XML 39 R24.htm IDEA: XBRL DOCUMENT
v3.22.1

Segment Information | 12 Months Ended
--- | ---
Mar. 31, 2022
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company’s reportable segments have been determined based on the distinct nature of their operations, the Company's internal management structure, and the financial information that is evaluated regularly by the Company's chief operating decision maker. The Company has three reportable business segments: (1) Motion Picture, (2) Television Production and (3) Media Networks. We refer to our Motion Picture and Television Production segments collectively as our Studio Business. Studio Business: Motion Picture. Motion Picture consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired. Television Production. Television Production consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series, and non-fiction programming. Television Production includes the licensing of Starz original series productions to Starz Networks and STARZPLAY International, and the ancillary market distribution of Starz original productions and licensed product. Additionally, the Television Production segment includes the results of operations of 3 Arts Entertainment. Media Networks Business: Media Networks. Media Networks consists of the following product lines (i) Starz Networks, which includes the domestic distribution of STARZ branded premium subscription video services through OTT platforms and Distributors and on a direct-to-consumer basis through the Starz App and (ii) STARZPLAY International, which represents revenues primarily from the OTT distribution of the Company's STARZ branded premium subscription video services outside of the U.S. Through March 31, 2021, Media Networks also included Other Streaming Services, which represented primarily the Company's formerly majority owned premium Spanish language streaming services business, Pantaya. The Company sold its interest in Pantaya on March 31, 2021 (see Note 2). In the ordinary course of business, the Company's reportable segments enter into transactions with one another. The most common types of intersegment transactions include licensing motion pictures or television programming (including Starz original productions) from the Motion Picture and Television Production segments to the Media Networks segment. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses, assets, or liabilities recognized by the segment that is the counterparty to the transaction) are eliminated in consolidation and, therefore, do not affect consolidated results. Segment information is presented in the table below:
| Year Ended
| March 31,
| 2022 |  | 2021 |  | 2020
| (Amounts in millions)
Segment revenues |  |  |  |  |
Studio Business: |  |  |  |  |
Motion Picture | $ | 1,185.3 |  |  | $ | 1,081.1 |  |  | $ | 1,670.9 |
Television Production | 1,531.0 |  |  | 831.8 |  |  | 1,001.3 |
Total Studio Business | 2,716.3 |  |  | 1,912.9 |  |  | 2,672.2 |
Media Networks | 1,536.2 |  |  | 1,562.7 |  |  | 1,486.8 |
Intersegment eliminations | (648.2) |  |  | (204.1) |  |  | (269.0) |
| $ | 3,604.3 |  |  | $ | 3,271.5 |  |  | $ | 3,890.0 |
Intersegment revenues |  |  |  |  |
Studio Business: |  |  |  |  |
Motion Picture | $ | 38.0 |  |  | $ | 19.8 |  |  | $ | 17.7 |
Television Production | 610.2 |  |  | 184.3 |  |  | 248.9 |
Total Studio Business | 648.2 |  |  | 204.1 |  |  | 266.6 |
Media Networks | — |  |  | — |  |  | 2.4 |
| $ | 648.2 |  |  | $ | 204.1 |  |  | $ | 269.0 |
Gross contribution |  |  |  |  |
Studio Business: |  |  |  |  |
Motion Picture | $ | 356.0 |  |  | $ | 401.8 |  |  | $ | 313.5 |
Television Production | 124.1 |  |  | 126.3 |  |  | 90.7 |
Total Studio Business | 480.1 |  |  | 528.1 |  |  | 404.2 |
Media Networks | 243.2 |  |  | 383.4 |  |  | 380.5 |
Intersegment eliminations | (2.7) |  |  | (14.1) |  |  | 6.8 |
| $ | 720.6 |  |  | $ | 897.4 |  |  | $ | 791.5 |
Segment general and administration |  |  |  |  |
Studio Business: |  |  |  |  |
Motion Picture | $ | 93.1 |  |  | $ | 106.2 |  |  | $ | 104.8 |
Television Production | 40.2 |  |  | 42.7 |  |  | 37.3 |
Total Studio Business | 133.3 |  |  | 148.9 |  |  | 142.1 |
Media Networks | 88.0 |  |  | 93.9 |  |  | 87.5 |
| $ | 221.3 |  |  | $ | 242.8 |  |  | $ | 229.6 |
Segment profit |  |  |  |  |
Studio Business: |  |  |  |  |
Motion Picture | $ | 262.9 |  |  | $ | 295.6 |  |  | $ | 208.7 |
Television Production | 83.9 |  |  | 83.6 |  |  | 53.4 |
Total Studio Business | 346.8 |  |  | 379.2 |  |  | 262.1 |
Media Networks | 155.2 |  |  | 289.5 |  |  | 293.0 |
Intersegment eliminations | (2.7) |  |  | (14.1) |  |  | 6.8 |
| $ | 499.3 |  |  | $ | 654.6 |  |  | $ | 561.9 |
