2 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
−Removed: September 30,
2021 March 31,
38 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
13 unchanged sentences
Gain (loss) on investments ( 0.2 ) — 1.2 0.3
−Removed: Equity interests income (loss) 0.4 ( 1.9 ) 1.1 ( 4.5 )
+Added: Equity interests loss ( 2.5 ) ( 0.7 ) ( 1.4 ) ( 5.1 )
Income (loss) before income taxes ( 39.4 ) ( 10.2 ) ( 75.8 ) 14.0
−Removed: Income tax benefit (provision) ( 5.6 ) 1.5 ( 12.1 ) 0.2
+Added: Income tax provision ( 9.5 ) ( 7.0 ) ( 21.6 ) ( 6.7 )
Net income (loss) ( 48.9 ) ( 17.2 ) ( 97.4 ) 7.3
12 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
2 unchanged sentences
Foreign currency translation adjustments, net of tax ( 0.2 ) 4.8 ( 1.2 ) 5.6
−Removed: Net unrealized gain (loss) on cash flow hedges, net of tax 19.0 6.7 ( 4.9 ) ( 0.3 )
+Added: Net unrealized gain on cash flow hedges, net of tax 21.1 30.6 16.2 30.3
Comprehensive income (loss) ( 28.0 ) 18.2 ( 82.4 ) 43.2
11 unchanged sentences
(Amounts in millions)
−Removed: Balance at June 30, 2021 83.0 $ 664.9 139.6 $ 2,318.6 $ ( 139.1 ) $ ( 107.2 ) $ 2,737.2 $ 2.2 $ 2,739.4
+Added: Balance at September 30, 2021 83.1 $ 665.9 141.6 $ 2,314.3 $ ( 143.0 ) $ ( 89.2 ) $ 2,748.0 $ 2.4 $ 2,750.4
Exercise of stock options — — 0.1 0.7 — — 0.7 — 0.7
Share-based compensation, net of share cancellations for taxes — 1.1 0.1 19.9 — — 21.0 — 21.0
+Added: Issuance of common shares — 0.1 — 0.1 — — 0.2 — 0.2
Noncontrolling interests — — — — — — — ( 1.1 ) ( 1.1 )
−Removed: Net income — — — — 7.5 — 7.5 0.1 7.6
+Added: Net income (loss) — — — — ( 45.6 ) — ( 45.6 ) 0.5 ( 45.1 )
Other comprehensive income — — — — — 20.9 20.9 — 20.9
Redeemable noncontrolling interests adjustments to redemption value — — — — ( 11.6 ) — ( 11.6 ) — ( 11.6 )
+Added: Balance at December 31, 2021 83.1 $ 667.1 141.8 $ 2,335.0 $ ( 200.2 ) $ ( 68.3 ) $ 2,733.6 $ 1.8 $ 2,735.4
Balance at September 30, 2020 82.9 $ 660.8 137.6 $ 2,254.4 $ 2.4 $ ( 205.5 ) $ 2,712.1 $ 2.2 $ 2,714.3
−Removed: Balance at June 30, 2020 82.9 $ 659.3 136.9 $ 2,232.4 $ 28.3 $ ( 212.6 ) $ 2,707.4 $ 2.1 $ 2,709.5
Share-based compensation, net of share cancellations for taxes 0.1 1.2 0.3 17.5 — — 18.7 — 18.7
−Removed: Net income (loss) — — — — ( 18.4 ) — ( 18.4 ) 0.1 ( 18.3 )
+Added: Issuance of common shares — 0.1 — 0.1 — — 0.2 — 0.2
+Added: Noncontrolling interests — — — — — — — ( 0.2 ) ( 0.2 )
+Added: Net loss — — — — ( 13.9 ) — ( 13.9 ) ( 0.1 ) ( 14.0 )
Other comprehensive income — — — — — 35.4 35.4 — 35.4
Redeemable noncontrolling interests adjustments to redemption value — — — — ( 7.3 ) — ( 7.3 ) — ( 7.3 )
−Removed: Balance at September 30, 2020 82.9 $ 660.8 137.6 $ 2,254.4 $ 2.4 $ ( 205.5 ) $ 2,712.1 $ 2.2 $ 2,714.3
+Added: Balance at December 31, 2020 83.0 $ 662.1 137.9 $ 2,272.0 $ ( 18.8 ) $ ( 170.1 ) $ 2,745.2 $ 1.9 $ 2,747.1
_____________________
2 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
−Removed: Six Months Ended
+Added: Nine Months Ended
Class A Voting Class B Non-Voting Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive Loss Lions Gate Entertainment Corp.
8 unchanged sentences
Noncontrolling interests — — — — — — — ( 0.3 ) ( 0.3 )
−Removed: Net loss — — — — ( 37.9 ) — ( 37.9 ) — ( 37.9 )
−Removed: Other comprehensive loss — — — — — ( 5.9 ) ( 5.9 ) — ( 5.9 )
+Added: Net income (loss) — — — — ( 83.5 ) — ( 83.5 ) 0.5 ( 83.0 )
+Added: Other comprehensive income — — — — — 15.0 15.0 — 15.0
Redeemable noncontrolling interests adjustments to redemption value — — — — ( 33.8 ) — ( 33.8 ) — ( 33.8 )
−Removed: Balance at September 30, 2021 83.1 $ 665.9 141.6 $ 2,314.3 $ ( 143.0 ) $ ( 89.2 ) $ 2,748.0 $ 2.4 $ 2,750.4
+Added: Balance at December 31, 2021 83.1 $ 667.1 141.8 $ 2,335.0 $ ( 200.2 ) $ ( 68.3 ) $ 2,733.6 $ 1.8 $ 2,735.4
Balance at March 31, 2020 83.0 $ 659.2 136.4 $ 2,221.7 $ ( 16.9 ) $ ( 206.0 ) $ 2,658.0 $ 2.0 $ 2,660.0
6 unchanged sentences
Redeemable noncontrolling interests adjustments to redemption value — — — — ( 20.7 ) — ( 20.7 ) — ( 20.7 )
−Removed: Balance at September 30, 2020 82.9 $ 660.8 137.6 $ 2,254.4 $ 2.4 $ ( 205.5 ) $ 2,712.1 $ 2.2 $ 2,714.3
+Added: Balance at December 31, 2020 83.0 $ 662.1 137.9 $ 2,272.0 $ ( 18.8 ) $ ( 170.1 ) $ 2,745.2 $ 1.9 $ 2,747.1
_____________________
3 unchanged sentences
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
−Removed: Six Months Ended
−Removed: September 30,
+Added: Nine Months Ended
(Amounts in millions)
8 unchanged sentences
Loss on extinguishment of debt 28.2 —
−Removed: Equity interests (income) loss ( 1.1 ) 4.5
−Removed: Loss (gain) on investments ( 1.5 ) ( 0.4 )
+Added: Equity interests loss 1.4 5.1
+Added: Gain on investments ( 1.2 ) ( 0.3 )
Deferred income taxes 2.6 —
12 unchanged sentences
Acquisition of assets (film library and related assets) ( 161.4 ) —
+Added: Increase in loans receivable ( 4.3 ) —
Capital expenditures ( 22.2 ) ( 25.8 )
6 unchanged sentences
IP Credit Facility and other financing advances, net of debt issuance costs 211.6 —
+Added: IP Credit Facility and other financing repayments ( 80.3 ) —
Interest rate swap settlement payments ( 21.5 ) ( 15.4 )
3 unchanged sentences
Tax withholding required on equity awards ( 34.7 ) ( 7.0 )
−Removed: Net Cash Flows Provided By (Used In) Financing Activities 315.9 ( 48.5 )
+Added: Net Cash Flows Provided By Financing Activities 357.7 89.0
Net Change In Cash, Cash Equivalents and Restricted Cash ( 207.2 ) 227.4
15 unchanged sentences
In the opinion of the Company’s management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these unaudited condensed consolidated financial statements.
−Removed: Operating results for the three and six months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2022.
+Added: Operating results for the three and nine months ended December 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2022.
The balance sheet at March 31, 2021 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S.
25 unchanged sentences
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: Accounting for Revenue Contracts Acquired in a Business Combination:
+Added: In October 2021, the FASB issued guidance which requires entities to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination in accordance with Accounting Standards Codification Topic 606.
+Added: The Company adopted this guidance on October 1, 2021 and is applying its provisions prospectively, with no material impact to the Company's consolidated financial statements.
+Added: Accounting Guidance Not Yet Adopted
+Added: Government Assistance:
+Added: In November 2021, the FASB issued guidance which requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model.
+Added: This guidance is effective for the Company's fiscal year beginning April 1, 2022, with early adoption permitted.
+Added: The Company does not expect that the adoption of this guidance will have a material effect on its consolidated financial statements.
Acquisitions and Dispositions
10 unchanged sentences
This gain amount was net of $ 69.0 million of goodwill allocated from the Media Networks segment as required under the applicable accounting guidance.
