Lionsgate Studios Corp.LION

Lionsgate Studios Corp. Leases Disclosure

10-KFiled May 27, 20262 min read
Leases
The Company has operating leases primarily for office space, studio facilities, and other equipment. The Company’s leases have remaining lease terms of up to approximately 10.25 years.

Total lease cost components were as follows:
Year Ended March 31,
202620252024
(Amounts in millions)
Operating lease cost(1)
$67.6 $66.5 $48.7 
Short-term lease cost(2)
74.5 161.2 96.2 
Variable lease cost(3)
3.3 4.3 3.0 
Total lease cost$145.4 $232.0 $147.9 
 ______________________
(1)Operating lease costs primarily represent the amortization of right-of-use assets and are included in the “other non-cash items” line on the consolidated statements of cash flows. Amounts include costs capitalized during the period for leased assets used in the production of film and television programs.
(2)Short-term lease costs primarily consist of facilities and equipment leases associated with film and television productions and are capitalized when incurred.
(3)Variable lease costs primarily consist of insurance, taxes, maintenance and other operating costs.

Supplemental balance sheet information related to leases was as follows:
CategoryBalance Sheet LocationMarch 31,
2026		March 31,
2025
(Amounts in millions)
Operating Leases
Right-of-use assetsOther noncurrent assets$262.9 $294.1 
Lease liabilities (current)Accrued expenses and other current liabilities$39.8 $44.0 
Lease liabilities (noncurrent)Other noncurrent liabilities261.4 290.7 
$301.2 $334.7 
March 31,
2026		March 31,
2025
Operating leases
Weighted average remaining lease term (in years)8.28.5
Weighted average discount rate5.57 %5.36 %

The expected future payments related to the Company’s lease liabilities as of March 31, 2026 were as follows:
Operating
Leases
(Amounts in millions)
Year ending March 31,
2027$52.7 
202850.8 
202947.4 
203040.2 
203132.9 
Thereafter153.9 
Total lease payments377.9 
Less imputed interest(76.7)
Total lease payments, net$301.2 

As of March 31, 2026, the Company has entered into certain leases that have not yet commenced primarily related to studio facilities, for which construction related to those leases has not yet been completed. The leases are for terms up to 12.25 years, commencing upon completion of construction (currently expected to be ranging from calendar years 2026 to 2027). The leases include an option to extend the initial term for an additional 10 years to 12 years. The total minimum lease payments under these leases in aggregate are approximately $247.4 million.

Historical Timeline

Fiscal YearFiled
2026May 27, 2026Showing above
2025May 30, 2025

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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