Investments in Productions and Investments in Acquired Content Rights

9 Months Ended

Oct. 01, 2023

Investment in Productions and Investments in Acquired Content Rights

Investments in Productions and Investments in Acquired Content RightsInvestments in productions and investments in acquired content rights are predominantly monetized on a title-by-title basis and are recorded within other assets in the Company's consolidated balance sheets, to the extent they are considered recoverable against future revenues. These amounts are being amortized to program cost amortization using a model that reflects the

consumption of the asset as it is released through various channels including broadcast licenses, theatrical release and home entertainment. Amounts capitalized are reviewed periodically on an individual title basis and any portion of the unamortized amount that appears not to be recoverable from future net revenues is expensed as part of program cost amortization during the period the loss becomes evident.

The Company's unamortized investments in productions and investments in acquired content rights consisted of the following at October 1, 2023, September 25, 2022, and December 25, 2022:


	October 1, 2023 (1)		September 25, 2022		December 25, 2022
Investment in Films and Television Programs:
Individual Monetization
Released, net of amortization (2)	$	78.3	$	486.3	$	584.5
Completed and not released	—		1.2		23.3
In production	27.2		176.9		199.4
Pre-production	18.4		109.7		41.3
	123.9		774.1		848.5
Film/TV Group Monetization
Released, net of amortization	14.6		24.5		25.8

In production	33.2		24.5		22.2

	47.8		49.0		48.0
Investment in Other Programming
Released, net of amortization	16.5		12.9		9.8
Completed and not released	—		0.3		—
In production	6.8		8.4		11.8
Pre-production	1.5		1.5		3.3
	24.8		23.1		24.9

Total Program Investments	$	196.5	$	846.2	$	921.4

(1) During the third quarter of 2023, investments in productions and investments in acquired content rights of $734.5 million, net of accumulated amortization, attributable to the non-core eOne Film and TV business, which were previously classified within Other assets, were transferred to Assets held for sale.

(2) During the second quarter of 2023, the Company recorded film production cost impairment charges of $25.0 million associated with Dungeons & Dragons: Honor Among Thieves, within Program cost amortization in the Consolidated Statement of Operations, within the Entertainment Segment. The film impairment charges reflected the excess of the unamortized costs of the impaired film over its estimated fair value using estimated discounted future cash flows.

The Company recorded $325.3 million of program cost amortization related to released programming in the nine months ended October 1, 2023, consisting of the following:


	Investment in Production		Investment in Content		Total
Program cost amortization	$	294.5	$	30.8	$	325.3