The Company's primary measure of segment performance is segment profit. Segment profit is defined as gross contribution (revenues, less direct operating and distribution and marketing expense) less segment general and administration expenses. Segment profit excludes, when applicable, corporate general and administrative expense, restructuring and other costs, share-based compensation, certain programming and content charges as a result of changes in management and/or programming and content strategy, certain charges related to the COVID-19 global pandemic, charges related to Russia's invasion of Ukraine, and purchase accounting and related adjustments. The Company believes the presentation of segment profit is relevant and useful for investors because it allows investors to view segment performance in a manner similar to the primary method used by the Company's management and enables them to understand the fundamental performance of the Company's businesses. Media Networks gross contribution and segment profit for the fiscal year ended March 31, 2020 includes a benefit of $39.7 million in direct operating expenses associated with the modification of a content licensing arrangement, net of amortization for related changes in content availability and air dates. The reconciliation of total segment profit to the Company’s loss before income taxes is as follows:
| Year Ended
| March 31,
| 2022 |  | 2021 |  | 2020
| (Amounts in millions)
Company’s total segment profit | $ | 499.3 |  |  | $ | 654.6 |  |  | $ | 561.9 |
Corporate general and administrative expenses | (97.1) |  |  | (113.7) |  |  | (99.7) |
Gain on sale of Pantaya(1) | — |  |  | 44.1 |  |  | — |
Adjusted depreciation and amortization(2) | (43.0) |  |  | (44.3) |  |  | (41.8) |
Restructuring and other(3) | (16.8) |  |  | (24.7) |  |  | (24.3) |
COVID-19 related benefit (charges) included in direct operating expense and distribution and marketing expense(4) | 3.4 |  |  | (67.5) |  |  | (50.2) |
Programming and content charges(5) | (36.9) |  |  | — |  |  | (76.5) |
Charges related to Russia's invasion of Ukraine(6) | (5.9) |  |  | — |  |  | — |
Adjusted share-based compensation expense(7) | (100.0) |  |  | (85.5) |  |  | (50.0) |
Purchase accounting and related adjustments(8) | (194.0) |  |  | (192.4) |  |  | (216.6) |
Operating income | 9.0 |  |  | 170.6 |  |  | 2.8 |
Interest expense | (176.0) |  |  | (181.5) |  |  | (191.3) |
Interest and other income | 30.8 |  |  | 5.8 |  |  | 8.8 |
Other expense | (10.9) |  |  | (6.7) |  |  | (11.1) |
Gain (loss) on extinguishment of debt | (28.2) |  |  | — |  |  | 5.4 |
Gain (loss) on investments | 1.3 |  |  | 0.5 |  |  | (0.5) |
Equity interests loss | (3.0) |  |  | (6.1) |  |  | (17.2) |
Loss before income taxes | $ | (177.0) |  |  | $ | (17.4) |  |  | $ | (203.1) |
___________________ (1)Represents the gain before income taxes on the sale of the Company's majority interest in Pantaya on March 31, 2021. This gain amount is net of $69.0 million of goodwill allocated from the Media Networks segment as required under the applicable accounting guidance. Pantaya was previously reflected in the Company's Media Networks segment. See Note 2 for further information. (2)Adjusted depreciation and amortization represents depreciation and amortization as presented on our consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below:
| Year Ended
| March 31,
| 2022 |  | 2021 |  | 2020
| (Amounts in millions)
Depreciation and amortization | $ | 177.9 |  |  | $ | 188.5 |  |  | $ | 197.7 |
Less: Amount included in purchase accounting and related adjustments | (134.9) |  |  | (144.2) |  |  | (155.9) |
Adjusted depreciation and amortization | $ | 43.0 |  |  | $ | 44.3 |  |  | $ | 41.8 |
(3)Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 15). (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, during fiscal 2022, the Company has incurred a benefit of $3.4 million, net of insurance recoveries, in incremental direct operating and distribution and marketing expense (2021 - charges of $67.5 million; 2020 - charges of $50.2 million) (see Note 15). These charges are excluded from segment operating results. (5)Programming and content charges represent certain charges included in direct operating expense in the consolidated statements of operations, and excluded from segment operating results (see Note 3 and Note 15 for further information). (6)Amounts represent charges related to Russia's invasion of Ukraine, primarily related to bad debt reserves for accounts receivable from customers in Russia, included in direct operating expense in the consolidated statements of operations, and excluded from segment operating results. (7)The following table reconciles total share-based compensation expense to adjusted share-based compensation expense:
| Year Ended
| March 31,
| 2022 |  | 2021 |  | 2020
| (Amounts in millions)
Total share-based compensation expense | $ | 100.0 |  |  | $ | 89.0 |  |  | $ | 50.6 |
Less: |  |  |  |  |
Amount included in restructuring and other(i) | — |  |  | (3.5) |  |  | (0.6) |
Adjusted share-based compensation | $ | 100.0 |  |  | $ | 85.5 |  |  | $ | 50.0 |
(i)Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements. (8)Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements:
