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Consolidating Financial Information - Convertible Senior Subordinated Notes (Convertible Senior Subordinated Notes [Member])
9 Months Ended
Dec. 31, 2014
Convertible Senior Subordinated Notes [Member]
 
Consolidating Financial Information [Line Items]  
Consolidating Financial Information - Convertible Senior Subordinated Notes
Consolidating Financial Information — Convertible Senior Subordinated Notes

The April 2009 3.625% Notes, the January 2012 4.00% Notes, and the April 2013 1.25% Notes by their terms, are fully and unconditionally guaranteed by the Company. LGEI, the issuer of the April 2009 3.625% Notes, the January 2012 4.00% Notes, and the April 2013 1.25% Notes that are guaranteed by the Company, is 100% owned by the parent company guarantor, Lions Gate Entertainment Corp.

The following tables present condensed consolidating financial information as of December 31, 2014 and March 31, 2014, and for the nine months ended December 31, 2014 and 2013 for (1) the Company, on a stand-alone basis, (2) LGEI, on a stand-alone basis, (3) the non-guarantor subsidiaries of the Company (including the subsidiaries of LGEI), on a combined basis (collectively, the “Non-guarantor Subsidiaries”) and (4) the Company, on a consolidated basis.
 
 
As of
 
December 31, 2014
 
Lions Gate
Entertainment
Corp.
 
Lions Gate
Entertainment
Inc.
 
Non-guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Lions Gate
Consolidated
 
(Amounts in thousands)
BALANCE SHEET
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
839

 
$
15,501

 
$
12,546

 
$

 
$
28,886

Restricted cash

 
7,508

 

 

 
7,508

Accounts receivable, net
741

 
5,581

 
968,257

 

 
974,579

Investment in films and television programs, net

 
6,394

 
1,440,999

 

 
1,447,393

Property and equipment, net

 
20,685

 
1,745

 

 
22,430

Equity method investments

 
5,947

 
205,800

 
(67
)
 
211,680

Goodwill
10,172

 

 
313,156

 

 
323,328

Other assets
3,636

 
65,305

 
8,467

 
(6,036
)
 
71,372

Deferred tax assets
6,766

 
38,974

 
8,589

 

 
54,329

Subsidiary investments and advances
1,273,816

 
1,277,306

 
2,055,224

 
(4,606,346
)
 

 
$
1,295,970

 
$
1,443,201

 
$
5,014,783

 
$
(4,612,449
)
 
$
3,141,505

Liabilities and Shareholders’ Equity (Deficiency)
 
 
 
 
 
 
 
 
 
Senior revolving credit facility
$
160,500

 
$

 
$

 
$

 
$
160,500

5.25% Senior Notes
225,000

 

 

 

 
225,000

Term Loan
223,021

 

 

 

 
223,021

Accounts payable and accrued liabilities
19,453

 
69,295

 
182,353

 

 
271,101

Participations and residuals

 
3,417

 
459,676

 

 
463,093

Film obligations and production loans

 

 
737,565

 

 
737,565

Convertible senior subordinated notes

 
113,271

 

 

 
113,271

Deferred revenue

 
8,813

 
271,145

 

 
279,958

Intercompany payable

 
1,414,020

 
1,991,164

 
(3,405,184
)
 

Shareholders’ equity (deficiency)
667,996

 
(165,615
)
 
1,372,880

 
(1,207,265
)
 
667,996

 
$
1,295,970

 
$
1,443,201

 
$
5,014,783

 
$
(4,612,449
)
 
$
3,141,505



 
Nine Months Ended
 
December 31, 2014
 
Lions Gate
Entertainment
Corp.
 
Lions Gate
Entertainment
Inc.
 
Non-guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Lions Gate
Consolidated
 
 
 
(Amounts in thousands)
 
 
STATEMENT OF INCOME
 
 
 
 
 
 
 
 
 
Revenues
$

 
$
21,565

 
$
1,732,520

 
$
(527
)
 
$
1,753,558

EXPENSES:
 
 
 
 
 
 
 
 
 
Direct operating
2

 
3,243

 
942,595

 

 
945,840

Distribution and marketing

 
1,575

 
420,062

 

 
421,637

General and administration
2,383

 
115,942

 
69,010

 
(360
)
 
186,975

Depreciation and amortization

 
2,721

 
1,964

 

 
4,685

Total expenses
2,385

 
123,481

 
1,433,631

 
(360
)
 
1,559,137

OPERATING INCOME (LOSS)
(2,385
)
 
(101,916
)
 
298,889

 
(167
)
 
194,421

Other expenses (income):
 
 
 
 
 
 
 
 
 
Interest expense
25,919

 
138,139

 
96,941

 
(221,405
)
 
39,594

Interest and other income
(126,019
)
 
(2,766
)
 
(94,457
)
 
221,054

 
(2,188
)
Loss on extinguishment of debt

 
1,276

 

 

 
1,276

Total other expenses (income)
(100,100
)
 
136,649

 
2,484

 
(351
)
 
38,682

INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES
97,715

 
(238,565
)
 
