Supplement Condensed Consolidating Financial Information (Tables)

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	97		$	825		$	—		$	922
Trade receivables, net	—			19,186			391			—			19,577
Inventories	—			813			21			—			834
Prepaid expenses and other current assets	—			16,872			415			(5,487		)	11,800
Total current assets	—			36,968			1,652			(5,487		)	33,133
PROPERTY AND EQUIPMENT, NET:
Leasehold improvements	—			3,748			—			—			3,748
Furniture, fixtures and equipment	—			41,080			40			—			41,120
Less – accumulated depreciation	—			(33,946		)	(25		)	—			(33,971		)
Total property and equipment, net	—			10,882			15			—			10,897
OTHER ASSETS:
Deferred debt costs, net	4,560			—			—			—			4,560
Deferred rack costs, net	—			3,888			—			—			3,888
Investments in affiliates	545,140			(497		)	—			(543,224		)	1,419
Other long-term assets	57,794			2,830			—			(57,794		)	2,830
Due from affiliates	—			299,714			—			(299,714		)	—
Total other assets	607,494			305,935			—			(900,732		)	12,697
GOODWILL AND OTHER IDENTIFIED INTANGIBLE ASSETS:
Goodwill	—			149,488			4,510			—			153,998
Other identified intangibles, net	—			206,804			6,000			—			212,804
Total goodwill and other identified intangible assets	—			356,292			10,510			—			366,802
TOTAL ASSETS	$	607,494		$	710,077		$	12,177		$	(906,219	)	$	423,529

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Accounts payable
Accounts payable	$	—		$	9,762		$	25		$	—		$	9,787
Accrued expenses and other liabilities	—			24,062			5,319			—			29,381
Accrued interest	2,831			—			—			—			2,831
Deferred revenues	—			25,506			112			—			25,618
Total current liabilities	2,831			59,330			5,456			—			67,617
NON-CURRENT LIABILITIES:
Senior secured notes	308,306			—			—			—			308,306
Revolving credit facility	18,200			—			—			—			18,200
Other non-current liabilities	—			8,239			—			—			8,239
Deferred income taxes	—			99,105			(240		)	(63,281		)	35,584
Due to affiliates	295,574			—			4,140			(299,714		)	—
Total liabilities	624,911			166,674			9,356			(362,995		)	437,946
COMMITMENTS AND CONTINGENCIES
Redeemable noncontrolling interests	—			—			3,000			—			3,000
STOCKHOLDERS' (DEFICIT) EQUITY:
Total stockholders' (deficit) equity	(17,417		)	543,403			(179		)	(543,224		)	(17,417		)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$	607,494		$	710,077		$	12,177		$	(906,219	)	$	423,529

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 debt 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 THREE MONTHS ENDED DECEMBER 31, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
OPERATING REVENUES:
Circulation	$	—		$	38,082		$	109		$	—		$	38,191
Advertising	—			15,693			—			—			15,693
Other	—			904			356			—			1,260
Total operating revenues	—			54,679			465			—			55,144
OPERATING EXPENSES:
Editorial	—			5,276			204			—			5,480
Production	—			12,132			343			—			12,475
Distribution, circulation and other cost of sales	—			8,866			42			—			8,908
Selling, general and administrative	—			15,969			(70		)	—			15,899
Depreciation and amortization	—			6,510			3			—			6,513
Total operating expenses	—			48,753			522			—			49,275
OPERATING INCOME	—			5,926			(57		)	—			5,869
OTHER EXPENSES:
Interest expense	(9,169		)	(438		)	(1		)	—			(9,608		)
Amortization of deferred debt costs	(887		)	—			—			—			(887		)
Other expenses, net	—			—			—			—			—
Total other expense, net	(10,056		)	(438		)	(1		)	—			(10,495		)
(LOSS) INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES, AND EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	(10,056		)	5,488			(58		)	—			(4,626		)
PROVISION FOR INCOME TAXES	6,054			(8,510		)	118			—			(2,338		)
EQUITY (LOSSES) IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	13,795			(187		)	—			(13,608		)	—
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	(2,315		)	13,811			(176		)	(13,608		)	(2,288		)
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	—			—			—			—			—
NET INCOME (LOSS)	(2,315		)	13,811			(176		)	(13,608		)	(2,288		)
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			(27		)	—			(27		)
NET INCOME (LOSS) ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	(2,315	)	$	13,811		$	(203	)	$	(13,608	)	$	(2,315	)
	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
NET INCOME (LOSS)	$	(2,315	)	$	13,811		$	(176	)	$	(13,608	)	$	(2,288	)
Foreign currency translation adjustment	—			—			(37		)	—			(37		)
Comprehensive income (loss)	$	(2,315	)	$	13,811		$	(213	)	$	(13,608	)	$	(2,325	)
Less: comprehensive loss attributable to noncontrolling interests	—			—			(27		)	—			(27		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	(2,315	)	$	13,811		$	(240	)	$	(13,608	)	$	(2,352	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)

