Related Party Transactions

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Aircraft Sublease Agreement with a Stockholder

The Company has entered into an aircraft sublease (the "Sublease") agreement with an entity controlled by Jeffrey Katzenberg, the Company's Chief Executive Officer and a significant stockholder, for use of an aircraft that such entity leases from the aircraft owner, a company previously jointly owned indirectly by Mr. Katzenberg and Mr. Spielberg (who is also a stockholder in the Company). Under the Sublease, the Company pays all the aircraft operating expenses on Mr. Katzenberg's Company-related flights. In addition, in the event that Mr. Katzenberg uses the aircraft for Company-related travel more than 46 hours (32 hours beginning June 2012) in any calendar year, the Company pays the subleasing entity a specified hourly rate for those hours. During the three and six months ended June 30, 2012, costs incurred related to the sublease were not material. The Company ceased to use this aircraft as of January 1, 2013.

Transactions with ODW

During the three months ended June 30, 2013, the Company had various transactions with a related party, ODW. See Note 7 for further discussion related to these transactions.

Transactions with Universal Music Group

One of the Company's directors, Lucian Grainge, is the chief executive officer of Universal Music Group ("UMG").  From time to time, the Company and UMG make payments to each other in connection with the licensing of music that is owned by the other company (or for which the other company serves as the music publisher).  In addition, UMG serves as the music publisher for the Company's Classic Media business (which the Company acquired in August 2012). Finally, UMG and ATV (which the Company acquired in May 2013) have recently formed joint ventures related to the music business. For the three months ended June 30, 2013, revenues recognized related to the arrangements were not material. During the six months ended June 30, 2013, revenues earned from UMG were not material. During the three and six months ended June 30, 2013, the Company incurred expenses totaling $0.3 million (which were recorded as film inventory costs), related to these arrangements.