Acquisitions and Divestitures (Tables)

12 Months Ended

Mar. 31, 2014

The allocation of the purchase price is as follows:



Purchase price consideration:	(Amounts in thousands)
Cash	$	361,914
Fair value of 5,837,781 of Lionsgate's shares issued	50,205
Purchase price	412,119

Fair value of contingent consideration (1)	5,900
Required repayment of Summit Entertainment's existing Term Loan	507,775
Total estimated purchase consideration including debt repayment	$	925,794

Allocation of the total purchase consideration (2):
Cash and cash equivalents	$	315,932
Restricted cash	5,126
Accounts receivable, net	161,203
Investment in films and television programs, net	627,679
Other assets acquired	7,972
Finite-lived intangible assets:
Sales agency relationships	6,200
Tradenames	6,600
Other liabilities assumed	(295,045		)
Fair value of net assets acquired	835,667
Goodwill	90,127
	$	925,794

____________________________

(1)

During the year ended March 31, 2013, as a result of the box office performance of certain films, it was estimated that the threshold criteria triggering the additional contingent consideration would not be met, and therefore, the fair value of the contingent consideration was adjusted to zero. Accordingly, the liability of $5.9 million was reversed as a benefit to direct operating expense on the consolidated statement of operations.


(2)	Measurement period adjustments during the year ended March 31, 2013 included a decrease to investment in films and television programs, net of $7.2 million and a decrease to other liabilities assumed of $10.5 million, resulting in a net increase of $3.3 million of the fair value of net assets acquired and a decrease of $3.3 million to goodwill.

Acquisition of Summit, Pro Forma Information

The pro forma amounts below include the historical statement of operations of Summit Entertainment for the year ended December 31, 2011 combined with the Company's statement of operations for the year ended March 31, 2012. Additionally, the pro forma results include pro forma adjustments for the year ended March 31, 2012 of: (1) additional amortization of film costs of $63.2 million related to the increase to fair value of the films acquired, (2) additional amortization of intangibles of $2.6 million related to the fair value of intangible assets acquired, (3) additional interest expense of $3.6 million related to the issuance of the $45.0 million January 2012 4.00% Notes and (4) a net interest expense savings of $3.8 million due to the net impact of the extinguishment of Summit Entertainment's existing loans and the borrowings under the new Summit Term Loan.



	Year Ended
	March 31, 2012
	(Amounts in thousands, except per share amounts)
Revenues	$	2,011,377
Operating loss	$	(252	)
Net loss	$	(99,441	)
Basic Net Loss Per Common Share	$	(0.72	)
Diluted Net Loss Per Common Share	$	(0.72	)
Weighted average number of common shares outstanding - Basic	138,064
Weighted average number of common shares outstanding - Diluted	138,064

The unaudited pro forma condensed consolidated statement of operations does not include any adjustments for any restructuring activities, operating efficiencies or cost savings.

Schedule of Gain on Sale of Asset Disposal Group

The Company recognized a gain, net of transaction costs, on the sale of Maple Pictures of $11.0 million during the fiscal year ended March 31, 2012, as set forth in the table below:



	Gain on Sale of
	Maple Pictures
	August 10, 2011
	(Amounts in thousands)
Total sales price for Maple Pictures				$	35,300
Less: Sales proceeds allocated to the fair value of the distribution rights				(17,800		)
Sales proceeds allocated to Maple Pictures, exclusive of the distribution rights				17,500
Less:
Cash	$	(3,943	)
Accounts receivable, net	(16,789		)
Investment in films and television programs, net	(13,536		)
Allocated goodwill	(6,053		)
Other assets	(1,564		)
Participations payable to Lionsgate (1)	23,683
Other liabilities	13,651
Total carrying value of Maple Pictures	$	(4,551	)	(4,551		)

Currency translation adjustment				1,298

Transaction and related costs				(3,280		)
Gain on sale of Maple Pictures				$	10,967

____________________________

(1)

Represents participation liabilities payable to the Company, which were assumed by Alliance Films and previously eliminated in the consolidated financial statements. The participations payable to Lionsgate represents amounts that Maple owed Lionsgate as of the date of sale from the distribution of Lionsgate's product in Canada pursuant to the distribution agreements. Subsequent to the sale, the amounts due from Alliance Films are reflected in accounts receivable on the Company's consolidated balance sheets, which will be paid pursuant to the terms of the distribution arrangements.