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Leases | 9 Months Ended
--- | ---
Dec. 31, 2019
Leases [Abstract] |
Leases | Leases The Company has operating leases primarily for office space, studio facilities, and other equipment. The Company also has finance leases for a satellite transponder and the Starz commercial building. The Company's leases have remaining lease terms of up to approximately 10 years, and the Starz commercial building lease includes four successive five-year renewal periods at the Company's option. Most leases are not cancelable prior to their expiration. The expected term of the lease used for computing the lease liability and right-of-use ("ROU") asset and determining the classification of the lease as operating or financing may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company determines if an arrangement is a lease at its inception. Operating Leases. Operating lease ROU assets, representing the Company's right to use the underlying asset for the lease term, are included in the "Other assets - non-current" line item in the Company's December 31, 2019 unaudited condensed consolidated balance sheet. Operating lease liabilities, representing the present value of the Company's obligation to make payments over the lease term, are included in the “Accounts payable and accrued liabilities” and “Other liabilities - non-current” line items in the Company's December 31, 2019 unaudited condensed consolidated balance sheet. The Company has entered into various short-term operating leases which have an initial term of 12 months or less. These short-term leases are not recorded on the Company's unaudited condensed consolidated balance sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Finance Leases. Finance lease ROU assets are included in "Property and equipment, net" and finance lease liabilities are included in the “Debt - short-term portion” and “Debt - non-current” line items in the Company's December 31, 2019 unaudited condensed consolidated balance sheet. For finance leases, the Company recognizes interest expense on lease liabilities using the effective interest method and amortization of ROU assets on a straight-line basis over the lease term. The present value of the lease payments is calculated using a rate implicit in the lease, when readily determinable. However, as most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate to determine the present value of the lease payments for the majority of its leases. Variable lease payments that are based on an index or rate are included in the measurement of ROU assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in the measurement of ROU assets and lease liabilities. The components of lease cost were as follows:
| Three Months Ended |  | Nine Months Ended
| December 31, |  | December 31,
| 2019 |  | 2019
| (Amounts in millions)
Operating lease cost(1) | $ | 8.6 |  |  | $ | 25.5 |
Finance lease cost |  |  |
Amortization of right-of-use assets | 0.8 |  |  | 2.3 |
Interest on lease liabilities | 0.8 |  |  | 2.6 |
Total finance lease cost | 1.6 |  |  | 4.9 |
Short-term lease cost(1)(2) | 24.0 |  |  | 74.8 |
Total lease cost | $ | 34.2 |  |  | $ | 105.2 |
___________________
(1) | Amounts include costs capitalized during the period for leased assets used in the production of film and television programs. Operating lease cost amounts primarily represent the amortization of right-of-use assets and are included in the “other non-cash items” line of the unaudited condensed consolidated statement of cash flows.
(2) | Short-term lease cost primarily consists of leases of facilities and equipment associated with film and television productions.
Supplemental cash flow information related to leases was as follows:
| Nine Months Ended
| December 31,
| 2019
| (Amounts in millions)
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases | $ | 27.4 |
Financing cash flows from financing leases | 2.2 |
Right-of-use assets obtained in exchange for new lease obligations: |
Operating leases | 2.1 |
Supplemental balance sheet information related to leases was as follows:
Category |  | Balance Sheet Location |  | December 31, 2019
Operating Leases |  |  |  | (Amounts in millions)
Right-of-use assets |  | Other assets - non-current |  | $ | 140.3 |
Lease liabilities (current) |  | Accounts payable and accrued liabilities |  | $ | 29.5 |
Lease liabilities (non-current) |  | Other liabilities - non-current |  | 137.9 |
|  |  |  | $ | 167.4 |
Finance Leases |  |  |  |
Right-of-use assets |  | Property and equipment, net |  | $ | 47.9 |
Lease liabilities (current) |  | Debt - short-term portion |  | $ | 3.1 |
Lease liabilities (non-current) |  | Debt - non-current |  | 40.1 |
|  |  |  | $ | 43.2 |
| December 31, 2019
Weighted average remaining lease term (in years): |
Operating leases | 6.4 |
Finance leases | 21.6 |
Weighted average discount rate: |
Operating leases | 4.12 | %
Finance leases | 6.41 | %
The expected future payments relating to the Company's operating and finance lease liabilities at December 31, 2019 are as follows:
| Operating Leases |  | Finance Leases
| (Amounts in millions)
Three months ending March 31, 2020 | $ | 8.8 |  |  | $ | 1.6 |
Year ending March 31, |  |  |
2021 | 35.9 |  |  | 6.2 |
2022 | 33.2 |  |  | 3.9 |
2023 | 32.5 |  |  | 3.9 |
2024 | 20.4 |  |  | 3.9 |
Thereafter | 60.4 |  |  | 73.5 |
Total lease payments | 191.2 |  |  | 93.0 |
Less imputed interest | (23.8 | ) |  | (49.8 | )
Total | $ | 167.4 |  |  | $ | 43.2 |
