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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2020September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from  ____________ to  ____________
Commission File No.: 1-14880

Lions Gate Entertainment Corp.
(Exact name of registrant as specified in its charter)

British Columbia, Canada N/A
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
250 Howe Street, 20th Floor
Vancouver, British Columbia V6C 3R8
and
2700 Colorado Avenue
Santa Monica, California 90404
(Address of principal executive offices)

(877) 848-3866
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Class A Voting Common Shares, no par value per shareLGF.ANew York Stock Exchange
Class B Non-Voting Common Shares, no par value per shareLGF.BNew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    No  
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
Title of Each Class Outstanding at FebruaryNovember 1, 2021
Class A Voting Common Shares, no par value per share 83,053,49983,206,602 shares
Class B Non-Voting Common Shares, no par value per share138,099,538141,753,926 shares


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FORWARD-LOOKING STATEMENTS

This report includes statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward looking statements can be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “potential,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “forecasts,” “may,” “will,” “could,” “would” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this report and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limited to, those discussed under Part I, Item 1A. “Risk Factors” found in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on May 27, 2020,28, 2021, which risk factors are incorporated herein by reference, as updated by any update to the risk factors found under Part II, Item 1A. "Risk Factors" herein. These risk factors should not be construed as exhaustive and should be read with the other cautionary statements and information in our Annual Report on Form 10-K, and this report. These factors may also be increased or intensified as a result of events related to the coronavirus (COVID-19 global pandemic), including as a result of the resurgencespread of the COVID-19 global pandemic due to the increasing rates of infection.new variants. The extent to which the COVID-19 global pandemic ultimately impacts our business, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted.
We caution you that forward-looking statements made in this report or anywhere else are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially and adversely from those made in or suggested by the forward-looking statements contained in this report as a result of various important factors, including, but not limited to: the potential effects of the COVID-19 global pandemic on the Company, economic and business conditions; the substantial investment of capital required to produce and market films and television series; budget overruns; limitations imposed by our credit facilities and notes; unpredictability of the commercial success of our motion pictures and television programming; risks related to acquisition and integration of acquired businesses; the effects of dispositions of businesses or assets, including individual films or libraries; the cost of defending our intellectual property; technological changes and other trends affecting the entertainment industry; potential adverse reactions or changes to business or employee relationships; and the other risks and uncertainties discussed under Part I, Item 1A. “Risk Factors” found in our Annual Report on Form 10-K filed with the SEC on May 27, 2020,28, 2021, which risk factors are incorporated herein by reference, as updated by theany risk factors found under Part II, Item 1A. "Risk Factors" herein. In addition, even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate are consistent with the forward-looking statements contained in this report, those results or developments may not be indicative of results or developments in subsequent periods.
Any forward-looking statements, which we make in this report, speak only as of the date of such statement, and we undertake no obligation to update such statements. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.
This Quarterly Report on Form 10-Q may contain references to our trademarks and to trademarks belonging to other entities. Solely for convenience, trademarks and trade names referred to in this Quarterly Report on Form 10-Q, including logos, artwork and other visual displays, may appear without the ® or TM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensor to these trademarks and trade names. We do not intend our use or display of other companies’ trade names or trademarks to imply a relationship with, or endorsement or sponsorship of us by, any other company.
Unless otherwise indicated or the context requires, all references to the “Company,” “Lionsgate,” “we,” “us,” and “our” refer to Lions Gate Entertainment Corp., a corporation organized under the laws of the province of British Columbia, Canada, and its direct and indirect subsidiaries.

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

LIONS GATE ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
December 31,
2020
March 31,
2020
September 30,
2021
March 31,
2021
(Amounts in millions)(Amounts in millions)
ASSETSASSETSASSETS
Cash and cash equivalentsCash and cash equivalents$551.5 $318.2 Cash and cash equivalents$442.6 $528.7 
Accounts receivable, netAccounts receivable, net386.4 522.0 Accounts receivable, net419.3 383.7 
Program rights310.5 
Other current assetsOther current assets158.7 157.4 Other current assets186.3 274.3 
Total current assetsTotal current assets1,096.6 1,308.1 Total current assets1,048.2 1,186.7 
Investment in films and television programs and program rights, netInvestment in films and television programs and program rights, net1,961.4 1,517.3 Investment in films and television programs and program rights, net2,788.1 2,222.7 
Property and equipment, netProperty and equipment, net93.8 140.9 Property and equipment, net84.7 91.1 
InvestmentsInvestments32.5 40.3 Investments61.1 31.9 
Intangible assetsIntangible assets1,609.3 1,719.6 Intangible assets1,508.3 1,575.1 
GoodwillGoodwill2,833.5 2,833.5 Goodwill2,764.5 2,764.5 
Other assetsOther assets380.9 391.5 Other assets492.5 434.2 
Total assetsTotal assets$8,008.0 $7,951.2 Total assets$8,747.4 $8,306.2 
LIABILITIESLIABILITIESLIABILITIES
Accounts payable and accrued liabilitiesAccounts payable and accrued liabilities$479.6 $526.9 Accounts payable and accrued liabilities$538.2 $545.4 
Participations and residualsParticipations and residuals477.4 441.9 Participations and residuals496.5 508.8 
Film obligations and production loans310.1 353.7 
Film related and other obligationsFilm related and other obligations546.4 385.0 
Debt - short term portionDebt - short term portion82.7 68.6 Debt - short term portion40.0 88.0 
Deferred revenueDeferred revenue141.9 116.6 Deferred revenue276.7 165.7 
Total current liabilitiesTotal current liabilities1,491.7 1,507.7 Total current liabilities1,897.8 1,692.9 
DebtDebt2,562.1 2,664.4 Debt2,395.0 2,542.9 
Participations and residualsParticipations and residuals328.2 421.6 Participations and residuals312.0 304.6 
Film obligations and production loans213.9 96.9 
Film related and other obligationsFilm related and other obligations712.2 318.5 
Other liabilitiesOther liabilities382.9 334.9 Other liabilities345.6 337.1 
Deferred revenueDeferred revenue54.2 61.3 Deferred revenue49.0 56.2 
Deferred tax liabilitiesDeferred tax liabilities36.4 36.6 Deferred tax liabilities42.2 40.3 
Redeemable noncontrolling interestsRedeemable noncontrolling interests191.5 167.8 Redeemable noncontrolling interests243.2 219.1 
Commitments and contingencies (Note 15)Commitments and contingencies (Note 15)00Commitments and contingencies (Note 15)00
EQUITYEQUITYEQUITY
Class A voting common shares, no par value, 500.0 shares authorized, 83.0 shares issued (March 31, 2020 - 83.0 shares issued)662.1 659.2 
Class B non-voting common shares, no par value, 500.0 shares authorized, 137.9 shares issued (March 31, 2020 - 136.4 shares issued)2,272.0 2,221.7 
Class A voting common shares, no par value, 500.0 shares authorized, 83.1 shares issued (March 31, 2021 - 83.0 shares issued)Class A voting common shares, no par value, 500.0 shares authorized, 83.1 shares issued (March 31, 2021 - 83.0 shares issued)665.9 663.2 
Class B non-voting common shares, no par value, 500.0 shares authorized, 141.6 shares issued (March 31, 2021 - 138.2 shares issued)Class B non-voting common shares, no par value, 500.0 shares authorized, 141.6 shares issued (March 31, 2021 - 138.2 shares issued)2,314.3 2,296.0 
Accumulated deficitAccumulated deficit(18.8)(16.9)Accumulated deficit(143.0)(82.9)
Accumulated other comprehensive lossAccumulated other comprehensive loss(170.1)(206.0)Accumulated other comprehensive loss(89.2)(83.3)
Total Lions Gate Entertainment Corp. shareholders' equityTotal Lions Gate Entertainment Corp. shareholders' equity2,745.2 2,658.0 Total Lions Gate Entertainment Corp. shareholders' equity2,748.0 2,793.0 
Noncontrolling interestsNoncontrolling interests1.9 2.0 Noncontrolling interests2.4 1.6 
Total equityTotal equity2,747.1 2,660.0 Total equity2,750.4 2,794.6 
Total liabilities and equityTotal liabilities and equity$8,008.0 $7,951.2 Total liabilities and equity$8,747.4 $8,306.2 
See accompanying notes.
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LIONS GATE ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions, except per share amounts) (Amounts in millions, except per share amounts)
RevenuesRevenues$836.4 $998.5 $2,395.0 $2,945.7 Revenues$887.8 $745.0 $1,789.0 $1,558.7 
ExpensesExpensesExpenses
Direct operatingDirect operating459.3 594.6 1,249.0 1,662.0 Direct operating483.2 366.8 969.3 789.8 
Distribution and marketingDistribution and marketing176.2 279.1 484.6 791.7 Distribution and marketing216.9 166.7 434.5 308.5 
General and administrationGeneral and administration115.6 108.7 343.3 317.3 General and administration110.0 118.8 240.6 227.8 
Depreciation and amortizationDepreciation and amortization45.8 51.9 142.9 143.0 Depreciation and amortization44.4 49.6 87.8 97.1 
Restructuring and otherRestructuring and other2.4 3.7 18.9 16.8 Restructuring and other3.5 13.4 6.7 16.4 
Total expensesTotal expenses799.3 1,038.0 2,238.7 2,930.8 Total expenses858.0 715.3 1,738.9 1,439.6 
Operating income (loss)37.1 (39.5)156.3 14.9 
Operating incomeOperating income29.8 29.7 50.1 119.1 
Interest expenseInterest expense(45.0)(48.7)(135.2)(145.7)Interest expense(44.0)(45.7)(85.7)(90.2)
Interest and other incomeInterest and other income0.5 2.0 2.2 7.0 Interest and other income24.1 0.1 28.0 1.8 
Other expenseOther expense(2.1)(3.6)(4.5)(9.7)Other expense(2.7)(0.7)(4.3)(2.3)
Loss on extinguishment of debtLoss on extinguishment of debt(1.4)(1.4)Loss on extinguishment of debt(0.4)— (27.1)— 
Gain (loss) on investmentsGain (loss) on investments0.3 (0.3)Gain (loss) on investments1.5 (4.7)1.5 0.4 
Equity interests loss(0.7)(4.6)(5.1)(15.7)
Equity interests income (loss)Equity interests income (loss)0.4 (1.9)1.1 (4.5)
Income (loss) before income taxesIncome (loss) before income taxes(10.2)(95.8)14.0 (150.9)Income (loss) before income taxes8.7 (23.2)(36.4)24.3 
Income tax provision(7.0)(2.0)(6.7)(6.5)
Income tax benefit (provision)Income tax benefit (provision)(5.6)1.5 (12.1)0.2 
Net income (loss)Net income (loss)(17.2)(97.8)7.3 (157.4)Net income (loss)3.1 (21.7)(48.5)24.5 
Less: Net loss attributable to noncontrolling interestsLess: Net loss attributable to noncontrolling interests3.3 6.6 11.5 14.0 Less: Net loss attributable to noncontrolling interests4.4 3.3 10.6 8.2 
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholdersNet income (loss) attributable to Lions Gate Entertainment Corp. shareholders$(13.9)$(91.2)$18.8 $(143.4)Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders$7.5 $(18.4)$(37.9)$32.7 
Per share information attributable to Lions Gate Entertainment Corp. shareholders:Per share information attributable to Lions Gate Entertainment Corp. shareholders:Per share information attributable to Lions Gate Entertainment Corp. shareholders:
Basic net income (loss) per common shareBasic net income (loss) per common share$(0.06)$(0.42)$0.09 $(0.66)Basic net income (loss) per common share$0.03 $(0.08)$(0.17)$0.15 
Diluted net income (loss) per common shareDiluted net income (loss) per common share$(0.06)$(0.42)$0.09 $(0.66)Diluted net income (loss) per common share$0.03 $(0.08)$(0.17)$0.15 
Weighted average number of common shares outstanding:Weighted average number of common shares outstanding:Weighted average number of common shares outstanding:
BasicBasic220.8 218.0 220.3 217.2 Basic224.4 220.4 223.1 220.0 
DilutedDiluted220.8 218.0 221.4 217.2 Diluted228.5 220.4 223.1 220.6 
See accompanying notes.
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LIONS GATE ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions)(Amounts in millions)
Net income (loss)Net income (loss)$(17.2)$(97.8)$7.3 $(157.4)Net income (loss)$3.1 $(21.7)$(48.5)$24.5 
Foreign currency translation adjustments, net of taxForeign currency translation adjustments, net of tax4.8 (0.9)5.6 0.5 Foreign currency translation adjustments, net of tax(1.1)0.5 (1.0)0.8 
Net unrealized gain (loss) on cash flow hedges, net of taxNet unrealized gain (loss) on cash flow hedges, net of tax30.6 23.1 30.3 (43.7)Net unrealized gain (loss) on cash flow hedges, net of tax19.0 6.7 (4.9)(0.3)
Comprehensive income (loss)Comprehensive income (loss)18.2 (75.6)43.2 (200.6)Comprehensive income (loss)21.0 (14.5)(54.4)25.0 
Less: Comprehensive loss attributable to noncontrolling interestsLess: Comprehensive loss attributable to noncontrolling interests3.3 6.6 11.5 14.0 Less: Comprehensive loss attributable to noncontrolling interests4.4 3.3 10.6 8.2 
Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholdersComprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders$21.5 $(69.0)$54.7 $(186.6)Comprehensive income (loss) attributable to Lions Gate Entertainment Corp. shareholders$25.4 $(11.2)$(43.8)$33.2 
See accompanying notes.

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LIONS GATE ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Three Months EndedThree Months Ended
Class A VotingClass B Non-VotingRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive LossLions Gate Entertainment Corp. Shareholders' EquityNoncontrolling Interests (a) Total EquityClass A VotingClass B Non-VotingRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive LossLions Gate Entertainment Corp. Shareholders' EquityNoncontrolling Interests (a) Total Equity
Common SharesCommon Shares Common SharesCommon Shares
NumberAmountNumberAmount NumberAmountNumberAmount
(Amounts in millions)(Amounts in millions)
Balance at September 30, 202082.9 $660.8 137.6 $2,254.4 $2.4 $(205.5)$2,712.1 $2.2 $2,714.3 
Balance at June 30, 2021Balance at June 30, 202183.0 $664.9 139.6 $2,318.6 $(139.1)$(107.2)$2,737.2 $2.2 $2,739.4 
Exercise of stock optionsExercise of stock options— — — 0.4 — — 0.4 — 0.4 
Share-based compensation, net of share cancellations for taxesShare-based compensation, net of share cancellations for taxes0.1 1.0 2.0 (4.7)— — (3.7)— (3.7)
Share-based compensation, net0.1 1.2 0.3 17.5 — — 18.7 — 18.7 
Issuance of common shares0.1 0.1 — — 0.2 — 0.2 
Noncontrolling interestsNoncontrolling interests— — — — — — — (0.2)(0.2)Noncontrolling interests— — — — — — — 0.1 0.1 
Net incomeNet income— — — — 7.5 — 7.5 0.1 7.6 
Other comprehensive incomeOther comprehensive income— — — — — 18.0 18.0 — 18.0 
Redeemable noncontrolling interests adjustments to redemption valueRedeemable noncontrolling interests adjustments to redemption value— — — — (11.4)— (11.4)— (11.4)
Balance at September 30, 2021Balance at September 30, 202183.1 $665.9 141.6 $2,314.3 $(143.0)$(89.2)$2,748.0 $2.4 $2,750.4 
Balance at June 30, 2020Balance at June 30, 202082.9 $659.3 136.9 $2,232.4 $28.3 $(212.6)$2,707.4 $2.1 $2,709.5 
Share-based compensation, net of share cancellations for taxesShare-based compensation, net of share cancellations for taxes— 1.5 0.7 22.0 — — 23.5 — 23.5 
Net income (loss)Net income (loss)— — — — (13.9)— (13.9)(0.1)(14.0)Net income (loss)— — — — (18.4)— (18.4)0.1 (18.3)
Other comprehensive incomeOther comprehensive income— — — — 35.4 35.4 — 35.4 Other comprehensive income— — — — — 7.1 7.1 — 7.1 
Redeemable noncontrolling interests adjustments to redemption valueRedeemable noncontrolling interests adjustments to redemption value— — — — (7.3)— (7.3)— (7.3)Redeemable noncontrolling interests adjustments to redemption value— — — — (7.5)— (7.5)— (7.5)
Balance at December 31, 202083.0 $662.1 137.9 $2,272.0 $(18.8)$(170.1)$2,745.2 $1.9 $2,747.1 
Balance at September 30, 201982.7 $652.3 135.2 $2,189.0 $143.7 $(145.6)$2,839.4 $2.9 $2,842.3 
Share-based compensation, net0.1 1.2 0.3 13.7 — — 14.9 — 14.9 
Issuance of common shares0.9 8.4 0.8 8.5 — — 16.9 — 16.9 
Noncontrolling interests— — — — — — — (0.9)(0.9)
Net income— — — — (91.2)— (91.2)0.2 (91.0)
Other comprehensive loss— — — — 22.1 22.1 — 22.1 
Redeemable noncontrolling interests adjustments to redemption value— — — — (8.0)— (8.0)— (8.0)
Balance at December 31, 201983.7 $661.9 136.3 $2,211.2 $44.5 $(123.5)$2,794.1 $2.2 $2,796.3 
Balance at September 30, 2020Balance at September 30, 202082.9 $660.8 137.6 $2,254.4 $2.4 $(205.5)$2,712.1 $2.2 $2,714.3 
_____________________
(a)Excludes redeemable noncontrolling interests, which are reflected in temporary equity (see Note 8).
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LIONS GATE ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Nine Months EndedSix Months Ended
Class A VotingClass B Non-VotingRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive LossLions Gate Entertainment Corp. Shareholders' EquityNoncontrolling Interests (a) Total EquityClass A VotingClass B Non-VotingRetained Earnings (Accumulated Deficit)Accumulated Other Comprehensive LossLions Gate Entertainment Corp. Shareholders' EquityNoncontrolling Interests (a) Total Equity
Common SharesCommon Shares Common SharesCommon Shares
NumberAmountNumberAmount NumberAmountNumberAmount
(Amounts in millions)(Amounts in millions)
Balance at March 31, 2021Balance at March 31, 202183.0 $663.2 138.2 $2,296.0 $(82.9)$(83.3)$2,793.0 $1.6 $2,794.6 
Exercise of stock optionsExercise of stock options— 0.4 0.2 2.3 — — 2.7 — 2.7 
Share-based compensation, net of share cancellations for taxesShare-based compensation, net of share cancellations for taxes0.1 2.2 3.2 15.9 — — 18.1 — 18.1 
Issuance of common sharesIssuance of common shares— 0.1 — 0.1 — — 0.2 — 0.2 
Noncontrolling interestsNoncontrolling interests— — — — — — — 0.8 0.8 
Net lossNet loss— — — — (37.9)— (37.9)— (37.9)
Other comprehensive lossOther comprehensive loss— — — — — (5.9)(5.9)— (5.9)
Redeemable noncontrolling interests adjustments to redemption valueRedeemable noncontrolling interests adjustments to redemption value— — — — (22.2)— (22.2)— (22.2)
Balance at September 30, 2021Balance at September 30, 202183.1 $665.9 141.6 $2,314.3 $(143.0)$(89.2)$2,748.0 $2.4 $2,750.4 
Balance at March 31, 2020Balance at March 31, 202083.0 $659.2 136.4 $2,221.7 $(16.9)$(206.0)$2,658.0 $2.0 $2,660.0 Balance at March 31, 202083.0 $659.2 136.4 $2,221.7 $(16.9)$(206.0)$2,658.0 $2.0 $2,660.0 
Share-based compensation, net0.2 3.7 1.5 50.1 — — 53.8 — 53.8 
Share-based compensation, net of share cancellations for taxesShare-based compensation, net of share cancellations for taxes0.1 2.5 1.2 32.6 — — 35.1 — 35.1 
Issuance of common sharesIssuance of common shares0.2 0.2 — — 0.4 — 0.4 Issuance of common shares— 0.1 — 0.1 — — 0.2 — 0.2 
Repurchase of common sharesRepurchase of common shares(0.2)(1.0)— — (1.0)— (1.0)Repurchase of common shares(0.2)(1.0)— — — — (1.0)— (1.0)
Noncontrolling interestsNoncontrolling interests— — — — — — — (0.1)(0.1)Noncontrolling interests— — — — — — — 0.1 0.1 
Net incomeNet income— — — — 18.8 — 18.8 18.8 Net income— — — — 32.7 — 32.7 0.1 32.8 
Other comprehensive incomeOther comprehensive income— — — — 35.9 35.9 — 35.9 Other comprehensive income— — — — — 0.5 0.5 — 0.5 
Redeemable noncontrolling interests adjustments to redemption valueRedeemable noncontrolling interests adjustments to redemption value— — — — (20.7)— (20.7)— (20.7)Redeemable noncontrolling interests adjustments to redemption value— — — — (13.4)— (13.4)— (13.4)
Balance at December 31, 202083.0 $662.1 137.9 $2,272.0 $(18.8)$(170.1)$2,745.2 $1.9 $2,747.1 
Balance at March 31, 201982.5 $649.7 133.5 $2,140.6 $208.7 $(80.3)$2,918.7 $3.2 $2,921.9 
Exercise of stock options0.1 0.5 — — 0.5 — 0.5 
Share-based compensation, net0.3 3.7 0.6 33.4 — — 37.1 — 37.1 
Issuance of common shares0.9 8.5 2.1 36.7 — — 45.2 — 45.2 
Noncontrolling interests— — — — — — — (1.1)(1.1)
Net loss— — — — (143.4)— (143.4)0.1 (143.3)
Other comprehensive loss— — — — (43.2)(43.2)— (43.2)
Redeemable noncontrolling interests adjustments to redemption value— — — — (20.8)— (20.8)— (20.8)
Balance at December 31, 201983.7 $661.9 136.3 $2,211.2 $44.5 $(123.5)$2,794.1 $2.2 $2,796.3 
Balance at September 30, 2020Balance at September 30, 202082.9 $660.8 137.6 $2,254.4 $2.4 $(205.5)$2,712.1 $2.2 $2,714.3 
_____________________
(a)Excludes redeemable noncontrolling interests, which are reflected in temporary equity (see Note 8).

See accompanying notes.
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LIONS GATE ENTERTAINMENT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months EndedSix Months Ended
December 31,September 30,
2020201920212020
(Amounts in millions) (Amounts in millions)
Operating Activities:Operating Activities:Operating Activities:
Net income (loss)Net income (loss)$7.3 $(157.4)Net income (loss)$(48.5)$24.5 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortizationDepreciation and amortization142.9 143.0 Depreciation and amortization87.8 97.1 
Amortization of films and television programs and program rightsAmortization of films and television programs and program rights853.6 1,306.0 Amortization of films and television programs and program rights730.1 531.4 
Amortization of debt financing costs and other non-cash interestAmortization of debt financing costs and other non-cash interest30.6 11.2 Amortization of debt financing costs and other non-cash interest24.2 18.5 
Non-cash share-based compensationNon-cash share-based compensation60.1 41.4 Non-cash share-based compensation54.9 40.1 
Other amortizationOther amortization51.7 46.1 Other amortization50.5 32.2 
Loss on extinguishment of debtLoss on extinguishment of debt1.4 Loss on extinguishment of debt27.1 — 
Equity interests loss5.1 15.7 
Equity interests (income) lossEquity interests (income) loss(1.1)4.5 
Loss (gain) on investmentsLoss (gain) on investments(0.3)0.3 Loss (gain) on investments(1.5)(0.4)
Deferred income taxesDeferred income taxes0.8 Deferred income taxes1.7 — 
Changes in operating assets and liabilities:Changes in operating assets and liabilities:Changes in operating assets and liabilities:
Accounts receivable, net and other assetsAccounts receivable, net and other assets133.6 271.0 Accounts receivable, net and other assets(134.2)150.6 
Investment in films and television programs and program rights, netInvestment in films and television programs and program rights, net(984.7)(1,136.1)Investment in films and television programs and program rights, net(1,149.7)(467.1)
Accounts payable and accrued liabilitiesAccounts payable and accrued liabilities(7.7)(33.8)Accounts payable and accrued liabilities(45.2)(94.9)
Participations and residualsParticipations and residuals(58.3)(63.8)Participations and residuals5.0 (85.1)
Film obligations(92.6)(3.8)
Program rights and other film obligationsProgram rights and other film obligations(35.8)(46.7)
Deferred revenueDeferred revenue18.0 (7.6)Deferred revenue102.2 (1.2)
Net Cash Flows Provided By Operating Activities159.3 434.4 
Net Cash Flows Provided By (Used In) Operating ActivitiesNet Cash Flows Provided By (Used In) Operating Activities(332.5)203.5 
Investing Activities:Investing Activities:Investing Activities:
Proceeds from the sale of PantayaProceeds from the sale of Pantaya123.6 — 
Proceeds from the sale of other investmentsProceeds from the sale of other investments5.1 Proceeds from the sale of other investments— 5.1 
Investment in equity method investees and otherInvestment in equity method investees and other(0.2)(14.8)Investment in equity method investees and other(9.4)(0.2)
Acquisition of assets (film library and related assets)Acquisition of assets (film library and related assets)(161.4)— 
Capital expendituresCapital expenditures(25.8)(24.0)Capital expenditures(14.6)(17.1)
Net Cash Flows Used In Investing ActivitiesNet Cash Flows Used In Investing Activities(20.9)(38.8)Net Cash Flows Used In Investing Activities(61.8)(12.2)
Financing Activities:Financing Activities:Financing Activities:
Debt - borrowings160.0 597.1 
Debt - repayments(210.9)(738.6)
Production loans - borrowings219.2 54.0 
Production loans - repayments(51.9)(290.9)
Debt - borrowings, net of debt issuance and redemption costsDebt - borrowings, net of debt issuance and redemption costs1,947.2 75.0 
Debt - repurchases and repaymentsDebt - repurchases and repayments(2,175.6)(109.1)
Production and related loans - borrowings, net of debt issuance costsProduction and related loans - borrowings, net of debt issuance costs562.1 47.8 
Production and related loans - repaymentsProduction and related loans - repayments(186.6)(44.1)
IP Credit Facility and other financing advances, net of debt issuance costsIP Credit Facility and other financing advances, net of debt issuance costs213.6 — 
Interest rate swap settlement paymentsInterest rate swap settlement payments(15.4)Interest rate swap settlement payments(14.4)(8.5)
Repurchase of common sharesRepurchase of common shares(2.2)Repurchase of common shares— (2.2)
Distributions to noncontrolling interestDistributions to noncontrolling interest(2.8)(4.5)Distributions to noncontrolling interest(0.1)(2.0)
Exercise of stock optionsExercise of stock options0.5 Exercise of stock options2.9 — 
Tax withholding required on equity awardsTax withholding required on equity awards(7.0)(3.1)Tax withholding required on equity awards(33.2)(5.4)
Net Cash Flows Provided By (Used In) Financing ActivitiesNet Cash Flows Provided By (Used In) Financing Activities89.0 (385.5)Net Cash Flows Provided By (Used In) Financing Activities315.9 (48.5)
Net Change In Cash and Cash Equivalents227.4 10.1 
Foreign Exchange Effects on Cash and Cash Equivalents5.9 1.1 
Cash and Cash Equivalents - Beginning Of Period318.2 184.3 
Cash and Cash Equivalents - End Of Period$551.5 $195.5 
Net Change In Cash, Cash Equivalents and Restricted CashNet Change In Cash, Cash Equivalents and Restricted Cash(78.4)142.8 
Foreign Exchange Effects on Cash, Cash Equivalents and Restricted CashForeign Exchange Effects on Cash, Cash Equivalents and Restricted Cash(2.5)2.7 
Cash, Cash Equivalents and Restricted Cash - Beginning Of PeriodCash, Cash Equivalents and Restricted Cash - Beginning Of Period528.7 318.2 
Cash, Cash Equivalents and Restricted Cash - End Of PeriodCash, Cash Equivalents and Restricted Cash - End Of Period$447.8 $463.7 

See accompanying notes.
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LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1. General
Nature of Operations
Combining the STARZ premium global subscription platform with world-class motion picture and television studio operations, Lions Gate Entertainment Corp. (the “Company,” “Lionsgate,” "Lions Gate," “we,” “us” or “our”) brings a unique and varied portfolio of entertainment to consumers around the world. Its film, television, subscription and location-based entertainment businesses are backed by a 17,000-title library and one of the largest collectioncollections of film and television franchises in the independent media space. A digital age company driven by its entrepreneurial culture and commitment to innovation, the Lionsgate brand is synonymous with bold, original, relatable entertainment for the audiences it serves worldwide.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include the accounts of Lionsgate and all of its majority-owned and controlled subsidiaries.
The unaudited condensed consolidated financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to quarterly report on Form 10-Q under the Securities Exchange Act of 1934, as amended, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been reflected in these unaudited condensed consolidated financial statements. Operating results for the three and ninesix months ended December 31, 2020September 30, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2021.2022. The balance sheet at March 31, 20202021 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read together with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2020.2021.
Certain amounts presented in prior periods have been reclassified to conform to the current period presentation.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions, including the potential impacts arising from the COVID-19 global pandemic, that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. The most significant estimates made by management in the preparation of the financial statements relate to ultimate revenue and costs used for the amortization of investment in films and television programs and licensed program rights; estimates of sales returns and other allowances and provisions for doubtful accounts;returns; estimates related to the revenue recognition of sales or usage-based royalties; fair value of equity-based compensation; fair value of assets and liabilities for allocation of the purchase price of companies acquired; income taxes including the assessment of valuation allowances for deferred tax assets; accruals for contingent liabilities; and impairment assessments for investment in films and television programs and licensed program rights, property and equipment, equity investments, goodwill and intangible assets. Actual results could differ from such estimates.
Recent Accounting Pronouncements
Accounting Guidance Adopted in Fiscal 20212022
Fair Value Measurement - Changes to Disclosure Requirements
Reference Rate Reform:: In August 2018,March 2020, the Financial Accounting Standards Board ("FASB") issued guidance that eliminates, addswhich provides optional expedients and modifiesexceptions for applying U.S. GAAP to contract modifications, hedging relationships, and other transactions affected by the market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates, if certain disclosure requirementscriteria are met. Additionally, in January 2021, the FASB issued additional guidance, which allows entities to elect certain optional expedients and exceptions when accounting for fair value measurements. Thisderivative contracts and certain hedging relationships affected by changes in the interest rates. The guidance eliminates the requirement that entities disclose the amount ofis applicable to contract modifications made and reasons for transfershedging relationships entered into between Level 1March 12, 2020 and Level 2 of the fair value hierarchy, but requires public companies to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements, among other changes.December 31, 2022. The Company adopted this guidance on AprilJuly 1, 2020,2021 and is applying its provisions prospectively through December 31, 2022, with no material impact to itsthe Company’s consolidated financial statements. See Note 16 for further information.

Improvements to Accounting for Costs of Films and License Agreements for Program Materials: On April 1, 2020, the Company adopted, on a prospective basis, FASB guidance on the accounting for costs of films and episodic television series
0
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LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


which aligns the accounting for capitalizing production costs of episodic television series with guidance for films. The following reflects some of the more significant changes under the new guidance:
2. Acquisitions and Dispositions

Spyglass. Classification in balance sheet: Allows for the classification of licensed program rights as long-term assets. Previously,On July 15, 2021, the Company reportedpurchased approximately 200 feature film titles (the "Spyglass Library") from Spyglass Media Group, LLC ("Spyglass"). The Company also formed a portionstrategic content partnership through an investment of these rightsa 18.9% preferred equity interest in current assets. After adoption,Spyglass, and entered into a multiyear first-look television arrangement with Spyglass. The purchase price, including acquisition costs, of the Company now classifies licensed program rights as long-term assets. Accordingly, as of April 1, 2020, the Company has classified $310.5Spyglass Library and preferred equity interest was $191.4 million, of these rights as non-current assets in the balance sheet.

Removes capitalization constraint for episodic television: The capitalization of production costs for episodic television series is no longer constrained until persuasive evidence of secondary market revenues exists. Previously, theatrical content production costs couldwhich $171.4 million was paid at closing and $20.0 million will be fully capitalized while episodic television production costs were generally limited to the amount of contracted revenues.

Monetization strategy: Requires the determination of a titles' monetization strategy for purposes of amortization and testing impairment as follows:
Monetized individually - lifetime value is predominantly derived from third-party revenues that are directly attributable to the specific film or television title (e.g., theatrical revenues or sales to third-party television programmers).
Monetized as a film group - lifetime value is predominantly derived from third-party revenues that are attributable only to a bundle of titles, which is referred to as a "film group" in the updated guidance. A film group is defined as the lowest level at which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements.

The determination of the monetization strategy is made at commencement of production on a consolidated basis. Because the new accounting guidance is applied prospectively, the predominant monetization strategy for content released prior to the beginning of fiscal 2021 is determined based on the expected means of monetizationpaid over the remaining life of the content.next two years. The classification of contentSpyglass Library was accounted for as individually monetized or monetized as part of a film group only changes if therean asset acquisition and is a significant change to the title's monetization strategy relative to its initial assessment.

For these accounting purposes, the Company generally classifies content that is initially intended for use on the Company's Media Networks services (including its linear television networks, OTT services and direct-to-consumer services) as content monetized as a film group. Content initially intended for theatrical release, home entertainment distribution, or for license to third parties, is generally classified as content monetized individually.

Impairment testing: The new guidance requires that an entity test a film or television program for impairment, when impairment indicators are present, at a film group level when the film or license agreement is predominantly monetized with other films and/or license agreements or individually for titles monetized individually. An impairment results when the fair value of the film or film group is less than its carrying value. Under previous guidance,included in investment in film and television programs on our unaudited condensed consolidated balance sheet. The preferred equity interest was accounted for underas an equity-method investment (see Note 4).
Pantaya. On March 31, 2021, the broadcasting accounting standard (i.e., licensed productCompany sold its 75% majority interest in Pantaya to Hemisphere Media Group for approximately $123.6 million in cash, subject to certain customary adjustments pursuant to the terms of the agreement. Under the terms of the purchase agreement, control of Pantaya transferred to Hemisphere Media Group on March 31, 2021, with the cash consideration transferred on April 1, 2021. The receivable for the cash purchase consideration was included in other current assets as of March 31, 2021. Pantaya was previously reflected in and represented substantially all of "Other Streaming Services" in the Company's Media Networks segment) were carriedsegment (see Note 14). The Company recorded a gain before income taxes of approximately $44.1 million, which was reflected in the gain on sale of Pantaya line item in the balance sheet atconsolidated statement of operations in the loweryear ended March 31, 2021. This gain amount was net of cost or net realizable value rather than fair value.$69.0 million of goodwill allocated from the Media Networks segment as required under the applicable accounting guidance.

See Note 2 for further information.
3. Investment in Films and Television Programs and Licensed Program Rights
Total investment in films and television programs and licensed program rights by predominant monetization strategy is as follows:
September 30,
2021
March 31,
2021
 (Amounts in millions)
Investment in Films and Television Programs:
Individual Monetization
Released, net of accumulated amortization$516.5 $414.7 
Completed and not released24.0 60.3 
In progress743.1 418.7 
In development97.8 92.9 
1,381.4 986.6 
Film Group Monetization
Released, net of accumulated amortization403.5 200.4 
Completed and not released— — 
In progress581.1 497.1 
In development22.9 28.2 
1,007.5 725.7 
Licensed program rights, net of accumulated amortization399.2 510.4 
Investment in films and television programs and licensed program rights, net$2,788.1 $2,222.7 

Financial Instruments
At September 30, 2021, acquired film and television libraries have remaining unamortized costs of $157.5 million, which are monetized individually and are being amortized using the individual-film-forecast method over a remaining period of approximately 19.7 years (March 31, 2021 - Credit Losses: In June 2016, the FASB issued guidance, as amended, that changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, from the incurred loss methodology under current U.S. GAAP to a new, forward-looking current expected credit loss model that would generally result in the earlier recognitionunamortized costs of credit losses. The Company adopted this guidance on April 1, 2020 using a modified retrospective approach, with no material impact to its consolidated financial statements.
Accounting Guidance Not Yet Adopted$18.3 million).

SimplifyingAmortization of investment in film and television programs and licensed program rights by predominant monetization strategy is as follows for the Accounting for Income Taxes: In December 2019, the FASB issued guidance that simplifies the accounting for income taxes. The guidance amends the rules for recognizing deferred taxes for investments, performing intraperiod tax allocationsthree and calculating income taxessix months ended September 30, 2021 and 2020, and was included in interim periods. It also reduces complexity in certain areas, including the accounting for transactions that result in a step-updirect operating expense in the tax basisunaudited condensed consolidated statements of goodwill and allocating taxes to members of a consolidated group. The guidance is effective for the Company's fiscal year beginning April 1, 2021, with early adoptionoperations:
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


permitted. The Company does not expect that the adoption of this guidance will have a material effect on its consolidated financial statements.
Three Months EndedSix Months Ended
September 30,September 30,
2021202020212020
 (Amounts in millions)
Amortization expense:
Individual monetization$183.7 $106.3 $419.5 $228.8 
Film group monetization88.6 66.4 120.7 114.6 
Licensed program rights86.7 77.5 189.9 188.0 
$359.0 $250.2 $730.1 $531.4 

2. Investment in Films and Television Programs and Licensed Program Rights
Investment in Films and Television Programs
General. Investment in films and television programs includes the unamortized costs of films and television programs, a portion of which are monetized individually (i.e., through domestic theatrical, home entertainment, television, international or other ancillary-market distribution), and a portion of which are monetized as part of a film group (i.e., primarily content internally produced by our Television Production segment for our Media Networks segment).
Recording Cost. Costs of acquiring and producing films and television programs and of acquired libraries are capitalized when incurred. For films and television programs produced by the Company, capitalized costs include all direct production and financing costs, capitalized interest and production overhead. For acquired films and television programs, capitalized costs consist of minimum guarantee payments to acquire the distribution rights.
Amortization. Costs of acquiring and producing films and television programs and of acquired libraries that are monetized individually are amortized using the individual-film-forecast method, whereby these costs are amortized and participations and residuals costs are accrued in the proportion that current year’s revenue bears to management’s estimate of ultimate revenue at the beginning of the current year expected to be recognized from the exploitation, exhibition or sale of the films or television programs.
For investment in films and television programs monetized as a group, see further discussion below under Licensed Program Rights for a description of recording cost and amortization of costs monetized as a group.
Ultimate Revenue. Ultimate revenue includes estimates over a period not to exceed ten years following the date of initial release of the motion picture. For an episodic television series, the period over which ultimate revenues are estimated cannot exceed ten years following the date of delivery of the first episode, or, if still in production, five years from the date of delivery of the most recent episode, if later. For titles included in acquired libraries, ultimate revenue includes estimates over a period not to exceed twenty years following the date of acquisition.
Development. Films and television programs in development include costs of acquiring film rights to books, stage plays or original screenplays and costs to adapt such projects. Such costs are capitalized and, upon commencement of production, are transferred to production costs. Projects in development are written off at the earlier of the date they are determined not to be recoverable or when abandoned, or three years from the date of the initial investment unless the fair value of the project exceeds its carrying cost.
Licensed Program Rights
General. Licensed program rights include content licensed from third parties that is monetized as part of a film group for distribution on Media Networks distribution platforms. Licensed content is comprised of films or series that have been previously produced by third parties and the Company retains specified airing rights over a contractual term. Program licenses typically have fixed terms and require payments during the term of the license.
Recording Cost. The cost of licensed content is capitalized when the cost is known or reasonably determinable, the license period for programs has commenced, the program materials have been accepted by the Company in accordance with the license agreements, and the programs are available for the first showing. Licensed programming rights may include rights to more than one exploitation window under the Company's output and library agreements. For films with multiple windows, the license fee is allocated between the windows based upon the proportionate estimated fair value of each window which generally results in the majority of the cost allocated to the first window on newer releases. Certain license agreements may include additional ancillary rights in addition to the pay television rights. The cost of the Media Networks’ third-party licensed content is allocated between the pay television market distributed by the Media Networks’ segment and the ancillary revenue markets (e.g., home video, digital platforms, international television, etc.) based on the estimated relative fair values of these markets. Our estimates of fair value for the pay television and ancillary markets and windows of exploitation involve uncertainty and management judgment.
Amortization. The cost of program rights for films and television programs (including original series) exhibited by the Media Networks segment are generally amortized on an accelerated or straight-line basis based on the anticipated number of exhibitions or expected and historical viewership patterns or the license period on a title-by-title or episode-by-episode basis. The number of exhibitions is estimated based on the number of exhibitions allowed in the agreement (if specified) and the expected usage of the content. Participations and residuals are expensed in line with the amortization of production costs.
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LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


Changes in management’s estimate of the anticipated exhibitions and viewership patterns of films and original series on our networks could result in the earlier recognition of our programming costs than anticipated. Conversely, scheduled exhibitions and expected viewership patterns may not capture the appropriate usage of the program rights in current periods which would lead to the write-off of additional program rights in future periods and may have a significant impact on our future results of operations and our financial position.
Impairment Assessment for Investment in Films and Television Programs and Licensed Program Rights
General. A film group or individual film or television program is evaluated for impairment when an event or change in circumstances indicates that the fair value of an individual film or film group is less than its unamortized cost. A film group represents the unit of account for impairment testing for a film or license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group is defined as the lowest level at which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements.
Content Monetized Individually. For content that is predominantly monetized individually (primarily investment in film and television programs related to the Motion Picture and Television Production segments), whenever events or changes in circumstances indicate that the fair value of the individual film may be less than its unamortized costs, the unamortized costs of the individual film are compared to the estimated fair value of the individual film. The fair value is determined based on a discounted cash flow analysis of the cash flows directly attributable to the title. To the extent the unamortized costs exceed the fair value, an impairment charge is recorded for the excess.
Content Monetized as a Group. For content that is predominantly monetized as a group (primarily licensed program rights in the Media Networks segment and internally produced programming, as discussed above), whenever events or changes in circumstances indicate that the fair value of the film group may be less than its unamortized costs, the aggregate unamortized costs of the group are compared to the present value of the discounted cash flows of the group using the lowest level for which identifiable cash flows are independent of other produced and licensed content. The Company's film groups are generally aligned along the Company's networks and digital content offerings domestically (i.e., Starz Networks and Other Streaming Services) and by territory or groups of territories internationally, wherein content assets are shared across the various territories and therefore, the territory or group of territories is the film group. If the unamortized costs exceed the present value of discounted cash flows, an impairment charge is recorded for the excess and allocated to individual titles based on the relative carrying value of each title in the group.
Valuation Assumptions. The discounted cash flow analysis includes cash flows estimates of ultimate revenue and costs as well as a discount rate (a Level 3 fair value measurement, see Note 7). The discount rate utilized in the discounted cash flow analysis is based on the weighted average cost of capital of the Company plus a risk premium representing the risk associated with producing a particular film or television program or film group. The fair value of any film costs associated with a film or television program that management plans to abandon is zero. Estimates of future revenue involve measurement uncertainty and it is therefore possible that reductions in the carrying value of investment in films and television programs may be required as a consequence of changes in management’s future revenue estimates.
Impairments. Investment in films and television programs and licensed program rights includes write-downs to fair value, which are included in direct operating expense on the unaudited condensed consolidated statements of operations, and represented the following amounts by segment for the three and ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Impairments by segment:Impairments by segment:Impairments by segment:
Motion PictureMotion Picture$13.7 $37.2 $14.6 $38.8 Motion Picture$0.1 $0.3 $0.1 $0.9 
Television ProductionTelevision Production5.2 8.0 0.7 Television Production1.6 2.8 26.6 2.8 
Impairments not included in segment operating results(1)
Impairments not included in segment operating results(1)
74.0 15.4 74.0 
Impairments not included in segment operating results(1)
— 15.4 — 15.4 
$1.7 $18.5 $26.7 $19.1 
$18.9 $111.2 $38.0 $113.5 
________________________
(1)Impairments not included in segment operating results in the ninethree and six months ended December 31,September 30, 2020 represent a charge due to changes in performance expectations resulting from circumstances associated with the COVID-19 global pandemic. In the three and nine months ended December 31, 2019, amounts represent certain programming and content charges recorded as a result of changes to the Company's programming and broadcasting strategy in connection with management changes (see Note 13 and Note 14).
Total investment in films and television programs and licensed program rights by predominant monetization strategy is as follows:
December 31,
2020
(Amounts in millions)
Investment in Films and Television Programs:
Individual Monetization
Released, net of accumulated amortization$389.4 
Completed and not released139.5 
In progress304.9 
In development91.6 
925.4 
Film Group Monetization
Released, net of accumulated amortization$229.0 
Completed and not released
In progress292.8 
In development32.1 
553.9 
Licensed program rights, net of accumulated amortization$482.1 
Investment in films and television programs and program rights, net$1,961.4 

At December 31, 2020, acquired film and television libraries have remaining unamortized costs of $26.0 million, which are monetized individually and are being amortized using the individual-film-forecast method over a remaining period of approximately 20 years.

