Restructuring and Other

12 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring and OtherRestructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable. During the years ended March 31, 2021 and 2020, the Company also incurred certain other unusual charges related to the COVID-19 global pandemic, which are included in direct operating and distribution and marketing expense in the consolidated statements of operations. In addition, during the years ended March 31, 2020 and 2019, the Company incurred certain other unusual charges related to programming write-downs, which are included in direct operating expense in the consolidated statements of operations. The following table sets forth restructuring and other and these unusual COVID-19 related and programming charges and the statement of operations line items they are included in for the years ended March 31, 2021, 2020 and 2019:


	Year Ended
	March 31,
	2021		2020		2019
	(Amounts in millions)
Restructuring and other:
Severance(1)
Cash	$	14.8	$	12.3	$	31.5
Accelerated vesting on equity awards (see Note 14)	3.5		0.6		16.0
Total severance costs	18.3		12.9		47.5
COVID-19 related charges included in restructuring and other(2)	3.0		0.3		—
Transaction and related costs(3)	3.4		11.1		30.5

Total Restructuring and Other	24.7		24.3		78.0

COVID-19 related charges and programming and content charges not included in restructuring and other:
Programming and content charges included in direct operating expense(4)	—		76.5		35.1
COVID-19 related charges included in:
Direct operating expense(5)	50.6		46.0		—
Distribution and marketing expense(5)	16.9		4.2		—
Total restructuring and other, COVID-19 related charges, and programming and content charges	$	92.2	$	151.0	$	113.1

_______________________

(1)Severance costs in the fiscal years ended March 31, 2021, 2020 and 2019 were primarily related to restructuring activities in connection with cost-saving initiatives and recent acquisitions.

(2)During the years ended March 31, 2021 and 2020, the Company has incurred certain costs including costs primarily related to transitioning the Company to a remote-work environment and other incremental costs associated with the COVID-19 global pandemic.

(3)Transaction and related costs in the fiscal years ended March 31, 2021, 2020 and 2019 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters. In fiscal 2019, these costs were primarily related to the legal fees associated with the Starz class action lawsuits and other matters and, to a lesser extent, costs related to the acquisition of 3 Arts Entertainment and other strategic transactions.

(4)In the fiscal years ended March 31, 2020 and 2019, in connection with management changes, the Company implemented changes to its programming and broadcasting strategy including programming acquired or produced under prior management. As a result, the Company recorded certain programming and content charges of $76.5 million and $35.1 million in fiscal 2020 and 2019, respectively, which are included in direct operating expense in the consolidated statement of operations.

(5)In connection with the disruptions associated with the COVID-19 global pandemic and measures to prevent its spread and mitigate its effects both domestically and internationally, and the related economic disruption, including the worldwide closure of theaters, international travel restrictions and the pausing of motion picture and television productions, during fiscal 2021 and fiscal 2020, the Company incurred certain incremental costs which were expensed in the period. The costs included in direct operating expense primarily represent incremental costs associated with film impairment due to changes in performance expectations, the pausing and restarting of productions including certain cast and crew, idle facilities and equipment costs resulting from circumstances associated with the COVID-19 global pandemic. In addition, the costs included in distribution and marketing expense primarily consist of contractual marketing spends for film releases and events that were canceled or delayed and will provide no economic benefit. The Company is in the process of seeking insurance recovery for some of these costs, which cannot be estimated at this time, and therefore no material amounts of insurance proceeds have been recorded in the consolidated financial statements.

Changes in the restructuring and other severance liability were as follows for the years ended March 31, 2021, 2020 and 2019:


	Year Ended
	March 31,
	2021		2020		2019
	(Amounts in millions)
Severance liability
Beginning balance	$	11.1	$	21.2	$	14.7
Accruals	14.8		12.3		31.5
Severance payments	(20.2)		(22.4)		(25.0)

Ending balance(1)	$	5.7	$	11.1	$	21.2

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(1)As of March 31, 2021, the remaining severance liability of approximately $5.7 million is expected to be paid in the next 12 months.