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Investments | 6 Months Ended
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Sep. 30, 2018
Equity Method Investments, Cost Method Investments, and Investments in Debt and Equity [Abstract] |
Investments | Investments The carrying amounts of investments, by category, at September 30, 2018 and March 31, 2018 were as follows:
|  | September 30, 2018 |  | March 31, 2018
|  | (Amounts in millions)
Equity method investments |  | $ | 124.7 |  |  | $ | 127.0 |
Available-for-sale securities |  | 4.6 |  |  | 7.3 |
Cost method investments |  | 0.5 |  |  | 30.6 |
|  | $ | 129.8 |  |  | $ | 164.9 |
Equity Method Investments: The carrying amounts of equity method investments at September 30, 2018 and March 31, 2018 were as follows:
| September 30, 2018 |  |  |  |
Equity Method Investee | Ownership Percentage |  | September 30, 2018 |  | March 31, 2018
|  |  | (Amounts in millions)
Pop | 50.0% |  | $ | 95.3 |  |  | $ | 91.3 |
Other | Various |  | 29.4 |  |  | 35.7 |
|  |  | $ | 124.7 |  |  | $ | 127.0 |
Equity interests in equity method investments for the three and six months ended September 30, 2018 and 2017 were as follows (income (loss)):
| Three Months Ended |  | Six Months Ended
| September 30, |  | September 30,
Equity Method Investee | 2018 |  | 2017 |  | 2018 |  | 2017
| (Amounts in millions)
EPIX(1) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4.0 |
Pop | (0.3 | ) |  | 0.5 |  |  | (1.1 | ) |  | (2.5 | )
Other | (11.4 | ) |  | (13.2 | ) |  | (16.7 | ) |  | (22.5 | )
| $ | (11.7 | ) |  | $ | (12.7 | ) |  | $ | (17.8 | ) |  | $ | (21.0 | )
______________
(1) | In May 2017, the Company sold all of its 31.15% equity interest in EPIX. The Company recorded a gain before income taxes of approximately $201.0 million which is reflected in the gain (loss) on investments line item in the unaudited condensed consolidated statement of operations for the six months ended September 30, 2017. Prior to the sale of its interest in EPIX, the Company had accounted for such interest as an equity method investment.
Pop. Pop is the Company's joint venture with CBS. The Company’s investment interest in Pop consists of an equity investment in its common stock units and mandatorily redeemable preferred stock units. The mandatorily redeemable preferred stock units carry a dividend rate of 10% compounded annually and are mandatorily redeemable at the stated value plus the dividend return and any additional capital contributions less previous distributions. The mandatorily redeemable preferred stock units were initially recorded based on their estimated fair value, as determined using an option pricing model. The mandatorily redeemable preferred stock units and the 10% dividend are being accreted up to their redemption amount over the ten-year period to the redemption date, which is recorded as income within equity interest loss. During the three and six months ended September 30, 2018, the Company made contributions to Pop of $5.0 million and $5.0 million, respectively. Pop Financial Information: The following table presents summarized balance sheet data as of September 30, 2018 and March 31, 2018 for Pop:
| September 30, 2018 |  | March 31, 2018
| (Amounts in millions)
Current assets | $ | 73.5 |  |  | $ | 48.2 |
Non-current assets | $ | 190.6 |  |  | $ | 191.6 |
Current liabilities | $ | 46.5 |  |  | $ | 37.2 |
Non-current liabilities(1) | $ | 716.5 |  |  | $ | 654.9 |
Redeemable preferred stock(1) | $ | 692.7 |  |  | $ | 638.4 |
_________________________
(1) | Non-current liabilities includes mandatorily redeemable preferred stock units.
The following table presents the summarized statements of operations for the three and six months ended September 30, 2018, and 2017 for Pop and a reconciliation of the net loss reported by Pop to equity interest income (loss) recorded by the Company:
| Three Months Ended |  | Six Months Ended
| September 30, |  | September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Revenues | $ | 25.9 |  |  | $ | 28.3 |  |  | $ | 51.5 |  |  | $ | 53.0 |
Expenses: |  |  |  |  |  |  |
Cost of services | 12.4 |  |  | 13.8 |  |  | 25.5 |  |  | 30.8 |
Selling, marketing, and general and administration | 11.5 |  |  | 11.1 |  |  | 23.4 |  |  | 23.2 |
Depreciation and amortization | 2.0 |  |  | 2.0 |  |  | 4.0 |  |  | 4.0 |
Operating income (loss) | — |  |  | 1.4 |  |  | (1.4 | ) |  | (5.0 | )
Interest expense, net | 0.5 |  |  | 0.4 |  |  | 0.9 |  |  | 0.5 |
Accretion of redeemable preferred stock units(1) | 22.6 |  |  | 19.3 |  |  | 44.4 |  |  | 37.9 |
Total interest expense, net | 23.1 |  |  | 19.7 |  |  | 45.3 |  |  | 38.4 |
Net loss | $ | (23.1 | ) |  | $ | (18.3 | ) |  | $ | (46.7 | ) |  | $ | (43.4 | )
Reconciliation of net loss reported by Pop to equity interest income (loss): |  |  |  |  |  |  |
Net loss reported by Pop | $ | (23.1 | ) |  | $ | (18.3 | ) |  | $ | (46.7 | ) |  | $ | (43.4 | )
Ownership interest in Pop | 50 | % |  | 50 | % |  | 50 | % |  | 50 | %
The Company's share of net loss | (11.6 | ) |  | (9.2 | ) |  | (23.4 | ) |  | (21.7 | )
Accretion of dividend and interest income on redeemable preferred stock units(1) | 11.3 |  |  | 9.7 |  |  | 22.2 |  |  | 19.0 |
Elimination of the Company's share of profits on licensing sales to Pop | (0.1 | ) |  | (0.1 | ) |  | (0.2 | ) |  | (0.2 | )
Realization of the Company’s share of profits on licensing sales to Pop | 0.1 |  |  | 0.1 |  |  | 0.3 |  |  | 0.4 |
Total equity interest income (loss) recorded | $ | (0.3 | ) |  | $ | 0.5 |  |  | $ | (1.1 | ) |  | $ | (2.5 | )
___________________
(1) | Accretion of mandatorily redeemable preferred stock units represents Pop's 10% dividend and the amortization of discount on its mandatorily redeemable preferred stock units held by the Company and the other interest holder. The Company recorded its share of this expense as income from the accretion of dividend and discount on mandatorily redeemable preferred stock units within equity interest loss.
Other Equity Method Investments The Company has investments in various other equity method investees with ownership percentages ranging from approximately 9% to 50%. These investments include: Playco. Playco Holdings Limited ("Playco") offers a STARZ-branded online subscription video-on-demand service in the Middle East and North Africa. Laugh Out Loud. In March 2016, the Company entered into a partnership with Kevin Hart and Hartbeat Digital to launch a new streaming video service, Laugh Out Loud. The streaming video service launched in August 2017. The new service will serve as the exclusive home for all content created by Kevin Hart outside his theatrical and live touring activities and will include original series starring Kevin Hart. Laugh Out Loud will also showcase content curated by Kevin Hart along with shows featuring social media stars and up and coming comedians. Roadside Attractions. Roadside Attractions is an independent theatrical distribution company. Pantelion Films. Pantelion Films is a joint venture with Videocine, an affiliate of Televisa, which produces, acquires and distributes a slate of English and Spanish language feature films that target Hispanic moviegoers in the U.S. Atom Tickets. Atom Tickets is the first-of-its-kind theatrical mobile ticketing platform and app. The Company is accounting for its investment in Atom Tickets, a limited liability company, under the equity method of accounting due to the Company's board representation that provides significant influence over the investee. Other. In addition to the equity method investments discussed above, the Company holds ownership interests in other immaterial equity method investees. Summarized Financial Information. Summarized financial information for the Company's "other equity method investees", on an aggregate basis, is set forth below:
| September 30, 2018 |  | March 31, 2018
| (Amounts in millions)
Current assets | $ | 181.4 |  |  | $ | 232.7 |
Non-current assets | $ | 59.5 |  |  | $ | 130.0 |
Current liabilities | $ | 149.9 |  |  | $ | 201.5 |
Non-current liabilities | $ | 10.2 |  |  | $ | 45.0 |
| Three Months Ended |  | Six Months Ended
| September 30, |  | September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (Amounts in millions)
Revenues | $ | 30.7 |  |  | $ | 49.3 |  |  | $ | 53.4 |  |  | $ | 88.1 |
Gross profit | $ | 15.3 |  |  | $ | 9.3 |  |  | $ | 19.6 |  |  | $ | 18.0 |
Net loss | $ | (34.9 | ) |  | $ | (32.5 | ) |  | $ | (55.3 | ) |  | $ | (62.4 | )
Available-for-Sale Securities: Next Games. At September 30, 2018 and March 31, 2018, the Company's available-for-sale securities consisted of the Company's minority ownership interest in Next Games. Next Games is a mobile games development company headquartered in Helsinki, Finland, with a focus on crafting visually impressive, highly engaging games. Next Games is traded on the Nasdaq First North Finland marketplace maintained by Nasdaq Helsinki Ltd, and the Company classifies its investment in Next Games within Level 1 of the fair value hierarchy as the valuation inputs are based on quoted prices in active markets (see Note 8). As a result of the adoption of new accounting guidance for Recognition and Measurement of Financial Instruments (see Note 1), effective April 1, 2018 changes in the fair value of the Company's available-for-sale investments with a readily determinable fair market value are recognized in net income. Accordingly, during the three and six months ended September 30, 2018, the Company recognized $1.9 million and $2.8 million, respectively in unrealized losses on available-for-sale securities held as of September 30, 2018 which are reflected in the gain (loss) on investments line item on the unaudited condensed consolidated statement of operations. Cost Method Investments: At March 31, 2018, the Company's cost method investments primarily consisted of its minority economic interest in Telltale Games ("Telltale"). Telltale is a creator, developer and publisher of interactive software episodic games based upon popular stories and characters across all major gaming and entertainment platforms. During the three and six months ended September 30, 2018, the Company recognized $34.2 million of other-than-temporary impairments on its cost method investments and notes receivable (previously included in other assets, see Note 18) related to Telltale, which were written down to their estimated fair value of zero. The impairment charges are included in the gain (loss) on investments line item in the unaudited condensed consolidated statements of operations. Gain (Loss) on Investments: The following table summarizes the components of the gain (loss) on investments, as previously described in the respective sections above:
| Three Months Ended |  | Six Months Ended
| September 30, |  | September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (Amounts in millions)
Impairments of long-term investments and other assets | $ | (34.2 | ) |  | $ | — |  |  | $ | (34.2 | ) |  | $ | — |
Unrealized losses on available-for-sale securities held as of September 30, 2018 | (1.9 | ) |  | — |  |  | (2.8 | ) |  | — |
Gain on sale of EPIX | — |  |  | — |  |  | — |  |  | 201.0 |
| $ | (36.1 | ) |  | $ | — |  |  | $ | (37.0 | ) |  | $ | 201.0 |

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