v3.25.2
Segment Information
 3 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s reportable segments have been determined based on the distinct nature of their operations, the Company’s internal management structure, and the financial information that is evaluated regularly by the Company’s CODM in deciding how to allocate resources to an individual segment and in assessing performance. The Company's Chief Executive Officer (“CEO”) is the CODM.

Following the Starz Separation, the Company no longer reports the Media Networks segment and currently has two reportable business segments: (1) Motion Picture and (2) Television Production.
(1)     Motion Picture. Motion Picture consists of the development and production of feature films, acquisition of North American and worldwide distribution rights, North American theatrical, home entertainment and television distribution of feature films produced and acquired, and worldwide licensing of distribution rights to feature films produced and acquired.
(2)     Television Production. Television Production consists of the development, production and worldwide distribution of television productions including television series, television movies and mini-series, and non-fiction programming. Television Production includes the licensing of Starz original series productions to Starz, and the ancillary market distribution of Starz original productions and licensed product (prior to the Starz Separation, licensing to the former Media Networks segment). Additionally, the Television Production segment includes the results of operations of 3 Arts Entertainment.

In the ordinary course of business, the Company's reportable segments enter into transactions with one another. The most common types of intersegment transactions, prior to the Starz Separation, included licensing motion pictures or television programming (including Starz original productions) from the Motion Picture and Television Production segments to the former Media Networks segment. While intersegment transactions, prior to the Starz Separation, were treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses) were eliminated in consolidation and, therefore, did not affect consolidated results from operations. Following the Starz Separation, the Company and Starz will continue to be parties to certain commercial agreements. As a result, the impacts of licensing motion pictures or television programming to Starz following the Starz Separation are not eliminated in consolidation and are reflected in the consolidated results from continuing operations, see Note 2.

Segment information is presented in the table below:

Three Months Ended
June 30,
20252024
 (Amounts in millions)
Segment revenues
Studio Business:
Motion Picture(1)
$267.3 $349.6 
Television Production288.5 241.1 
Total Studio Business555.8 590.7 
Intersegment eliminations(29.9)(103.8)
$525.9 $486.9 
Intersegment revenues
Studio Business:
Motion Picture(1)
3.1 64.2 
Television Production26.8 39.6 
Total Studio Business29.9 103.8 
Segment direct operating expenses
Studio Business:
Motion Picture(1)
136.7 152.4 
Television Production239.6 202.0 
Total Studio Business376.3 354.4 
Intersegment eliminations(42.7)(69.7)
333.6 284.7 
Segment distribution and marketing
Studio Business:
Motion Picture(1)
105.8 82.8 
Television Production12.3 10.5 
Total Studio Business118.1 93.3 
118.1 93.3 
Gross contribution
Studio Business:
Motion Picture(1)
24.8 114.4 
Television Production36.6 28.6 
Total Studio Business61.4 143.0 
Intersegment eliminations12.8 (34.1)
74.2 108.9 
Segment general and administration
Studio Business:
Motion Picture(1)
22.4 29.2 
Television Production10.6 17.9 
Total Studio Business33.0 47.1 
Segment profit
Studio Business:
Motion Picture(1)
2.4 85.2 
Television Production26.0 10.7 
Total Studio Business28.4 95.9 
Intersegment eliminations12.8 (34.1)
$41.2 $61.8 
___________________
(1)During the first quarter of fiscal 2026, the Company began reflecting the results of operations of its streaming platform in India within the Motion Picture segment as such operations are not a part of the disposal group of the Starz Business. Accordingly, the following amounts were reclassified from the former Media Networks segment to the Motion Picture segment in the three months ended June 30, 2024 to conform to the current period presentation: (i) revenue of $2.3 million; (ii) direct operating expense of $1.8 million; (iii) distribution and marketing expense of $0.7 million; and (iv) general and administration expense of $0.7 million, which resulted in gross contribution loss of $0.2 million and segment loss of $0.9 million reclassified.

