Supplement Condensed Consolidating Financial Information (Tables)

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2016

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	102		$	1,284		$	—		$	1,386
Trade receivables, net	—			22,045			411			—			22,456
Inventories	—			1,323			20			—			1,343
Prepaid expenses and other current assets	—			14,329			128			(5,487		)	8,970
Total current assets	—			37,799			1,843			(5,487		)	34,155
PROPERTY AND EQUIPMENT, NET:
Leasehold improvements	—			3,732			—			—			3,732
Furniture, fixtures and equipment	—			21,428			40			—			21,468
Less – accumulated depreciation	—			(16,459		)	(29		)	—			(16,488		)
Total property and equipment, net	—			8,701			11			—			8,712
OTHER ASSETS:
Deferred financing costs, net	8,129			—			—			—			8,129
Deferred rack costs, net	—			3,284			—			—			3,284
Investments in affiliates	545,413			365			—			(544,056		)	1,722
Other long-term assets	53,434			2,623			—			(53,434		)	2,623
Due from affiliates	—			290,285			—			(290,285		)	—
Total other assets	606,976			296,557			—			(887,775		)	15,758
GOODWILL AND OTHER IDENTIFIED INTANGIBLE ASSETS:
Goodwill	—			149,488			4,510			—			153,998
Other identified intangibles, net	—			203,094			6,000			—			209,094
Total goodwill and other identified intangible assets	—			352,582			10,510			—			363,092
TOTAL ASSETS	$	606,976		$	695,639		$	12,364		$	(893,262	)	$	421,717

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
CURRENT LIABILITIES:
Accounts payable	$	—		$	10,582		$	108		$	—		$	10,690
Accrued expenses and other liabilities	—			20,178			(31		)	—			20,147
Accrued interest	9,426			—			—			—			9,426
Deferred revenues	—			25,767			843			—			26,610
Total current liabilities	9,426			56,527			920			—			66,873
NON-CURRENT LIABILITIES:
Senior secured notes	378,718			—			—			—			378,718
Revolving credit facility	15,200			—			—			—			15,200
Other non-current liabilities	—			7,035			—			—			7,035
Deferred income taxes	—			92,578			(245		)	(58,921		)	33,412
Due to affiliates	286,153			—			4,132			(290,285		)	—
Total liabilities	689,497			156,140			4,807			(349,206		)	501,238
COMMITMENTS AND CONTINGENCIES
Redeemable noncontrolling interests	—			—			3,000			—			3,000
STOCKHOLDERS' (DEFICIT) EQUITY:
Total stockholders' (deficit) equity	(82,521		)	539,499			4,557			(544,056		)	(82,521		)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$	606,976		$	695,639		$	12,364		$	(893,262	)	$	421,717

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	1,040		$	2,412		$	—		$	3,452
Trade receivables, net	—			38,058			1,354			—			39,412
Inventories	—			739			134			—			873
Prepaid expenses and other current assets	—			16,207			636			(5,487		)	11,356
Total current assets	—			56,044			4,536			(5,487		)	55,093
PROPERTY AND EQUIPMENT, NET:
Leasehold improvements	—			3,801			—			—			3,801
Furniture, fixtures and equipment	—			43,189			790			—			43,979
Less – accumulated depreciation	—			(29,465		)	(765		)	—			(30,230		)
Total property and equipment, net	—			17,525			25			—			17,550
OTHER ASSETS:
Deferred financing costs, net	6,383			—			—			—			6,383
Deferred rack costs, net	—			4,824			—			—			4,824
Investments in affiliates	587,126			224			—			(586,547		)	803
Other long-term assets	—			3,193			—			—			3,193
Due from affiliates	—			300,246			—			(300,246		)	—
Total other assets	593,509			308,487			—			(886,793		)	15,203
GOODWILL AND OTHER IDENTIFIED INTANGIBLE ASSETS:
Goodwill	—			149,488			4,510			—			153,998
Other identified intangibles, net	—			218,181			6,000			—			224,181
Total goodwill and other identified intangible assets	—			367,669			10,510			—			378,179
TOTAL ASSETS	$	593,509		$	749,725		$	15,071		$	(892,280	)	$	466,025
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
CURRENT LIABILITIES:
Accounts payable	$	—		$	15,434		$	347		$	—		$	15,781
Accrued expenses and other liabilities	—			104,580			5,393			(65,958		)	44,015
Accrued interest	10,075			—			—			—			10,075
Deferred revenues	—			25,718			1,016			—			26,734
Total current liabilities	10,075			145,732			6,756			(65,958		)	96,605
NON-CURRENT LIABILITIES:
Senior secured notes	309,569			—			—			—			309,569
Revolving credit facility	14,700			—			—			—			14,700
Other non-current liabilities	—			8,352			—			—			8,352
Deferred income taxes	—			10,250			26			60,471			70,747
Due to affiliates	296,113			—			4,133			(300,246		)	—
Total liabilities	630,457			164,334			10,915			(305,733		)	499,973
COMMITMENTS AND CONTINGENCIES
Redeemable noncontrolling interests	—			—			3,000			—			3,000
STOCKHOLDERS' (DEFICIT) EQUITY:
Total stockholders' (deficit) equity	(36,948		)	585,391			1,156			(586,547		)	(36,948		)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$	593,509		$	749,725		$	15,071		$	(892,280	)	$	466,025