Amortization of investment in film and television programs and licensed program rights by predominant monetization strategy is as follows for the three and nine months ended December 31, 2020, and was included in direct operating expense in the unaudited condensed consolidated statement of operations:
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


Three Months EndedNine Months Ended
December 31,December 31,
20202020
 (Amounts in millions)
Amortization expense:
Individual monetization$132.9 $361.7 
Film group monetization78.6 193.2 
Licensed program rights110.7 298.7 
$322.2 $853.6 

Amortization of investment in film and television programs and licensed program rights for the three and nine months ended December 31, 2019 was $450.8 million and $1,306.0 million, respectively.

The table below summarizes estimated future amortization expense for the Company's investment in film and television programs and licensed program rights as of December 31, 2020:
Twelve Months Ended
December 31,
202120222023
 (Amounts in millions)
Estimated future amortization expense:
Released investment in films and television programs:
Individual monetization$135.2 $64.3 $48.0 
Film group monetization$102.0 $60.7 $27.4 
Licensed program rights$217.0 $87.3 $47.8 
Completed and not released investment in films and television programs:
Individual monetization$99.4 n/an/a
Film group monetization$n/an/a


3.4. Investments
The Company's investments consisted of the following:
December 31,
2020
March 31,
2020
 (Amounts in millions)
Investments in equity method investees$30.4 $34.3 
Other investments(1)
2.1 6.0 
$32.5 $40.3 
________________
(1)Includes investments in equity securities without readily determinable fair values of NaN and $5.4 million at December 31, 2020 and March 31, 2020, respectively.
September 30,
2021
March 31,
2021
 (Amounts in millions)
Investments in equity method investees$58.8 $30.1 
Other investments2.3 1.8 
$61.1 $31.9 

Equity Method Investments:
The Company has investments in various equity method investees with ownership percentages ranging from approximately 9% to 49%. These investments include:
STARZPLAY Arabia. STARZPLAY Arabia (Playco Holdings Limited) offers a STARZ-branded online subscription video-on-demand service in the Middle East and North Africa.
Roadside Attractions. Roadside Attractions is an independent theatrical distribution company.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


Pantelion Films. Pantelion Films is a joint venture with Videocine, an affiliate of Televisa, which produces, acquires and distributes a slate of English and Spanish language feature films that target Hispanic moviegoers in the U.S.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


Atom Tickets. Atom Tickets is the first-of-its-kind theatrical mobile ticketing platform and app.
Great Point Opportunity Fund. Great Point Opportunity Fund is a partnership to make investments in an operating company that will operate a studio facility in Yonkers, New York.
Spyglass. Spyglass is a global premium content company, focused on developing, producing, financing and acquiring motion pictures and television programming across all platforms for worldwide audiences.
Other. In addition to the equity method investments discussed above, the Company holds ownership interests in other immaterial equity method investees.
Summarized Financial Information:
STARZPLAY Arabia.Information. Summarized financial information for the Company's equity method investee, STARZPLAY Arabia,investees on an aggregate basis is set forth below:
December 31,
2020
March 31,
2020
September 30,
2021
March 31,
2021
(Amounts in millions) (Amounts in millions)
Current assetsCurrent assets$30.3 $37.0 Current assets$110.1 $135.2 
Non-current assetsNon-current assets$49.1 $26.0 Non-current assets$91.1 $177.7 
Current liabilitiesCurrent liabilities$131.3 $98.8 Current liabilities$208.6 $201.1 
Non-current liabilitiesNon-current liabilities$1.0 $0.9 Non-current liabilities$59.8 $91.7 

Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
RevenuesRevenues$10.2 $9.1 $36.6 $26.0 Revenues$22.8 $22.3 $37.1 $46.8 
Gross profitGross profit$0.8 $0.9 $0.6 $(0.1)Gross profit$4.8 $7.1 $8.7 $13.8 
Net lossNet loss$(8.1)$(15.1)$(24.6)$(36.5)Net loss$(8.7)$(16.1)$(19.9)$(33.8)

Other Equity Method Investees.
Summarized financial information for all other of the Company's equity method investees
Gain (Loss) on an aggregate basis (excluding STARZPLAY Arabia, which is separately presented above) is set forth below:
December 31,
2020
March 31,
2020
 (Amounts in millions)
Current assets$96.7 $101.3 
Non-current assets$160.8 $136.0 
Current liabilities$77.2 $68.5 
Non-current liabilities$95.1 $101.3 
Investments:

Three Months EndedNine Months Ended
December 31,December 31,
2020201920202019
 (Amounts in millions)
Revenues$8.0 $18.1 $28.5 $65.7 
Gross profit$6.9 $10.7 $22.1 $38.5 
Net loss$(7.7)$(6.1)$(24.9)$(1.2)
The following table summarizes the components of the gain (loss) on investments:
Three Months EndedSix Months Ended
September 30,September 30,
2021202020212020
 (Amounts in millions)
Unrealized gains (losses) on equity securities$(0.2)$0.3 $(0.7)$0.8 
Impairments of other investments(1)
— (5.0)— (5.0)
Gain on sale of other investments and other investment gains1.7 — 2.2 4.6 
$1.5 $(4.7)$1.5 $0.4 
________________________
(1)Impairments of other investments represents impairments of equity securities without readily determinable fair values that were written down to their estimated fair value.


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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


5. Debt

Total debt of the Company, excluding film related and other obligations, was as follows as of September 30, 2021 and March 31, 2021:
 September 30,
2021
March 31,
2021
 (Amounts in millions)
Corporate debt:
Revolving Credit Facility$— $— 
Term Loan A:
2023 Term Loan A204.3 660.0 
2026 Term Loan A444.9 — 
Term Loan B850.4 952.6 
5.500% Senior Notes1,000.0 — 
5.875% Senior Notes— 518.7 
6.375% Senior Notes— 545.6 
Total corporate debt2,499.6 2,676.9 
Unamortized debt issuance costs(64.6)(46.0)
Total debt, net2,435.0 2,630.9 
Less current portion(40.0)(88.0)
Non-current portion of debt$2,395.0 $2,542.9 


Fiscal 2022 Debt Transactions:
Senior Notes Redemption and Issuance. On April 1, 2021, the Company redeemed in full all $518.7 million outstanding principal amount of its 5.875% Senior Notes due November 2024 ("5.875% Senior Notes") and all $545.6 million outstanding principal amount of its 6.375% Senior Notes due February 2024 ("6.375% Senior Notes"). In connection with the early redemption of the 5.875% Senior Notes and the 6.375% Senior Notes, the Company paid a prepayment premium of $15.2 million and $17.4 million, respectively, plus accrued and unpaid interest to the date of redemption, pursuant to the terms of the indentures governing the 5.875% Senior Notes and the 6.375% Senior Notes, respectively.

In connection with the redemption of the 5.875% Senior Notes and the 6.375% Senior Notes, on April 1, 2021, the Company issued $1.0 billion aggregate principal amount of 5.500% Senior Notes due April 15, 2029 ("5.500% Senior Notes").
Credit Agreement Amendment.On April 6, 2021, the Company amended its credit and guarantee agreement dated December 8, 2016, as amended (the "Credit Agreement") to, among other things, extend the maturity (the "Extension") of a portion of its revolving credit commitments, amounting to $1.25 billion (the "2026 Revolving Credit Facility"), and a portion of its outstanding term A loans, amounting to $444.9 million (the "2026 Term Loan A"), to April 6, 2026, and make certain other changes to the covenants and other provisions therein. After giving effect to the Extension, $250.0 million of revolving credit commitments (the "2023 Revolving Credit Facility and together with the 2026 Revolving Credit Facility, the "Revolving Credit Facility") and $215.1 million of term A loans (the "2023 Term Loan A", and together with the 2026 Term Loan A, the "Term Loan A") remained outstanding with a maturity of March 22, 2023.
Term Loan B Repurchases. During the three months ended September 30, 2021, the Company completed a series of repurchases of the Term Loan B and, in aggregate, paid $44.2 million to repurchase $44.5 million principal amount of the Term Loan B (six months ended September 30, 2021 - in aggregate paid $95.3 million to repurchase $96.0 million principal amount of the Term Loan B).
See the Loss on Extinguishment of Debt section further below for a description of the accounting for these transactions.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


Gain (Loss) on Investments:

The following table summarizes the componentsTermination of the gain (loss) on investments:
Three Months EndedNine Months Ended
December 31,December 31,
2020201920202019
 (Amounts in millions)
Unrealized gains (losses) on equity securities held as of December 31, 2020 and 2019, respectively$0.7 $$1.4 $(0.3)
Impairments of equity method investments and other investments(1)
(0.7)(5.7)
Gain on sale of other investments4.6 
$$$0.3 $(0.3)
________________________
(1)a Portion of Revolving Credit Facility Commitments. In the nine months ended December 31, 2020, amounts include impairments of $5.0 million on equity securities without readily determinable fair values that were written downSubsequent to their estimated fair value.September 30, 2021,

4. Debt

Total debt ofin November 2021, the Company excluding film obligations and production loans, was as follows as of December 31, 2020 and March 31, 2020:
 December 31,
2020
March 31,
2020
 (Amounts in millions)
Corporate debt:
Revolving Credit Facility$$
Term Loan A673.1 712.5 
Term Loan B955.8 965.1 
5.875% Senior Notes518.7 518.7 
6.375% Senior Notes545.6 545.6 
Total corporate debt2,693.2 2,741.9 
Finance lease obligations(1)
0.4 42.4 
Total debt2,693.6 2,784.3 
Unamortized debt issuance costs, net of fair value adjustment on finance lease obligations(48.8)(51.3)
Total debt, net2,644.8 2,733.0 
Less current portion(82.7)(68.6)
Non-current portion of debt$2,562.1 $2,664.4 
________________________
(1)Duringterminated its revolving credit commitments under its 2023 Revolving Credit Facility, amounting to $250.0 million (the "Termination"). After giving effect to the nine months ended December 31, 2020,Termination, the Company reassessedCompany's remaining revolving credit commitments under its Credit Agreement amounted to $1.25 billion under the lease term of the Starz commercial building, which resulted in a change in classification of this lease from a finance lease to an operating lease2026 Revolving Credit Facility (see Note 5 for further information)18).

Senior Credit Facilities (Revolving Credit Facility, Term Loan A and Term Loan B)
Revolving Credit Facility Availability of Funds & Commitment Fee. The revolving credit facilityAs of September 30, 2021, the Revolving Credit Facility provides for borrowings and letters of credit up to an aggregate of $1.5 billion, and at December 31, 2020September 30, 2021 there was $1.5 billion available. However, borrowing levels are subject to certain financial covenants as discussed below. There were 0no letters of credit outstanding at December 31, 2020.September 30, 2021. The Company is required to pay a quarterly commitment fee on the revolving credit facilityRevolving Credit Facility of 0.250% to 0.375% per annum, depending on the achievement of certain leverage ratios, as defined in the credit and guarantee agreement dated December 8, 2016, as amended (the "Credit Agreement"),Credit Agreement, on the total revolving credit facilityRevolving Credit Facility of $1.5 billion less the amount drawn.
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Maturity Date:
Revolving Credit Facility: As of September 30, 2021, a portion of the revolving credit commitments, amounting to $1.25 billion, matures April 6, 2026, and a portion of the revolving credit commitments, amounting to $250.0 million, matures March 22, 2023. See Termination of a Portion of Revolving Credit Facility & Commitments section above and Note 18 - Subsequent Events.
Term Loan A:
2023 Term Loan A: March 22, 2023.
2026 Term Loan A: April 6, 2026.
Term Loan B: March 24, 2025.
Interest:
Revolving Credit Facility & Term Loan A: The Revolving Credit Facility and Term Loan A bear interest at a rate per annum equal to LIBOR plus 1.75% (or an alternative base rate plus 0.75%) margin, with a LIBOR floor of 0.zero. The margin is subject to potential increases of up to 50 basis points (2 (2) increases of 25 basis points each) upon certain increases to net first lien leverage ratios, as defined in the Credit Agreement (effective interest rate of 1.89%1.83% as of December 31, 2020,September 30, 2021, before the impact of interest rate swaps).
Term Loan B: The Term Loan B bears interest at a rate per annum equal to LIBOR plus 2.25% margin, with a LIBOR floor of 0zero (or an alternative base rate plus 1.25% margin) (effective interest rate of 2.39%2.33% as of December 31, 2020,September 30, 2021, before the impact of interest rate swaps).
Required Principal Payments:
Term Loan A:
2023 Term Loan A: Quarterly principal payments, at quarterly rates of 1.25% beginning June 30, 2019, 1.75% beginning June 30, 2020, and 2.50% beginning June 30, 2021 through December 31, 2022, with the balance payable at maturity.
2026 Term Loan A: Quarterly principal payments beginning September 30, 2022 at a quarterly rate of 1.25%, then at quarterly rates of 1.75% beginning September 30, 2023, and 2.50% beginning September 30, 2024 through March 31, 2026, with the balance payable at maturity.
Term Loan B: Quarterly principal payments at a quarterly rate of 0.25%, with the balance payable at maturity.
The Term Loan A and Term Loan B also require mandatory prepayments in connection with certain asset sales, subject to certain significant exceptions, and the Term Loan B is subject to additional mandatory repayment from specified percentages of excess cash flow, as defined in the Credit Agreement.
Optional Prepayment:
Revolving Credit Facility & Term Loan A: The Company may voluntarily prepay the Revolving Credit Facility and Term Loan A at any time without premium or penalty.
Term Loan B: The Company may voluntarily prepay the Term Loan B at any time.
Security. The Senior Credit Facilities are guaranteed by the Guarantors (as defined in the Credit Agreement) and are secured by a security interest in substantially all of the assets of Lionsgate and the Guarantors (as defined in the Credit Agreement), subject to certain exceptions.
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Covenants. The Senior Credit Facilities contain representations and warranties, events of default and affirmative and negative covenants that are customary for similar financings and which include, among other things and subject to certain significant exceptions, restrictions on the ability to declare or pay dividends, create liens, incur additional indebtedness, make investments, dispose of assets and merge or consolidate with any other person. In addition, a net first lien leverage maintenance covenant and an interest coverage ratio maintenance covenant apply to the Revolving Credit Facility and the Term Loan A and are tested quarterly. As of December 31, 2020,September 30, 2021, the Company was in compliance with all applicable covenants.
Change in Control. The Company may also be subject to an event of default upon a change in control (as defined in the Credit Agreement) which, among other things, includes a person or group acquiring ownership or control in excess of 50% of the Company’s common shares.
Potential Impact of LIBOR Transition. The Chief Executive of the U.K. Financial Conduct Authority (the “FCA”), which regulates the London Interbank Offered Rate, or LIBOR has announced that the FCA will no longer persuade or compel banks to submit rates for the calculation of LIBOR after the end of 2021. However, forFor U.S dollar LIBOR, it now appears thatpublication of the relevant date may be deferred toone-week and two-month LIBOR settings will cease after December 31, 2021, and publication of the overnight and 12-month LIBOR settings will cease after June 30, 2023. Immediately after June 30, 2023, for certain tenors (including overnightthe one-month, three-month and one, three, six and 12 months), at which time the LIBOR administrator has indicated that it intends to cease publication ofsix-month U.S. dollar LIBOR. Despite this potential deferral,LIBOR settings will no longer be representative. Given these changes, the LIBOR administrator has advised that no new contracts using U.S. dollar LIBOR should be entered into after December 31, 2021. These actions indicate that the continuation of U.S. LIBOR on the current basis cannot and will not be guaranteed after June 30, 2023. Moreover, itIt is also possible that U.S. LIBOR will be discontinued or modified prior to June 30, 2023.
Under the terms of the Company's Credit Agreement, in the event of the discontinuance of the LIBOR, Rate, a mutually agreed-upon alternate benchmark rate will be established to replace the LIBOR Rate.LIBOR. The Company and Lenders (as defined in the Credit Agreement) shall, in good faith, endeavor to establish an alternate benchmark rate that gives due consideration to prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and which places the Lenders and the Company in the same economic position that existed immediately prior to the discontinuation of LIBOR. The Company does not anticipate that the discontinuance or modification of LIBOR will materially impact its liquidity or financial position.
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


the discontinuation of the LIBOR Rate. The Company does not anticipate that the discontinuance or modification of the LIBOR Rate will materially impact its liquidity or financial position.

5.875% Senior Notes and 6.375%5.500% Senior Notes

Interest:
5.875% Senior Notes: Bears interest at 5.875% annually (payable semi-annually on May and November 1 of each year).
6.375% Senior Notes: Bears interest at 6.375%5.500% annually (payable semi-annually in arrears on February 1April 15 and August 1October 15 of each year, commencing on August 1, 2019)October 15, 2021).

Maturity Date:
5.875% Senior Notes: November 1, 2024.
6.375% Senior Notes: February 1, 2024.April 15, 2029.

Optional Redemption:
5.875% Senior Notes:
(i)Redeemable by the Company, in whole or in part, at the redemption prices set forth as follows (as a percentage of the principal amount redeemed), plus accrued and unpaid interest to the redemption date: (i) on or after November 1, 2019 - 104.406%; (ii) on or after November 1, 2020 - 102.938%; (iii) on or after November 1, 2021 - 101.439%; and (iv) on or after November 1, 2022 - 100%.
6.375% Senior Notes:
(i)Prior to February 1, 2021, the 6.375% Senior Notes are redeemable byApril 15, 2024, the Company under certain circumstances (as defined inmay redeem the indenture governing the 6.375%5.500% Senior Notes),Notes in whole at any time, or in part from time to time, at a price equal to 100% of the principal amount of the notes to be redeemed plus a "make-whole" premium, plus accrued and unpaid interest, if any, to, but not including, the Applicable Premium.redemption date. The Applicable Premiummake-whole premium is the greater of (i) 1.0% of the principal amount redeemed and (ii) the excess, if any, of the present value at such redemption date of the redemption amountprice at February 1, 2021April 15, 2024 (see redemption prices below) of the notes redeemed plus interest through February 1, 2021April 15, 2024 (discounted to the redemption date at the treasury rate on the redemption date plus 50 basis points) over the principal amount of the notes redeemed on the redemption date.
(ii)On andor after February 1, 2021, redeemable byApril 15, 2024, the Company may redeem the 5.500% Senior Notes in whole at any time, or in part from time to time, at certain specified redemption prices, plus accrued and unpaid interest, if any, to, but not including, the redemption date. Such redemption prices set forthare as follows (as a percentage of the principal amount redeemed),: (i) on or after April 15, 2024 - 102.750%; (ii) on or after April 15, 2025 - 101.375%; and (iii) on or after April 15, 2026 - 100%. In addition, the Company may redeem up to 40% of the aggregate principal amount of the notes at any time and from time to time prior to April 15, 2024 with the net proceeds of certain equity offerings at a price of 105.500% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the redemption date: (i) on or after February 1, 2021 - 103.188%; (ii) on or after February 1, 2022 - 101.594%; (iii) on or after February 1, 2023 - 100%.date.

Security.The 5.875% Senior Notes and 6.375%5.500% Senior Notes are unsubordinated, unsecured obligations of the Company.

Covenants. The 5.875% Senior Notes and 6.375%5.500% Senior Notes contain certain restrictions and covenants that, subject to certain exceptions, limit the Company’s ability to incur additional indebtedness, pay dividends or repurchase the Company’s common shares, make certain loans or investments, and sell or otherwise dispose of certain assets subject to certain conditions, among other limitations. As of December 31, 2020,September 30, 2021, the Company was in compliance with all applicable covenants.
Change in Control. The occurrence of a change of control will be a triggering event requiring the Company to offer to purchase from holders all of the 5.875% Senior Notes and 6.375%5.500% Senior Notes, at a price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase. In addition, certain asset dispositions will be triggering events that may require the Company to use the excess proceeds from such dispositions to make an offer to purchase the 5.875% Senior Notes and 6.375%5.500% Senior Notes at 100% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.
Capacity to Pay Dividends
At December 31, 2020,September 30, 2021, the capacity to pay dividends under the Senior Credit Facilities and the 5.875% Senior Notes and the 6.375%5.500% Senior Notes significantly exceeded the amount of the Company's accumulated deficit or net income,loss, and therefore the Company's net incomeloss of $7.3$48.5 million and accumulated deficit of $18.8$143.0 million were deemed free of restrictions from paying dividends at December 31, 2020.September 30, 2021.
Loss on Extinguishment of Debt
Accounting for the Fiscal 2022 Debt Transactions Discussed Above:
Revolving Credit Facility.
Unamortized debt issuance costs: Where the borrowing capacity (measured as the amount available under the revolving credit facility multiplied by the remaining term) was less than it was prior to the amendment to the Revolving Credit Facility on April 6, 2021, on a creditor-by-creditor basis, the unamortized debt issuance costs were written off as a loss on extinguishment of debt in proportion to the decrease in borrowing capacity.

The remaining unamortized debt issuance costs were allocated between the 2023 and 2026 Revolving Credit Facility in proportion to the borrowing capacity of each facility and are being amortized over the respective terms of the 2023 and 2026 Revolving Credit Facility, as applicable.
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DuringFees paid to creditors and third-party costs: All fees paid to creditors or third parties (i.e., new debt issuance costs) were recorded as a reduction of amounts outstanding under the 2026 Revolving Credit Facility and are being amortized over the term of the 2026 Revolving Credit Facility.

Term Loan A. With respect to substantially all creditors participating in the Term Loan A, the amendment was considered a modification of terms since the present value of the cash flows after the amendment differed by less than a 10% change from the present value of the cash flows on a creditor-by-creditor basis prior to the amendment. Accordingly, the associated costs were accounted for as follows:
Unamortized debt issuance costs: Previously incurred unamortized debt issuance costs and fees were allocated between the 2023 Term Loan A and the 2026 Term Loan A based on the relative balances outstanding after the amendment and are being amortized over the respective terms of the 2023 Term Loan A and 2026 Term Loan A. To the extent there was a reduction of the outstanding balance on a creditor-by-creditor basis (i.e., a partial prepayment of debt), previously incurred unamortized debt issuance costs and fees were expensed as a loss on extinguishment of debt on the unaudited condensed consolidated statement of operations.

Fees paid to creditors: Certain fees were paid to creditors based on their 2026 Term Loan A participation. These fees paid to creditors were recorded as a reduction of amounts outstanding under the 2026 Term Loan A and are being amortized over the term of the 2026 Term Loan A.
Third-party costs: Substantially all third-party costs were expensed as a result of the modification and included in loss on extinguishment of debt in the unaudited condensed consolidated statement of operations.

Senior Notes. In accounting for the issuance and redemption of the 5.875% and 6.375% Senior Notes as discussed above, a portion of the Senior Notes redemption and issuance was considered a modification of terms with creditors who participated in both the redeemed Senior Notes and new 5.500% Senior Notes, a portion was considered a debt extinguishment, and a portion represented new issuances to new creditors, and the debt issuance costs were accounted for as follows:
Unamortized debt issuance costs:Previously incurred unamortized debt issuance costs and fees on the redeemed Senior Notes are being amortized over the term of the new Senior Notes, to the extent considered a modification of terms, and expensed as a loss on extinguishment of debt to the extent considered an extinguishment. To the extent there was a reduction of the outstanding balance on a creditor-by-creditor basis (i.e., a partial prepayment of debt), previously incurred unamortized debt issuance costs and fees were expensed as a loss on extinguishment of debt on the unaudited condensed consolidated statement of operations.

Fees paid to creditors: Fees paid to creditors or call premiums were recorded as a reduction of amounts outstanding under the new Senior Notes and are being amortized over the term of the new Senior Notes, to the extent considered a modification of terms or associated with new issuances to new creditors, and expensed as a loss on extinguishment of debt to the extent considered an extinguishment or a partial prepayment of debt.

Third-party costs:Costs incurred with third parties were recorded as a reduction of amounts outstanding under the new Senior Notes and will be amortized over the term of the new Senior Notes, to the extent considered an extinguishment or associated with new issuances to new creditors, and expensed as a loss on extinguishment of debt to the extent considered a modification of terms.

For all of the above transactions, debt issuance costs recorded as a reduction of outstanding debt are amortized using the effective interest method.

Term Loan B. In connection with the repurchases of the Term Loan B discussed above, during the three and ninesix months ended December 31, 2019,September 30, 2021, the Company recorded a loss on extinguishment of debt of $1.4nil and $0.2 million, respectively, related to early repaymentsthe write-off of $101.9 million in principal outstandingdebt issuance costs.
Loss on Extinguishment of Debt. During the Term Loan B. There was 0six months ended September 30, 2021, the Company recorded a loss on extinguishment of debt related to the transactions described above, as summarized in the table below (three months ended September 30, 2021 - loss on extinguishment of debt of $0.4 million; three and ninesix months ended December 31, 2020.

September 30, 2020 - none):


5. Leases
The Company has operating leases primarily for office space, studio facilities, and other equipment. The Company also has a finance lease for a satellite transponder, and through the first quarter ended June 30, 2020 the Company had classified its lease for the Starz commercial building as a finance lease. During the second quarter ended September 30, 2020, due to a change in the expected lease term of the Starz commercial building, the Company reassessed the lease classification of the Starz commercial building, which resulted in a change in classification of this lease from a finance lease to an operating lease. As a result, the right-of-use assets and lease liabilities (including the fair value adjustment) under finance leases decreased by $42.0 million and $48.6 million, respectively, and the right-of-use assets and lease liabilities under operating leases increased by $6.0 million and $12.6 million, respectively in the nine months ended December 31, 2020. The Company's leases have remaining lease terms of up to approximately 10 years.
Supplemental balance sheet information related to leases was as follows:
CategoryBalance Sheet LocationDecember 31,
2020
March 31,
2020
Operating Leases(Amounts in millions)
Right-of-use assetsOther assets - non-current$128.7 136.9 
Lease liabilities (current)Accounts payable and accrued liabilities$39.9 35.3 
Lease liabilities (non-current)Other liabilities - non-current122.8 129.6 
$162.7 164.9 
Finance Leases
Right-of-use assetsProperty and equipment, net$0.8 46.4 
Lease liabilities (current)Debt - short-term portion$0.4 3.0 
Lease liabilities (non-current)Debt - non-current39.4 
$0.4 42.4 

December 31,
2020
March 31,
2020
Weighted average remaining lease term (in years):
Operating leases5.46.1
Finance leases0.221.6
Weighted average discount rate:
Operating leases3.90 %4.10 %
Finance leases7.00 %6.40 %
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LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


The expected future payments relating to the Company's operating and finance lease liabilities at December 31, 2020 are as follows:
Six Months Ended
September 30, 2021
Loss on Extinguishment of DebtRecorded as a Reduction of Outstanding Debt Balances & Amortized Over Life of New IssuancesTotal
(Amounts in millions)
Revolving Credit Facility, Term Loan A and Senior Notes:
New debt issuance costs and call premiums$21.2 $31.0 $52.2 
Previously incurred debt issuance costs5.2 31.1 36.3 
$26.4 $62.1 $88.5 
Loss on Term Loan B repurchases and other0.7 
Total loss on extinguishment of debt$27.1 
Operating LeasesFinance Leases
(Amounts in millions)
Three months ending March 31, 2021$13.5 $0.4 
Year ending March 31,
202240.9 
202337.5 
202425.3 
202515.0 
Thereafter49.4 
Total lease payments181.6 0.4 
Less imputed interest(18.9)
Total$162.7 $0.4 



6. Film ObligationsRelated and Production LoansOther Obligations
 
December 31,
2020
March 31,
2020
 (Amounts in millions)
Film obligations$205.1 $299.3 
Production loans320.1 151.4 
Total film obligations and production loans525.2 450.7 
Unamortized debt issuance costs(1.2)(0.1)
Total film obligations and production loans, net524.0 450.6 
Less current portion(310.1)(353.7)
Total non-current film obligations and production loans$213.9 $96.9 
September 30,
2021
March 31,
2021
 (Amounts in millions)
Program rights and film obligations$178.8 $214.6 
Production and related loans871.9 493.5 
IP Credit Facility and other financing obligations215.0 — 
Total film related and other obligations1,265.7 708.1 
Unamortized debt issuance costs(7.1)(4.6)
Total film related and other obligations, net1,258.6 703.5 
Less current portion(546.4)(385.0)
Total non-current film related and other obligations$712.2 $318.5 
Program Rights and Film Obligations
FilmProgram rights and film obligations include minimum guarantees and accrued licensed program rights obligations, which represent amounts payable for film or television rights that the Company has acquired or licensed and certain theatrical marketing obligations for amounts received from third parties that are contractually committed for theatrical marketing expenditures associated with specific titles.
Production and Related Loans
Production and related loans representinclude individual loans for the production or license of film and television programs that the Company produces.produces or licenses and the Company's Production Tax Credit Facility (as defined below).
Individual Loans. The majority of the Company's individual production and related loans have contractual repayment dates either at or near the expected completion date, with the exception of certain loans containing repayment dates on a longer term basis, and incur LIBOR-based interest at rates ranging from 2.28%1.93% to 2.96%3.11% (before the impact of interest rate swaps, see Note 16 for interest rate swaps).
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Production Tax Credit Facility.In January 2021, as amended on March 31, 2021, the Company entered into a non-recourse senior secured revolving credit facility (the "Production Tax Credit Facility") based on collateral consisting of certain of the Company’s tax credit receivables. The maximum principal amount of the Production Tax Credit Facility is $220.0 million, subject to the amount of collateral available, which is based on specified percentages of amounts payable to the Company by governmental authorities pursuant to the tax incentive laws of certain eligible jurisdictions that arise from the production or exploitation of motion pictures and television programming in such jurisdiction. Advances under the Production Tax Credit Facility bear interest at a rate equal to, at the Company’s option, LIBOR plus 1.50% per annum or the base rate plus 0.50% per annum (effective interest rate of 1.58% at September 30, 2021). The Production Tax Credit Facility matures on January 27, 2025.As of September 30, 2021, there was $205.8 million outstanding under the Production Tax Credit Facility, and there were no additional amounts available under the Production Tax Credit Facility (March 31, 2021 - $120.0 million outstanding).
IP Credit Facility and Other Financing Obligations
IP Credit Facility. In July 2021, as amended on September 30, 2021, certain subsidiaries of the Company entered into a senior secured amortizing term credit facility (the "IP Credit Facility") based on the collateral consisting solely of certain of the Company’s rights in certain library titles, including the Spyglass and other recently acquired libraries. The maximum principal amount of the IP Credit Facility is $140.0 million, subject to the amount of collateral available, which is based on the valuation of cash flows from the libraries. The cash flows generated from the exploitation of the rights will be applied to repay the IP Credit Facility subject to cumulative minimum guaranteed payment amounts as set forth below:
Cumulative Period Through:Cumulative Minimum Guaranteed Payment AmountsPayment Due Date
(in millions)
September 30, 2022$26.3November 14, 2022
September 30, 2023$52.5November 14, 2023
September 30, 2024$78.8November 14, 2024
September 30, 2025$105.0November 14, 2025
July 30, 2026$140.0July 30, 2026
Advances under the IP Credit Facility bear interest at a rate equal to, at the Company’s option, LIBOR plus 2.25% per annum or the base rate plus 1.25% per annum (effective interest rate of 2.50% at September 30, 2021). The IP Credit Facility matures on July 30, 2026. As of September 30, 2021, there was $140.0 million outstanding under the IP Credit Facility.
Other Financing Obligations. Other financing obligations include financing collateralized by certain contractual payments to be received in the future.


7. Fair Value Measurements
Fair Value
Accounting guidance and standards about fair value define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Fair Value Hierarchy
Fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the
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lowest level of input that is significant to the fair value measurement. The accounting guidance and standards establish three levels of inputs that may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
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Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.
The following table sets forth the assets and liabilities required to be carried at fair value on a recurring basis as of December 31, 2020September 30, 2021 and March 31, 2020:2021:
December 31, 2020March 31, 2020September 30, 2021March 31, 2021
Level 1Level 2TotalLevel 1Level 2TotalLevel 1Level 2TotalLevel 1Level 2Total
Assets:Assets:(Amounts in millions)Assets:(Amounts in millions)
Available-for-sale equity securitiesAvailable-for-sale equity securities$2.1 $$2.1 $0.6 $$0.6 Available-for-sale equity securities$0.7 $— $0.7 $1.8 $— $1.8 
Forward exchange contracts (see Note 16)Forward exchange contracts (see Note 16)2.3 2.3 0.6 0.6 Forward exchange contracts (see Note 16)— 2.1 2.1 — 1.5 1.5 
Interest rate swaps (see Note 16)(1)
Interest rate swaps (see Note 16)(1)
110.5 110.5 
Interest rate swaps (see Note 16)(1)
— 120.4 120.4 — 149.0 149.0 
Liabilities:Liabilities:Liabilities:
Forward exchange contracts (see Note 16)Forward exchange contracts (see Note 16)(1.0)(1.0)(0.9)(0.9)Forward exchange contracts (see Note 16)— (2.6)(2.6)— (2.6)(2.6)
Interest rate swaps (see Note 16)Interest rate swaps (see Note 16)(121.1)(121.1)(187.9)(187.9)Interest rate swaps (see Note 16)— (72.9)(72.9)— (78.4)(78.4)
________________
(1)Amounts at September 30, 2021 and March 31, 2021 exclude $100.7$93.1 million and $98.2 million, respectively, of financing component of interest rate swaps presented in the table below.
The following table sets forth the carrying values and fair values of the Company’s outstanding debt, production and related loans, IP Credit Facility and other financing obligations, and interest rate swaps at December 31, 2020September 30, 2021 and March 31, 2020:2021:
 
December 31, 2020March 31, 2020September 30, 2021March 31, 2021
(Amounts in millions)(Amounts in millions)
Carrying
Value
Fair Value(1)
Carrying Value
Fair Value(1)
Carrying
Value
Fair Value(1)
Carrying Value
Fair Value(1)
(Level 2)(Level 2)(Level 2)(Level 2)
Term Loan ATerm Loan A$663.5 $652.9 $699.8 $637.7 Term Loan A$641.3 $620.8 $651.4 $647.6 
Term Loan BTerm Loan B945.3 931.9 952.9 845.7 Term Loan B842.7 844.0 942.8 936.0 
5.500% Senior Notes5.500% Senior Notes963.8 1,027.5 — — 
5.875% Senior Notes5.875% Senior Notes506.1 526.5 504.0 430.5 5.875% Senior Notes— — 506.7 533.9 
6.375% Senior Notes6.375% Senior Notes540.4 559.3 539.2 452.9 6.375% Senior Notes— — 540.8 563.0 
Production loans318.9 320.1 151.3 151.3 
Production and related loansProduction and related loans867.5 871.9 489.0 493.5 
IP Credit Facility and other financing obligationsIP Credit Facility and other financing obligations212.3 215.0 — — 
Financing component of interest rate swaps(2)
Financing component of interest rate swaps(2)
156.9 154.9 
Financing component of interest rate swaps(2)
143.3 136.6 152.5 144.7 
________________
(1)The Company measures the fair value of its outstanding debt and interest rate swaps using discounted cash flow techniques that use observable market inputs, such as LIBOR-based yield curves, swap rates, and credit ratings (Level 2 measurements).
(2)Amounts at September 30, 2021 and March 31, 2021 include $100.7$93.1 million and $98.2 million, respectively, recorded as a reduction of assets under master netting arrangements.

The Company’s financial instruments also include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, other liabilities, and borrowings under the Revolving Credit Facility, if any, and finance lease obligations.any. The carrying values of these financial instruments approximated the fair values at December 31, 2020September 30, 2021 and March 31, 2020.

2021.

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8. Noncontrolling Interests
Redeemable Noncontrolling Interests

The table below presents the reconciliation of changes in redeemable noncontrolling interests:
Nine Months EndedSix Months Ended
December 31,September 30,
2020201920212020
(Amounts in millions)(Amounts in millions)
Beginning balanceBeginning balance$167.8 $127.6 Beginning balance$219.1 $167.8 
Net loss attributable to redeemable noncontrolling interestsNet loss attributable to redeemable noncontrolling interests(11.6)(14.1)Net loss attributable to redeemable noncontrolling interests(10.6)(8.4)
Noncontrolling interests discount accretionNoncontrolling interests discount accretion17.1 19.1 Noncontrolling interests discount accretion12.6 11.5 
Adjustments to redemption valueAdjustments to redemption value20.7 20.8 Adjustments to redemption value22.2 13.4 
Cash distributionsCash distributions(2.5)(3.3)Cash distributions(0.1)(2.0)
Ending balanceEnding balance$191.5 $150.1 Ending balance$243.2 $182.3 

Redeemable noncontrolling interests (included in temporary equity on the unaudited condensed consolidated balance sheets) relate to the November 12, 2015 acquisition of a controlling interest in Pilgrim Media Group and the May 29, 2018 acquisition of a controlling interest in 3 Arts Entertainment.

3 Arts Entertainment. The noncontrolling interest holders have a right to put the noncontrolling interest of 3 Arts Entertainment, at fair value, exercisable at five years after the acquisition date of May 29, 2018, for a 60 day period. Beginning 30 days after the expiration of the exercise period for the put rights held by the noncontrolling interest holders, the Company has a right to call the noncontrolling interest of 3 Arts Entertainment, at fair value, for a 60 day period.

Pilgrim Media Group. ThePursuant to an amendment dated April 2, 2021, the put and call rights associated with the Pilgrim Media Group noncontrolling interest were extended and modified, such that the noncontrolling interest holder has a right to put and the Company has a right to call a portion of the noncontrolling interest, equal to 17.5%25% of Pilgrim Media Group, at fair value, until February 19, 2021, as amended.exercisable for thirty (30) days beginning November 12, 2022. In addition, the noncontrolling interest holder has a right to put and the Company has a right to call the remaining amount of noncontrolling interest at fair value, subject to a cap, exercisable at seven years after the acquisition date offor thirty (30) days beginning November 12, 2015.2024, as amended.