AND COMPREHENSIVE INCOME (LOSS)

FOR THE NINE MONTHS ENDED DECEMBER 31, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
OPERATING REVENUES:
Circulation	$	—		$	112,183		$	255		$	—		$	112,438
Advertising	—			49,578			—			—			49,578
Other	—			3,981			7,187			—			11,168
Total operating revenues	—			165,742			7,442			—			173,184
OPERATING EXPENSES:
Editorial	—			18,050			595			—			18,645
Production	—			38,279			3,977			—			42,256
Distribution, circulation and other cost of sales	—			26,451			131			—			26,582
Selling, general and administrative	—			45,413			540			—			45,953
Depreciation and amortization	—			19,848			10			—			19,858
Total operating expenses	—			148,041			5,253			—			153,294
OPERATING INCOME	—			17,701			2,189			—			19,890
OTHER EXPENSES:
Interest expense	(27,938		)	(1,321		)	(49		)	—			(29,308		)
Amortization of deferred debt costs	(2,603		)	—			—			—			(2,603		)
Other expenses, net	—			1			(40		)	—			(39		)
Total other expense, net	(30,541		)	(1,320		)	(89		)	—			(31,950		)
(LOSS) INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES, AND EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	(30,541		)	16,381			2,100			—			(12,060		)
PROVISION FOR INCOME TAXES	(33,687		)	744			301			—			(32,642		)
EQUITY (LOSSES) IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	16,423			(1,298		)	—			(15,125		)	—
NET INCOME (LOSS) FROM CONTINUING OPERATIONS	19,569			14,339			1,799			(15,125		)	20,582
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	—			—			—			—			—
NET INCOME (LOSS)	19,569			14,339			1,799			(15,125		)	20,582
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			(1,013		)	—			(1,013		)
NET INCOME (LOSS) ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	19,569		$	14,339		$	786		$	(15,125	)	$	19,569
	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
NET INCOME (LOSS)	$	19,569		$	14,339		$	1,799		$	(15,125	)	$	20,582
Foreign currency translation adjustment	—			—			(38		)	—			(38		)
Comprehensive income (loss)	19,569			14,339			1,761			(15,125		)	20,544
Less: comprehensive loss attributable to noncontrolling interests	—			—			(1,013		)	—			(1,013		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	19,569		$	14,339		$	748		$	(15,125	)	$	19,531

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)

AND COMPREHENSIVE INCOME (LOSS)

