Although not definitive, it is very common in most businesses to be billed along with shipments. This would usually give retailers about 30 days to pay their bills. This seems realistic to me and would explain the delay in LGF receiving "most" of their HG DVD money.
I verified their DVD process from the 10-K. "We distribute or sell our titles DIRECTLY to mass merchandisers such as Wal-Mart, K-Mart, Best Buy, Target and Costco, and others who BUY LARGE VOLUMES of our DVDs and Blu-ray discs to sell directly to consumers".
No question that the REVENUES from HG dvds should be reflected in the September Quarter. The CASH received from these merchandisers will flow into October.
I estimate $10 per DVD was earned based on the industry write-ups on DVD distribution posted on this thread, this will be about $50+ million for HG DVDs alone, representing .38 Before tax profit per share.
I am less concerned on the timing of cash payments than the timing of when the revenues from the DVDs are recorded. I was anticipating at least $50million in DVD profit this quarter, not in October. I know that most operations book revenues according to GAAP when the products are sold, but the movie business has proven to be its own animal when it comes to accounting methods relating to revenue and expense recognition. My gut tells me that the revenue will be reflected in this quarter and of course the cash receipts will be reflected next quarter due to timing of accounts receivable collection. Anyone care to express their reasoning why it should not be this way for the movie industry?