XML 46 R27.htm IDEA: XBRL DOCUMENT
v3.23.1

Additional Financial Information | 12 Months Ended
--- | ---
Mar. 31, 2023
Additional Financial Information [Abstract] |
Additional Financial Information | Additional Financial Information 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, 2023, 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, 2023. At March 31, 2023, restricted cash included in other current assets represents primarily amounts related to required cash reserves for interest payments associated with the Production Tax Credit Facility, IP Credit Facility and Backlog Facility.
|  | March 31, 2023 |  | March 31, 2022
|  | (Amounts in millions)
Cash and cash equivalents |  | $ | 272.1 |  |  | $ | 371.2 |
Restricted cash included in other current assets |  | 27.9 |  |  | 13.4 |
Restricted cash included in other non-current assets |  | 13.0 |  |  | — |
Total cash, cash equivalents and restricted cash |  | $ | 313.0 |  |  | $ | 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, 2023, 2022 and 2021. 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, 2023, 2022 and 2021:
| Year Ended
| March 31,
| 2023 |  | 2022 |  | 2021
| (Amounts in millions)
Carrying value of receivables transferred and derecognized | $ | 1,405.9 |  |  | $ | 1,400.2 |  |  | $ | 1,377.2 |
Net cash proceeds received | 1,382.7 |  |  | 1,391.2 |  |  | 1,371.3 |
Loss recorded related to transfers of receivables | 23.2 |  |  | 9.0 |  |  | 5.9 |
At March 31, 2023, 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 $520.4 million (March 31, 2022 - $460.5 million). Pooled Monetization Agreement. In December 2019, the Company entered into a revolving agreement, as amended in September 2022, 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 31, 2023. 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 $61.8 million as of March 31, 2023 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, 2023, 2022 and 2021:
| Year Ended
| March 31,
| 2023 |  | 2022 |  | 2021
| (Amounts in millions)
Gross cash proceeds received for receivables transferred and derecognized | $ | 167.0 |  |  | $ | 155.5 |  |  | $ | 173.1 |
Less amounts from collections reinvested under revolving agreement | (94.3) |  |  | (102.7) |  |  | (138.7) |
Proceeds from new transfers | 72.7 |  |  | 52.8 |  |  | 34.4 |
Collections not reinvested and remitted or to be remitted | (66.6) |  |  | (46.8) |  |  | (27.9) |
Net cash proceeds received (paid or to be paid)(1) | $ | 6.1 |  |  | $ | 6.0 |  |  | $ | 6.5 |
Carrying value of receivables transferred and derecognized (2) | $ | 164.8 |  |  | $ | 154.5 |  |  | $ | 172.0 |
Obligations recorded | $ | 5.9 |  |  | $ | 2.9 |  |  | $ | 1.9 |
Loss recorded related to transfers of receivables | $ | 3.7 |  |  | $ | 1.9 |  |  | $ | 0.8 |
___________________ (1)In addition, during the years ended March 31, 2023 and 2022, the Company repurchased $27.4 million and $25.5 million, respectively, 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, 2023, 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 $52.3 million (March 31, 2022 - $79.5 million). Other Assets The composition of the Company’s other assets is as follows as of March 31, 2023 and March 31, 2022:
| March 31, 2023 |  | March 31, 2022
| (Amounts in millions)
Other current assets |  |  |
Prepaid expenses and other(1) | $ | 43.3 |  |  | $ | 62.5 |
Restricted cash | 27.9 |  |  | 13.4 |
Contract assets | 63.5 |  |  | 40.5 |
Tax credits receivable | 129.5 |  |  | 128.3 |
| $ | 264.2 |  |  | $ | 244.7 |
Other non-current assets |  |  |
Prepaid expenses and other | $ | 8.4 |  |  | $ | 10.5 |
Restricted cash | 13.0 |  |  | — |
Accounts receivable(2) | 37.8 |  |  | 39.0 |
Contract assets(2) | 5.1 |  |  | 9.3 |
Tax credits receivable | 341.7 |  |  | 316.1 |
Operating lease right-of-use assets | 169.0 |  |  | 170.7 |
Interest rate swap assets | 41.1 |  |  | 32.0 |
| $ | 616.1 |  |  | $ | 577.6 |
_____________________ (1)Includes home entertainment product inventory which 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 long-term, non-interest bearing receivables were $3.5 million and $1.8 million at March 31, 2023 and 2022, respectively, and unamortized discounts on contract assets were $0.5 million and $0.5 million at March 31, 2023 and 2022. Content related payables Content related payables include minimum guarantees and accrued licensed program rights obligations, which represent amounts payable for film or television rights that the Company has acquired or licensed. Other Accrued Liabilities Other accrued liabilities include employee related liabilities (such as accrued bonuses and salaries and wages) of $128.7 million and $73.1 million at March 31, 2023 and 2022, respectively. Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in the components of accumulated other comprehensive income (loss), net of tax. During the years ended March 31, 2023, 2022 and 2021, there was no income tax expense or benefit reflected in other comprehensive income (loss) due to the income tax impact being offset by changes in the Company’s deferred tax valuation allowance.