In addition, the noncontrolling interest holder is the President and CEO of Pilgrim Media Group. Pursuant to the original operating agreement of Pilgrim Media Group, if the employment of the noncontrolling interest holder was terminated, under certain circumstances as defined in the operating agreement, the Company could call and the noncontrolling interest holder could put the noncontrolling interest at a discount to fair value, which was being expensed over the call periods in the original operating agreement. Pursuant to the amendment to the operating agreement on April 2, 2021, this discount was eliminated and therefore the remaining unamortized discount of $2.7 million was expensed in the quarter ended June 30, 2021. The amortization of the discount through June 30, 2021 was included in general and administrative expense of Pilgrim Media Group and reflected as an addition to redeemable noncontrolling interest.

Redeemable noncontrolling interests are measured at the greater of (i) the redemption amount that would be paid if settlement occurred at the balance sheet date less the amount attributed to unamortized noncontrolling interest discount if applicable, or (ii) the historical value resulting from the original acquisition date value plus or minus any earnings or loss attribution, plus the amount of amortized noncontrolling interest discount, less the amount of cash distributions that are not accounted for as compensation, if any. The amount of the redemption value in excess of the historical values of the noncontrolling interest, if any, is recognized as an increase to redeemable noncontrolling interest and a charge to retained earnings or accumulated deficit.
Other Noncontrolling Interests

The Company has other immaterial noncontrolling interests that are not redeemable.


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9. Revenue

The Company's Motion Picture and Television Production segments generate revenue principally from the licensing of content in domestic theatrical exhibition, home entertainment (e.g., digital media and packaged media), television, and international market places. The Company's Media Networks segment generates revenue primarily from the distribution of the Company's STARZ branded premium subscription video services and, to a lesser extent, other direct-to-consumer content streaming services and other distribution revenue.services.

Revenue by Segment, Market or Product Line
The table below presents revenues by segment, market or product line for the three and six months ended September 30, 2021 and 2020:
Three Months EndedSix Months Ended
September 30,September 30,
2021202020212020
(Amounts in millions)
Revenue by Type:
Motion Picture
Theatrical$16.0 $— $44.4 $0.3 
Home Entertainment
Digital Media129.8 116.1 242.0 243.9 
Packaged Media31.2 33.9 65.2 73.5 
Total Home Entertainment161.0 150.0 307.2 317.4 
Television90.9 59.1 141.6 117.6 
International59.3 45.5 122.1 97.9 
Other3.7 3.0 6.8 5.1 
Total Motion Picture revenues330.9 257.6 622.1 538.3 
Television Production
Television228.2 116.7 500.4 212.6 
International57.0 47.9 124.4 94.3 
Home Entertainment
Digital Media33.2 15.9 57.8 61.8 
Packaged Media1.0 1.1 3.2 1.8 
Total Home Entertainment34.2 17.0 61.0 63.6 
Other16.6 15.6 36.3 22.4 
Total Television Production revenues336.0 197.2 722.1 392.9 
Media Networks - Programming Revenues
Domestic(1)
358.6 374.1 716.7 731.3 
International26.1 14.2 50.3 24.2 
384.7 388.3 767.0 755.5 
Intersegment eliminations(163.8)(98.1)(322.2)(128.0)
Total revenues$887.8 $745.0 $1,789.0 $1,558.7 
___________________
(1)Media Networks domestic revenues for the three and six months ended September 30, 2020 included revenue from the Company's former Other Streaming Services product line of $13.3 million and $24.8 million, respectively, substantially all of which related to the Company's former interest in Pantaya, which was sold on March 31, 2021 (see Note 2).
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Revenue by Segment, Market or Product Line
The table below presents revenues by segment, market or product line for the three and nine months ended December 31, 2020 and 2019:
Three Months EndedNine Months Ended
December 31,December 31,
2020201920202019
(Amounts in millions)
Revenue by Type:
Motion Picture
Theatrical$1.8 $109.0 $2.1 $316.5 
Home Entertainment
Digital Media123.1 115.5 367.0 312.1 
Packaged Media36.4 75.4 109.8 197.0 
Total Home Entertainment159.5 190.9 476.8 509.1 
Television36.2 74.5 153.9 177.7 
International48.0 96.1 146.0 256.6 
Other4.8 3.4 9.8 17.7 
Total Motion Picture revenues250.3 473.9 788.6 1,277.6 
Television Production
Television119.7 144.2 332.3 526.4 
International26.0 17.4 120.4 113.3 
Home Entertainment
Digital Media58.0 10.0 119.8 47.6 
Packaged Media3.1 0.6 4.9 2.2 
Total Home Entertainment61.1 10.6 124.7 49.8 
Other21.4 17.2 43.6 53.7 
Total Television Production revenues228.2 189.4 621.0 743.2 
Media Networks - Programming Revenues
Domestic(1)
388.5 376.3 1,119.8 1,115.2 
International17.7 6.1 41.9 13.6 
406.2 382.4 1,161.7 1,128.8 
Intersegment eliminations(48.3)(47.2)(176.3)(203.9)
Total revenues$836.4 $998.5 $2,395.0 $2,945.7 
___________________
(1)Media Networks domestic revenues include revenue from the Company's Other Streaming Services product line of $13.2 million and $38.0 million, respectively, in the three and nine months ended December 31, 2020 (2019 - $8.7 million and $22.8 million, respectively).
Remaining Performance Obligations
Remaining performance obligations represent deferred revenue on the balance sheet plus fixed fee or minimum guarantee contracts where the revenue will be recognized and the cash received in the future (i.e., backlog). Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at December 31, 2020September 30, 2021 are as follows:
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Rest of Year Ending March 31, 2021Year Ending March 31,
20222023ThereafterTotal
(Amounts in millions)
Remaining Performance Obligations$491.8 $694.2 $196.9 $219.6 $1,602.5 
Rest of Year Ending March 31, 2022Year Ending March 31,
20232024ThereafterTotal
(Amounts in millions)
Remaining Performance Obligations$711.7 $470.5 $152.1 $305.7 $1,640.0 
The above table does not include estimates of variable consideration for transactions involving sales or usage-based royalties in exchange for licenses of intellectual property. The revenues included in the above table include all fixed fee contracts regardless of duration.

Revenues of $57.7$60.0 million and $217.0$132.8 million, respectively, including variable and fixed fee arrangements, were recognized during the three and ninesix months ended December 31, 2020, respectively,September 30, 2021, from performance obligations satisfied prior to March 31, 2020.2021. These revenues were primarily associated with the distribution of television and theatrical product in electronic sell-through and video-on-demand formats, and to a lesser extent, the distribution of theatrical product in the domestic and international markets related to films initially released in prior periods.

Accounts Receivable, Contract Assets and Deferred Revenue

The timing of revenue recognition, billings and cash collections affects the recognition of accounts receivable, contract assets and deferred revenue. At December 31, 2020September 30, 2021 and March 31, 2020,2021, accounts receivable, contract assets and deferred revenue are as follows.
ItemItemBalance Sheet LocationDecember 31,
2020
March 31,
2020
Addition (Reduction)ItemBalance Sheet LocationSeptember 30,
2021
March 31,
2021
Addition (Reduction)
(Amounts in millions) (Amounts in millions)
Accounts receivable, net - currentAccounts receivable, net - currentAccounts receivable, net$386.4 $522.0 $(135.6)Accounts receivable, net - currentAccounts receivable, net$419.3 $383.7 $35.6 
Accounts receivable, net - non-currentAccounts receivable, net - non-currentOther assets - non-current49.9 53.6 (3.7)Accounts receivable, net - non-currentOther assets - non-current42.7 49.4 (6.7)
Contract asset - currentContract asset - current
Other assets - current(1)
16.1 18.8 (2.7)Contract asset - current
Other assets - current(1)
29.6 25.6 4.0 
Contract asset - non-currentContract asset - non-current
Other assets - non-current(1)
4.2 10.5 (6.3)Contract asset - non-current
Other assets - non-current(1)
13.7 10.3 3.4 
Deferred revenue - currentDeferred revenue - currentDeferred revenue - current141.9 116.6 25.3 Deferred revenue - currentDeferred revenue - current276.7 165.7 111.0 
Deferred revenue - non-currentDeferred revenue - non-currentDeferred revenue - non-current54.2 61.3 (7.1)Deferred revenue - non-currentDeferred revenue - non-current49.0 56.2 (7.2)
__________________
(1)Included in prepaid expenses and other (see Note 17).

Accounts Receivable. Accounts receivable are presented net of a provision for doubtful accounts. The Company estimates provisions for accounts receivable based on historical experience for the respective risk categories and current and future expected economic conditions. To assess collectibility, the Company analyzes market trends, economic conditions, the aging of receivables and customer specific risks, and records a provision for estimated credit losses expected over the lifetime of the receivables in direct operating expense.

The Company performs ongoing credit evaluations and monitors its credit exposure through active review of customers' financial condition, aging of receivable balances, historical collection trends, and expectations about relevant future events that may significantly affect collectibility. The Company generally does not require collateral for its trade accounts receivable.

Changes in the provision for doubtful accounts consisted of the following:
March 31, 2020
(Benefit) provision for doubtful accounts(1)
Uncollectible accounts written-offDecember 31,
2020
(Amounts in millions)
Trade accounts receivable$9.3 $(0.6)$(0.2)$8.5 
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March 31, 2021
(Benefit) provision for doubtful accounts(1)
Uncollectible accounts written-offSeptember 30, 2021
(Amounts in millions)
Trade accounts receivable$6.5 $(0.6)$(0.1)$5.8 
_______________________
(1)Represents collections on accounts receivable previously reserved.

Contract Assets. Contract assets relate to the Company’s conditional right to consideration for completed performance under the contract (e.g., unbilled receivables). Amounts relate primarily to contractual payment holdbacks in cases in which the
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Company is required to deliver additional episodes or seasons of television content in order to receive payment, complete certain administrative activities, such as guild filings, or allow the Company's customers' audit rights to expire. The change in the balance of contract assets is primarily due to the satisfaction of the condition related to payment holdbacks.

Deferred Revenue. Deferred revenue relates primarily to customer cash advances or deposits received prior to when the Company satisfies the corresponding performance obligation. Revenues of $18.0$42.9 million and $76.2$107.0 million, respectively, were recognized during the three and ninesix months ended December 31, 2020, respectively,September 30, 2021 related to the balance of deferred revenue at March 31, 2020.2021.


10. Net Income (Loss) Per Share
Basic net income (loss) per share is calculated based on the weighted average common shares outstanding for the period. Basic net income (loss) per share for the three and ninesix months ended December 31,September 30, 2021 and 2020 and 2019 is presented below:
 
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions, except per share amounts) (Amounts in millions, except per share amounts)
Basic Net Income (Loss) Per Common Share:Basic Net Income (Loss) Per Common Share:Basic Net Income (Loss) Per Common Share:
Numerator:Numerator:Numerator:
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholdersNet income (loss) attributable to Lions Gate Entertainment Corp. shareholders$(13.9)$(91.2)$18.8 $(143.4)Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders$7.5 $(18.4)$(37.9)$32.7 
Denominator:Denominator:Denominator:
Weighted average common shares outstandingWeighted average common shares outstanding220.8 218.0 220.3 217.2 Weighted average common shares outstanding224.4 220.4 223.1 220.0 
Basic net income (loss) per common shareBasic net income (loss) per common share$(0.06)$(0.42)$0.09 $(0.66)Basic net income (loss) per common share$0.03 $(0.08)$(0.17)$0.15 

Diluted net income (loss) per common share reflects share purchase options, including share appreciation rights ("SARs"), restricted share units ("RSUs") and restricted stock using the treasury stock method when dilutive, and any contingently issuable shares when dilutive. Diluted net income (loss) per common share for the three and ninesix months ended December 31,September 30, 2021 and 2020 and 2019 is presented below:
Three Months EndedNine Months Ended
December 31,December 31,
2020201920202019
(Amounts in millions, except per share amounts)
Diluted Net Income (Loss) Per Common Share:
Numerator:
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders$(13.9)$(91.2)$18.8 $(143.4)
Denominator:
Weighted average common shares outstanding220.8 218.0 220.3 217.2 
Effect of dilutive securities:
Share purchase options0.1 
Restricted share units and restricted stock1.0 
Adjusted weighted average common shares outstanding220.8 218.0 221.4 217.2 
Diluted net income (loss) per common share$(0.06)$(0.42)$0.09 $(0.66)
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Three Months EndedSix Months Ended
September 30,September 30,
2021202020212020
(Amounts in millions, except per share amounts)
Diluted Net Income (Loss) Per Common Share:
Numerator:
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders$7.5 $(18.4)$(37.9)$32.7 
Denominator:
Weighted average common shares outstanding224.4 220.4 223.1 220.0 
Effect of dilutive securities:
Share purchase options1.8 — — — 
Restricted share units and restricted stock2.3 — — 0.6 
Adjusted weighted average common shares outstanding228.5 220.4 223.1 220.6 
Diluted net income (loss) per common share$0.03 $(0.08)$(0.17)$0.15 
As a result of the net loss in the six months ended September 30, 2021 and the three months ended December 31,September 30, 2020, and the three and nine months ended December 31, 2019, the dilutive effect of the share purchase options, restricted share units and restricted stock, and contingently issuable shares were considered anti-dilutive and, therefore, excluded from diluted net loss per share. The weighted average anti-dilutive shares excluded from the calculation due to the net loss for the threesix months ended December 31, 2020September 30, 2021 totaled 1.95.7 million (three and nine months ended December 31, 2019September 30, 2020 - 1.9 million and 2.8 million, respectively)0.9 million).
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Additionally, for the three and ninesix months ended December 31,September 30, 2021 and 2020, and 2019, the outstanding common shares issuable presented below were excluded from diluted net income (loss) per common share because their inclusion would have had an anti-dilutive effect regardless of net income or loss in the period.
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Anti-dilutive shares issuableAnti-dilutive shares issuableAnti-dilutive shares issuable
Share purchase optionsShare purchase options23.8 33.7 26.6 31.4 Share purchase options18.6 28.2 16.0 28.0 
Restricted share unitsRestricted share units1.3 2.5 1.8 2.4 Restricted share units1.7 1.4 0.9 2.0 
Other issuable sharesOther issuable shares2.8 5.2 3.5 3.7 Other issuable shares2.1 2.6 2.0 3.8 
Total weighted average anti-dilutive shares issuable excluded from diluted net income (loss) per common shareTotal weighted average anti-dilutive shares issuable excluded from diluted net income (loss) per common share27.9 41.4 31.9 37.5 Total weighted average anti-dilutive shares issuable excluded from diluted net income (loss) per common share22.4 32.2 18.9 33.8 





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11. Capital Stock

(a) Common Shares
The Company had 500 million authorized Class A voting shares and 500 million authorized Class B non-voting shares at December 31, 2020September 30, 2021 and March 31, 2020.2021. The table below outlines common shares reserved for future issuance:
 
December 31,
2020
March 31,
2020
 (Amounts in millions)
Stock options and SARs outstanding26.8 35.7 
Restricted stock and restricted share units — unvested9.1 3.7 
Common shares available for future issuance15.5 11.5 
Shares reserved for future issuance51.4 50.9 

September 30,
2021
March 31,
2021
 (Amounts in millions)
Stock options and SARs outstanding27.3 26.7 
Restricted stock and restricted share units — unvested8.1 9.1 
Common shares available for future issuance18.9 15.6 
Shares reserved for future issuance54.3 51.4 

(b) Share-based Compensation

On September 15, 2020,14, 2021, the Company’s shareholders approved an amendment to the Lions Gate Entertainment Corp. 2019 Performance Incentive Plan (the “2019 Plan”) previously adopted by the Board of Directors of the Company to increase the maximum number of the Company’s common shares that may be issued or transferred pursuant to awards under the 2019 Plan by an additional 10.05.0 million shares so that the new aggregate share limit under the 2019 Plan is 16.121.1 million common shares (not including shares that were originally approved for issuance under the Company’s prior stock incentive plans that have become available for issuance under the 2019 Plan pursuant to the terms of the 2019 Plan).

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


The Company recognized the following share-based compensation expense during the three and ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Compensation Expense:Compensation Expense:Compensation Expense:
Stock optionsStock options$4.4 $5.5 $13.7 $14.3 Stock options$2.2 $5.0 $11.5 $9.3 
Restricted share units and other share-based compensationRestricted share units and other share-based compensation14.3 9.8 37.6 23.1 Restricted share units and other share-based compensation17.1 14.4 40.0 23.3 
Share appreciation rightsShare appreciation rights1.3 1.9 5.9 3.6 Share appreciation rights1.1 3.4 3.4 4.6 
20.0 17.2 57.2 41.0 20.4 22.8 54.9 37.2 
Impact of accelerated vesting on equity awards(1)
Impact of accelerated vesting on equity awards(1)
2.8 0.3 
Impact of accelerated vesting on equity awards(1)
— 2.8 — 2.8 
Total share-based compensation expenseTotal share-based compensation expense$20.0 $17.2 $60.0 $41.3 Total share-based compensation expense$20.4 $25.6 $54.9 $40.0 
Tax impact(2)
Tax impact(2)
(3.9)(3.6)(12.2)(8.7)
Tax impact(2)
(4.3)(5.3)(10.9)(8.2)
Reduction in net incomeReduction in net income$16.1 $13.6 $47.8 $32.6 Reduction in net income$16.1 $20.3 $44.0 $31.8 
___________________
(1)Represents the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements.
(2)Represents the income tax benefit recognized in the unaudited condensed consolidated statements of operations for share-based compensation arrangements prior to the effects of changes in the valuation allowance.
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Share-based compensation expense, by expense category, consisted of the following:
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Share-Based Compensation Expense:Share-Based Compensation Expense:Share-Based Compensation Expense:
Direct operatingDirect operating$0.5 $0.7 $1.5 $1.1 Direct operating$0.5 $0.5 $0.5 $0.9 
Distribution and marketingDistribution and marketing0.2 0.2 0.5 0.4 Distribution and marketing0.2 0.2 0.3 0.3 
General and administrationGeneral and administration19.3 16.3 55.2 39.5 General and administration19.7 22.1 54.1 36.0 
Restructuring and otherRestructuring and other2.8 0.3 Restructuring and other— 2.8 — 2.8 
$20.0 $17.2 $60.0 $41.3 $20.4 $25.6 $54.9 $40.0 

The following table sets forth the stock option, SARs, restricted stock and restricted share unit activity during the six months ended September 30, 2021:
Stock Options and SARsRestricted Stock and Restricted Share Units
Class A Voting SharesClass B Non-Voting SharesClass A Voting SharesClass B Non-Voting Shares
Number of SharesWeighted-Average Exercise PriceNumber of SharesWeighted-Average Exercise PriceNumber of SharesWeighted-Average Grant-Date Fair ValueNumber of SharesWeighted-Average Grant-Date Fair Value
(Number of shares in millions)
Outstanding at March 31, 20215.5 $24.2321.2 $15.85— (1)$11.109.1 $8.71
Granted— — 1.0 

$12.36— (1)$13.164.7 $14.19
Options exercised or restricted stock or RSUs vested— (1)$11.05(0.2)$11.82— (1)$12.05(5.3)$8.83
Forfeited or expired— (1)$23.07(0.2)$24.64— — (0.4)$8.65
Outstanding at September 30, 20215.5 $24.3221.8 $15.62— (1)$11.518.1 $11.88
__________________
(1)Represents less than 0.1 million shares.
(c) Share Repurchases
During the three and six months ended September 30, 2021 and the three months ended September 30, 2020, the Company did not repurchase any common shares. During the six months ended September 30, 2020, the Company repurchased 0.2 million of its Class A voting shares for an aggregate cost of $1.0 million, with an average repurchase price per share of $5.75. To date, approximately $288.1 million common shares have been repurchased, leaving approximately $179.9 million of authorized potential repurchases.

12. Income Taxes
The income tax benefit (provision) for the three months ended September 30, 2021 and 2020 is calculated by estimating the Company's annual effective tax rate (estimated annual tax provision divided by estimated annual income before income taxes), and then applying the effective tax rate to income (loss) before income taxes for the period, plus or minus the tax effects of items that relate discretely to the period, if any. 
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The following table sets forth the stock option, SARs, restricted stock and restricted share unit activity during the nine months ended December 31, 2020:
Stock Options and SARsRestricted Stock and Restricted Share Units
Class A Voting SharesClass B Non-Voting SharesClass A Voting SharesClass B Non-Voting Shares
Number of SharesWeighted-Average Exercise PriceNumber of SharesWeighted-Average Exercise PriceNumber of SharesWeighted-Average Grant-Date Fair ValueNumber of SharesWeighted-Average Grant-Date Fair Value
(Number of shares in millions)
Outstanding at March 31, 20207.2 $26.2128.5 $19.03(1)$14.893.8 $14.63
Granted4.9 (2)$8.74(1)$9.878.1 $7.80
Options exercised or restricted stock or RSUs vested(1)7.13 (1)$16.57(2.4)$14.48
Awards canceled in exchange program(1.1)$31.56(4.1)$26.49
Awards issued in exchange program0.1 $7.700.8 $7.13
Forfeited or expired(0.7)$31.28(8.8)$16.49(0.4)$8.82
Outstanding at December 31, 20205.5 $24.2021.3 $15.82(1)$11.109.1 $8.81
__________________
(1)Represents less than 0.1 million shares.
(2)During the nine months ended December 31, 2020, the Company granted 3.6 million SARs.
Exchange Program

On January 10, 2020, the Company’s Board of Directors authorized, and on April 2, 2020, the Company’s shareholders approved, a stock option and share appreciation rights exchange program (the “Exchange Program”) that permitted certain current employees to exchange certain outstanding stock options and share appreciation rights with exercise prices substantially above the current market price of the Company’s Class A voting shares and the Company’s Class B non-voting shares for a lesser number of stock options and share appreciation rights that have a fair value that is lower than the fair value of the “out of the money” stock options and share appreciation rights. The program began on April 9, 2020 and was completed on May 7, 2020. As a result of this program 1.1 million outstanding eligible stock options and share appreciation rights of Class A voting shares were exchanged for 0.1 million new stock options and share appreciation rights at an exercise price of $7.70 per share and 4.3 million outstanding eligible stock options and share appreciation rights of Class B non-voting shares were exchanged for 0.8 million new stock options and share appreciation rights at an exercise price of $7.13.

(c) Share Repurchases
During the three months ended December 31, 2020, the Company did not repurchase any common shares. During the nine months ended December 31, 2020, the Company repurchased 0.2 million of its Class A voting shares for an aggregate cost of $1.0 million, with an average repurchase price per share of $5.75. During the three and nine months ended December 31, 2019 the Company did not repurchase any common shares. To date, approximately $288.1 million common shares have been repurchased, leaving approximately $179.9 million of authorized potential repurchases.

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12. Income Taxes
The income tax provision for the three and nine months ended December 31, 2020 is calculated by estimating the Company's annual effective tax rate (estimated annual tax provision divided by estimated annual income before income taxes), and then applying the effective tax rate to income before income taxes for the period, plus or minus the tax effects of items that relate discretely to the period, if any. 
For the three and nine months ended December 31, 2019, the Company determined that a small change in its estimated pretax results for the year ended March 31, 2020 would create a large change in its expected annual effective rate. Accordingly, it was determined that a reliable estimate of the expected annual effective tax rate could not be made. As a result, for the three and nine months ended December 31, 2019, the Company computed its tax provision using the cut-off method, which reflects the actual taxes attributable to year-to-date earnings or losses.
The Company's income tax provisionbenefit (provision) differs from the federal statutory rate multiplied by pre-tax income (loss) due to the mix of the Company's pre-tax income (loss) generated across the various jurisdictions in which the Company operates, changes in the valuation allowance against the Company's deferred tax assets, and certain minimum taxes and foreign withholding taxes. The Company's income tax provision for the threequarter ended September 30, 2021 and nine months ended December 31, 2020 was also impacted by the change ininterest accrual on uncertain tax benefits, and release of uncertain tax benefits due to the close of audits or expiration of statutory limitations and additional settlements with tax authorities.limitations.
The Company's income tax provisionbenefit (provision) can be affected by many factors, including the overall level of pre-tax income, the mix of pre-tax income generated across the various jurisdictions in which the Company operates, changes in tax laws and regulations in those jurisdictions, changes in uncertain tax positions, further interpretation and legislative guidance regarding the new Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), changes in valuation allowances on its deferred tax assets, tax planning strategies available to the Company, and other discrete items.

13. Restructuring and Other

Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable. During the three and ninesix months ended December 31,September 30, 2021 and 2020, the Company also incurred certain other unusual charges related to the COVID-19 global pandemic, and during the three and nine months ended December 31, 2019, certain other unusual charges related to programming write-downs, which are included in direct operating and distribution and marketing expense in the unaudited condensed consolidated statement of operations.pandemic. The following table sets forth restructuring and other and these unusual programming and COVID-19 related charges and the statement of operations line items they are included in for the three and ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
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Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Restructuring and other:Restructuring and other:Restructuring and other:
Severance(1)
Severance(1)
Severance(1)
CashCash$0.9 $1.8 $11.6 $7.7 Cash$1.3 $8.5 $3.8 $10.6 
Accelerated vesting on equity awards (see Note 11)Accelerated vesting on equity awards (see Note 11)2.8 0.3 Accelerated vesting on equity awards (see Note 11)— 2.8 — 2.8 
Total severance costsTotal severance costs0.9 1.8 14.4 8.0 Total severance costs1.3 11.3 $3.8 $13.4 
COVID-19 related charges included in restructuring and other(2)
COVID-19 related charges included in restructuring and other(2)
0.8 1.6 
COVID-19 related charges included in restructuring and other(2)
0.5 0.3 0.8 0.8 
Transaction and related costs(3)
Transaction and related costs(3)
0.7 1.9 2.9 8.8 
Transaction and related costs(3)
1.7 1.8 2.1 2.2 
Total Restructuring and OtherTotal Restructuring and Other2.4 3.7 18.9 16.8 Total Restructuring and Other3.5 13.4 6.7 16.4 
Programming and content charges and COVID-19 related charges not included in restructuring and other:
Programming and content charges included in direct operating expense(4)
74.0 74.0 
COVID-19 related charges included in:
COVID-19 related charges (benefit) not included in restructuring and other, included in:COVID-19 related charges (benefit) not included in restructuring and other, included in:
Direct operating expense(5)(4)
Direct operating expense(5)(4)
8.6 36.6 
Direct operating expense(5)(4)
(1.0)22.3 0.5 28.1 
Distribution and marketing expense(5)(4)
Distribution and marketing expense(5)(4)
5.4 16.1 
Distribution and marketing expense(5)(4)
0.2 6.1 0.3 10.7 
Total restructuring and other, programming and content charges, and COVID-19 related charges$16.4 $77.7 $71.6 $90.8 
Total restructuring and other and COVID-19 related chargesTotal restructuring and other and COVID-19 related charges$2.7 $41.8 $7.5 $55.2 
_______________________
(1)Severance costs in the three and ninesix months ended December 31,September 30, 2021 and 2020 and 2019 were primarily related to restructuring activities in connection with cost-saving initiatives and recent acquisitions.
(2)During the three and ninesix months ended December 31, 2020,September 30, 2021, the Company has incurred certain costs includingprimarily related to incremental costs required to adhere to health and safety protocols and other incremental costs associated with the COVID-19 global pandemic. In the three and six months ended September 30, 2020, these costs were 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 three and ninesix months ended December 31,September 30, 2021 and 2020 and 2019 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters.
(4)In the three months ended December 31, 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 $74.0 million in the three and nine months ended December 31, 2019, which are included in direct operating expense in the unaudited condensed 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 the three and ninesix months ended December 31,September 30, 2021 and 2020 the Company incurred certain incremental costs which were expensed in the period. The costscharges (benefit) included in direct operating expense primarily representincludes incremental costs associated with 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, net of insurance recoveries, and in the ninethree and six months ended December 31,September 30, 2020, includethese charges also included film impairment due to changes in performance expectations resulting from circumstances associated with the COVID-19 global pandemic. In the three months ended September 30, 2021, insurance recoveries exceeded the incremental costs expensed in the period, resulting in a net benefit included in direct operating expense. In addition, the costs included in distribution and marketing expense primarily consist of contractual marketing spends for film releases and events that have been canceled or delayed and will provide no economic benefit. The Company is in the process of seeking additional insurance recovery for some of these costs, whichcosts. The ultimate amount of insurance recovery cannot be estimated at this time, and therefore no material amounts of insurance proceeds have been recorded in the consolidated financial statements.time.

Changes in the restructuring and other severance liability were as follows for the ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
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Nine Months EndedSix Months Ended
December 31,September 30,
2020201920212020
(Amounts in millions) (Amounts in millions)
Severance liabilitySeverance liabilitySeverance liability
Beginning balanceBeginning balance$11.1 $14.7 Beginning balance$5.7 $11.1 
AccrualsAccruals11.6 17.0 Accruals3.8 10.6 
Severance paymentsSeverance payments(15.7)(13.0)Severance payments(6.5)(10.8)
Ending balance(1)
Ending balance(1)
$7.0 $18.7 
Ending balance(1)
$3.0 $10.9 
_______________________
(1)As of December 31, 2020,September 30, 2021, the remaining severance liability of approximately $7.0$3.0 million is expected to be paid in the next 12 months.

14. Segment Information
The Company’s reportable segments have been determined based on the distinct nature of their operations, the Company's internal management structure, and the financial information that is evaluated regularly by the Company's chief operating decision maker.

The Company has 3 reportable business segments: (1) Motion Picture, (2) Television Production and (3) Media Networks.
Motion Picture. Motion Picture 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. 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. Television Production includes the licensing of Starz original series productions to Starz Networks and STARZPLAY International, and the ancillary market distribution of Starz original productions and licensed product. Additionally, the Television Production segment includes the results of operations of 3 Arts Entertainment.
Media Networks. Media Networks consists of the following product lines (i) Starz Networks, which includes the domestic licensingdistribution of STARZ branded premium subscription video programming to distributors,services through OTT platforms and Distributors and on a direct-to-consumer basis through the Starz App and (ii) STARZPLAY International, which represents revenues primarily from the OTT distribution of the Company's STARZ branded premium subscription video services internationally and (iii)outside of the U.S. Through March 31, 2021, Media Networks also included Other Streaming Services, which representsrepresented primarily our formerly majority owned premium Spanish language streaming services business, Pantaya. The Company sold its interest in Pantaya on March 31, 2021 (see Note 2).
In the ordinary course of business, the Company's reportable segments enter into transactions with one another. The most common types of intersegment transactions include licensing motion pictures or television programming (including Starz original productions) from the Motion Picture and Television Production segments to the Media Networks segment. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses, assets, or liabilities recognized by the segment that is the counterparty to the transaction) are eliminated in consolidation and, therefore, do not affect consolidated results.

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Segment information is presented in the table below:
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Segment revenuesSegment revenuesSegment revenues
Motion PictureMotion Picture$250.3 $473.9 $788.6 $1,277.6 Motion Picture$330.9 $257.6 $622.1 $538.3 
Television ProductionTelevision Production228.2 189.4 621.0 743.2 Television Production336.0 197.2 722.1 392.9 
Media NetworksMedia Networks406.2 382.4 1,161.7 1,128.8 Media Networks384.7 388.3 767.0 755.5 
Intersegment eliminationsIntersegment eliminations(48.3)(47.2)(176.3)(203.9)Intersegment eliminations(163.8)(98.1)(322.2)(128.0)
$836.4 $998.5 $2,395.0 $2,945.7 $887.8 $745.0 $1,789.0 $1,558.7 
Intersegment revenuesIntersegment revenuesIntersegment revenues
Motion PictureMotion Picture$6.5 $3.8 $16.7 $13.9 Motion Picture$2.8 $7.1 $7.2 $10.2 
Television ProductionTelevision Production41.8 42.8 159.6 188.2 Television Production161.0 91.0 315.0 117.8 
Media NetworksMedia Networks0.6 1.8 Media Networks— — — — 
$48.3 $47.2 $176.3 $203.9 $163.8 $98.1 $322.2 $128.0 
Gross contributionGross contributionGross contribution
Motion PictureMotion Picture$76.2 $74.0 $313.9 $183.7 Motion Picture$124.5 $107.8 $193.2 $237.6 
Television ProductionTelevision Production39.0 4.4 105.8 58.8 Television Production38.0 21.2 51.0 66.9 
Media NetworksMedia Networks104.5 124.4 311.6 330.0 Media Networks28.3 114.9 137.6 207.2 
Intersegment eliminationsIntersegment eliminations(4.0)2.0 (14.3)2.6 Intersegment eliminations(3.1)(2.7)5.5 (10.4)
$215.7 $204.8 $717.0 $575.1 $187.7 $241.2 $387.3 $501.3 
Segment general and administrationSegment general and administrationSegment general and administration
Motion PictureMotion Picture$26.2 $25.0 $79.8 $76.1 Motion Picture$22.7 $24.8 $47.1 $53.6 
Television ProductionTelevision Production9.5 10.1 31.5 26.9 Television Production9.5 11.3 19.5 22.0 
Media NetworksMedia Networks22.8 22.3 65.3 62.7 Media Networks22.8 22.0 43.9 42.5 
$58.5 $57.4 $176.6 $165.7 $55.0 $58.1 $110.5 $118.1 
Segment profitSegment profitSegment profit
Motion PictureMotion Picture$50.0 $49.0 $234.1 $107.6 Motion Picture$101.8 $83.0 $146.1 $184.0 
Television ProductionTelevision Production29.5 (5.7)74.3 31.9 Television Production28.5 9.9 31.5 44.9 
Media NetworksMedia Networks81.7 102.1 246.3 267.3 Media Networks5.5 92.9 93.7 164.7 
Intersegment eliminationsIntersegment eliminations(4.0)2.0 (14.3)2.6 Intersegment eliminations(3.1)(2.7)5.5 (10.4)
$157.2 $147.4 $540.4 $409.4 $132.7 $183.1 $276.8 $383.2 

The Company's primary measure of segment performance is segment profit. Segment profit is defined as gross contribution (revenues, less direct operating and distribution and marketing expense) less segment general and administration expenses. Segment profit excludes, when applicable, corporate general and administrative expense, restructuring and other costs, share-based compensation, certain programming and content charges as a result of changes in management and associated programming and content strategy, and, when applicable, certain charges related to the COVID-19 global pandemic and purchase accounting and related adjustments. The Company believes the presentation of segment profit is relevant and useful for investors because it allows investors to view segment performance in a manner similar to the primary method used by the Company's management and enables them to understand the fundamental performance of the Company's businesses. Media Networks gross contribution and segment profit for the three and nine months ended December 31, 2019 includes a benefit of $4.6 million and $41.3 million, respectively, in direct operating expenses associated with the modification of a content licensing arrangement, net of amortization for related changes in content availability and air dates.

The reconciliation of total segment profit to the Company’s income (loss) before income taxes is as follows:
 
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Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Company’s total segment profitCompany’s total segment profit$157.2 $147.4 $540.4 $409.4 Company’s total segment profit$132.7 $183.1 $276.8 $383.2 
Corporate general and administrative expensesCorporate general and administrative expenses(23.4)(23.4)(76.9)(73.0)Corporate general and administrative expenses(24.5)(27.1)(48.8)(53.5)
Adjusted depreciation and amortization(1)
Adjusted depreciation and amortization(1)
(10.8)(10.5)(32.9)(31.5)
Adjusted depreciation and amortization(1)
(10.8)(12.1)(21.0)(22.1)
Restructuring and other(2)
Restructuring and other(2)
(2.4)(3.7)(18.9)(16.8)
Restructuring and other(2)
(3.5)(13.4)(6.7)(16.4)
COVID-19 related charges included in direct operating expense and distribution and marketing expense(3)
(14.0)(52.7)
Programming and content charges(4)
(74.0)(74.0)
COVID-19 related (charges) benefit included in direct operating expense and distribution and marketing expense(3)
COVID-19 related (charges) benefit included in direct operating expense and distribution and marketing expense(3)
0.8 (28.4)(0.8)(38.8)
Adjusted share-based compensation expense(5)(4)
Adjusted share-based compensation expense(5)(4)
(20.0)(17.2)(57.2)(41.0)
Adjusted share-based compensation expense(5)(4)
(20.4)(22.8)(54.9)(37.2)
Purchase accounting and related adjustments(6)(5)
Purchase accounting and related adjustments(6)(5)
(49.5)(58.1)(145.5)(158.2)
Purchase accounting and related adjustments(6)(5)
(44.5)(49.6)(94.5)(96.1)
Operating income (loss)37.1 (39.5)156.3 14.9 
Operating incomeOperating income29.8 29.7 50.1 119.1 
Interest expenseInterest expense(45.0)(48.7)(135.2)(145.7)Interest expense(44.0)(45.7)(85.7)(90.2)
Interest and other incomeInterest and other income0.5 2.0 2.2 7.0 Interest and other income24.1 0.1 28.0 1.8 
Other expenseOther expense(2.1)(3.6)(4.5)(9.7)Other expense(2.7)(0.7)(4.3)(2.3)
Loss on extinguishment of debtLoss on extinguishment of debt(1.4)(1.4)Loss on extinguishment of debt(0.4)— (27.1)— 
Gain (loss) on investmentsGain (loss) on investments0.3 (0.3)Gain (loss) on investments1.5 (4.7)1.5 0.4 
Equity interests loss(0.7)(4.6)(5.1)(15.7)
Equity interests income (loss)Equity interests income (loss)0.4 (1.9)1.1 (4.5)
Income (loss) before income taxesIncome (loss) before income taxes$(10.2)$(95.8)$14.0 $(150.9)Income (loss) before income taxes$8.7 $(23.2)$(36.4)$24.3 
___________________
(1)Adjusted depreciation and amortization represents depreciation and amortization as presented on our unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in recent acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below:
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Depreciation and amortizationDepreciation and amortization$45.8 $51.9 $142.9 $143.0 Depreciation and amortization$44.4 $49.6 $87.8 $97.1 
Less: Amount included in purchase accounting and related adjustmentsLess: Amount included in purchase accounting and related adjustments(35.0)(41.4)(110.0)(111.5)Less: Amount included in purchase accounting and related adjustments(33.6)(37.5)(66.8)(75.0)
Adjusted depreciation and amortizationAdjusted depreciation and amortization$10.8 $10.5 $32.9 $31.5 Adjusted depreciation and amortization$10.8 $12.1 $21.0 $22.1 
(2)Restructuring and other includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable (see Note 13).
(3)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, during the three and ninesix months ended December 31, 2020September 30, 2021 the Company has incurred $14.0a benefit of $(0.8) million and $52.7charges of $0.8 million, respectively, net of insurance recoveries, in incremental direct operating and distribution and marketing expense (three and six months ended September 30, 2020 - $28.4 million and $38.8 million, respectively) (see Note 13). These charges are excluded from segment operating results.
(4)In the three months ended December 31, 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 $74.0 million in the three and nine months ended December 31, 2019, which are included in direct operating expense in the unaudited condensed consolidated statement of operations.
(5)The following table reconciles total share-based compensation expense to adjusted share-based compensation expense:
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Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Total share-based compensation expenseTotal share-based compensation expense$20.0 $17.2 $60.0 $41.3 Total share-based compensation expense$20.4 $25.6 $54.9 $40.0 
Less:Less:Less:
Amount included in restructuring and other(i)
Amount included in restructuring and other(i)
(2.8)(0.3)
Amount included in restructuring and other(i)
— (2.8)— (2.8)
Adjusted share-based compensationAdjusted share-based compensation$20.0 $17.2 $57.2 $41.0 Adjusted share-based compensation$20.4 $22.8 $54.9 $37.2 
(i)Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements.
(6)(1)Purchase accounting and related adjustments primarily represent the amortization of non-cash fair value adjustments to certain assets acquired in recent acquisitions. These adjustments include the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with the earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. The following sets forth the amounts included in each line item in the financial statements:
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Purchase accounting and related adjustments:Purchase accounting and related adjustments:Purchase accounting and related adjustments:
Direct operatingDirect operating$0.1 $5.1 $0.9 $7.6 Direct operating$0.1 $0.6 $0.5 $0.9 
General and administrative expenseGeneral and administrative expense14.4 11.6 34.6 39.1 General and administrative expense10.8 11.5 27.2 20.2 
Depreciation and amortizationDepreciation and amortization35.0 41.4 110.0 111.5 Depreciation and amortization33.6 37.5 66.8 75.0 
$49.5 $58.1 $145.5 $158.2 $44.5 $49.6 $94.5 $96.1 

See Note 9 for revenues by media or product line as broken down by segment for the three and ninesix months ended December 31, 2020September 30, 2021 and 2019.2020.

The following table reconciles segment general and administration expense to the Company's total consolidated general and administration expense:
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions)(Amounts in millions)
General and administrationGeneral and administrationGeneral and administration
Segment general and administrative expensesSegment general and administrative expenses$58.5 $57.4 $176.6 $165.7 Segment general and administrative expenses$55.0 $58.1 $110.5 $118.1 
Corporate general and administrative expensesCorporate general and administrative expenses23.4 23.4 76.9 73.0 Corporate general and administrative expenses24.5 27.1 48.8 53.5 
Share-based compensation expense included in general and administrative expenseShare-based compensation expense included in general and administrative expense19.3 16.3 55.2 39.5 Share-based compensation expense included in general and administrative expense19.7 22.1 54.1 36.0 
Purchase accounting and related adjustmentsPurchase accounting and related adjustments14.4 11.6 34.6 39.1 Purchase accounting and related adjustments10.8 11.5 27.2 20.2 
$115.6 $108.7 $343.3 $317.3 $110.0 $118.8 $240.6 $227.8 

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The reconciliation of total segment assets to the Company’s total consolidated assets is as follows:
 
December 31,
2020
March 31,
2020
September 30,
2021
March 31,
2021
(Amounts in millions) (Amounts in millions)
AssetsAssetsAssets
Motion PictureMotion Picture$1,255.8 $1,266.9 Motion Picture$1,761.7 $1,212.4 
Television ProductionTelevision Production1,433.6 1,414.8 Television Production1,792.5 1,757.9 
Media NetworksMedia Networks4,516.2 4,671.4 Media Networks4,451.1 4,399.3 
Other unallocated assets(1)
Other unallocated assets(1)
802.4 598.1 
Other unallocated assets(1)
742.1 936.6 
$8,008.0 $7,951.2 $8,747.4 $8,306.2 
_____________________
(1)Other unallocated assets primarily consist of cash, other assets and investments.


15. Contingencies

From time to time, the Company is involved in certain claims and legal proceedings arising in the normal course of business.

The Company establishes an accrued liability for claims and legal proceedings when the Company determines that a loss is both probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters.

Due to the inherent difficulty of predicting the outcome of claims and legal proceedings, the Company often cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, if any, related to each pending matter may be. Accordingly, at this time, the Company has determined a loss related to these matters in excess of accrued liabilities is reasonably possible, however a reasonable estimate of the possible loss or range of loss cannot be made at this time.

Insurance Litigation

Between July 19, 2016 and August 30, 2016, 7 putative class action complaints were filed by purported Starz stockholders in the Court of Chancery of the State of Delaware (the "Fiduciary Litigation"). On August 22, 2018, the parties to the Fiduciary Litigation reached an agreement in principle providing for the settlement of the Fiduciary Litigation on the terms and conditions set forth in an executed term sheet. On October 9, 2018, the parties to the Litigation executed a stipulation of settlement, which was filed with the court (the "Stipulation"). The Stipulation provided for, among other things, the final dismissal of the Fiduciary Litigation in exchange for a settlement payment made in the amount of $92.5 million, of which $37.8 million was reimbursed by insurance. The Fiduciary Litigation settlement was approved by the Court of Chancery of the State of Delaware and the settlement amount and insurance reimbursement discussed above were paid during the quarter ended December 31, 2018. The Company is continuing to seek additional insurance reimbursement, including pursuant to a lawsuit filed by the Company on November 7, 2018 against certain insurers.

On November 7, 2018, in support of its effort to obtain additional insurance reimbursements, the Company filed a lawsuit against certain insurers. Additionally, on November 5, 2018, an insurer that entered into an agreement and contributed $10.0 million to the Company's aggregate insurance reimbursement filed a lawsuit seeking declaratory judgment for reimbursement of its agreed upon payment. During the quarter ended September 30, 2021, the Company settled with all of the insurers in both lawsuits except 1 (with whom the Company had settled in the prior quarter). The net settlement amount derived by the Company believesduring the lawsuit to be without meritthree months ended September 30, 2021 is $20.2 million, which is included in the “interest and intends to vigorously defend it.other income” line item on the unaudited condensed consolidated statement of operations (six months ended September 30, 2021 - $22.7 million).

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16. Derivative Instruments and Hedging Activities
Forward Foreign Exchange Contracts
The Company enters into forward foreign exchange contracts to hedge its foreign currency exposures on future production expenses and tax credit receivables denominated in various foreign currencies (i.e., cash flow hedges). The Company also enters into forward foreign exchange contracts that economically hedge certain of its foreign currency risks, even though hedge
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


accounting does not apply or the Company elects not to apply hedge accounting. The Company monitors its positions with, and the credit quality of, the financial institutions that are party to its financial transactions. Changes in the fair value of the foreign exchange contracts that are designated as hedges are reflected in accumulated other comprehensive income (loss), and changes in the fair value of foreign exchange contracts that are not designated as hedges and do not qualify for hedge accounting are recorded in direct operating expense. Gains and losses realized upon settlement of the foreign exchange contracts that are designated as hedges are amortized to direct operating expense on the same basis as the production expenses being hedged.
As of December 31, 2020,September 30, 2021, the Company had the following outstanding forward foreign exchange contracts (all outstanding contracts have maturities of less than 1316 months from December 31, 2020)September 30, 2021):

December 31, 2020September 30, 2021
Foreign CurrencyForeign Currency AmountUS Dollar AmountWeighted Average Exchange Rate Per $1 USD
 (Amounts in millions)(Amounts in millions)
British Pound Sterling£4.7 in exchange for$6.06.5 £0.780.72
Hungarian ForintHUF 2,085.010,669.0 in exchange for$7.135.6 HUF 293.74299.86
Euro0.710.9 in exchange for$0.913.9 0.840.79
Canadian DollarC$14.82.5 in exchange for$11.32.3 C$1.311.13
Croatian KunaCzech KorunaHRK3.3CZK99.9 in exchange for$0.54.4 HRK6.32
Czech KorunaCZK177.1 in exchange for$7.7 CZK23.01CZK22.57


Interest Rate Swaps

The Company is exposed to the impact of interest rate changes primarily through its borrowing activities. The Company’s objective is to mitigate the impact of interest rate changes on earnings and cash flows. The Company primarily uses pay-fixed interest rate swaps to facilitate its interest rate risk management activities, which the Company generally designates as cash flow hedges of interest payments on floating-rate borrowings. Pay-fixed swaps effectively convert floating-rate borrowings to fixed-rate borrowings. The unrealized gains or losses from these designated cash flow hedges are deferred in accumulated other comprehensive income (loss) and recognized in interest expense as the interest payments occur. Changes in the fair value of interest rate swaps that are not designated as hedges are recorded in interest expense (see further explanation below).

Cash settlements related to interest rate contracts are generally classified as operating activities on the consolidated statements of cash flows. However, due to an other-than-insignificant financing element on a portion of our interest rate swaps (see designated cash flow hedges table below), the cash flows related to these contracts are classified as financing activities.

Designated Cash Flow Hedges. As of March 31, 2020,September 30, 2021, the Company had the following designated cash flow hedge pay-fixed interest rate swaps outstanding (all related to the Company's LIBOR-based debt, see Note 45 and Note 6):
Effective DateNotional Amount (in millions)Fixed Rate PaidMaturity Date
May 23, 2018$1,000.0 2.915%March 24, 2025
June 25, 2018$200.0 2.723%March 23, 2025
July 31, 2018$300.0 2.885%March 23, 2025
December 24, 2018$50.0 2.744%March 23, 2025
December 24, 2018$100.0 2.808%March 23, 2025
December 24, 2018$50.0 2.728%March 23, 2025
Total$1,700.0 

During the nine months ended December 31, 2020, the Company completed a series of transactions to amend and extend certain interest rate swap agreements. These transactions effectively replaced $1.4 billion of the interest rate swaps presented in the table above, and resulted in an extension of the maturity date on an aggregate of $1.4 billion of the Company's interest rate swaps by an additional 2 to 5 years, subject to mandatory early termination dates, and a decrease of the weighted average fixed pay rate from 2.870% to 2.250% per annum.

These interest rate swap transactions consisted of the following in the nine months ended December 31, 2020: (i) $1.4 billion of the interest rate swaps presented in the table above were de-designated as cash flow hedges, (ii) the Company entered
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into $1.4 billion
Effective DateNotional AmountFixed Rate Paid
Maturity Date(1)
(in millions)
May 23, 2018$300.0 2.915%March 24, 2025
May 19, 2020$700.0 1.923%March 23, 2030(2)
May 19, 2020$350.0 2.531%March 23, 2027(2)
June 15, 2020$150.0 2.343%March 23, 2027(2)
August 14, 2020$200.0 1.840%March 23, 2030(2)
Total$1,700.0 
__________________
(1)Subject to a mandatory early termination date of pay-variable receive-fixed interest rate swaps which are designed to offset the terms of the $1.4 billion of swaps in (i) and which are not designated as cash flow hedges, and (iii) the Company entered into $1.4 billion of new pay-fixed interest rate swaps with extended maturities. March 23, 2025.
(2)These new pay-fixed interest rate swaps are considered hybrid instruments with a financing component and an embedded at-market derivative that was designated as a cash flowsflow hedge (see discussion of cash flow presentation below)above).

Key termsNot Designated. As of September 30, 2021, the newCompany had the following pay-fixed receive-variable and offsetting pay-variable receive-fixed interest rate swaps outstanding, at December 31, 2020which are presented below (notnot designated as hedges):
Effective DateNotional Amount (in millions)Fixed Rate ReceivedMaturity Date
May 19, 2020$700.0 2.915%March 24, 2025
May 19, 2020$300.0 2.885%March 23, 2025
May 19, 2020$50.0 2.744%March 23, 2025
June 15, 2020$100.0 2.808%March 23, 2025
June 15, 2020$50.0 2.728%March 23, 2025
August 14, 2020$200.0 2.723%March 23, 2025
Total$1,400.0 

Key terms of the new designated cash flow hedge pay-fixed interest rate swaps outstanding at December 31, 2020 are presented below:hedges:
Effective DateNotional Amount (in millions)Fixed Rate Paid
Maturity Date(1)
May 19, 2020$700.0 1.923%March 23, 2030
May 19, 2020$350.0 2.531%March 23, 2027
June 15, 2020$150.0 2.343%March 23, 2027
August 14, 2020$200.0 1.840%March 23, 2030
Total$1,400.0 
Pay-Fixed Receive-Variable(1)
Offsetting Pay-Variable Receive-Fixed(1)
Effective DateNotional AmountFixed Rate PaidEffective DateNotional AmountFixed Rate ReceivedMaturity Date
(in millions)(in millions)
May 23, 2018$700.0 2.915%May 19, 2020$700.0 2.915%March 24, 2025
June 25, 2018$200.0 2.723%August 14, 2020$200.0 2.723%March 23, 2025
July 31, 2018$300.0 2.885%May 19, 2020$300.0 2.885%March 23, 2025
December 24, 2018$50.0 2.744%May 19, 2020$50.0 2.744%March 23, 2025
December 24, 2018$100.0 2.808%June 15, 2020$100.0 2.808%March 23, 2025
December 24, 2018$50.0 2.728%June 15, 2020$50.0 2.728%March 23, 2025
Total$1,400.0 Total$1,400.0 
__________________
(1)SubjectDuring the fiscal year ended March 31, 2021, the Company completed a series of transactions to a mandatory early termination dateamend and extend certain interest rate swap agreements, and as part of March 23, 2025.

these transactions, the $1.4 billion pay-fixed receive-variable interest rate swaps presented in the table above were de-designated, and the Company entered into $1.4 billion of pay-variable receive-fixed interest rate swaps, as presented in the table above, which are designed to offset the terms of the $1.4 billion of pay-fixed receive-variable swaps in the table above. At the time of the de-designation of the above $1.4 billion in pay-fixed receive-variable interest rate swaps, there was approximately $163.0 million of unrealized losses recorded in accumulated other comprehensive income (loss). This amount will beis being amortized to interest expense through the remaining term of the original de-designated swaps unless it becomes probable that the cash flows originally hedged will not occur, in which case the proportionate amount of the loss will be recorded to interest expense at that time. The $1.4 billion of pay-fixed receive-variable interest rate swaps de-designated as cash flow hedges and the $1.4 billion of offsetting pay-variable receive-fixed swaps will beare marked to market with changes in fair value recognized, along with the fixed and variable payments on these swaps, in interest expense, which are expected to nearly offset each other.

Cash settlements related to interest rate contracts are generally classified as operating activities on the consolidated statements of cash flows. However, due to an other-than-insignificant financing element on a portion of our interest rate swaps (see table above for new designated cash flow hedge pay-fixed interest rate swaps), the cash flows related to these contracts are classified as financing activities.

Financial Statement Effect of Derivatives
Unaudited condensed consolidated statementstatements of operations and comprehensive loss:income (loss): The following table presents the pre-tax effect of the Company's derivatives on the accompanying unaudited condensed consolidated statements of operations and comprehensive lossincome (loss) for the three and ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
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Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Derivatives designated as cash flow hedges:Derivatives designated as cash flow hedges:Derivatives designated as cash flow hedges:
Forward exchange contractsForward exchange contractsForward exchange contracts
Gain recognized in accumulated other comprehensive loss$2.0 $0.1 $1.5 $1.7 
Gain reclassified from accumulated other comprehensive loss into direct operating expense$0.3 $0.4 $0.3 $1.9 
Gain (loss) recognized in accumulated other comprehensive lossGain (loss) recognized in accumulated other comprehensive loss$0.3 $(0.4)$0.2 $(0.6)
Loss reclassified from accumulated other comprehensive loss into direct operating expenseLoss reclassified from accumulated other comprehensive loss into direct operating expense$(0.2)$— $(0.4)$(0.1)
Interest rate swapsInterest rate swapsInterest rate swaps
Gain (loss) recognized in accumulated other comprehensive lossGain (loss) recognized in accumulated other comprehensive loss$12.2 $18.8 $(16.0)$(52.3)Gain (loss) recognized in accumulated other comprehensive loss$1.9 $(10.5)$(38.9)$(28.2)
Loss reclassified from accumulated other comprehensive loss into interest expenseLoss reclassified from accumulated other comprehensive loss into interest expense$(8.2)$(4.5)$(25.2)$(8.9)Loss reclassified from accumulated other comprehensive loss into interest expense$(8.1)$(9.6)$(16.4)$(17.0)
Derivatives not designated as cash flow hedges:Derivatives not designated as cash flow hedges:Derivatives not designated as cash flow hedges:
Forward exchange contractsForward exchange contractsForward exchange contracts
Gain recognized in direct operating expenseGain recognized in direct operating expense$$0.1 $0.3 $0.2 Gain recognized in direct operating expense$— $— $— $0.3 
Interest rate swapsInterest rate swapsInterest rate swaps
Loss reclassified from accumulated other comprehensive loss into interest expenseLoss reclassified from accumulated other comprehensive loss into interest expense$(8.5)$$(20.0)$Loss reclassified from accumulated other comprehensive loss into interest expense$(8.5)$(8.0)$(17.0)$(11.4)
Total direct operating expense on consolidated statements of operationsTotal direct operating expense on consolidated statements of operations$459.3 $594.6 $1,249.0 $1,662.0 Total direct operating expense on consolidated statements of operations$483.2 $366.8 $969.3 $789.8 
Total interest expense on consolidated statements of operationsTotal interest expense on consolidated statements of operations$45.0 $48.7 $135.2 $145.7 Total interest expense on consolidated statements of operations$44.0 $45.7 $85.7 $90.2 

Unaudited condensed consolidated balance sheets: The Company classifies its forward foreign exchange contracts and interest rate swap agreements within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments (see Note 7). The portion of the swaps reflecting the financing component of the hybrid instrument discussed above is recorded at amortized cost and reduced over time based on payments. Pursuant to the Company's accounting policy to offset the fair value amounts recognized for derivative instruments, the Company presents the asset or liability position of the swaps that are with the same counterparty under a master netting arrangement net as either an asset or liability in its unaudited condensed consolidated balance sheets. TheAs of September 30, 2021, the gross amount of swaps in an asset and liability position that were subject to a master netting arrangement was $165.8$173.0 million and $261.6$218.3 million, respectively, resulting in an asset recorded in other assets - non current of $9.9$27.2 million and a liability recorded in other liabilities - non-current of $105.7$72.5 million. As of March 31, 2021, the gross amount of swaps in an asset and liability position that were subject to a master netting arrangement was $211.2 million asand $236.3 million, respectively, resulting in an asset recorded in other assets - non-current of December 31, 2020.$50.8 million and a liability recorded in other liabilities - non-current of $75.9 million.
As of December 31, 2020September 30, 2021 and March 31, 2020,2021, the Company had the following amounts recorded in the accompanying unaudited condensed consolidated balance sheets related to the Company's use of derivatives:
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September 30, 2021
Other Current AssetsOther Non-Current AssetsAccounts Payable and Accrued LiabilitiesOther Non-Current Liabilities
 (Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts$2.1 $— $2.6 $— 
Interest rate swaps— 52.3 — 7.7 
Derivatives not designated as cash flow hedges:
Interest rate swaps(1)
— (25.0)— 115.4 
Fair value of derivatives$2.1 $27.3 $2.6 $123.1 
________________
(1)Includes $93.1 million and $50.2 million included in other non-current assets and other non-current liabilities, respectively, representing the financing element of certain hybrid instruments, which is offset by the pay-variable receive-fixed interest rate swaps outstanding at September 30, 2021.

March 31, 2021
Other Current AssetsOther Non-Current AssetsAccounts Payable and Accrued LiabilitiesOther Non-Current Liabilities
 (Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts$1.5 $— $2.6 $— 
Interest rate swaps— 72.7 — 5.6 
Derivatives not designated as cash flow hedges:
Interest rate swaps(1)
— (21.9)— 127.1 
Fair value of derivatives$1.5 50.8 $2.6 132.7 
________________
(1)Includes $98.2 million and $54.3 million included in other non-current assets and other non-current liabilities, respectively, representing the financing element of certain hybrid instruments, which is offset by the pay-variable receive-fixed interest rate swaps outstanding at March 31, 2021.
As of September 30, 2021, based on the current release schedule, the Company estimates less than $0.1 million of gains associated with forward foreign exchange contract cash flow hedges in accumulated other comprehensive loss will be reclassified into earnings during the one-year period ending September 30, 2022.  
As of September 30, 2021, the Company estimates approximately $47.4 million of losses recorded in accumulated other comprehensive loss associated with interest rate swap agreement cash flow hedges will be reclassified into interest expense during the one-year period ending September 30, 2022.  


17. Additional Financial Information

The following tables present supplemental information related to the unaudited condensed consolidated financial statements.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the unaudited condensed consolidated balance sheet to the total amounts reported in the unaudited condensed consolidated statement of cash flows at September 30, 2021. At September 30, 2021, restricted cash included in other current assets represents amounts related to required cash reserves for interest payments associated with the Production Tax Credit Facility and IP Credit Facility. There were no material amounts of restricted cash in the unaudited condensed consolidated balance sheet as of March 31, 2021.

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December 31, 2020
Other Current AssetsOther Non-Current AssetsAccounts Payable and Accrued LiabilitiesOther Non-Current Liabilities
 (Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts$2.3 $$1.0 $
Interest rate swaps14.5 30.2 
Derivatives not designated as cash flow hedges:
Interest rate swaps(1)
(4.6)147.2 
Fair value of derivatives$2.3 $9.9 $1.0 $177.4 
________________
(1)Includes $100.7 million and $56.3 million included in other non-current assets and other non-current liabilities, respectively, representing the financing element of certain hybrid instruments, which is offset by the new pay-variable receive-fixed interest rate swaps outstanding at December 31, 2020.
March 31, 2020
Other Current AssetsAccounts Payable and Accrued LiabilitiesOther Non-Current Liabilities
 (Amounts in millions)
Derivatives designated as cash flow hedges:
Forward exchange contracts$0.6 $0.5 $
Interest rate swaps187.9 
Derivatives not designated as cash flow hedges:
Forward exchange contracts0.4 
Fair value of derivatives$0.6 $0.9 187.9 
September 30,
2021
(Amounts in millions)
Cash and cash equivalents$442.6 
Restricted cash included in other current assets5.2 
Total cash, cash equivalents and restricted cash$447.8 

As of December 31, 2020, based on the current release schedule, the Company estimates approximately $1.3 million of gains associated with forward foreign exchange contract cash flow hedges in accumulated other comprehensive loss will be reclassified into earnings during the one-year period ending December 31, 2021.  
As of December 31, 2020, the Company estimates approximately $47.7 million of losses recorded in accumulated other comprehensive loss associated with interest rate swap agreement cash flow hedges will be reclassified into interest expense during the one-year period ending December 31, 2021.  


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17. Additional Financial Information

The following tables present supplemental information related to the unaudited condensed consolidated financial statements.

Other Assets
The composition of the Company’s other assets is as follows as of December 31, 2020September 30, 2021 and March 31, 2020:2021:
 
December 31,
2020
March 31,
2020
 (Amounts in millions)
Other current assets
Prepaid expenses and other$65.5 $65.7 
Product inventory(1)
14.1 13.4 
Tax credits receivable79.1 78.3 
$158.7 $157.4 
Other non-current assets
Prepaid expenses and other$18.6 $34.3 
Accounts receivable49.9 53.6 
Tax credits receivable173.8 166.7 
Operating lease right-of-use assets128.7 136.9 
Interest rate swap assets9.9 
$380.9 $391.5 
___________________
September 30,
2021
March 31,
2021
 (Amounts in millions)
Other current assets
Prepaid expenses and other$73.7 $68.0 
Cash consideration receivable for sale of Pantaya (see Note 2)— 123.6 
Product inventory16.3 14.3 
Tax credits receivable96.3 68.4 
$186.3 $274.3 
Other non-current assets
Prepaid expenses and other$23.1 $25.8 
Accounts receivable42.7 49.4 
Tax credits receivable259.7 181.2 
Operating lease right-of-use assets139.8 127.0 
Interest rate swap assets27.2 50.8 
$492.5 $434.2 
(1)Home entertainment product inventory consists of Packaged Media and is stated at the lower of cost or market value (first-in, first-out method). Costs of Packaged Media sales, including shipping and handling costs, are included in distribution and marketing expenses.

Accounts Receivable Monetization

Under the Company's accounts receivable monetization programs, the Company has entered into (1) individual agreements to monetize certain of its trade accounts receivable directly with third-party purchasers and (2) a revolving agreement to monetize designated pools of trade accounts receivable with various financial institutions, as further described below. Under these programs, the Company transfers receivables to purchasers in exchange for cash proceeds, and the Company continues to service the receivables for the purchasers. The Company accounts for the transfers of these receivables as a sale, removes (derecognizes) the carrying amount of the receivables from its balance sheets and classifies the proceeds received as cash flows from operating activities in the statements of cash flows. The Company records a loss on the sale of these receivables reflecting the net proceeds received (net of any obligations incurred), less the carrying amount of the receivables transferred. The loss is reflected in the "other expense" line item on the unaudited condensed consolidated statements of operations. The Company receives fees for servicing the accounts receivable for the purchasers, which represent the fair value of the services and were immaterial for the three and ninesix months ended December 31, 2020September 30, 2021 and 2019.2020.
 
Individual Monetization Agreements. The Company enters into individual agreements to monetize trade accounts receivable. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the customers. The following table sets forth a summary of the receivables transferred under individual agreements or purchases during the three and ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
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LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Carrying value of receivables transferred and derecognizedCarrying value of receivables transferred and derecognized$353.2 $448.8 $1,008.3 $1,279.2 Carrying value of receivables transferred and derecognized$407.2 $341.8 $747.6 $655.0 
Net cash proceeds receivedNet cash proceeds received351.5 446.5 1,004.3 1,270.8 Net cash proceeds received404.9 341.2 743.4 652.9 
Loss recorded related to transfers of receivablesLoss recorded related to transfers of receivables1.7 2.3 3.9 8.4 Loss recorded related to transfers of receivables2.3 0.6 4.2 2.1 

At December 31, 2020,September 30, 2021, the outstanding amount of receivables derecognized from the Company's unaudited condensed consolidated balance sheets, but which the Company continues to service, related to the Company's individual agreements to monetize trade accounts receivable was $540.9$532.4 million (March 31, 20202021 - $529.8$562.8 million).

Pooled Monetization Agreement. In December 2019, the Company entered into a revolving agreement, as amended in July 2021, to transfer up to $150.0 million of certain receivables to various financial institutions on a recurring basis in exchange for cash equal to the gross receivables transferred.transferred, which expires July 27, 2022. As customers pay their balances, the Company transfers additional receivables into the program. The transferred receivables are fully guaranteed by a bankruptcy-remote wholly-owned subsidiary of the Company, which holds additional receivables in the amount of $44.0$60.8 million as of December 31, 2020September 30, 2021 that are pledged as collateral under this agreement. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the customers.

The following table sets forth a summary of the receivables transferred under the pooled monetization agreement during the three and ninesix months ended December 31,September 30, 2021 and 2020:
Three Months EndedNine Months EndedThree Months EndedSix Months Ended
December 31,December 31,September 30,September 30,
20202019202020192021202020212020
(Amounts in millions) (Amounts in millions)
Gross cash proceeds received for receivables transferred and derecognizedGross cash proceeds received for receivables transferred and derecognized$40.8 $111.3 $126.8 $111.3 Gross cash proceeds received for receivables transferred and derecognized$52.3 $33.7 $91.4 $86.0 
Less amounts from collections reinvested under revolving agreementLess amounts from collections reinvested under revolving agreement(32.5)(19.7)(107.4)(19.7)Less amounts from collections reinvested under revolving agreement(34.6)(33.7)(63.9)(75.0)
Proceeds from new transfersProceeds from new transfers8.3 91.6 19.4 91.6 Proceeds from new transfers17.7 — 27.5 11.0 
Collections not reinvested and remitted or to be remittedCollections not reinvested and remitted or to be remitted(11.5)(13.5)(25.8)(13.5)Collections not reinvested and remitted or to be remitted(21.2)(3.9)(33.5)(14.3)
Net cash proceeds received$(3.2)$78.1 $(6.4)$78.1 
Net cash proceeds paid or to be paidNet cash proceeds paid or to be paid$(3.5)$(3.9)$(6.0)$(3.3)
Carrying value of receivables transferred and derecognized (1)
Carrying value of receivables transferred and derecognized (1)
$40.4 $110.9 $126.0 $110.9 
Carrying value of receivables transferred and derecognized (1)
$51.7 $33.5 $90.7 $85.5 
Obligations recordedObligations recorded$0.7 $1.6 $1.4 $1.6 Obligations recorded$1.0 $0.2 $0.9 $0.6 
Loss recorded related to transfers of receivablesLoss recorded related to transfers of receivables$0.3 $1.3 $0.5 $1.3 Loss recorded related to transfers of receivables$0.4 $— $0.2 $0.2 
___________________
(1)Receivables net of unamortized discounts on long-term, non-interest bearing receivables.

At December 31, 2020,September 30, 2021, the outstanding amount of receivables derecognized from the Company's unaudited condensed consolidated balance sheet, but which the Company continues to service, related to the pooled monetization agreement was approximately $86.1$92.9 million (March 31, 20202021 - $92.5$99.0 million).


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LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


Accumulated Other Comprehensive Loss

The following table summarizes the changes in the components of accumulated other comprehensive loss, net of tax:
Foreign currency translation adjustmentsNet unrealized loss on cash flow hedgesTotal
(Amounts in millions)
March 31, 2020$(18.8)$(187.2)$(206.0)
Other comprehensive income5.6 30.3 35.9 
December 31, 2020$(13.2)$(156.9)$(170.1)
Foreign currency translation adjustmentsNet unrealized loss on cash flow hedgesTotal
(Amounts in millions)
March 31, 2021$(15.1)$(68.2)$(83.3)
Other comprehensive loss(1.0)(38.7)(39.7)
Reclassifications to net loss(1)
— 33.8 33.8 
September 30, 2021$(16.1)$(73.1)$(89.2)
March 31, 2020$(18.8)$(187.2)$(206.0)
Other comprehensive income (loss)0.8 (28.8)(28.0)
Reclassifications to net loss(1)
— 28.5 28.5 
September 30, 2020$(18.0)$(187.5)$(205.5)
___________________

(1)

Cash, Cash EquivalentsRepresents $0.4 million included in direct operating expense and Restricted Cash

There was 0 restricted cash$33.4 million included in interest expense on the unaudited condensed consolidated balance sheets asstatement of December 31,operations in the six months ended September 30, 2021 (six months ended September 30, 2020 or March 31, 2020.- $0.1 million included in direct operating expense and $28.4 million included in interest expense) (see Note 16).


Supplemental Cash Flow Information

Significant non-cash transactions during the ninesix months ended December 31,September 30, 2021 and 2020 include certain interest rate swap agreements, which are discussed in Note 16, "Derivative Instruments and Hedging Activities".

The supplemental schedule of non-cash investing and financing activities is presented below:
Nine Months EndedSix Months Ended
December 31,September 30,
2020201920212020
(Amounts in millions)(Amounts in millions)
Non-cash investing activities:Non-cash investing activities:Non-cash investing activities:
Decrease in finance lease right-of-use asset due to a reassessment event$(42.0)$
Accrued equity-method investmentAccrued equity-method investment$19.0 $— 
Decrease in finance lease right-of-use asset due to a reassessment event(1)
Decrease in finance lease right-of-use asset due to a reassessment event(1)
$— $(42.0)
Non-cash financing activities:Non-cash financing activities:Non-cash financing activities:
Decrease in finance lease liability due to a reassessment event$(48.6)$
Decrease in finance lease liability due to a reassessment event(1)
Decrease in finance lease liability due to a reassessment event(1)
$— $(48.6)
______________

(1)
Supplemental cash flow information relatedDuring the three months ended September 30, 2020, the Company reassessed the lease term of the Starz commercial building, which resulted in a change in classification of this lease from a finance lease to leases was as follows:
Nine Months Ended
December 31,
20202019
(Amounts in millions)
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases$14.2 $2.1 
Increase in right-of-use assets and lease liability due to a reassessment event:
Operating leases - increase in right-of-use assets$6.0 $
Operating leases - increase in lease liability$12.6 $

an operating lease.

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LIONS GATE ENTERTAINMENT CORP.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)


Supplemental cash flow information related to leases was as follows:
Six Months Ended
September 30,
20212020
(Amounts in millions)
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases$38.8 $10.4 
Increase in right-of-use assets and lease liability due to a reassessment event(1):
Operating leases - increase in right-of-use assets$— $6.0 
Operating leases - increase in lease liability$— $12.6 
______________
(1)During the three months ended September 30, 2020, the Company reassessed the lease term of the Starz commercial building, which resulted in a change in classification of this lease from a finance lease to an operating lease.


18. Subsequent Events

Termination of a Portion of Revolving Credit Facility Commitments. In JanuaryNovember 2021, certain subsidiaries of the Company (the “Borrowers”) entered into a senior securedterminated its revolving credit facility withcommitments under its 2023 Revolving Credit Facility, amounting to $250.0 million (the "Termination"). After giving effect to the lenders from timeTermination, the Company's remaining revolving credit commitments under its Credit Agreement amounted to time party thereto and MUFG Union Bank, N.A., as administrative agent, based on the Company’s tax credit receivables (the “Facility”). The maximum principal amount of the Facility is $120.0 million, subject to availability$1.25 billion under the borrowing base, which is based on specified percentages of amounts payable to the Borrowers by governmental authorities pursuant to the tax incentive laws of certain eligible jurisdictions that arise from the production or exploitation of motion pictures and television programming in such jurisdiction. Maximum capacity under the2026 Revolving Credit Facility may be increased to $200.0 million through the exercise by the Borrowers of an uncommitted accordion feature through which existing and new lenders may, at their option, agree to provide additional financing. Borrowings under the Facility shall bear interest at a rate equal to, at the Borrowers’ option, LIBOR plus 1.50% per annum or the base rate plus 0.50% per annum. The proceeds of the Facility shall be used to pay transaction fees, costs and interest associated with the Facility and the transactions contemplated thereby, and for repayment of debt and other general corporate purposes. The Facility is expected to mature on January 27, 2025.(see Note 5).

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Overview
Combining the STARZ premium global subscription platform with world-class motion picture and television studio operations, Lions Gate Entertainment Corp. (the “Company,” “Lionsgate,” "Lions Gate," “we,” “us” or “our”) brings a unique and varied portfolio of entertainment to consumers around the world. ItsOur film, television, subscription and location-based entertainment businesses are backed by a 17,000-title library and one of the largest collectioncollections of film and television franchises in the independent media space. A digital age company driven by its entrepreneurial culture and commitment to innovation, the Lionsgate brand is synonymous with bold, original, relatable entertainment for the audiences it serves worldwide. We classify our operations through three reporting segments: Motion Picture, Television Production, and Media Networks (see further discussion below).
Impact of COVID-19 Global Pandemic

The impacts associated with the ongoing COVID-19 global pandemic and measures to prevent its spread, and the resulting economic uncertainty, continue to affect our business in a number of ways. We continue to experiencehave experienced delays in theatrical distribution of our films, both domestically and internationally, as well as delays in the production of film and television content (resulting in continued changes in future release dates for some titles and series). While we have begun (and have, in certain instances, completed)continue production on a number of films and television series, and theaters have begun to reopen in certain locations with reduced capacity, we are not able to accurately predict when theaters will re-open at scale, at what level consumers will return to movie theaters when film production(and in turn, whether box office numbers will fully resume,return to pre-pandemic levels), whether productions that have resumed will be paused again, the impact of incremental costs required to adhere to new health and safety protocols, or if and when certain of our content will be released. The full extent of impacts related to the COVID-19 global pandemic on our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict. See Part I, Item 1A. “Risk Factors” found in our Annual Report on Form 10-K filed with the SEC on May 27, 2020,28, 2021, as updated by theany risk factors found under Part II, Item 1A. "Risk Factors" herein.

Conversely, television and streaming consumption around the globe continues to increase, as well as home entertainment demand. STARZ continues to achieve an increase in viewership of its content across all platforms as well as an increase in subscribers to its OTT services, both domestically and internationally. However, it is too early to say whether this increase is indicative of future results and whether growth may slow as governmental and other restrictions are relaxed, and as a result of the current and possible longer term negative economic impact of the pandemic. We continue, however, to adapt to these new circumstances. For instance, we have changed the release strategies of several of our theatrical films by releasing solely and/or earlier on streaming platforms, initially releasing in the premium video-on-demand ("Premium VOD") market, or by licensing directly to streaming platforms. We have also begun and completed post-production of a number of our television series and continue the development of film properties and television series.

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 most theaters, international travel restrictions and the pausing of motion picture and television productions, during the three and ninesix months ended December 31,September 30, 2021 and 2020 we have incurred $14.8 million and $54.3 million, respectively, inthe following incremental costs which were expensed in the period. These costs include $8.6 million and $36.6 million, respectively,period:
Three Months EndedSix Months Ended
September 30,September 30,
2021202020212020
 (Amounts in millions)
COVID-19 related charges (benefit) included in:
Direct operating expense(1)
$(1.0)$22.3 $0.5 $28.1 
Distribution and marketing expense(2)
0.2 6.1 0.3 10.7 
Restructuring and other(3)
0.5 0.3 0.8 0.8 
Total COVID-19 related charges (benefit)$(0.3)$28.7 $1.6 $39.6 
___________
(1)Amounts reflected in direct operating expense which include incremental costs associated with the pausing and restarting of productions including certain cast and crew, idle facilities and equipment costs, net of insurance recoveries, and in the ninethree and six months ended December 31,September 30, 2020, includethese amounts also included film impairment due to changes in performance expectationsexpectations. In the three months ended September 30, 2021, insurance recoveries exceeded the incremental costs expensed in the period, resulting from circumstances associated with the COVID-19 global pandemic. In addition, these costs include $5.4 million and $16.1 million, respectively,in a net benefit included in direct operating expense.
(2)Amounts reflected in distribution and marketing expense which primarily consistsconsist of contractual marketing spends for film releases and events that have been canceled or delayed and will provide no economic benefit, and $0.8 million and $1.6 millionbenefit.
(3)Amounts reflected in restructuring and other for the three and six months ended September 30, 2021 represent primarily incremental costs required to adhere to health and safety protocols and other incremental costs associated with the COVID-19 global pandemic. In the three and six months ended September 30, 2020, these costs were primarily duerelated to transitioning the Company to a remote-work environment and other incremental costs associated with the COVID-19 global pandemic during these periods. pandemic.

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We expect to incur additional incremental costs in future periods. However, if the adverse economic impact and disruptions associated with the COVID-19 global pandemic continue to improve, we expect that the incremental costs we incur in fiscal 2022 will decrease as compared to fiscal 2021. We are in the process of seeking additional insurance recovery for some of these costs, whichcosts. The ultimate amount of insurance recovery cannot be estimated at this time, and therefore no material amounts of insurance proceeds have been recorded in our consolidated financial statements.time. See further discussion in the Results of Operations section below.

The economic impact of the COVID-19 global pandemic and resulting societal changes will depend on numerous evolving factors that cannot be predicted with certainty. There are a number of ways in which these uncertainties resulting from the
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COVID-19 global pandemic have impacted our current results of operations and could continue to impact our future results of operations. These impacts include the incremental costs and losses discussed in the previous paragraph, lower revenues from the closure or reopenings of movie theaters and postponement of theatrical releases, partially offset by lower theatrical production and marketing costs;costs, or lower box office revenues from pre-pandemic levels due to shifts in viewing; increased expenses associated with new health and safety protocols on motion picture and television productions; changes in the timing of revenues for motion pictures and television productions associated with delays in production and delivery or release; and while STARZ has experienced an increase in viewership in the prior year of its content, future growth could be impacted by the timing of when productions will fully resume, and whether productions that have resumed will be paused again.again, and future consumer viewing patterns as the pandemic eases.

We expect that the ultimate impact of these disruptions, including the extent of any adverse impact on our business, results of operations and financial condition, will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the effectiveness of actions taken to contain or mitigate the outbreak (including the availability, effectiveness and/or public acceptance of any U.S. Food and Drug Administration ("FDA")-approved COVID-19 vaccines), and global economic conditions related to the COVID-19 global pandemic. All of these impacts could place limitations on our ability to execute on our business plan and materially and adversely affect our business, financial condition and results of operations. We have implemented policies, procedures and protocols to address the situation and expect to continue to adjust our current policies and procedures as more information and guidance become available. In addition, recent resurgences of COVID-19 in certain parts of the world, including the United States and parts of Europe, and the discovery and spread of new variants of the virus, have resultedmay result in the re-imposition of certain restrictions and may lead to more restrictions being implemented again to reduce the spread of COVID-19. These measures could result in further interruptions to our operations. Due to the evolving and uncertain nature of this situation, we are not able to estimate the full extent of the impact on our operating results, cash flows and financial position, particularly over the near to medium term.
Revenues
Our revenues are derived from the Motion Picture, Television Production and Media Networks segments, as described below. Our revenues are derived from the U.S., Canada, the United Kingdom and other foreign countries. None of the non-U.S. countries individually comprised greater than 10% of total revenues for the three and ninesix months ended December 31, 2020September 30, 2021 and 2019.2020.
Motion Picture
Our Motion Picture segment includes revenues derived from the following:
Theatrical. Theatrical revenues are derived from the domestic theatrical release of motion pictures licensed to theatrical exhibitors on a picture-by-picture basis (distributed by us directly in the U.S. and through a sub-distributor in Canada). The revenues from Canada are reported net of distribution fees and release expenses of the Canadian sub-distributor. The financial terms that we negotiate with our theatrical exhibitors in the U.S. generally provide that we receive a percentage of the box office resultsresults.
Home Entertainment. Home entertainment revenues are derived from the sale or rental of our film productions and acquired or licensed films and certain television programs (including theatrical and direct-to-video releases) on packaged media and through digital media platforms (including pay-per-view and video-on-demand platforms, electronic sell through, and digital rental). In addition, we have revenue sharing arrangements with certain digital media platforms which generally provide that, in exchange for a nominal or no upfront sales price, we share in the rental or sales revenues generated by the platform on a title-by-title basis.
Television. Television revenues are primarily derived from the licensing of our theatrical productions and acquired films to the linear pay, basic cable and free television markets.
International. International revenues are derived from (1) licensing of our productions, acquired films, our catalog product and libraries of acquired titles to international distributors, on a territory-by-territory basis; and (2) the direct
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distribution of our productions, acquired films, and our catalog product and libraries of acquired titles in the United Kingdom.
Other. Other revenues are derived from, among others, the licensing of our film and television and related content (games, music, location-based entertainment royalties, etc.) to other ancillary markets.
Television Production
Our Television Production segment includes revenues derived from the following.
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Television. Television revenues are derived from the licensing to domestic markets (linear pay, basic cable, free television and syndication) of scripted and unscripted series, television movies, mini-series and non-fiction programming. Television revenues include fixed fee arrangements as well as arrangements in which we earn advertising revenue from the exploitation of certain content on television networks. Television revenues also include revenue from licenses to subscription-video-on-demand ("SVOD") platforms in which the initial license of a television series is to an SVOD platform.
International. International revenues are derived from the licensing and syndication to international markets of scripted and unscripted series, television movies, mini-series and non-fiction programming.
Home Entertainment. Home entertainment revenues are derived from the sale or rental of television production movies or series on packaged media and through digital media platforms.
Other. Other revenues are derived from, among others, the licensing of our television programs to other ancillary markets, the sales and licensing of music from the television broadcasts of our productions, and from commissions earned and executive producer fees related to talent management.
Media Networks
Our Media Networks segment includes revenues derived from the following:
Starz Networks. Starz Networks’ revenues are derived from the domestic distribution of our STARZ branded premium subscription video services through our over-the-top ("OTT") service,platforms and U.S. multichannel video programming distributors (“MVPDs”) including cable operators, satellite television providers and telecommunications companies (collectively, “Distributors”) pursuant to affiliation agreements,, and on a direct-to-consumer basis through ourthe Starz App.
STARZPLAY International. STARZPLAY International revenues are primarily derived from OTT distribution of the Company's STARZ branded premium subscription video services internationally.outside of the U.S.
Other Streaming Services.Through March 31, 2021, our Media Networks segment also included revenues derived from Other Streaming Services, which represented revenues are derived primarily from our formerly majority owned premium Spanish language streaming services business, Pantaya, which includesincluded subscriber based streaming revenue and other distribution revenue. We sold our interest in Pantaya on March 31, 2021, for approximately $123.6 million in cash, subject to certain customary adjustments pursuant to the terms of the agreement. Under the terms of the purchase agreement, control of Pantaya transferred to Hemisphere Media Group on March 31, 2021, with the cash consideration transferred on April 1, 2021. See Note 2 to our unaudited condensed consolidated financial statements for further information.
Expenses
Our primary operating expenses include direct operating expenses, distribution and marketing expenses and general and administration expenses.
Direct operating expenses include amortization of film and television production or acquisition costs, amortization of programming production or acquisition costs and programming related salaries, participation and residual expenses, provision for doubtful accounts, and foreign exchange gains and losses.
Participation costs represent contingent consideration payable based on the performance of the film or television program to parties associated with the film or television program, including producers, writers, directors or actors. Residuals represent amounts payable to various unions or “guilds” such as the Screen Actors Guild - American Federation of Television and Radio Artists, Directors Guild of America, and Writers Guild of America, based on the performance of the film or television program in certain ancillary markets or based on the individual’s (i.e., actor, director, writer) salary level in the television market.
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Distribution and marketing expenses primarily include the costs of theatrical prints and advertising (“P&A”) and of DVD/Blu-ray duplication and marketing. Theatrical P&A includes the costs of the theatrical prints delivered to theatrical exhibitors and the advertising and marketing cost associated with the theatrical release of the picture. DVD/Blu-ray duplication represents the cost of the DVD/Blu-ray product and the manufacturing costs associated with creating the physical products. DVD/Blu-ray marketing costs represent the cost of advertising the product at or near the time of its release or special promotional advertising. Marketing costs for Media Networks includes advertising, consumer marketing, distributor marketing support and other marketing costs. In addition, distribution and marketing costs includes our Media Networks segment operating costs for the direct-to-consumer service, transponder expenses and maintenance and repairs.
General and administration expenses include salaries and other overhead.


