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Restructuring and Other (Tables) | 9 Months Ended
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Dec. 31, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Other | During the three and nine months ended December 31, 2022 and 2021, the Company also incurred certain other unusual charges or benefits, which are included in direct operating expense and distribution and marketing expense in the consolidated statements of operations as described below. The following table sets forth restructuring and other and these other unusual charges or benefits and the statement of operations line items they are included in for the three and nine months ended December 31, 2022 and 2021:
| Three Months Ended |  | Nine Months Ended
| December 31, |  | December 31,
| 2022 |  | 2021 |  | 2022 |  | 2021
| (Amounts in millions)
Restructuring and other: |  |  |  |  |  |  |
Content and other impairments(1) | $ | 80.8 |  |  | $ | — |  |  | $ | 299.7 |  |  | $ | — |
Severance(2) |  |  |  |  |  |  |
Cash | 2.4 |  |  | — |  |  | 14.8 |  |  | 3.8 |
Accelerated vesting on equity awards (see Note 12) | 1.5 |  |  | — |  |  | 2.1 |  |  | — |
Total severance costs | 3.9 |  |  | — |  |  | 16.9 |  |  | 3.8 |
COVID-19 related charges included in restructuring and other(3) | — |  |  | 0.2 |  |  | 0.1 |  |  | 0.9 |
Transaction and other costs (benefits)(4) | (9.4) |  |  | 0.3 |  |  | (0.2) |  |  | 2.5 |
Total Restructuring and Other | 75.3 |  |  | 0.5 |  |  | 316.5 |  |  | 7.2 |
Other unusual charges not included in restructuring and other or the Company's operating segments: |  |  |  |  |  |  |
Content charges included in direct operating expense(5) | — |  |  | — |  |  | 7.2 |  |  | — |
COVID-19 related charges (benefit) included in: |  |  |  |  |  |  |
Direct operating expense(6) | (1.8) |  |  | (2.8) |  |  | (8.8) |  |  | (2.3) |
Distribution and marketing expense | — |  |  | — |  |  | — |  |  | 0.3 |
Total restructuring and other and other unusual charges not included in restructuring and other | $ | 73.5 |  |  | $ | (2.3) |  |  | $ | 314.9 |  |  | $ | 5.2 |
_______________________ (1)Media Networks Restructuring: For the second quarter ended September 30, 2022, due to the macro and microeconomic conditions, including the competitive environment, continued inflationary trends and recessionary economies worldwide and its impact on the Company's growth in subscribers worldwide, the Company began a plan to restructure its LIONSGATE+ business (formerly STARZPLAY International). This restructuring includes exiting the business in seven international territories (France, Germany, Italy, Spain, Benelux, the Nordics and Japan). The Company's Starz domestic operations have also been impacted by these current market conditions, and the Company has revised its subscriber growth and forecasted cash flow assumptions and implemented certain cost-saving measures. These changes in forecasted cash flow resulted in an impairment of $1.475 billion of goodwill related to the Media Networks segment in the second quarter ended September 30, 2022, as discussed in Note 5. For the third quarter ended December 31, 2022, due to the continuing macro and microeconomic conditions which led to the LIONSGATE+ restructuring, the Company expanded its restructuring plan discussed above to identify additional cost-saving initiatives, which included a strategic review of content performance across Starz's domestic and international platforms, resulting in certain programming being removed from those platforms and written down to fair value. As a result of these restructuring initiatives, the Company recorded content impairment charges associated with impairment of programming related to the territories being exited and individual content abandonment upon removal of certain titles from the Starz platforms related to the Media Networks segment in the three and nine months ended December 31, 2022 of $80.8 million and $293.8 million, respectively. The Company is in the process of executing its LIONSGATE+ restructuring plan including exiting the territories discussed above and its strategic review of content performance for consideration of removal from the Company's various platforms and estimates it will incur additional charges ranging from approximately $100 million to $125 million related to certain contractual content commitments or programming content impairment charges, among other items, as the Company fully implements the plan. Of these total estimated future charges, the net future cash outlay is estimated to range from approximately $75 million to $100 million, which includes content commitments on content in territories being exited and estimates of payments on content that may be abandoned as part of the ongoing strategic review, as well as the incremental cost related to the restructuring. Of the content impairment charges recorded in the nine months ended December 31, 2022, approximately $85 million reflects the remaining amounts payable for this content. As the Company continues to fully implement the plan, including further strategic review of content performance, the Company may incur additional content impairment charges beyond the estimates provided. The Company expects the restructuring plan to be substantially completed by March 31, 2023. Other Impairments: Amounts in the nine months ended December 31, 2022 also include an impairment of an operating lease right-of-use asset related to the Studio business and corporate facilities amounting to $5.8 million associated with a portion of a facility lease that will no longer be utilized by the Company. The impairment reflects a decline in market conditions since the inception of the lease impacting potential sublease opportunities, and represents the difference between the estimated fair value, which was determined based on the expected discounted future cash flows of the lease asset, and the carrying value. (2)Severance costs were primarily related to the restructuring activities and other cost-saving initiatives. (3)Amounts represent certain incremental general and administrative costs associated with the COVID-19 global pandemic, such as costs related to transitioning the Company to a remote-work environment, costs associated with return-to-office safety protocols, and other incremental general and administrative costs associated with the COVID-19 global pandemic. (4)Transaction and other costs in the three and nine months ended December 31, 2022 and 2021 reflect transaction, integration and legal costs associated with certain strategic transactions, and restructuring activities and also include costs and benefits associated with certain legal matters. In the three and nine months ended December 31, 2022, these amounts include a benefit of $11.0 million for a settlement of a legal matter related to the Media Networks segment. (5)In the nine months ended December 31, 2022, in connection with certain management changes and changes in the theatrical marketplace in the Motion Picture segment, the Company wrote off approximately $7.2 million of development costs as a result of changes in strategy across its theatrical slate. These charges are excluded from segment results and included in amortization of investment in film and television programs in direct operating expense on the unaudited condensed consolidated statement of operations. (6)Amounts reflected in direct operating expense include incremental costs associated with the pausing and restarting of productions including paying/hiring certain cast and crew, maintaining idle facilities and equipment costs resulting from circumstances associated with the COVID-19 global pandemic, net of insurance recoveries of $2.8 million and $10.7 million, respectively, in the three and nine months ended December 31, 2022 (three and nine months ended December 31, 2021 - insurance recoveries of $5.0 million and $13.6 million, respectively). In the three and nine months ended December 31, 2022 and 2021, insurance recoveries exceeded the incremental costs expensed in the period, resulting in a net benefit included in direct operating expense. The Company is in the process of seeking additional insurance recovery for some of these costs. The ultimate amount of insurance recovery cannot be estimated at this time. Changes in the restructuring and other severance liability were as follows for the nine months ended December 31, 2022 and 2021:
| Nine Months Ended
| December 31,
| 2022 |  | 2021 |  |
| (Amounts in millions)
Severance liability |  |  |  |  |
Beginning balance | $ | 1.5 |  |  | $ | 5.7 |  |  |
Accruals | 14.8 |  |  | 3.8 |  |  |
Severance payments | (5.0) |  |  | (8.0) |  |  |
Ending balance(1) | $ | 11.3 |  |  | $ | 1.5 |  |  |
_______________________ (1)As of December 31, 2022, the remaining severance liability of approximately $11.3 million is expected to be paid in the next 12 months.

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- Definition Tabular disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 5.P.3) -URI https://asc.fasb.org/extlink&oid=115931487&loc=d3e140864-122747 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 5.P.4) -URI https://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 + Details
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