| Foreign currency translation adjustments |  |  |  | Net unrealized gain (loss) on cash flow hedges |  | Total
| (Amounts in millions)
March 31, 2020 | $ | (18.8) |  |  |  |  | $ | (187.2) |  |  | $ | (206.0) |
Other comprehensive loss | 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 | (4.6) |  |  |  |  | 68.2 |  |  | 63.6 |
Reclassifications to net loss(1) | — |  |  |  |  | 49.0 |  |  | 49.0 |
March 31, 2022 | (19.7) |  |  |  |  | 49.0 |  |  | 29.3 |
Other comprehensive income (loss) | (1.9) |  |  |  |  | 82.8 |  |  | 80.9 |
Reclassifications to net loss(1) | — |  |  |  |  | 10.7 |  |  | 10.7 |
March 31, 2023 | $ | (21.6) |  |  |  |  | $ | 142.5 |  |  | $ | 120.9 |
___________________ (1)Represents a loss of $0.3 million included in direct operating expense and a loss of $10.4 million included in interest expense on the consolidated statement of operations in the year ended March 31, 2023 (2022 - loss of $0.2 million included in direct operating expense and loss of $48.8 million included in interest expense; 2021 - gain of $0.2 million included in direct operating expense and loss of $48.3 million included in interest expense) (see Note 18). Supplemental Cash Flow Information Interest paid during the fiscal year ended March 31, 2023 amounted to $196.7 million (2022 — $135.0 million; 2021 — $149.7 million). Income taxes paid (refunded) during the fiscal year ended March 31, 2023 amounted to net tax paid of $29.1 million (2022 — net tax paid of $16.9 million; 2021 — net tax refunds received of $54.0 million). Significant non-cash transactions during the fiscal years ended March 31, 2023, 2022 and 2021 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,
| 2023 |  | 2022 |  | 2021
| (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 |  | n/a |  | $ | (42.0)
Non-cash financing activities: |  |  |  |  |
Decrease in finance lease liability due to a reassessment event(1) | n/a |  | n/a |  | $ | (48.6)
______________ (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. Supplemental cash flow information related to leases was as follows:
|  |  | Year Ended
|  |  | March 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
|  |  |  |  | (Amounts in millions)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |  |
Operating cash flows for operating leases |  |  |  |  | $ | 42.3 |  |  | $ | 57.0 |  |  | $ | 48.8 |
Operating cash flows for finance leases |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 1.6 |
Financing cash flows for finance leases |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 2.6 |
Right-of-use assets obtained in exchange for new lease obligations: |  |  |  |  |  |  |  |  |
Operating leases |  |  |  |  | $ | 12.4 |  |  | $ | 67.8 |  |  | $ | 25.0 |
Increase in right-of-use assets and lease liability due to a reassessment event: |  |  |  |  |  |  |  |  |
Operating leases - increase in right-of-use assets |  |  |  |  | $ | 33.0 |  |  | $ | 27.5 |  |  | $ | 6.0 |
Operating leases - increase in lease liability |  |  |  |  | $ | 33.0 |  |  | $ | 27.5 |  |  | $ | 12.6 |

X
- Definition Additional Financial Information [Abstract] + References No definition available. + Details
Name: | lgfa_AdditionalFinancialInformationAbstract
Namespace Prefix: | lgfa_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosures of supplemental information, including descriptions and amounts, related to the balance sheet, income statement, and/or cash flow statement. + References No definition available. + Details
Name: | us-gaap_AdditionalFinancialInformationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration