Consolidated Statement of Cash

Balance Sheet Flows

LINE ITEM 2019 2018 LINE ITEM 2019 2018 2017

Cash and cash equivalents 378.1 321.9 Operating Activities:

Restricted cash — 2.8 Net income 468.1 14.5 42.7

Accounts receivable, net 946.0 908.1 Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Program rights 53.2 261.7
Depreciation and amortization 159.0 63.1 13.1
Other current assets 195.8 195.9
Amortization of films and television programs
Total current assets 1,773.1 1,690.4 and program rights 1,641.7 1,414.0 1,029.1

Investment in films and television Interest on dissenting shareholders’ liability 56.5 15.5 —
programs and program rights, net 1,692.0 1,729.5
Amortization of debt discount and financing costs 14.3 12.9 9.2
Property and equipment, net 161.7 165.5
Non-cash share-based compensation 88.4 76.9 77.9
Investments 164.9 371.5
Other non-cash items 20.1 4.3 2.0
Intangible assets 1,937.7 2,046.7
Distribution from equity method investee — 14.0 —
Goodwill 2,740.8 2,700.5
Gain on Starz investment — (20.4) —
Other assets 458.6 472.8
Loss on extinguishment of debt 35.7 40.4 —
Deferred tax assets 38.8 20.0
Equity interests loss (income) 52.8 (10.7) (44.2)

TOTAL ASSETS 8,967.6 9,196.9 Gain on sale of equity interest in EPIX (201.0) — —

Impairment of long-term investments and other assets 29.2 — —

Deferred income tax benefit (299.5) (163.4) (85.1)

P. A24
18 2019
 Income Statement TOTAL REVENUE
(IN MILLIONS)
$ 4 ,1 2 9.1

LINE ITEM 2019 2018 2017

Operating income (loss) 248.7 (16.3) (25.0) NET INCOME $ 4 6 8 .1

Interest expense (IN MILLIONS)

Interest expense (137.2) (99.7) (54.9)

Interest on dissenting shareholders’ liability (56.5) (15.5) —

Total interest expense (193.7) (115.2) (54.9)

Interest and other income 10.4 6.4 1.9 Depreciation

and amortization Restructuring and other
Loss on extinguishment of debt (35.7) (40.4) — 4.2% 1.5%

Gain on sale of equity interest in EPIX 201.0 — —

General and
Gain on Starz investment — 20.4 — administration Direct operating
11.7% 59.5%
Impairment of long-term investments and other assets (29.2) — —

Equity interests income (loss) (52.8) 10.7 44.2

Income (loss) before income taxes 148.7 (134.4) (33.8)

Income tax benefit 319.4 148.9 76.5

Net income 468.1 14.5 42.7

Net loss attributable to noncontrolling interests 5.5 0.3 7.5

EXPENSES
(IN MILLIONS)

R
evenue from the theatrical release (when it is available for sale by
NOTE ON of feature films is recognized at the customer). Under revenue sharing

REVENUE the time of exhibition based on the

Company’s participation in box office
arrangements, including digital and
electronic-sell-through (“EST”) ar-
receipts. Revenue from the sale of rangements, such as download-to-own,
DVDs and Blu-ray discs in the retail download-to-rent, video-on-demand and
market, net of an allowance for esti- subscription video-on-demand, revenue
mated returns and other allowances, is recognized when the Company is en-
Distribution
is recognized on the later of receipt titled to receipts and such receipts
and marketing
by the customer or “street date” are determinable.
23.1%

P. A24
20 2019