FOR THE THREE MONTHS ENDED DECEMBER 31, 2014

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
OPERATING REVENUES:
Circulation	$	—		$	43,099		$	883		$	—		$	43,982
Advertising	—			14,341			1,370			—			15,711
Other	—			327			125			—			452
Total operating revenues	—			57,767			2,378			—			60,145
OPERATING EXPENSES:
Editorial	—			5,885			308			—			6,193
Production	—			14,128			656			—			14,784
Distribution, circulation and other cost of sales	—			9,138			439			—			9,577
Selling, general and administrative	—			18,641			576			—			19,217
Depreciation and amortization	—			3,924			23			—			3,947
Total operating expenses	—			51,716			2,002			—			53,718
OPERATING INCOME	—			6,051			376			—			6,427
OTHER EXPENSES:
Interest expense	(11,463		)	(3		)	(2		)	—			(11,468		)
Amortization of deferred debt costs	(487		)	—			—			—			(487		)
Other income	—			3,479			—			—			3,479
Total other income (expenses), net	(11,950		)	3,476			(2		)	—			(8,476		)
(LOSS) INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES, AND EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	(11,950		)	9,527			374			—			(2,049		)
PROVISION FOR INCOME TAXES	—			(12,491		)	86			—			(12,405		)
EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	21,910			250			—			(22,160		)	—
NET LOSS FROM CONTINUING OPERATIONS	9,960			22,268			288			(22,160		)	10,356
LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	—			(403		)	—			—			(403		)
NET (LOSS) INCOME	9,960			21,865			288			(22,160		)	9,953
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			7			—			7
NET (LOSS) INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	9,960		$	21,865		$	295		$	(22,160	)	$	9,960
	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
NET (LOSS) INCOME	$	9,960		$	21,865		$	288		$	(22,160	)	$	9,953
Foreign currency translation adjustment	—			—			(63		)	—			(63		)
Comprehensive (loss) income	$	9,960		$	21,865		$	225		$	(22,160	)	$	9,890
Less: comprehensive income attributable to noncontrolling interests	—			—			7			—			7
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	9,960		$	21,865		$	232		$	(22,160	)	$	9,897

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)

AND COMPREHENSIVE INCOME (LOSS)

FOR THE NINE MONTHS ENDED DECEMBER 31, 2014

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
OPERATING REVENUES:
Circulation	$	—		$	123,385		$	3,618		$	—		$	127,003
Advertising	—			42,928			4,283			—			47,211
Other	—			3,637			7,104			—			10,741
Total operating revenues	—			169,950			15,005			—			184,955
OPERATING EXPENSES:
Editorial	—			19,937			1,240			—			21,177
Production	—			45,323			6,006			—			51,329
Distribution, circulation and other cost of sales	—			28,060			1,707			—			29,767
Selling, general and administrative	—			62,063			2,150			—			64,213
Depreciation and amortization	—			9,918			67			—			9,985
Impairment of goodwill and intangible assets	—			18,458			—			—			18,458
Total operating expenses	—			183,759			11,170			—			194,929
OPERATING INCOME	—			(13,809		)	3,835			—			(9,974		)
OTHER EXPENSES:
Interest expense	(39,203		)	(31		)	(33		)	—			(39,267		)
Amortization of deferred debt costs	(2,544		)	—			—			—			(2,544		)
Other income	—			3,778			—			—			3,778
Total other income (expenses), net	(41,747		)	3,747			(33		)	—			(38,033		)
(LOSS) INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES, AND EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	(41,747		)	(10,062		)	3,802			—			(48,007		)
PROVISION FOR INCOME TAXES	—			(17,858		)	306			—			(17,552		)
EQUITY IN EARNINGS OF CONSOLIDATED SUBSIDIARIES	9,677			985			—			(10,662		)	—
NET LOSS FROM CONTINUING OPERATIONS	(32,070		)	8,781			3,496			(10,662		)	(30,455		)
INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	—			(407		)	—			—			(407		)
NET (LOSS) INCOME	(32,070		)	8,374			3,496			(10,662		)	(30,862		)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			(1,208		)	—			(1,208		)
NET (LOSS) INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	(32,070	)	$	8,374		$	2,288		$	(10,662	)	$	(32,070	)
	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
NET (LOSS) INCOME	$	(32,070	)	$	8,374		$	3,496		$	(10,662	)	$	(30,862	)
Foreign currency translation adjustment	—			—			(111		)	—			(111		)
Comprehensive (loss) income	(32,070		)	8,374			3,385			(10,662		)	(30,973		)
Less: comprehensive income attributable to noncontrolling interests	—			—			(1,208		)	—			(1,208		)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO AMERICAN MEDIA, INC. AND SUBSIDIARIES	$	(32,070	)	$	8,374		$	2,177		$	(10,662	)	$	(32,181	)

