Restructuring and Other

9 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring and OtherRestructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable. During the three and nine months ended December 31, 2020, the Company also incurred certain other unusual charges related to the COVID-19 global pandemic, and during the three and nine months ended December 31, 2019, certain other unusual charges related to programming write-downs, which are included in direct operating and distribution and marketing expense in the unaudited condensed consolidated statement of operations. The following table sets forth restructuring and other and these unusual programming and COVID-19 related charges and the statement of operations line items they are included in for the three and nine months ended December 31, 2020 and 2019:


	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
	(Amounts in millions)
Restructuring and other:
Severance(1)
Cash	$	0.9	$	1.8	$	11.6	$	7.7
Accelerated vesting on equity awards (see Note 11)	—		—		2.8		0.3
Total severance costs	0.9		1.8		14.4		8.0
COVID-19 related charges included in restructuring and other(2)	0.8		—		1.6		—
Transaction and related costs(3)	0.7		1.9		2.9		8.8

Total Restructuring and Other	2.4		3.7		18.9		16.8

Programming and content charges and COVID-19 related charges not included in restructuring and other:
Programming and content charges included in direct operating expense(4)	—		74.0		—		74.0
COVID-19 related charges included in:
Direct operating expense(5)	8.6		—		36.6		—
Distribution and marketing expense(5)	5.4		—		16.1		—
Total restructuring and other, programming and content charges, and COVID-19 related charges	$	16.4	$	77.7	$	71.6	$	90.8

_______________________

(1)Severance costs in the three and nine months ended December 31, 2020 and 2019 were primarily related to restructuring activities in connection with cost-saving initiatives and recent acquisitions.

(2)During the three and nine months ended December 31, 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 nine months ended December 31, 2020 and 2019 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters.

(4)In the three months ended December 31, 2019, in connection with management changes, the Company implemented changes to its programming and broadcasting strategy including programming acquired or produced under prior management. As a result, the Company recorded certain programming and content charges of $74.0 million in the three and nine months ended December 31, 2019, which are included in direct operating expense in the unaudited condensed consolidated statement of operations.

(5)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 nine months ended December 31, 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 the pausing and restarting of productions including certain cast and crew, idle facilities and equipment costs, and in the nine months ended December 31, 2020 include film impairment due to changes in performance expectations 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 no material amounts of insurance proceeds have been recorded in the consolidated financial statements.

Changes in the restructuring and other severance liability were as follows for the nine months ended December 31, 2020 and 2019:


	Nine Months Ended
	December 31,
	2020		2019
	(Amounts in millions)
Severance liability
Beginning balance	$	11.1	$	14.7
Accruals	11.6		17.0
Severance payments	(15.7)		(13.0)

Ending balance(1)	$	7.0	$	18.7

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(1)As of December 31, 2020, the remaining severance liability of approximately $7.0 million is expected to be paid in the next 12 months.