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Capital Stock | 12 Months Ended
--- | ---
Mar. 31, 2019
Equity and Share-based Compensation [Abstract] |
Capital Stock | Capital Stock (a) Common Shares The Company had 500 million authorized Class A voting shares, and 500 million authorized Class B non-voting shares, at March 31, 2019 and March 31, 2018. As discussed in Note 2, immediately prior to the consummation of the December 8, 2016 Starz Merger, the Company effected the reclassification of its capital stock, pursuant to which each previously existing Lionsgate common share was converted into 0.5 shares of a newly issued Class A voting shares and 0.5 shares of a newly issued Class B non-voting shares, subject to the terms and conditions of the Merger Agreement, resulting in 74.2 million of Class A voting shares and 74.2 million of Class B non-voting shares. The table below outlines common shares reserved for future issuance:
| March 31, 2019 |  | March 31, 2018
| (Amounts in millions)
Stock options and equity-settled SARs outstanding | 34.6 |  |  | 32.1 |
Restricted stock and restricted share units — unvested | 2.0 |  |  | 2.2 |
Common shares available for future issuance under the 2017 Plan (as defined below) | 6.7 |  |  | 10.3 |
Shares issuable upon conversion of April 2013 1.25% Notes | — |  |  | 2.1 |
Shares reserved for future issuance | 43.3 |  |  | 46.7 |
(b) Share Repurchases On February 2, 2016, the Company's Board of Directors authorized the Company to increase its previously announced share repurchase plan from a total authorization of $300 million to $468 million. During the years ended March 31, 2019, 2018 and 2017 the Company did not repurchase any common shares. To date, approximately $283.2 million common shares have been repurchased, leaving approximately $184.7 million of authorized potential purchases. (c) Dividends The amount of dividends, if any, that the Company pays to its shareholders is determined by its Board of Directors, at its discretion, and is dependent on a number of factors, including our financial position, results of operations, cash flows, capital requirements and restrictions under its credit agreements, and shall be in compliance with applicable law. In November 2018, the Company's Board of Directors suspended the Company's quarterly cash dividend to focus on driving long-term shareholder value by investing in global growth opportunities for Starz, while also strengthening its balance sheet. During the fiscal years ended March 31, 2019, 2018 and 2017, the Company's Board of Directors declared the following quarterly cash dividends:
|  | Dividends Declared Per Common Share |  | Total Amount |  | Payment Date
|  |  |  | (in millions) |  |
Fiscal Year 2019: |  |  |  |  |  |
Second quarter ended September 30, 2018 |  | $0.09 |  | $ | 19.3 |  |  | November 8, 2018
First quarter ended June 30, 2018 |  | $0.09 |  | 19.2 |  |  | August 9, 2018
Total cash dividends declared in fiscal year 2019 |  | $0.18 |  | $ | 38.5 |  |  |
Fiscal Year 2018: |  |  |  |  |  |
Fourth quarter ended March 31, 2018 |  | $0.09 |  | $ | 19.1 |  |  | May 1, 2018
Fiscal Year 2017: |  |  |  |  |  |
First quarter ended June 30, 2016 |  | $0.09 |  | $ | 13.3 |  |  | August 5, 2016
As of March 31, 2019, the Company was not limited in its capacity to pay dividends under the Senior Credit Facilities Amended Credit Agreement and the indenture governing the 5.875% Senior Notes and the 6.375% Senior Notes (see Note 7). (d) Share-based Compensation On September 12, 2017, the Company’s shareholders approved the Lions Gate Entertainment Corp. 2017 Performance Incentive Plan (the “2017 Plan”) previously adopted by the Board of Directors (the “Board”) of the Company. The types of awards that may be granted under the 2017 Plan include stock options, share appreciation rights ("SARs"), restricted stock, restricted share units, stock bonuses and other forms of awards granted or denominated in Class A voting shares and Class B non-voting shares ("Common Shares") or units of Common Shares, as well as certain cash bonus awards. Persons eligible to receive awards under the 2017 Plan include directors of the Company, officers or employees of the Company or any of its subsidiaries, and certain consultants and advisors to the Company or any of its subsidiaries. Stock options are generally granted at exercise prices equal to or exceeding the market price of the Company's Common Shares at the date of grant. Substantially all stock options vest ratably over one to five years from the grant date based on continuous service and expire seven to ten years from the date of grant. Restricted stock and restricted share units generally vest ratably over one to four years based on continuous service. The Company satisfies stock option exercises and vesting of restricted stock and restricted share units with newly issued shares. The measurement of all share-based awards uses a fair value method and the recognition of the related share-based compensation expense in the consolidated financial statements is recorded over the requisite service period. Further, the Company estimates forfeitures for share-based awards that are not expected to vest. As share-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The Company recognized the following share-based compensation expense during the years ended March 31, 2019, 2018 and 2016:
| Year Ended
| March 31,
| 2019 |  | 2018 |  | 2017
| (Amounts in millions)
Compensation Expense: |  |  |  |  |
Stock options | $ | 23.0 |  |  | $ | 43.1 |  |  | $ | 42.5 |
Restricted share units and other share-based compensation | 24.7 |  |  | 36.2 |  |  | 34.0 |
Share appreciation rights | 4.4 |  |  | 6.3 |  |  | 0.6 |
| 52.1 |  |  | 85.6 |  |  | 77.1 |
Impact of accelerated vesting on equity awards(1) | 16.0 |  |  | 2.9 |  |  | 2.4 |
Total share-based compensation expense | $ | 68.1 |  |  | $ | 88.5 |  |  | $ | 79.5 |
Tax impact(2) | (15.7 | ) |  | (29.6 | ) |  | (28.0 | )
Reduction in net income | $ | 52.4 |  |  | $ | 58.9 |  |  | $ | 51.5 |
___________________
(1) | Represents the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements.
