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Segment Information (Tables)

3 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment information is presented in the table below:

									Three Months Ended
									June 30,
															2023						2022
															(Amounts in millions)
Segment revenues
Studio Business:
Motion Picture															$	406.5					$	278.8
Television Production															218.5						432.3
Total Studio Business															625.0						711.1
Media Networks															381.1						381.2
Intersegment eliminations															(97.5)						(198.4)
															$	908.6					$	893.9
Intersegment revenues
Studio Business:
Motion Picture															$	16.5					$	3.5
Television Production															81.0						194.9
Total Studio Business															97.5						198.4
Media Networks															—						—
															$	97.5					$	198.4
Gross contribution
Studio Business:
Motion Picture															$	98.6					$	73.1
Television Production															35.6						30.7
Total Studio Business															134.2						103.8
Media Networks															57.7						(13.5)
Intersegment eliminations															(7.9)						(5.1)
															$	184.0					$	85.2
Segment general and administration
Studio Business:
Motion Picture															$	29.4					$	22.6
Television Production															12.7						11.1
Total Studio Business															42.1						33.7
Media Networks															25.8						23.5
															$	67.9					$	57.2
Segment profit (loss)
Studio Business:
Motion Picture															$	69.2					$	50.5
Television Production															22.9						19.6
Total Studio Business															92.1						70.1
Media Networks															31.9						(37.0)
Intersegment eliminations															(7.9)						(5.1)
															$	116.1					$	28.0

Reconciliation Of Total Segment Profit To The Company's 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,
															2023						2022
															(Amounts in millions)
Company’s total segment profit															$	116.1					$	28.0
Corporate general and administrative expenses(1)															(30.4)						(23.0)
Adjusted depreciation and amortization(2)															(10.0)						(10.1)
Restructuring and other(3)															(32.0)						(8.0)
COVID-19 related benefit (charges) included in direct operating expense(4)															(0.2)						1.0
Adjusted share-based compensation expense(5)															(15.9)						(7.8)
Purchase accounting and related adjustments(6)															(44.4)						(48.3)
Operating loss															(16.8)						(68.2)
Interest expense															(62.0)						(46.1)
Interest and other income															1.9						1.3
Other expense															(5.7)						(5.0)
Gain (loss) on extinguishment of debt															21.2						(1.3)
Gain on investments															—						1.8
Equity interests income (loss)															(0.3)						0.9
Loss before income taxes															$	(61.7)					$	(116.6)

___________________

(1)Corporate general and administrative expenses include certain corporate executive expense (such as salaries and wages for the office of the Chief Executive Officer, Chief Financial Officer, General Counsel and other corporate officers), investor relations costs, costs of maintaining corporate facilities, and other unallocated common administrative support functions, including corporate accounting, finance and financial reporting, internal and external audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense.

(2)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,
															2023						2022
															(Amounts in millions)
Depreciation and amortization															$	44.4					$	42.4
Less: Amount included in purchase accounting and related adjustments															(34.4)						(32.3)
Adjusted depreciation and amortization															$	10.0					$	10.1

(3)Restructuring and other includes restructuring and severance costs, certain transaction and other costs, and certain unusual items, when applicable (see Note 12).

(4)Amounts represent the incremental costs included in direct operating expense resulting from circumstances associated with the COVID-19 global pandemic, net of insurance recoveries. During the three months ended June 30, 2022, 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 12). These charges (benefits) are excluded from segment operating results.

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

									Three Months Ended
									June 30,
															2023						2022
															(Amounts in millions)
Total share-based compensation expense															$	16.4					$	8.4
Less:
Amount included in restructuring and other(i)															(0.5)						(0.6)
Adjusted share-based compensation															$	15.9					$	7.8

(i)Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of vesting schedules for equity awards pursuant to certain severance arrangements.

(6)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,
															2023						2022
															(Amounts in millions)
Purchase accounting and related adjustments:
General and administrative expense(i)															$	10.0					$	16.0
Depreciation and amortization															34.4						32.3
															$	44.4					$	48.3

(i)These adjustments include the non-cash charge for the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the non-cash charge for the amortization of the recoupable portion of the purchase price and the expense associated with the noncontrolling equity interests in the distributable earnings related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense, as presented in the table below. The noncontrolling equity interest in the distributable earnings of 3 Arts Entertainment are reflected as an expense rather than noncontrolling interest in the consolidated statement of operations due to the relationship to continued employment.

									Three Months Ended
									June 30,
															2023						2022
															(Amounts in millions)
Amortization of recoupable portion of the purchase price															$	1.3					$	1.9
Noncontrolling interest discount amortization															—						4.9
Noncontrolling equity interest in distributable earnings															8.7						9.2
															$	10.0					$	16.0

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,
															2023						2022
															(Amounts in millions)
General and administration
Segment general and administrative expenses															$	67.9					$	57.2
Corporate general and administrative expenses															30.4						23.0
Share-based compensation expense included in general and administrative expense															15.3						7.5
Purchase accounting and related adjustments															10.0						16.0
															$	123.6					$	103.7

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, 2023						March 31, 2023
			(Amounts in millions)
Assets
Motion Picture			$	1,743.4					$	1,759.4
Television Production			1,989.8						1,949.1
Media Networks			3,033.3						3,120.8
Other unallocated assets(1)			695.7						596.9
			$	7,462.2					$	7,426.2

_____________________

(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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