+Added: LIONS GATE ENTERTAINMENT CORP.
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Investment in Films and Television Programs and Licensed Program Rights
Total investment in films and television programs and licensed program rights by predominant monetization strategy is as follows:
−Removed: September 30,
2021 March 31,
15 unchanged sentences
Investment in films and television programs and licensed program rights, net $ 2,985.4 $ 2,222.7
−Removed: At September 30, 2021, acquired film and television libraries have remaining unamortized costs of $ 157.5 million, which are monetized individually and are being amortized using the individual-film-forecast method over a remaining period of approximately 19.7 years (March 31, 2021 - unamortized costs of $ 18.3 million).
−Removed: Amortization of investment in film and television programs and licensed program rights by predominant monetization strategy is as follows for the three and six months ended September 30, 2021 and 2020, and was included in direct operating expense in the unaudited condensed consolidated statements of operations:
−Removed: LIONS GATE ENTERTAINMENT CORP.
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: At December 31, 2021, acquired film and television libraries have remaining unamortized costs of $ 155.4 million, which are monetized individually and are being amortized using the individual-film-forecast method over a remaining period of approximately 19.4 years (March 31, 2021 - unamortized costs of $ 18.3 million).
+Added: Amortization of investment in film and television programs and licensed program rights by predominant monetization strategy is as follows for the three and nine months ended December 31, 2021 and 2020, and was included in direct operating expense in the unaudited condensed consolidated statements of operations:
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
5 unchanged sentences
$ 388.6 $ 322.2 $ 1,118.7 $ 853.6
−Removed: Investment in films and television programs and licensed program rights includes write-downs to fair value, which are included in direct operating expense on the unaudited condensed consolidated statements of operations, and represented the following amounts by segment for the three and six months ended September 30, 2021 and 2020:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: LIONS GATE ENTERTAINMENT CORP.
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: Investment in films and television programs and licensed program rights includes write-downs to fair value, which are included in direct operating expense on the unaudited condensed consolidated statements of operations, and represented the following amounts by segment for the three and nine months ended December 31, 2021 and 2020:
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
6 unchanged sentences
________________________
−Removed: ________________________
−Removed: (1) Impairments not included in segment operating results in the three and six months ended September 30, 2020 represent a charge due to changes in performance expectations resulting from circumstances associated with the COVID-19 global pandemic.
+Added: (1) Impairments not included in segment operating results in the nine months ended December 31, 2020 represent a charge due to changes in performance expectations resulting from circumstances associated with the COVID-19 global pandemic.
The Company's investments consisted of the following:
−Removed: September 30,
2021 March 31,
12 unchanged sentences
Pantelion Films is a joint venture with Videocine, an affiliate of Televisa, which produces, acquires and distributes a slate of English and Spanish language feature films that target Hispanic moviegoers in the U.S.
−Removed: LIONS GATE ENTERTAINMENT CORP.
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Atom Tickets.
4 unchanged sentences
In addition to the equity method investments discussed above, the Company holds ownership interests in other immaterial equity method investees.
+Added: LIONS GATE ENTERTAINMENT CORP.
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Summarized Financial Information.
Summarized financial information for the Company's equity method investees on an aggregate basis is set forth below:
−Removed: September 30,
2021 March 31,
4 unchanged sentences
Non-current liabilities $ 59.8 $ 91.7
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
5 unchanged sentences
The following table summarizes the components of the gain (loss) on investments:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
1 unchanged sentence
Unrealized gains (losses) on equity securities $ ( 0.9 ) $ 0.7 $ ( 1.7 ) $ 1.4
−Removed: Impairments of other investments (1)
+Added: Impairments of equity method investments and other investments (1)
— ( 0.7 ) — ( 5.7 )
2 unchanged sentences
________________________
−Removed: (1) Impairments of other investments represents impairments of equity securities without readily determinable fair values that were written down to their estimated fair value.
+Added: (1) In the nine months ended December 31, 2020, amounts include impairments of $ 5.0 million on equity securities without readily determinable fair values that were written down to their estimated fair value.
LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Total debt of the Company, excluding film related and other obligations, was as follows as of September 30, 2021 and March 31, 2021:
−Removed: September 30,
+Added: Total debt of the Company, excluding film related and other obligations, was as follows as of December 31, 2021 and March 31, 2021:
2021 March 31,
19 unchanged sentences
Credit Agreement Amendment.
−Removed: On April 6, 2021, the Company amended its credit and guarantee agreement dated December 8, 2016, as amended (the "Credit Agreement") to, among other things, extend the maturity (the "Extension") of a portion of its revolving credit commitments, amounting to $ 1.25 billion (the "2026 Revolving Credit Facility"), and a portion of its outstanding term A loans, amounting to $ 444.9 million (the "2026 Term Loan A"), to April 6, 2026, and make certain other changes to the covenants and other provisions therein.
−Removed: After giving effect to the Extension, $ 250.0 million of revolving credit commitments (the "2023 Revolving Credit Facility and together with the 2026 Revolving Credit Facility, the "Revolving Credit Facility") and $ 215.1 million of term A loans (the "2023 Term Loan A", and together with the 2026 Term Loan A, the "Term Loan A") remained outstanding with a maturity of March 22, 2023.
+Added: On April 6, 2021, the Company amended its credit and guarantee agreement dated December 8, 2016, as amended (the "Credit Agreement") to, among other things, extend the maturity (the "Extension") of a portion of its revolving credit commitments, amounting to $ 1.25 billion, and a portion of its outstanding term A loans, amounting to $ 444.9 million (the "2026 Term Loan A"), to April 6, 2026, and make certain other changes to the covenants and other provisions therein.
+Added: After giving effect to the Extension, $ 250.0 million of revolving credit commitments and $ 215.1 million of term A loans (the "2023 Term Loan A", and together with the 2026 Term Loan A, the "Term Loan A") remained outstanding with a maturity of March 22, 2023.
+Added: Termination of a Portion of Revolving Credit Facility Commitments.
+Added: On November 2, 2021, the Company terminated its revolving credit commitments with a maturity of March 22, 2023, amounting to $ 250.0 million remaining after giving effect to the Extension (the "Termination").
+Added: After giving effect to the Termination, the Company's remaining revolving credit commitments under its Credit Agreement amounted to $ 1.25 billion with a maturity of April 6, 2026 (the "Revolving Credit Facility").
Term Loan B Repurchases.
−Removed: During the three months ended September 30, 2021, the Company completed a series of repurchases of the Term Loan B and, in aggregate, paid $ 44.2 million to repurchase $ 44.5 million principal amount of the Term Loan B (six months ended September 30, 2021 - in aggregate paid $ 95.3 million to repurchase $ 96.0 million principal amount of the Term Loan B).
+Added: During the nine months ended December 31, 2021, the Company completed a series of repurchases of the term B loans due March 24, 2025 ("Term Loan B") and, in aggregate, paid $ 95.3 million to repurchase $ 96.0 million principal amount of the Term Loan B ( none in the three months ended December 31, 2021).
See the Loss on Extinguishment of Debt section further below for a description of the accounting for these transactions.
1 unchanged sentence
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Termination of a Portion of Revolving Credit Facility Commitments.
−Removed: Subsequent to September 30, 2021, in November 2021, the Company terminated its revolving credit commitments under its 2023 Revolving Credit Facility, amounting to $ 250.0 million (the "Termination").
−Removed: After giving effect to the Termination, the Company's remaining revolving credit commitments under its Credit Agreement amounted to $ 1.25 billion under the 2026 Revolving Credit Facility (see Note 18).
Senior Credit Facilities (Revolving Credit Facility, Term Loan A and Term Loan B)
Revolving Credit Facility Availability of Funds & Commitment Fee.
−Removed: As of September 30, 2021, the Revolving Credit Facility provides for borrowings and letters of credit up to an aggregate of $ 1.5 billion, and at September 30, 2021 there was $ 1.5 billion available.
+Added: The Revolving Credit Facility provides for borrowings and letters of credit up to an aggregate of $ 1.25 billion, and at December 31, 2021 there was $ 1.25 billion available.
However, borrowing levels are subject to certain financial covenants as discussed below.
−Removed: There were no letters of credit outstanding at September 30, 2021.
+Added: There were no letters of credit outstanding at December 31, 2021.
The Company is required to pay a quarterly commitment fee on the Revolving Credit Facility of 0.250 % to 0.375 % per annum, depending on the achievement of certain leverage ratios, as defined in the Credit Agreement, on the total Revolving Credit Facility of $ 1.25 billion less the amount drawn.
1 unchanged sentence
• Revolving Credit Facility:
−Removed: As of September 30, 2021, a portion of the revolving credit commitments, amounting to $ 1.25 billion, matures April 6, 2026, and a portion of the revolving credit commitments, amounting to $ 250.0 million, matures March 22, 2023.