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED DECEMBER 31, 2015

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
Cash Flows from Operating Activities:
Net cash provided by (used in) operating activities	$	(34,484	)	$	34,119		$	(437	)	$	—		$	(802	)
Cash Flows from Investing Activities:
Purchases of property and equipment	—			(500		)	—			—			(500		)
Purchase of intangible assets	—			(1,334		)	—			—			(1,334		)
Proceeds from sale of assets	—			24			—			—			24
Due from affiliates	—			(33,145		)	—			33,145			—
Other	—			—			—			—			—
Net cash provided by (used in) investing activities	—			(34,955		)	—			33,145			(1,810		)
Cash Flows from Financing Activities:
Proceeds from revolving credit facility	54,400			—			—			—			54,400
Repayment to revolving credit facility	(50,900		)	—			—			—			(50,900		)
Senior secured notes repurchases	(2,000		)	—			—			—			(2,000		)
Redemption premium payment	(118		)	—			—			—			(118		)
Payment of debt costs	(43		)	—			—			—			(43		)
Payments to noncontrolling interest holder of Olympia	—			—			(1,150		)	—			(1,150		)
Due to affiliates	33,145			—			—			(33,145		)	—
Net cash provided by (used in) financing activities	34,484			—			(1,150		)	(33,145		)	189
Effect of exchange rate changes on cash	—			(107		)	—			—			(107		)
Net increase (decrease) in cash and cash equivalents	—			(943		)	(1,587		)	—			(2,530		)
Cash and cash equivalents, beginning of period	—			1,040			2,412			—			3,452
Cash and cash equivalents, end of period	$	—		$	97		$	825		$	—		$	922

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED DECEMBER 31, 2014

(in thousands)



	Parent			Guarantors			Non Guarantors			Eliminations			Condensed Consolidated
Cash Flows from Operating Activities:
Net cash provided by (used in) operating activities	$	(40,216	)	$	42,358		$	1,573		$	—		$	3,715
Cash Flows from Investing Activities:
Purchases of property and equipment	—			(6,659		)	—			—			(6,659		)
Purchase of intangible assets	—			(2,520		)	—			—			(2,520		)
Proceeds from sale of assets	—			3,009			—			—			3,009
Distributions from affiliates	—			2,570			—			—			2,570
Due from affiliates	—			(38,833		)	—			38,833			—
Other	—			—			—			—			—
Net cash provided by (used in) investing activities	—			(42,433		)	—			38,833			(3,600		)
Cash Flows from Financing Activities:
Proceeds from revolving credit facility	57,800			—			—			—			57,800
Repayment to revolving credit facility	(59,200		)	—			—			—			(59,200		)
Proceeds from issuance of senior secured notes	12,500			—			—			—			12,500
Senior secured notes repurchases	(5,975		)	—			—			—			(5,975		)
Capital contribution	573			—			—			—			573
Costs incurred in restructuring	(4,315		)	—			—			—			(4,315		)
Payments to noncontrolling interest holder of Olympia	—			—			(1,202		)	—			(1,202		)
Due to affiliates	38,833			—			—			(38,833		)	—
Net cash provided by (used in) financing activities	40,216			—			(1,202		)	(38,833		)	181
Effect of exchange rate changes on cash	—			(248		)	—			—			(248		)
Net increase (decrease) in cash and cash equivalents	—			(323		)	371			—			48
Cash and cash equivalents, beginning of period	—			415			2,615			—			3,030
Cash and cash equivalents, end of period	$	—		$	92		$	2,986		$	—		$	3,078