Investments

The Company's investments consisted of the following:



	March 31, 2019		March 31, 2018
	(Amounts in millions)
Investments in equity method investees	$	24.5	$	127.0
Other investments	1.7		37.9
	$	26.2	$	164.9

The Company's equity interests income (loss) were as follows:



	Year Ended
	March 31,
Equity Method Investee	2019			2018			2017
	(Amounts in millions)
EPIX⁽¹⁾	$	—		$	4.0		$	31.0
Pop⁽²⁾	(8.4		)	(9.0		)	(6.9		)
Other	(34.5		)	(47.8		)	(13.4		)
	$	(42.9	)	$	(52.8	)	$	10.7

____________________


(1)	The Company's equity interest in EPIX was sold in May 2017 (see further discussion under "Gain (Loss) on Investments" section below).


(2)	The Company's equity interest in Pop was sold in March 2019 (see further discussion under "Pop" section below).

Equity Method Investments:

Pop. Pop was the Company's joint venture with CBS. On March 15, 2019, the Company sold its 50.0% interest in Pop to CBS, resulting in net proceeds of $48.0 million (net of transaction costs). The Company recorded a loss before income taxes on the sale of approximately $44.6 million, which is reflected in the gain (loss) on investments line item in the consolidated statement of operations for the year ended March 31, 2019.

Pop Financial Information:

The following table presents the summarized statements of operations for the period from April 1, 2018 through the date of sale of March 15, 2019, and for the years ended March 31, 2018 and 2017 for Pop and a reconciliation of the net loss reported by Pop to equity interest loss recorded by the Company:



	Period from April 1, 2018 to March 15, 2019 (date of sale)			Year Ended
				March 31,
				2018			2017

Revenues	$	96.9		$	110.9		$	95.0
Expenses:
Cost of services	55.0			66.2			52.7
Selling, marketing, and general and administration	49.9			54.1			47.6
Depreciation and amortization	7.4			8.1			7.9
Operating loss	(15.4		)	(17.5		)	(13.2		)
Interest expense, net	2.2			1.0			0.6
Accretion of redeemable preferred stock units⁽¹⁾	89.4			79.1			67.8
Total interest expense, net	91.6			80.1			68.4
Net loss	$	(107.0	)	$	(97.6	)	$	(81.6	)
Reconciliation of net loss reported by Pop to equity interest loss:
Net loss reported by Pop	$	(107.0	)	$	(97.6	)	$	(81.6	)
Ownership interest in Pop	50		%	50		%	50		%
The Company's share of net loss	(53.5		)	(48.8		)	(40.8		)
Accretion of dividend and interest income on redeemable preferred stock units⁽¹⁾	44.7			39.5			33.9
Elimination of the Company's share of profits on licensing sales to Pop	(0.2		)	(0.8		)	(0.6		)
Realization of the Company’s share of profits on licensing sales to Pop	0.6			1.1			0.6
Total equity interest loss recorded	$	(8.4	)	$	(9.0	)	$	(6.9	)

___________________

(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 income (loss).

EPIX. 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 consolidated statement of operations in the year ended March 31, 2018. Prior to the sale of its interest in EPIX, the Company had accounted for such interest as an equity method investment.

EPIX Financial Information:

The following table presents the summarized statements of income for EPIX for the period from April 1, 2017 through the date of sale of May 11, 2017, and for the year ended March 31, 2017 and a reconciliation of the net income reported by EPIX to equity interest income recorded by the Company:



	Period from April 1, 2017 to May 11, 2017 (date of sale)			Twelve Months Ended
				March 31,
				2017
	(Amounts in millions)
Revenues	$	44.8		$	400.1
Expenses:
Operating expenses	32.3			259.8
Selling, general and administrative expenses	2.4			23.3
Operating income	10.1			117.0
Interest and other expense	—			(0.3		)
Net income	$	10.1		$	116.7
Reconciliation of net income reported by EPIX to equity interest income:
Net income reported by EPIX	$	10.1		$	116.7
Ownership interest in EPIX	31.15		%	31.15		%
The Company's share of net income	3.1			36.4
Eliminations of the Company’s share of profits on licensing sales to EPIX⁽¹⁾	(0.1		)	(12.4		)
Realization of the Company’s share of profits on licensing sales to EPIX⁽²⁾	1.0			7.0
Total equity interest income recorded	$	4.0		$	31.0

_________________________


(1)	Represents the elimination of the gross profit recognized by the Company on licensing sales to EPIX in proportion to the Company's ownership interest in EPIX.


