Additional Financial Information

9 Months Ended

Dec. 31, 2021

Additional Financial Information [Abstract]

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

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the unaudited condensed consolidated balance sheet to the total amounts reported in the unaudited condensed consolidated statement of cash flows at December 31, 2021. At December 31, 2021, 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 unaudited condensed consolidated balance sheet as of March 31, 2021.


	December 31, 2021
	(Amounts in millions)
Cash and cash equivalents	$	314.4
Restricted cash included in other current assets	4.9
Total cash, cash equivalents and restricted cash	$	319.3

Other Assets

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


	December 31, 2021		March 31, 2021
	(Amounts in millions)
Other current assets
Prepaid expenses and other	$	95.6	$	68.0
Cash consideration receivable for sale of Pantaya (see Note 2)	—		123.6
Product inventory	14.4		14.3
Tax credits receivable	79.3		68.4
	$	189.3	$	274.3
Other non-current assets
Prepaid expenses and other	$	20.6	$	25.8
Accounts receivable	47.1		49.4
Tax credits receivable	279.2		181.2
Operating lease right-of-use assets	143.8		127.0
Interest rate swap assets	15.1		50.8
	$	505.8	$	434.2

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 unaudited condensed 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 three and nine months ended December 31, 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 three and nine months ended December 31, 2021 and 2020:


	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
	(Amounts in millions)
Carrying value of receivables transferred and derecognized	$	336.2	$	353.2	$	1,083.9	$	1,008.3
Net cash proceeds received	334.2		351.5		1,077.6		1,004.3
Loss recorded related to transfers of receivables	2.1		1.7		6.2		3.9

At December 31, 2021, the outstanding amount of receivables derecognized from the Company's unaudited condensed consolidated balance sheets, but which the Company continues to service, related to the Company's individual agreements to monetize trade accounts receivable was $463.7 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 $52.0 million as of December 31, 2021 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 three and nine months ended December 31, 2021 and 2020:


	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
	(Amounts in millions)
Gross cash proceeds received for receivables transferred and derecognized	$	20.4	$	40.8	$	111.8	$	126.8
Less amounts from collections reinvested under revolving agreement	(12.1)		(32.5)		(76.0)		(107.4)
Proceeds from new transfers	8.3		8.3		35.8		19.4
Collections not reinvested and remitted or to be remitted	(10.8)		(11.5)		(44.4)		(25.8)
Net cash proceeds paid or to be paid(1)	$	(2.5)	$	(3.2)	$	(8.6)	$	(6.4)

Carrying value of receivables transferred and derecognized (2)	$	20.3	$	40.4	$	110.9	$	126.0
Obligations recorded	$	—	$	0.7	$	0.9	$	1.4
Loss (gain) recorded related to transfers of receivables	$	(0.1)	$	0.3	$	—	$	0.5

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(1)In addition, during the three and nine months ended December 31, 2021, 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 December 31, 2021, the outstanding amount of receivables derecognized from the Company's unaudited condensed consolidated balance sheet, but which the Company continues to service, related to the pooled monetization agreement was approximately $64.9 million (March 31, 2021 - $99.0 million).

Accumulated Other Comprehensive Loss

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


	Foreign currency translation adjustments		Net unrealized loss on cash flow hedges		Total
	(Amounts in millions)
March 31, 2021	$	(15.1)	$	(68.2)	$	(83.3)
Other comprehensive loss	(1.2)		(20.2)		(21.4)
Reclassifications to net loss(1)	—		36.4		36.4
December 31, 2021	$	(16.3)	$	(52.0)	$	(68.3)

March 31, 2020	$	(18.8)	$	(187.2)	$	(206.0)
Other comprehensive income (loss)	5.6		(5.8)		(0.2)
Reclassifications to net income(1)	—		36.1		36.1
December 31, 2020	$	(13.2)	$	(156.9)	$	(170.1)

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(1)Represents a gain of $0.6 million included in direct operating expense and a loss of $37.0 million included in interest expense on the unaudited condensed consolidated statement of operations in the nine months ended December 31, 2021 (nine months ended December 31, 2020 - gain of $0.3 million included in direct operating expense and loss of $36.4 million included in interest expense) (see Note 16).

Supplemental Cash Flow Information

Significant non-cash transactions during the nine months ended December 31, 2021 and 2020 include certain interest rate swap agreements, which are discussed in Note 16, "Derivative Instruments and Hedging Activities".

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


	Nine Months Ended
	December 31,
	2021		2020
	(Amounts in millions)
Non-cash investing activities:
Accrued equity-method investment	$	19.0	$	—
Decrease in finance lease right-of-use asset due to a reassessment event(1)	$	—	$	(42.0)


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

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(1)During the nine months ended December 31, 2020, 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.

Supplemental cash flow information related to leases was as follows:


	Nine Months Ended
	December 31,
		2021		2020
		(Amounts in millions)





Right-of-use assets obtained in exchange for new lease obligations:
Operating leases		$	54.3	$	14.2

Increase in right-of-use assets and lease liability due to a reassessment event(1):
Operating leases - increase in right-of-use assets		$	—	$	6.0
Operating leases - increase in lease liability		$	—	$	12.6

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