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Derivative Financial Instruments (Tables)

9 Months Ended

12 Months Ended

Dec. 31, 2024

Oct. 01, 2023

Mar. 31, 2024

Dec. 25, 2022

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative Instruments by Balance Sheet Location

As of

December 31

, 2024 and March 31, 2024, the Company had the following amounts recorded in the accompanying unaudited condensed consolidated balance sheets related to the Company’s use of derivatives:


	December 31, 2024
	Other Current Assets		Other Non-Current Assets		Other Accrued Liabilities (current)
	(Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts	$	1.9	$	—	$	—
Interest rate swaps		—		0.7		—

Fair value of derivatives	$	1.9	$	0.7	$	—


	March 31, 2024
	Other Current Assets		Other Accrued Liabilities (current)
	(Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts	$	—	$	2.8
Interest rate swaps		35.6		—

Fair value of derivatives	$	35.6	$	2.8

Financial Statement Effect of Derivatives

ombined statement of operations and comprehensive income (loss):

The following table presents the

pre-tax

effect of the Company’s derivatives on the accompanying combined statements of operations and comprehensive income (loss) for the years ended March 31, 2024, 2023 and 2022:


	Year Ended March 31,
	2024			2023			2022
	(Amounts in millions)

Derivatives designated as cash flow hedges:
Forward exchange contracts
Gain (loss) recognized in accumulated other comprehensive income (loss)	$	(5.8	)	$	1.7		$	1.7
Loss reclassified from accumulated other comprehensive income (loss) into direct operating expense		(0.3	)		(0.3	)		(0.2	)
Interest rate swaps
Gain recognized in accumulated other comprehensive income (loss)	$	36.3		$	81.1		$	66.5
Gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense		41.8			1.4			(15.0	)
Derivatives not designated as cash flow hedges:
Interest rate swaps
Loss reclassified from accumulated other comprehensive income (loss) into interest expense	$	(7.2	)	$	(11.8	)	$	(33.8	)
Total direct operating expense on combined statements of operations	$	1,886.7		$	2,207.9		$	1,922.1
Total interest expense on combined statements of operations	$	222.5		$	162.6		$	115.0

Schedule of Derivative Instruments Outstanding

As of

December 31

, 2024, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 16 months from

December 31

, 2024):

December 31, 2024

Foreign Currency

Foreign Currency
Amount

US Dollar
Amount

Weighted Average
Exchange Rate
Per $1 USD

(Amounts in
millions)

British Pound Sterling

0.2 GBP

in exchange for

0.3

0.77 GBP

Czech Koruna

180.0 CZK

in exchange for

7.7

23.29 CZK

Euro

13.9

EUR

in exchange for

14.6

0.94 EUR

Canadian Dollar

8.5 CAD

in exchange for

6.2

1.37 CAD

Mexican Peso

20.7 MXN

in exchange for

1.0

20.43 MXN

Hungarian Forint

5,612.8 HUF

in exchange for

15.0

373.74 HUF

New Zealand Dollar

2.7 NZD

in exchange for

1.7

1.67 NZD

Designated Cash Flow Hedges at March

31, 2024:


Effective Date	Notional Amount		Fixed Rate Paid			Maturity Date
	(in millions)
May 23, 2018	$	300.0		2.915	%	March 24, 2025
May 23, 2018	$	700.0		2.915	%	March 24, 2025
June 25, 2018	$	200.0		2.723	%	March 23, 2025
July 31, 2018	$	300.0		2.885	%	March 23, 2025
December 24, 2018	$	50.0		2.744	%	March 23, 2025
December 24, 2018	$	100.0		2.808	%	March 23, 2025
December 24, 2018	$	50.0		2.728	%	March 23, 2025

Total	$	1,700.0

During the nine months ended December 31, 2024, the Company entered into the following

pay-fixed

interest rate swaps, which have been designated as cash flow hedges outstanding (all related to the Company’s SOFR-based debt, see Note 7 and Note 8).