The Company's primary measure of segment performance is its Studio Business segment profit. Segment profit is defined as gross contribution (segment revenues, less segment direct operating and segment distribution and marketing expense) less segment general and administration expenses. Segment profit excludes, when applicable, corporate general and administrative expense, restructuring and other costs, share-based compensation, certain content charges as a result of changes in management and/or content strategy, certain benefits related to the COVID-19 global pandemic, unallocated rent cost and purchase accounting and related adjustments. The Company believes the presentation of Studio Business segment profit is relevant and useful for investors because it allows investors to view segment performance in a manner similar to the primary method used by the Company’s management, including the CODM, and enables them to understand the fundamental performance of the Company’s businesses. The CODM uses the Studio Business segment profit to evaluate the operating performance of the Company’s segments, to inform decisions for planning and forecasting, and for the allocation of resources.
The reconciliation of the total segment profit to the Company’s loss from continuing operations before income taxes is as follows:
 
Three Months Ended
June 30,
20252024
 (Amounts in millions)
Total segment profit$41.2 $61.8 
Corporate general and administrative expenses(1)
(32.1)(33.3)
Adjusted depreciation and amortization(2)
(3.5)(3.6)
Restructuring and other(4.8)(27.7)
COVID-19 related benefit included in direct operating expense(3)
— 2.0 
Unallocated rent cost included in direct operating expense(4)
(5.4)(5.2)
Adjusted share-based compensation expense(5)
(2.8)(13.4)
Purchase accounting and related adjustments(6)
(3.2)(3.1)
Operating loss(10.6)(22.5)
Interest expense(68.7)(63.5)
Interest and other income4.4 5.0 
Other losses, net(17.0)(1.4)
Loss on extinguishment of debt(1.0)(3.7)
Gain on investments, net8.8 — 
Equity interests income (loss)(1.2)0.9 
Loss from continuing operations before income taxes$(85.3)$(85.2)
___________________
(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. Corporate general and administrative expenses also include costs that were previously incurred in support of the Media Networks segment but are not directly attributable to it and thus were not recorded in discontinued operations, see Note 2.
(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,
20252024
 (Amounts in millions)
Depreciation and amortization$4.4 $4.6 
Less: Amount included in purchase accounting and related adjustments(0.9)(1.0)
Adjusted depreciation and amortization$3.5 $3.6 
(3)Amounts in the three months ended June 30, 2024 represent a benefit from insurance recoveries related to circumstances associated with the COVID-19 pandemic (see Note 15). 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,
20252024
 (Amounts in millions)
Total share-based compensation expense$1.7 $13.4 
Less:
Amount included in restructuring and other(i)
1.1 — 
Adjusted share-based compensation$2.8 $13.4 
(i)Amounts represent share-based compensation expense recorded within restructuring and other expenses, attributable to the accelerated vesting of equity awards pursuant to certain severance arrangements.
(6)Purchase accounting and related adjustments primarily consist of the amortization of non-cash fair value adjustments to certain assets acquired in acquisitions. The table below presents the amounts included in each financial statement line item:
Three Months Ended
June 30,
20252024
 (Amounts in millions)
Purchase accounting and related adjustments:
General and administrative expense(i)
$2.3 $2.1 
Depreciation and amortization0.9 1.0 
$3.2 $3.1 
(i)Amounts represent compensation expense associated with the noncontrolling equity interests in the distributable earnings of 3 Arts Entertainment. Due to the link to continued employment performance, these amounts are classified as general and administrative expense instead of noncontrolling interest in the consolidated statements of operations.
See Note 11 for revenues by media or product line as broken down by segment for the three months ended June 30, 2025 and 2024.

The following table reconciles segment general and administration expense to the Company’s total consolidated general and administration expense:
Three Months Ended
June 30,
20252024
(Amounts in millions)
General and administration
Segment general and administrative expenses$33.0 $47.1 
Corporate general and administrative expenses32.1 33.3 
Share-based compensation expense included in general and administrative expense2.8 13.4 
Purchase accounting and related adjustments 2.3 2.1 
$70.2 $95.9 
The reconciliation of total segment assets to the Company’s total consolidated assets is as follows:
 
June 30,
2025		March 31,
2025
 (Amounts in millions)
Assets
Motion Picture$2,092.6 $1,867.4 
Television Production2,364.6 2,279.3 
Other unallocated assets(1)
703.7 776.0 
Assets of discontinued operations— 1,899.4 
$5,160.9 $6,822.1 
_____________________
(1)Other unallocated assets primarily consist of cash, other assets and investments.

Acquisition of investment in films and television programs, as broken down by segment for the three months ended June 30, 2025 and 2024, is presented below:
Three Months Ended
June 30,
20252024
(Amounts in millions)
Acquisition of investment in films and television programs
Motion Picture$142.9 $277.9 
Television Production107.3 365.3 
$250.2 $643.2 

The following table presents capital expenditures, as broken down by segment for the three months ended June 30, 2025, and 2024:
Three Months Ended
June 30,
20252024
(Amounts in millions)
Capital expenditures
Motion Picture$— $— 
Television Production— — 
Corporate(1)
3.5 4.1 
$3.5 $4.1 
____________________
(1)Represents unallocated capital expenditures primarily related to the Company’s corporate headquarters.