Leases | Leases The Company has operating leases primarily for office space, studio facilities, and other equipment. The Company also has finance leases for a satellite transponder and the Starz commercial building. The Company's leases have remaining lease terms of up to approximately 10 years, and the Starz commercial building lease includes four successive five-year renewal periods at the Company's option. Most leases are not cancelable prior to their expiration. The expected term of the lease used for computing the lease liability and right-of-use ("ROU") asset and determining the classification of the lease as operating or financing may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company determines if an arrangement is a lease at its inception. Operating Leases. Operating lease ROU assets, representing the Company's right to use the underlying asset for the lease term, are included in the "Other assets - non-current" line item in the Company's December 31, 2019 unaudited condensed consolidated balance sheet. Operating lease liabilities, representing the present value of the Company's obligation to make payments over the lease term, are included in the “Accounts payable and accrued liabilities” and “Other liabilities - non-current” line items in the Company's December 31, 2019 unaudited condensed consolidated balance sheet. The Company has entered into various short-term operating leases which have an initial term of 12 months or less. These short-term leases are not recorded on the Company's unaudited condensed consolidated balance sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Finance Leases. Finance lease ROU assets are included in "Property and equipment, net" and finance lease liabilities are included in the “Debt - short-term portion” and “Debt - non-current” line items in the Company's December 31, 2019 unaudited condensed consolidated balance sheet. For finance leases, the Company recognizes interest expense on lease liabilities using the effective interest method and amortization of ROU assets on a straight-line basis over the lease term. The present value of the lease payments is calculated using a rate implicit in the lease, when readily determinable. However, as most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate to determine the present value of the lease payments for the majority of its leases. Variable lease payments that are based on an index or rate are included in the measurement of ROU assets and lease liabilities at lease inception. All other variable lease payments are expensed as incurred and are not included in the measurement of ROU assets and lease liabilities. The components of lease cost were as follows:
| Three Months Ended |  | Nine Months Ended
| December 31, |  | December 31,
| 2019 |  | 2019
| (Amounts in millions)
Operating lease cost(1) | $ | 8.6 |  |  | $ | 25.5 |
Finance lease cost |  |  |
Amortization of right-of-use assets | 0.8 |  |  | 2.3 |
Interest on lease liabilities | 0.8 |  |  | 2.6 |
Total finance lease cost | 1.6 |  |  | 4.9 |
Short-term lease cost(1)(2) | 24.0 |  |  | 74.8 |
Total lease cost | $ | 34.2 |  |  | $ | 105.2 |
___________________
(1) | Amounts include costs capitalized during the period for leased assets used in the production of film and television programs. Operating lease cost amounts primarily represent the amortization of right-of-use assets and are included in the “other non-cash items” line of the unaudited condensed consolidated statement of cash flows.
(2) | Short-term lease cost primarily consists of leases of facilities and equipment associated with film and television productions.
Supplemental cash flow information related to leases was as follows:
| Nine Months Ended
| December 31,
| 2019
| (Amounts in millions)
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases | $ | 27.4 |
Financing cash flows from financing leases | 2.2 |
Right-of-use assets obtained in exchange for new lease obligations: |
Operating leases | 2.1 |
Supplemental balance sheet information related to leases was as follows:
Category |  | Balance Sheet Location |  | December 31, 2019
Operating Leases |  |  |  | (Amounts in millions)
Right-of-use assets |  | Other assets - non-current |  | $ | 140.3 |
Lease liabilities (current) |  | Accounts payable and accrued liabilities |  | $ | 29.5 |
Lease liabilities (non-current) |  | Other liabilities - non-current |  | 137.9 |
|  |  |  | $ | 167.4 |
Finance Leases |  |  |  |
Right-of-use assets |  | Property and equipment, net |  | $ | 47.9 |
Lease liabilities (current) |  | Debt - short-term portion |  | $ | 3.1 |
Lease liabilities (non-current) |  | Debt - non-current |  | 40.1 |
|  |  |  | $ | 43.2 |
| December 31, 2019
Weighted average remaining lease term (in years): |
Operating leases | 6.4 |
Finance leases | 21.6 |
Weighted average discount rate: |
Operating leases | 4.12 | %
Finance leases | 6.41 | %
The expected future payments relating to the Company's operating and finance lease liabilities at December 31, 2019 are as follows:
| Operating Leases |  | Finance Leases
| (Amounts in millions)
Three months ending March 31, 2020 | $ | 8.8 |  |  | $ | 1.6 |
Year ending March 31, |  |  |
2021 | 35.9 |  |  | 6.2 |
2022 | 33.2 |  |  | 3.9 |
2023 | 32.5 |  |  | 3.9 |
2024 | 20.4 |  |  | 3.9 |
Thereafter | 60.4 |  |  | 73.5 |
Total lease payments | 191.2 |  |  | 93.0 |
Less imputed interest | (23.8 | ) |  | (49.8 | )
Total | $ | 167.4 |  |  | $ | 43.2 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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