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)

AND COMPREHENSIVE INCOME (LOSS)

FOR THE FISCAL YEAR ENDED MARCH 31, 2016

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
OPERATING REVENUES:
Circulation	$	—		$	142,537		$	310		$	—		$	142,847
Advertising	—			68,046			117			—			68,163
Other	—			4,926			7,105			—			12,031
Total operating revenues	—			215,509			7,532			—			223,041
OPERATING EXPENSES:
Production	—			50,357			3,939			—			54,296
Editorial	—			24,131			765			—			24,896
Distribution, circulation and other cost of sales	—			36,032			161			—			36,193
Selling, general and administrative	—			54,201			1,271			—			55,472
Depreciation and amortization	—			26,469			13			—			26,482
Total operating expenses	—			191,190			6,149			—			197,339
OPERATING INCOME	—			24,319			1,383			—			25,702
OTHER EXPENSES:
Interest expense	(39,599		)	(15		)	(48		)	—			(39,662		)
Amortization of deferred financing costs	(4,026		)	—			—			—			(4,026		)
Other expenses, net	—			(2,012		)	2,012			—			—
Total other expense, net	(43,625		)	(2,027		)	1,964			—			(43,688		)
(LOSS) INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES, AND EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	(43,625		)	22,292			3,347			—			(17,986		)
PROVISION (BENEFIT) FOR INCOME TAXES	(46,439		)	10,208			249			—			(35,982		)
EQUITY (LOSSES) IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	14,150			(22		)	—			(14,128		)	—
NET INCOME	16,964			12,062			3,098			(14,128		)	17,996
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			(1,032		)	—			(1,032		)
NET INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC AND SUBSIDIARIES	$	16,964		$	12,062		$	2,066		$	(14,128	)	$	16,964
	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
NET INCOME	$	16,964		$	12,062		$	3,098		$	(14,128	)	$	17,996
Foreign currency translation adjustment	—			—			(46		)	—			(46		)
Comprehensive income	16,964			12,062			3,052			(14,128		)	17,950
Less: comprehensive income attributable to noncontrolling interests	—			—			(1,032		)	—			(1,032		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	16,964		$	12,062		$	2,020		$	(14,128	)	$	16,918

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)

AND COMPREHENSIVE INCOME (LOSS)

FOR THE FISCAL YEAR ENDED MARCH 31, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
OPERATING REVENUES:
Circulation	$	—		$	161,464		$	4,735		$	—		$	166,199
Advertising	—			61,566			5,692			—			67,258
Other	—			4,598			7,125			—			11,723
Total operating revenues	—			227,628			17,552			—			245,180
OPERATING EXPENSES:
Production	—			59,329			6,759			—			66,088
Editorial	—			25,258			1,546			—			26,804
Distribution, circulation and other cost of sales	—			36,961			2,049			—			39,010
Selling, general and administrative	—			82,325			4,311			—			86,636
Depreciation and amortization	—			13,785			180			—			13,965
Impairment of goodwill and intangible assets	—			18,458			—			—			18,458
Total operating expenses	—			236,116			14,845			—			250,961
OPERATING INCOME (LOSS)	—			(8,488		)	2,707			—			(5,781		)
OTHER EXPENSES:
Interest expense	(50,772		)	(34		)	(41		)	—			(50,847		)
Amortization of deferred financing costs	(4,011		)	—			—			—			(4,011		)
Other expenses, net	—			3,710			(2		)	—			3,708
Total other expense, net	(54,783		)	3,676			(43		)	—			(51,150		)
(LOSS) INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES, AND EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	(54,783		)	(4,812		)	2,664			—			(56,931		)
(BENEFIT) PROVISION FOR INCOME TAXES	—			(15,712		)	23			—			(15,689		)
EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	27,656			185			—			(27,841		)	—
NET (LOSS) INCOME FROM CONTINUING OPERATIONS	(27,127		)	11,085			2,641			(27,841		)	(41,242		)
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	—			15,334			—			—			15,334
NET (LOSS) INCOME	(27,127		)	26,419			2,641			(27,841		)	(25,908		)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			(1,219		)	—			(1,219		)
NET (LOSS) INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC AND SUBSIDIARIES	$	(27,127	)	$	26,419		$	1,422		$	(27,841	)	$	(27,127	)
	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
NET (LOSS) INCOME	$	(27,127	)	$	26,419		$	2,641		$	(27,841	)	$	(25,908	)
Foreign currency translation adjustment	—			—			(161		)	—			(161		)
Comprehensive (loss) income	(27,127		)	26,419			2,480			(27,841		)	(26,069		)
Less: comprehensive income attributable to noncontrolling interests	—			—			(1,219		)	—			(1,219		)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	(27,127	)	$	26,419		$	1,261		$	(27,841	)	$	(27,288	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)