CRITICAL ACCOUNTING POLICIES
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AND ESTIMATES
The preparation of our financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The application of the following accounting policies, which are important to our financial position and results of operations, requires significant judgments and estimates on the part of management. As described more fully below, these estimates bear the risk of change due to the inherent uncertainty of the estimate. In some cases, changes in the accounting estimates are reasonably likely to occur from period to period. In addition, the evolving and uncertain nature of the COVID-19 global pandemic could materially impact our estimates, particularly those that require consideration of forecasted financial information, in the near to medium term. Accordingly, actual results could differ materially from our estimates. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations will be affected. We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. We believe that the following discussion addresses our most critical accounting policies, which are those that are most important to the portrayal of our financial condition and results of operations and require management's most difficult, subjective and complex judgments. For a summary of all of our accounting policies, including the accounting policies discussed below, see Note 1 to our audited consolidated financial statements in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on May 27, 2020.28, 2021.
Accounting for Films and Television Programs and Licensed Program Rights
Investment in FilmsCapitalized costs for films or television programs are amortized and tested for impairment based on whether the content is predominantly monetized individually or as a group.
Film and Television Programs:
General.Programs Monetized Individually. We capitalize costs of production and acquisition, including financing costs and production overhead, to investment in films and television programs, a portion of which are monetized individually (i.e., through domestic theatrical, home entertainment, television, international or other ancillary-market distribution), and a portion of which are monetized as part of a film group (i.e., primarily content internally produced by our Television Production segment for our Media Networks segment).
Recording Cost. Costs of acquiring and producing films and television programs and of acquired libraries are capitalized when incurred. For films and television programs produced by the Company, capitalized costs include all direct productionmonetized individually, film cost amortization, participations and financing costs, capitalized interest and production overhead. For acquired films and television programs, capitalized costs consist of minimum guarantee payments to acquire the distribution rights.
Amortization. residuals expense are based on management's estimates. Costs of acquiring and producing films and television programs and of acquired libraries that are monetized individually are amortized using the individual-film-forecast method, whereby these costs are amortized and estimated liabilities for participations and residuals costs are accrued inusing the proportion that current year’s revenue bears to management’s estimate of ultimate revenue atindividual-film-forecast method, based on the beginningratio of the current year expectedperiod's revenues to management’s estimated remaining total gross revenues to be recognized fromearned ("ultimate revenue"). Management's judgment is required in estimating ultimate revenue and the exploitation, exhibitioncosts to be incurred throughout the life of each film or saletelevision program.
Management estimates ultimate revenues based on historical experience with similar titles or the title genre, the general public appeal of the filmscast, audience test results when available, actual performance (when available) at the box office or television programs.in markets currently being exploited, and other factors such as the quality and acceptance of motion pictures or programs that our competitors release into the marketplace at or near the same time, critical reviews, general economic conditions and other tangible and intangible factors, many of which we do not control and which may change.
For investment in films and television programs monetized as a group, see further discussion below under Licensed Program Rights for a description of recording cost and amortization of costs monetized as a group.
Ultimate Revenue. Ultimatemotion pictures, ultimate revenue includes estimates over a period not to exceed ten years following the date of initial release of the motion picture. The most sensitive factor affecting our estimate of ultimate revenues for a film intended for theatrical release is the film's theatrical performance, as subsequent revenues from the licensing and sale in other markets have historically been highly correlated to its theatrical performance. After a film's release, our estimates of revenue from succeeding markets are revised based on historical relationships and an analysis of current market trends.
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For an episodic television series, the period over which ultimate revenues are estimated cannot exceed ten years following the date of delivery of the first episode, or, if still in production, five years from the date of delivery of the most recent episode, if later. The most sensitive factors affecting our estimate of ultimate revenues for a television series is whether the series will be ordered for a subsequent season and estimates of revenue in secondary markets other than the initial license fee. The initial estimate of ultimate revenue may include estimates of revenues outside of the initial license window (i.e., international, home entertainment and other distribution platforms) and are based on historical experience for similar programs (genre, duration, etc.) based on the estimated number of seasons. We regularly monitor the performance of each season, and evaluate whether impairment indicators are present (i.e., low ratings, cancellations or the season is not reordered), and based upon our review, we revise our estimates as needed and perform an impairment assessment if impairment indicators are present (see below).
For titles included in acquired libraries, ultimate revenue includes estimates over a period not to exceed twenty years following the date of acquisition.
Due to the inherent uncertainties involved in making such estimates of ultimate revenues and expenses, these estimates have differed in the past from actual results and are likely to differ to some extent in the future from actual results. In addition, in the normal course of our business, some films and titles are more successful or less successful than anticipated. Management regularly reviews and revises when necessary its ultimate revenue and cost estimates, which may result in a change in the rate of amortization of film costs and participations and residuals and/or a write-down of all or a portion of the unamortized costs of the film or television program to its estimated fair value (see below). Management estimates the ultimate revenue based on experience with similar titles or title genre, the general public appeal of the cast, audience test results when available, actual performance (when available) at the box office or in markets currently being exploited, and other factors such as the quality and acceptance of motion pictures or programs that our competitors release into the marketplace at or near the same time, critical reviews, general economic conditions and other tangible and intangible factors, many of which we do not control and which may change.
An increase in the estimate of ultimate revenue will generally result in a lower amortization rate and, therefore, less film and television program amortization expense, while a decrease in the estimate of ultimate revenue will generally result in a higher amortization rate and, therefore, higher film and television program amortization expense, and also periodically results in an impairment requiring a write-down of the film cost to the title’s fair value. These write-downs are included in amortization
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expense within direct operating expenses in our consolidated statements of operations. See further discussion below under Impairment Assessment for Investment in Films.
Film and Television Programs and Licensed Program RightsMonetized as a Group. .

Licensed Program Rights:
General. Licensed program rights include content licensed from third parties that is monetized as part of a film group for distribution on Media Networks distribution platforms. Licensed content is comprised of films or series that have been previously produced by third parties and the Company retains specified airing rights over a contractual term. Program licenses typically have fixed terms and require payments during the term of the license.
Recording Cost. The cost of licensed content is capitalized when the cost is known or reasonably determinable, the license period for programs has commenced, the program materials have been accepted by the Company in accordance with the license agreements, and the programs are available for the first showing. Licensed programming rights may include rights to more than one exploitation window under the Company's output and library agreements. For films with multiple windows, the license fee is allocated between the windows based upon the proportionate estimated fair value of each window which generally results in the majority of the cost allocated to the first window on newer releases. Certain license agreements and productions may include additional ancillary rights in addition to the pay television rights. The cost of the Media Networks’ third-party licensed content and produced content is allocated between the pay television market distributed by the Media Networks’ segment and the ancillary revenue markets (e.g., home video, digital platforms, international television, etc.) based on the estimated relative fair values of these markets. Our estimates of fair value for the pay television and ancillary markets and windows of exploitation involve uncertainty and management judgment. Programming costs vary due to the number of airings and cost of our original series, the number of films licensed and the cost per film paid under our output and library programming agreements.
Amortization. The cost of program rights for films and television programs (including original series) exhibited by the Media Networks segment are generally amortized on an accelerated or straight-line basis based on the anticipated number of exhibitions or expected and historical viewership patterns or the license period on a title-by-title or episode-by-episode basis. The number of exhibitions is estimated based on the number of exhibitions allowed in the agreement (if specified) and the expected usage of the content. Participations and residuals are expensed in line with the amortization of production costs.
Changes in management’s estimate of the anticipated exhibitions and viewership patterns of films and original series on our networks could result in the earlier recognition of our programming costs than anticipated. Conversely, scheduled exhibitions and expected viewership patterns may not capture the appropriate usage of the program rights in current periods which would lead to the write-off of additional program rights in future periods and may have a significant impact on our future results of operations and our financial position.
Impairment Assessment for Investment in Films and Television Programs and Licensed Program Rights:
General.Assessment. A film group or individual film or television program is evaluated for impairment when an eventevents or changechanges in circumstances indicatesindicate that the fair value of an individual film or film group is less than its unamortized cost. A film group representsIf the unit of account for impairment testing for a film or license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group is defined as the lowest level at which identifiable cash flows are largely independentresult of the cash flowsimpairment test indicates that the carrying value exceeds the estimated fair value, an impairment charge will then be recorded for the amount of other films and/or license agreements.the difference.
Content Monetized Individually.Estimate of Fair Value. For content that is predominantly monetized individually (primarily investment in film and television programs related to the Motion Picture and Television Production segments), whenever events or changes in circumstances indicate that the fair value of the individual film may be less than its unamortized costs, the unamortized costs of the individual film are compared to the estimated fair value of the individual film. The fair value is determined based on a discounted cash flow analysis of the cash flows directly attributable to the title. ToFor motion pictures intended for theatrical release, the extentdiscounted cash flow analysis used in the unamortized costs exceedimpairment evaluation prior to theatrical release is subjective as key inputs include estimates of future anticipated revenues, estimates of box office performance, which may differ from future actual results. These estimates are based in part on the fair value, an impairment charge is recorded for the excess.historical performance of similar films, test audience results when
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available, information regarding competing film releases, and critic reviews. See further discussion of Valuation Assumptions below.
For content that is predominantly monetized as a group (primarily licensed program rights in the Media Networks segment and internally produced programming, as discussed above), whenever events or changes in circumstances indicate that the fair value of the film group may be less than its unamortized costs, the aggregate unamortized costs of the group are compared tois determined based on the present value of the discounted cash flows of the group using the lowest level for which identifiable cash flows are independent of other produced and licensed content. The Company's film groups are generally aligned along the Company's networks and digital content offerings domestically (i.e., Starz Networks and, through March 31, 2021, Other Streaming Services) and by territory or groups of territories internationally, wherein content assets are shared across the various territories and therefore, the territory or group of territories is the film group. If the unamortized costs exceed the present value of discounted cash flows, an impairment charge is recorded for the excess and allocated to individual titles based on the relative carrying value of each title in the group.
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Valuation Assumptions. The discounted cash flow analysis includes cash flows estimates of ultimate revenue and costs as well as a discount rate (a Level 3 fair value measurement, see Note 7 to our unaudited condensed consolidated financial statements). The discount rate utilized in the discounted cash flow analysis is based on the weighted average cost of capital of the Company plus a risk premium representing the risk associated with producing a particular film or television program or film group. The fair value of any film costs associated with a film or television program that management plans to abandon is zero. Estimates of future revenue involve measurement uncertainty and it is therefore possible that reductions in the carrying value of investment in films and television programs may be required as a consequence of changes in management’s future revenue estimates.
Revenue Recognition. Our Motion Picture and Television Production segments generate revenue principally from the licensing of content in domestic theatrical exhibition, home entertainment (e.g., digital media and packaged media), television, and international market places. Our Media Networks segment generates revenue primarily from the distribution of our STARZ branded premium subscription video services and, through March 31, 2021, from our formerly majority owned premium Spanish language streaming services business, Pantaya, which includes subscriber based streaming revenue and other distribution revenue. We sold our interest in Pantaya on March 31, 2021, see Note 2 to our unaudited condensed consolidated financial statements for further information.
Our content licensing arrangements include fixed fee and minimum guarantee arrangements, and sales or usage based royalties. Our fixed fee or minimum guarantee licensing arrangements in the television, digital media and international markets may, in some cases, include multiple titles, multiple license periods (windows) with a substantive period in between the windows, rights to exploitation in different media, or rights to exploitation in multiple territories, which may be considered distinct performance obligations. When these performance obligations are considered distinct, the fixed fee or minimum guarantee in the arrangement is allocated to the title, window, media right or territory as applicable, based on estimates of relative standalone selling prices. The amounts related to each performance obligation (i.e., title, window, media or territory) are recognized when the content has been delivered, and the window for the exploitation right in that territory has begun, which is the point in time at which the customer is able to begin to use and benefit from the content.
Sales or usage based royalties represent amounts due to us based on the “sale” or “usage” of our content by the customer, and revenues are recognized at the later of when the subsequent sale or usage occurs, or the performance obligation to which some or all the sales or usage-based royalty has been allocated has been satisfied (or partially satisfied). Generally, when we license completed content (with standalone functionality, such as a movie, or television show), our performance obligation will be satisfied prior to the sale or usage. When we license intellectual property that does not have stand-alone functionality (e.g., brands, themes, logos, etc.), our performance obligation is generally satisfied in the same period as the sale or usage. The actual amounts due to us under these arrangements are generally not reported to us until after the close of the reporting period. We record revenue under these arrangements for the amounts due and not yet reported to us based on estimates of the sales or usage of these customers and pursuant to the terms of the contracts. Such estimates are based on information from our customers, historical experience with similar titles in that market or territory, the performance of the title in other markets and/or available data in the industry. While we believe these estimates are reasonable estimates of the amounts due under these arrangements, such estimated amounts could differ from the actual amounts to be subsequently reported by the customer, which could be higher or lower than our estimates, and could result in an adjustment to revenues in future periods.
Revenue from the theatrical release of feature films are treated as sales or usage-based royalties and recognized starting at the exhibition date and based on our participation in box office receipts of the theatrical exhibitor.
Digital media revenue sharing arrangements are recognized as sales or usage based royalties.
Revenue from the sale of physical discs (DVDs, Blu-ray or 4K Ultra HD), referred to as "Packaged Media", in the retail market, net of an allowance for estimated returns and other allowances, is recognized on the later of receipt by the customer or “street date” (when it is available for sale by the customer). We estimate reserves for Packaged Media returns based on previous returns experience, point-of-sale data available from certain retailers, current economic trends, and projected future sales of the
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title to the consumer based on the actual performance of similar titles on a title-by-title basis in each of the Packaged Media businesses. Factors affecting actual returns include, among other factors, limited retail shelf space at various times of the year, success of advertising or other sales promotions, and the near term release of competing titles. We believe that our estimates have been materially accurate in the past; however, due to the judgment involved in establishing reserves, we may have adjustments to our historical estimates in the future. Our estimate of future returns affects reported revenue and operating income. If we underestimate the impact of future returns in a particular period, then we may record less revenue in later periods when returns exceed the estimated amounts. If we overestimate the impact of future returns in a particular period, then we may record additional revenue in later periods when returns are less than estimated. An incremental change of 1% in our estimated sales returns rate (i.e., provisions for returns divided by gross sales of related product) for home entertainment products would have had an impact of approximately $0.4 million and $1.0 million, respectively, on our total revenue in the three and six months ended September 30, 2021 (2020 - $0.5 million and $1.0 million, respectively).
Revenue from commissions are recognized as such services are provided.
Media Networks revenues may be based on a fixed fee, subject to nominal annual escalations, or a variable fee (i.e., a fee based on number of subscribers who receive our networks or other factors). Media Networks programming revenue is recognized over the contract term based on the continuous delivery of the content to the distributor. The variable distribution fee arrangements represent sales or usage based royalties and are recognized over the period of such sales or usage by the Company's distributor, which is the same period that the content is provided to the distributor. Payments to distributors for marketing support costs for which Starz receives a discrete benefit are recorded as distribution and marketing costs, and payments to distributors for which Starz receives no discrete benefit are recorded as a reduction of revenue.
Goodwill and Indefinite-Lived Intangibles. At December 31, 2020,September 30, 2021, the carrying value of goodwill and indefinite-lived intangible assets was $2.8 billion and $250.0 million, respectively. Our indefinite-lived intangible assets consist of trade names primarily representing the estimated fair value of the Starz brand name determined in connection with the acquisition of Starz as
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of December 8, 2016. Goodwill is allocated to our reporting units, which are our operating segments or one level below our operating segments (component level). Reporting units are determined by the discrete financial information available for the component and whether that information is regularly reviewed by segment management. Components are aggregated into a single reporting unit if they share similar economic characteristics. Our reporting units for purposes of goodwill impairment testing, along with their respective goodwill balances at December 31, 2020,September 30, 2021, were Motion Picture (goodwill of $394 million), Media Networks (goodwill of $2.04$1.97 billion), and our Television (goodwill of $309 million) and Talent Management (goodwill of $93 million) businesses, both of which are part of our Television Production segment.
Goodwill and indefinite-lived intangible assets are not amortized but are reviewed for impairment each fiscal year or between the annual tests if an event occurs or circumstances change that indicates it is more-likely-than-not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value. We perform our annual impairment test as of January 1 in each fiscal year. A goodwill or indefinite-lived intangible asset impairment loss would be recognized for the amount that the carrying amount of a reporting unit, including goodwill or an indefinite-lived intangible asset, exceeds its fair value. An entity may perform a qualitative assessment of the likelihood of the existence of a goodwill or indefinite-lived intangible asset impairment. The qualitative assessment is an evaluation, based on all identified events and circumstances which impact the fair value of the reporting unit or indefinite-lived intangible asset, of whether or not it is more-likely-than-not that the fair value is less than the carrying value of the reporting unit or indefinite-lived intangible asset. If we believe that as a result of our qualitative assessment it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is greater than its carrying amount, a quantitative impairment test is not required but may be performed at the option of the Company. A quantitative assessment requires determining the fair value of our reporting units or indefinite-lived intangible assets. The determination of fair value requires considerable judgment and requires assumptions and estimates of many factors, including revenue and market growth, operating margins and cash flows, market multiples and discount rates.
In performing a quantitative assessment of goodwill, we determine the fair value of our reporting units by using a combination of discounted cash flow ("DCF") analyses and market-based valuation methodologies. The models rely on significant judgments and assumptions surrounding general market and economic conditions, short-term and long-term growth rates, discount rates, income tax rates, and detailed management forecasts of future cash flow and operating margin projections, and other assumptions, all of which are based on our internal forecasts of future performance as well as historical trends. The market-based valuation method utilizes EBITDA multiples from guideline public companies operating in similar industries and a control premium. The results of these valuation methodologies are weighted as to their relative importance and a single fair value is determined. The fair value of our reporting units is reconciled to the market value of our equity, determined based on the average prices of our common shares just prior to the period end. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions and factors. As a result, there can be no assurance that the estimates and assumptions made for purposes of the annual or interim goodwill impairment tests will prove to be an accurate prediction of the future.
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Goodwill Impairment Assessment:
For our annual goodwill impairment test for fiscal 2020,2021, due to the declineincrease in the market price of our common shares in the fourth quarter endedsince our most recent quantitative impairment assessment at March 31, 2020, which was significantly impacted by the economic uncertainty and market volatility resulting fromperformance of the COVID-19 global pandemic, we updated our quantitative impairment assessment for all of our reporting units as of March 31, 2020. The DCF analysis of fair values were determined primarily by discounting estimated future cash flows, which included perpetual nominal growth rates ranging from 1.5% to 4.0%, at a weighted average cost of capital (discount rate) ranging from 11.5% to 15%, which considered the risk of achieving the projected cash flows, including the risk applicable to the reporting unit, industry and market as a whole. Based on our annual quantitative impairment assessment for fiscal 2020, we determined that two of our reporting units (Television and Media Networks) were at risk for impairment.
We evaluated the sensitivity of our most critical assumptions used in the fair value analysis of our Television and Media Networks reporting units includingin fiscal 2021, and the discount rate, perpetual nominal growth rate and annual revenue growth rates. For our Television business reporting unit,improvement of overall economic conditions associated with the COVID-19 pandemic as compared to fiscal 2020, we determined that an increase in the discount rate of up to 3.3% would not have impacted the test results, assuming no changes to other factors. For our Media Networks reporting unit, we determined that an increase in the discount rate of up to 0.7% or a reduction of the perpetual nominal growth rate of up to 1.33% would not have impacted the test results, assuming no changes to other factors. We also performed a sensitivity analysis on annual revenue growth. We determined that a decrease in annual revenue growth by 0.5%qualitative assessment for our Television businessall reporting unit and 0.3% for our Media Networks reporting unit, and holding film cost spend and amortization the same and maintaining other expenses at the same percentageunits. This assessment included consideration of, revenue,but not limited to, the results would have triggered an impairment.of our most recent quantitative impairment test, consideration of macroeconomic conditions, industry and market conditions, performance and current and projected cash flows of our reporting units, and changes in our share price. Based upon our qualitative assessment, we concluded that it was more-likely-than-not that the fair value of our reporting units was greater than their carrying value.
During the three and ninesix months ended December 31, 2020,September 30, 2021, there were no events or circumstances that have changed that would have resulted in changes to the underlying key assumptions and judgments used in our goodwill impairment test, or that would indicate that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value.
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Management will continue to monitor all of its reporting units for changes in the business environment that could impact the recoverability of goodwill in future periods. The recoverability of goodwill is dependent upon the continued growth of revenue and cash flows from our business activities. Examples of events or circumstances that could result in changes to the underlying key assumptions and judgments used in our goodwill impairment tests, and ultimately impact the estimated fair value of our reporting units may include the duration of the COVID-19 global pandemic, its impact on the global economy and the creation and consumption of our content, and the timing of when remaining production can resume and remaining theaters can re-open; adverse macroeconomic conditions; volatility in the equity and debt markets which could result in higher weighted-average cost of capital; the commercial success of our television programming and our motion pictures; our continual contractual relationships with our customers; including our affiliate agreements of our Media Networks business; our subscriber growth rates domestically and internationally across our traditional and OTT platforms and changes in consumer behavior. While historical performance and current expectations have resulted in fair values of our reporting units in excess of carrying values, if our assumptions are not realized, it is possible that an impairment charge may need to be recorded in the future.
Indefinite-Lived Intangibles Other Than Goodwill Impairment Assessment:
For fiscal 2020,2021, we performed a qualitative impairment assessment of our indefinite-lived trade names. Based on the qualitative impairment assessment of our trade names, we concluded that it is more-likely-than-not that the fair value of our trade names was more than its carrying amount, and therefore our trade names were not considered at risk of impairment. This qualitative analysis considered the relative impact of market-specific and macroeconomic factors. The market-specific factors considered included recent projections of revenues and growth in OTT subscribers, both domestic and internationally, associated with the STARZ brand name. The Company also considered the macroeconomic impact including the uncertainty around the COVID-19 global pandemic, and the resulting uncertain long-term economic impact on discount rates and growth rates, as well as the impact from tax law changes inclusive of the reduction of the federal tax rate since the acquisition of Starz.
During the three and ninesix months ended December 31, 2020,September 30, 2021, there were no events or circumstances that have changed that would have resulted in changes to the underlying key assumptions and judgments used in our impairment assessment of our indefinite-lived trade names, or that would indicate that it is more-likely-than-not that the fair value of our indefinite-lived trade names is less than its carrying value.
Finite-Lived Intangible Assets. At December 31, 2020,September 30, 2021, the carrying value of our finite-lived intangible assets was approximately $1.36$1.26 billion. Our finite-lived intangible assets primarily relate to customer relationships associated with U.S. MVPDs, including cable operators, satellite television providers and telecommunications companies ("Traditional Affiliate"), which amounted to $1.35$1.25 billion. The amount of our customer relationship asset related to these Traditional Affiliate relationships reflects the estimated fair value of these customer relationships determined in connection with the acquisition of Starz on December 8, 2016, net of amortization recorded since the date of the Starz acquisition. Identifiable intangible assets with finite lives are amortized to depreciation and amortization expense over their estimated useful lives, ranging from 5 to 17 years. Through the quarter ended June 30, 2019, we amortized theThe Starz Traditional Affiliate customer relationships on a straight-line basisrelationship intangible asset is amortized in the proportion that current period revenues bear to management’s estimate of future revenue over 17the remaining estimated useful life of the asset, which results in greater amortization in the earlier years of the estimated useful life of the asset than the latter years.
Amortizable intangible assets are tested for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of the asset may not be recoverable. If a triggering event has occurred, an impairment analysis is required. The impairment test first requires a comparison of undiscounted future cash flows expected to be generated over the useful life of an asset to the carrying value of the asset. The impairment test is performed at the lowest level of cash flows associated with the asset. If the carrying value of the asset exceeds the undiscounted future cash flows, the asset would not be deemed to be recoverable. Impairment would then be measured as the excess of the asset’s carrying value over its fair value.
The Company monitors its finite-lived intangible assets and changes in the underlying circumstances each reporting period for indicators of possible impairments or a change in the useful life or method of amortization of our finite-lived intangible
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assets. DueDuring the fiscal year ended March 31, 2021, due to changes in the industry related to the migration from linear to OTT and direct-to-consumer consumption in the quarter ended September 30, 2019, the Company determined it was appropriate to change the pattern of amortization of its Traditional Affiliate customer relationship intangible asset. Accordingly, beginning in the quarter ended September 30, 2019, the Company has adopted an amortization method that reflects amortization in the proportion that current period revenues bear to management’s estimate of future revenue over the remaining estimated useful life of the asset. This method results in greater amortization in the earlier years of the estimated useful life of the asset than the latter years.
During the fiscal year ended March 31, 2020, due to industry factors discussed in the preceding paragraph and the economic uncertainty from the COVID-19 global pandemic, we performed an impairment analysis of our amortizable intangible assets. The impairment analysis requires a comparison of undiscounted future cash flows expected to be generated over the useful life of an asset to the carrying value of the asset. Based on our impairment analysis, the estimated undiscounted cash flows exceeded the carrying amount of the assets and therefore no impairment charge was required.
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During the three and ninesix months ended December 31, 2020,September 30, 2021, there were no events or circumstances that have changed that would indicate that the carrying amount of our finite-lived intangible assets may not be recoverable.
Determining whether an intangible asset is recoverable or impaired requires various estimates and assumptions, including whether events or circumstances indicate that the carrying amount of the asset may not be recoverable, determining estimates of future cash flows for the assets involved and, when applicable, the assumptions applied in determining fair value, including discount rates, growth rates, market risk premiums and other assumptions about the economic environment. Should the revenues from our Traditional Affiliate relationships decline more than the assumed attrition rates used in our current estimates, either as a result of decreases in subscriber rates or changes of the terms of our renewals of our Traditional Affiliate contracts, we may have indicators of impairment which could result in an impairment of our customer relationships intangible assets, or we may need to further shorten the useful life or adopt a more accelerated method of amortization both of which would increase the amount of amortization expense we record.
Sales Returns Allowance.Revenues are recorded net of estimated returns and other allowances. We estimate reserves for Packaged Media returns based on previous returns experience, point-of-sale data available from certain retailers, current economic trends, and projected future sales of the title to the consumer based on the actual performance of similar titles on a title-by-title basis in each of the Packaged Media businesses. Factors affecting actual returns include, among other factors, limited retail shelf space at various times of the year, success of advertising or other sales promotions, and the near term release of competing titles. We believe that our estimates have been materially accurate in the past; however, due to the judgment involved in establishing reserves, we may have adjustments to our historical estimates in the future. Our estimate of future returns affects reported revenue and operating income. If we underestimate the impact of future returns in a particular period, then we may record less revenue in later periods when returns exceed the estimated amounts. If we overestimate the impact of future returns in a particular period, then we may record additional revenue in later periods when returns are less than estimated. An incremental change of 1% in our estimated sales returns rate (i.e., provisions for returns divided by gross sales of related product) for home entertainment products would have had an impact of approximately $0.6 million and $1.6 million on our total revenue in the three and nine months ended December 31, 2020, respectively (2019 - $1.1 million and $2.7 million, respectively).
Income Taxes. We are subject to federal and state income taxes in the U.S., and in several foreign jurisdictions. We record deferred tax assets related to net operating loss carryforwards and certain temporary differences, net of applicable reserves in these jurisdictions. We recognize a future tax benefit to the extent that realization of such benefit is more likely than not on a jurisdiction-by-jurisdiction basis; otherwise, a valuation allowance is applied. In order to realize the benefit of our deferred tax assets, we will need to generate sufficient taxable income in the future in each of the jurisdictions which have these deferred tax assets. However, the assessment as to whether there will be sufficient taxable income in a jurisdiction to realize our net deferred tax assets in that jurisdiction is an estimate which could change in the future depending primarily upon the actual performance of our Company. We will be required to continually evaluate the more likely than not assessment that our net deferred tax assets will be realized, and if operating results deteriorate in a particular jurisdiction, we may need to record a valuation allowance for all or a portion of our deferred tax assets through a charge to our income tax provision. As of March 31, 2020,2021, we had a valuation allowance of $435.8$350.9 million against certain U.S. and foreign deferred tax assets that may not be realized on a more likely than not basis.
Our quarterly income tax benefit (provision)provision and our corresponding annual effective tax rate are based on expected income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate. For interim financial reporting, except in circumstances as described in the following paragraph, we estimate the annual effective tax rate based on projected taxable income for the full year and record a quarterly tax benefit (provision)provision in accordance with the expected annual effective tax rate. As the year progresses, we refine the estimates of the year’s taxable income as new information becomes available, including year-to-date financial results. This continual estimation process often results in a change to our expected annual effective tax rate for the year. When this occurs, we adjust our income tax benefit (provision)provision during the quarter in which the change in estimate occurs so that the year-to-date income tax benefit (provision)provision reflects the expected annual effective tax rate. Significant judgment is required in determining our expected annual effective tax rate and in evaluating our tax positions.
When a small change in our estimated pretax results would create a large change in our expected annual effective rate such that a reliable estimate of the expected annual effective tax rate cannot be made, as was the case for the three and nine months ended December 31, 2019, we calculate the income tax benefit (provision) using the cut-off method.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law, and has resulted in significant changes to the U.S. federal corporate tax law. Additionally, several state jurisdictions have enacted legislation to comply with federal changes and some foreign jurisdictions have enacted similar tax incentive legislation. The
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impact of the CARES Act to our current and deferred income tax expense as of December 31, 2020 was immaterial, however we are continuing to analyze the impact of these tax law changes to future periods.
Our effective tax rates differ from the federal statutory rate and are affected by many factors, including the overall level of pre-tax income (loss), the mix of our pre-tax income (loss) generated across the various jurisdictions in which we operate, any changes in tax laws and regulations in those jurisdictions, changes in uncertain tax positions, further interpretation and legislative guidance regarding the new CARES Act, changes in valuation allowances against our deferred tax assets, tax planning strategies available to us and other discrete items.
Consolidation and Other Investments. We consolidate entities in which we own more than 50% of the voting common stock and control operations and also variable interest entities for which we are the primary beneficiary. Investments in nonconsolidated affiliates in which we own more than 20% of the voting common stock or otherwise exercise significant influence over operating and financial policies, but not control of the nonconsolidated affiliate, are accounted for using the equity method of accounting. Investments in nonconsolidated affiliates in which we own less than 20% of the voting common stock, or do not exercise significant influence over operating and financial policies, are recorded at fair value using quoted market prices if the investment has a readily determinable fair value. If an equity investment's fair value is not readily determinable, we will recognize it at cost less any impairment, adjusted for observable price changes in orderly transactions in the investees' securities that are identical or similar to our investments in the investee. The unrealized gains and losses and the adjustments related to the observable price changes are recognized in net income (loss).
We regularly review our investments for impairment, including when the carrying value of an investment exceeds its market value and whether the decline in value is other-than-temporary. For investments accounted for using the equity method of accounting or equity investments without a readily determinable fair value, we evaluate information available (e.g., budgets, business plans, financial statements, etc.) in addition to quoted market prices, if any, in determining whether an other-than-temporary decline in value exists. Factors indicative of an other-than-temporary decline include recurring operating losses, credit defaults and subsequent rounds of financing at an amount below the cost basis of our investment. The estimation of fair value and whether an other-than-temporary impairment has occurred requires the application of significant judgment and future results may vary from current assumptions. As of December 31, 2020, our investments included investments in equity method investees of $30.4 million, and other investments of $2.1 million.
If we determine that an investment has sustained an other-than-temporary decline in its value, the investment is written down to its fair value by a charge to earnings. Factors that are considered by us in determining whether an other-than-temporary decline in value has occurred include (i) the market value of the security in relation to its cost basis, (ii) the financial condition of the investee, and (iii) our intent and ability to retain the investment for a sufficient period of time to allow for recovery in the market value of the investment.

Business Combinations.We account for our business combinations under the acquisition method of accounting. Identifiable assets acquired, liabilities assumed and any noncontrolling interest in the acquiree are recognized and measured as of the acquisition date at fair value. Goodwill is recognized to the extent by which the aggregate of the acquisition-date fair value of the consideration transferred and any noncontrolling interest in the acquiree exceeds the recognized basis of the identifiable assets acquired, net of assumed liabilities. Determining the fair value of assets acquired, liabilities assumed and noncontrolling interest requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates and asset lives among other items.

Recent Accounting Pronouncements

See Note 1 to the accompanying unaudited condensed consolidated financial statements for a discussion of recent accounting guidance.


RESULTS OF OPERATIONS

Three Months Ended December 31, 2020September 30, 2021 Compared to Three Months Ended December 31, 2019September 30, 2020
Consolidated Results of Operations
The following table sets forth our consolidated results of operations for the three months ended December 31,September 30, 2021 and 2020. The Media Networks segment results of operations for the three months ended September 30, 2020 and 2019:included our formerly majority owned premium Spanish language streaming services business, Pantaya (representing substantially all of Other
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Three Months Ended
December 31,Increase (Decrease)
20202019AmountPercent
 (Amounts in millions)
Revenues
Motion Picture$250.3 $473.9 $(223.6)(47.2)%
Television Production228.2 189.4 38.8 20.5 %
Media Networks406.2 382.4 23.8 6.2 %
Intersegment eliminations(48.3)(47.2)(1.1)2.3 %
Total revenues836.4 998.5 (162.1)(16.2)%
Expenses:
Direct operating459.3 594.6 (135.3)(22.8)%
Distribution and marketing176.2 279.1 (102.9)(36.9)%
General and administration115.6 108.7 6.9 6.3 %
Depreciation and amortization45.8 51.9 (6.1)(11.8)%
Restructuring and other2.4 3.7 (1.3)(35.1)%
Total expenses799.3 1,038.0 (238.7)(23.0)%
Operating income (loss)37.1 (39.5)76.6 (193.9)%
Interest expense(45.0)(48.7)3.7 (7.6)%
Interest and other income0.5 2.0 (1.5)(75.0)%
Other expense(2.1)(3.6)1.5 (41.7)%
Loss on extinguishment of debt— (1.4)1.4 (100.0)%
Equity interests loss(0.7)(4.6)3.9 (84.8)%
Loss before income taxes(10.2)(95.8)85.6 nm
Income tax provision(7.0)(2.0)(5.0)250.0 %
Net loss(17.2)(97.8)80.6 nm
Less: Net loss attributable to noncontrolling interest3.3 6.6 (3.3)(50.0)%
Net loss attributable to Lions Gate Entertainment Corp. shareholders$(13.9)$(91.2)$77.3 nm
Streaming Services). We sold our interest in Pantaya on March 31, 2021. See Note 2 to our unaudited condensed consolidated financial statements for further information.
Three Months Ended
September 30,Increase (Decrease)
20212020AmountPercent
 (Amounts in millions)
Revenues
Motion Picture$330.9 $257.6 $73.3 28.5 %
Television Production336.0 197.2 138.8 70.4 %
Media Networks384.7 388.3 (3.6)(0.9)%
Intersegment eliminations(163.8)(98.1)(65.7)67.0 %
Total revenues887.8 745.0 142.8 19.2 %
Expenses:
Direct operating483.2 366.8 116.4 31.7 %
Distribution and marketing216.9 166.7 50.2 30.1 %
General and administration110.0 118.8 (8.8)(7.4)%
Depreciation and amortization44.4 49.6 (5.2)(10.5)%
Restructuring and other3.5 13.4 (9.9)(73.9)%
Total expenses858.0 715.3 142.7 19.9 %
Operating income29.8 29.7 0.1 0.3 %
Interest expense(44.0)(45.7)1.7 (3.7)%
Interest and other income24.1 0.1 24.0 nm
Other expense(2.7)(0.7)(2.0)285.7 %
Loss on extinguishment of debt(0.4)— (0.4)n/a
Gain (loss) on investments1.5 (4.7)6.2 (131.9)%
Equity interests income (loss)0.4 (1.9)2.3 (121.1)%
Income (loss) before income taxes8.7 (23.2)31.9 nm
Income tax benefit (provision)(5.6)1.5 (7.1)nm
Net income (loss)3.1 (21.7)24.8 nm
Less: Net loss attributable to noncontrolling interest4.4 3.3 1.1 33.3 %
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders$7.5 $(18.4)$25.9 nm
_______________________
nm - Percentage not meaningful.
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Revenues. Consolidated revenues decreasedincreased in the three months ended December 31, 2020 primarilySeptember 30, 2021 due to a decreasean increase in Motion Picture revenues, which were negatively impacted by the COVID-19 global pandemic, partially offset by increased Television Production and Media Networks revenues.
With theaters mostly closed during the quarter due to circumstances associated with the COVID-19 global pandemic, Motion Picture revenue decreased primarily due to lower theatrical and international revenue. The decrease was also, to a lesser extent, due to lower home entertainment packaged media revenue due to fewer home entertainment releases in the quarter, and lower television revenue.
Television Production revenue increased due to higher home entertainment revenue and, to a lesser extent, increased international revenue. These increases wereMotion Picture revenues, partially offset by lower domestic televisiona slight decrease in Media Networks revenue and increased intersegment eliminations associated with higher Television Production revenues (a substantial portion of intersegment eliminations relates to Television Production revenue) for licenses of original series to Starz Networks and STARZPLAY International, both in the Media Networks segment.
Motion Picture revenue increased $73.3 million in the current quarter due to significanta greater number of theatrical and international releases as theaters have begun to reopen in certain locations with varying restrictions.
Television Production revenue inincreased $138.8 million due to increased intersegment revenues from the licensing of Starz original series, and a greater number of television episodes delivered to third-parties, as compared to the prior year's quarter from Housewhich was negatively impacted by the pausing of Payne.productions associated with the COVID-19 global pandemic.
The increase in Media Networks revenue wasdecreased $3.6 million due to a decrease of $13.3 million from the prior year's quarter which included revenue from Pantaya, which was sold on March 31, 2021 (reflecting substantially all of our former Other Streaming Services product line), and a slight decrease of $2.2 million at Starz Networks. These decreases were mostly offset by increased revenue acrossof $11.9 million at STARZPLAY International, Starz Networks and Other Streaming Services. International.
See further discussion in the Segment Results of Operations section below.
Direct Operating Expenses. Direct operating expenses by segment were as follows for the three months ended December 31, 2020September 30, 2021 and 2019:2020:
Three Months EndedThree Months Ended
December 31,September 30,
20202019Increase (Decrease)20212020Increase (Decrease)
Amount% of Segment RevenuesAmount% of Segment RevenuesAmountPercentAmount% of Segment RevenuesAmount% of Segment RevenuesAmountPercent
(Amounts in millions) (Amounts in millions)
Direct operating expensesDirect operating expensesDirect operating expenses
Motion PictureMotion Picture$136.6 54.6 %$222.9 47.0 %$(86.3)(38.7)%Motion Picture$153.0 46.2 %$108.6 42.2 %$44.4 40.9 %
Television ProductionTelevision Production182.6 80.0 178.3 94.1 4.3 2.4 %Television Production290.4 86.4 168.6 85.5 121.8 72.2 %
Media NetworksMedia Networks175.2 43.1 162.8 42.6 12.4 7.6 %Media Networks200.9 52.2 161.5 41.6 39.4 24.4 %
COVID-19 related chargesCOVID-19 related charges8.6 nm— nm8.6 n/aCOVID-19 related charges(1.0)nm22.3 nm(23.3)(104.5)%
OtherOther0.6 nm79.8 nm(79.2)(99.2)%Other0.6 nm1.2 nm(0.6)(50.0)%
Intersegment eliminationsIntersegment eliminations(44.3)nm(49.2)nm4.9 (10.0)%Intersegment eliminations(160.7)nm(95.4)nm(65.3)68.4 %
$459.3 54.9 %$594.6 59.5%$(135.3)(22.8)%$483.2 54.4 %$366.8 49.2 %$116.4 31.7 %
_______________________
nm - Percentage not meaningful.
Direct operating expenses decreasedincreased in the three months ended December 31, 2020, primarilySeptember 30, 2021 due to lowerhigher Television Production and Motion Picture revenue, and lower otherhigher Media Networks direct operating expense, related to certain programming and content charges in the prior year's quarter (as further described below). These decreases were partially offset by an increase from Media Networks andlower COVID-19 related charges (as further described below). The increase in Media NetworksTelevision Production direct operating expense was due to increases at Starz Networks from higher programming amortization in the current year's quarter, partially offset by lower direct operating expense at STARZPLAY International. In addition,the increase in intersegment eliminations, decreased slightly in the quarter,which primarily duerelate to lower Television Production revenue and direct operating costs associated with licenses of original series to Starz Networks and STARZPLAY International, both in the Media Networks segment. Media Networks direct operating expense increased due to increases at Starz Networks of $25.6 million and STARZPLAY International of $16.2 million. See further discussion in the Segment Results of Operations section below.

COVID-19 Related Charges. 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, during the three months ended December 31,September 30, 2021 and 2020, we incurred $8.6 million incertain incremental costs which were expensed in the periodperiods which are included in consolidated direct operating expense and are excluded from segment direct operating expense. These costs includeIn the three months ended September 30, 2021, the benefit included in direct operating expense of $(1.0) million represents insurance recoveries which were offset by incremental costs associated with 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 the three months ended September 30, 2020, the costs of $22.3 million include incremental costs associated with film impairment due to changes in performance expectations, the pausing and restarting of productions
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including certain cast and crew, idle facilities and equipment costs resulting from circumstances associated with the COVID-19 global pandemic. We expect to incur additional incremental costs in future periods. If the adverse economic impact and disruptions associated with the COVID-19 global pandemic continue to improve, we expect that the incremental costs we incur in fiscal 2022 will decrease as compared to fiscal 2021. We are in the process of seeking additional insurance recovery for some of these costs, whichcosts. The ultimate amount of insurance recovery cannot be estimated at this time, and therefore no material amounts of insurance proceeds have been recorded in our consolidated financial statements.time.

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Other. During the three months ended December 31, 2019, in connection with management changes, we implemented changes to our programming and broadcasting strategy including programming acquired or produced under prior management. As a result, we recorded certain programming and content charges of $74.0 million in the prior year's quarter, which are excluded from segment operating results, but included in direct operating expense in the unaudited condensed consolidated statement of operations and reflected in the "other" line item above. In addition, "other"Other direct operating expenses in the table above includes the amortization of the non-cash fair value adjustments on film and television assets associated with the application of purchase accounting related to recent acquisitions.

Distribution and Marketing Expenses. Distribution and marketing expenses by segment were as follows for the three months ended December 31, 2020September 30, 2021 and 2019:2020:
Three Months EndedThree Months Ended
December 31,Increase (Decrease)September 30,Increase (Decrease)
20202019AmountPercent20212020AmountPercent
(Amounts in millions) (Amounts in millions)
Distribution and marketing expensesDistribution and marketing expensesDistribution and marketing expenses
Motion PictureMotion Picture$37.5 $177.0 $(139.5)(78.8)%Motion Picture$53.4 $41.2 $12.2 29.6 %
Television ProductionTelevision Production6.6 6.7 (0.1)(1.5)%Television Production7.6 7.4 0.2 2.7 %
Media NetworksMedia Networks126.5 95.2 31.3 32.9 %Media Networks155.5 111.9 43.6 39.0 %
COVID-19 related chargesCOVID-19 related charges5.4 — 5.4 n/aCOVID-19 related charges0.2 6.1 (5.9)(96.7)%
OtherOther0.2 0.2 — — %Other0.2 0.1 0.1 100.0 %
$176.2 $279.1 $(102.9)(36.9)%$216.9 $166.7 $50.2 30.1 %
U.S. theatrical P&A and Premium VOD expense included in Motion Picture distribution and marketing expenseU.S. theatrical P&A and Premium VOD expense included in Motion Picture distribution and marketing expense$7.4 $120.9 $(113.5)(93.9)%U.S. theatrical P&A and Premium VOD expense included in Motion Picture distribution and marketing expense$21.5 $17.5 $4.0 22.9 %

Distribution and marketing expenses decreasedincreased in the three months ended December 31, 2020, primarilySeptember 30, 2021, due to a decrease in Motion Picture theatrical P&A, partially offset by increased Media Networks and Motion Picture distribution and marketing expense. The decrease in Motion Picture theatrical P&A was primarily impacted by the COVID-19 global pandemic and associated closure of theaters. The increase in Media Networks distribution and marketing expense was driven by increasesdue to an increase at Starz Networks of $34.7 million, and to a lesser extent, an increase at STARZPLAY International.International of $17.6 million, partially offset by a decrease of $8.7 million due to the prior year's quarter including distribution and marketing expense from Pantaya, which was sold on March 31, 2021 (reflecting substantially all of our former Other Streaming Services product line). The increase in Motion Picture distribution and marketing expense is due to increased home entertainment marketing cost and theatrical P&A expense as theaters have begun to reopen in certain locations with varying restrictions. See further discussion in the Segment Results of Operations section below.
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, during the three months ended December 31,September 30, 2021 and 2020, we incurred $5.4$0.2 million and $6.1 million, respectively, in costs primarily related to contractual marketing spends for film releases and events that have been canceled or delayed and thus will provide no economic benefit. These charges are excluded from segment operating results. We expect to incur additional incremental costs in future periods. If the adverse economic impact and disruptions associated with the COVID-19 global pandemic continue to improve, we expect that the incremental costs we incur in fiscal 2022 will decrease as compared to fiscal 2021.

General and Administrative Expenses. General and administrative expenses by segment were as follows for the three months ended December 31, 2020September 30, 2021 and 2019:2020:
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Three Months EndedThree Months Ended
December 31,Increase (Decrease) September 30,Increase (Decrease)
2020% of Revenues2019% of RevenuesAmountPercent 2021% of Revenues2020% of RevenuesAmountPercent
(Amounts in millions) (Amounts in millions)
General and administrative expensesGeneral and administrative expensesGeneral and administrative expenses
Motion PictureMotion Picture$26.2 $25.0 $1.2 4.8 %Motion Picture$22.7 $24.8 $(2.1)(8.5)%
Television ProductionTelevision Production9.5 10.1 (0.6)(5.9)%Television Production9.5 11.3 (1.8)(15.9)%
Media NetworksMedia Networks22.8 22.3 0.5 2.2 %Media Networks22.8 22.0 0.8 3.6 %
CorporateCorporate23.4 23.4 — — %Corporate24.5 27.1 (2.6)(9.6)%
81.9 9.8%80.8 8.1%1.1 1.4 %79.5 9.0%85.2 11.4%(5.7)(6.7)%
Share-based compensation expenseShare-based compensation expense19.3 16.3 3.0 18.4 %Share-based compensation expense19.7 22.1 (2.4)(10.9)%
Purchase accounting and related adjustmentsPurchase accounting and related adjustments14.4 11.6 2.8 24.1 %Purchase accounting and related adjustments10.8 11.5 (0.7)(6.1)%
Total general and administrative expensesTotal general and administrative expenses$115.6 13.8%$108.7 10.9%$6.9 6.3 %Total general and administrative expenses$110.0 12.4%$118.8 15.9%$(8.8)(7.4)%

General and administrative expenses increaseddecreased in the three months ended December 31, 2020,September 30, 2021, resulting from increasesdecreases in Corporate, Motion Picture and Media NetworksTelevision Production general and administrative expenses and increasesdecreases in share-based compensation expense and purchase accounting and related adjustments, partially offset by decreased Television Production general and administrative expenses.adjustments. See further discussion in the Segment Results of Operations section below.
Corporate general and administrative expenses were comparabledecreased $2.6 million, or 9.6%, primarily due to the prior year's quarter.a decrease in incentive based compensation and professional fees.
The increasedecrease in share-based compensation expense included in general and administrative expense in the three months ended December 31, 2020,September 30, 2021, as compared to the three months ended December 31, 2019September 30, 2020 is primarily due to an increase in the number of share-based payment awards incurringcompensation expense in the current quarter as compared to the prior year's quarter.quarter associated with the Company's incentive based compensation program. The following table reconciles this amount to total share-based compensation expense:
Three Months EndedThree Months Ended
December 31,September 30,
2020201920212020
(Amounts in millions) (Amounts in millions)
Share-based compensation expense by expense categoryShare-based compensation expense by expense categoryShare-based compensation expense by expense category
General and administrative expenseGeneral and administrative expense$19.3 $16.3 General and administrative expense$19.7 $22.1 
Restructuring and other(1)
Restructuring and other(1)
— 2.8 
Direct operating expenseDirect operating expense0.5 0.7 Direct operating expense0.5 0.5 
Distribution and marketing expenseDistribution and marketing expense0.2 0.2 Distribution and marketing expense0.2 0.2 
Total share-based compensation expenseTotal share-based compensation expense$20.0 $17.2 Total share-based compensation expense$20.4 $25.6 
_______________________
(1)Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements.

Purchase accounting and related adjustments represent the charge for the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. Purchase accounting and related adjustments increased $2.8decreased $0.7 million, or 24.1%6.1%, primarily due to the expense associated with the earned distributionsamortization of the discount related to 3 Arts Entertainment.Pilgrim Media Group in the prior year's quarter.
Depreciation and Amortization Expense. Depreciation and amortization of $45.8$44.4 million in the three months ended December 31, 2020September 30, 2021 decreased $6.1$5.2 million, from $51.9$49.6 million in the three months ended December 31, 2019.September 30, 2020 due to lower amortization expense related to our customer relationship intangible assets.
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Restructuring and Other. Restructuring and other decreased $1.3$9.9 million in the three months ended December 31, 2020September 30, 2021 as compared to the three months ended December 31, 2019,September 30, 2020, and includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable. Restructuring and other costs were as follows for the three months ended December 31,September 30, 2021 and 2020 and 2019 (see Note 13 to our unaudited condensed consolidated financial statements):
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Three Months EndedThree Months Ended
December 31,Increase (Decrease)September 30,Increase (Decrease)
20202019AmountPercent20212020AmountPercent
(Amounts in millions) (Amounts in millions)
Restructuring and other:Restructuring and other:Restructuring and other:
Severance(1)
Severance(1)
$0.9 $1.8 $(0.9)(50.0)%
Severance(1)
CashCash$1.3 $8.5 $(7.2)(84.7)%
Accelerated vesting on equity awards (see Note 11 to our unaudited condensed consolidated financial statements)Accelerated vesting on equity awards (see Note 11 to our unaudited condensed consolidated financial statements)— 2.8 (2.8)(100.0)%
Total severance costsTotal severance costs1.3 11.3 (10.0)(88.5)%
COVID-19 related charges(2)
COVID-19 related charges(2)
0.8 — 0.8 n/a
COVID-19 related charges(2)
0.5 0.3 0.2 66.7 %
Transaction and related costs(3)
Transaction and related costs(3)
0.7 1.9 (1.2)(63.2)%
Transaction and related costs(3)
1.7 1.8 (0.1)(5.6)%
$2.4 $3.7 $(1.3)(35.1)%$3.5 $13.4 $(9.9)(73.9)%
_______________________
(1)Severance costs in the three months ended December 31,September 30, 2021 and 2020 and 2019 were primarily related to restructuring activities in connection with cost-saving initiatives and recent acquisitions, and other cost-saving initiatives.acquisitions.
(2)During the three months ended December 31, 2020,September 30, 2021, the Company has incurred certain costs primarily related to incremental costs required to adhere to health and safety protocols and other incremental costs associated with the COVID-19 global pandemic. In the three months ended September 30, 2020, these costs were 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 three months ended December 31,September 30, 2021 and 2020 and 2019 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters.
Interest Expense. Interest expense of $45.0$44.0 million for the three months ended December 31, 2020September 30, 2021 decreased $3.7$1.7 million, from $48.7$45.7 million in the three months ended December 31, 2019,September 30, 2020, due to lower interest expense on the term loans partially offset by an increase in amortization of debt financing costs and other non-cash interest. The decrease in interest expense on the term loans is primarily due to reductions of the outstanding principal amounts from required and voluntary principal payments since the prior year's quarter ended December 31, 2019, and the lower LIBOR rate in the current quarter. The increase in amortization of debt financing costs and other non-cash interest is due to the amortization of unrealized losses in accumulated other comprehensive loss related to de-designated interest rate swaps which are being amortized to interest expense (see Note 16 to our unaudited condensed consolidated financial statements).Senior Notes. The following table sets forth the components of interest expense for the three months ended December 31, 2020September 30, 2021 and 2019:2020:
 
Three Months Ended
December 31,
20202019
 (Amounts in millions)
Interest Expense
Cash Based:
Revolving credit facilities$1.2 $1.9 
Term loans9.2 18.2 
5.875% Senior Notes7.7 7.7 
6.375% Senior Notes8.9 8.9 
Other(1)
5.9 8.3 
32.9 45.0 
Amortization of debt financing costs and other non-cash interest(2)
12.1 3.7 
Total interest expense$45.0 $48.7 
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Three Months Ended
September 30,
20212020
 (Amounts in millions)
Interest Expense
Cash Based:
Revolving credit facility$2.1 $1.0 
Term loans8.3 9.4 
Senior Notes13.8 16.4 
Other(1)
7.6 6.9 
31.8 33.7 
Amortization of debt financing costs and other non-cash interest(2)
12.2 12.0 
Total interest expense$44.0 $45.7 
_______________________
(1)Amounts include payments associated with the Company's interest rate swaps (see Note 16 to our unaudited condensed consolidated financial statements).
(2)Amounts include the amortization of unrealized losses in accumulated other comprehensive loss related to de-designated interest rate swaps which are being amortized to interest expense (see Note 16 to our unaudited condensed consolidated financial statements).
Interest and Other Income. Interest and other income of $24.1 million for the three months ended September 30, 2021 compared to interest and other income of $0.1 million for the three months ended September 30, 2020, due to insurance recoveries on prior shareholder litigation of $20.2 million and other gains in the current quarter (see Note 15 to our unaudited condensed consolidated financial statements).
Other Expense. Other expense of $2.1$2.7 million for the three months ended December 31, 2020September 30, 2021 compared to other expense of $3.6$0.7 million for the three months ended December 31, 2019,September 30, 2020, and represented the loss recorded related to our monetization of accounts receivable programs (see Note 17 to our unaudited condensed consolidated financial statements).
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Loss on Extinguishment of Debt. Loss on extinguishment of debt for the three months ended December 31, 2019 was $1.4September 30, 2021 of $0.4 million related to early repaymentsthe write-off of $101.9 million in principal outstanding on the Term Loan B, withdebt issuance costs. There was no comparable loss in the three months ended December 31,September 30, 2020. See Note 45 to our unaudited condensed consolidated financial statements.
Gain (Loss) on Investments. Gain on investments of $1.5 million for the three months ended September 30, 2021 represented other investment gains of $1.7 million, partially offset by $0.2 million of unrealized losses on equity securities. This compared to a loss on investments of $4.7 million for the three months ended September 30, 2020, which represented $5.0 million of impairments of equity securities without readily determinable fair values that were written down to their estimated fair value, partially offset by $0.3 million of unrealized gains on equity securities.
Equity Interests Loss.Income (Loss). Equity interests lossincome of $0.7$0.4 million in the three months ended December 31, 2020September 30, 2021 compared to equity interests loss of $4.6$1.9 million in the three months ended December 31, 2019.September 30, 2020 due to lower losses from our equity method investees in the current quarter.

Income Tax Provision.Benefit (Provision). We had an income tax provision of $7.0$5.6 million in the three months ended December 31, 2020,September 30, 2021, compared to an income tax provisionbenefit of $2.0$1.5 million in the three months ended December 31, 2019.September 30, 2020. Our income tax provisionbenefit (provision) differs from the federal statutory rate multiplied by pre-tax income (loss) due to the mix of our pre-tax income (loss) generated across the various jurisdictions in which we operate, changes in the valuation allowance against our deferred tax assets, and certain minimum taxes and foreign withholding taxes. Our income tax provision for the three months ended December 31,September 30, 2021 and 2020 was also impacted by interest accrual on uncertain tax benefits, and release of uncertain tax benefits due to the close of audits or expiration of statutory limitations. Our income tax benefit for the three months ended September 30, 2020 was also impacted by the change inrelease of uncertain tax benefits due to the close of audits or expiration of statutory limitations and additional settlements with tax authorities.limitations.

Net LossIncome (Loss) Attributable to Lions Gate Entertainment Corp. Shareholders. Net lossincome attributable to our shareholders for the three months ended December 31, 2020September 30, 2021 was $13.9$7.5 million, or basic and diluted net lossincome per common share of $0.06$0.03 on 220.8224.4 million weighted average common shares outstanding and diluted net income per common share of $0.03 on 228.5 weighted average common shares outstanding. This compares to net loss attributable to our shareholders for the three months
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ended December 31, 2019September 30, 2020 of $91.2$18.4 million, or basic and diluted net loss per common share of $0.42$0.08 on 218.0220.4 million weighted average common shares outstanding.

Segment Results of Operations
The segment results of operations presented below do not include the elimination of intersegment transactions which are eliminated when presenting consolidated results, and exclude items separately identified in the restructuring and other line item in the unaudited condensed consolidated statements of operations.
The Company's primary measure of segment performance is segment profit. Segment profit is defined as gross contribution (revenues, less direct operating and distribution and marketing expense) less segment general and administration expenses. Segment profit excludes, when applicable, corporate general and administrative expense, restructuring and other costs, share-based compensation, certain programming and content charges as a result of changes in management and associated programming and content strategy, and, when applicable, certain charges related to the COVID-19 global pandemic, and purchase accounting and related adjustments. The Company believes the presentation of segment profit is relevant and useful for investors because it allows investors to view segment performance in a manner similar to the primary method used by the Company's management and enables them to understand the fundamental performance of the Company's businesses. The reconciliation of segment profit to the Company's consolidated income (loss) before income taxes is presented in Note 14 to the unaudited condensed consolidated financial statements.
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Motion Picture
The table below sets forth Motion Picture gross contribution and segment profit for the three months ended December 31, 2020September 30, 2021 and 2019:2020:
Three Months Ended Three Months Ended
December 31,Increase (Decrease) September 30,Increase (Decrease)
20202019AmountPercent20212020AmountPercent
(Amounts in millions)(Amounts in millions)
Motion Picture Segment:Motion Picture Segment:Motion Picture Segment:
RevenueRevenue$250.3 $473.9 $(223.6)(47.2)%Revenue$330.9 $257.6 $73.3 28.5 %
Expenses:Expenses:Expenses:
Direct operating expenseDirect operating expense136.6 222.9 (86.3)(38.7)%Direct operating expense153.0 108.6 44.4 40.9 %
Distribution & marketing expenseDistribution & marketing expense37.5 177.0 (139.5)(78.8)%Distribution & marketing expense53.4 41.2 12.2 29.6 %
Gross contributionGross contribution76.2 74.0 2.2 3.0 %Gross contribution124.5 107.8 16.7 15.5 %
General and administrative expensesGeneral and administrative expenses26.2 25.0 1.2 4.8 %General and administrative expenses22.7 24.8 (2.1)(8.5)%
Segment profitSegment profit$50.0 $49.0 $1.0 2.0 %Segment profit$101.8 $83.0 $18.8 22.7 %
U.S. theatrical P&A and Premium VOD expense included in distribution and marketing expenseU.S. theatrical P&A and Premium VOD expense included in distribution and marketing expense$7.4 $120.9 $(113.5)(93.9)%U.S. theatrical P&A and Premium VOD expense included in distribution and marketing expense$21.5 $17.5 $4.0 22.9 %
Direct operating expense as a percentage of revenueDirect operating expense as a percentage of revenue54.6 %47.0 %Direct operating expense as a percentage of revenue46.2 %42.2 %
Gross contribution as a percentage of revenueGross contribution as a percentage of revenue30.4 %15.6 %Gross contribution as a percentage of revenue37.6 %41.8 %
Revenue. The table below sets forth Motion Picture revenue by media and product category for the three months ended December 31, 2020September 30, 2021 and 2019:2020:
 Three Months Ended December 31,
 20202019Total Increase (Decrease)
 
Feature Film(1)
Other Film(2)
Total
Feature Film(1)
Other Film(2)
Total
   (Amounts in millions)  
Motion Picture Revenue
Theatrical$1.5 $0.3 $1.8 $101.0 $8.0 $109.0 $(107.2)
Home Entertainment
Digital Media63.1 60.0 123.1 69.6 45.9 115.5 7.6 
Packaged Media17.1 19.3 36.4 42.4 33.0 75.4 (39.0)
Total Home Entertainment80.2 79.3 159.5 112.0 78.9 190.9 (31.4)
Television28.2 8.0 36.2 60.9 13.6 74.5 (38.3)
International27.8 20.2 48.0 68.4 27.7 96.1 (48.1)
Other3.1 1.7 4.8 2.1 1.3 3.4 1.4 
$140.8 $109.5 $250.3 $344.4 $129.5 $473.9 $(223.6)
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 Three Months Ended September 30,
 20212020Total Increase (Decrease)
 
Feature Film(1)
Other Film(2)
Total
Feature Film(1)
Other Film(2)
Total
   (Amounts in millions)  
Motion Picture Revenue
Theatrical$6.8 $9.2 $16.0 $— $— $— $16.0 
Home Entertainment
Digital Media68.9 60.9 129.8 55.6 60.5 116.1 13.7 
Packaged Media14.0 17.2 31.2 16.0 17.9 33.9 (2.7)
Total Home Entertainment82.9 78.1 161.0 71.6 78.4 150.0 11.0 
Television74.0 16.9 90.9 47.1 12.0 59.1 31.8 
International44.5 14.8 59.3 27.8 17.7 45.5 13.8 
Other1.9 1.8 3.7 2.1 0.9 3.0 0.7 
$210.1 $120.8 $330.9 $148.6 $109.0 $257.6 $73.3 
____________________
(1)Feature Film: Includes theatrical releases through our Lionsgate and Summit Entertainment film labels, which includes films developed and produced in-house, films co-developed and co-produced and films acquired from third parties.
(2)Other Film: Includes direct-to-DVD motion pictures, acquired and licensed brands, third-party library product and ancillary-driven platform theatrical releases through our specialty films distribution labels including Lionsgate Premiere, through Good Universe, and with our equity method investees, Roadside Attractions and Pantelion Films, and other titles.
With
Theatrical revenue increased $16.0 million in the three months ended September 30, 2021 as compared to the three months ended September 30, 2020 due to an increase of $9.2 million from our Other Film category, and an increase of $6.8 million from our Feature Film category (The Hitman's Wife's Bodyguard and The Protégé), as theaters mostlyhave begun to reopen in certain locations with varying restrictions. In the prior year's quarter, theaters were closed during the quarter due to circumstances associated with the COVID-19 global pandemic, theatricalpandemic.

Home entertainment revenue decreased $107.2increased $11.0 million, or 98.3%7.3%, in the three months ended December 31, 2020September 30, 2021, as compared to the three months ended December 31, 2019. The prior year'sSeptember 30, 2020, due to higher digital media revenues of $13.7 million driven by our Feature Film category, partially offset by slightly lower packaged media revenues of $2.7 million. Digital media revenues in our Feature Film category in the current quarter included significant revenue from Knives Out The Hitman's Wife's Bodyguardand, as compared to revenue from the premium video-on-demand ("Premium VOD") release of Antebellum Midwayin the prior year's quarter..
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Home entertainmentTelevision revenue decreased $31.4increased $31.8 million, or 16.4%53.8%, in the three months ended December 31, 2020,September 30, 2021, as compared to the three months ended December 31, 2019, primarily due to a decrease of $39.0 million in packaged media revenues from our fiscal 2021 theatrical slateSeptember 30, 2020, driven by an increase in our Feature Film category and decreases in our Other Film category. Digital media revenues this quarter includes revenues from the initial release on a streaming platform of Run, and$26.9 million due to a lesser extent, revenue from the Premium VOD releasegreater number ofAntebellum, both of which represented a change in initial release strategy from theatrical release due to circumstances associated with the COVID-19 global pandemic. In addition, the prior year's quarter included significant revenue from Angel Has Fallen, Rambo: Last Blood, and John Wick: Chapter 3 - Parabellum.
Television revenue decreased $38.3 million, or 51.4%, in the three months ended December 31, 2020, as compared to the three months ended December 31, 2019, due to fewer television windows opening (and revenue recognized) than in the prior year's quarter.
International revenue decreased $48.1increased $13.8 million, or 50.1%30.3%, in the three months ended December 31, 2020,September 30, 2021, as compared to the three months ended December 31, 2019September 30, 2020 driven by an increase in our Feature Film category of $16.7 million due to lowerhigher revenue from our fiscal 2021 and 2022 theatrical slateslates in the current quarter whichas theaters have begun to reopen in certain locations with varying restrictions. The prior year's quarter had no new significant theatrical releases due to circumstances associated with the COVID-19 global pandemic.
If the adverse economic impact and disruptions associated with the COVID-19 global pandemic as comparedcontinue to the revenue generated from our fiscal 2020 theatrical slate in the prior year's quarter, which included significant revenue from Knives Out and John Wick: Chapter 3 - Parabellum.
Weimprove, we currently expect that Motion Picture segment revenues will decreaseincrease in fiscal 20212022 as compared to fiscal 2020 due to delays in domestic and international theatrical distribution and production as a result of the closure of theaters and paused productions throughout the U.S., Canada, and worldwide due to circumstances associated with the COVID-19 global pandemic.2021. The extent of the impact onincrease, if any, to Motion Picture segment revenues, will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the continued effectiveness of actions taken to contain or mitigate the outbreak (including the availability, effectiveness and/or public acceptance of any FDA-approved COVID-19 vaccines), potential resurgences of COVID-19 in certain parts of the world, and the discovery and spread of new variants of the virus which could result in the re-imposition of certain restrictions and may lead to more restrictions being implemented again to reduce the spread of COVID-19, general global economic conditions, the ability forrate at which theaters are able to re-open at a scale, to attract motion pictures and the rate of consumers' return to the theater.theaters, and the impact of a potentially crowded marketplace from movies which are awaiting theatrical release in the market. The evolving and uncertain nature of the situation could result in
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further interruptions to our operations, including delays in domestic and international theatrical distribution and production and the pausing of productions, which could impact Motion Picture segment revenues.

Direct Operating Expense. The decreaseincrease in direct operating expenses is due to a decrease inhigher Motion Picture revenues.revenue, and to a lesser extent, due to higher direct operating expenses as a percentage of motion picture revenue. The slight increase in direct operating expenses as a percentage of motion picture revenue was driven by the change in the mix of titles and product categories generating revenue in the current quarter as compared to the prior year's quarter. TheIn particular, the increase was impacted by the higher amortization rate of the fiscal 2022 and 2021 theatrical slate titles generating revenue in the current quarter, as compared to the prior year's quarter, included significant revenue from Knives Out, John Wick: Chapter 3 - Parabellum, Angel Has Fallenwhich was impacted by the lower amortization rate of the fiscal 2019 and Rambo: Last Blood, and the current quarter had fewer theatrical releases and lower revenues from our fiscal 2021prior theatrical slate due to circumstances associated withtitles generating revenue in the COVID-19 global pandemic.prior year's quarter. Investment in film write-downs included in Motion Picture segment direct operating expense for the quarter were $13.7$0.1 million in the three months ended December 31, 2020,September 30, 2021, as compared to $37.2$0.3 million in the three months ended December 31, 2019.September 30, 2020.
Distribution and Marketing Expense. The decreaseincrease in distribution and marketing expense in the three months ended December 31, 2020September 30, 2021 is due to lowerincreased home entertainment distribution and marketing expense and theatrical P&A and Premium VOD expense associated withcompared to the prior year's quarter, which was impacted by the closure of theaters during the quarter due toas a result of circumstances associated with the COVID-19 global pandemic. Theatrical P&A and Premium VOD expense in the current quarter includes expense associated with the theatrical and Premium VOD release of pandemicFatale.. In the three months ended December 31, 2020,September 30, 2021, approximately $1.7$4.2 million of P&A and Premium VOD expense was incurred in advance for films to be released in subsequent quarters. Inquarters, compared to approximately $1.7 million in the three months ended December 31, 2019, approximately $7.0 million of P&A was incurredprior year's quarter in advance for films to be released in subsequent quarters, such as Barb and Star Go To Vista Del Mar and I Still Believe. the Motion Picture segment.
Gross Contribution. While Motion Picture revenue declined during the quarter as discussed above, grossGross contribution of the Motion Picture segment for the three months ended December 31, 2020September 30, 2021 increased 3.0% as compared to the three months ended December 31, 2019,September 30, 2020, due to lower distribution and marketingincreased revenue which was partially offset by slightly increased direct operating expense as a percentage of Motion Picture revenue.
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General and Administrative Expense. General and administrative expenses of the Motion Picture segment increased $1.2decreased $2.1 million, or 4.8%8.5%, primarily due to an increase in incentive compensation partially offset by decreases in salaries and related expenses, rent, facilitycompensation and travel and related expenses.incentive based compensation.
Television Production
The table below sets forth Television Production gross contribution and segment profit for the three months ended December 31, 2020September 30, 2021 and 2019:2020:
Three Months Ended Three Months Ended
December 31,Increase (Decrease) September 30,Increase (Decrease)
20202019AmountPercent20212020AmountPercent
(Amounts in millions)(Amounts in millions)
Television Production Segment:Television Production Segment:Television Production Segment:
RevenueRevenue$228.2 $189.4 $38.8 20.5 %Revenue$336.0 $197.2 $138.8 70.4 %
Expenses:Expenses:Expenses:
Direct operating expenseDirect operating expense182.6 178.3 4.3 2.4 %Direct operating expense290.4 168.6 121.8 72.2 %
Distribution & marketing expenseDistribution & marketing expense6.6 6.7 (0.1)(1.5)%Distribution & marketing expense7.6 7.4 0.2 2.7 %
Gross contributionGross contribution39.0 4.4 34.6 nmGross contribution38.0 21.2 16.8 79.2 %
General and administrative expensesGeneral and administrative expenses9.5 10.1 (0.6)(5.9)%General and administrative expenses9.5 11.3 (1.8)(15.9)%
Segment profitSegment profit$29.5 $(5.7)$35.2 nmSegment profit$28.5 $9.9 $18.6 187.9 %
Direct operating expense as a percentage of revenueDirect operating expense as a percentage of revenue80.0 %94.1 %Direct operating expense as a percentage of revenue86.4 %85.5 %
Gross contribution as a percentage of revenueGross contribution as a percentage of revenue17.1 %2.3 %Gross contribution as a percentage of revenue11.3 %10.8 %
________________________
nm - Percentage not meaningful.
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Revenue. The table below sets forth Television Production revenue and changes in revenue by media for the three months ended December 31, 2020September 30, 2021 and 2019:2020:
 
Three Months EndedThree Months Ended
December 31,Increase (Decrease) September 30,Increase (Decrease)
20202019AmountPercent 20212020AmountPercent
(Amounts in millions)  (Amounts in millions) 
Television Production RevenueTelevision Production RevenueTelevision Production Revenue
TelevisionTelevision$119.7 $144.2 $(24.5)(17.0)%Television$228.2 $116.7 $111.5 95.5 %
InternationalInternational26.0 17.4 8.6 49.4 %International57.0 47.9 9.1 19.0 %
Home EntertainmentHome EntertainmentHome Entertainment
DigitalDigital58.0 10.0 48.0 nmDigital33.2 15.9 17.3 108.8 %
Packaged MediaPackaged Media3.1 0.6 2.5 nmPackaged Media1.0 1.1 (0.1)(9.1)%
Total Home EntertainmentTotal Home Entertainment61.1 10.6 50.5 nmTotal Home Entertainment34.2 17.0 17.2 101.2 %
OtherOther21.4 17.2 4.2 24.4 %Other16.6 15.6 1.0 6.4 %
$228.2 $189.4 $38.8 20.5 %$336.0 $197.2 $138.8 70.4 %
________________________
nm - Percentage not meaningful.
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The primary component of Television Production revenue is domestic television revenue. Domestic television revenue decreasedincreased in the three months ended December 31, 2020September 30, 2021 as compared to the three months ended December 31, 2019, primarilySeptember 30, 2020, due to significant revenuean increase of $68.4 million from intersegment revenues driven by the licensing of Starz original series (Power Book III: Raising Kanan, Hightown Season 2, Heels Season 1, BMF Season 1 among others), and an increase of $43.3 million from a greater number of television episodes delivered to third-parties, both of which were negatively impacted in the prior year's quarter from Houseby disruptions associated with the COVID-19 global pandemic and the associated pausing of Payne.productions.
International revenue in the three months ended December 31, 2020September 30, 2021 increased $8.6$9.1 million, or 49.4%19.0%, primarily due to increased intersegment revenuesrevenue in the current quarter from STARZPLAY International from the licensing of Starz original series.Acapulco Season 1.
Home entertainment revenue in the three months ended December 31, 2020September 30, 2021 increased $50.5$17.2 million due to significant digital media revenue in the current quarter for Power Season 6 and Mad MenWeeds Seasons 1 to 7.- 8.
Other revenue includes revenue from 3 Arts Entertainment, which increased inIf the three months ended December 31, 2020 as compared to the three months ended December 31, 2019 driven by new producer feesadverse economic impact and back-end participations as production activity increased in the quarter. Revenue from 3 Arts Entertainment was negatively impacted in prior quarters as a result ofdisruptions associated with the COVID-19 global pandemic related disruptions. The extent of the future impact on other revenue of the COVID-19 global pandemic is uncertain and will depend on film and television productions and releases returningcontinue to and remaining at pre COVID-19 levels.
Weimprove, we currently expect that Television Production segment revenues will decreaseincrease in fiscal 20212022 as compared to fiscal 2020 due to delays in domestic and international distribution and production as a result of paused productions throughout the U.S., Canada, and worldwide due to circumstances associated with the COVID-19 global pandemic.2021. The extent of the impact of the COVID-19 global pandemic related disruptions onincrease, if any, to Television Production segment revenues, will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the continued effectiveness of actions taken to contain or mitigate the outbreak (including the availability, effectiveness and/or public acceptance of any FDA-approved COVID-19 vaccines), potential resurgences of COVID-19 in certain parts of the world, and the discovery and spread of new variants of the virus which could result in the re-imposition of certain restrictions and may lead to more restrictions being implemented again to reduce the spread of COVID-19, and general global economic conditions relatedconditions. The evolving and uncertain nature of the situation could result in further interruptions to our operations, including delays in domestic and international distribution and production throughout the COVID-19 global pandemic.U.S., Canada and worldwide, and the pausing of productions, which could impact Television Production segment revenues.
Direct Operating Expense. Direct operating expense of the Television Production segment in the three months ended December 31, 2020September 30, 2021 increased $4.3$121.8 million, or 2.4%.72.2% due to the increase in Television Production revenues. Direct operating expenses as a percentage of television production revenue decreased primarily due to the mix of titles generating revenueremained relatively consistent in the current quarter as compared to the prior year's quarter. In particular, the current quarter included significant revenue from higher margin television series, such as Mad Men, as compared to the prior year's quarter which included newer television programs, which typically result in higher amortization expenses in relation to revenues initially.
Gross Contribution. Gross contribution of the Television Production segment for the three months ended December 31, 2020September 30, 2021 increased as compared to the three months ended December 31, 2019,September 30, 2020, due to increased television production revenue and lower direct operating expenses as a percentage of television production revenue.
General and Administrative Expense. General and administrative expenses of the Television Production segment decreased $0.6$1.8 million, or 5.9%15.9%, primarily due to decreasesa decrease in rent, facility and travel and related costs.incentive based compensation.
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Media Networks
The table below sets forth Media Networks gross contribution and segment profit for the three months ended DecemberSeptember 30, 2021 and 2020.The Media Networks segment results of operations for the three months ended September 30, 2020 included our formerly majority owned premium Spanish language streaming services business, Pantaya (representing substantially all of our former Other Streaming Services product line). We sold our interest in Pantaya on March 31, 2020 and 2019.2021. See Note 2 to our unaudited condensed consolidated financial statements for further information.
 Three Months Ended
 December 31,Increase (Decrease)
20202019AmountPercent
(Amounts in millions)
Media Networks Segment:
Revenue$406.2 $382.4 $23.8 6.2 %
Expenses:
Direct operating expense175.2 162.8 12.4 7.6 %
Distribution & marketing expense126.5 95.2 31.3 32.9 %
Gross contribution104.5 124.4 (19.9)(16.0)%
General and administrative expenses22.8 22.3 0.5 2.2 %
Segment profit$81.7 $102.1 $(20.4)(20.0)%
Direct operating expense as a percentage of revenue43.1 %42.6 %
Gross contribution as a percentage of revenue25.7 %32.5 %
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 Three Months Ended
 September 30,Increase (Decrease)
20212020AmountPercent
(Amounts in millions)
Media Networks Segment:
Revenue$384.7 $388.3 $(3.6)(0.9)%
Expenses:
Direct operating expense200.9 161.5 39.4 24.4 %
Distribution & marketing expense155.5 111.9 43.6 39.0 %
Gross contribution28.3 114.9 (86.6)(75.4)%
General and administrative expenses22.8 22.0 0.8 3.6 %
Segment profit$5.5 $92.9 $(87.4)(94.1)%
Direct operating expense as a percentage of revenue52.2 %41.6 %
Gross contribution as a percentage of revenue7.4 %29.6 %

The following table sets forth the Media Networks segment profit by product line:
Three Months EndedThree Months Ended Three Months EndedThree Months Ended
December 31, 2020December 31, 2019 September 30, 2021September 30, 2020
Starz NetworksSTARZPLAY InternationalOther Streaming ServicesTotal Media NetworksStarz NetworksSTARZPLAY InternationalOther Streaming ServicesTotal Media NetworksStarz NetworksSTARZPLAY InternationalTotal Media NetworksStarz NetworksSTARZPLAY InternationalOther Streaming ServicesTotal Media Networks
(Amounts in millions)(Amounts in millions)
Media Networks Segment:Media Networks Segment:Media Networks Segment:
RevenueRevenue$375.3 $17.7 $13.2 $406.2 $367.6 $6.1 $8.7 $382.4 Revenue$358.6 $26.1 $384.7 $360.8 $14.2 $13.3 $388.3 
Expenses:Expenses:Expenses:
Direct operating expenseDirect operating expense148.3 23.8 3.1 175.2 128.4 32.6 1.8 162.8 Direct operating expense165.8 35.1 200.9 140.2 18.9 2.4 161.5 
Distribution & marketing expenseDistribution & marketing expense90.5 25.4 10.6 126.5 70.5 9.5 15.2 95.2 Distribution & marketing expense123.8 31.7 155.5 89.1 14.1 8.7 111.9 
Gross contributionGross contribution136.5 (31.5)(0.5)104.5 168.7 (36.0)(8.3)124.4 Gross contribution69.0 (40.7)28.3 131.5 (18.8)2.2 114.9 
General and administrative expensesGeneral and administrative expenses15.7 4.6 2.5 22.8 17.1 3.7 1.5 22.3 General and administrative expenses17.0 5.8 22.8 16.4 4.3 1.3 22.0 
Segment profitSegment profit$120.8 $(36.1)$(3.0)$81.7 $151.6 $(39.7)$(9.8)$102.1 Segment profit$52.0 $(46.5)$5.5 $115.1 $(23.1)$0.9 $92.9 

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Subscriber Data. The number of period-end service subscribers is a key metric to evaluate a non-ad supported subscription video service as a growing or decreasing subscriber base is a key indicator of the health of the overall business. Service subscribers may impact revenue differently depending on specific distribution agreements we have with our distributors which may include fixed fees, rates per basic video household or a rate per STARZ subscriber. The table below sets forth, for the periods presented, subscriptions to our Media Networks and STARZPLAY Arabia services.

The pro forma subscriber data as of December 31, 2019 reflects the number of subscribers as of December 31, 2019, adjusted to remove the estimated number of subscribers to MVPD video packages or MVPD bundles that include the Starz service for distributors who dropped or removed Starz from these highly distributed MVPD video packages or MVPD bundles. This is a key metric to show prior period subscribers on a comparable basis to December 31, 2020 quarter-end subscribers. An MVPD video package is an offering by our distributors to its customers of multiple distinct video networks or services for a single recurring price where there is no distinction of price on any one specific network. An MVPD bundle is an offering by our distributors to its customers of two or more distinct MVPD services, such as video, internet and phone, sold on a subscription basis to a consumer or subscriber for a single price, and may include additional premium channels, like STARZ, to promote the bundle offering. 
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Pro Forma
December 31,December 31,December 31,
202020192019
(Amounts in millions)
Domestic Subscribers
STARZ21.0 23.5 17.3 
Other Streaming Services(1)
0.9 0.6 0.6 
21.9 24.1 17.9 
International Subscribers
STARZPLAY International4.3 2.7 2.7 
STARZPLAY Arabia(2)
1.8 1.7 1.7 
6.1 4.4 4.4 
Total Domestic and International Subscribers28.0 28.5 22.3 
Subscribers by Platform:
Linear Subscribers13.4 19.9 13.7 
OTT Subscribers(3)
14.6 8.6 8.6 
Total Global Subscribers28.0 28.5 22.3 
September 30,September 30,
20212020
(Amounts in millions)
Starz Domestic
Linear Subscribers10.2 11.5 
OTT Subscribers10.4 9.2 
Total20.6 20.7 
STARZPLAY International
Linear Subscribers1.8 1.9 
OTT Subscribers5.7 1.9 
Total7.5 3.8 
Total Starz
Linear Subscribers12.0 13.4 
OTT Subscribers16.1 11.1 
Total Starz28.1 24.5 
STARZPLAY Arabia(1)
1.9 1.8 
Total Domestic and International Subscribers(2)
30.0 26.3 
Subscribers by Platform:
Linear Subscribers12.0 13.4 
OTT Subscribers(2)(3)
18.0 12.9 
Total Global Subscribers(2)
30.0 26.3 
___________________
(1)Represents subscribers of our premium Spanish-language streaming service, Pantaya, which was launched in the quarter ended September 30, 2017.
(2)Represents subscribers of STARZPLAY Arabia, a non-consolidated equity method investee.
(2)Due to the March 31, 2021 sale of Pantaya, total domestic and international subscribers, OTT subscribers and total global subscribers amounts have been adjusted from amounts previously reported for September 30, 2020 to exclude Pantaya in order to be consistent with the presentation at September 30, 2021. Subscribers of Pantaya (all OTT) at September 30, 2020 amounted to 0.8 million.
(3)OTT subscribers includes subscribers of STARZPLAY Arabia, as presented above.