| Year Ended
| March 31,
| 2022 |  | 2021 |  | 2020
| (Amounts in millions)
Purchase accounting and related adjustments: |  |  |  |  |
Direct operating | $ | 0.4 |  |  | $ | 1.0 |  |  | $ | 8.1 |
General and administrative expense | 58.7 |  |  | 47.2 |  |  | 52.6 |
Depreciation and amortization | 134.9 |  |  | 144.2 |  |  | 155.9 |
| $ | 194.0 |  |  | $ | 192.4 |  |  | $ | 216.6 |
See Note 12 for revenues by media or product line as broken down by segment for the fiscal years ended March 31, 2022, 2021, and 2020. The following table reconciles segment general and administration to the Company’s total consolidated general and administration expense:
| Year Ended
| March 31,
| 2022 |  | 2021 |  | 2020
| (Amounts in millions)
General and administration |  |  |  |  |
Segment general and administrative expenses | $ | 221.3 |  |  | $ | 242.8 |  |  | $ | 229.6 |
Corporate general and administrative expenses | 97.1 |  |  | 113.7 |  |  | 99.7 |
Share-based compensation expense included in general and administrative expense | 98.3 |  |  | 82.9 |  |  | 48.5 |
Purchase accounting and related adjustments | 58.7 |  |  | 47.2 |  |  | 52.6 |
| $ | 475.4 |  |  | $ | 486.6 |  |  | $ | 430.4 |
The reconciliation of total segment assets to the Company’s total consolidated assets is as follows:
| March 31, 2022 |  | March 31, 2021
| (Amounts in millions)
Assets |  |  |
Motion Picture | $ | 1,622.6 |  |  | $ | 1,212.4 |
Television Production | 1,978.9 |  |  | 1,757.9 |
Media Networks | 4,706.7 |  |  | 4,399.3 |
Other unallocated assets(1) | 683.0 |  |  | 936.6 |
| $ | 8,991.2 |  |  | $ | 8,306.2 |
_____________________ (1)Other unallocated assets primarily consist of cash, other assets and investments. The following table sets forth acquisition of investment in films and television programs and program rights, as broken down by segment for the years ended March 31, 2022, 2021 and 2020:
| Year Ended
| March 31,
| 2022 |  | 2021 |  | 2020
| (Amounts in millions)
Acquisition of investment in films and television programs and program rights |  |  |  |  |
Motion Picture | $ | 465.0 |  |  | $ | 339.8 |  |  | $ | 349.8 |
Television Production | 1,287.0 |  |  | 856.1 |  |  | 743.3 |
Media Networks | 1,134.6 |  |  | 625.1 |  |  | 640.7 |
Intersegment eliminations | (674.9) |  |  | (204.3) |  |  | (188.5) |
| $ | 2,211.7 |  |  | $ | 1,616.7 |  |  | $ | 1,545.3 |
The following table sets forth capital expenditures, as broken down by segment for the years ended March 31, 2022, 2021 and 2020:
| Year Ended
| March 31,
| 2022 |  | 2021 |  | 2020
| (Amounts in millions)
Capital expenditures |  |  |  |  |
Motion Picture | $ | — |  |  | $ | — |  |  | $ | — |
Television Production | 0.4 |  |  | 0.4 |  |  | 1.2 |
Media Networks | 27.0 |  |  | 24.9 |  |  | 22.4 |
Corporate(1) | 5.7 |  |  | 9.7 |  |  | 7.5 |
| $ | 33.1 |  |  | $ | 35.0 |  |  | $ | 31.1 |
_____________________ (1)Represents unallocated capital expenditures primarily related to the Company's corporate headquarters. Revenue by geographic location, based on the location of the customers, with no other foreign country individually comprising greater than 10% of total revenue, is as follows:
| Year Ended
| March 31,
| 2022 |  | 2021 |  | 2020
| (Amounts in millions)
Revenue |  |  |  |  |
Canada | $ | 56.8 |  |  | $ | 43.3 |  |  | $ | 43.9 |
United States | 3,016.8 |  |  | 2,863.3 |  |  | 3,321.9 |
Other foreign | 530.7 |  |  | 364.9 |  |  | 524.2 |
| $ | 3,604.3 |  |  | $ | 3,271.5 |  |  | $ | 3,890.0 |
Long-lived assets by geographic location are as follows:
| March 31, 2022 |  | March 31, 2021
| (Amounts in millions)
Long-lived assets(1) |  |  |
United States | $ | 3,101.3 |  |  | $ | 2,279.7 |
Other foreign | 164.2 |  |  | 162.2 |
| $ | 3,265.5 |  |  | $ | 2,441.9 |
_____________ (1)Long-lived assets represents total assets less the following: current assets, investments, long-term receivables, interest rate swaps, intangible assets, goodwill and deferred tax assets. For the year ended March 31, 2022, the Company had revenue from one individual customer which represented greater than 10% of consolidated revenues, amounting to $639.2 million, primarily related to the Company's Media Networks and Motion Picture segments (2021 - revenue from one individual customer which represented greater than 10% of consolidated revenues, amounting to $638.8 million, primarily related to the Company's Media Networks and Motion Picture segments; 2020 - revenue from one individual customer which represented greater than 10% of consolidated revenues, amounting to $438.6 million, primarily related to the Company's Media Networks and Motion Picture segments). As of March 31, 2022 and 2021, the Company did not have any accounts receivable due from customers which individually represented greater than 10% of total consolidated accounts receivable.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration