Restructuring and Other (Tables)

6 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable. During the three and six months ended September 30, 2020, the Company also incurred certain other unusual charges related to the COVID-19 global pandemic, which are included in direct operating and distribution and marketing expense in the unaudited consolidated statement of operations. The following table sets forth restructuring and other and these COVID-19 related charges and the statement of operations line items they are included in for the three and six months ended September 30, 2020 and 2019:


	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(Amounts in millions)
Restructuring and other:
Severance(1)
Cash	$	8.5	$	2.2	$	10.6	$	5.9
Accelerated vesting on equity awards (see Note 11)	2.8		—		2.8		0.3
Total severance costs	11.3		2.2		13.4		6.2
COVID-19 related costs included in restructuring and other(2)	0.3		—		0.8		—
Transaction and related costs(3)	1.8		5.4		2.2		6.9

Total Restructuring and Other	13.4		7.6		16.4		13.1

COVID-19 related charges included in:

Direct operating expense(4)	22.3		—		28.1		—
Distribution and marketing expense(4)	6.1		—		10.7		—
Total restructuring and other and COVID-19 related costs	$	41.8	$	7.6	$	55.2	$	13.1

_______________________

(1)Severance costs in the three and six months ended September 30, 2020 and 2019 were primarily related to restructuring activities in connection with cost-saving initiatives and recent acquisitions.

(2)During the three and six months ended September 30, 2020, the Company has incurred certain costs including costs primarily related to transitioning the Company to a remote-work environment and other incremental costs associated with the COVID-19 global pandemic.

(3)Transaction and related costs in the three and six months ended September 30, 2020 and 2019 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters.

(4)In connection with the disruptions associated with the COVID-19 global pandemic and measures to prevent its spread and mitigate its effects both domestically and internationally, and the related economic disruption, including the worldwide closure of theaters, international travel restrictions and the pausing of motion picture and television productions, during the three and six months ended September 30, 2020 the Company incurred certain incremental costs which were expensed in the period. The costs included in direct operating expense primarily represent incremental costs associated with film impairment due to changes in performance expectations, the pausing and restarting of productions including certain cast and crew, idle facilities and equipment costs resulting from circumstances associated with the COVID-19 global pandemic. In addition, the costs included in distribution and marketing expense primarily consist of contractual marketing spends for film releases and events that have been canceled or delayed and will provide no economic benefit. The Company is in the process of seeking insurance recovery for some of these costs, which cannot be estimated at this time, and therefore have not been recorded in the consolidated financial statements.

Changes in the restructuring and other severance liability were as follows for the six months ended September 30, 2020 and 2019:


	Six Months Ended
	September 30,
	2020		2019
	(Amounts in millions)
Severance liability
Beginning balance	$	11.1	$	21.2
Accruals	10.6		5.9
Severance payments	(10.8)		(18.8)

Ending balance(1)	$	10.9	$	8.3

_______________________

(1)As of September 30, 2020, the remaining severance liability of approximately $10.9 million is expected to be paid in the next 12 months.