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Revenue. The increaseslight decrease in Media Networks' revenue of $3.6 million was drivendue to a decrease of $13.3 million due to the prior year's quarter including revenue from Pantaya (representing substantially all of Other Streaming Services), which was sold on March 31, 2021, and lower Starz Networks revenue of $2.2 million primarily due to declines in revenue from traditional linear services of $28.8 million, which were partially offset by higher OTT revenue resulting from increased subscriptions of $26.2 million. These decreases were partially offset by higher STARZPLAY International revenue of $11.6$11.9 million, increased Starz Networks revenue of $7.7 million and increased revenue from Other Streaming Services of $4.5 million. STARZPLAY International revenue increased as a result of subscriber and revenue growth in the international territories previously launched, and additional territories launched since December 31, 2019. Starz Networks' revenue increased as a result of higher OTT revenue resulting from increased subscriptions, which was partially offset by declines in revenue from traditional linear services.September 30, 2020.
As a result of events related to the COVID-19 global pandemic, television and streaming consumption around the globe continues to increase, as well as home entertainment demand. STARZ continues to achieve an increase in viewership of its content across all platforms as well as an increase in subscribers to its OTT services, both domestically and internationally. This increase in subscribers is dependent upon future economic conditions, our ability to deliver original content and may vary due to changes in consumer viewing and subscription patterns. However, it is too early to say whether this increase is indicative of future results and whether growth may slow as governmental and other restrictions are relaxed, and as a result of the current and possible longer term negative economic impact of the pandemic.
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During the three months ended December 31,September 30, 2021 and 2020, and 2019, the following original series premiered on STARZ:
Three Months Ended December 31, 2020*September 30, 2021Three Months Ended December 31, 2019September 30, 2020
Power Book III: Raising Kanan Season 1
P-Valley Season 1
Heels Season 1
Power Book II: Ghost Season 1
BMF - Black Mafia Family Season 1
Seduced: Inside the NXIVM CultDublin Murders
The Spanish Princess Season 2
Leavenworth
*In addition, while Power Book II: Ghost premiered in the three months ended September 30, 2020, the series returned with a mid-season premiere in December 2020.
Direct Operating and Distribution and Marketing Expenses. Direct operating and distribution and marketing expenses primarily represent programming cost amortization and advertising and marketing costs, respectively. The level of programming cost amortization and advertising and marketing costs and thus the gross contribution margin for the Media Networks' segment can fluctuate from period to period depending on the number of new original series and first-run output theatrical movies premiering on the network during the period. Programming cost amortization and advertising and marketing costs generally increase in periods where new original series premiere. In addition, the launch of the STARZPLAY international service has and will continue to result in an increase in expenses as the service continues to expand.
The increase in Media Networks direct operating expenses is due to higher direct operating expensesan increase of $25.6 million at Starz Networks, partially offset by lower direct operating expenseand an increase of $16.2 million at STARZPLAY International in the three months ended DecemberSeptember 30, 2021. These increases were partially offset by a decrease of $2.4 million due to the prior year's quarter including direct operating expense from Pantaya (representing substantially all of our former Other Streaming Services product line), which was sold on March 31, 2020.2021. The increase in Starz Networks direct operating expense was primarily due to higher programming cost amortization related to our Starz Originals andof $55.3 million due to a lesser extent, a benefit in the prior year's quarterhigher number of, $4.6and more expensive, series premieres, partially offset by lower programming amortization of $28.6 million associatedrelated to fewer theatrical releases under our programming output agreement with the modificationSony, and lower programming cost amortization of a content licensing arrangement, net of amortization for$3.3 million related changes in content availability and air dates.to our library content. Direct operating expenses at STARZPLAY International decreasedincreased as a result of write downs of programming cost in the three months ended December 31, 2019 and prior quarters, which reduced the cost being amortized in the current quarter, partially offset by the continued expansion of STARZPLAY International.
The increase in Media Networks distribution and marketing expense is due to an increase of $34.7 million at Starz Networks due to increased advertising and marketing due to increased spend to drive growth in our subscribers and increased spend on our Starz Originals, and an increase of $17.6 million at STARZPLAY International. Starz Networks'International due to increased advertising and marketing to drive growth in subscribers. These increases were partially offset by a decrease of $8.7 million due to the prior year's quarter including distribution and marketing expense increased due to increased marketing spend to drive subscriber growthfrom Pantaya (representing substantially all of our former Other Streaming Services product line), which was sold on the STARZ app and for Starz Original series during the three months ended DecemberMarch 31, 2020 as compared to the three months ended December 31, 2019. Distribution and marketing expense for STARZPLAY International increased due to an increase in advertising and marketing costs in order to drive subscriber growth in the international territories previously launched, and additional territories launched since December 31, 2019.2021.
Gross Contribution. The decrease in gross contribution of the Media Networks segment compared to the prior year's quarter was due to a decreasedecreases at Starz Networks due to increasedof $62.5 million and STARZPLAY International of $21.9 million driven by higher advertising and marketing expense and direct operating expenses and distribution and marketing expensesexpense as discussed above, which was partially offset by lower negative contributions from STARZPLAY International and Other Streaming Services.described above.
General and Administrative Expense. General and administrative expenses of the Media Networks segment in the three months ended December 31, 2020September 30, 2021 increased slightly from the prior year's quarter, driven by slightly increasedincreases at STARZPLAY International of $1.5 million and Starz Networks of $0.6 million, offset by a decrease of $1.3 million due to the prior year's quarter including general and administrative expenses for STARZPLAY International andexpense from Pantaya (representing substantially all of our former Other Streaming Services partially offset by a slight decrease in Starz Networks.product line), which was sold on March 31, 2021.


Nine
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Six Months Ended December 31, 2020September 30, 2021 Compared to NineSix Months Ended December 31, 2019September 30, 2020

Consolidated Results of Operations
The following table sets forth our consolidated results of operations for the ninesix months ended DecemberSeptember 30, 2021 and 2020. The Media Networks segment results of operations for the six months ended September 30, 2020 included our formerly majority owned premium Spanish language streaming services business, Pantaya (representing substantially all of Other Streaming Services). We sold our interest in Pantaya on March 31, 2020 and 2019:2021. See Note 2 to our unaudited condensed consolidated financial statements for further information.
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Nine Months EndedSix Months Ended
December 31,Increase (Decrease)September 30,Increase (Decrease)
20202019AmountPercent20212020AmountPercent
(Amounts in millions) (Amounts in millions)
RevenuesRevenuesRevenues
Motion PictureMotion Picture$788.6 $1,277.6 $(489.0)(38.3)%Motion Picture$622.1 $538.3 $83.8 15.6 %
Television ProductionTelevision Production621.0 743.2 (122.2)(16.4)%Television Production722.1 392.9 329.2 83.8 %
Media NetworksMedia Networks1,161.7 1,128.8 32.9 2.9 %Media Networks767.0 755.5 11.5 1.5 %
Intersegment eliminationsIntersegment eliminations(176.3)(203.9)27.6 (13.5)%Intersegment eliminations(322.2)(128.0)(194.2)151.7 %
Total revenuesTotal revenues2,395.0 2,945.7 (550.7)(18.7)%Total revenues1,789.0 1,558.7 230.3 14.8 %
Expenses:Expenses:Expenses:
Direct operatingDirect operating1,249.0 1,662.0 (413.0)(24.8)%Direct operating969.3 789.8 179.5 22.7 %
Distribution and marketingDistribution and marketing484.6 791.7 (307.1)(38.8)%Distribution and marketing434.5 308.5 126.0 40.8 %
General and administrationGeneral and administration343.3 317.3 26.0 8.2 %General and administration240.6 227.8 12.8 5.6 %
Depreciation and amortizationDepreciation and amortization142.9 143.0 (0.1)(0.1)%Depreciation and amortization87.8 97.1 (9.3)(9.6)%
Restructuring and otherRestructuring and other18.9 16.8 2.1 12.5 %Restructuring and other6.7 16.4 (9.7)(59.1)%
Total expensesTotal expenses2,238.7 2,930.8 (692.1)(23.6)%Total expenses1,738.9 1,439.6 299.3 20.8 %
Operating incomeOperating income156.3 14.9 141.4 949.0 %Operating income50.1 119.1 (69.0)(57.9)%
Interest expenseInterest expense(135.2)(145.7)10.5 (7.2)%Interest expense(85.7)(90.2)4.5 (5.0)%
Interest and other incomeInterest and other income2.2 7.0 (4.8)(68.6)%Interest and other income28.0 1.8 26.2 nm
Other expenseOther expense(4.5)(9.7)5.2 (53.6)%Other expense(4.3)(2.3)(2.0)87.0 %
Loss on extinguishment of debtLoss on extinguishment of debt— (1.4)1.4 (100.0)%Loss on extinguishment of debt(27.1)— (27.1)n/a
Gain (loss) on investments0.3 (0.3)0.6 nm
Equity interests loss(5.1)(15.7)10.6 (67.5)%
Gain on investmentsGain on investments1.5 0.4 1.1 275.0 %
Equity interests income (loss)Equity interests income (loss)1.1 (4.5)5.6 (124.4)%
Income (loss) before income taxesIncome (loss) before income taxes14.0 (150.9)164.9 (109.3)%Income (loss) before income taxes(36.4)24.3 (60.7)(249.8)%
Income tax provision(6.7)(6.5)(0.2)3.1 %
Income tax benefit (provision)Income tax benefit (provision)(12.1)0.2 (12.3)nm
Net income (loss)Net income (loss)7.3 (157.4)164.7 (104.6)%Net income (loss)(48.5)24.5 (73.0)(298.0)%
Less: Net loss attributable to noncontrolling interestLess: Net loss attributable to noncontrolling interest11.5 14.0 (2.5)(17.9)%Less: Net loss attributable to noncontrolling interest10.6 8.2 2.4 29.3 %
Net income (loss) attributable to Lions Gate Entertainment Corp. shareholdersNet income (loss) attributable to Lions Gate Entertainment Corp. shareholders$18.8 $(143.4)$162.2 (113.1)%Net income (loss) attributable to Lions Gate Entertainment Corp. shareholders$(37.9)$32.7 $(70.6)(215.9)%
_______________________
nm - Percentage not meaningful.
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Revenues. Consolidated revenues decreasedincreased in the ninesix months ended December 31, 2020, primarilySeptember 30, 2021, due to decreasesan increase in Television Production revenue, and to a lesser extent, increases in Motion Picture and Television ProductionMedia Networks revenues, which were negatively impacted by the COVID-19 global pandemic, partially offset by increased Media Networks revenues and lower intersegment eliminations associated with lowerhigher Television Production revenues (a substantial portion of intersegment eliminations relates to Television Production revenue) for licenses of original series to Starz Networks and STARZPLAY International, both in the Media Networks segment.
With theaters mostly closed duringMotion Picture revenue increased $83.8 million in the current period due to circumstances associated with the COVID-19 global pandemic, Motion Picture revenue decreased primarily due to lowera greater number of theatrical and international revenue, andreleases as theaters have begun to a lesser extent, lower home entertainment packaged media revenue due to fewer home entertainment releasesreopen in the period, lower television and other revenue.certain locations with varying restrictions.
Television Production revenue decreasedincreased $329.2 million due to lower domestic television revenue with fewerincreased intersegment revenues from the licensing of Starz original series, and a greater number of television episodes delivered largely because ofto third-parties as compared to the prior year's period, which was negatively impacted by the pausing of productions associated with the COVID-19 global pandemic, and to a lesser extent, due to lower other revenue. These decreases were partially offset by an increase in home entertainment revenue and international revenue.pandemic.
The increase in Media Networks revenue wasincreased $11.5 million due to increased revenue across STARZPLAY International of $26.1 million and Starz Networks of $10.2 million, partially offset by a decrease of $24.8 million due to the prior year's period including revenue from Pantaya, which was sold on March 31, 2021 (reflecting substantially all of our former Other Streaming Services partially offset by decreased revenue at Starz Networks. product line).
See further discussion in the Segment Results of Operations section below.

Direct Operating Expenses. Direct operating expenses by segment were as follows for the ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
Nine Months EndedSix Months Ended
December 31,September 30,
20202019Increase (Decrease)20212020Increase (Decrease)
Amount% of Segment RevenuesAmount% of Segment RevenuesAmountPercentAmount% of Segment RevenuesAmount% of Segment RevenuesAmountPercent
(Amounts in millions) (Amounts in millions)
Direct operating expensesDirect operating expensesDirect operating expenses
Motion PictureMotion Picture$373.0 47.3 %$625.1 48.9 %$(252.1)(40.3)%Motion Picture$280.1 45.0 %$236.4 43.9 %$43.7 18.5 %
Television ProductionTelevision Production494.3 79.6 660.9 88.9 (166.6)(25.2)%Television Production655.6 90.8 311.7 79.3 343.9 110.3 %
Media NetworksMedia Networks504.6 43.4 499.8 44.3 4.8 1.0 %Media Networks359.8 46.9 329.4 43.6 30.4 9.2 %
COVID-19 related chargesCOVID-19 related charges36.6 nm— nm36.6 n/aCOVID-19 related charges0.5 nm28.0 nm(27.5)(98.2)%
OtherOther2.5 nm82.7 nm(80.2)(97.0)%Other1.0 nm1.9 nm(0.9)(47.4)%
Intersegment eliminationsIntersegment eliminations(162.0)nm(206.5)nm44.5 (21.5)%Intersegment eliminations(327.7)nm(117.6)nm(210.1)178.7 %
$1,249.0 52.2 %$1,662.0 56.4 %$(413.0)(24.8)%$969.3 54.2 %$789.8 50.7 %$179.5 22.7 %
_______________________
nm - Percentage not meaningful.
Direct operating expenses decreasedincreased in the ninesix months ended December 31, 2020 primarilySeptember 30, 2021 due to lowerhigher Television Production and Motion Picture and Television Production revenue, and lower otherhigher Media Networks direct operating expense, related to certain programming and content charges in the prior year's period (as further described below). These decreases were partially offset by an increase from Media Networks andlower COVID-19 related charges (as further described below). The decreaseincrease in Television Production direct operating expense was partially offset by the decreaseincrease in intersegment eliminations, which primarily relate to Television Production direct operating costs associated with licenses of original series to Starz Networks and STARZPLAY International, both in the Media Networks segment. The increase fromin Media Networks direct operating expense was due to a benefit at Starz Networks in the prior year's period of $41.3 million associated with the modification of a content licensing arrangement, net of amortization for related changes in content availability and air dates, which was partially offsetdriven by lower programming amortizationan increase at STARZPLAY International.International of $31.4 million. See further discussion in the Segment Results of Operations section below.

COVID-19 Related Charges. 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, during the ninesix months ended December 31,September 30, 2021 and 2020, we incurred $36.6 million incertain incremental costs which were expensed in the periodperiods which are included in consolidated direct operating expense and are excluded from segment direct operating expense. TheseIn the six months ended September 30, 2021, the charges of $0.5 million represent incremental costs associated with 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, which were mostly offset by insurance recoveries. In the six months ended September 30, 2020, the charges of $28.0 million include 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
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resulting from circumstances associated with the COVID-19 global pandemic. We
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expect to incur additional incremental costs in future periods. If the adverse economic impact and disruptions associated with the COVID-19 global pandemic continue to improve, we expect that the incremental costs we incur in fiscal 2022 will decrease as compared to fiscal 2021. We are in the process of seeking additional insurance recovery for some of these costs, whichcosts. The ultimate amount of insurance recovery cannot be estimated at this time, and therefore no material amounts of insurance proceeds have been recorded in our consolidated financial statements.time.

Other. During the nine months ended December 31, 2019, in connection with management changes, we implemented changes to our programming and broadcasting strategy including programming acquired or produced under prior management. As a result, we recorded certain programming and content charges of $74.0 million in the prior year's period, which are excluded from segment operating results, but included in direct operating expense in the unaudited condensed consolidated statement of operations and reflected in the "other" line item above. In addition, "other"Other direct operating expenses in the table above includes the amortization of the non-cash fair value adjustments on film and television assets associated with the application of purchase accounting related to recent acquisitions.

Distribution and Marketing Expenses. Distribution and marketing expenses by segment were as follows for the ninesix months ended December 31, 2020 and 2019:
Nine Months Ended
December 31,Increase (Decrease)
20202019AmountPercent
 (Amounts in millions)
Distribution and marketing expenses
Motion Picture$101.7 $468.8 $(367.1)(78.3)%
Television Production20.9 23.5 (2.6)(11.1)%
Media Networks345.5 299.0 46.5 15.6 %
COVID-19 related charges16.1 — 16.1 n/a
Other0.4 0.4 — — %
$484.6 $791.7 $(307.1)(38.8)%
U.S. theatrical P&A and Premium VOD expense included in Motion Picture distribution and marketing expense(1)
$24.9 $318.0 $(293.1)(92.2)%
 ______________________
(1)Amounts in the nine months ended December 31, 2020 include $17.5 million from the quarter ended September 30, 2020 not previously included in the prior disclosure of solely U.S. theatrical P&A (none from the quarter ended June 30, 2020).2021 and 2020:
Six Months Ended
September 30,Increase (Decrease)
20212020AmountPercent
 (Amounts in millions)
Distribution and marketing expenses
Motion Picture$148.8 $64.3 $84.5 131.4 %
Television Production15.5 14.3 1.2 8.4 %
Media Networks269.6 218.9 50.7 23.2 %
COVID-19 related charges0.3 10.7 (10.4)(97.2)%
Other0.3 0.3 — — %
$434.5 $308.5 $126.0 40.8 %
U.S. theatrical P&A and Premium VOD expense included in Motion Picture distribution and marketing expense$79.3 $17.5 $61.8 353.1 %
Distribution and marketing expenses decreasedincreased in the ninesix months ended December 31, 2020, primarilySeptember 30, 2021, due to a decrease inincreased Motion Picture theatrical P&A, partially offset by increasedand Media Networks distribution and marketing expense and COVID-19 related charges (as further described below).expense. The decreaseincrease in Motion Picture distribution and marketing expense is due to increased theatrical P&A was primarily impacted by the COVID-19 global pandemic and associated closure of theaters.as theaters have begun to reopen in certain locations with varying restrictions. The increase in Media Networks distribution and marketing expense was driven by increasesdue to an increase at Starz Networks of $52.9 million, and to a lesser extent, an increase at STARZPLAY International.International of $16.6 million, partially offset by a decrease of $18.8 million due to the prior year's period including distribution and marketing expense from Pantaya, which was sold on March 31, 2021 (reflecting substantially all of our former Other Streaming Services product line). See further discussion in the Segment Results of Operations section below.

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, during the ninesix months ended December 31,September 30, 2021 and 2020, we incurred $16.1$0.3 million and $10.7 million, respectively, in costs primarily related to contractual marketing spends for film releases and events that have been canceled or delayed and thus will provide no economic benefit. These charges are excluded from segment operating results. We expect to incur additional incremental costs in future periods. If the adverse economic impact and disruptions associated with the COVID-19 global pandemic continue to improve, we expect that the incremental costs we incur in fiscal 2022 will decrease as compared to fiscal 2021.

General and Administrative Expenses. General and administrative expenses by segment were as follows for the ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
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Nine Months EndedSix Months Ended
December 31,Increase (Decrease) September 30,Increase (Decrease)
2020% of Revenues2019% of RevenuesAmountPercent 2021% of Revenues2020% of RevenuesAmountPercent
(Amounts in millions) (Amounts in millions)
General and administrative expensesGeneral and administrative expensesGeneral and administrative expenses
Motion PictureMotion Picture$79.8 $76.1 $3.7 4.9 %Motion Picture$47.1 $53.6 $(6.5)(12.1)%
Television ProductionTelevision Production31.5 26.9 4.6 17.1 %Television Production19.5 22.0 (2.5)(11.4)%
Media NetworksMedia Networks65.3 62.7 2.6 4.1 %Media Networks43.9 42.5 1.4 3.3 %
CorporateCorporate76.9 73.0 3.9 5.3 %Corporate48.8 53.5 (4.7)(8.8)%
253.5 10.6%238.7 8.1%14.8 6.2 %159.3 8.9%171.6 11.0%(12.3)(7.2)%
Share-based compensation expenseShare-based compensation expense55.2 39.5 15.7 39.7 %Share-based compensation expense54.1 36.0 18.1 50.3 %
Purchase accounting and related adjustmentsPurchase accounting and related adjustments34.6 39.1 (4.5)(11.5)%Purchase accounting and related adjustments27.2 20.2 7.0 34.7 %
Total general and administrative expensesTotal general and administrative expenses$343.3 14.3%$317.3 10.8%$26.0 8.2 %Total general and administrative expenses$240.6 13.4%$227.8 14.6%$12.8 5.6 %

General and administrative expenses increased in the ninesix months ended December 31, 2020,September 30, 2021, resulting from increases in Corporate,share-based compensation expense, purchase accounting and related adjustments, and a slight increase in Media Networks general and administrative expenses, partially offset by decreased Motion Picture, Media NetworksCorporate and Television Production general and administrative expenses and an increase in share-based compensation expense, partially offset by decreased purchase accounting and related adjustments.expenses. See further discussion in the Segment Results of Operations section below.
Corporate general and administrative expenses increased $3.9decreased $4.7 million, or 5.3%8.8%, primarily due to an increasedecreases in incentive based compensation partially offset by a decrease inand professional fees.
The increase in share-based compensation expense included in general and administrative expense in the ninesix months ended December 31, 2020,September 30, 2021, as compared to the ninesix months ended December 31, 2019September 30, 2020 is primarily due to an increase in the number of share-based payment awards incurring expense in the current period as compared to the prior year's period. Additionally, the increase in share-based compensation expense is due to higher fair values associated with performance-based stock option and other equity awards that are revalued at each reporting period until the stock option or equity award vests and the applicable performance goals are achieved. Additionally, the increase in share-based compensation expense is due to an increase in the number of share-based payment awards incurring expense in the current period as compared to the prior year's period. The following table reconciles this amount to total share-based compensation expense:
Nine Months EndedSix Months Ended
December 31,September 30,
2020201920212020
(Amounts in millions) (Amounts in millions)
Share-based compensation expense by expense categoryShare-based compensation expense by expense categoryShare-based compensation expense by expense category
General and administrative expenseGeneral and administrative expense$55.2 $39.5 General and administrative expense$54.1 $36.0 
Restructuring and other(1)
Restructuring and other(1)
2.8 0.3 
Restructuring and other(1)
— 2.8 
Direct operating expenseDirect operating expense1.5 1.1 Direct operating expense0.5 0.9 
Distribution and marketing expenseDistribution and marketing expense0.5 0.4 Distribution and marketing expense0.3 0.3 
Total share-based compensation expenseTotal share-based compensation expense$60.0 $41.3 Total share-based compensation expense$54.9 $40.0 
_______________________
(1)Represents share-based compensation expense included in restructuring and other expenses reflecting the impact of the acceleration of certain vesting schedules for equity awards pursuant to certain severance arrangements.

Purchase accounting and related adjustments represent the charge for the accretion of the noncontrolling interest discount related to Pilgrim Media Group and 3 Arts Entertainment, the amortization of the recoupable portion of the purchase price and the expense associated with earned distributions related to 3 Arts Entertainment, all of which are accounted for as compensation and are included in general and administrative expense. Purchase accounting and related adjustments decreased $4.5increased $7.0 million, or 11.5%34.7%, primarily due to the expense associated with the earned distributions related to 3 Arts Entertainment.
Depreciation and Amortization Expense. Depreciation and amortization of $142.9$87.8 million for the ninesix months ended December 31, 2020September 30, 2021 decreased $0.1$9.3 million, from $143.0$97.1 million in the ninesix months ended December 31, 2019.September 30, 2020 due to lower amortization expense related to our customer relationship intangible assets.
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Restructuring and Other. Restructuring and other increased $2.1decreased $9.7 million in the ninesix months ended December 31, 2020September 30, 2021 as compared to the ninesix months ended December 31, 2019,September 30, 2020, and includes restructuring and severance costs, certain transaction and related costs, and certain unusual items, when applicable. Restructuring and other costs were as follows for the ninesix months ended December 31,September 30, 2021 and 2020 and 2019 (see Note 13 to our unaudited condensed consolidated financial statements):
Nine Months EndedSix Months Ended
December 31,Increase (Decrease)September 30,Increase (Decrease)
20202019AmountPercent20212020AmountPercent
(Amounts in millions) (Amounts in millions)
Restructuring and other:Restructuring and other:Restructuring and other:
Severance(1)
Severance(1)
Severance(1)
CashCash$11.6 $7.7 $3.9 50.6 %Cash$3.8 $10.6 $(6.8)(64.2)%
Accelerated vesting on equity awards (see Note 11 to our unaudited condensed consolidated financial statements)Accelerated vesting on equity awards (see Note 11 to our unaudited condensed consolidated financial statements)2.8 0.3 2.5 nmAccelerated vesting on equity awards (see Note 11 to our unaudited condensed consolidated financial statements)— 2.8 (2.8)(100.0)%
Total severance costsTotal severance costs14.4 8.0 6.4 80.0 %Total severance costs3.8 13.4 (9.6)(71.6)%
COVID-19 related charges(2)
COVID-19 related charges(2)
1.6 — 1.6 n/a
COVID-19 related charges(2)
0.8 0.8 — — %
Transaction and related costs(3)
Transaction and related costs(3)
2.9 8.8 (5.9)(67.0)%
Transaction and related costs(3)
2.1 2.2 (0.1)(4.5)%
$18.9 $16.8 $2.1 12.5 %$6.7 $16.4 $(9.7)(59.1)%
_______________________
nm - Percentage not meaningful.
(1)Severance costs in the ninesix months ended December 31,September 30, 2021 and 2020 and 2019 were primarily related to restructuring activities in connection with cost-saving initiatives and recent acquisitions.
(2)During the ninesix months ended December 31, 2020,September 30, 2021, the Company has incurred certain costs includingprimarily related to incremental costs required to adhere to health and safety protocols and other incremental costs associated with the COVID-19 global pandemic. In the six months ended September 30, 2020, these costs were 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 ninesix months ended December 31,September 30, 2021 and 2020 and 2019 reflect transaction, integration and legal costs associated with certain strategic transactions, restructuring activities and legal matters.
Interest Expense. Interest expense of $135.2$85.7 million in the ninesix months ended December 31, 2020September 30, 2021 decreased $10.5$4.5 million from the ninesix months ended December 31, 2019,September 30, 2020, due to lower interest expense on the term loans, Senior Notes and other cash-based interest related to payments associated with the Company's interest rate swaps. These decreases were partially offset by an increase in amortization of debt financing costs, and other non-cash interest. The decrease in interest expense on the term loans is primarily due to reductions of the outstanding principal amounts from required and voluntary principal payments since the prior year's period ended December 31, 2019, and the lower LIBOR rate in the current period. The increase in amortization of debt financing costs and other non-cash interest is due to the amortization of unrealized losses in accumulated other comprehensive loss related to de-designated interest rate swaps which are being amortized to interest expense (see Note 16 to our unaudited condensed consolidated financial statements). The following table sets forth the components of interest expense for the ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
 
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Nine Months EndedSix Months Ended
December 31,September 30,
2020201920212020
(Amounts in millions) (Amounts in millions)
Interest ExpenseInterest ExpenseInterest Expense
Cash Based:Cash Based:Cash Based:
Revolving credit facilityRevolving credit facility$3.2 $5.2 Revolving credit facility$3.5 $2.0 
Term loansTerm loans29.2 59.9 Term loans16.9 20.0 
5.875% Senior Notes22.8 22.9 
6.375% Senior Notes26.1 26.2 
Senior NotesSenior Notes27.1 32.4 
Other(1)
Other(1)
23.3 20.3 
Other(1)
14.0 17.3 
104.6 134.5 61.5 71.7 
Amortization of debt financing costs and other non-cash interest(2)
Amortization of debt financing costs and other non-cash interest(2)
30.6 11.2 
Amortization of debt financing costs and other non-cash interest(2)
24.2 18.5 
Total interest expenseTotal interest expense$135.2 $145.7 Total interest expense$85.7 $90.2 
 ______________________
(1)Amounts include payments associated with the Company's interest rate swaps (see Note 16 to our unaudited condensed consolidated financial statements).
(2)Amounts include the amortization of unrealized losses in accumulated other comprehensive loss related to de-designated interest rate swaps which are being amortized to interest expense (see Note 16 to our unaudited condensed consolidated financial statements).
Interest and Other Income. Interest and other income of $28.0 million for the six months ended September 30, 2021 compared to interest and other income of $1.8 million for the six months ended September 30, 2020, due to insurance recoveries on prior shareholder litigation of $22.7 million in the current period and other gains (see Note 15 to our unaudited condensed consolidated financial statements).
Other Expense. Other expense of $4.5$4.3 million for the ninesix months ended December 31, 2020September 30, 2021 compared to other expense of $9.7$2.3 million for the ninesix months ended December 31, 2019,September 30, 2020, and represented the loss recorded related to our monetization of accounts receivable programs (see Note 17 to our unaudited condensed consolidated financial statements).
Loss on Extinguishment of Debt. Loss on extinguishment of debt for the ninesix months ended December 31, 2019 was $1.4 millionSeptember 30, 2021 related to early repaymentsthe write-off of $101.9 million in principala portion of debt issuance costs (including a portion of call premiums) associated with the redemption of the 5.875% Senior Notes and 6.375% Senior Notes and associated issuance of the 5.500% Senior Notes, the amendment of our credit agreement to extend the maturity of a portion of our revolving credit commitments and a portion of our outstanding onterm A loans, and repurchases of the Term Loan B, withB. There was no comparable loss in the ninesix months ended December 31,September 30, 2020. See Note 45 to our unaudited condensed consolidated financial statements.
Gain (Loss) on Investments. Gain on investments of $0.3$1.5 million for the ninesix months ended December 31,September 30, 2021 represented $2.2 million of other investment gains which were partially offset by $0.7 million of unrealized losses on equity securities. This compared to a gain on investments of $0.4 millionfor the six months ended September 30, 2020, which represented a gain on sale of equity securities without readily determinable fair values of $4.6 million and $0.8 million of unrealized gains on equity securities, offset by $5.0 million of impairments of equity method investments and equity securities without readily determinable fair values that were written down to their estimated fair value. This compared to loss on investments of $0.3 millionfor the nine months ended December 31, 2019 which represented unrealized losses on equity securities.
Equity Interests Loss.Income (Loss). Equity interests lossincome of $5.1$1.1 million in the ninesix months ended December 31, 2020September 30, 2021 compared to equity interests loss of $15.7$4.5 million in the ninesix months ended December 31, 2019September 30, 2020 due to lower losses from our equity method investees.

Income Tax Provision.Benefit (Provision). We had an income tax provision of $6.7$12.1 million in the ninesix months ended December 31, 2020,September 30, 2021, compared to an income tax provisionbenefit of $6.5$0.2 million in the ninesix months ended December 31, 2019.September 30, 2020. Our income tax provisionbenefit (provision) differs from the federal statutory rate multiplied by pre-tax income (loss) due to the mix of our pre-tax income (loss) generated across the various jurisdictions in which we operate, changes in the valuation allowance against our deferred tax assets, and certain minimum taxes and foreign withholding taxes. Our income tax provision for the ninesix months ended December 31,September 30, 2021 and 2020 was also impacted by interest accrual on uncertain tax benefits, and release of uncertain tax benefits due to the close of audits or expiration of statutory limitations. Our income tax benefit for the six months ended September 30, 2020 was also impacted by the change inrelease of uncertain tax benefits due to the close of audits or expiration of statutory limitations and additional settlements with tax authorities.limitations.

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Net Income (Loss) Attributable to Lions Gate Entertainment Corp. Shareholders. Net loss attributable to our shareholders for the six months ended September 30, 2021 was $37.9 million, or basic and diluted net loss per common share of $0.17 on 223.1 million weighted average common shares outstanding. This compares to net income attributable to our shareholders for the ninesix months ended December 31,September 30, 2020 was $18.8of $32.7 million, or basic net income per common share of $0.09$0.15 on 220.3220.0 million weighted average common shares outstanding and diluted net income per common share of $0.09$0.15 on 221.4 million weighted average common shares outstanding. This compares to net loss attributable to our shareholders for the nine months ended December 31, 2019 of $143.4 million, or basic and diluted net loss per common share of $0.66 on 217.2220.6 million weighted average common shares outstanding.

Segment Results of Operations
The segment results of operations presented below do not include the elimination of intersegment transactions which are
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eliminated when presenting consolidated results, and exclude items separately identified in the restructuring and other line item in the unaudited condensed consolidated statements of operations.
The Company's primary measure of segment performance is segment profit. Segment profit is defined as gross contribution (revenues, less direct operating and distribution and marketing expense) less segment general and administration expenses. Segment profit excludes, when applicable, corporate general and administrative expense, restructuring and other costs, share-based compensation, certain programming and content charges as a result of changes in management and associated programming and content strategy, and, when applicable, certain charges related to the COVID-19 global pandemic, and purchase accounting and related adjustments. The Company believes the presentation of segment profit is relevant and useful for investors because it allows investors to view segment performance in a manner similar to the primary method used by the Company's management and enables them to understand the fundamental performance of the Company's businesses. The reconciliation of segment profit to the Company's consolidated income (loss) before income taxes is presented in Note 14 to the unaudited condensed consolidated financial statements.

Motion Picture
The table below sets forth Motion Picture gross contribution and segment profit for the ninesix months ended December 31, 2020 and 2019:
 Nine Months Ended
 December 31,Increase (Decrease)
20202019AmountPercent
(Amounts in millions)
Motion Picture Segment:
Revenue$788.6 $1,277.6 $(489.0)(38.3)%
Expenses:
Direct operating expense373.0 625.1 (252.1)(40.3)%
Distribution & marketing expense101.7 468.8 (367.1)(78.3)%
Gross contribution313.9 183.7 130.2 70.9 %
General and administrative expenses79.8 76.1 3.7 4.9 %
Segment profit$234.1 $107.6 $126.5 117.6 %
U.S. theatrical P&A and Premium VOD expense included in distribution and marketing expense(1)
$24.9 $318.0 $(293.1)(92.2)%
Direct operating expense as a percentage of revenue47.3 %48.9 %
Gross contribution as a percentage of revenue39.8 %14.4 %
 ______________________
(1)Amounts in the nine months ended December 31, 2020 include $17.5 million from the quarter ended September 30, 20202021 and 2020:
 Six Months Ended
 September 30,Increase (Decrease)
20212020AmountPercent
(Amounts in millions)
Motion Picture Segment:
Revenue$622.1 $538.3 $83.8 15.6 %
Expenses:
Direct operating expense280.1 236.4 43.7 18.5 %
Distribution & marketing expense148.8 64.3 84.5 131.4 %
Gross contribution193.2 237.6 (44.4)(18.7)%
General and administrative expenses47.1 53.6 (6.5)(12.1)%
Segment profit$146.1 $184.0 $(37.9)(20.6)%
U.S. theatrical P&A and Premium VOD expense included in distribution and marketing expense$79.3 $17.5 $61.8 nm
Direct operating expense as a percentage of revenue45.0 %43.9 %
Gross contribution as a percentage of revenue31.1 %44.1 %
_______________________
nm - Percentage not previously included in the prior disclosuremeaningful.
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Revenue. The table below sets forth Motion Picture revenue by media and product category for the ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
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Nine Months Ended December 31, Six Months Ended September 30,
20202019Total Increase (Decrease) 20212020Total Increase (Decrease)
Feature Film(1)
Other Film(2)
Total
Feature Film(1)
Other Film(2)
Total
Feature Film(1)
Other Film(2)
Total
Feature Film(1)
Other Film(2)
Total
  (Amounts in millions)     (Amounts in millions)  
Motion Picture RevenueMotion Picture RevenueMotion Picture Revenue
TheatricalTheatrical$1.5 $0.6 $2.1 $289.2 $27.3 $316.5 $(314.4)Theatrical$33.7 $10.7 $44.4 $— $0.3 $0.3 $44.1 
Home EntertainmentHome EntertainmentHome Entertainment
Digital MediaDigital Media193.9 173.1 367.0 188.0 124.1 312.1 54.9 Digital Media126.9 115.1 242.0 130.8 113.1 243.9 (1.9)
Packaged MediaPackaged Media55.7 54.1 109.8 114.2 82.8 197.0 (87.2)Packaged Media30.4 34.8 65.2 38.6 34.9 73.5 (8.3)
Total Home EntertainmentTotal Home Entertainment249.6 227.2 476.8 302.2 206.9 509.1 (32.3)Total Home Entertainment157.3 149.9 307.2 169.4 148.0 317.4 (10.2)
TelevisionTelevision121.7 32.2 153.9 138.4 39.3 177.7 (23.8)Television112.9 28.7 141.6 93.5 24.1 117.6 24.0 
InternationalInternational86.6 59.4 146.0 193.4 63.2 256.6 (110.6)International95.7 26.4 122.1 58.8 39.1 97.9 24.2 
OtherOther5.8 4.0 9.8 15.8 1.9 17.7 (7.9)Other3.5 3.3 6.8 2.6 2.5 5.1 1.7 
$465.2 $323.4 $788.6 $939.0 $338.6 $1,277.6 $(489.0)$403.1 $219.0 $622.1 $324.3 $214.0 $538.3 $83.8 
____________________
(1)Feature Film: Includes theatrical releases through our Lionsgate and Summit Entertainment film labels, which includes films developed and produced in-house, films co-developed and co-produced and films acquired from third parties.
(2)Other Film: Includes direct-to-DVD motion pictures, acquired and licensed brands, third-party library product and ancillary-driven platform theatrical releases through our specialty films distribution labels including Lionsgate Premiere, through Good Universe, and with our equity method investees, Roadside Attractions and Pantelion Films, and other titles.
WithTheatrical revenue increased $44.1 million in the six months ended September 30, 2021 as compared to the six months ended September 30, 2020 due to an increase of $33.7 million from our Feature Film category (The Hitman's Wife's Bodyguard and Spiral), and an increase of $10.4 million from our Other Film category,as theaters mostlyhave begun to reopen in certain locations with varying restrictions. In the prior year's period, theaters were closed during the period due to circumstances associated with the COVID-19 global pandemic, theatricalpandemic.

Home entertainment revenue decreased $314.4$10.2 million, or 99.3%3.2%, in the ninesix months ended December 31, 2020September 30, 2021, as compared to the ninesix months ended December 31, 2019. The prior year's period included significant revenue from John Wick: Chapter 3 - Parabellum, Knives Out, Scary Stories to Tell in the Dark, Angel Has Fallen, Midway and Rambo: Last Blood.