Designated Cash Flow Hedges at December

31, 2024:


Effective Date	Notional Amount		Fixed Rate Paid			Maturity Date
	(in millions)
August 15, 2024	$	65.0		4.045	%		September 15, 2026
August 15, 2024	$	77.5		3.803	%		August 15, 2026
August 15, 2024	$	77.5		3.810	%		September 15, 2026
December 15, 2024	$	125.0		3.970	%		December 15, 2026

Total	$	345.0

As of March 31, 2024, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 25 months from March 31, 2024):

March 31, 2024

Foreign Currency

Foreign Currency
Amount

US Dollar
Amount

Weighted Average
Exchange Rate Per
$1 USD

(Amounts in
millions)

British Pound Sterling

0.5 GBP

in exchange for

0.6

0.79 GBP

Czech Koruna

180.0 CZK

in exchange for

7.7

23.29 CZK

Euro

0.6 EUR

in exchange for

0.5

0.91 EUR

Canadian Dollar

21.4 CAD

in exchange for

15.9

1.34 CAD

Mexican Peso

56.7 MXN

in exchange for

3.0

18.95 PLN

Hungarian Forint

1,450.0 HUF

in exchange for

4.0

360.17 HUF

New Zealand Dollar

73.9 NZD

in exchange for

45.3

1.64 NZD

Company’s previously outstanding interest rate swaps, the cash flows related to these contracts were classified as financing activities through the date of termination.

Designated Cash Flow Hedges.

As of March 31, 2024 and March 31, 2023, the Company had the following

pay-fixed

interest rate swaps, which have been designated as cash flow hedges outstanding (all related to the Company’s SOFR-based debt, see Note 7 and Note 8).


Effective Date	Notional Amount		Fixed Rate Paid			Maturity Date
	(in millions)
May 23, 2018	$	300.0		2.915	%		March 24, 2025
May 23, 2018	$	700.0		2.915	%		March 24, 2025	(1)
June 25, 2018	$	200.0		2.723	%		March 23, 2025	(1)
July 31, 2018	$	300.0		2.885	%		March 23, 2025	(1)
December 24, 2018	$	50.0		2.744	%		March 23, 2025	(1)
December 24, 2018	$	100.0		2.808	%		March 23, 2025	(1)
December 24, 2018	$	50.0		2.728	%		March 23, 2025	(1)

Total	$	1,700.0

(1)	Represents the re-designated swaps as described in the May 2022 Transactions section below that were previously not designated cash flow hedges at March 31, 2022

Schedule of Derivative Instruments, Statements of Financial Performance And Comprehensive Income (Loss), Location And Effect

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, 2024 and 2023:


	Three Months Ended December 31,				Nine Months Ended December 31,
	2024		2023		2024		2023
	(Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts
Gain (loss) recognized in accumulated other comprehensive income (loss)	$	2.4	$	(4.3)	$	3.5	$	(7.3)
Loss reclassified from accumulated other comprehensive income (loss) into direct operating expense	$	(0.1)	$	(2.6)	$	(1.2)	$	(2.5)
Interest rate swaps
Gain (loss) recognized in accumulated other comprehensive income (loss)	$	1.6	$	(11.7)	$	(1.1)	$	24.7
Gain reclassified from accumulated other comprehensive income (loss) into interest expense	$	2.0	$	11.4	$	24.3	$	31.5
Derivatives not designated as cash flow hedges:
Interest rate swaps
Gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	$	1.4	$	(1.8)	$	(1.7)	$	(5.5)
Total direct operating expense on consolidated statements of operations	$	457.1	$	433.6	$	1,440.9	$	1,306.0
Total interest expense on consolidated statements of operations	$	58.5	$	55.5	$	180.1	$	157.1

The following table presents the

pre-tax

effect of the Company’s derivatives on the accompanying combined statements of operations and comprehensive income (loss) for the years ended March 31, 2024, 2023 and 2022:


	Year Ended March 31,
	2024			2023			2022
	(Amounts in millions)

