XML 49 R39.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Restructuring and Other (Tables) | 3 Months Ended
--- | ---
Jun. 30, 2024
Restructuring and Related Activities [Abstract] |
Restructuring and Other | During the three months ended June 30, 2024 and 2023, the Company also incurred certain other unusual charges or benefits, which are included in direct operating expense in the consolidated statements of operations and are 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 months ended June 30, 2024 and 2023:
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | (Amounts in millions)
Restructuring and other: |  |  |  |  |  |  |
Content and other impairments(1) |  |  |  |  | $ | 19.9 |  |  | $ | 28.0 |
Severance(2) |  |  |  |  |  |  |
Cash |  |  |  |  | 3.1 |  |  | 4.3 |
Accelerated vesting on equity awards (see Note 12) |  |  |  |  | — |  |  | 0.5 |
Total severance costs |  |  |  |  | 3.1 |  |  | 4.8 |
Transaction and other costs (benefits)(3) |  |  |  |  | (0.5) |  |  | (0.8) |
Total Restructuring and Other |  |  |  |  | 22.5 |  |  | 32.0 |
Other unusual charges not included in restructuring and other or the Company's operating segments: |  |  |  |  |  |  |
COVID-19 related charges (benefit) included in direct operating expense(4) |  |  |  |  | (3.1) |  |  | 0.2 |
Unallocated rent cost included in direct operating expense(5) |  |  |  |  | 5.2 |  |  | — |
Total restructuring and other and other unusual charges not included in restructuring and other |  |  |  |  | $ | 24.6 |  |  | $ | 32.2 |
_______________________ (1)Media Networks Restructuring: During fiscal 2024, the Company continued executing its restructuring plan, which included exiting all international territories except for Canada and India, and included an evaluation of the programming on Starz's domestic and international platforms. As a result of these restructuring initiatives, the Company recorded content impairment charges related to the Media Networks segment in the three months ended June 30, 2024 and 2023 of $1.9 million and $28.0 million, respectively. The Company has incurred impairment charges from the inception of the plan through June 30, 2024 amounting to $745.7 million. Under the current restructuring plan and ongoing strategic content review, the net future cash outlay is estimated to range from approximately $50 million to $55 million, which includes contractual commitments on content in territories being exited or to be exited, and payments on the remaining amounts payable for content removed or that may be removed from its services. The amounts above will depend on the results of its strategic content review and amounts recoverable from alternative distribution strategies, if any, on content in domestic and foreign markets. As the Company continues to evaluate the Media Networks business and its current restructuring plan in relation to the current micro and macroeconomic environment and the announced plan to separate the Company's Starz business (i.e., Media Networks segment) and Studio Business (i.e., Motion Picture and Television Production segments), including further strategic review of content performance and its strategy on a territory-by-territory basis, the Company may decide to expand its restructuring plan and exit additional territories or remove certain content off its platform in the future. Accordingly, the Company may incur additional content impairment and other restructuring charges beyond the estimates above. Other Impairments: Amounts in the three months ended June 30, 2024 also include impairments of certain operating lease right-of-use and leasehold improvement assets related to the Television Production segment amounting to $18.0 million associated with facility leases that will no longer be utilized by the Company, primarily related to the integration of eOne. (2)Severance costs were primarily related to restructuring, acquisition integration activities and other cost-saving initiatives. (3)Transaction and other costs in the three months ended June 30, 2024 and 2023 reflect transaction, integration and legal costs associated with certain strategic transactions, and restructuring activities and also include costs and benefits associated with legal and other matters. In the three months ended June 30, 2024 and 2023, transaction and other costs also includes a benefit of $7.1 million and $3.8 million, respectively, associated with an arrangement to migrate subscribers in some of the exited territories to a third-party in connection with the Starz international restructuring. (4)Amounts include incremental costs incurred, if any, due to circumstances associated with the COVID-19 global pandemic, net of insurance recoveries of $3.2 million in the three months ended June 30, 2024 (three months ended June 30, 2023 - immaterial insurance recoveries). In the three months ended June 30, 2024, insurance recoveries exceeded the incremental costs expensed in the period, resulting in a net benefit included in direct operating expense. (5)Amounts represent rent cost for production facilities that were unutilized as a result of the industry strikes, and therefore such amounts are not allocated to the segments. Changes in the restructuring and other severance liability were as follows for the three months ended June 30, 2024 and 2023:
| Three Months Ended
| June 30,
| 2024 |  | 2023 |  |
| (Amounts in millions)
Severance liability |  |  |  |  |
Beginning balance | $ | 23.6 |  |  | $ | 8.7 |  |  |
Accruals | 3.1 |  |  | 4.3 |  |  |
Severance payments | (10.0) |  |  | (8.2) |  |  |
Ending balance(1) | $ | 16.7 |  |  | $ | 4.8 |  |  |
_______________________ (1)As of June 30, 2024, the remaining severance liability of approximately $16.7 million is expected to be paid in the next 12 months.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
Name: | us-gaap_ScheduleOfRestructuringAndRelatedCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration