Equity Method Investments (Tables)

3 Months Ended

Jun. 30, 2012

Schedule of Equity Method Investments [Line Items]

Carrying Amount Of Significant Equity Method Investments

The carrying amount of significant equity method investments at June 30, 2012 and March 31, 2012 were as follows:

	June 30, 2012
Equity Method Investee	Ownership Percentage	June 30, 2012		March 31, 2012
		(Amounts in thousands)
Horror Entertainment, LLC (“FEARnet”)	34.5%	$	2,933	$	2,880
NextPoint, Inc. (“Break Media”)	42.0%	6,822		8,477
Roadside Attractions, LLC (“Roadside”)	43.0%	3,002		3,118
Studio 3 Partners, LLC (“EPIX”)	31.2%	56,969		50,381
TV Guide Network	51.0%	101,393		106,406
		$	171,119	$	171,262

Equity Method Investee, Income (Loss)

Equity interests in equity method investments for the three months ended June 30, 2012, and 2011 were as follows (income (loss)):

	Three Months Ended			Three Months Ended
Equity Method Investee	June 30, 2012			June 30, 2011
				As adjusted
	(Amounts in thousands)
Horror Entertainment, LLC (“FEARnet”)	$	52		$	56
NextPoint, Inc. (“Break Media”)	(1,655		)	(1,316		)
Roadside Attractions, LLC (“Roadside”)	(116		)	(39		)
Studio 3 Partners, LLC (“EPIX”)	6,587			2,882
TV Guide Network	(5,013		)	(936		)
Tiger Gate Entertainment Limited (“Tiger Gate”)	—			(687		)
	$	(145	)	$	(40	)

Studio 3 Partners, LLC (EPIX) [Member]

Schedule of Equity Method Investments [Line Items]

Summarized Balance Sheet

The following table presents summarized balance sheet data as of June 30, 2012 and March 31, 2012 for EPIX:

	June 30, 2012		March 31, 2012
	(Amounts in thousands)
Current assets	$	219,392	$	196,903
Non-current assets	$	146,055	$	140,532
Current liabilities	$	148,181	$	140,684
Non-current liabilities	$	3,949	$	4,723

Summarized Statement Of Operations

The following table presents the summarized statement of operations for the three months ended June 30, 2012 and 2011 for EPIX and a reconciliation of the net income reported by EPIX to equity interest income recorded by the Company:

	Three Months Ended			Three Months Ended
	June 30, 2012			June 30, 2011
	(Amounts in thousands)
Revenues	$	87,764		$	79,404
Expenses:
Operating expenses	60,734			56,169
Selling, general and administrative expenses	5,742			5,921
Operating income	21,288			17,314
Interest income	—			2
Net income	$	21,288		$	17,316
Reconciliation of net income reported by EPIX to equity interest income:
Net income reported by EPIX	$	21,288		$	17,316
Ownership interest in EPIX	31.15		%	31.15		%
The Company's share of net income	6,631			5,394
Eliminations of the Company’s share of profits on sales to EPIX (1)	(2,175		)	(6,560		)
Realization of the Company’s share of profits on sales to EPIX (2)	2,131			4,048
Total equity interest income recorded	$	6,587		$	2,882

__________________

(1) Represents the elimination of the gross profit recognized by Lionsgate on sales to EPIX in proportion to Lionsgate's ownership interest in EPIX. The amount of intra-entity profit is calculated as the total gross profit recognized on a title by title basis multiplied by Lionsgate's percentage ownership of EPIX. The table above in the Transactions with EPIX section shows the calculation of the profit eliminated.

(2) Represents the realization of a portion of the profits previously eliminated. This profit remains eliminated until realized by EPIX. EPIX initially records the license fee for the title as inventory on its balance sheet and amortizes the inventory over the license period. Accordingly, the profit is realized as the inventory on EPIX's books is amortized. The profit amount realized is calculated by multiplying the percentage of the EPIX inventory amortized in the period reported by EPIX, by the amount of profit initially eliminated, on a title by title basis.