296,405

 
184

 
155,739

Equity interests income (loss)
66,045

 
317,176

 
37,224

 
(383,092
)
 
37,353

INCOME (LOSS) BEFORE INCOME TAXES
163,760

 
78,611

 
333,629

 
(382,908
)
 
193,092

Income tax provision (benefit)
1,533

 
12,566

 
52,982

 
(36,216
)
 
30,865

NET INCOME (LOSS)
162,227

 
66,045

 
280,647

 
(346,692
)
 
162,227

Foreign currency translation adjustments
(3,473
)
 
(4,383
)
 
(1,301
)
 
4,991

 
(4,166
)
Net unrealized gain on foreign exchange contracts, net of tax

 

 
693

 

 
693

COMPREHENSIVE INCOME (LOSS)
$
158,754

 
$
61,662

 
$
280,039

 
$
(341,701
)
 
$
158,754


 
Nine Months Ended
 
December 31, 2014
 
Lions Gate
Entertainment
Corp.
 
Lions Gate
Entertainment
Inc.
 
Non-guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Lions Gate
Consolidated
 
(Amounts in thousands)
STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
$
93,761

 
$
16,210

 
$
(273,012
)
 
$

 
$
(163,041
)
INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Proceeds from the sale of equity method investees

 

 
14,575

 

 
14,575

Investment in equity method investees

 
(2,150
)
 
(12,600
)
 

 
(14,750
)
Other investments

 
(2,000
)
 

 

 
(2,000
)
Purchases of property and equipment

 
(9,309
)
 
(1,984
)
 

 
(11,293
)
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES

 
(13,459
)
 
(9
)
 

 
(13,468
)
FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Senior revolving credit facility - borrowings
681,500

 

 

 

 
681,500

Senior revolving credit facility - repayments
(618,619
)
 

 

 

 
(618,619
)
Convertible senior subordinated notes - repurchases

 
(16
)
 

 

 
(16
)
Production loans - borrowings

 

 
533,781

 

 
533,781

Production loans - repayments

 

 
(261,868
)
 

 
(261,868
)
Repurchase of common shares
(129,859
)
 

 

 

 
(129,859
)
Dividends paid
(23,536
)
 

 

 

 
(23,536
)
Excess tax benefits on equity-based compensation awards

 
6,767

 

 

 
6,767

Exercise of stock options
4,404

 

 

 

 
4,404

Tax withholding required on equity awards
(14,939
)
 

 

 

 
(14,939
)
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES
(101,049
)
 
6,751

 
271,913

 

 
177,615

NET CHANGE IN CASH AND CASH EQUIVALENTS
(7,288
)
 
9,502

 
(1,108
)
 

 
1,106

FOREIGN EXCHANGE EFFECTS ON CASH
(1
)
 

 
2,089

 

 
2,088

CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD
8,128

 
5,999

 
11,565

 

 
25,692

CASH AND CASH EQUIVALENTS — END OF PERIOD
$
839

 
$
15,501

 
$
12,546

 
$

 
$
28,886


 
As of
 
March 31, 2014
 
Lions Gate
Entertainment
Corp.
 
Lions Gate
Entertainment
Inc.
 
Non-guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Lions Gate
Consolidated
 
(Amounts in thousands)
BALANCE SHEET
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
8,128

 
$
5,999

 
$
11,565

 
$

 
$
25,692

Restricted cash

 
8,925

 

 

 
8,925

Accounts receivable, net
688

 
2,514

 
882,369

 

 
885,571

Investment in films and television programs, net
(18
)
 
6,394

 
1,266,703

 
1,494

 
1,274,573

Property and equipment, net

 
14,185

 
367

 

 
14,552

Equity method investments

 
3,668

 
178,273

 

 
181,941

Goodwill
10,172

 

 
313,156

 

 
323,328

Other assets
4,113

 
67,612

 
5,682

 
(6,340
)
 
71,067

Deferred tax assets
8,417

 
48,125

 
9,441

 

 
65,983

Subsidiary investments and advances
1,118,356

 
1,065,274

 
1,532,070

 
(3,715,700
)
 

 
$
1,149,856

 
$
1,222,696

 
$
4,199,626

 
$
(3,720,546
)
 
$
2,851,632

Liabilities and Shareholders’ Equity (Deficiency)
 
 
 
 
 
 
 
 
 
Senior revolving credit facility
$
97,619

 
$

 
$

 
$

 
$
97,619

5.25% Senior Notes
225,000

 

 

 

 
225,000

Term Loan
222,753

 

 

 

 
222,753

Accounts payable and accrued liabilities
19,946

 
73,045

 
239,466

 

 
332,457

Participations and residuals

 
3,417

 
465,973

 

 
469,390

Film obligations and production loans

 

 
499,787

 

 
499,787

Convertible senior subordinated notes

 
131,788

 

 

 
131,788

Deferred revenue

 
11,689

 
276,611

 

 
288,300

Intercompany payable

 
1,232,310

 
1,480,273

 
(2,712,583
)
 

Shareholders’ equity (deficiency)
584,538

 
(229,553
)
 
1,237,516

 
(1,007,963
)
 
584,538

 
$
1,149,856

 
$
1,222,696

 
$
4,199,626

 
$
(3,720,546
)
 
$
2,851,632




 
Nine Months Ended
 
December 31, 2013
 
Lions Gate
Entertainment
Corp.
 
