United states securities and exchange commission



Download 6.39 Mb.
Page37/105
Date31.05.2016
Size6.39 Mb.
1   ...   33   34   35   36   37   38   39   40   ...   105

The elimination of the lag in recording the Company's share of EPIX's results did not have an impact on cash flows from operating, investing, or financing activities in the consolidated statements of cash flows.



Transactions with EPIX:

The Company licenses certain of its theatrical releases and other films and television programs to EPIX. A portion of the profits of these licenses reflecting the Company’s ownership share in the venture are eliminated through an adjustment to the equity interest income (loss) of the venture. These profits are recognized as they are realized by EPIX through the amortization of the related asset, recorded on EPIX's balance sheet, over the license period. The table below sets forth the revenues and gross profits recognized by Lionsgate and the calculation of the amounts eliminated in the equity interest line item on the statement of operations:











































 

Year Ended

 

Year Ended

 

Year Ended

 

March 31,
2012


 

March 31,
2011


 

March 31,
2010


 

(Amounts in thousands)

Revenue recognized on sales to EPIX

$

70,321




 

$

86,146




 

$

38,606




 

 

 

 

 

 

Gross profit on sales to EPIX

$

41,523




 

$

48,829




 

$

26,315




Ownership interest in EPIX

31.15

%

 

31.15

%

 

31.15

%

Elimination of the Company's share of profits on sales to EPIX

$

12,934




 

$

15,210




 

$

8,197




EPIX Financial Information:

The following table presents summarized balance sheet data as of March 31, 2012 and March 31, 2011 for EPIX:



 





























 

March 31,
2012


 

March 31,
2011


 

(Amounts in thousands)

Current assets

$

196,903




 

$

143,856




Non-current assets

$

140,532




 

$

95,293




Current liabilities

$

140,684




 

$

104,243




Non-current liabilities

$

4,723




 

$

15,219




The following table presents the summarized statement of operations for the twelve months ended March 31, 2012 , 2011 and 2010 for EPIX and a reconciliation of the net income (loss) reported by EPIX to equity interest income (loss) recorded by the Company:

 
F-16


Table of Contents



LIONS GATE ENTERTAINMENT CORP.

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS(Continued)








































 

Twelve Months Ended

 

Twelve Months Ended

 

Twelve Months Ended

 

March 31,
2012


 

March 31,
2011


 

March 31,
2010


 

(Amounts in thousands)

Revenues

$

326,117




 

$

200,561




 

$

322




Expenses:

 

 

 

 

 

Operating expenses

230,548




 

211,404




 

81,623




Selling, general and administrative expenses

23,232




 

20,737




 

18,535




Operating income (loss)

72,337




 

(31,580

)

 

(99,836

)

Interest income (expense)






 

15




 

(123

)

Net income (loss)

$

72,337




 

$

(31,565

)

 

$

(99,959

)

Reconciliation of net income (loss) reported by EPIX to equity interest income (loss):

 

 

 

 

 

Net income (loss) reported by EPIX

$

72,337




 

$

(31,565

)

 

$

(99,959

)

Ownership interest in EPIX

31.15

%

 

31.15

%

 

30.77

%

The Company's share of net income (loss)

22,533




 

(9,832

)

 

(30,753

)

Eliminations of the Company’s share of profits on sales to EPIX (1)

(12,934

)

 

(15,210

)

 

(8,197

)

Realization of the Company’s share of profits on sales to EPIX (2)

14,808




 

10,048




 

1,569




Total equity interest income (loss) recorded

$

24,407




 

$

(14,994

)

 

$

(37,381

)

__________________







(1)

Represents the elimination of the gross profit recognized by Lionsgate on the sale to EPIX in proportion to Lionsgate's ownership interest in EPIX. The amount of intra-entity profit is calculated as the total gross profit recognized on a title by title basis multiplied by Lionsgate's percentage ownership of EPIX. The table above in the Transactions with EPIX section shows the calculation of the profit eliminated.










(2)

Represents the realization of a portion of the profits previously eliminated. This profit remains eliminated until realized by EPIX. EPIX initially records the license fee for the title as inventory on its balance sheet and amortizes the inventory over the license period. Accordingly, the profit is realized as the inventory on EPIX's books is amortized. The profit amount realized is calculated by multiplying the percentage of the EPIX inventory amortized in the period reported by EPIX, by the amount of profit initially eliminated, on a title by title basis.



Share with your friends:
1   ...   33   34   35   36   37   38   39   40   ...   105




The database is protected by copyright ©essaydocs.org 2020
send message

    Main page