−Removed: See Termination of a Portion of Revolving Credit Facility Commitments section above and Note 18 - Subsequent Events.
+Added: April 6, 2026.
• Term Loan A:
7 unchanged sentences
The Revolving Credit Facility and Term Loan A bear interest at a rate per annum equal to LIBOR plus 1.75 % (or an alternative base rate plus 0.75 %) margin, with a LIBOR floor of zero .
−Removed: The margin is subject to potential increases of up to 50 basis points ( two ( 2 ) increases of 25 basis points each) upon certain increases to net first lien leverage ratios, as defined in the Credit Agreement (effective interest rate of 1.83 % as of September 30, 2021, before the impact of interest rate swaps).
+Added: The margin is subject to potential increases of up to 50 basis points ( two ( 2 ) increases of 25 basis points each) upon certain increases to net first lien leverage ratios, as defined in the Credit Agreement (effective interest rate of 1.85 % as of December 31, 2021, before the impact of interest rate swaps).
• Term Loan B:
−Removed: The Term Loan B bears interest at a rate per annum equal to LIBOR plus 2.25 % margin, with a LIBOR floor of zero (or an alternative base rate plus 1.25 % margin) (effective interest rate of 2.33 % as of September 30, 2021, before the impact of interest rate swaps).
+Added: The Term Loan B bears interest at a rate per annum equal to LIBOR plus 2.25 % margin, with a LIBOR floor of zero (or an alternative base rate plus 1.25 % margin) (effective interest rate of 2.35 % as of December 31, 2021, before the impact of interest rate swaps).
Required Principal Payments:
3 unchanged sentences
◦ 2026 Term Loan A:
−Removed: Quarterly principal payments beginning September 30, 2022 at a quarterly rate of 1.25 %, then at quarterly rates of 1.75 % beginning September 30, 2023, and 2.50 % beginning September 30, 2024 through March 31, 2026, with the balance payable at maturity.
+Added: Quarterly principal payments, at quarterly rates of 1.25 % beginning September 30, 2022, 1.75 % beginning September 30, 2023, and 2.50 % beginning September 30, 2024 through March 31, 2026, with the balance payable at maturity.
• Term Loan B:
5 unchanged sentences
• Term Loan B:
−Removed: The Company may voluntarily prepay the Term Loan B at any time.
−Removed: The Senior Credit Facilities are guaranteed by the Guarantors (as defined in the Credit Agreement) and are secured by a security interest in substantially all of the assets of Lionsgate and the Guarantors (as defined in the Credit Agreement), subject to certain exceptions.
−Removed: LIONS GATE ENTERTAINMENT CORP.
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: The Company may voluntarily prepay the Term Loan B at any time without premium or penalty.
+Added: The Senior Credit Facilities are guaranteed by the guarantors named in the Credit Agreement and are secured by a security interest in substantially all of the assets of Lionsgate and the Guarantors (as defined in the Credit Agreement), subject to certain exceptions.
The Senior Credit Facilities contain representations and warranties, events of default and affirmative and negative covenants that are customary for similar financings and which include, among other things and subject to certain significant exceptions, restrictions on the ability to declare or pay dividends, create liens, incur additional indebtedness, make investments, dispose of assets and merge or consolidate with any other person.
In addition, a net first lien leverage maintenance covenant and an interest coverage ratio maintenance covenant apply to the Revolving Credit Facility and the Term Loan A and are tested quarterly.
−Removed: As of September 30, 2021, the Company was in compliance with all applicable covenants.
+Added: As of December 31, 2021, the Company was in compliance with all applicable covenants.
+Added: LIONS GATE ENTERTAINMENT CORP.
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Change in Control.
3 unchanged sentences
Financial Conduct Authority (the “FCA”), which regulates the LIBOR has announced that the FCA will no longer persuade or compel banks to submit rates for the calculation of LIBOR after the end of 2021.
−Removed: For U.S dollar LIBOR, publication of the one-week and two-month LIBOR settings will cease after December 31, 2021, and publication of the overnight and 12-month LIBOR settings will cease after June 30, 2023.
+Added: For U.S dollar LIBOR, publication of the one-week and two-month LIBOR settings ceased on December 31, 2021, and publication of the overnight and 12-month LIBOR settings will cease after June 30, 2023.
Immediately after June 30, 2023, the one-month, three-month and six-month U.S.
4 unchanged sentences
LIBOR will be discontinued or modified prior to June 30, 2023.
+Added: The Company is unable to predict whether or when an alternative reference rate will become a standard global benchmark and suitable replacement for LIBOR.
+Added: In July 2021, the Alternative Reference Rates Committee, a steering committee comprised of large U.S.
+Added: financial institutions and other market participants, recommended replacing U.S.
+Added: dollar LIBOR with the Secured Overnight Financing Rate (“SOFR”), a new index based on transactions in the market for short-term treasury securities.
+Added: The publication of SOFR began in April 2018, and, therefore, it has a very limited history.
+Added: Whether SOFR attains market traction as a LIBOR replacement tool remains in question.
Under the terms of the Company's Credit Agreement, in the event of the discontinuance of LIBOR, a mutually agreed-upon alternate benchmark rate will be established to replace LIBOR.
−Removed: The Company and Lenders (as defined in the Credit Agreement) shall, in good faith, endeavor to establish an alternate benchmark rate that gives due consideration to prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and which places the Lenders and the Company in the same economic position that existed immediately prior to the discontinuation of LIBOR.
+Added: The Company and Lenders (as defined in the Credit Agreement) shall, in good faith, endeavor to establish an alternate benchmark rate that gives due consideration to prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and which places the lenders under the Credit Agreement and the Company in the same economic position that existed immediately prior to the discontinuation of LIBOR.
The Company does not anticipate that the discontinuance or modification of LIBOR will materially impact its liquidity or financial position.
−Removed: LIONS GATE ENTERTAINMENT CORP.
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
5.500 % Senior Notes
13 unchanged sentences
The 5.500 % Senior Notes contain certain restrictions and covenants that, subject to certain exceptions, limit the Company’s ability to incur additional indebtedness, pay dividends or repurchase the Company’s common shares, make certain loans or investments, and sell or otherwise dispose of certain assets subject to certain conditions, among other limitations.
−Removed: As of September 30, 2021, the Company was in compliance with all applicable covenants.
+Added: As of December 31, 2021, the Company was in compliance with all applicable covenants.
Change in Control.
−Removed: The occurrence of a change of control will be a triggering event requiring the Company to offer to purchase from holders all of the 5.500 % Senior Notes, at a price equal to 101 % of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase.
+Added: The occurrence of a change of control will be a triggering event requiring the Company to offer to purchase from holders all of the 5.500 % Senior Notes, at a price equal to 101 % of the principal amount, plus accrued and
+Added: LIONS GATE ENTERTAINMENT CORP.
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: unpaid interest, if any, to the date of purchase.
In addition, certain asset dispositions will be triggering events that may require the Company to use the excess proceeds from such dispositions to make an offer to purchase the 5.500 % Senior Notes at 100 % of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.
Capacity to Pay Dividends
−Removed: At September 30, 2021, the capacity to pay dividends under the Senior Credit Facilities and the 5.500 % Senior Notes significantly exceeded the amount of the Company's accumulated deficit or net loss, and therefore the Company's net loss of $ 48.5 million and accumulated deficit of $ 143.0 million were deemed free of restrictions from paying dividends at September 30, 2021.
+Added: At December 31, 2021, the capacity to pay dividends under the Senior Credit Facilities and the 5.500 % Senior Notes significantly exceeded the amount of the Company's accumulated deficit or net loss, and therefore the Company's net loss of $ 97.4 million and accumulated deficit of $ 200.2 million were deemed free of restrictions from paying dividends at December 31, 2021.
Loss on Extinguishment of Debt
2 unchanged sentences
• Unamortized debt issuance costs:
−Removed: Where the borrowing capacity (measured as the amount available under the revolving credit facility multiplied by the remaining term) was less than it was prior to the amendment to the Revolving Credit Facility on April 6, 2021, on a creditor-by-creditor basis, the unamortized debt issuance costs were written off as a loss on extinguishment of debt in proportion to the decrease in borrowing capacity.
−Removed: The remaining unamortized debt issuance costs were allocated between the 2023 and 2026 Revolving Credit Facility in proportion to the borrowing capacity of each facility and are being amortized over the respective terms of the 2023 and 2026 Revolving Credit Facility, as applicable.
−Removed: LIONS GATE ENTERTAINMENT CORP.
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: In connection with the Company's credit agreement amendment on April 6, 2021 described above, where the borrowing capacity (measured as the amount available under the revolving credit facility multiplied by the remaining term) was less than it was prior to the amendment to the Revolving Credit Facility on April 6, 2021, on a creditor-by-creditor basis, the unamortized debt issuance costs were written off as a loss on extinguishment of debt in proportion to the decrease in borrowing capacity.
