Segment Information

The Company’s reportable segments are determined based on the distinct nature of their operations and each segment is a strategic business unit that offers different products and services and is managed separately. The Company has two reportable business segments as of March 31, 2016: Motion Pictures and Television Production.

Motion Pictures 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 consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series and non-fiction programming.

Segment information by business unit is as follows:



	Year Ended March 31,
	2016		2015		2014
	(Amounts in thousands)
Segment revenues
Motion Pictures	$	1,677,482	$	1,820,149	$	2,182,902
Television Production	669,937		579,491		447,352
	$	2,347,419	$	2,399,640	$	2,630,254
Gross segment contribution
Motion Pictures	$	184,308	$	449,760	$	491,779
Television Production	103,998		55,123		29,633
	$	288,306	$	504,883	$	521,412
Segment general and administration
Motion Pictures	$	80,952	$	73,501	$	66,768
Television Production	19,783		13,346		12,747
	$	100,735	$	86,847	$	79,515
Segment profit
Motion Pictures	$	103,356	$	376,259	$	425,011
Television Production	84,215		41,777		16,886
	$	187,571	$	418,036	$	441,897

Gross segment contribution is defined as segment revenue less segment direct operating and distribution and marketing expenses, and excludes purchase accounting and related adjustments, start-up costs of new business initiatives, non-cash imputed interest charge, and backstopped prints and advertising ("P&A") expense. Gross segment contribution amounts for fiscal 2015 reflect the reclassification of $12.5 million of backstopped prints and advertising expense from Motion Pictures distribution and marketing expenses in order to be consistent with the current fiscal year presentation (2014 - none).

Segment profit is defined as gross segment contribution less segment general and administration expenses. The reconciliation of total segment profit to the Company's income (loss) before income taxes is as follows:



	Year Ended March 31,
	2016			2015			2014
	(Amounts in thousands)
Company’s total segment profit	$	187,571		$	418,036		$	441,897
Share-based compensation expense	(78,465		)	(80,310		)	(72,119		)
Restructuring and other items⁽¹⁾	(19,834		)	(10,725		)	(7,500		)
Non-cash imputed interest charge⁽²⁾	(5,270		)	—			—
Purchase accounting and related adjustments⁽³⁾	(8,430		)	—			—
Start-up losses of new business initiatives⁽⁴⁾	(10,017		)	—			—
Backstopped prints and advertising expense⁽⁵⁾	(997		)	(12,509		)	—
General and administrative expenses for corporate and shared services	(76,504		)	(85,625		)	(95,791		)
Depreciation and amortization	(13,084		)	(6,586		)	(6,539		)
Operating income (loss)	(25,030		)	222,281			259,948
Interest expense	(54,879		)	(52,476		)	(66,170		)
Interest and other income	1,851			2,790			6,030
Loss on extinguishment of debt	—			(11,664		)	(39,572		)
Equity interests income	44,231			52,477			24,724
Income (loss) before income taxes	$	(33,827	)	$	213,408		$	184,960

____________________________


(1)	Restructuring and other items includes restructuring and severance charges, certain transaction related costs, the settlement of an administrative order, and certain unusual items when applicable.

Amounts in the year ended March 31, 2016 represent professional fees associated with certain strategic transactions including, among others, the acquisition of Pilgrim Studios and certain shareholder transactions, and certain transactional costs of $7.7 million of Pilgrim Studios attributable to the noncontrolling interest shareholder (see Note 11). Pursuant to the profit sharing provisions in the Pilgrim Studios operating agreement, the transactional costs of $7.7 million are included in net loss attributable to noncontrolling interest in the consolidated statement of income and thus does not impact earnings per share attributable to Lions Gate Entertainment Corp. shareholders. In addition, amounts in the year ended March 31, 2016 include pension withdrawal costs of $2.7 million related to an underfunded multi-employer pension plan in which the Company is no longer participating.

Amounts in the year ended March 31, 2015 primarily represent costs related to the move of our international sales and distribution organization to the United Kingdom, and severance costs associated with the integration of the marketing operations of our Lionsgate and Summit film labels, of which approximately $1.2 million are non-cash charges resulting from the acceleration of vesting of stock awards (see Note 13). In addition, the year ended March 31, 2015 includes transaction costs related to a certain shareholder transaction (see Note 22), and costs related to the Starz Exchange transaction (see Note 5).

Amounts in the year ended March 31, 2014 represent the settlement of an administrative order.


(2)	Non-cash imputed interest charge represents a charge associated with the interest cost of long-term accounts receivable for Television Production licensed product that become due beyond one-year.