Derivatives designated as cash flow hedges:
Forward exchange contracts
Gain (loss) recognized in accumulated other comprehensive income (loss)	$	(5.8	)	$	1.7		$	1.7
Loss reclassified from accumulated other comprehensive income (loss) into direct operating expense		(0.3	)		(0.3	)		(0.2	)
Interest rate swaps
Gain recognized in accumulated other comprehensive income (loss)	$	36.3		$	81.1		$	66.5
Gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense		41.8			1.4			(15.0	)
Derivatives not designated as cash flow hedges:
Interest rate swaps
Loss reclassified from accumulated other comprehensive income (loss) into interest expense	$	(7.2	)	$	(11.8	)	$	(33.8	)
Total direct operating expense on combined statements of operations	$	1,886.7		$	2,207.9		$	1,922.1
Total interest expense on combined statements of operations	$	222.5		$	162.6		$	115.0

LIONS GATE ENTERTAINMENT CORP [Member]

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative Instruments by Balance Sheet Location

As of December 31, 2024 and March 31, 2024, the Company had the following amounts recorded in the accompanying unaudited condensed consolidated balance sheets related to the Company’s use of derivatives:


	December 31, 2024
	Other Current Assets		Other Non-Current Assets		Other Accrued Liabilities (current)
	(Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts	$	1.9	$	—	$	—
Interest rate swaps		—		0.7		—

Fair value of derivatives	$	1.9	$	0.7	$	—


	March 31, 2024
	Other Current Assets		Other Accrued Liabilities (current)
	(Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts	$	—	$	2.8
Interest rate swaps		35.6		—

Fair value of derivatives	$	35.6	$	2.8

As of March 31, 2024 and 2023, the Company had the following amounts recorded in the accompanying consolidated balance sheets related to the Company’s use of derivatives:


	March 31, 2024
	Other Current Assets		Other Non-Current Assets		Other Accrued Liabilities
	(Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts	$	—	$	—	$	2.8
Interest rate swaps		35.6		—		—

Fair value of derivatives	$	35.6	$	—	$	2.8


	March 31, 2023
	Other Current Assets		Other Non-Current Assets		Other Accrued Liabilities
	(Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts	$	2.9	$	—	$	0.1
Interest rate swaps		—		41.1		—

Fair value of derivatives	$	2.9	$	41.1	$	0.1

Schedule of Derivative Instruments Outstanding

As of December 31, 2024, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 16 months from December 31, 2024):


December 31, 2024
Foreign Currency	Foreign Currency Amount				US Dollar Amount		Weighted Average Exchange Rate Per $1 USD
	(Amounts in millions)				(Amounts in millions)
British Pound Sterling		0.2	GBP	in exchange for	$	0.3		0.77	GBP
Czech Koruna		180.0	CZK	in exchange for	$	7.7		23.29	CZK
Euro		13.9	EUR	in exchange for	$	14.6		0.94	EUR
Canadian Dollar		8.5	CAD	in exchange for	$	6.2		1.37	CAD
Mexican Peso		20.7	MXN	in exchange for	$	1.0		20.43	MXN
Hungarian Forint		5,612.8	HUF	in exchange for	$	15.0		373.74	HUF
New Zealand Dollar		2.7	NZD	in exchange for	$	1.7		1.67	NZD

Designated Cash Flow Hedges.

As of March 31, 2024, the Company had the following

pay-fixed

interest rate swaps, which were designated as cash flow hedges outstanding (all related to the Company’s SOFR-based debt, see Note 6 and Note 7), and were terminated in December 2024, as further described below.

Designated Cash Flow Hedges at March

31, 2024:


Effective Date	Notional Amount		Fixed Rate Paid			Maturity Date
	(in millions)
May 23, 2018	$	300.0		2.915	%		March 24, 2025
May 23, 2018	$	700.0		2.915	%		March 24, 2025
June 25, 2018	$	200.0		2.723	%		March 23, 2025
July 31, 2018	$	300.0		2.885	%		March 23, 2025
December 24, 2018	$	50.0		2.744	%		March 23, 2025
December 24, 2018	$	100.0		2.808	%		March 23, 2025
December 24, 2018	$	50.0		2.728	%		March 23, 2025

Total	$	1,700.0

Designated Cash Flow Hedges at December

31, 2024:


Effective Date	Notional Amount		Fixed Rate Paid			Maturity Date
	(in millions)
August 15, 2024	$	65.0		4.045	%		September 15, 2026
August 15, 2024	$	77.5		3.803	%		August 15, 2026
August 15, 2024	$	77.5		3.810	%		September 15, 2026
December 15, 2024	$	125.0		3.970	%		December 15, 2026

