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v3.24.2.u1

Segment Information (Tables) | 3 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Segment Information | Segment information is presented in the table below. The Motion Picture and Television Production segments include the results of operations of eOne from the acquisition date of December 27, 2023 (see Note 2).
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | (Amounts in millions)
Segment revenues |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | $ | 347.3 |  |  | $ | 406.5 |
Television Production |  |  |  |  | 241.1 |  |  | 218.5 |
Total Studio Business |  |  |  |  | 588.4 |  |  | 625.0 |
Media Networks |  |  |  |  | 350.1 |  |  | 381.1 |
Intersegment eliminations |  |  |  |  | (103.8) |  |  | (97.5) |
|  |  |  |  | $ | 834.7 |  |  | $ | 908.6 |
Intersegment revenues |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | $ | 64.2 |  |  | $ | 16.5 |
Television Production |  |  |  |  | 39.6 |  |  | 81.0 |
Total Studio Business |  |  |  |  | 103.8 |  |  | 97.5 |
Media Networks |  |  |  |  | — |  |  | — |
|  |  |  |  | $ | 103.8 |  |  | $ | 97.5 |
Gross contribution |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | $ | 114.6 |  |  | $ | 98.6 |
Television Production |  |  |  |  | 28.6 |  |  | 35.6 |
Total Studio Business |  |  |  |  | 143.2 |  |  | 134.2 |
Media Networks |  |  |  |  | 78.0 |  |  | 57.7 |
Intersegment eliminations |  |  |  |  | (11.3) |  |  | (7.9) |
|  |  |  |  | $ | 209.9 |  |  | $ | 184.0 |
Segment general and administration |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | $ | 28.5 |  |  | $ | 29.4 |
Television Production |  |  |  |  | 17.9 |  |  | 12.7 |
Total Studio Business |  |  |  |  | 46.4 |  |  | 42.1 |
Media Networks |  |  |  |  | 20.5 |  |  | 25.8 |
|  |  |  |  | $ | 66.9 |  |  | $ | 67.9 |
Segment profit |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | $ | 86.1 |  |  | $ | 69.2 |
Television Production |  |  |  |  | 10.7 |  |  | 22.9 |
Total Studio Business |  |  |  |  | 96.8 |  |  | 92.1 |
Media Networks |  |  |  |  | 57.5 |  |  | 31.9 |
Intersegment eliminations |  |  |  |  | (11.3) |  |  | (7.9) |
|  |  |  |  | $ | 143.0 |  |  | $ | 116.1 |
Reconciliation Of Total Segment Profit To The Company's Income (Loss) Before Income Taxes | The reconciliation of total segment profit to the Company’s loss before income taxes is as follows:
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | (Amounts in millions)
Company’s total segment profit |  |  |  |  | $ | 143.0 |  |  | $ | 116.1 |
Corporate general and administrative expenses(1) |  |  |  |  | (33.3) |  |  | (30.4) |
Adjusted depreciation and amortization(2) |  |  |  |  | (8.5) |  |  | (10.0) |
Restructuring and other |  |  |  |  | (22.5) |  |  | (32.0) |
COVID-19 related benefit (charges) included in direct operating expense(3) |  |  |  |  | 3.1 |  |  | (0.2) |
Unallocated rent cost included in direct operating expense(4) |  |  |  |  | (5.2) |  |  | — |
Adjusted share-based compensation expense(5) |  |  |  |  | (18.1) |  |  | (15.9) |
Purchase accounting and related adjustments(6) |  |  |  |  | (39.7) |  |  | (44.4) |
Operating income (loss) |  |  |  |  | 18.8 |  |  | (16.8) |
Interest expense |  |  |  |  | (68.8) |  |  | (62.0) |
Interest and other income |  |  |  |  | 5.1 |  |  | 1.9 |
Other expense |  |  |  |  | (3.1) |  |  | (5.7) |
Gain (loss) on extinguishment of debt |  |  |  |  | (5.9) |  |  | 21.2 |
Equity interests income (loss) |  |  |  |  | 0.9 |  |  | (0.3) |
Loss before income taxes |  |  |  |  | $ | (53.0) |  |  | $ | (61.7) |
___________________ (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 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,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | (Amounts in millions)
Depreciation and amortization |  |  |  |  | $ | 46.1 |  |  | $ | 44.4 |
Less: Amount included in purchase accounting and related adjustments |  |  |  |  | (37.6) |  |  | (34.4) |
Adjusted depreciation and amortization |  |  |  |  | $ | 8.5 |  |  | $ | 10.0 |
(3)Amounts represent the incremental costs, if any, included in direct operating expense resulting from circumstances associated with the COVID-19 global pandemic, net of insurance recoveries (see Note 14). These benefits (charges) are excluded from segment operating results. (4)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. (5)The following table reconciles total share-based compensation expense to adjusted share-based compensation expense:
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | (Amounts in millions)
Total share-based compensation expense |  |  |  |  | $ | 18.1 |  |  | $ | 16.4 |
Less: |  |  |  |  |  |  |
Amount included in restructuring and other(i) |  |  |  |  | — |  |  | (0.5) |
Adjusted share-based compensation |  |  |  |  | $ | 18.1 |  |  | $ | 15.9 |
(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 acquisitions. The following sets forth the amounts included in each line item in the financial statements:
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | (Amounts in millions)
Purchase accounting and related adjustments: |  |  |  |  |  |  |
General and administrative expense(i) |  |  |  |  | $ | 2.1 |  |  | $ | 10.0 |
Depreciation and amortization |  |  |  |  | 37.6 |  |  | 34.4 |
|  |  |  |  | $ | 39.7 |  |  | $ | 44.4 |
(i)These adjustments include the expense associated with the noncontrolling equity interests in the distributable earnings related to 3 Arts Entertainment, and the amortization of the recoupable portion of the purchase price (through May 2023) 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 unaudited condensed consolidated statement of operations due to the relationship to continued employment.
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | (Amounts in millions)
Amortization of recoupable portion of the purchase price |  |  |  |  | $ | — |  |  | $ | 1.3 |
Noncontrolling equity interest in distributable earnings |  |  |  |  | 2.1 |  |  | 8.7 |
|  |  |  |  | $ | 2.1 |  |  | $ | 10.0 |
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,
|  |  |  |  | 2024 |  | 2023
|  |  |  |  | (Amounts in millions)
General and administration |  |  |  |  |  |  |
Segment general and administrative expenses |  |  |  |  | $ | 66.9 |  |  | $ | 67.9 |
Corporate general and administrative expenses |  |  |  |  | 33.3 |  |  | 30.4 |
Share-based compensation expense included in general and administrative expense |  |  |  |  | 17.2 |  |  | 15.3 |
Purchase accounting and related adjustments |  |  |  |  | 2.1 |  |  | 10.0 |
|  |  |  |  | $ | 119.5 |  |  | $ | 123.6 |
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, 2024 |  | March 31, 2024
| (Amounts in millions)
Assets |  |  |
Motion Picture | $ | 2,051.2 |  |  | $ | 1,851.4 |
Television Production | 2,419.4 |  |  | 2,347.8 |
Media Networks | 2,102.5 |  |  | 2,036.7 |
Other unallocated assets(1) | 649.1 |  |  | 856.8 |
| $ | 7,222.2 |  |  | $ | 7,092.7 |
_____________________ (1)Other unallocated assets primarily consist of cash, other assets and investments.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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