(3)

Purchase accounting and related adjustments represent the incremental amortization expense associated with the non-cash fair value adjustments on television assets of $6.5 million included in direct operating expense resulting from the application of purchase accounting and the charge of $1.9 million included in general and administrative expense related to the accretion of the noncontrolling interest discount (see Note 12).


(4)	Start-up losses of new business initiatives represent losses associated with the Company's direct to consumer initiatives including its subscription video-on-demand platforms, of which $4.8 million is included in the Company's consolidated general and administrative expense.

(5)

Backstopped P&A represents the amount of theatrical marketing expense for third party titles that the Company funded and expensed for which a third party provides a first dollar loss guarantee (subject to a cap) that such expense will be recouped from the performance of the film (which results in minimal risk of loss to the Company). The amount represents the P&A expense incurred net of the impact of expensing the P&A cost over the revenue streams similar to a participation expense (i.e., the P&A under these arrangements are being expensed similar to a participation cost for purposes of measuring segment profit).

The following table sets forth revenues by media as broken down by segment for the years ended March 31, 2016, 2015, and 2014:



	Year Ended March 31,
	2016		2015		2014
	(Amounts in thousands)
Segment revenues:
Motion Pictures
Theatrical	$	314,082	$	354,050	$	524,669
Home Entertainment	579,802		662,685		829,580
Television	205,148		270,214		225,338
International	548,200		494,981		543,435
Other	30,250		38,219		59,880
Total Motion Pictures revenues	$	1,677,482	$	1,820,149	$	2,182,902
Television Production
Domestic Television	415,486		415,204		326,061
International	190,208		112,385		82,295
Home Entertainment	60,231		44,796		34,296
Other	4,012		7,106		4,700
Total Television Production revenues	$	669,937	$	579,491	$	447,352
Total revenues	$	2,347,419	$	2,399,640	$	2,630,254

The following table sets forth significant assets as broken down by segment and other unallocated assets as of March 31, 2016 and March 31, 2015:



	March 31, 2016						March 31, 2015
	Motion Pictures		Television Production		Total		Motion Pictures		Television Production		Total
	(Amounts in thousands)
Significant assets by segment
Accounts receivable	$	557,532	$	491,757	$	1,049,289	$	538,515	$	353,365	$	891,880
Investment in films and television programs, net	1,092,365		385,931		1,478,296		1,116,909		264,920		1,381,829
Goodwill	294,367		240,413		534,780		294,367		28,961		323,328
	$	1,944,264	$	1,118,101	$	3,062,365	$	1,949,791	$	647,246	$	2,597,037
Other unallocated assets (primarily cash, other assets, and investments)					793,143						695,052
Total assets					$	3,855,508					$	3,292,089

The following table sets forth acquisition of investment in films and television programs as broken down by segment for the years ended March 31, 2016, 2015, and 2014:



	Year Ended March 31,
	2016		2015		2014
	(Amounts in thousands)
Acquisition of investment in films and television programs
Motion Pictures	$	639,875	$	688,555	$	597,083
Television Production	426,528		323,739		350,999
	$	1,066,403	$	1,012,294	$	948,082

Purchases of property and equipment amounted to $18.4 million, $17.0 million and $8.8 million for the years ended March 31, 2016, 2015, and 2014, respectively, all primarily pertaining to purchases for the Company’s corporate headquarters.

Revenue by geographic location, based on the location of the customers, with no other foreign country individually comprising greater than 10% of total revenue, is as follows:



	Year Ended March 31,
	2016		2015		2014
	(Amounts in thousands)
Canada	$	55,080	$	68,969	$	68,599
United States	1,550,207		1,712,087		1,917,615
Other foreign	742,132		618,584		644,040
	$	2,347,419	$	2,399,640	$	2,630,254

Tangible assets by geographic location are as follows:



	March 31, 2016		March 31, 2015
	(Amounts in thousands)
Canada	$	172,574	$	214,303
United States	2,863,075		2,550,713
Other foreign	139,308		152,444
	$	3,174,957	$	2,917,460

Total amount of revenue from one individual customer representing greater than 10% of consolidated revenues for the year ended March 31, 2016 was $290.4 million. No individual customer represented greater than 10% of consolidated revenues for the years ended March 31, 2015 and 2014. Accounts receivable due from one customer was approximately 25% of consolidated gross accounts receivable at March 31, 2016, representing a total amount of gross accounts receivable due from this customer of approximately $272.5 million. At March 31, 2015, accounts receivable due from this customer was approximately 15% of consolidated gross accounts receivable, representing a total amount of gross accounts receivable due from this customer of approximately $144.4 million.