(2) | Represents the income tax benefit recognized in the statements of operations for share-based compensation arrangements.
Share-based compensation expense, by expense category, consisted of the following:
| Year Ended
| March 31,
| 2019 |  | 2018 |  | 2017
| (Amounts in millions)
Compensation Expense: |  |  |  |  |
Direct operating | $ | 1.1 |  |  | $ | 1.1 |  |  | $ | 1.2 |
Distribution and marketing | 0.4 |  |  | 0.9 |  |  | 0.4 |
General and administration | 50.6 |  |  | 83.6 |  |  | 75.5 |
Restructuring and other | 16.0 |  |  | 2.9 |  |  | 2.4 |
| $ | 68.1 |  |  | $ | 88.5 |  |  | $ | 79.5 |
Stock Options The following table sets forth the stock option and equity-settled share appreciation rights activity during the year ended March 31, 2019:
| Stock Options and Equity-Settled SARs
| Class A Voting Shares |  | Class B Non-Voting Shares
| Number of Shares |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value |  | Number of Shares |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term (years) |  | Aggregate Intrinsic Value
| (Amounts in millions, except for weighted-average exercise price and years)
Outstanding at March 31, 2018 | 8.6 |  |  | $26.93 |  |  |  |  |  | 23.5 |  |  | $20.56 |  |  |  |  |
Granted | 0.2 |  |  | $28.07 |  |  |  |  |  | 4.2 |  |  | $21.52 |  |  |  |
Exercised | — |  | (1) | $15.76 |  |  |  |  |  | (0.7 | ) |  | $10.78 |  |  |  |
Forfeited or expired | (0.4 | ) |  | $33.42 |  |  |  |  |  | (0.8 | ) |  | $29.00 |  |  |  |
Outstanding at March 31, 2019 | 8.4 |  |  | $26.70 |  | 4.97 |  | $ | 0.1 |  |  | 26.2 |  |  | $20.72 |  | 4.17 |  | $ | 25.4 |
Vested or expected to vest at March 31, 2019 | 8.4 |  |  | $26.71 |  | 4.96 |  | $ | 0.1 |  |  | 25.8 |  |  | $20.70 |  | 4.13 |  | $ | 25.4 |
Exercisable at March 31, 2019 | 6.1 |  |  | $27.91 |  | 4.18 |  | $ | 0.1 |  |  | 19.1 |  |  | $19.72 |  | 2.74 |  | $ | 25.3 |
__________________
(1) | Represents less than 0.1 million shares.
The fair value of each option award is estimated on the date of grant using a closed-form option valuation model (Black-Scholes). The following table presents the weighted average grant-date fair value of options granted in the years ended March 31, 2019, 2018 and 2017, and the weighted average applicable assumptions used in the Black-Scholes option-pricing model for stock options and share-appreciation rights granted during the years then ended:
| Year Ended March 31,
| 2019 |  | 2018 |  | 2017
Weighted average fair value of grants | $5.48 |  | $8.38 |  | $6.88
Weighted average assumptions: |  |  |  |  |
Risk-free interest rate(1) | 2.2% - 3.1% |  | 1.7% - 2.7% |  | 1.2% - 2.4%
Expected option lives (in years)(2) | 1 - 7 years |  | 4 - 6 years |  | 4 - 10 years
Expected volatility for options(3) | 34% |  | 35% |  | 35%
Expected dividend yield(4) | 0.0% - 1.7% |  | 0.0% - 1.5% |  | 0.0% - 1.8%
____________________________
(1) | The risk-free rate assumed in valuing the options is based on the U.S. Treasury Yield curve in effect applied against the expected term of the option at the time of the grant.