+Added: The remaining unamortized debt issuance costs were allocated between the revolving credit commitments with maturities in 2023 and 2026 in proportion to the borrowing capacity of each facility and were being amortized over the respective terms of the revolving credit commitments with maturities in 2023 and 2026, as applicable.
+Added: During the three months ended December 31, 2021, in connection with the Company's termination of its revolving credit commitments with a maturity of March 22, 2023 as discussed above, the associated debt issuance costs were written off as a loss on extinguishment of debt.
• Fees paid to creditors and third-party costs:
−Removed: All fees paid to creditors or third parties (i.e., new debt issuance costs) were recorded as a reduction of amounts outstanding under the 2026 Revolving Credit Facility and are being amortized over the term of the 2026 Revolving Credit Facility.
−Removed: With respect to substantially all creditors participating in the Term Loan A, the amendment was considered a modification of terms since the present value of the cash flows after the amendment differed by less than a 10% change from the present value of the cash flows on a creditor-by-creditor basis prior to the amendment.
+Added: In connection with the Company's credit agreement amendment on April 6, 2021 described above, all fees paid to creditors or third parties (i.e., new debt issuance costs) were recorded as a reduction of amounts outstanding under the 2026 Revolving Credit Facility and are being amortized over the term of the 2026 Revolving Credit Facility.
+Added: In connection with the Company's credit agreement amendment on April 6, 2021 described above, with respect to substantially all creditors participating in the Term Loan A, the amendment was considered a modification of terms since the present value of the cash flows after the amendment differed by less than a 10% change from the present value of the cash flows on a creditor-by-creditor basis prior to the amendment.
Accordingly, the associated costs were accounted for as follows:
8 unchanged sentences
Senior Notes.
−Removed: In accounting for the issuance and redemption of the 5.875 % and 6.375 % Senior Notes as discussed above, a portion of the Senior Notes redemption and issuance was considered a modification of terms with creditors who participated in both the redeemed Senior Notes and new 5.500 % Senior Notes, a portion was considered a debt extinguishment, and a portion represented new issuances to new creditors, and the debt issuance costs were accounted for as follows:
+Added: In accounting for the issuance and redemption of the 5.875 % and 6.375 % Senior Notes on April 1, 2021 as discussed above, a portion of the Senior Notes redemption and issuance was considered a modification of terms with creditors who participated in both the redeemed Senior Notes and new 5.500 % Senior Notes, a portion was considered a debt
+Added: LIONS GATE ENTERTAINMENT CORP.
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: extinguishment, and a portion represented new issuances to new creditors, and the debt issuance costs were accounted for as follows:
• Unamortized debt issuance costs:
6 unchanged sentences
For all of the above transactions, debt issuance costs recorded as a reduction of outstanding debt are amortized using the effective interest method.
−Removed: In connection with the repurchases of the Term Loan B discussed above, during the three and six months ended September 30, 2021, the Company recorded a loss on extinguishment of debt of nil and $ 0.2 million, respectively, related to the write-off of debt issuance costs.
+Added: In connection with the repurchases of the Term Loan B discussed above, during the three and nine months ended December 31, 2021, the Company recorded a loss on extinguishment of debt of nil and $ 0.2 million, respectively, related to the write-off of debt issuance costs.
Loss on Extinguishment of Debt.
−Removed: During the six months ended September 30, 2021, the Company recorded a loss on extinguishment of debt related to the transactions described above, as summarized in the table below (three months ended September 30, 2021 - loss on extinguishment of debt of $ 0.4 million;
−Removed: three and six months ended September 30, 2020 - none ):
−Removed: LIONS GATE ENTERTAINMENT CORP.
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Six Months Ended
−Removed: September 30, 2021
+Added: During the three months ended December 31, 2021, the Company recorded a loss on extinguishment of debt of $ 1.1 million related to the write-off of debt issuance costs associated with the termination of its revolving credit commitments with maturities in March 2023.
+Added: During the nine months ended December 31, 2021, the Company recorded a loss on extinguishment of debt related to the transactions described above, as summarized in the table below (three and nine months ended December 31, 2020 - none ):
+Added: Nine Months Ended
+Added: December 31, 2021
Loss on Extinguishment of Debt Recorded as a Reduction of Outstanding Debt Balances & Amortized Over Life of New Issuances Total
(Amounts in millions)
−Removed: Revolving Credit Facility, Term Loan A and Senior Notes:
+Added: Credit Agreement amendment (Revolving Credit Facility and Term Loan A) and Senior Notes redemption and issuance:
New debt issuance costs and call premiums $ 21.2 $ 31.0 $ 52.2
1 unchanged sentence
$ 26.4 $ 62.1 $ 88.5
−Removed: Loss on Term Loan B repurchases and other 0.7
+Added: Termination of a portion of Revolving Credit Facility commitments, Term Loan B repurchases and other 1.8
Total loss on extinguishment of debt $ 28.2
+Added: LIONS GATE ENTERTAINMENT CORP.
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Film Related and Other Obligations
−Removed: September 30,
2021 March 31,
2 unchanged sentences
Production and related loans 1,014.6 493.5
−Removed: IP Credit Facility and other financing obligations 215.0 —
+Added: IP Credit Facility 134.7 —
Total film related and other obligations 1,389.0 708.1
8 unchanged sentences
Individual Loans .
−Removed: The majority of the Company's individual production and related loans have contractual repayment dates either at or near the expected completion date, with the exception of certain loans containing repayment dates on a longer term basis, and incur LIBOR-based interest at rates ranging from 1.93 % to 3.11 % (before the impact of interest rate swaps, see Note 16 for interest rate swaps).
+Added: The majority of the Company's individual production and related loans have contractual repayment dates either at or near the expected completion date, with the exception of certain loans containing repayment dates on a longer term basis, and incur primarily LIBOR-based interest at a weighted average rate of 2.47 % (before the impact of interest rate swaps, see Note 16 for interest rate swaps).
LIONS GATE ENTERTAINMENT CORP.
3 unchanged sentences
The maximum principal amount of the Production Tax Credit Facility is $ 220.0 million, subject to the amount of collateral available, which is based on specified percentages of amounts payable to the Company by governmental authorities pursuant to the tax incentive laws of certain eligible jurisdictions that arise from the production or exploitation of motion pictures and television programming in such jurisdiction.
−Removed: Advances under the Production Tax Credit Facility bear interest at a rate equal to, at the Company’s option, LIBOR plus 1.50 % per annum or the base rate plus 0.50 % per annum (effective interest rate of 1.58 % at September 30, 2021).
+Added: Advances under the Production Tax Credit Facility bear interest at a rate equal to, at the Company’s option, LIBOR plus 1.50 % per annum or the base rate plus 0.50 % per annum (effective interest rate of 1.60 % at December 31, 2021).
The Production Tax Credit Facility matures on January 27, 2025.
−Removed: As of September 30, 2021, there was $ 205.8 million outstanding under the Production Tax Credit Facility, and there were no additional amounts available under the Production Tax Credit Facility (March 31, 2021 - $ 120.0 million outstanding).
−Removed: IP Credit Facility and Other Financing Obligations
+Added: As of December 31, 2021, there was $ 214.1 million outstanding under the Production Tax Credit Facility, and there were no material additional amounts available under the Production Tax Credit Facility (March 31, 2021 - $ 120.0 million outstanding).
IP Credit Facility
+Added: IP Credit Facility.
In July 2021, as amended on September 30, 2021, certain subsidiaries of the Company entered into a senior secured amortizing term credit facility (the "IP Credit Facility") based on the collateral consisting solely of certain of the Company’s rights in certain library titles, including the Spyglass and other recently acquired libraries.
9 unchanged sentences
July 30, 2026 $ 140.0 July 30, 2026
−Removed: Advances under the IP Credit Facility bear interest at a rate equal to, at the Company’s option, LIBOR plus 2.25 % per annum or the base rate plus 1.25 % per annum (effective interest rate of 2.50 % at September 30, 2021).
+Added: Advances under the IP Credit Facility bear interest at a rate equal to, at the Company’s option, LIBOR plus 2.25 % per annum (with a LIBOR floor of 0.25 %) or the base rate plus 1.25 % per annum (effective interest rate of 2.50 % at December 31, 2021).
The IP Credit Facility matures on July 30, 2026.
−Removed: As of September 30, 2021, there was $ 140.0 million outstanding under the IP Credit Facility.
+Added: As of December 31, 2021, there was $ 134.7 million outstanding under the IP Credit Facility.
Other Financing Obligations.
−Removed: Other financing obligations include financing collateralized by certain contractual payments to be received in the future.
+Added: During the three and nine months ended December 31, 2021, the Company repaid its previously outstanding other financing obligations incurred in the quarter ended September 30, 2021, which included financing collateralized by certain contractual payments to be received in the future.
Fair Value Measurements
5 unchanged sentences
• Level 1 — Quoted prices in active markets for identical assets or liabilities.
