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Segment Information (Tables)

3 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment information is presented in the table below:

									Three Months Ended
									June 30,
															2022						2021
															(Amounts in millions)
Segment revenues
Studio Business:
Motion Picture															$	278.8					$	291.2
Television Production															432.3						386.1
Total Studio Business															711.1						677.3
Media Networks															381.2						382.3
Intersegment eliminations															(198.4)						(158.4)
															$	893.9					$	901.2
Intersegment revenues
Studio Business:
Motion Picture															$	3.5					$	4.4
Television Production															194.9						154.0
Total Studio Business															198.4						158.4
Media Networks															—						—
															$	198.4					$	158.4
Gross contribution
Studio Business:
Motion Picture															$	73.1					$	68.7
Television Production															30.7						13.0
Total Studio Business															103.8						81.7
Media Networks															(13.5)						109.3
Intersegment eliminations															(5.1)						8.6
															$	85.2					$	199.6
Segment general and administration
Studio Business:
Motion Picture															$	22.6					$	24.4
Television Production															11.1						10.0
Total Studio Business															33.7						34.4
Media Networks															23.5						21.1
															$	57.2					$	55.5
Segment profit
Studio Business:
Motion Picture															$	50.5					$	44.3
Television Production															19.6						3.0
Total Studio Business															70.1						47.3
Media Networks															(37.0)						88.2
Intersegment eliminations															(5.1)						8.6
															$	28.0					$	144.1

Reconciliation Of Total Segment Profit To The Company's Income (Loss) Before Income Taxes

The reconciliation of total segment profit to the Company’s loss before income taxes is as follows:

									Three Months Ended
									June 30,
															2022						2021
															(Amounts in millions)
Company’s total segment profit															$	28.0					$	144.1
Corporate general and administrative expenses															(23.0)						(24.3)
Adjusted depreciation and amortization(1)															(10.1)						(10.1)
Restructuring and other(2)															(8.0)						(3.2)
COVID-19 related benefit (charges) included in direct operating expense(3)															1.0						(1.6)
Adjusted share-based compensation expense(4)															(7.8)						(34.6)
Purchase accounting and related adjustments(5)															(48.3)						(50.0)
Operating income (loss)															(68.2)						20.3
Interest expense															(46.1)						(41.7)
Interest and other income															1.3						3.9
Other expense															(5.0)						(1.7)
Loss on extinguishment of debt															(1.3)						(26.6)
Gain (loss) on investments															1.8						(0.1)
Equity interests income															0.9						0.7
Loss before income taxes															$	(116.6)					$	(45.2)

___________________

(1)Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed 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:

									Three Months Ended
									June 30,
															2022						2021
															(Amounts in millions)
Depreciation and amortization															$	42.4					$	43.3
Less: Amount included in purchase accounting and related adjustments															(32.3)						(33.2)
Adjusted depreciation and amortization															$	10.1					$	10.1

(2)Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 13).

(3)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 the three months ended June 30, 2022, the Company has incurred a benefit of $1.0 million, net of insurance recoveries, in incremental direct operating expense (three months ended June 30, 2021 - charges of $1.6 million) (see Note 13). These charges are excluded from segment operating results.

(4)The following table reconciles total share-based compensation expense to adjusted share-based compensation expense:

									Three Months Ended
									June 30,
															2022						2021
															(Amounts in millions)
Total share-based compensation expense															$	8.4					$	34.6
Less:
Amount included in restructuring and other(i)															(0.6)						—
Adjusted share-based compensation															$	7.8					$	34.6

(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.

(5)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:

									Three Months Ended
									June 30,
															2022						2021
															(Amounts in millions)
Purchase accounting and related adjustments:
Direct operating															$	—					$	0.4
General and administrative expense															16.0						16.4
Depreciation and amortization															32.3						33.2
															$	48.3					$	50.0

Reconciliation of Segment General and Administrative Expense to Consolidated

The following table reconciles segment general and administration expense to the Company's total consolidated general and administration expense:

									Three Months Ended
									June 30,
															2022						2021
															(Amounts in millions)
General and administration
Segment general and administrative expenses															$	57.2					$	55.5
Corporate general and administrative expenses															23.0						24.3
Share-based compensation expense included in general and administrative expense															7.5						34.4
Purchase accounting and related adjustments															16.0						16.4
															$	103.7					$	130.6

Reconciliation of Assets from Segment to Consolidated

The reconciliation of total segment assets to the Company’s total consolidated assets is as follows:

			June 30, 2022						March 31, 2022
			(Amounts in millions)
Assets
Motion Picture			$	1,638.7					$	1,622.6
Television Production			2,026.0						1,978.9
Media Networks			4,726.6						4,706.7
Other unallocated assets(1)			696.7						683.0
			$	9,088.0					$	8,991.2

_____________________

(1)Other unallocated assets primarily consist of cash, other assets and investments.

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Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets.

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