(2) | The expected term of options granted represents the period of time that options granted are expected to be outstanding.
(3) | Expected volatilities are based on implied volatilities from traded options on the Company’s shares, historical volatility of the Company’s shares and other factors.
(4) | The expected dividend yield is estimated by dividing the expected annual dividend by the market price of the Company's shares at the date of grant.
The total intrinsic value of options exercised during the year ended March 31, 2019 was $5.3 million (2018 — $36.9 million, 2017 — $30.0 million). During the year ended March 31, 2019, less than 0.1 million shares (2018 — 0.1 million shares, 2017 — 0.8 million shares) were cancelled to fund withholding tax obligations upon exercise of options. Restricted Share Units The following table sets forth the restricted share unit and restricted stock activity during the year ended March 31, 2019:
| Restricted Share Units |  | Restricted Stock
| Class A Voting Shares |  | Weighted-Average Grant-Date Fair Value |  | Class B Non-Voting Shares |  | Weighted-Average Grant-Date Fair Value |  | Class B Non-Voting Shares |  | Weighted-Average Grant-Date Fair Value
| (Amounts in millions, except for weighted-average grant date fair value)
Outstanding at March 31, 2018 | 0.2 |  |  | $28.49 |  | 1.5 |  |  | $28.71 |  | 0.5 |  |  | $25.70
Granted | — |  | (1) | $23.51 |  | 1.3 |  |  | $19.88 |  | — |  |  | — |
Vested | (0.1 | ) |  | $29.05 |  | (0.9 | ) |  | $26.14 |  | (0.2 | ) |  | $25.70
Forfeited | — |  | (1) | $24.83 |  | (0.3 | ) |  | $23.24 |  | — |  | (1) | $25.70
Outstanding at March 31, 2019 | 0.1 |  |  | $25.68 |  | 1.6 |  |  | $24.01 |  | 0.3 |  |  | $25.70
__________________
(1) | Represents less than 0.1 million shares.
The fair values of restricted stock and restricted share units are determined based on the market value of the shares on the date of grant. The total fair value of restricted share units and restricted stock vested during the year ended March 31, 2019 was $33.7 million (2018 - $41.6 million, 2017 - $60.7 million). The following table summarizes the total remaining unrecognized compensation cost as of March 31, 2019 related to non-vested stock options and restricted stock and restricted share units and the weighted average remaining years over which the cost will be recognized:
| Total Unrecognized Compensation Cost |  | Weighted Average Remaining Years
| (Amounts in millions) |  |
Stock Options | $ | 43.4 |  |  | 2.8
Restricted Stock and Restricted Share Units | 31.9 |  |  | 2.0
Total | $ | 75.3 |  |  |
Under the Company’s stock option and long term incentive plans, the Company withholds shares to satisfy minimum statutory federal, state and local tax withholding obligations arising from the vesting of restricted stock and restricted share units. During the year ended March 31, 2019, 0.5 million shares (2018 — 0.7 million shares, 2017 — 1.0 million shares) were withheld upon the vesting of restricted stock and restricted share units. The Company becomes entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the stock options and restricted share units when vesting or exercise occurs, the restrictions are released and the shares are issued. Restricted share units are forfeited if the employees are terminated prior to vesting. The Company recognized excess tax deficiencies of $14.9 million associated with its equity awards in its tax benefit for the year ended March 31, 2019 (2018 — benefit of $5.2 million, 2017 — none). Other Share-Based Compensation Pursuant to the terms of certain employment agreements, during the year ended March 31, 2019, the Company granted the equivalent of $2.3 million (2018 - $0.8 million, 2017 - $1.1 million) in shares to certain employees through the term of their employment contracts, which were recorded as compensation expense in the applicable period. Pursuant to this arrangement, for the year ended March 31, 2019, the Company issued 0.1 million shares (2018 - less than 0.1 million shares, 2017 - less than 0.1 million shares), net of shares withheld to satisfy minimum tax withholding obligations. (e) Other In connection with an amendment of an affiliation agreement with a customer and effective upon the close of the Starz Merger, the Company agreed to issue to the customer three $16.67 million annual installments of equity (or cash at the Company's election). The total value of the contract of $50 million is being amortized as a reduction of revenue over the period from December 8, 2016 to August 31, 2019. During the year ended March 31, 2019, Lionsgate issued to the customer 0.4 million Class A voting shares valued at $8.3 million and 0.5 million Class B voting shares valued at $8.3 million (2018 — 0.3 million Class A voting shares valued at $8.3 million and 0.3 million Class B non-voting shares valued at $8.3 million).

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- Definition Equity and Share-based Compensation [Abstract] + References No definition available. + Details
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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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