Discontinued Operations

12 Months Ended

Mar. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

During the fiscal years ended March 31, 2024, and 2023, the Starz Business announced its plan to restructure its LIONSGATE+ business, which initially included exiting the business in certain international territories and identifying additional cost-saving initiatives, This plan included a strategic review of content performance across Starz's domestic and international platforms, resulting in certain programming being removed from those platforms and written down to fair value during fiscal year ended March 31, 2023. As a result of the continuing review of its international territories, the Starz Business made the strategic decision to shut down the LIONSGATE+ service in Europe (outside the United Kingdom), Latin America and the United Kingdom. The Starz Business entered into agreements to transfer subscribers of the services in these territories to a third party and the shutdowns were completed in May of 2024. The management of operations in Canada was subsequently transferred to the Starz Networks segment and the Company's continuing international operations in India are reported as International.

Net income (loss) from Starz's discontinued operations consists of the following:


	Year Ended
	March 31,
	2025		2024		2023
	(Amounts in millions)
Revenue	$	2.5	$	184.0	$	124.0
Expenses:
Direct operating	1.9		105.6		129.6
Distribution and marketing	—		28.3		73.7
General and administration	0.8		10.4		20.1
Depreciation and amortization	—		14.8		6.7
Restructuring and other(1)	(4.5)		160.0		316.1
Goodwill impairment(2)	—		—		213.3
Total expenses	(1.8)		319.1		759.5
Operating income (loss)	4.3		(135.1)		(635.5)
Interest expense	(0.2)		—		—
Interest and other income	0.1		0.3		0.1
Income (loss) from discontinued operations before income taxes	4.2		(134.8)		(635.4)
Income tax (provision) benefit	(0.1)		24.2		100.3
Net income (loss) from discontinued operations, net of income taxes	$	4.1	$	(110.6)	$	(535.1)

____________________________

(1)During the fiscal years ended March 31, 2025, 2024, and 2023, the Starz Business recorded content impairment charges of $2.5 million, $160.8 million, and $313.1 million, respectively, related to its restructuring plan initiatives, including content impairment of programming in certain international territories associated with the restructuring of LIONSGATE+, and individual content charges pursuant to a strategic review of content performance across Starz's international platforms resulting in certain programming being removed from those platforms and written down to fair value or removed and abandoned. These charges are included in “restructuring and other” in the table above. Restructuring and other costs in fiscal 2025 and 2024 also include benefits of $7.1 million and $5.4 million, respectively, associated with an arrangement to migrate subscribers in some of the exited territories to a third-party in connection with the international restructuring.

(2)As described in Note 1, Goodwill Impairment Assessment, during the fiscal year ended March 31, 2023, the Starz Business performed a quantitative impairment assessment which resulted in $213.3 million impairment of goodwill related to the LIONSGATE+ reporting unit.

In accordance with the provisions of ASC 205-20, the Starz Business has separately reported the assets and liabilities of the discontinued operations in the combined balance sheet. The assets and liabilities related to the disposed components of LIONSGATE+ have been reflected as discontinued operations in the combined balance sheets as of March 31, 2024, and consist of the following:


	March 31, 2024
	(Amounts in millions)
ASSETS
Cash	$	14.0
Accounts receivable, net	8.7
Due from LG Studios Business (Note 17)	10.0
Other current assets	0.1
Total current assets - discontinued operations	32.8
Programming content, net	4.2
Total assets - discontinued operations	$	37.0

LIABILITIES
Accounts payable	$	0.1
Programming related payables	57.0
Other accrued liabilities	3.1
Residuals	6.0
Total current liabilities - discontinued operations	66.2
Other liabilities	24.0
Total liabilities - discontinued operations	$	90.2