEMENT OF OPERATIONS
Revenues	$	—		$	23,815		$	850,186		$	100,650		$	(32,285	)	$	942,366
EXPENSES:
Direct operating	449			(153		)	502,775			60,623			(16,035		)	547,659
Distribution and marketing	(1		)	(11		)	235,383			43,919			(96		)	279,194
General and administration	5,853			44,318			34,900			8,264			(184		)	93,151
Gain on sale of asset disposal group	(10,967		)	—			—			—			—			(10,967		)
Depreciation and amortization	—			2,205			140			258			—			2,603
Total expenses	(4,666		)	46,359			773,198			113,064			(16,315		)	911,640
OPERATING INCOME (LOSS)	4,666			(22,544		)	76,988			(12,414		)	(15,970		)	30,726
Other expenses (income):
Interest expense	—			46,927			4,074			921			(783		)	51,139
Interest and other income	(74		)	(2,214		)	(218		)	(137		)	783			(1,860		)
Loss on extinguishment of debt	—			967			—			—			—			967
Total other expenses (income)	(74		)	45,680			3,856			784			—			50,246
INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES	4,740			(68,224		)	73,132			(13,198		)	(15,970		)	(19,520		)
Equity interests income (loss)	(18,869		)	48,922			18,377			(5,259		)	(34,846		)	8,325
INCOME (LOSS) BEFORE INCOME TAXES	(14,129		)	(19,302		)	91,509			(18,457		)	(50,816		)	(11,195		)
Income tax provision (benefit)	(77		)	1,526			1,119			289			—			2,857
NET INCOME (LOSS)	$	(14,052	)	$	(20,828	)	$	90,390		$	(18,746	)	$	(50,816	)	$	(14,052	)

Consolidated Financial Information - Statement of Cash Flows

	Nine Months Ended
	December 31, 2011
	Lions Gate Entertainment Corp.			Lions Gate Entertainment Inc.
							Other Subsidiaries						Consolidating Adjustments		Lions Gate Consolidated
							Guarantors			Non-guarantors
	(Amounts in thousands)
STATEMENT OF CASH FLOWS
NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	71,098		$	(134,559	)	$	(84,234	)	$	(64,157	)	$	—	$	(211,852	)
INVESTING ACTIVITIES:
Proceeds from the sale of asset disposal group, net of transaction costs and cash disposed of $3,943 (see Note 12)	9,119			—			—			—			—		9,119
Investment in equity method investees	(1,030		)	—			—			—			—		(1,030		)
Increase in loan receivables	—			(1,500		)	—			—			—		(1,500		)
Purchases of property and equipment	—			(1,520		)	—			(29		)	—		(1,549		)
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES	8,089			(3,020		)	—			(29		)	—		5,040
FINANCING ACTIVITIES:
Exercise of stock options	151			—			—						—		151
Tax withholding requirements on equity awards	(2,630		)	—			—			—			—		(2,630		)
Repurchase of common shares	(77,088		)												(77,088		)
Borrowings under senior revolving credit facility	—			263,650			—			—			—		263,650
Repayments of borrowings under senior revolving credit facility	—			(238,900		)	—			—			—		(238,900		)
Borrowings under individual production loans	—			—			193,786			4,362			—		198,148
Repayment of individual production loans	—			—			(127,634		)	(6,364		)	—		(133,998		)
Production loan borrowings under film credit facility	—			—			43,714			—			—		43,714
Production loan repayments under film credit facility	—			—			(23,518		)	—			—		(23,518		)
Change in restricted cash collateral associated with financing activities	—			—			—			—			—		—
Proceeds from sale of senior secured second-priority notes, net of deferred financing costs	—			201,955			—			—			—		201,955
Repurchase of senior secured second-priority notes	—			(9,852		)	—			—			—		(9,852		)
Repurchase of convertible senior subordinated notes	—			(46,059		)	—			—			—		(46,059		)
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES	(79,567		)	170,794			86,348			(2,002		)	—		175,573
NET CHANGE IN CASH AND CASH EQUIVALENTS	(380		)	33,215			2,114			(66,188		)	—		(31,239		)
FOREIGN EXCHANGE EFFECTS ON CASH	(27		)	—			—			(2,302		)	—		(2,329		)
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD	795			6,451			696			78,477			—		86,419
CASH AND CASH EQUIVALENTS — END OF PERIOD	$	388		$	39,666		$	2,810		$	9,987		$	—	$	52,851

	Nine Months Ended
	December 31, 2010
	Lions Gate Entertainment Corp.			Lions Gate Entertainment Inc.
							Other Subsidiaries						Consolidating Adjustments		Lions Gate Consolidated
							Guarantors			Non-guarantors
							(Amounts in thousands)
STATEMENT OF CASH FLOWS
NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	15,365		$	(208,795	)	$	73,459		$	4,335		$	—	$	(115,636	)
INVESTING ACTIVITIES:
Purchases of restricted investments	—			(13,993		)	—			—			—		(13,993		)
Proceeds from the sale of restricted investments	—			20,989			—			—			—		20,989
Buy-out of the earn-out associated with the acquisition of Debmar-Mercury, LLC	—			—			(15,000		)	—			—		(15,000		)
Investment in equity method investees	(2,000		)	—			(22,677		)	—			—		(24,677		)
Repayment of loans receivable	—			—			8,113			—			—		8,113
Purchases of property and equipment	—			(598		)	(426		)	(163		)	—		(1,187		)
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES	(2,000		)	6,398			(29,990		)	(163		)	—		(25,755		)
FINANCING ACTIVITIES:
Tax withholding requirements on equity awards	(12,919		)	—			—			—			—		(12,919		)
Borrowings under senior revolving credit facility	—			481,750			—			—			—		481,750
Repayments of borrowings under senior revolving credit facility	—			(274,500		)	—			—			—		(274,500		)
Borrowings under individual production loans	—			—			99,625			578			—		100,203
Repayment of individual production loans	—			—			(139,543		)	(3,754		)	—		(143,297		)
Production loan borrowings under film credit facility	—			—			17,721			—			—		17,721
Production loan repayments under film credit facility	—			—			(31,507		)	—			—		(31,507		)
Change in restricted cash collateral associated with financing activities	—			—			3,087			—			—		3,087
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES	(12,919		)	207,250			(50,617		)	(3,176		)	—		140,538
NET CHANGE IN CASH AND CASH EQUIVALENTS	446			4,853			(7,148		)	996			—		(853		)
FOREIGN EXCHANGE EFFECTS ON CASH	33			—			—			1,156			—		1,189
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD	814			3,059			8,152			57,217			—		69,242
CASH AND CASH EQUIVALENTS — END OF PERIOD	$	1,293		$	7,912		$	1,004		$	59,369		$	—	$	69,578