| 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 as of September 30, 2012: 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 | | Six Months Ended | | Six Months Ended | | September 30,
2012 | | September 30,
2011 | | September 30,
2012 | | September 30,
2011 | | (Amounts in thousands) | Segment revenues | | | | | | | | Motion Pictures | $ | 607,972 |
| | $ | 218,900 |
| | $ | 1,014,506 |
| | $ | 411,418 |
| Television Production | 98,996 |
| | 139,181 |
| | 164,282 |
| | 207,922 |
| | $ | 706,968 |
| | $ | 358,081 |
| | $ | 1,178,788 |
| | $ | 619,340 |
| Direct operating expenses | | | | | | | | Motion Pictures | $ | 243,325 |
| | $ | 108,585 |
| | $ | 437,007 |
| | $ | 194,771 |
| Television Production | 79,905 |
| | 97,759 |
| | 132,041 |
| | 150,931 |
| | $ | 323,230 |
| | $ | 206,344 |
| | $ | 569,048 |
| | $ | 345,702 |
| Distribution and marketing | | | | | | | | Motion Pictures | $ | 229,134 |
| | $ | 135,366 |
| | $ | 402,035 |
| | $ | 194,465 |
| Television Production | 7,308 |
| | 6,276 |
| | 13,116 |
| | 11,923 |
| | $ | 236,442 |
| | $ | 141,642 |
| | $ | 415,151 |
| | $ | 206,388 |
| Segment contribution before general and administration expenses | | | | | | | | Motion Pictures | $ | 135,513 |
| | $ | (25,051 | ) | | $ | 175,464 |
| | $ | 22,182 |
| Television Production | 11,783 |
| | 35,146 |
| | 19,125 |
| | 45,068 |
| | $ | 147,296 |
| | $ | 10,095 |
| | $ | 194,589 |
| | $ | 67,250 |
| General and administration | | | | | | | | Motion Pictures | $ | 15,105 |
| | $ | 11,461 |
| | $ | 31,950 |
| | $ | 23,646 |
| Television Production | 2,922 |
| | 3,023 |
| | 5,635 |
| | 5,695 |
| | $ | 18,027 |
| | $ | 14,484 |
| | $ | 37,585 |
| | $ | 29,341 |
| Segment profit | | | | | | | | Motion Pictures | $ | 120,408 |
| | $ | (36,512 | ) | | $ | 143,514 |
| | $ | (1,464 | ) | Television Production | 8,861 |
| | 32,123 |
| | 13,490 |
| | 39,373 |
| | $ | 129,269 |
| | $ | (4,389 | ) | | $ | 157,004 |
| | $ | 37,909 |
| Acquisition of investment in films and television programs | | | | | | | | Motion Pictures | $ | 183,483 |
| | $ | 167,772 |
| | $ | 264,534 |
| | $ | 318,379 |
| Television Production | 78,632 |
| | 63,836 |
| | 158,586 |
| | 115,005 |
| | $ | 262,115 |
| | $ | 231,608 |
| | $ | 423,120 |
| | $ | 433,384 |
|
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 income (loss) before income taxes is as follows: | | | | | | | | | | | | | | | | | | Three Months Ended | | Three Months Ended | | Six Months Ended | | Six Months Ended | | September 30,
2012 | | September 30,
2011 | | September 30,
2012 | | September 30,
2011 | | | | As adjusted | | | | As adjusted | | (Amounts in thousands) | Company’s total segment profit (loss) | $ | 129,269 |
| | $ | (4,389 | ) | | $ | 157,004 |
| | $ | 37,909 |
| Less: | | | | | | | | Shared services and corporate expenses (1) | (26,003 | ) | | (14,944 | ) | | (58,789 | ) | | (28,009 | ) | Depreciation and amortization | (2,115 | ) | | (681 | ) | | (4,220 | ) | | (1,915 | ) | Interest expense | (23,285 | ) | | (17,569 | ) | | (50,775 | ) | | (33,904 | ) | Interest and other income | 1,029 |
| | 928 |
| | 1,979 |
| | 1,370 |
| Gain on sale of asset disposal group | — |
| | 10,967 |
| | — |
| | 10,967 |
| Loss on extinguishment of debt | (1,000 | ) | | (436 | ) | | (9,159 | ) | | (967 | ) | Equity interests income | 1,755 |
| | 1,889 |
| | 1,610 |
| | 1,849 |
| Income (loss) before income taxes | $ | 79,650 |
| | $ | (24,235 | ) | | $ | 37,650 |
| | $ | (12,700 | ) |
| | (1) | Includes share-based compensation expense of $6.9 million and $16.6 million for the three and six months ended September 30, 2012, respectively, and $2.4 million and $5.0 million for the three and six months ended September 30, 2011, respectively. The three and six months ended September 30, 2012 also includes severance and transaction costs related to the acquisition of Summit of $0.3 million and $2.0 million, respectively. The six months ended September 30, 2011 includes a benefit for charges associated with a shareholder activist matter of $2.0 million related to a negotiated settlement with a vendor of costs incurred and recorded in fiscal year 2011, and insurance recoveries of related litigation offset by other costs. |
The following table sets forth significant assets as broken down by segment and other unallocated assets as of September 30, 2012 and March 31, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2012 | | March 31, 2012 | | Motion Pictures | | Television Production | | Total | | Motion Pictures | | Television Production | | Total | | (Amounts in thousands) | Significant assets by segment | | | | | | | | | | | | Accounts receivable | $ | 500,439 |
| | $ | 200,915 |
| | $ | 701,354 |
| | $ | 577,463 |
| | $ | 207,067 |
| | $ | 784,530 |
| Investment in films and television programs, net | 1,160,287 |
| | 190,385 |
| | 1,350,672 |
| | 1,202,692 |
| | 126,361 |
| | 1,329,053 |
| Goodwill | 297,043 |
| | 28,961 |
| | 326,004 |
| | 297,672 |
| | 28,961 |
| | 326,633 |
| | $ | 1,957,769 |
| | $ | 420,261 |
| | $ | 2,378,030 |
| | $ | 2,077,827 |
| | $ | 362,389 |
| | $ | 2,440,216 |
| Other unallocated assets (primarily cash, other assets, and equity method investments) | | | | | 332,333 |
| | | | | | 347,779 |
| Total assets | | | | | $ | 2,710,363 |
| | | | | | $ | 2,787,995 |
|
Purchases of property and equipment amounted to $0.6 million and $1.0 million for the three and six months ended September 30, 2012 , respectively, and $0.8 million and $1.3 million for the three and six months September 30, 2011, respectively. |