Segment Information

6 Months Ended

Sep. 30, 2012

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 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 monthsSeptember 30, 2011, respectively.