Lions Gate
Entertainment
Inc.
 
Non-guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Lions Gate
Consolidated
 
(Amounts in thousands)
STATEMENT OF INCOME
 
 
 
 
 
 
 
 
 
Revenues
$
6,748

 
$
20,989

 
$
1,889,642

 
$
(8,983
)
 
$
1,908,396

EXPENSES:
 
 
 
 
 
 
 
 
 
Direct operating
(254
)
 
(2,933
)
 
968,943

 

 
965,756

Distribution and marketing
2

 
2,490

 
548,005

 

 
550,497

General and administration
1,344

 
124,084

 
61,093

 
(401
)
 
186,120

Depreciation and amortization

 
1,608

 
3,158

 

 
4,766

Total expenses
1,092

 
125,249

 
1,581,199

 
(401
)
 
1,707,139

OPERATING INCOME (LOSS)
5,656

 
(104,260
)
 
308,443

 
(8,582
)
 
201,257

Other expenses (income):
 
 
 
 
 
 
 
 
 
Interest expense
12,496

 
70,840

 
20,036

 
(50,812
)
 
52,560

Interest and other income
(33,592
)
 
(4,838
)
 
(17,132
)
 
50,812

 
(4,750
)
Loss on extinguishment of debt
2,600

 
34,053

 

 

 
36,653

Total other expenses (income)
(18,496
)
 
100,055

 
2,904

 

 
84,463

INCOME (LOSS) BEFORE EQUITY INTERESTS AND INCOME TAXES
24,152

 
(204,315
)
 
305,539

 
(8,582
)
 
116,794

Equity interests income (loss)
74,296

 
298,123

 
18,328

 
(377,589
)
 
13,158

INCOME (LOSS) BEFORE INCOME TAXES
98,448

 
93,808

 
323,867

 
(386,171
)
 
129,952

Income tax provision (benefit)
(4,437
)
 
19,512

 
67,244

 
(55,252
)
 
27,067

NET INCOME (LOSS)
102,885

 
74,296

 
256,623

 
(330,919
)
 
102,885

Foreign currency translation adjustments
3,334

 
(59
)
 
26,082

 
(25,253
)
 
4,104

Net unrealized loss on foreign exchange contracts, net of tax

 

 
(770
)
 

 
(770
)
COMPREHENSIVE INCOME (LOSS)
$
106,219

 
$
74,237

 
$
281,935

 
$
(356,172
)
 
$
106,219



 
Nine Months Ended
 
December 31, 2013
 
Lions Gate
Entertainment
Corp.
 
Lions Gate
Entertainment
Inc.
 
Non-guarantor
Subsidiaries
 
Consolidating
Adjustments
 
Lions Gate
Consolidated
 
(Amounts in thousands)
STATEMENT OF CASH FLOWS
 
 
 
 
 
 
 
 
 
NET CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
$
(630,884
)
 
$
761,836

 
$
14,882

 
$

 
$
145,834

INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Proceeds from the sale of equity method investees

 

 
9,000

 

 
9,000

Investment in equity method investees

 
(750
)
 
(16,500
)
 

 
(17,250
)
Distributions from equity method investee in excess of earnings

 

 
4,169

 

 
4,169

Repayment of loans receivable

 

 
4,275

 

 
4,275

Purchases of property and equipment

 
(4,276
)
 
(1,840
)
 

 
(6,116
)
NET CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES

 
(5,026
)
 
(896
)
 

 
(5,922
)
FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Senior revolving credit facility - borrowings
319,119

 
463,100

 

 

 
782,219

Senior revolving credit facility - repayments
(125,000
)
 
(801,574
)
 

 

 
(926,574
)
5.25% Senior Notes and Term Loan - borrowings, net of deferred financing costs of $6,860
440,640

 

 

 

 
440,640

10.25% Senior Notes - repurchases and redemptions

 
(470,584
)
 

 

 
(470,584
)
Convertible senior subordinated notes - borrowings

 
60,000

 

 

 
60,000

Production loans - borrowings

 

 
359,582

 

 
359,582

Production loans - repayments

 

 
(301,385
)
 

 
(301,385
)
Pennsylvania Regional Center credit facility - repayments

 

 
(65,000
)
 

 
(65,000
)
Exercise of stock options
10,869

 

 

 

 
10,869

Tax withholding required on equity awards
(14,376
)
 

 

 

 
(14,376
)
NET CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES
631,252

 
(749,058
)
 
(6,803
)
 

 
(124,609
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
368

 
7,752

 
7,183

 

 
15,303

FOREIGN EXCHANGE EFFECTS ON CASH
(210
)
 

 
(2,054
)
 

 
(2,264
)
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD
592

 
36,834

 
24,937

 

 
62,363

CASH AND CASH EQUIVALENTS — END OF PERIOD
$
750

 
$
44,586

 
$
30,066

 
$

 
$
75,402