+Added: LIONS GATE ENTERTAINMENT CORP.
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
• Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities;
1 unchanged sentence
or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
−Removed: LIONS GATE ENTERTAINMENT CORP.
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
• Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.
−Removed: The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of September 30, 2021 and March 31, 2021:
−Removed: September 30, 2021 March 31, 2021
+Added: The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of December 31, 2021 and March 31, 2021:
+Added: December 31, 2021 March 31, 2021
Level 1 Level 2 Total Level 1 Level 2 Total
(Amounts in millions)
−Removed: Available-for-sale equity securities $ 0.7 $ — $ 0.7 $ 1.8 $ — $ 1.8
+Added: Equity securities with a readily determinable fair value $ 1.8 $ — $ 1.8 $ 1.8 $ — $ 1.8
Forward exchange contracts (see Note 16) — 2.0 2.0 — 1.5 1.5
4 unchanged sentences
________________
−Removed: (1) Amounts at September 30, 2021 and March 31, 2021 exclude $ 93.1 million and $ 98.2 million, respectively, of financing component of interest rate swaps presented in the table below.
−Removed: The following table sets forth the carrying values and fair values of the Company’s outstanding debt, production and related loans, IP Credit Facility and other financing obligations, and interest rate swaps at September 30, 2021 and March 31, 2021:
−Removed: September 30, 2021 March 31, 2021
+Added: (1) Amounts at December 31, 2021 and March 31, 2021 exclude $ 90.6 million and $ 98.2 million, respectively, of financing component of interest rate swaps presented in the table below.
+Added: The following table sets forth the carrying values and fair values of the Company’s outstanding debt, production and related loans, IP Credit Facility, and interest rate swaps at December 31, 2021 and March 31, 2021:
+Added: December 31, 2021 March 31, 2021
(Amounts in millions)
11 unchanged sentences
Production and related loans 1,010.3 1,014.6 489.0 493.5
−Removed: IP Credit Facility and other financing obligations 212.3 215.0 — —
+Added: IP Credit Facility 131.6 134.7 — —
Financing component of interest rate swaps (2)
2 unchanged sentences
(1) The Company measures the fair value of its outstanding debt and interest rate swaps using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements).
−Removed: (2) Amounts at September 30, 2021 and March 31, 2021 include $ 93.1 million and $ 98.2 million, respectively, recorded as a reduction of assets under master netting arrangements.
+Added: (2) Amounts at December 31, 2021 and March 31, 2021 include $ 90.6 million and $ 98.2 million, respectively, recorded as a reduction of assets under master netting arrangements.
The Company’s financial instruments also include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, other liabilities, and borrowings under the Revolving Credit Facility, if any.
−Removed: The carrying values of these financial instruments approximated the fair values at September 30, 2021 and March 31, 2021.
+Added: The carrying values of these financial instruments approximated the fair values at December 31, 2021 and March 31, 2021.
LIONS GATE ENTERTAINMENT CORP.
3 unchanged sentences
The table below presents the reconciliation of changes in redeemable noncontrolling interests:
−Removed: Six Months Ended
−Removed: September 30,
+Added: Nine Months Ended
(Amounts in millions)
15 unchanged sentences
Pursuant to the amendment to the operating agreement on April 2, 2021, this discount was eliminated and therefore the remaining unamortized discount of $ 2.7 million was expensed in the quarter ended June 30, 2021.
−Removed: The amortization of the discount through June 30, 2021 was included in general and administrative expense of Pilgrim Media Group and reflected as an addition to redeemable noncontrolling interest.
+Added: The amortization of the discount through June 30, 2021 was included in general and administrative expense of Pilgrim Media Group for the nine months ended December 31, 2021, and reflected as an addition to redeemable noncontrolling interest.
Redeemable noncontrolling interests are measured at the greater of (i) the redemption amount that would be paid if settlement occurred at the balance sheet date less the amount attributed to unamortized noncontrolling interest discount if applicable, or (ii) the historical value resulting from the original acquisition date value plus or minus any earnings or loss attribution, plus the amount of amortized noncontrolling interest discount, less the amount of cash distributions that are not accounted for as compensation, if any.
7 unchanged sentences
Revenue by Segment, Market or Product Line
−Removed: The table below presents revenues by segment, market or product line for the three and six months ended September 30, 2021 and 2020:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: The table below presents revenues by segment, market or product line for the three and nine months ended December 31, 2021 and 2020:
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
27 unchanged sentences
___________________
−Removed: (1) Media Networks domestic revenues for the three and six months ended September 30, 2020 included revenue from the Company's former Other Streaming Services product line of $ 13.3 million and $ 24.8 million, respectively, substantially all of which related to the Company's former interest in Pantaya, which was sold on March 31, 2021 (see Note 2).
+Added: (1) Media Networks domestic revenues for the three and nine months ended December 31, 2020 included revenue from the Company's former Other Streaming Services product line of $ 13.2 million and $ 38.0 million, respectively, substantially all of which related to the Company's former interest in Pantaya, which was sold on March 31, 2021 (see Note 2).
LIONS GATE ENTERTAINMENT CORP.
2 unchanged sentences
Remaining performance obligations represent deferred revenue on the balance sheet plus fixed fee or minimum guarantee contracts where the revenue will be recognized and the cash received in the future (i.e., backlog).
−Removed: Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at September 30, 2021 are as follows:
+Added: Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at December 31, 2021 are as follows:
Rest of Year Ending March 31, 2022 Year Ending March 31,
4 unchanged sentences
The revenues included in the above table include all fixed fee contracts regardless of duration.
−Removed: Revenues of $ 60.0 million and $ 132.8 million, respectively, including variable and fixed fee arrangements, were recognized during the three and six months ended September 30, 2021, from performance obligations satisfied prior to March 31, 2021.
+Added: Revenues of $ 45.8 million and $ 178.6 million, respectively, including variable and fixed fee arrangements, were recognized during the three and nine months ended December 31, 2021, from performance obligations satisfied prior to March 31, 2021.
These revenues were primarily associated with the distribution of television and theatrical product in electronic sell-through and video-on-demand formats, and to a lesser extent, the distribution of theatrical product in the domestic and international markets related to films initially released in prior periods.
1 unchanged sentence
The timing of revenue recognition, billings and cash collections affects the recognition of accounts receivable, contract assets and deferred revenue.
−Removed: At September 30, 2021 and March 31, 2021, accounts receivable, contract assets and deferred revenue are as follows.
−Removed: Item Balance Sheet Location September 30,
+Added: At December 31, 2021 and March 31, 2021, accounts receivable, contract assets and deferred revenue are as follows.
+Added: Item Balance Sheet Location December 31,
2021 March 31,
21 unchanged sentences
March 31, 2021 (Benefit) provision for doubtful accounts (1)
−Removed: Uncollectible accounts written-off September 30, 2021
+Added: Uncollectible accounts written-off December 31, 2021
(Amounts in millions)
7 unchanged sentences
Deferred revenue relates primarily to customer cash advances or deposits received prior to when the Company satisfies the corresponding performance obligation.
−Removed: Revenues of $ 42.9 million and $ 107.0 million, respectively, were recognized during the three and six months ended September 30, 2021 related to the balance of deferred revenue at March 31, 2021.
+Added: Revenues of $ 23.6 million and $ 130.6 million, respectively, were recognized during the three and nine months ended December 31, 2021 related to the balance of deferred revenue at March 31, 2021.
Net Income (Loss) Per Share
Basic net income (loss) per share is calculated based on the weighted average common shares outstanding for the period.
−Removed: Basic net income (loss) per share for the three and six months ended September 30, 2021 and 2020 is presented below:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Basic net income (loss) per share for the three and nine months ended December 31, 2021 and 2020 is presented below:
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
6 unchanged sentences
Diluted net income (loss) per common share reflects share purchase options, including share appreciation rights ("SARs"), restricted share units ("RSUs") and restricted stock using the treasury stock method when dilutive, and any contingently issuable shares when dilutive.
−Removed: Diluted net income (loss) per common share for the three and six months ended September 30, 2021 and 2020 is presented below:
+Added: Diluted net income (loss) per common share for the three and nine months ended December 31, 2021 and 2020 is presented below:
LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
9 unchanged sentences
Diluted net income (loss) per common share $ ( 0.20 ) $ ( 0.06 ) $ ( 0.37 ) $ 0.09
−Removed: As a result of the net loss in the six months ended September 30, 2021 and the three months ended September 30, 2020, the dilutive effect of the share purchase options, restricted share units and restricted stock, and contingently issuable shares were considered anti-dilutive and, therefore, excluded from diluted net loss per share.
−Removed: The weighted average anti-dilutive shares excluded from the calculation due to the net loss for the six months ended September 30, 2021 totaled 5.7 million (three months ended September 30, 2020 - 0.9 million).
