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Segment Information (Tables)

9 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment information is presented in the table below:

			Three Months Ended												Nine Months Ended
			December 31,												December 31,
			2022						2021						2022						2021
			(Amounts in millions)
Segment revenues
Studio Business:
Motion Picture			$	288.8					$	275.3					$	791.6					$	897.3
Television Production			605.4						438.6						1,468.6						1,160.8
Total Studio Business			894.2						713.9						2,260.2						2,058.1
Media Networks			380.3						388.9						1,157.5						1,155.9
Intersegment eliminations			(274.4)						(217.4)						(648.6)						(539.6)
			$	1,000.1					$	885.4					$	2,769.1					$	2,674.4
Intersegment revenues
Studio Business:
Motion Picture			$	16.2					$	28.2					$	30.0					$	35.4
Television Production			258.2						189.2						618.6						504.2
Total Studio Business			274.4						217.4						648.6						539.6
Media Networks			—						—						—						—
			$	274.4					$	217.4					$	648.6					$	539.6
Gross contribution
Studio Business:
Motion Picture			$	97.0					$	90.2					$	248.9					$	283.3
Television Production			82.3						28.6						136.6						79.6
Total Studio Business			179.3						118.8						385.5						362.9
Media Networks			72.4						49.5						104.0						187.1
Intersegment eliminations			(8.4)						(1.9)						(31.3)						3.7
			$	243.3					$	166.4					$	458.2					$	553.7
Segment general and administration
Studio Business:
Motion Picture			$	20.5					$	22.7					$	66.2					$	69.8
Television Production			10.8						9.3						32.0						28.8
Total Studio Business			31.3						32.0						98.2						98.6
Media Networks			22.9						21.0						70.5						65.0
			$	54.2					$	53.0					$	168.7					$	163.6
Segment profit
Studio Business:
Motion Picture			$	76.5					$	67.5					$	182.7					$	213.5
Television Production			71.5						19.3						104.6						50.8
Total Studio Business			148.0						86.8						287.3						264.3
Media Networks			49.5						28.5						33.5						122.1
Intersegment eliminations			(8.4)						(1.9)						(31.3)						3.7
			$	189.1					$	113.4					$	289.5					$	390.1

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

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

			Three Months Ended												Nine Months Ended
			December 31,												December 31,
			2022						2021						2022						2021
			(Amounts in millions)
Company’s total segment profit			$	189.1					$	113.4					$	289.5					$	390.1
Corporate general and administrative expenses			(21.3)						(21.8)						(69.4)						(70.5)
Adjusted depreciation and amortization(1)			(9.8)						(11.7)						(29.5)						(32.7)
Restructuring and other(2)			(75.3)						(0.5)						(316.5)						(7.2)
Goodwill impairment(3)			—						—						(1,475.0)						—
COVID-19 related benefit (charges) included in direct operating expense and distribution and marketing expense(4)			1.8						2.8						8.8						2.0
Content charges(5)			—						—						(7.2)						—
Adjusted share-based compensation expense(6)			(23.3)						(22.6)						(57.7)						(77.5)
Purchase accounting and related adjustments(7)			(53.4)						(50.3)						(151.1)						(144.8)
Operating income (loss)			7.8						9.3						(1,808.1)						59.4
Interest expense			(59.6)						(44.4)						(163.0)						(130.0)
Interest and other income			1.7						1.4						4.8						29.4
Other expense			(10.7)						(1.9)						(21.1)						(6.2)
Gain (loss) on extinguishment of debt			38.2						(1.1)						40.3						(28.2)
Gain (loss) on investments			43.4						(0.2)						42.1						1.2
Equity interests income (loss)			—						(2.5)						0.8						(1.4)
Income (loss) before income taxes			$	20.8					$	(39.4)					$	(1,904.2)					$	(75.8)

___________________

(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												Nine Months Ended
			December 31,												December 31,
			2022						2021						2022						2021
			(Amounts in millions)
Depreciation and amortization			$	46.3					$	46.3					$	133.9					$	134.1
Less: Amount included in purchase accounting and related adjustments			(36.5)						(34.6)						(104.4)						(101.4)
Adjusted depreciation and amortization			$	9.8					$	11.7					$	29.5					$	32.7

(2)Restructuring and other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, when applicable (see Note 14).

(3)Goodwill impairment reflects the impairment charge recorded in the nine months ended December 31, 2022 related to the Media Networks reporting unit (see Note 5).

(4)During the three and nine months ended December 31, 2022 and 2021, the Company has incurred a net benefit in direct operating expense due to insurance recoveries in excess of the incremental costs expensed in the period (see Note 14). These charges (benefits) are excluded from segment operating results.

(5)Content charges represent certain charges included in direct operating expense in the consolidated statements of operations, and excluded from segment operating results (see Note 14 for further information).

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

			Three Months Ended												Nine Months Ended
			December 31,												December 31,
			2022						2021						2022						2021
			(Amounts in millions)
Total share-based compensation expense			$	24.8					$	22.6					$	59.8					$	77.5
Less:
Amount included in restructuring and other(i)			(1.5)						—						(2.1)						—
Adjusted share-based compensation			$	23.3					$	22.6					$	57.7					$	77.5

(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.

(7)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												Nine Months Ended
			December 31,												December 31,
			2022						2021						2022						2021
			(Amounts in millions)
Purchase accounting and related adjustments:
Direct operating			$	—					$	—					$	0.7					$	0.5
General and administrative expense			16.9						15.7						46.0						42.9
Depreciation and amortization			36.5						34.6						104.4						101.4
			$	53.4					$	50.3					$	151.1					$	144.8

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												Nine Months Ended
			December 31,												December 31,
			2022						2021						2022						2021
			(Amounts in millions)
General and administration
Segment general and administrative expenses			$	54.2					$	53.0					$	168.7					$	163.6
Corporate general and administrative expenses			21.3						21.8						69.4						70.5
Share-based compensation expense included in general and administrative expense			22.6						22.0						55.9						76.1
Purchase accounting and related adjustments			16.9						15.7						46.0						42.9
			$	115.0					$	112.5					$	340.0					$	353.1

Reconciliation of Assets from Segment to Consolidated

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

			December 31, 2022						March 31, 2022
			(Amounts in millions)
Assets
Motion Picture			$	1,740.4					$	1,622.6
Television Production			1,900.7						1,978.9
Media Networks			3,168.8						4,706.7
Other unallocated assets(1)			782.6						683.0
			$	7,592.5					$	8,991.2

_____________________

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

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