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Restructuring and Other | 6 Months Ended
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Sep. 30, 2024
Restructuring and Related Activities [Abstract] |
Restructuring and Other | Restructuring and Other Restructuring and other includes restructuring and severance costs and certain transaction and other costs, when applicable. During the three and six months ended September 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 and six months ended September 30, 2024 and 2023:
| Three Months Ended |  | Six Months Ended
| September 30, |  | September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
| (Amounts in millions)
Restructuring and other: |  |  |  |  |  |  |
Content and other impairments(1) | $ | (3.8) |  |  | $ | 211.6 |  |  | $ | 16.1 |  |  | $ | 239.5 |
Severance(2) | 1.8 |  |  | 5.8 |  |  | 5.0 |  |  | 10.6 |
Transaction and other costs (benefits)(3) | 8.1 |  |  | 4.7 |  |  | 7.5 |  |  | 3.9 |
Total Restructuring and Other | 6.1 |  |  | 222.1 |  |  | 28.6 |  |  | 254.0 |
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) | — |  |  | (0.6) |  |  | (3.1) |  |  | (0.4) |
Unallocated rent cost included in direct operating expense(5) | 5.2 |  |  | — |  |  | 10.5 |  |  | — |
Total restructuring and other and other unusual charges not included in restructuring and other | $ | 11.3 |  |  | $ | 221.5 |  |  | $ | 36.0 |  |  | $ | 253.6 |
_______________________ (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. The Company has incurred impairment charges from the inception of the plan through September 30, 2024 amounting to $741.4 million. During the three and six months ended September 30, 2024, the Company recorded net recoveries of content impairment charges related to the Media Networks segment of $4.3 million and $2.4 million, respectively (three and six months ended September 30, 2023 - content impairment charges of $211.6 million and $239.5 million, respectively). 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. Other Impairments: Amounts in the three and six months ended September 30, 2024 also include impairments of certain operating lease right-of-use and leasehold improvement assets related to the Television Production segment 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 and six months ended September 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 six months ended September 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 nil and $3.1 million in the three and six months ended September 30, 2024, respectively (three and six months ended September 30, 2023 - insurance recoveries of $0.6 million). In the six months ended September 30, 2024 and the three and six months ended September 30, 2023, 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 six months ended September 30, 2024 and 2023:
| Six Months Ended
| September 30,
| 2024 |  | 2023
| (Amounts in millions)
Severance liability |  |  |
Beginning balance | $ | 23.6 |  |  | $ | 8.7 |
Accruals(2) | 0.1 |  |  | 9.0 |
Severance payments | (15.5) |  |  | (9.7) |
Ending balance(1) | $ | 8.2 |  |  | $ | 8.0 |
_______________________ (1)As of September 30, 2024, the remaining severance liability of approximately $8.2 million is expected to be paid in the next 12 months. (2)Excludes $4.9 million and $1.6 million in the six months ended September 30, 2024 and 2023, respectively, of accelerated vesting on equity awards.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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