STARZ ENTERTAINMENT CORP /CN/STRZ

STARZ ENTERTAINMENT CORP /CN/ Leases Disclosure

10-KFiled Jun 26, 20252 min read
Leases
The Company has operating leases primarily for office space. The Company's leases have remaining lease terms of up to approximately 9.5 years.
The following disclosures are based on leases whereby the Company has a contract for which the leased asset and lease liability are recognized on the Company's combined balance sheets. The amounts presented are not necessarily indicative of future lease arrangements and do not necessarily reflect the results that the Company would have experienced as a standalone company for the periods presented.
The components of lease cost from continuing operations were as follows:
Year Ended
March 31,
202520242023
(Amounts in millions)
Operating lease cost(1)
$9.7 $12.7 $13.1 
Variable lease cost(2)
1.2 0.4 0.4 
Total lease cost$10.9 $13.1 $13.5 
___________________
(1)Operating lease cost amounts primarily represent the amortization of right-of-use assets and are included in the “other amortization” line of the combined statements of cash flows. Amounts include costs capitalized during the period for leased assets used in the production of film and television programs.
(2)Variable lease cost primarily consists of insurance, taxes, maintenance and other operating costs.
Supplemental balance sheet information related to leases was as follows:
CategoryLocation on Balance SheetMarch 31,
2025		March 31,
2024
Operating Leases(Amounts in millions)
Right-of-use assetsOther assets- non-current$37.3 $44.5 
Lease liabilities (current)Other accrued liabilities$9.9 $9.0 
Lease liabilities (non-current)Other liabilities- non-current 45.6 55.4 
$55.5 $64.4 
March 31,
2025		March 31,
2024
Weighted average remaining lease term (in years):
Operating leases6.37.1
Weighted average discount rate:
Operating leases4.05 %4.11 %
The expected future net payments relating to the Company's lease liabilities at March 31, 2025 are as follows:
Operating
Leases
(Amounts in millions)
Year ending March 31,
2026$11.8 
202712.4 
202812.4 
20296.0 
20303.6 
Thereafter16.4 
Total lease payments62.6 
Less imputed interest(7.1)
Total$55.5 

Historical Timeline

Fiscal YearFiled
2025Jun 26, 2025Showing above
2024May 30, 2024
2023May 25, 2023
2022May 26, 2022
2021May 28, 2021
2020May 27, 2020

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.

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