Goodwill and Intangible Assets

12 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Changes in the carrying value of goodwill by reporting segment were as follows:



	Motion Pictures			Television Production		Media Networks			Total
	(Amounts in millions)
Balance as of March 31, 2015	$	294.4		$	29.0	$	—		$	323.4
Acquisition of Pilgrim Media Group	—			210.8		—			210.8
Measurement period adjustments for Pilgrim Media Group	—			0.6		—			0.6
Balance as of March 31, 2016	294.4			240.4		—			534.8
Starz Merger	68.4			—		2,131.0			2,199.4
Measurement period adjustments for Starz Merger⁽¹⁾	(0.9		)	—		(32.8		)	(33.7		)
Balance as of March 31, 2017	$	361.9		$	240.4	$	2,098.2		$	2,700.5

______________________

(1)

Measurement period adjustments for the Starz Merger include (i) a decrease to accounts receivable of $2.1 million; (ii) an increase to investment in films and television programs and program rights, net of $9.2 million; (iii) an increase to intangible assets of $50.0 million; (iv) an increase in accounts payable and accrued liabilities of $16.5 million; (v) a decrease to corporate debt of $3.4 million; (vi) an increase to deferred tax liabilities of $17.2 million; and (vii) a decrease to other liabilities assumed of $7.0 million. These adjustments resulted in a net increase of $33.7 million of the fair value of net assets acquired and a decrease of $33.7 million to goodwill.

As a result of the reorganization of the Company's reporting segments (see Note 16) in connection with the Starz Merger (see Note 3), the goodwill resulting from the acquisition was allocated to the Media Networks and Motion Pictures segments based on the estimate of the relative fair value of the businesses included in each segment.

Intangible Assets

Finite-lived intangible assets consisted of the following as of March 31, 2017 and March 31, 2016:



	March 31, 2017						March 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(Amounts in millions)
Finite-lived intangible assets subject to amortization:
Customer relationships	$	1,821.0	$	33.9	$	1,787.1	$	—	$	—	$	—
Trademarks and trade names	8.6		6.9		1.7		8.6		6.4		2.2
Other	9.5		1.6		7.9		9.5		0.3		9.2
	$	1,839.1	$	42.4	$	1,796.7	$	18.1	$	6.7	$	11.4

Indefinite-lived intangible assets not subject to amortization consisted of the following:



	March 31, 2017		March 31, 2016
	(Amounts in millions)
Indefinite-lived intangible assets not subject to amortization:
Tradenames	$	250.0	$	—

The increase in the carrying value of intangible assets from March 31, 2016 was primarily due to intangible assets acquired in the Starz Merger. The intangible assets acquired were (i) customer relationships primarily representing affiliation agreements with distributors, and (ii) tradenames primarily related to the Starz brand name, which have an indefinite useful life and are not amortized, but rather are assessed for impairment at least annually or more frequently whenever events or circumstances indicate that the rights might be impaired. The allocation of the intangible assets acquired is preliminary and subject to revision as a more detailed analysis is completed and additional information on the fair value of assets and liabilities becomes available, including receipt of final appraisals of the net assets acquired. See Note 3 for further information.

Amortization expense associated with the Company's intangible assets for the years ended March 31, 2017, 2016 and 2015 was approximately $35.7 million, $1.3 million, and $1.8 million, respectively. Amortization expense remaining relating to intangible assets for each of the years ending March 31, 2018 through 2022 is estimated to be approximately $109.1 million, $109.1 million, $109.1 million, $109.1 million, and $109.1 million, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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