AND COMPREHENSIVE INCOME (LOSS)

FOR THE FISCAL YEAR ENDED MARCH 31, 2014

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
OPERATING REVENUES:
Circulation	$	—		$	182,575		$	5,038		$	—		$	187,613
Advertising	—			66,884			6,069			—			72,953
Other	—			20,489			6,291			—			26,780
Total operating revenues	—			269,948			17,398			—			287,346
OPERATING EXPENSES:
Production	—			69,872			5,792			—			75,664
Editorial	—			29,414			1,456			—			30,870
Distribution, circulation and other cost of sales	—			43,181			2,842			—			46,023
Selling, general and administrative	—			75,077			3,254			—			78,331
Depreciation and amortization	—			13,355			80			—			13,435
Impairment of goodwill and intangible assets	—			9,238			—			—			9,238
Total operating expenses	—			240,137			13,424			—			253,561
OPERATING INCOME	—			29,811			3,974			—			33,785
OTHER EXPENSES:
Interest expense	(58,372		)	17			—			—			(58,355		)
Amortization of deferred financing costs	(1,664		)	—			—			—			(1,664		)
Other expenses, net	—			(79		)	—			—			(79		)
Total other expense, net	(60,036		)	(62		)	—			—			(60,098		)
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES, AND EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	(60,036		)	29,749			3,974			—			(26,313		)
PROVISION FOR INCOME TAXES	25,296			4,879			484			—			30,659
EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	31,013			1,387			—			(32,400		)	—
NET (LOSS) INCOME FROM CONTINUING OPERATIONS	(54,319		)	26,257			3,490			(32,400		)	(56,972		)
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	—			3,701			—			—			3,701
NET (LOSS) INCOME	(54,319		)	29,958			3,490			(32,400		)	(53,271		)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			(1,048		)	—			(1,048		)
NET (LOSS) INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	(54,319	)	$	29,958		$	2,442		$	(32,400	)	$	(54,319	)
	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
NET (LOSS) INCOME	$	(54,319	)	$	29,958		$	3,490		$	(32,400	)	$	(53,271	)
Foreign currency translation adjustment	—			—			108			—			108
Comprehensive (loss) income	(54,319		)	29,958			3,598			(32,400		)	(53,163		)
Less: comprehensive income attributable to noncontrolling interests	—			—			(1,048		)	—			(1,048		)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	(54,319	)	$	29,958		$	2,550		$	(32,400	)	$	(54,211	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE FISCAL YEAR ENDED MARCH 31, 2016

