Additional Financial Information

The following tables present supplemental information related to the unaudited condensed consolidated financial statements.

Cash and Cash Equivalents

Cash equivalents consist of investments that are readily convertible into cash. Cash equivalents are carried at cost, which approximates fair value. The Company classifies its cash equivalents within Level 1 of the fair value hierarchy because the Company uses quoted market prices to measure the fair value of these investments (see Note 9). The Company monitors concentrations of credit risk with respect to cash and cash equivalents by placing such balances with higher quality financial institutions or investing such amounts in liquid, short-term, highly-rated instruments or investment funds holding similar instruments. As of December 31, 2016, the majority of the Company’s cash and cash equivalents were invested in Rule 2a-7 compliant money market mutual funds.

Accounts Receivable, net

Accounts are presented net of reserves for returns and allowances of $78 million (March 31, 2016 - $52 million) and a provision for doubtful accounts of $8 million (March 31, 2016 - $6 million).

Other Assets

The composition of the Company’s other assets is as follows as of December 31, 2016 and March 31, 2016:



	December 31, 2016		March 31, 2016
	(Amounts in millions)
Other current assets
Prepaid expenses and other	$	24	$	26
Product inventory	27		21
Tax credits receivable	208		190
	$	259	$	237
Other non-current assets
Prepaid expenses and other	$	37	$	32
Accounts receivable	262		222
Tax credits receivable	106		67
	$	405	$	321

Supplemental Cash Flow Information

The supplemental schedule of non-cash investing and financing activities for the nine months ended December 31, 2016 and 2015 is presented below:



	Nine Months Ended
	December 31,
	2016		2015
	(Amounts in millions)
Non-cash investing activities:
Issuance of common shares related to Starz Merger (see Note 2)	$	1,284	$	—
Accrued purchase consideration for dissenting shareholders (see Note 2)	$	886	$	—
Issuance of Starz share-based payment replacement awards	$	187	$	—
Issuance of common shares related to Pilgrim Media Group acquisition (see Note 2)	$	—	$	56

Non-cash financing activities:
Accrued dividends (see Note 12)	$	—	$	13
Conversions of convertible senior subordinated notes (see Note 6)	$	—	$	16