Intercompany Revenues and Gross Profit Loss and Calculation of Profit Loss Eliminated

The table below sets forth the revenues and gross profits recognized by Lionsgate and the calculation of the amounts eliminated in the equity interest line item on the statement of operations:

	Three Months Ended			Three Months Ended
	June 30, 2012			June 30, 2011
	(Amounts in thousands)
Revenue recognized on sales to EPIX	$	16,516		$	35,154
Gross profit on sales to EPIX	$	6,982		$	21,059
Ownership interest in EPIX	31.15		%	31.15		%
Elimination of the Company's share of profits on sales to EPIX	$	2,175		$	6,560

TV Guide Network [Member]

Schedule of Equity Method Investments [Line Items]

Summarized Balance Sheet

The following table presents summarized balance sheet data as of June 30, 2012 and March 31, 2012 for TV Guide Network:

	June 30, 2012		March 31, 2012
	(Amounts in thousands)
Current assets	$	34,222	$	41,548
Non-current assets	$	233,234	$	236,855
Current liabilities	$	29,658	$	30,979
Non-current liabilities	$	33,656	$	33,407
Redeemable preferred stock	$	238,496	$	230,412

Summarized Statement Of Operations

The following table presents the summarized statement of operations for the three months ended June 30, 2012 and 2011 for TV Guide Network and a reconciliation of the net loss reported by TV Guide Network to equity interest loss recorded by the Company:

	Three Months Ended			Three Months Ended
	June 30, 2012			June 30, 2011
	(Amounts in thousands)
Revenues	$	22,064		$	28,260
Expenses:
Cost of services	14,638			10,189
Selling, marketing, and general and administration	14,276			15,793
Depreciation and amortization	2,709			2,947
Operating loss	(9,559		)	(669		)
Interest expense, net	442			460
Accretion of redeemable preferred stock units (1)	8,084			7,042
Total interest expense, net	8,526			7,502
Net loss	$	(18,085	)	$	(8,171	)
Reconciliation of net loss reported by TV Guide Network to equity interest loss:
Net loss reported by TV Guide Network	$	(18,085	)	$	(8,171	)
Ownership interest in TV Guide Network	51		%	51		%
The Company's share of net loss	(9,223		)	(4,167		)
Accretion of dividend and interest income on redeemable preferred stock units (1)	4,123			3,592
Eliminations of the Company’s share of profit on sales to TV Guide Network (2)	(488		)	(484		)
Realization of the Company’s share of profits on sales to TV Guide Network (3)	575			123
Total equity interest loss recorded	$	(5,013	)	$	(936	)

 ___________________

(1) Accretion of mandatorily redeemable preferred stock units represents TV Guide Network’s 10% dividend and the amortization of discount on its mandatorily redeemable preferred stock units held by the Company and the 49% interest holder. The Company records 51% of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest loss.

(2) Represents the elimination of the gross profit recognized by Lionsgate on sales to TV Guide Network in proportion to Lionsgate's ownership interest in TV Guide Network. The amount of intra-entity profit is calculated as the total gross profit recognized on a title by title basis multiplied by Lionsgate's percentage ownership of TV Guide Network. The table above in the Transactions with TV Guide Network section shows the calculation of the profit eliminated.

(3) Represents the realization of a portion of the profits previously eliminated. This profit remains eliminated until realized by TV Guide Network. TV Guide Network initially records the license fee for the title as inventory on its balance sheet and amortizes the inventory over the license period. Accordingly, the profit is realized as the inventory on TV Guide Network's books is amortized. The profit amount realized is calculated by multiplying the percentage of the TV Guide Network inventory amortized in the period reported by TV Guide Network by the amount of profit initially eliminated, on a title by title basis.

Intercompany Revenues and Gross Profit Loss and Calculation of Profit Loss Eliminated

The table below sets forth the revenues and gross profits recognized by Lionsgate and the calculation of the amounts eliminated in the equity interest line item on the statement of operations:

	Three Months Ended			Three Months Ended
	June 30, 2012			June 30, 2011
	(Amounts in thousands)
Revenue recognized on sales to TV Guide Network	$	2,925		$	2,925
Gross profit on sales to TV Guide Network	$	956		$	949
Ownership interest in TV Guide Network	51		%	51		%
Elimination of the Company's share of profit on sales to TV Guide Network	$	488		$	484