−Removed: Additionally, for the three and six months ended September 30, 2021 and 2020, the outstanding common shares issuable presented below were excluded from diluted net income (loss) per common share because their inclusion would have had an anti-dilutive effect regardless of net income or loss in the period.
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: As a result of the net loss in the three and nine months ended December 31, 2021 and the three months ended December 31, 2020, the dilutive effect of the share purchase options, restricted share units and restricted stock, and contingently issuable shares were considered anti-dilutive and, therefore, excluded from diluted net loss per share.
+Added: The weighted average anti-dilutive shares excluded from the calculation due to the net loss for the three and nine months ended December 31, 2021 totaled 4.5 million and 5.3 million, respectively (three months ended December 31, 2020 - 1.9 million).
+Added: Additionally, for the three and nine months ended December 31, 2021 and 2020, the outstanding common shares issuable presented below were excluded from diluted net income (loss) per common share because their inclusion would have had an anti-dilutive effect regardless of net income or loss in the period.
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
9 unchanged sentences
(a) Common Shares
−Removed: The Company had 500 million authorized Class A voting shares and 500 million authorized Class B non-voting shares at September 30, 2021 and March 31, 2021.
+Added: The Company had 500 million authorized Class A voting shares and 500 million authorized Class B non-voting shares at December 31, 2021 and March 31, 2021.
The table below outlines common shares reserved for future issuance:
−Removed: September 30,
2021 March 31,
7 unchanged sentences
2019 Performance Incentive Plan (the “2019 Plan”) previously adopted by the Board of Directors of the Company to increase the maximum number of the Company’s common shares that may be issued or transferred pursuant to awards under the 2019 Plan by an additional 5.0 million shares so that the new aggregate share limit under the 2019 Plan is 21.1 million common shares (not including shares that were originally approved for issuance under the Company’s prior stock incentive plans that have become available for issuance under the 2019 Plan pursuant to the terms of the 2019 Plan).
−Removed: The Company recognized the following share-based compensation expense during the three and six months ended September 30, 2021 and 2020:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: The Company recognized the following share-based compensation expense during the three and nine months ended December 31, 2021 and 2020:
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
16 unchanged sentences
Share-based compensation expense, by expense category, consisted of the following:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
6 unchanged sentences
$ 22.6 $ 20.0 $ 77.5 $ 60.0
−Removed: The following table sets forth the stock option, SARs, restricted stock and restricted share unit activity during the six months ended September 30, 2021:
+Added: The following table sets forth the stock option, SARs, restricted stock and restricted share unit activity during the nine months ended December 31, 2021:
Stock Options and SARs Restricted Stock and Restricted Share Units
12 unchanged sentences
$ 21.95 ( 0.4 ) $ 24.62 — — ( 0.5 ) $ 9.34
−Removed: Outstanding at September 30, 2021 5.5 $ 24.32 21.8 $ 15.62 — (1)
+Added: Outstanding at December 31, 2021 5.5 $ 24.33 21.7 $ 15.55 — (1)
$ 11.51 7.7 $ 11.82
2 unchanged sentences
(c) Share Repurchases
−Removed: During the three and six months ended September 30, 2021 and the three months ended September 30, 2020, the Company did not repurchase any common shares.
−Removed: During the six months ended September 30, 2020, the Company repurchased 0.2 million of its Class A voting shares for an aggregate cost of $ 1.0 million, with an average repurchase price per share of $ 5.75 .
+Added: During the three and nine months ended December 31, 2021 and the three months ended December 31, 2020, the Company did not repurchase any common shares.
+Added: During the nine months ended December 31, 2020, the Company repurchased 0.2 million of its Class A voting shares for an aggregate cost of $ 1.0 million, with an average repurchase price per share of $ 5.75 .
To date, approximately $ 288.1 million common shares have been repurchased, leaving approximately $ 179.9 million of authorized potential repurchases.
−Removed: The income tax benefit (provision) for the three months ended September 30, 2021 and 2020 is calculated by estimating the Company's annual effective tax rate (estimated annual tax provision divided by estimated annual income before income taxes), and then applying the effective tax rate to income (loss) before income taxes for the period, plus or minus the tax effects of items that relate discretely to the period, if any.
+Added: The income tax provision for the three and nine months ended December 31, 2021 and 2020 is calculated by estimating the Company's annual effective tax rate (estimated annual tax provision divided by estimated annual income before income taxes), and then applying the effective tax rate to income (loss) before income taxes for the period, plus or minus the tax effects of items that relate discretely to the period, if any.
LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: The Company's income tax benefit (provision) differs from the federal statutory rate multiplied by pre-tax income (loss) due to the mix of the Company's pre-tax income (loss) generated across the various jurisdictions in which the Company operates, changes in the valuation allowance against the Company's deferred tax assets, and certain minimum taxes and foreign withholding taxes.
−Removed: The Company's income tax provision for the quarter ended September 30, 2021 and 2020 was also impacted by interest accrual on uncertain tax benefits, and release of uncertain tax benefits due to the close of audits or expiration of statutory limitations.
−Removed: The Company's income tax benefit (provision) can be affected by many factors, including the overall level of pre-tax income, the mix of pre-tax income generated across the various jurisdictions in which the Company operates, changes in tax laws and regulations in those jurisdictions, changes in uncertain tax positions, changes in valuation allowances on its deferred tax assets, tax planning strategies available to the Company, and other discrete items.
+Added: The Company's income tax provision differs from the federal statutory rate multiplied by pre-tax income (loss) due to the mix of the Company's pre-tax income (loss) generated across the various jurisdictions in which the Company operates, changes in the valuation allowance against the Company's deferred tax assets, and certain minimum taxes and foreign withholding taxes.
+Added: The Company's income tax provision for the three and nine months ended December 31, 2021 was also impacted by interest accrual on uncertain tax benefits, additional uncertain tax benefits related to state income taxes identified during state audits, and release of uncertain tax benefits due to the close of audits or expiration of statutory limitations.
+Added: The Company's income tax provision for the three and nine months ended December 31, 2020 was also impacted by interest accrual on uncertain tax benefits, and release of uncertain tax benefits due to the expiration of statutory limitations and settlements with tax authorities.
+Added: The Company's income tax provision can be affected by many factors, including the overall level of pre-tax income, the mix of pre-tax income generated across the various jurisdictions in which the Company operates, changes in tax laws and regulations in those jurisdictions, changes in uncertain tax positions, changes in valuation allowances on its deferred tax assets, tax planning strategies available to the Company, and other discrete items.
Restructuring and Other
Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable.
−Removed: During the three and six months ended September 30, 2021 and 2020, the Company also incurred certain other unusual charges related to the COVID-19 global pandemic.
−Removed: The following table sets forth restructuring and other and COVID-19 related charges and the statement of operations line items they are included in for the three and six months ended September 30, 2021 and 2020:
+Added: During the three and nine months ended December 31, 2021 and 2020, the Company also incurred certain other unusual charges related to the COVID-19 global pandemic.
+Added: The following table sets forth restructuring and other and COVID-19 related charges and the statement of operations line items they are included in for the three and nine months ended December 31, 2021 and 2020:
LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
17 unchanged sentences
_______________________
−Removed: (1) Severance costs in the three and six months ended September 30, 2021 and 2020 were primarily related to restructuring activities in connection with cost-saving initiatives and recent acquisitions.
−Removed: (2) During the three and six months ended September 30, 2021, the Company has incurred certain costs primarily related to incremental costs required to adhere to health and safety protocols and other incremental costs associated with the COVID-19 global pandemic.
−Removed: In the three and six months ended September 30, 2020, these costs were primarily related to transitioning the Company to a remote-work environment and other incremental costs associated with the COVID-19 global pandemic.
−Removed: (3) Transaction and related costs in the three and six months ended September 30, 2021 and 2020 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters.
−Removed: (4) In connection with the disruptions associated with the COVID-19 global pandemic and measures to prevent its spread and mitigate its effects both domestically and internationally, and the related economic disruption, including the worldwide closure of theaters, international travel restrictions and the pausing of motion picture and television productions, during the three and six months ended September 30, 2021 and 2020 the Company incurred certain incremental costs which were expensed in the period.
−Removed: The charges (benefit) included in direct operating expense includes incremental costs associated with the pausing and restarting of productions including certain cast and crew, idle facilities and equipment costs resulting from circumstances associated with the COVID-19 global pandemic, net of insurance recoveries, and in the three and six months ended September 30, 2020, these charges also included film impairment due to changes in performance expectations resulting from circumstances associated with the COVID-19 global pandemic.
−Removed: In the three months ended September 30, 2021, insurance recoveries exceeded the incremental costs expensed in the period, resulting in a net benefit included in direct operating expense.
+Added: (1) Severance costs were primarily related to restructuring activities in connection with cost-saving initiatives.
+Added: (2) During the three and nine months ended December 31, 2021, the Company has incurred certain incremental general and administrative costs associated with the COVID-19 global pandemic.
