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Segment Information (Tables)

6 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment information is presented in the table below:

			Three Months Ended												Six Months Ended
			September 30,												September 30,
			2023						2022						2023						2022
			(Amounts in millions)
Segment revenues
Studio Business:
Motion Picture			$	395.9					$	224.0					$	802.5					$	502.8
Television Production			393.9						430.9						612.4						863.2
Total Studio Business			789.8						654.9						1,414.9						1,366.0
Media Networks			416.5						396.1						797.6						777.3
Intersegment eliminations			(190.8)						(175.8)						(288.4)						(374.2)
			$	1,015.5					$	875.2					$	1,924.1					$	1,769.1
Intersegment revenues
Studio Business:
Motion Picture			$	60.5					$	10.2					$	77.1					$	13.7
Television Production			130.3						165.6						211.3						360.5
Total Studio Business			190.8						175.8						288.4						374.2
Media Networks			—						—						—						—
			$	190.8					$	175.8					$	288.4					$	374.2
Gross contribution
Studio Business:
Motion Picture			$	94.2					$	78.7					$	192.9					$	151.8
Television Production			77.5						23.8						113.0						54.3
Total Studio Business			171.7						102.5						305.9						206.1
Media Networks			89.4						45.1						147.1						31.6
Intersegment eliminations			(23.8)						(17.9)						(31.9)						(22.8)
			$	237.3					$	129.7					$	421.1					$	214.9
Segment general and administration
Studio Business:
Motion Picture			$	26.7					$	23.2					$	56.1					$	45.7
Television Production			14.3						10.2						27.0						21.3
Total Studio Business			41.0						33.4						83.1						67.0
Media Networks			22.8						24.1						48.6						47.6
			$	63.8					$	57.5					$	131.7					$	114.6
Segment profit (loss)
Studio Business:
Motion Picture			$	67.5					$	55.5					$	136.8					$	106.1
Television Production			63.2						13.6						86.0						33.0
Total Studio Business			130.7						69.1						222.8						139.1
Media Networks			66.6						21.0						98.5						(16.0)
Intersegment eliminations			(23.8)						(17.9)						(31.9)						(22.8)
			$	173.5					$	72.2					$	289.4					$	100.3

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												Six Months Ended
			September 30,												September 30,
			2023						2022						2023						2022
			(Amounts in millions)
Company’s total segment profit			$	173.5					$	72.2					$	289.4					$	100.3
Corporate general and administrative expenses(1)			(32.8)						(24.8)						(63.1)						(47.9)
Adjusted depreciation and amortization(2)			(9.9)						(9.7)						(19.9)						(19.7)
Restructuring and other(3)			(222.1)						(233.2)						(254.0)						(241.3)
Goodwill and intangible asset impairment(4)			(663.9)						(1,475.0)						(663.9)						(1,475.0)
COVID-19 related benefit (charges) included in direct operating expense(5)			0.6						6.1						0.4						7.1
Content charges(6)			—						(7.2)						—						(7.2)
Adjusted share-based compensation expense(7)			(26.0)						(26.6)						(41.9)						(34.4)
Purchase accounting and related adjustments(8)			(36.9)						(49.4)						(81.3)						(97.8)
Operating loss			(817.5)						(1,747.6)						(834.3)						(1,815.9)
Interest expense			(63.8)						(57.3)						(125.8)						(103.4)
Interest and other income			2.7						1.8						4.7						3.1
Other expense			(11.5)						(5.4)						(17.2)						(10.4)
Gain on extinguishment of debt			—						3.4						21.2						2.1
Loss on investments, net			(1.6)						(3.1)						(1.7)						(1.3)
Equity interests income (loss)			1.8						(0.1)						1.5						0.8
Loss before income taxes			$	(889.9)					$	(1,808.3)					$	(951.6)					$	(1,925.0)

___________________

(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												Six Months Ended
			September 30,												September 30,
			2023						2022						2023						2022
			(Amounts in millions)
Depreciation and amortization			$	44.6					$	45.2					$	89.0					$	87.6
Less: Amount included in purchase accounting and related adjustments			(34.7)						(35.5)						(69.1)						(67.9)
Adjusted depreciation and amortization			$	9.9					$	9.7					$	19.9					$	19.7

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

(4)Goodwill and intangible asset impairment reflects the goodwill impairment charges recorded in the quarters ended September 30, 2023 and September 30, 2022 related to the Media Networks reporting unit, and three months ended September 30, 2023 also includes the impairment of the indefinite-lived trade names related to the Media Networks reporting unit (see Note 5).

(5)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 and six months ended September 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 14). These benefits (charges) are excluded from segment operating results.

(6)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).

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

			Three Months Ended												Six Months Ended
			September 30,												September 30,
			2023						2022						2023						2022
			(Amounts in millions)
Total share-based compensation expense			$	27.1					$	26.6					$	43.5					$	35.0
Less:
Amount included in restructuring and other(i)			(1.1)						—						(1.6)						(0.6)
Adjusted share-based compensation			$	26.0					$	26.6					$	41.9					$	34.4

(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.

(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:

			Three Months Ended												Six Months Ended
			September 30,												September 30,
			2023						2022						2023						2022
			(Amounts in millions)
Purchase accounting and related adjustments:
Direct operating			$	—					$	0.7					$	—					$	0.7
General and administrative expense(i)			2.2						13.2						12.2						29.2
Depreciation and amortization			34.7						35.5						69.1						67.9
			$	36.9					$	49.4					$	81.3					$	97.8

(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												Six Months Ended
			September 30,												September 30,
			2023						2022						2023						2022
			(Amounts in millions)
Amortization of recoupable portion of the purchase price			$	—					$	1.9					$	1.3					$	3.8
Noncontrolling interest discount amortization			—						5.0						—						10.0
Noncontrolling equity interest in distributable earnings			2.2						6.3						10.9						15.4
			$	2.2					$	13.2					$	12.2					$	29.2

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												Six Months Ended
			September 30,												September 30,
			2023						2022						2023						2022
			(Amounts in millions)
General and administration
Segment general and administrative expenses			$	63.8					$	57.5					$	131.7					$	114.6
Corporate general and administrative expenses			32.8						24.8						63.1						47.9
Share-based compensation expense included in general and administrative expense			24.8						25.8						40.1						33.2
Purchase accounting and related adjustments			2.2						13.2						12.2						29.2
			$	123.6					$	121.3					$	247.1					$	224.9

Reconciliation of Assets from Segment to Consolidated

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

			September 30, 2023						March 31, 2023
			(Amounts in millions)
Assets
Motion Picture			$	1,695.8					$	1,759.4
Television Production			1,789.3						1,949.1
Media Networks			2,149.0						3,120.8
Other unallocated assets(1)			545.3						596.9
			$	6,179.4					$	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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