Segment Information

9 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Information

Segment Information

Accounting guidance requires the Company to make certain disclosures about each reportable segment. The Company’s reportable segments are determined based on the distinct nature of their operations and each segment is a strategic business unit that offers different products and services and is managed separately. The Company has two reportable business segments: Motion Pictures and Television Production.

Motion Pictures 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.

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.

Segmented information by business unit is as follows:

	Three Months Ended		Three Months Ended		Nine Months Ended		Nine Months Ended
	December 31, 2011		December 31, 2010		December 31, 2011		December 31, 2010
	(Amounts in thousands)
Segment revenues
Motion Pictures	$	233,327	$	326,695	$	644,745	$	941,125
Television Production	89,699		96,210		297,621		264,680
	$	323,026	$	422,905	$	942,366	$	1,205,805
Direct operating expenses
Motion Pictures	$	134,630	$	130,837	$	329,401	$	401,061
Television Production	67,327		73,854		218,258		199,419
	$	201,957	$	204,691	$	547,659	$	600,480
Distribution and marketing
Motion Pictures	$	63,521	$	146,083	$	257,986	$	437,524
Television Production	9,285		12,895		21,208		23,956
	$	72,806	$	158,978	$	279,194	$	461,480
Segment contribution before general and administration expenses
Motion Pictures	$	35,176	$	49,775	$	57,358	$	102,540
Television Production	13,087		9,461		58,155		41,305
	$	48,263	$	59,236	$	115,513	$	143,845
General and administration
Motion Pictures	$	10,686	$	11,948	$	34,332	$	35,587
Television Production	2,594		2,859		8,289		8,613
	$	13,280	$	14,807	$	42,621	$	44,200
Segment profit
Motion Pictures	$	24,490	$	37,827	$	23,026	$	66,953
Television Production	10,493		6,602		49,866		32,692
	$	34,983	$	44,429	$	72,892	$	99,645
Acquisition of investment in films and television programs
Motion Pictures	$	56,240	$	59,565	$	374,619	$	252,006
Television Production	62,182		47,920		177,187		169,142
	$	118,422	$	107,485	$	551,806	$	421,148

Segment contribution before general and administration expenses is defined as segment revenue less segment direct operating and distribution and marketing expenses.

Segment profit is defined as segment revenue less segment direct operating, distribution and marketing, and general and administration expenses. The reconciliation of total segment profit to the Company’s loss before income taxes is as follows:

	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	December 31, 2011			December 31, 2010			December 31, 2011			December 31, 2010
	(Amounts in thousands)
Company’s total segment profit	$	34,983		$	44,429		$	72,892		$	99,645
Less:
Shared services and corporate expenses (1)	(22,521		)	(21,131		)	(50,530		)	(90,135		)
Depreciation and amortization	(688		)	(1,409		)	(2,603		)	(4,485		)
Interest expense	(17,235		)	(13,363		)	(51,139		)	(41,735		)
Interest and other income	490			329			1,860			1,082
Gain on sale of asset disposal group	—			—			10,967			—
Loss on extinguishment of debt	—			—			(967		)	(14,505		)
Equity interests income (loss)	3,821			(13,144		)	8,325			(45,566		)
Loss before income taxes	$	(1,150	)	$	(4,289	)	$	(11,195	)	$	(95,699	)

(1) Includes share-based compensation expense of $4.7 million and $0.2 million for the three months ended December 31, 2011 and 2010, respectively, and $9.7 million and $30.0 million for the nine months ended December 31, 2011 and 2010, respectively. During the nine months ended December 31, 2010 the Company incurred $21.9 million of share-based compensation expense associated with the immediate vesting of equity awards of certain executive officers triggered by the “change in control” provisions in their respective employment agreements. Also includes charges of $3.1 million and $1.0 million associated with a shareholder activist matter in the three and nine months ended December 31, 2011, respectively, compared to charges of $7.9 million and $20.4 million for the three and nine months ended December 31, 2010, respectively. Charges associated with a shareholder activist matter in the nine months ended December 31, 2011 include a $3.9 million benefit, recorded in the quarter ended June 30, 2011, related to a negotiated settlement with a vendor of costs incurred and recorded in the prior fiscal year. The three and nine months ended December 31, 2011 also include charges relating to the acquisition of Summit Entertainment, LLC of $2.3 million.

The following table sets forth significant assets as broken down by segment and other unallocated assets as of December 31, 2011 and March 31, 2011:

	December 31, 2011						March 31, 2011
	Motion Pictures		Television Production		Total		Motion Pictures		Television Production		Total
	(Amounts in thousands)
Significant assets by segment
Accounts receivable	$	209,518	$	213,599	$	423,117	$	167,093	$	163,531	$	330,624
Investment in films and television programs, net	649,638		153,234		802,872		503,065		104,692		607,757
Goodwill	204,240		28,961		233,201		210,293		28,961		239,254
	$	1,063,396	$	395,794	$	1,459,190	$	880,451	$	297,184	$	1,177,635
Other unallocated assets (primarily cash, other assets, and equity method investments)					303,044						380,209
Total assets					$	1,762,234					$	1,557,844

During the nine months ended December 31, 2011, a portion of Motion Pictures goodwill, amounting to $6.1 million was allocated to the Maple Pictures asset group and included in the carrying value of the assets disposed for purposes of calculating the gain on sale of Maple Pictures (see Note 12).

Purchases of property and equipment amounted to $0.3 million and $1.5 million for the three and nine months ended December 31, 2011, respectively, and $0.3 million and $1.2 million for the three and nine months ended December 31, 2010, respectively, all primarily pertaining to purchases for the Company’s corporate headquarters.