+Added: In the three and nine months ended December 31, 2020, these costs were primarily related to transitioning the Company to a remote-work environment and other incremental general and administrative costs associated with the COVID-19 global pandemic.
+Added: (3) Transaction and related costs in the three and nine months ended December 31, 2021 and 2020 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters.
+Added: (4) In connection with the disruptions associated with the COVID-19 global pandemic and measures to prevent its spread and mitigate its effects both domestically and internationally, and the related economic disruption, including the worldwide closure of theaters, international travel restrictions and the pausing of motion picture and television productions, certain incremental costs were incurred and expensed.
+Added: The charges (benefit) included in direct operating expense includes incremental costs associated with the pausing and restarting of productions including paying/hiring certain cast and crew, maintaining idle facilities and equipment costs resulting from circumstances associated with the COVID-19 global pandemic, net of insurance recoveries.
+Added: In the nine months ended December 31, 2020, these charges also included film impairment due to changes in performance expectations resulting from circumstances associated with the COVID-19 global pandemic.
+Added: In the three and nine months ended December 31, 2021, insurance recoveries exceeded the incremental costs expensed in the periods, resulting in a net benefit included in direct operating expense.
In addition, the costs included in distribution and marketing expense primarily consist of contractual marketing spends for film releases and events that have been canceled or delayed and will provide no economic benefit.
1 unchanged sentence
The ultimate amount of insurance recovery cannot be estimated at this time.
−Removed: Changes in the restructuring and other severance liability were as follows for the six months ended September 30, 2021 and 2020:
LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Six Months Ended
−Removed: September 30,
+Added: Changes in the restructuring and other severance liability were as follows for the nine months ended December 31, 2021 and 2020:
+Added: Nine Months Ended
(Amounts in millions)
5 unchanged sentences
_______________________
−Removed: (1) As of September 30, 2021, the remaining severance liability of approximately $ 3.0 million is expected to be paid in the next 12 months.
+Added: (1) As of December 31, 2021, the remaining severance liability of approximately $ 1.5 million is expected to be paid in the next 12 months.
Segment Information
18 unchanged sentences
Segment information is presented in the table below:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
35 unchanged sentences
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
18 unchanged sentences
Gain (loss) on investments ( 0.2 ) — 1.2 0.3
−Removed: Equity interests income (loss) 0.4 ( 1.9 ) 1.1 ( 4.5 )
+Added: Equity interests loss ( 2.5 ) ( 0.7 ) ( 1.4 ) ( 5.1 )
Income (loss) before income taxes $ ( 39.4 ) $ ( 10.2 ) $ ( 75.8 ) $ 14.0
1 unchanged sentence
(1) Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
4 unchanged sentences
(2) Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 13).
−Removed: (3) In connection with the disruptions associated with the COVID-19 global pandemic and measures to prevent its spread and mitigate its effects both domestically and internationally, during the three and six months ended September 30, 2021 the Company has incurred a benefit of $( 0.8 ) million and charges of $ 0.8 million, respectively, net of insurance recoveries, in incremental direct operating and distribution and marketing expense (three and six months ended September 30, 2020 - $ 28.4 million and $ 38.8 million, respectively) (see Note 13).
+Added: (3) In connection with the disruptions associated with the COVID-19 global pandemic and measures to prevent its spread and mitigate its effects both domestically and internationally, during the three and nine months ended December 31, 2021 the Company has incurred a benefit of $ 2.8 million and $ 2.0 million, respectively, net of insurance recoveries, in incremental direct operating and distribution and marketing expense (three and nine months ended December 31, 2020 - charges of $ 14.0 million and $ 52.7 million, respectively) (see Note 13).
These charges are excluded from segment operating results.
−Removed: (4) The following table reconciles total share-based compensation expense to adjusted share-based compensation expense:
LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: (4) The following table reconciles total share-based compensation expense to adjusted share-based compensation expense:
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
8 unchanged sentences
The following sets forth the amounts included in each line item in the financial statements:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
5 unchanged sentences
$ 50.3 $ 49.5 $ 144.8 $ 145.5
−Removed: See Note 9 for revenues by media or product line as broken down by segment for the three and six months ended September 30, 2021 and 2020.
+Added: See Note 9 for revenues by media or product line as broken down by segment for the three and nine months ended December 31, 2021 and 2020.
The following table reconciles segment general and administration expense to the Company's total consolidated general and administration expense:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
9 unchanged sentences
The reconciliation of total segment assets to the Company’s total consolidated assets is as follows:
−Removed: September 30,
2021 March 31,
22 unchanged sentences
Additionally, on November 5, 2018, an insurer that entered into an agreement and contributed $ 10.0 million to the Company's aggregate insurance reimbursement filed a lawsuit seeking declaratory judgment for reimbursement of its agreed upon payment.
−Removed: During the quarter ended September 30, 2021, the Company settled with all of the insurers in both lawsuits except one (with whom the Company had settled in the prior quarter).
−Removed: The net settlement amount derived by the Company during the three months ended September 30, 2021 is $ 20.2 million, which is included in the “interest and other income” line item on the unaudited condensed consolidated statement of operations (six months ended September 30, 2021 - $ 22.7 million).
+Added: During the nine months ended December 31, 2021, the Company settled with all of the insurers in both lawsuits, which resulted in a net settlement amount derived by the Company during the nine months ended December 31, 2021 of $ 22.7 million, which is included in the “interest and other income” line item on the unaudited condensed consolidated statement of operations.
LIONS GATE ENTERTAINMENT CORP.
7 unchanged sentences
Gains and losses realized upon settlement of the foreign exchange contracts that are designated as hedges are amortized to direct operating expense on the same basis as the production expenses being hedged.
−Removed: As of September 30, 2021, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 16 months from September 30, 2021):
−Removed: September 30, 2021
+Added: As of December 31, 2021, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 13 months from December 31, 2021):
+Added: December 31, 2021
Foreign Currency Foreign Currency Amount US Dollar Amount Weighted Average Exchange Rate Per $1 USD
4 unchanged sentences
Canadian Dollar C$ 8.2 in exchange for $ 6.4 C$ 1.28
−Removed: Czech Koruna CZK 99.9 in exchange for $ 4.4 CZK 22.57
Interest Rate Swaps
7 unchanged sentences
However, due to an other-than-insignificant financing element on a portion of our interest rate swaps (see designated cash flow hedges table below), the cash flows related to these contracts are classified as financing activities.
−Removed: Designated Cash Flow Hedges.
−Removed: As of September 30, 2021, the Company had the following designated cash flow hedge pay-fixed interest rate swaps outstanding (all related to the Company's LIBOR-based debt, see Note 5 and Note 6):
LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: Designated Cash Flow Hedges.
+Added: As of December 31, 2021, the Company had the following designated cash flow hedge pay-fixed interest rate swaps outstanding (all related to the Company's LIBOR-based debt, see Note 5 and Note 6):
Effective Date Notional Amount Fixed Rate Paid Maturity Date (1)
10 unchanged sentences
Not Designated.
−Removed: As of September 30, 2021, the Company had the following pay-fixed receive-variable and offsetting pay-variable receive-fixed interest rate swaps outstanding, which are not designated as cash flow hedges:
+Added: As of December 31, 2021, the Company had the following pay-fixed receive-variable and offsetting pay-variable receive-fixed interest rate swaps outstanding, which are not designated as cash flow hedges:
Pay-Fixed Receive-Variable (1)
14 unchanged sentences
The $ 1.4 billion of pay-fixed receive-variable interest rate swaps de-designated as cash flow hedges and the $ 1.4 billion of offsetting pay-variable receive-fixed swaps are marked to market with changes in fair value recognized, along with the fixed and variable payments on these swaps, in interest expense, which are expected to nearly offset each other.
−Removed: Financial Statement Effect of Derivatives
−Removed: Unaudited condensed consolidated statements of operations and comprehensive income (loss):
−Removed: The following table presents the pre-tax effect of the Company's derivatives on the accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended September 30, 2021 and 2020:
LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: Financial Statement Effect of Derivatives
+Added: Unaudited condensed consolidated statements of operations and comprehensive income (loss):
+Added: The following table presents the pre-tax effect of the Company's derivatives on the accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended December 31, 2021 and 2020:
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
2 unchanged sentences
Forward exchange contracts
−Removed: Gain (loss) recognized in accumulated other comprehensive loss $ 0.3 $ ( 0.4 ) $ 0.2 $ ( 0.6 )
−Removed: Loss reclassified from accumulated other comprehensive loss into direct operating expense $ ( 0.2 ) $ — $ ( 0.4 ) $ ( 0.1 )
+Added: Gain recognized in accumulated other comprehensive loss $ 1.0 $ 2.0 $ 1.2 $ 1.5
+Added: Gain reclassified from accumulated other comprehensive loss into direct operating expense $ 1.0 $ 0.3 $ 0.6 $ 0.3
Interest rate swaps
12 unchanged sentences
Pursuant to the Company's accounting policy to offset the fair value amounts recognized for derivative instruments, the Company presents the asset or liability position of the swaps that are with the same counterparty under a master netting arrangement net as either an asset or liability in its unaudited condensed consolidated balance sheets.
