Additional Financial Information

12 Months Ended

Mar. 31, 2022

Additional Financial Information [Abstract]

The following tables present supplemental information related to the consolidated financial statements.

Cash, Cash Equivalents and Restricted Cash

Cash equivalents consist of investments that are readily convertible into cash. Cash equivalents are carried at cost, which approximates fair value. The Company classifies its cash equivalents within Level 1 of the fair value hierarchy because the Company uses quoted market prices to measure the fair value of these investments (see Note 10). The Company monitors concentrations of credit risk with respect to cash and cash equivalents by placing such balances with higher quality financial institutions or investing such amounts in liquid, short-term, highly-rated instruments or investment funds holding similar

instruments. As of March 31, 2022, the majority of the Company’s cash and cash equivalents were held in bank depository accounts.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet to the total amounts reported in the consolidated statement of cash flows at March 31, 2022. At March 31, 2022, restricted cash included in other current assets represents amounts related to required cash reserves for interest payments associated with the Production Tax Credit Facility and IP Credit Facility. There were no material amounts of restricted cash in the consolidated balance sheet as of March 31, 2021.


	March 31, 2022
	(Amounts in millions)
Cash and cash equivalents	$	371.2
Restricted cash included in other current assets	13.4
Total cash, cash equivalents and restricted cash	$	384.6

Accounts Receivable Monetization

Under the Company's accounts receivable monetization programs, the Company has entered into (1) individual agreements to monetize certain of its trade accounts receivable directly with third-party purchasers and (2) a revolving agreement to monetize designated pools of trade accounts receivable with various financial institutions, as further described below. Under these programs, the Company transfers receivables to purchasers in exchange for cash proceeds, and the Company continues to service the receivables for the purchasers. The Company accounts for the transfers of these receivables as a sale, removes (derecognizes) the carrying amount of the receivables from its balance sheets and classifies the proceeds received as cash flows from operating activities in the statements of cash flows. The Company records a loss on the sale of these receivables reflecting the net proceeds received (net of any obligations incurred), less the carrying amount of the receivables transferred. The loss is reflected in the "other expense" line item on the consolidated statements of operations. The Company receives fees for servicing the accounts receivable for the purchasers, which represent the fair value of the services and were immaterial for the years ended March 31, 2022, 2021 and 2020.

Individual Monetization Agreements. The Company enters into individual agreements to monetize trade accounts receivable. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the customers. The following table sets forth a summary of the receivables transferred under individual agreements or purchases during the years ended March 31, 2022, 2021 and 2020:


	Year Ended
	March 31,
	2022		2021		2020
	(Amounts in millions)

Carrying value of receivables transferred and derecognized	$	1,400.2	$	1,377.2	$	1,603.2
Net cash proceeds received	1,391.2		1,371.3		1,593.9
Loss recorded related to transfers of receivables	9.0		5.9		9.3

At March 31, 2022, the outstanding amount of receivables derecognized from the Company's consolidated balance sheets, but which the Company continues to service, related to the Company's individual agreements to monetize trade accounts receivable was $460.5 million (March 31, 2021 - $562.8 million).

Pooled Monetization Agreement. In December 2019, the Company entered into a revolving agreement, as amended in July 2021, to transfer up to $150.0 million of certain receivables to various financial institutions on a recurring basis in exchange for cash equal to the gross receivables transferred, which expires July 27, 2022. As customers pay their balances, the Company transfers additional receivables into the program. The transferred receivables are fully guaranteed by a bankruptcy-remote wholly-owned subsidiary of the Company, which holds additional receivables in the amount of $72.0 million as of March 31,

2022 that are pledged as collateral under this agreement. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the customers.

The following table sets forth a summary of the receivables transferred under the pooled monetization agreement during the years ended March 31, 2022, 2021 and 2020:


	Year Ended
	March 31,
	2022		2021		2020
	(Amounts in millions)

Gross cash proceeds received for receivables transferred and derecognized	$	155.5	$	173.1	$	192.6
Less amounts from collections reinvested under revolving agreement	(102.7)		(138.7)		(84.5)
Proceeds from new transfers	52.8		34.4		108.1
Collections not reinvested and remitted or to be remitted	(46.8)		(27.9)		(15.6)
Net cash proceeds received(1)	$	6.0	$	6.5	$	92.5

Carrying value of receivables transferred and derecognized (2)	$	154.5	$	172.0	$	191.9
Obligations recorded	$	2.9	$	1.9	$	2.5
Loss recorded related to transfers of receivables	$	1.9	$	0.8	$	1.7

___________________

(1)In addition, during the year ended March 31, 2022, the Company repurchased $25.5 million of receivables previously transferred, as separately agreed upon with the third-party purchasers, in order to monetize such receivables under the individual monetization program discussed above without being subject to the collateral requirements under the pooled monetization program.