(2)	Represents the realization of a portion of the profits previously eliminated. This profit remains eliminated until realized by EPIX. EPIX initially records the license fee for the title as inventory on its balance sheet and amortizes the inventory over the license period. Accordingly, the profit is realized as the inventory on EPIX's books is amortized.

Other Equity Method Investments

The Company has investments in various other equity method investees with ownership percentages ranging from approximately 11% to 49%. 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.

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:



	March 31, 2019		March 31, 2018
	(Amounts in millions)
Current assets	$	189.8	$	232.7
Non-current assets	$	55.7	$	130.0
Current liabilities	$	167.8	$	201.5
Non-current liabilities	$	46.7	$	45.0



	Year Ended
	March 31,
	2019			2018			2017
	(Amounts in millions)
Revenues	$	107.5		$	178.8		$	30.1
Gross profit	$	36.9		$	42.6		$	9.1
Net loss	$	(102.6	)	$	(117.7	)	$	(50.8	)

Other Investments:

Other investments include equity securities that are measured at fair value and equity securities without readily determinable fair values, as described below:

Equity Securities Measured at Fair Value. Investments in equity securities that are measured at fair value are classified within Level 1 of the fair value hierarchy as the valuation inputs are based on quoted prices in active markets (see Note 10).

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 equity securities with a readily determinable fair market value are recognized in net income. At March 31, 2019 and March 31, 2018, "other investments" include investments in equity securities measured at fair value of $1.2 million and $7.3 million, respectively. Accordingly, during the fiscal year ended March 31, 2019, the Company recognized $6.2 million in unrealized losses on equity securities held as of March 31, 2019 which are reflected in the gain (loss) on investments line item on the consolidated statement of operations.

Equity Securities Without Readily Determinable Fair Values. Investments in equity securities without readily determinable fair values are valued at cost, less any impairment, and adjusted for changes resulting from observable, orderly transactions for identical or similar securities. At March 31, 2019 and March 31, 2018, "other investments" include investments in equity securities without readily determinable fair values of $0.5 million and $30.6 million, respectively.

Gain (Loss) on Investments:

The following table summarizes the components of the gain (loss) on investments:



	Year Ended
	March 31,
	2019			2018			2017
	(Amounts in millions)
Impairments of investments⁽¹⁾	$	(36.8	)	$	(29.2	)	$	—
Unrealized losses on equity securities held as of March 31, 2019	(6.2		)	—			—
Gain (loss) on sale of equity method investees⁽²⁾	(44.6		)	201.0			—
Gain on Starz investment⁽³⁾	—			—			20.4
	$	(87.6	)	$	171.8		$	20.4

_________________

(1)

In the fiscal years ended March 31, 2019 and 2018, amounts include impairments of equity method investments, and the fiscal year ended March 31, 2019 also includes other-than-temporary impairments of $34.2 million on investments in equity securities without readily determinable fair values and notes receivable (previously included in other assets) which were written down to their estimated fair value.


(2)	In the fiscal year ended March 31, 2019, represents the loss before income taxes recorded in connection with the March 2019 sale of the Company's 50.0% equity interest in Pop. In the fiscal year ended March 31, 2018, represents the gain before income taxes recorded in connection with the May 2017 sale of the Company's 31.15% equity interest in EPIX.


(3)	Represents the difference between the fair value and the original cost of the available-for-sale investment in equity securities of Starz held on the date of the Starz Merger (December 8, 2016).