−Removed: As of September 30, 2021, the gross amount of swaps in an asset and liability position that were subject to a master netting arrangement was $ 173.0 million and $ 218.3 million, respectively, resulting in an asset recorded in other assets - non current of $ 27.2 million and a liability recorded in other liabilities - non-current of $ 72.5 million.
+Added: As of December 31, 2021, the gross amount of swaps in an asset and liability position that were subject to a master netting arrangement was $ 153.6 million and $ 195.2 million, respectively, resulting in an asset recorded in other assets - non current of $ 15.1 million and a liability recorded in other liabilities - non-current of $ 56.7 million.
As of March 31, 2021, the gross amount of swaps in an asset and liability position that were subject to a master netting arrangement was $ 211.2 million and $ 236.3 million, respectively, resulting in an asset recorded in other assets - non-current of $ 50.8 million and a liability recorded in other liabilities - non-current of $ 75.9 million.
−Removed: As of September 30, 2021 and March 31, 2021, the Company had the following amounts recorded in the accompanying unaudited condensed consolidated balance sheets related to the Company's use of derivatives:
LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: September 30, 2021
+Added: As of December 31, 2021 and March 31, 2021, the Company had the following amounts recorded in the accompanying unaudited condensed consolidated balance sheets related to the Company's use of derivatives:
+Added: December 31, 2021
Other Current Assets Other Non-Current Assets Accounts Payable and Accrued Liabilities Other Non-Current Liabilities
8 unchanged sentences
________________
−Removed: (1) Includes $ 93.1 million and $ 50.2 million included in other non-current assets and other non-current liabilities, respectively, representing the financing element of certain hybrid instruments, which is offset by the pay-variable receive-fixed interest rate swaps outstanding at September 30, 2021.
+Added: (1) Includes $ 90.6 million and $ 48.1 million included in other non-current assets and other non-current liabilities, respectively, representing the financing element of certain hybrid instruments, which is offset by the pay-variable receive-fixed interest rate swaps outstanding at December 31, 2021.
March 31, 2021
10 unchanged sentences
(1) Includes $ 98.2 million and $ 54.3 million included in other non-current assets and other non-current liabilities, respectively, representing the financing element of certain hybrid instruments, which is offset by the pay-variable receive-fixed interest rate swaps outstanding at March 31, 2021.
−Removed: As of September 30, 2021, based on the current release schedule, the Company estimates less than $ 0.1 million of gains associated with forward foreign exchange contract cash flow hedges in accumulated other comprehensive loss will be reclassified into earnings during the one-year period ending September 30, 2022.
−Removed: As of September 30, 2021, the Company estimates approximately $ 47.4 million of losses recorded in accumulated other comprehensive loss associated with interest rate swap agreement cash flow hedges will be reclassified into interest expense during the one-year period ending September 30, 2022.
+Added: As of December 31, 2021, based on the current release schedule, the Company estimates approximately $ 0.3 million of losses associated with forward foreign exchange contract cash flow hedges in accumulated other comprehensive loss will be reclassified into earnings during the one-year period ending December 31, 2022.
+Added: As of December 31, 2021, the Company estimates approximately $ 42.3 million of losses recorded in accumulated other comprehensive loss associated with interest rate swap agreement cash flow hedges will be reclassified into interest expense during the one-year period ending December 31, 2022.
Additional Financial Information
1 unchanged sentence
Cash, Cash Equivalents and Restricted Cash
−Removed: 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 September 30, 2021.
−Removed: At September 30, 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.
−Removed: There were no material amounts of restricted cash in the unaudited condensed consolidated balance sheet as of March 31, 2021.
+Added: 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.
+Added: At December 31, 2021, restricted cash included in other current assets represents amounts related
LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: September 30,
+Added: to required cash reserves for interest payments associated with the Production Tax Credit Facility and IP Credit Facility.
+Added: There were no material amounts of restricted cash in the unaudited condensed consolidated balance sheet as of March 31, 2021.
(Amounts in millions)
2 unchanged sentences
Total cash, cash equivalents and restricted cash $ 319.3
−Removed: The composition of the Company’s other assets is as follows as of September 30, 2021 and March 31, 2021:
−Removed: September 30,
+Added: The composition of the Company’s other assets is as follows as of December 31, 2021 and March 31, 2021:
2021 March 31,
19 unchanged sentences
The loss is reflected in the "other expense" line item on the unaudited condensed consolidated statements of operations.
−Removed: 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 six months ended September 30, 2021 and 2020.
+Added: 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.
+Added: LIONS GATE ENTERTAINMENT CORP.
+Added: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Individual Monetization Agreements.
1 unchanged sentence
The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the customers.
−Removed: The following table sets forth a summary of the receivables transferred under individual agreements or purchases during the three and six months ended September 30, 2021 and 2020:
−Removed: LIONS GATE ENTERTAINMENT CORP.
−Removed: NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: 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:
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
3 unchanged sentences
Loss recorded related to transfers of receivables 2.1 1.7 6.2 3.9
−Removed: At September 30, 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 $ 532.4 million (March 31, 2021 - $ 562.8 million).
+Added: 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.
1 unchanged sentence
As customers pay their balances, the Company transfers additional receivables into the program.
−Removed: The transferred receivables are fully guaranteed by a bankruptcy-remote wholly-owned subsidiary of the Company, which holds additional receivables in the amount of $ 60.8 million as of September 30, 2021 that are pledged as collateral under this agreement.
+Added: 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.
−Removed: The following table sets forth a summary of the receivables transferred under the pooled monetization agreement during the three and six months ended September 30, 2021 and 2020:
−Removed: Three Months Ended Six Months Ended
−Removed: September 30, September 30,
+Added: 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:
+Added: Three Months Ended Nine Months Ended
+Added: December 31, December 31,
2021 2020 2021 2020
5 unchanged sentences
Net cash proceeds paid or to be paid (1)
+Added: $ ( 2.5 ) $ ( 3.2 ) $ ( 8.6 ) $ ( 6.4 )
Carrying value of receivables transferred and derecognized (2)
1 unchanged sentence
Obligations recorded $ — $ 0.7 $ 0.9 $ 1.4
−Removed: Loss recorded related to transfers of receivables $ 0.4 $ — $ 0.2 $ 0.2
+Added: Loss (gain) recorded related to transfers of receivables $ ( 0.1 ) $ 0.3 $ — $ 0.5
___________________
+Added: (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.
−Removed: At September 30, 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 $ 92.9 million (March 31, 2021 - $ 99.0 million).
+Added: 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).
LIONS GATE ENTERTAINMENT CORP.
7 unchanged sentences
Reclassifications to net loss (1)
−Removed: September 30, 2021 $ ( 16.1 ) $ ( 73.1 ) $ ( 89.2 )
+Added: 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 )
−Removed: Reclassifications to net loss (1)
−Removed: September 30, 2020 $ ( 18.0 ) $ ( 187.5 ) $ ( 205.5 )
+Added: Reclassifications to net income (1)
+Added: December 31, 2020 $ ( 13.2 ) $ ( 156.9 ) $ ( 170.1 )
___________________
−Removed: (1) Represents $ 0.4 million included in direct operating expense and $ 33.4 million included in interest expense on the unaudited condensed consolidated statement of operations in the six months ended September 30, 2021 (six months ended September 30, 2020 - $ 0.1 million included in direct operating expense and $ 28.4 million included in interest expense) (see Note 16).
+Added: (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
−Removed: Significant non-cash transactions during the six months ended September 30, 2021 and 2020 include certain interest rate swap agreements, which are discussed in Note 16, "Derivative Instruments and Hedging Activities".
+Added: 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:
−Removed: Six Months Ended
−Removed: September 30,
+Added: Nine Months Ended
(Amounts in millions)
7 unchanged sentences
______________
−Removed: (1) During the three months ended September 30, 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.
+Added: (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.
LIONS GATE ENTERTAINMENT CORP.
1 unchanged sentence
Supplemental cash flow information related to leases was as follows:
−Removed: Six Months Ended
−Removed: September 30,
+Added: Nine Months Ended
(Amounts in millions)
5 unchanged sentences
______________
−Removed: (1) During the three months ended September 30, 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.
−Removed: Subsequent Events
−Removed: Termination of a Portion of Revolving Credit Facility Commitments.
−Removed: In November 2021, the Company terminated its revolving credit commitments under its 2023 Revolving Credit Facility, amounting to $ 250.0 million (the "Termination").
−Removed: After giving effect to the Termination, the Company's remaining revolving credit commitments under its Credit Agreement amounted to $ 1.25 billion under the 2026 Revolving Credit Facility (see Note 5).
+Added: (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.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.