Total	$	345.0

As of March 31, 2024, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 25 months from March 31, 2024):

March 31, 2024

Foreign Currency

Foreign Currency
Amount

US Dollar
Amount

Weighted Average
Exchange Rate Per $1

USD

(Amounts in millions)

(Amounts in
millions)

British Pound Sterling

0.5GBP

in exchange for

0.6

0.79GBP

Czech Koruna

180.0CZK

in exchange for

7.7

23.29CZK

Euro

0.6EUR

in exchange for

0.5

0.91EUR

Canadian Dollar

21.4CAD

in exchange for

15.9

1.34CAD

Mexican Peso

56.7MXN

in exchange for

3.0

18.95MXN

Hungarian Forint

1,450.0HUF

in exchange for

4.0

360.17HUF

New Zealand Dollar

73.9NZD

in exchange for

45.3

1.64NZD

Designated Cash Flow Hedges.

As of March 31, 2024 and March 31, 2023, the Company had the following

pay-fixed

interest rate swaps, which have been designated as cash flow hedges outstanding (all related to the Company’s SOFR-based debt, see Note 7 and Note 8):


Effective Date	Notional Amount		Fixed Rate Paid			Maturity Date
	(in millions)
May 23, 2018	$	300.0		2.915	%		March 24, 2025
May 23, 2018	$	700.0		2.915	%		March 24, 2025	(1)
June 25, 2018	$	200.0		2.723	%		March 23, 2025	(1)
July 31, 2018	$	300.0		2.885	%		March 23, 2025	(1)
December 24, 2018	$	50.0		2.744	%		March 23, 2025	(1)
December 24, 2018	$	100.0		2.808	%		March 23, 2025	(1)
December 24, 2018	$	50.0		2.728	%		March 23, 2025	(1)

Total	$	1,700.0

(1)	Represents the re-designated swaps as described in the May 2022 Transactions section below that were previously not designated cash flow hedges at March 31, 2022.

Schedule of Derivative Instruments, Statements of Financial Performance And Comprehensive Income (Loss), Location And Effect

The following table presents the

pre-tax

effect of the Company’s derivatives on the accompanying unaudited condensed consolidated statements of operations and comprehensive loss for the three and nine months ended December 31, 2024 and 2023:


	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2024			2023			2024			2023
	(Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts
Gain (loss) recognized in accumulated other comprehensive income (loss)	$	2.4		$	(4.3	)	$	3.5		$	(7.3	)
Loss reclassified from accumulated other comprehensive income (loss) into direct operating expense	$	(0.1	)	$	(2.6	)	$	(1.2	)	$	(2.5	)
Interest rate swaps
Gain (loss) recognized in accumulated other comprehensive income (loss)	$	1.6		$	(11.7	)	$	(1.1	)	$	24.7
Gain reclassified from accumulated other comprehensive income (loss) into interest expense	$	2.0		$	11.4		$	24.3		$	31.5
Derivatives not designated as cash flow hedges:
Interest rate swaps
Gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	$	1.4		$	(1.8	)	$	(1.7	)	$	(5.5	)
Total direct operating expense on consolidated statements of operations	$	567.3		$	510.8		$	1,639.7		$	1,549.1
Total interest expense on consolidated statements of operations	$	69.1		$	67.1		$	212.2		$	192.9

The following table presents the

pre-tax

effect of the Company’s derivatives on the accompanying consolidated statements of operations and comprehensive income (loss) for the years ended March 31, 2024, 2023 and 2022:


	Year Ended
	March 31,
	2024			2023			2022
	(Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts
Gain (loss) recognized in accumulated other comprehensive income (loss)	$	(5.8	)	$	1.7		$	1.7
Gain (loss) reclassified from accumulated other comprehensive income (loss) into direct operating expense		(0.3	)		(0.3	)		(0.2	)
Interest rate swaps
Gain recognized in accumulated other comprehensive income (loss)	$	36.3		$	81.1		$	66.5
Gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense		41.8			1.4			(15.0	)
Derivatives not designated as cash flow hedges:
Interest rate swaps
Loss reclassified from accumulated other comprehensive income (loss) into interest expense	$	(7.2	)	$	(11.8	)	$	(33.8	)
Total direct operating expense on consolidated statements of operations	$	2,189.2		$	2,312.5		$	2,064.2
Total interest expense on consolidated statements of operations	$	269.8		$	221.2		$	176.0

