XML 26 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Fair Value Measurements
 3 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Fair Value
Accounting guidance and standards about fair value define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Fair Value Hierarchy
Fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting guidance and standards establish three levels of inputs that may be used to measure fair value:

•
Level 1 — Quoted prices in active markets for identical assets or liabilities.
•
Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
•
Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.
The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of June 30, 2018 and March 31, 2018:
 
June 30, 2018
 
March 31, 2018
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
(Amounts in millions)
Available-for-sale securities (see Note 4):
 
 
 
 
 
 
 
 
 
 
 
Investment in Next Games
$
6.5

 
$
—

 
$
6.5

 
$
7.3

 
$
—

 
$
7.3

 
 
 
 
 
 
 
 
 
 
 
 
Forward exchange contracts (see Note 17)
—

 
1.1

 
1.1

 
—

 
0.3

 
0.3

Interest rate swaps (see Note 17)
—

 
0.9

 
0.9

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Forward exchange contracts (see Note 17)
—

 
(1.4
)
 
(1.4
)
 
—

 
(0.6
)
 
(0.6
)
Interest rate swaps (see Note 17)
—

 
(7.8
)
 
(7.8
)
 
—

 
—

 
—

 
$
6.5

 
$
(7.2
)
 
$
(0.7
)
 
$
7.3

 
$
(0.3
)
 
$
7.0



The following table sets forth the carrying values and fair values of the Company’s investment in Pop's mandatorily redeemable preferred stock units and outstanding debt at June 30, 2018 and March 31, 2018:
 
 
June 30, 2018
 
March 31, 2018
 
(Amounts in millions)
 
Carrying
Value
 
Fair Value
 
Carrying Value
 
Fair Value
 
 
 
(Level 3)
 
 
 
(Level 3)
Assets:
 
 
 
 
 
 
 
Investment in Pop's mandatorily redeemable preferred stock units(1)
$
90.6

 
$
125.0

 
$
91.3

 
$
125.0

 
 
 
 
 
 
 
 
 
Carrying
Value
 
Fair Value
 
Carrying Value
 
Fair Value
 
 
 
(Level 2)
 
 
 
(Level 2)
Liabilities(2):
 
 
 
 
 
 
 
Term Loan A
730.6

 
748.1

 
729.7

 
750.9

Term Loan B
1,226.7

 
1,248.4

 
1,229.3

 
1,251.6

5.875% Senior Notes
501.0

 
523.3

 
500.4

 
539.5

April 2013 1.25% Notes
—

 
—

 
60.0

 
60.3

Production loans
362.0

 
362.3

 
352.6

 
352.9

 
$
2,820.3

 
$
2,882.1

 
$
2,872.0

 
$
2,955.2


________________
(1)
The Company measures the fair value of its investment in Pop's mandatorily redeemable preferred stock units using primarily a discounted cash flow analysis based on the expected cash flows of the investment (a Level 3 measurement). The analysis reflects the contractual terms of the investment, including the period to maturity, and uses a discount rate commensurate with the risk associated with the investment.
(2)
The Company measures the fair value of its outstanding debt using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements).

The Company’s financial instruments also include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, borrowings under the Revolving Credit Facility, if any, capital lease obligations and dissenting shareholders' liability. The carrying values of these financial instruments approximated the fair values at June 30, 2018 and March 31, 2018.