(2)Receivables net of unamortized discounts on long-term, non-interest bearing receivables.

At March 31, 2022, the outstanding amount of receivables derecognized from the Company's consolidated balance sheet, but which the Company continues to service, related to the pooled monetization agreement was approximately $79.5 million (March 31, 2021 - $99.0 million).

Other Assets

The composition of the Company’s other assets is as follows as of March 31, 2022 and March 31, 2021:


	March 31, 2022		March 31, 2021
	(Amounts in millions)
Other current assets
Prepaid expenses and other	$	102.3	$	68.0
Cash consideration receivable for sale of Pantaya (see Note 2)	—		123.6
Product inventory(1)	14.1		14.3
Tax credits receivable	128.3		68.4
	$	244.7	$	274.3
Other non-current assets
Prepaid expenses and other(2)	$	19.8	$	25.8
Accounts receivable(2)	39.0		49.4
Tax credits receivable	316.1		181.2
Operating lease right-of-use assets	170.7		127.0
Interest rate swap assets	32.0		50.8
	$	577.6	$	434.2

_____________________

(1)Home entertainment product inventory consists of Packaged Media and is stated at the lower of cost or market value (first-in, first-out method). Costs of Packaged Media sales, including shipping and handling costs, are included in distribution and marketing expenses.

(2)Unamortized discounts on contract assets included in prepaid expenses and other were $0.5 million and $0.5 million at March 31, 2022 and 2021, and unamortized discounts on long-term, non-interest bearing receivables were $1.8 million and $2.4 million at March 31, 2022 and 2021, respectively.

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in the components of accumulated other comprehensive income (loss), net of tax:


	Foreign currency translation adjustments		Net unrealized gain (loss) on cash flow hedges		Total
	(Amounts in millions)
March 31, 2019	$	(18.2)	$	(62.1)	$	(80.3)

Other comprehensive loss	(0.6)		(137.8)		(138.4)
Reclassifications to net loss(1)	—		12.7		12.7
March 31, 2020	(18.8)		(187.2)		(206.0)

Other comprehensive income	3.7		70.9		74.6
Reclassifications to net loss(1)	—		48.1		48.1
March 31, 2021	(15.1)		(68.2)		(83.3)
Other comprehensive income (loss)	(4.6)		68.2		63.6
Reclassifications to net loss(1)	—		49.0		49.0
March 31, 2022	$	(19.7)	$	49.0	$	29.3

___________________

(1)Represents a loss of $0.2 million included in direct operating expense and a loss of $48.8 million included in interest expense on the consolidated statement of operations in the year ended March 31, 2022 (2021 - gain of $0.2 million included in direct operating expense and loss of $48.3 million included in interest expense; 2020 - gain of $1.6 million included in direct operating expense and loss of $14.3 million included in interest expense) (see Note 18).

Supplemental Cash Flow Information

Interest paid during the fiscal year ended March 31, 2022 amounted to $135.0 million (2021 — $149.7 million; 2020 — $173.8 million).

Income taxes paid (refunded) during the fiscal year ended March 31, 2022 amounted to net tax paid of $16.9 million (2021 — net tax refunds received of $54.0 million; 2020 — net tax refunds received of $5.3 million).

Significant non-cash transactions during the fiscal years ended March 31, 2022 include certain interest rate swap agreements, which are discussed in Note 18, "Financial Instruments".

The supplemental schedule of non-cash investing and financing activities is presented below:


	Year Ended March 31,
	2022		2021		2020
	(Amounts in millions)
Non-cash investing activities:
Accrued equity method investment	$	19.0	$	—	$	—
Cash consideration receivable for sale of Pantaya (see Note 2)	$	—	$	123.6	$	—
Decrease in finance lease right-of-use asset due to a reassessment event(1)	n/a		$	(42.0)	n/a


Non-cash financing activities:
Decrease in finance lease liability due to a reassessment event(1)	n/a		$	(48.6)	n/a

______________

(1)During the year ended March 31, 2021, the Company reassessed the lease term of the Starz commercial building, which resulted in a change in classification of this lease from a finance lease to an operating lease (see Note 9).

Supplemental cash flow information related to leases was as follows:


	Year Ended
	March 31,
		2022		2021		2020
		(Amounts in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	57.0	$	48.8	$	37.1
Operating cash flows for finance leases		$	—	$	1.6	$	3.4
Financing cash flows for finance leases		$	—	$	2.6	$	3.0

Right-of-use assets obtained in exchange for new lease obligations:
Operating leases		$	67.8	$	25.0	$	8.3

Increase in right-of-use assets and lease liability due to a reassessment event:
Operating leases - increase in right-of-use assets		$	27.5	$	6.0	$	—
Operating leases - increase in lease liability		$	27.5	$	12.6	$	—