Entertainment One Film And Television Business [Member]

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative Instruments by Balance Sheet Location

At October 1, 2023 and December 25, 2022, the notional amounts and fair values of the Company’s foreign currency forward and option contracts designated as cash flow hedging instruments were as follows:


	2023					2022
(In thousands)	Notional Amount		Fair Value			Notional Amount		Fair Value
Hedged Item
Foreign Currency denominated expense		28,669		(44	)		78,298		1,706

At December 25, 2022 and December 26, 2021, the notional amounts and fair values of the Company’s foreign currency forward and option contracts designated as cash flow hedging instruments were as follows:


	2022				2021
(In thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value
Hedged Transaction

Foreign currency denominated expense		78,298		1,706		166,225		2,222

Summary of Combined Balance Sheets

The fair values of the Company’s foreign currency forward contracts designated as cash flow hedges are recorded in the Condensed Combined Balance Sheets at October 1, 2023 and December 25, 2022, as follows:


(In thousands)	2023			2022
Prepaid expenses and other current assets
Unrealized gains	$	55		$	2,051
Unrealized losses		—			—

Net unrealized gains	$	55		$	2,051

Accrued liabilities
Unrealized gains	$	—		$	—
Unrealized losses		(98	)		(292	)

Net unrealized losses	$	(98	)	$	(292	)

The fair values of the Company’s foreign currency forward contracts designated as cash flow hedges are recorded in the Combined Balance Sheets at December 25, 2022 and

December

26, 2021 as follows:


(In thousands)	2022		2021
Prepaid expenses and other current assets
Unrealized gains	$	2,051	$	2,739
Unrealized losses		—		—


(In thousands)	2022			2021
Net unrealized gains	$	2,051		$	2,739

Accrued liabilities
Unrealized gains	$	—		$	—
Unrealized losses		(292	)		(517	)

Net unrealized losses	$	(292	)	$	(517	)

Summary of Comprehensive Loss to Net Earnings

Net gains on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net loss for the nine months ended October 1, 2023 and September 25, 2022 as follows:


(In thousands)	2023		2022
Condensed Combined Statements of Operations Classification
Other expense, net		1,759		1,186

Net realized gains	$	1,759	$	1,186

Net gains on cash flow hedging activities have been reclassified from other comprehensive loss to net earnings for the years ended December 25, 2022 and December 26, 2021 as follows:


(In thousands)	2022		2021
Combined Statements of Operations Classification
Other income, net		2,124		(1,067	)

Net realized gains	$	2,124	$	(1,067	)

Summary of Company's Undesignated Derivative Financial Instruments

At October 1, 2023 and December 25, 2022, the fair value of the Company’s undesignated derivative financial instruments are recorded in the Condensed Combined Balance Sheets as follows:


(In thousands)	2023			2022
Prepaid expenses and other current assets
Unrealized gains	$	1,836		$	4,693
Unrealized losses		—			—

Net unrealized gains		1,836			4,693

Accrued liabilities
Unrealized gains		—			—
Unrealized losses		(4,577	)		(1,974	)

Net unrealized losses		(4,577	)		(1,974	)

Total unrealized (losses) gains, net	$	(2,741	)	$	2,719

At December 25, 2022 and December 26, 2021, the fair values of the Company’s undesignated derivative financial instruments are recorded in the Combined Balance Sheets as follows:


(In thousands)	2022			2021
Prepaid expenses and other current assets
Unrealized gains	$	4,693		$	1,555
Unrealized losses		—			—

Net unrealized gains		4,693			1,555

Accrued liabilities
Unrealized gains		—			—
Unrealized losses		(1,974	)		(1,096	)

Net unrealized losses		(1,974	)		(1,096	)

Total unrealized (losses) gains, net	$	2,719		$	459

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details