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
Cash Flows from Operating Activities:
Net cash provided by (used in) operating activities	$	(35,061	)	$	38,526		$	22		$	—		$	3,487
Cash Flows from Investing Activities:
Purchases of property and equipment	—			(805		)	—			—			(805		)
Purchase of intangible assets	—			(1,894		)	—			—			(1,894		)
Due from affiliates	—			(36,479		)	—			36,479			—
Other	—			24			—			—			24
Net cash provided by (used in) investing activities	—			(39,154		)	—			36,479			(2,675		)
Cash Flows from Financing Activities:
Proceeds from revolving credit facility	72,700			—			—			—			72,700
Repayment to revolving credit facility	(72,200		)	—			—			—			(72,200		)
Proceeds from issuance of senior secured notes	7,020			—			—			—			7,020
Senior secured notes repurchases	(4,386		)	—			—			—			(4,386		)
Redemption premium payment	(192		)	—			—			—			(192		)
Debt financing costs	(4,360		)	—			—			—			(4,360		)
Payments to noncontrolling interest holder of Olympia	—			—			(1,150		)	—			(1,150		)
Due to affiliates	36,479			—			—			(36,479		)	—
Net cash provided by (used in) financing activities	35,061			—			(1,150		)	(36,479		)	(2,568		)
Effect of exchange rate changes on cash	—			(310		)	—			—			(310		)
Net decrease in cash and cash equivalents	—			(938		)	(1,128		)	—			(2,066		)
Cash and cash equivalents, beginning of period	—			1,040			2,412			—			3,452
Cash and cash equivalents, end of period	$	—		$	102		$	1,284		$	—		$	1,386

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE FISCAL YEAR ENDED MARCH 31, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities	$	(104,995	)	$	116,650		$	1,050		$	—		$	12,705
Cash Flows from Investing Activities:
Purchases of property and equipment	—			(7,176		)	—			—			(7,176		)
Purchase of intangible assets	—			(2,738		)	—			—			(2,738		)
Proceeds from sale of publications	63,000			—			—			—			63,000
Distribution from affiliates	—			2,570			—			—			2,570
Due from affiliates	—			(107,916		)	—			107,916			—
Other	—			9			—			—			9
Net cash used in investing activities	63,000			(115,251		)	—			107,916			55,665
Cash Flows from Financing Activities:
Proceeds from revolving credit facility	62,800			—			—			—			62,800
Repayment to revolving credit facility	(77,100		)	—			—			—			(77,100		)
Proceeds from issuance of senior secured notes	12,500			—			—			—			12,500
Senior secured notes repurchases	(56,100		)	—			—			—			(56,100		)
Capital contribution	573			—			—			—			573
Costs incurred in restructuring	(4,315		)	—			—			—			(4,315		)
Redemption premium payment	(2,206		)	—			—			—			(2,206		)
Debt financing costs	(2,073		)	—			—			—			(2,073		)
Payments to noncontrolling interest holder of Olympia	—			—			(1,253		)	—			(1,253		)
Due to affiliates	107,916			—			—			(107,916		)	—
Net cash provided by (used in) financing activities	41,995			—			(1,253		)	(107,916		)	(67,174		)
Effect of exchange rate changes on cash	—			(774		)	—			—			(774		)
Net increase (decrease) in cash and cash equivalents	—			625			(203		)	—			422
Cash and cash equivalents, beginning of period	—			415			2,615			—			3,030
Cash and cash equivalents, end of period	$	—		$	1,040		$	2,412		$	—		$	3,452

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE FISCAL YEAR ENDED MARCH 31, 2014

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
Cash Flows from Operating Activities:
Net cash (used in) provided by operating activities	$	(52,163	)	$	59,730		$	4,087		$	(1,860	)	$	9,794
Cash Flows from Investing Activities:
Purchases of property and equipment	—			(10,514		)	—			—			(10,514		)
Purchase of intangible assets	—			(5,615		)	—			—			(5,615		)
Investments in affiliates	—			(2,536		)	—			—			(2,536		)
Due from affiliates	—			(41,650		)	—			41,650			—
Other	—			145			(300		)	—			(155		)
Net cash used in investing activities	—			(60,170		)	(300		)	41,650			(18,820		)
Cash Flows from Financing Activities:
Proceeds from revolving credit facility	95,600			—			—			—			95,600
Repayments to revolving credit facility	(78,600		)	—			—			—			(78,600		)
Senior secured notes redemption	(2,325		)	—			—			—			(2,325		)
Redemption premium payment	(201		)	—			—			—			(201		)
Payments to noncontrolling interest holder of Olympia	—			—			(1,004		)	—			(1,004		)
Payments for redemption of Odyssey preferred stock	(3,961		)	—			—			—			(3,961		)
Due to affiliates	41,650			—			—			(41,650		)	—
Dividends paid to parent	—			—			(1,860		)	1,860			—
Net cash provided by (used in) financing activities	52,163			—			(2,864		)	(39,790		)	9,509
Effect of exchange rate changes on cash	—			189			—			—			189
Net (decrease) increase in cash and cash equivalents	—			(251		)	923			—			672
Cash and cash equivalents, beginning of period	—			666			1,692			—			2,358
Cash and cash equivalents, end of period	$	—		$	415		$	2,615		$	—		$	3,030