XML 38 R17.htm IDEA: XBRL DOCUMENT v3.21.1
Leases
 12 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases Leases
The Company has operating leases primarily for office space, studio facilities, and other equipment. Through the first quarter of fiscal 2021, the Company had classified its lease for the Starz commercial building as a finance lease. During the second quarter ended September 30, 2020, due to a change in the expected lease term of the Starz commercial building, the Company reassessed the lease classification of the Starz commercial building, which resulted in a change in classification of this lease from a finance lease to an operating lease. As a result, the right-of-use assets and lease liabilities (including the fair value adjustment) under finance leases decreased by $42.0 million and $48.6 million, respectively, and the right-of-use assets and lease liabilities under operating leases increased by $6.0 million and $12.6 million, respectively in the fiscal year ended March 31, 2021. 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.
The components of lease cost were as follows:
Year Ended
March 31,
20212020
(Amounts in millions)
Operating lease cost(1)
$45.1 $35.3 
Finance lease cost
Amortization of right-of-use assets2.6 3.0 
Interest on lease liabilities1.6 3.4 
Total finance lease cost4.2 6.4 
Short-term lease cost(1)(2)
129.5 93.3 
Variable lease cost(3)
2.6 2.5 
Total lease cost$181.4 $137.5 
___________________
(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 amortization” line of the consolidated statement of cash flows.
(2)Short-term lease cost primarily consists of leases of facilities and equipment associated with film and television productions.
(3)Variable lease cost primarily consists of insurance, taxes, maintenance and other operating costs.
Supplemental balance sheet information related to leases was as follows:
CategoryBalance Sheet LocationMarch 31,
2021		March 31,
2020
Operating Leases(Amounts in millions)
Right-of-use assetsOther assets - non-current$127.0 136.9 
Lease liabilities (current)Accounts payable and accrued liabilities$41.4 35.3 
Lease liabilities (non-current)Other liabilities - non-current119.9 129.6 
$161.3 164.9 
Finance Leases
Right-of-use assetsProperty and equipment, net$— 46.4 
Lease liabilities (current)Debt - short-term portion$— 3.0 
Lease liabilities (non-current)Debt - non-current— 39.4 
$— 42.4 
March 31,
2021		March 31,
2020
Weighted average remaining lease term (in years):
Operating leases5.16.1
Finance leases— 21.6
Weighted average discount rate:
Operating leases3.88 %4.10 %
Finance leases— 6.40 %
The expected future payments relating to the Company's operating lease liabilities at March 31, 2021 are as follows (no finance lease liabilities outstanding at March 31, 2021):
Operating
Leases
(Amounts in millions)
Year ending March 31,
2022$47.6 
202341.1 
202425.8 
202515.0 
202615.4 
Thereafter34.0 
Total lease payments178.9 
Less imputed interest(17.6)
Total$161.3 
As of March 31, 2021, the Company has entered into a lease that has not yet commenced related to a studio facility owned by an equity-method investee, for which construction has not yet been completed. The lease is for a term of 10.5 years, commencing upon completion of construction of the studio facility (currently expected to be in calendar year 2021), and includes an option to extend the term for an additional 5 years. The total minimum lease payments under this lease, as amended, are approximately $72.8 million.
Additionally, as of March 31, 2021, the Company has entered into a lease that has not yet commenced for office space for which construction has not yet been completed, also related to the studio facility described above. The lease is for a term of 10.5 years commencing upon completion of construction of the studio facility. The total minimum lease payments under this lease are approximately $11.7 million.
Under the accounting guidance in effect prior to April 1, 2019, the Company incurred rent expense of $27.0 million in the year ended March 31, 2019.
Leases Leases
The Company has operating leases primarily for office space, studio facilities, and other equipment. Through the first quarter of fiscal 2021, the Company had classified its lease for the Starz commercial building as a finance lease. During the second quarter ended September 30, 2020, due to a change in the expected lease term of the Starz commercial building, the Company reassessed the lease classification of the Starz commercial building, which resulted in a change in classification of this lease from a finance lease to an operating lease. As a result, the right-of-use assets and lease liabilities (including the fair value adjustment) under finance leases decreased by $42.0 million and $48.6 million, respectively, and the right-of-use assets and lease liabilities under operating leases increased by $6.0 million and $12.6 million, respectively in the fiscal year ended March 31, 2021. 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.
The components of lease cost were as follows:
Year Ended
March 31,
20212020
(Amounts in millions)
Operating lease cost(1)
$45.1 $35.3 
Finance lease cost
Amortization of right-of-use assets2.6 3.0 
Interest on lease liabilities1.6 3.4 
Total finance lease cost4.2 6.4 
Short-term lease cost(1)(2)
129.5 93.3 
Variable lease cost(3)
2.6 2.5 
Total lease cost$181.4 $137.5 
___________________
(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 amortization” line of the consolidated statement of cash flows.
(2)Short-term lease cost primarily consists of leases of facilities and equipment associated with film and television productions.
(3)Variable lease cost primarily consists of insurance, taxes, maintenance and other operating costs.
Supplemental balance sheet information related to leases was as follows:
CategoryBalance Sheet LocationMarch 31,
2021		March 31,
2020
Operating Leases(Amounts in millions)
Right-of-use assetsOther assets - non-current$127.0 136.9 
Lease liabilities (current)Accounts payable and accrued liabilities$41.4 35.3 
Lease liabilities (non-current)Other liabilities - non-current119.9 129.6 
$161.3 164.9 
Finance Leases
Right-of-use assetsProperty and equipment, net$— 46.4 
Lease liabilities (current)Debt - short-term portion$— 3.0 
Lease liabilities (non-current)Debt - non-current— 39.4 
$— 42.4 
March 31,
2021		March 31,
2020
Weighted average remaining lease term (in years):
Operating leases5.16.1
Finance leases— 21.6
Weighted average discount rate:
Operating leases3.88 %4.10 %
Finance leases— 6.40 %
The expected future payments relating to the Company's operating lease liabilities at March 31, 2021 are as follows (no finance lease liabilities outstanding at March 31, 2021):
Operating
Leases
(Amounts in millions)
Year ending March 31,
2022$47.6 
202341.1 
202425.8 
202515.0 
202615.4 
Thereafter34.0 
Total lease payments178.9 
Less imputed interest(17.6)
Total$161.3 
As of March 31, 2021, the Company has entered into a lease that has not yet commenced related to a studio facility owned by an equity-method investee, for which construction has not yet been completed. The lease is for a term of 10.5 years, commencing upon completion of construction of the studio facility (currently expected to be in calendar year 2021), and includes an option to extend the term for an additional 5 years. The total minimum lease payments under this lease, as amended, are approximately $72.8 million.
Additionally, as of March 31, 2021, the Company has entered into a lease that has not yet commenced for office space for which construction has not yet been completed, also related to the studio facility described above. The lease is for a term of 10.5 years commencing upon completion of construction of the studio facility. The total minimum lease payments under this lease are approximately $11.7 million.
Under the accounting guidance in effect prior to April 1, 2019, the Company incurred rent expense of $27.0 million in the year ended March 31, 2019.