Home entertainment revenue decreased $32.3 million, or 6.3%, in the nine months ended December 31,September 30, 2020, as compared to the nine months ended December 31, 2019, due to a decrease of $87.2 million inlower packaged media revenues of $8.3 million, and to a lesser extent, lower digital media revenues of $1.9 million driven by our Feature Film category, as a result of fewer home entertainment releases from our fiscal 2021 theatrical slate in our Feature Film category due to circumstances associated with the COVID-19 global pandemic, and decreasespandemic.
Television revenue increased $24.0 million, or 20.4%, in our Other Films category. The decrease in packaged media revenues was partially offsetthe six months ended September 30, 2021, as compared to the six months ended September 30, 2020, driven by increased digital media revenues of $54.9 million, which included increases in our Other Films category from The Secret: Dare to Dream and Force of Nature. Digital media revenue also increasedan increase in our Feature Film category from the initial release on a streaming platform of Run, and the Premium VOD release of Antebellum, and from our fiscal 2020 theatrical slate (I Still Believe and Knives Out), as compared to the prior year's period which included significant digital media revenue from John Wick: Chapter 3 - Parabellum.
Television revenue decreased $23.8$19.4 million or 13.4%, in the nine months ended December 31, 2020, as compared to the nine months ended December 31, 2019 due to fewera greater number of television windows opening (and revenue recognized) than in the prior year's period.
International revenue decreased $110.6increased $24.2 million, or 43.1%24.7%, in the ninesix months ended December 31, 2020,September 30, 2021, as compared to the ninesix months ended December 31, 2019September 30, 2020 due to loweran increase in our Feature Film category of $36.9 million, offset by a decrease in Other Film of $12.7 million. The increase in Feature Film related to higher revenue from our fiscal 2022 and 2021 theatrical slateslates in the current period whichas theaters have begun to reopen in certain locations with varying restrictions, while the prior year's period had no new significant theatrical releases due to circumstances associated with the COVID-19 global pandemic.
If the adverse economic impact and disruptions associated with the COVID-19 global pandemic as comparedcontinue to the revenue generated from our fiscal 2020 theatrical slate in the prior year's period, which included significant international revenue from John Wick: Chapter 3 - Parabellum.
Weimprove, we currently expect that Motion Picture segment revenues will decreaseincrease in fiscal 20212022 as compared to fiscal 2020 due to delays in domestic and international theatrical distribution and production as a result of the closure of theaters and paused productions throughout the U.S., Canada, and worldwide due to circumstances associated with the COVID-19 global pandemic.2021. The extent of the impact onincrease, if any, to Motion Picture segment revenues, will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the continued effectiveness of actions taken to contain or mitigate the outbreak (including the availability, effectiveness and/or public acceptance of any FDA-approved COVID-19 vaccines), potential resurgences of COVID-19 in certain parts of the world, and the discovery and spread of new variants of the virus which could result in the re-imposition of certain restrictions and may lead to more restrictions being implemented again to reduce the spread of COVID-19, general global economic conditions, the ability forrate at which theaters to re-open at a scale to attract motion pictures and the rate of consumers' return to the theater.are
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able to re-open at scale, the rate of consumers' return to the theaters, and the impact of a potentially crowded marketplace from movies which are awaiting theatrical release in the market. The evolving and uncertain nature of the situation could result in further interruptions to our operations, including delays in domestic and international theatrical distribution and production and the pausing of productions, which could impact Motion Picture segment revenues.
Direct Operating Expense. The decreaseincrease in direct operating expenses is due to a decrease inhigher Motion Picture revenues.revenue. The decreaseslight increase in direct operating expenses as a percentage of motion picture revenue was driven by the change in the mix of titles and product categories generating revenue in the current period as compared to the prior year's period. In particular, the decrease was impacted by the lower amortization rate of the fiscal 2020 and prior theatrical slate titles generating revenue in the current period as compared to the prior year's period. Investment in film write-downs included in Motion Picture segment direct operating expense forin the periodsix months ended September 30, 2021 were $14.6$0.1 million, as compared to $0.9 million in the ninesix months ended December 31, 2020, as compared to $38.8 million in the nine months ended December 31, 2019.September 30, 2020.
Distribution and Marketing Expense. The decreaseincrease in distribution and marketing expense in the ninesix months ended December 31, 2020September 30, 2021 is due to lowerhigher theatrical P&A and Premium VOD expense associated withcompared to the prior year's period, which was impacted by the closure of theaters during the period due toas a result of circumstances associated with the COVID-19 global pandemic. Theatrical P&A and Premium VOD expense in the current periodsix months ended September 30, 2021 includes expense associated with the Premium VOD release of AntebellumThe Hitman's Wife's Bodyguard, The Protégé, Spiral and the theatrical and Premium VOD release of Fatale. Voyagers. In the ninesix months ended December 31, 2020,September 30, 2021, approximately $3.6$5.6 million of P&A and Premium VOD expense was incurred in advance for films to be released in subsequent quarters. Inquarters, compared to approximately $1.7 million in the nine months ended December 31, 2019, approximately $11.4 million of P&A was incurredprior year's period in advance for films to be released in subsequent quarters, such as I Still Believe, Barb and Star Go to Vista Del Mar, and Antebellum.the Motion Picture segment.
Gross Contribution. While Motion Picture revenue declined during the period as discussed above, grossGross contribution of the Motion Picture segment for the ninesix months ended December 31, 2020 increased 70.9%September 30, 2021 decreased as compared to the ninesix months ended December 31, 2019September 30, 2020 due to lowerhigher Motion Picture distribution and marketing expense as a percentage of Motion Picture revenue.
General and Administrative Expense. General and administrative expenses of the Motion Picture segment in the ninesix months ended December 31, 2020 increased $3.7September 30, 2021 decreased $6.5 million, or 4.9%12.1%, primarily due to an increasedecreases in incentive based compensation, partially offset by decreases in rent, facility and travelsalaries and related costs.compensation and professional fees.
Television Production
The table below sets forth Television Production gross contribution and segment profit for the ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
Nine Months Ended Six Months Ended
December 31,Increase (Decrease) September 30,Increase (Decrease)
20202019AmountPercent20212020AmountPercent
(Amounts in millions)(Amounts in millions)
Television Production Segment:Television Production Segment:Television Production Segment:
RevenueRevenue$621.0 $743.2 $(122.2)(16.4)%Revenue$722.1 $392.9 $329.2 83.8 %
Expenses:Expenses:Expenses:
Direct operating expenseDirect operating expense494.3 660.9 (166.6)(25.2)%Direct operating expense655.6 311.7 343.9 110.3 %
Distribution & marketing expenseDistribution & marketing expense20.9 23.5 (2.6)(11.1)%Distribution & marketing expense15.5 14.3 1.2 8.4 %
Gross contributionGross contribution105.8 58.8 47.0 79.9 %Gross contribution51.0 66.9 (15.9)(23.8)%
General and administrative expensesGeneral and administrative expenses31.5 26.9 4.6 17.1 %General and administrative expenses19.5 22.0 (2.5)(11.4)%
Segment profitSegment profit$74.3 $31.9 $42.4 132.9 %Segment profit$31.5 $44.9 $(13.4)(29.8)%
Direct operating expense as a percentage of revenueDirect operating expense as a percentage of revenue79.6 %88.9 %Direct operating expense as a percentage of revenue90.8 %79.3 %
Gross contribution as a percentage of revenueGross contribution as a percentage of revenue17.0 %7.9 %Gross contribution as a percentage of revenue7.1 %17.0 %
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Revenue. The table below sets forth Television Production revenue and changes in revenue by media for the ninesix months ended December 31, 2020September 30, 2021 and 2019:2020:
Nine Months EndedSix Months Ended
December 31,Increase (Decrease) September 30,Increase (Decrease)
20202019AmountPercent 20212020AmountPercent
Television ProductionTelevision Production(Amounts in millions) Television Production(Amounts in millions) 
TelevisionTelevision$332.3 $526.4 $(194.1)(36.9)%Television$500.4 $212.6 $287.8 135.4 %
InternationalInternational120.4 113.3 7.1 6.3 %International124.4 94.3 30.1 31.9 %
Home EntertainmentHome EntertainmentHome Entertainment
DigitalDigital119.8 47.6 72.2 151.7 %Digital57.8 61.8 (4.0)(6.5)%
Packaged MediaPackaged Media4.9 2.2 2.7 122.7 %Packaged Media3.2 1.8 1.4 77.8 %
Total Home EntertainmentTotal Home Entertainment124.7 49.8 74.9 150.4 %Total Home Entertainment61.0 63.6 (2.6)(4.1)%
OtherOther43.6 53.7 (10.1)(18.8)%Other36.3 22.4 13.9 62.1 %
$621.0 $743.2 $(122.2)(16.4)%$722.1 $392.9 $329.2 83.8 %

The primary component of Television Production revenue is domestic television revenue. Domestic television revenue decreasedincreased in the ninesix months ended December 31, 2020,September 30, 2021, as compared to the ninesix months ended December 31, 2019,September 30, 2020, due to fewer television episodes delivered, decreasedan increase of $188.0 million from intersegment revenues from the licensing of Starz original series (Power Book III: Raising Kanan, Heels Season 1, BMF Season 1, Blindspotting Season 1 among others), an increase of $89.3 million from a greater number of television episodes delivered to third-parties, and decreasedincreased revenue of $23.7 million from reality television series, all of which were negatively impacted in the prior year's period by disruptions associated with the COVID-19 global pandemic and the associated pausing of productions which resulted in the delay of television episodes delivered in the current period. In addition, the prior year's period included significant revenue from House of Payne.productions.
International revenue in the ninesix months ended December 31, 2020September 30, 2021 increased $7.1$30.1 million, or 6.3%31.9% as compared to the ninesix months ended December 31, 2019September 30, 2020 due to increasedrevenue in the current period from Dear White People Season 4, Acapulco Season 1, and higher intersegment revenues of $13.7 million from STARZPLAY International from the licensing of Starz original series.
Home entertainment revenue in the ninesix months ended December 31, 2020 increased $74.9September 30, 2021 decreased $2.6 million driven bydue to digital media revenue in the currentprior year's period for Mad Men Seasons 1 - 7, and Power Season 6, partially offset bywhich compared to digital media revenue in the prior year'scurrent period forfrom PowerWeeds Seasons 1 - 8 and Welcome to Flatch Season 5.1.
Other revenue decreasedincreased in the ninesix months ended December 31, 2020September 30, 2021 as compared to the ninesix months ended December 31, 2019. RevenueSeptember 30, 2020. The increase is primarily due to revenue of 3 Arts Entertainment, which was negatively impacted in the ninesix months ended December 31,September 30, 2020 as a result of the COVID-19 global pandemic related disruptions. TheWhile television production has mostly resumed, the extent of the future impact on other revenue of the COVID-19 global pandemic is uncertain and will depend on film and television productions and releases fully returning to and remaining at pre COVID-19 levels.
WeIf the adverse economic impact and disruptions associated with the COVID-19 global pandemic continue to improve, we currently expect that Television Production segment revenues will decreaseincrease in fiscal 20212022 as compared to fiscal 2020 due to delays in domestic and international distribution and production as a result of paused productions throughout the U.S., Canada, and worldwide due to circumstances associated with the COVID-19 global pandemic.2021. The extent of the impact of the COVID-19 global pandemic related disruptions onincrease, if any, to Television Production segment revenues, will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the continued effectiveness of actions taken to contain or mitigate the outbreak (including the availability, effectiveness and/or public acceptance of any FDA-approved COVID-19 vaccines), potential resurgences of COVID-19 in certain parts of the world, and the discovery and spread of new variants of the virus which could result in the re-imposition of certain restrictions and may lead to more restrictions being implemented again to reduce the spread of COVID-19, and general global economic conditions relatedconditions. The evolving and uncertain nature of the situation could result in further interruptions to our operations, including delays in domestic and international distribution and production throughout the COVID-19 global pandemic.U.S., Canada and worldwide, and the pausing of productions, which could impact Television Production segment revenues.
Direct Operating Expense. Direct operating expense of the Television Production segment in the ninesix months ended December 31, 2020 decreased $166.6September 30, 2021 increased $343.9 million, or 25.2%110.3% due to the decreaseincrease in Television Production revenues. Direct operating expenses as a percentage of television production revenue decreasedincreased primarily due to the mix of titles generating revenue in the current period as compared to the prior year's period, and in particular, due to the COVID-19 global pandemic related disruptions,recent ramp up of production, the current period included fewera greater number of deliveries of newer shows in which direct operating expense is typically higher as a percentage of revenue. Due to the increase in cost associated with production and changes in season orders, the current
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period also included increased write-downs to fair value of investment in film and television programs amounting to $26.6 million in aggregate. This compared to lower direct operating expenses as a percentage of television revenue in the prior year's period, which included fewer deliveries of newer shows primarily associated with the pausing of productions due to the COVID-19 global pandemic related disruptions.
Gross Contribution. Gross contribution of the Television Production segment for the ninesix months ended December 31, 2020 increasedSeptember 30, 2021 decreased as compared to the ninesix months ended December 31, 2019,September 30, 2020, due to lowerhigher direct operating expenses as a percentage of television production revenue, partially offset by lower television production revenue.
General and Administrative Expense. General and administrative expenses of the Television Production segment increased $4.6decreased $2.5 million, or 17.1%, primarily11.4% due to increasesa decrease in incentive compensation and salaries and related expenses partially offset by decreases in travel and related expenses.based compensation.
Media Networks
The table below sets forth Media Networks gross contribution and segment profit for the ninesix months ended DecemberSeptember 30, 2021 and 2020. The Media Networks segment results of operations for the six months ended September 30, 2020 included our formerly majority owned premium Spanish language streaming services business, Pantaya (representing substantially all of our former Other Streaming Services product line). We sold our interest in Pantaya on March 31, 2020 and 2019:2021. See Note 2 to our unaudited condensed consolidated financial statements for further information.
Nine Months Ended Six Months Ended
December 31,Increase (Decrease) September 30,Increase (Decrease)
20202019AmountPercent20212020AmountPercent
(Amounts in millions)(Amounts in millions)
Media Networks Segment:Media Networks Segment:Media Networks Segment:
RevenueRevenue$1,161.7 $1,128.8 $32.9 2.9 %Revenue$767.0 $755.5 $11.5 1.5 %
Expenses:Expenses:Expenses:
Direct operating expenseDirect operating expense504.6 499.8 4.8 1.0 %Direct operating expense359.8 329.4 30.4 9.2 %
Distribution & marketing expenseDistribution & marketing expense345.5 299.0 46.5 15.6 %Distribution & marketing expense269.6 218.9 50.7 23.2 %
Gross contributionGross contribution311.6 330.0 (18.4)(5.6)%Gross contribution137.6 207.2 (69.6)(33.6)%
General and administrative expensesGeneral and administrative expenses65.3 62.7 2.6 4.1 %General and administrative expenses43.9 42.5 1.4 3.3 %
Segment profitSegment profit$246.3 $267.3 $(21.0)(7.9)%Segment profit$93.7 $164.7 $(71.0)(43.1)%
Direct operating expense as a percentage of revenueDirect operating expense as a percentage of revenue43.4 %44.3 %Direct operating expense as a percentage of revenue46.9 %43.6 %
Gross contribution as a percentage of revenueGross contribution as a percentage of revenue26.8 %29.2 %Gross contribution as a percentage of revenue17.9 %27.4 %

The following table sets forth the Media Networks segment profit by product line:
Nine Months EndedNine Months Ended Six Months EndedSix Months Ended
December 31, 2020December 31, 2019 September 30, 2021September 30, 2020
Starz NetworksSTARZPLAY InternationalOther Streaming ServicesTotal Media NetworksStarz NetworksSTARZPLAY InternationalOther Streaming ServicesTotal Media NetworksStarz NetworksSTARZPLAY InternationalTotal Media NetworksStarz NetworksSTARZPLAY InternationalOther Streaming ServicesTotal Media Networks
(Amounts in millions)(Amounts in millions)
Media Networks Segment:Media Networks Segment:Media Networks Segment:
RevenueRevenue$1,081.8 $41.9 $38.0 $1,161.7 $1,092.4 $13.6 $22.8 $1,128.8 Revenue$716.7 $50.3 $767.0 $706.5 $24.2 $24.8 $755.5 
Expenses:Expenses:Expenses:
Direct operating expenseDirect operating expense438.3 58.3 8.0 504.6 400.8 95.1 3.9 499.8 Direct operating expense293.9 65.9 359.8 290.0 34.5 4.9 329.4 
Distribution & marketing expenseDistribution & marketing expense256.5 59.5 29.5 345.5 248.5 21.5 29.0 299.0 Distribution & marketing expense218.9 50.7 269.6 166.0 34.1 18.8 218.9 
Gross contributionGross contribution387.0 (75.9)0.5 311.6 443.1 (103.0)(10.1)330.0 Gross contribution203.9 (66.3)137.6 250.5 (44.4)1.1 207.2 
General and administrative expensesGeneral and administrative expenses47.5 12.6 5.2 65.3 47.5 10.6 4.6 62.7 General and administrative expenses32.5 11.4 43.9 31.8 8.0 2.7 42.5 
Segment profitSegment profit$339.5 $(88.5)$(4.7)$246.3 $395.6 $(113.6)$(14.7)$267.3 Segment profit$171.4 $(77.7)$93.7 $218.7 $(52.4)$(1.6)$164.7 

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Revenue. The increase in Media Networks' revenue of $11.5 million was driven bydue to higher STARZPLAY International revenue of $28.3$26.1 million, and increased Other Streaming Services revenue of $15.2 million due to subscriber growth, which was partially offset by decreased Starz Networks' revenue of $10.6 million.$10.2 million, partially offset by a decrease of $24.8 million due to the prior year's period including revenue from Pantaya (representing substantially all of Other Streaming Services), which was sold on March 31, 2021. STARZPLAY International revenue increased as a result of subscriber and revenue growth in the international territories previously launched, and additional territories launched since December 31, 2019.September 30, 2020. Starz Networks' revenue decreasedprimarily increased as a result of declines inhigher OTT revenue of $69.4 million resulting from traditional linear services,increased subscriptions, which was partially offset by higher OTTdeclines in revenue resultingof $59.9 million from increased subscriptions.traditional linear services.
As a result of events related to the COVID-19 global pandemic, television and streaming consumption around the globe continues to increase, as well as home entertainment demand. STARZ continues to achieve an increase in viewership of its content across all platforms as well as an increase in subscribers to its OTT services, both domestically and internationally. This increase in subscribers is dependent upon future economic conditions, our ability to deliver original content and may vary due to changes in consumer viewing and subscription patterns. However, it is too early to say whether this increase is indicative of future results and whether growth may slow as governmental and other restrictions are relaxed, and as a result of the current and possible longer term negative economic impact of the pandemic.
During the ninesix months ended December 31,September 30, 2021 and 2020, and 2019, the following original series premiered on STARZ:
NineSix Months Ended December 31, 2020September 30, 2021NineSix Months Ended December 31, 2019September 30, 2020
First Quarter:First Quarter:
VidaThe Girlfriend Experience Season 3
The Spanish PrincessVida Season 3
HightownRun the World Season 1
Vida HightownSeason 21
The RookBlindspotting Season 1
Second Quarter:Second Quarter:
P-ValleyPower Book III: Raising Kanan Season 1
SweetbitterP-Valley Season 21
Power Book II: Ghost
Power Season 6
Power ConfidentialHeels Season 1
Third Quarter:*
Third Quarter:Power Book II: Ghost
Seduced: Inside the NXIVM CultSeason 1Dublin Murders
The Spanish PrincessBMF - Black Mafia Family Season 21
Leavenworth
*In addition, while Power Book II: Ghost premiered in the second quarter ended September 30, 2020, the series returned with a mid-season premiere in the third quarter in December 2020.
Direct Operating and Distribution and Marketing Expenses. Direct operating and distribution and marketing expenses primarily represent programming cost amortization and advertising and marketing costs, respectively. The level of programming cost amortization and advertising and marketing costs and thus the gross contribution margin for the Media Networks' segment can fluctuate from period to period depending on the number of new original series and first-run output theatrical movies premiering on the network during the period. Programming cost amortization and advertising and marketing costs generally increase in periods where new original series premiere. In addition, the launch of the STARZPLAY international service has and will continue to result in an increase in expenses as the service continues to expand.
The increase in Media Networks direct operating expenses is due to increasesan increase at STARZPLAY International of $31.4 million, and a slight increase at Starz Networks and,of $3.9 million in the six months ended September 30, 2021. These increases were partially offset by a decrease of $4.9 million due to a lesser extent,the prior year's period including direct operating expense from Pantaya (representing substantially all of our former Other Streaming Services partially offset by lower directproduct line), which was sold on March 31, 2021. Direct operating expenses at STARZPLAY International inincreased as a result of the nine months ended December 31, 2020.continued expansion of STARZPLAY International. The increase in Starz Networks direct operating expense was primarily due to a benefit in the prior year's period of $41.3 million associated with the modification of a content licensing arrangement, net of amortization for related changes in content availability and air dates, and higher programming cost amortization related to our Starz Originals of $46.2 million due to a higher number of, and more expensive, series premieres, partially offset by lower programming amortization of $39.6 million related to theatrical releases under our programming output agreement partially offset bywith Sony, and lower programming cost amortization and development expenseof $6.5 million related to our Starz Originals due to fewer series premieres. Direct operating expenses at STARZPLAY International decreased as a result of write downs of programming cost in the nine months ended December 31, 2019 and prior periods, which reduced the cost being amortized in the current period, partially offset by the continued expansion of STARZPLAY International.library content.
The increase in Media Networks distribution and marketing expense is due to an increase of $52.9 million at STARZPLAY International. Distribution and marketing expense for STARZPLAY International increasedStarz Networks due to an increase in operating expense related to continued growth in the OTT service and increased advertising and marketing costs in orderdue to increased spend on our Starz Originals and increased spend to drive subscriber growth in our subscriptions, and an increase of $16.6 million at STARZPLAY International due to increased advertising and marketing to drive growth in subscribers. These increases were partially offset by a decrease of $18.8 million due to the international territories previously launched,prior year's period including distribution and additional territories launched since Decembermarketing expense from Pantaya (representing substantially all of our former Other Streaming Services product line), which was sold on March 31, 2019.
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2021.
Gross Contribution. The decrease in gross contribution compared to the ninesix months ended December 31, 2019September 30, 2020 was due to a decreasedecreases at Starz Networks primarily due to the benefit inof $46.6 million and STARZPLAY International of $21.9 million, driven by higher advertising and marketing expense and direct operating expense in the prior year's period as discussed above, partially offset by lower negative contributions from STARZPLAY International and Other Streaming Services.described above.
General and Administrative Expense. General and administrative expenses of the Media Networks segment in the ninesix months ended December 31, 2020September 30, 2021 increased slightly from the prior year's period, driven by increasedincreases of $3.4 million at STARZPLAY International and $0.7 million at Starz Networks, offset by a decrease of $2.7 million due to the prior year's period including general and administrative expenses for STARZPLAY International.


expense from Pantaya (representing substantially all of our former Other Streaming Services product line), which was sold on March 31, 2021.
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LIQUIDITY AND CAPITAL RESOURCES
Sources and Uses of Cash
Our liquidity and capital resources have been provided principally through cash generated from operations, corporate debt, and our production loans.and related loans, our $220.0 million non-recourse senior secured revolving credit facility due January 2025 based on collateral consisting of certain of the Company’s tax credit receivables (the "Production Tax Credit Facility"), our $140.0 million senior secured amortizing term credit facility due July 2026 (the "IP Credit Facility") based on the collateral consisting solely of the Company’s rights in certain library titles, the monetization of trade accounts receivable, and other financing obligations collateralized by certain contractual payments to be received in the future. As of December 31, 2020,September 30, 2021, we had cash and cash equivalents of $551.5$442.6 million. Our debt at December 31, 2020 primarilySeptember 30, 2021, excluding production and related loans and IP Credit Facility and other financing obligations discussed above, consisted of the following:
Senior Credit Facilities:
Revolving Credit Facility. As of September 30, 2021, we had a $1.5 billion five-year revolving credit facility (with no amounts outstanding at December 31, 2020)September 30, 2021). A portion of the revolving credit commitments, amounting to $1.25 billion, is due April 2026 (the "2026 Revolving Credit Facility"), and a portion of the revolving credit commitments, amounting to $250.0 million, was due March 2023 (the "2023 Revolving Credit Facility, and together with the 2026 Revolving Credit Facility, the "Revolving Credit Facility"),.

Subsequent to September 30, 2021, the Company terminated the remaining portion of the revolving credit commitments, amounting to $250.0 million, under the 2023 Revolving Credit Facility (the "Termination"). After giving effect to the Termination, the Company's remaining revolving credit commitments under its Credit Agreement amounted to $1.25 billion under the 2026 Revolving Credit Facility (see Note 18 - Subsequent Events to our unaudited condensed consolidated financial statements).
Term Loan A. We have a five-year term loan A facility, of which a portion of its outstanding loans, amounting to $444.9 million at September 30, 2021 is due April 2026 (the "2026 Term Loan A") and a portion of its outstanding loans, amounting to $204.3 million at September 30, 2021 is due March 2023 (the "2023 Term Loan A" and together with the 2026 Term Loan A, the "Term Loan A"),.
Term Loan B. We have a seven-year term loan B facility due March 2025 (the "Term Loan B", and, together with the Revolving Credit Facility and the Term Loan A, the "Senior Credit Facilities"), 5.875%with $850.4 million outstanding at September 30, 2021.
Senior Notes:
5.500% Senior Notes. We have $1.0 billion outstanding of 5.500% senior notes due 20242029 (the "5.875%"5.500% Senior Notes"), and 6.375% senior notes due 2024 (the "6.375% Senior Notes").
In January 2021, certain subsidiaries of the Company (the “Borrowers”) entered into a senior secured revolving credit facility with the lenders from time to time party thereto and MUFG Union Bank, N.A., as administrative agent, based on the Company’s tax credit receivables (the “Facility”). The maximum principal amount of the Facility is $120.0 million, subject to availability under the borrowing base, which is based on specified percentages of amounts payable to the Borrowers by governmental authorities pursuant to the tax incentive laws of certain eligible jurisdictions that arise from the production or exploitation of motion pictures and television programming in such jurisdiction. Maximum capacity under the Facility may be increased to $200.0 million through the exercise by the Borrowers of an uncommitted accordion feature through which existing and new lenders may, at their option, agree to provide additional financing. Borrowings under the Facility shall bear interest at a rate equal to, at the Borrowers’ option, LIBOR plus 1.50% per annum or the base rate plus 0.50% per annum. The proceeds of the Facility shall be used to pay transaction fees, costs and interest associated with the Facility and the transactions contemplated thereby, and for repayment of debt and other general corporate purposes. The Facility is expected to mature on January 27, 2025. See Note 18 - Subsequent Events to our unaudited condensed consolidated financial statements.September 30, 2021.
Our principal uses of cash in operations include the funding of film and television productions, film and programming rights acquisitions, and the distribution and marketing of films and television programs. We also use cash for debt service (i.e. principal and interest payments) requirements, equity method or other equity investments, quarterly cash dividends, the purchase of common shares under our share repurchase program, capital expenditures, and acquisitions of businesses.
In addition, the Company has a redeemable noncontrolling interest balance of $191.5$243.2 million as of December 31, 2020September 30, 2021 related to its acquisition of a controlling interest in Pilgrim Media Group and 3 Arts Entertainment, which may require the use of cash in the event the holders of the noncontrolling interests require the Company to repurchase their interests.
The 3 Arts Entertainment noncontrolling interest holders have a rightinterests (see Note 8 to put the noncontrolling interest of 3 Arts Entertainment, at fair value, exercisable at five years after the acquisition date of May 29, 2018, for a 60 day period. Beginning 30 days after the expiration of the exercise period for the put rights held by the noncontrolling interest holders, the Company has a right to call the noncontrolling interest of 3 Arts Entertainment, at fair value, for a 60 day period.
The Pilgrim Media Group noncontrolling interest holder has a right to put and the Company has a right to call a portion of the noncontrolling interest, equal to 17.5% of Pilgrim Media Group, at fair value, until February 19, 2021, as amended. In addition, the noncontrolling interest holder has a right to put and the Company has a right to call the remaining amount of noncontrolling interest at fair value, subject to a cap, exercisable at seven years after the acquisition date of November 12, 2015.our unaudited condensed consolidated financial statements).
We may from time to time seek to retire or purchase our outstanding debt through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.
Anticipated Cash Requirements. The nature of our business is such that significant initial expenditures are required to produce, acquire, distribute and market films and television programs, while revenues from these films and television programs are earned over an extended period of time after their completion or acquisition. In addition, the launch of the Company's STARZPLAY international service has and will require capital investment as the service expands to other international territories.
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In the short-term, while a portion of our revenue has been reduced as a result of disruptions associated with the COVID-19 global pandemic, our cash requirements for productions and marketing spends have also been reduced. In some areas, we have experienced increases in revenue and viewership of our content. We expect that the ultimate impact of these disruptions, including the extent of any adverse impact on our business, results of operations and financial condition, will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the effectiveness of actions taken to contain or mitigate the outbreak, and global
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economic conditions. As a result,While we cannot predict the outcome of the full extent of the disruptions associated with the COVID-19 global pandemic on our operating results, cash flows and financial position.position, we currently expect that as production activity increases and theaters begin to reopen, our cash requirements for productions and marketing spends will increase in fiscal 2022 as compared to fiscal 2021.
However, we currently believe that cash flow from operations, cash on hand, revolving credit facility availability, the monetization of trade accounts receivable, tax-efficient financing, the availability of our senior secured revolving credit facility based on our tax credit receivables,Production Tax Credit Facility and IP Credit Facility, and available production or license financing will be adequate to meet known operational cash and debt service (i.e. principal and interest payments) requirements for the foreseeable future, including the funding of future film and television production, film and programming rights acquisitions and theatrical and home entertainment release schedules, and future equity method or other investment funding requirements, and international expansion. We monitor our cash flow liquidity, availability, fixed charge coverage, capital base, film spending and leverage ratios with the long-term goal of maintaining our credit worthiness.
Our current financing strategy is to fund operations and to leverage investment in films and television programs through our cash flow from operations, our revolving credit facility, single-purpose production or license financing, government incentive programs, film funds, distribution commitments, the monetization of trade accounts receivable, our Production Tax Credit Facility and our senior secured revolving credit facility based on our tax credit receivables.IP Credit Facility. In addition, we continue to expand our STARZPLAY international service and may acquire businesses or assets, including individual films or libraries that are complementary to our business. Any such transaction could be financed through our cash flow from operations, credit facilities, equity or debt financing. If additional financing beyond our existing cash flows from operations and credit facilities cannot fund such transactions, there is no assurance that such financing will be available on terms acceptable to us. Our ability to obtain any additional financing will depend on, among other things, our business plans, operating performance and the condition of the capital markets at the time we seek financing. Additionally, circumstances related to the COVID-19 global pandemic has caused disruption in the capital markets, which could make financing more difficult and/or expensive, and we may not be able to obtain such financing. We may also dispose of businesses or assets, including individual films or libraries, and use the net proceeds from such dispositions to fund operations or such acquisitions, or to repay debt.
Covenants. The Senior Credit Facilities contain representations and warranties, events of default and affirmative and negative covenants that are customary for similar financings and which include, among other things and subject to certain significant exceptions, restrictions on the ability to declare or pay dividends, create liens, incur additional indebtedness, make investments, dispose of assets and merge or consolidate with any other person. In addition, a net first lien leverage maintenance covenant and an interest coverage ratio maintenance covenant apply to the Revolving Credit Facility and the Term Loan A and are tested quarterly. As of December 31, 2020,September 30, 2021, the Company was in compliance with all applicable covenants.

The 5.875% Senior Notes and 6.375%5.500% Senior Notes contain certain restrictions and covenants that, subject to certain exceptions, limit the Company’s ability to incur additional indebtedness, pay dividends or repurchase the Company’s common shares, make certain loans or investments, and sell or otherwise dispose of certain assets subject to certain conditions, among other limitations. As of December 31, 2020,September 30, 2021, the Company was in compliance with all applicable covenants.
Share Repurchase Plan. On February 2, 2016, our Board of Directors authorized to increase our previously announced share repurchase plan from $300 million to $468 million. To date, approximately $288.1 million of our common shares have been purchased under the plan, leaving approximately $179.9 million of authorized potential repurchases. The remaining $179.9 million of our common shares authorized under the plan may be purchased from time to time at our discretion, including quantity, timing and price thereof, and will be subject to market conditions. Such purchases will be structured as permitted by securities laws and other legal requirements. During the three and six months ended December 31, 2020,September 30, 2021, the Company did not repurchase any common shares. During the nine months ended December 31, 2020, the Company repurchased 0.2 million of its Class A voting shares for an aggregate cost of $1.0 million, with an average repurchase price per share of $5.75.
Dividends. The amount of dividends, if any, that we pay to our shareholders is determined by our Board of Directors, at its discretion, and is dependent on a number of factors, including our financial position, results of operations, cash flows, capital requirements and restrictions under our credit agreements, and shall be in compliance with applicable law. In November 2018, our Board of Directors suspended our quarterly cash dividend to focus on driving long-term shareholder value by investing in global growth opportunities for Starz, while also strengthening the Company's balance sheet.
Capacity to Pay Dividends. At December 31, 2020,September 30, 2021, the capacity to pay dividends under the Senior Credit Facilities and the 5.875% Senior Notes and 6.375% Senior Notes significantly exceeded the amount of the Company's accumulated deficit or net income,loss, and therefore the Company's net incomeloss of $7.3$48.5 million and accumulated deficit of $18.8$143.0 million were deemed free of restrictions from paying dividends at December 31, 2020.September 30, 2021.
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Discussion of Operating, Investing, Financing Cash Flows
Cash, and cash equivalents increasedand restricted cash decreased by $227.4$78.4 million for the ninesix months ended December 31, 2020September 30, 2021 and increased by $10.1$142.8 million for the ninesix months ended December 31, 2019,September 30, 2020, before foreign exchange effects on cash. Components of these changes are discussed below in more detail.
Operating Activities. Cash flows provided by (used in) operating activities for the ninesix months ended December 31,September 30, 2021 and 2020 and 2019 were as follows:
Nine Months EndedSix Months Ended
December 31,September 30,
20202019Net Change20212020Net Change
(Amounts in millions)(Amounts in millions)
Operating incomeOperating income$156.3 $14.9 $141.4 Operating income$50.1 $119.1 $(69.0)
Depreciation and amortizationDepreciation and amortization142.9 143.0 (0.1)Depreciation and amortization87.8 97.1 (9.3)
Amortization of films and television programs and program rightsAmortization of films and television programs and program rights853.6 1,306.0 (452.4)Amortization of films and television programs and program rights730.1 531.4 198.7 
Non-cash share-based compensationNon-cash share-based compensation60.1 41.4 18.7 Non-cash share-based compensation54.9 40.1 14.8 
Cash interestCash interest(104.7)(134.5)29.8 Cash interest(61.5)(71.7)10.2 
Current income tax provision(6.7)(5.7)(1.0)
Current income tax (provision) benefitCurrent income tax (provision) benefit(10.4)0.2 (10.6)
Other non-cash charges included in operating activitiesOther non-cash charges included in operating activities49.5 43.4 6.1 Other non-cash charges included in operating activities74.2 31.7 42.5 
Cash flows from operations before changes in operating assets and liabilitiesCash flows from operations before changes in operating assets and liabilities1,151.0 1,408.5 (257.5)Cash flows from operations before changes in operating assets and liabilities925.2 747.9 177.3 
Changes in operating assets and liabilities:Changes in operating assets and liabilities:Changes in operating assets and liabilities:
Accounts receivable, net and other assetsAccounts receivable, net and other assets133.6 271.0 (137.4)Accounts receivable, net and other assets(134.2)150.6 (284.8)
Investment in films and television programs and program rightsInvestment in films and television programs and program rights(984.7)(1,136.1)151.4 Investment in films and television programs and program rights(1,149.7)(467.1)(682.6)
Accounts payable and accrued liabilitiesAccounts payable and accrued liabilities(7.7)(33.8)26.1 Accounts payable and accrued liabilities(45.2)(94.9)49.7 
Other changes in operating assets and liabilitiesOther changes in operating assets and liabilities(132.9)(75.2)(57.7)Other changes in operating assets and liabilities71.4 (133.0)204.4 
Changes in operating assets and liabilitiesChanges in operating assets and liabilities(991.7)(974.1)(17.6)Changes in operating assets and liabilities(1,257.7)(544.4)(713.3)
Net Cash Flows Provided By Operating Activities$159.3 $434.4 $(275.1)
Net Cash Flows Provided By (Used In) Operating ActivitiesNet Cash Flows Provided By (Used In) Operating Activities$(332.5)$203.5 $(536.0)

Cash flows provided byused in operating activities for the ninesix months ended December 31, 2020September 30, 2021 were $159.3$332.5 million compared to cash flows provided by operating activities of $434.4$203.5 million for the ninesix months ended December 31, 2019.September 30, 2020. The decreaseincrease in cash provided byused in operating activities for the ninesix months ended December 31, 2020September 30, 2021 as compared to the ninesix months ended December 31, 2019September 30, 2020 is due to lower cash flows from operations before changes in operating assets and liabilities, and to a lesser extent, greater cash used from changes in operating assets and liabilities as shown above.above, partially offset by increased cash flows from operations before changes in operating assets and liabilities. The greater use of cash from changes in operating assets and liabilities was driven by lower decreases in accounts receivable, net and other assets, and greater use of cash from changes in other operating assets and liabilities driven by decreases in film obligations, as reflected above. These decreases were partially offset by lowerincreased cash used for investment in films and television programs and program rights, and increases in accounts receivable, net and other assets. These decreases were partially offset by greater cash provided by changes in other operating assets and liabilities and lower cash used for accounts payable and accrued liabilities as reflected above, and the receipt of $64.3$24.9 million from the Internal Revenue Service related to the Company's net operating loss carryback claim which is subject to review and included in other liabilities until the review is completed.insurance recoveries on prior shareholder litigation. In addition, cash flows provided byused in operating activities for the ninesix months ended December 31, 2020September 30, 2021 included a net benefituse of cash of approximately $7.0$46.2 million from the monetization of accounts receivables programs, as compared to a net benefit of $280.9approximately $0.9 million for the ninesix months ended December 31, 2019September 30, 2020 (see Note 17 to our unaudited condensed consolidated financial statements).
Investing Activities. Cash flows used in investing activities for the ninesix months ended December 31,September 30, 2021 and 2020 and 2019 were as follows:
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Nine Months EndedSix Months Ended
December 31,September 30,
2020201920212020
(Amounts in millions)(Amounts in millions)
Proceeds from the sale of PantayaProceeds from the sale of Pantaya$123.6 $— 
Proceeds from the sale of other investmentsProceeds from the sale of other investments$5.1 $— Proceeds from the sale of other investments— 5.1 
Investment in equity method investees and otherInvestment in equity method investees and other(0.2)(14.8)Investment in equity method investees and other(9.4)(0.2)
Acquisition of assets (film library and related assets)Acquisition of assets (film library and related assets)(161.4)— 
Capital expendituresCapital expenditures(25.8)(24.0)Capital expenditures(14.6)(17.1)
Net Cash Flows Used In Investing ActivitiesNet Cash Flows Used In Investing Activities$(20.9)$(38.8)Net Cash Flows Used In Investing Activities$(61.8)$(12.2)
Cash used in investing activities of $20.9$61.8 million for the ninesix months ended December 31, 2020September 30, 2021 compared to cash used in investing activities of $38.8$12.2 million for the ninesix months ended December 31, 2019,September 30, 2020, primarily due to cash used for the acquisition of a film library and related assets and investment in equity method investees as reflected above.above, offset by proceeds from the sale of Pantaya (see Note 2 to our unaudited condensed consolidated financial statements).
Financing Activities. Cash flows used inprovided by (used in) financing activities for the ninesix months ended December 31,September 30, 2021 and 2020 and 2019 were as follows:
Nine Months Ended
December 31,
20202019
(Amounts in millions)
Debt - borrowings$160.0 $597.1 
Debt - repayments(210.9)(738.6)
Net borrowings (repayments) of debt(50.9)(141.5)
Production loans - borrowings219.2 54.0 
Production loans - repayments(51.9)(290.9)
Net proceeds from (repayments of) production loans167.3 (236.9)
Repurchase of common shares(2.2)— 
Other financing activities(25.2)(7.1)
Net Cash Flows Provided By (Used In) Financing Activities$89.0 $(385.5)
Six Months Ended
September 30,
20212020
(Amounts in millions)
Debt - borrowings, net of debt issuance and redemption costs$1,947.2 $75.0 
Debt - repurchases and repayments(2,175.6)(109.1)
Net repayments and repurchases of debt(228.4)(34.1)
Production and related loans - borrowings, net of debt issuance costs562.1 47.8 
Production and related loans - repayments(186.6)(44.1)
Net proceeds from production and related loans375.5 3.7 
IP Credit Facility and other financing advances213.6 — 
Repurchase of common shares— (2.2)
Other financing activities(44.8)(15.9)
Net Cash Flows Provided By (Used In) Financing Activities$315.9 $(48.5)
Cash flows provided by financing activities of $89.0$315.9 million for the ninesix months ended December 31, 2020September 30, 2021 compared to cash flows used in financing activities of $385.5$48.5 million for the ninesix months ended December 31, 2019.September 30, 2020. Cash flows provided by financing activities for the ninesix months ended December 31, 2020September 30, 2021 primarily reflects net production and related loan borrowings of $167.3$375.5 million as production activity increased in the quarter,period, net IP Credit Facility and other financing advances of $213.6 million, offset by net debt repayments and repurchases of $50.9 million representing required repayments on our term loans.$228.4 million. In addition, other financing activities in the ninesix months ended December 31, 2020September 30, 2021 includes $15.4$14.4 million for interest rate swap settlement payments due to an other-than-insignificant financing element on a portion of our interest rate swaps (see Note 16 to our unaudited condensed consolidated financial statements). and tax withholding required on equity awards of $33.2 million. Net debt repayments and repurchases of $228.4 million in the six months ended September 30, 2021 included the below transactions and associated debt issuance and redemption costs, along with required repayments on our term loans:
On April 1, 2021, we redeemed in full all $518.7 million outstanding principal amount of our 5.875% Senior Notes and all $545.6 million outstanding principal amount of our 6.375% Senior Notes, and paid a prepayment premium of $15.2 million and $17.4 million on the 5.875% Senior Notes and 6.375% Senior Notes, respectively, plus accrued and unpaid interest to the date of redemption.
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On April 1, 2021, in connection with the redemption of the 5.875% Senior Notes and the 6.375% Senior Notes, we issued $1.0 billion aggregate principal amount of 5.500% Senior Notes.
On April 6, 2021, we amended our Credit Agreement to, among other things, extend the maturity of a portion of our revolving credit commitments, amounting to $1.25 billion, and a portion of our outstanding term A loans, amounting to $444.9 million to April 6, 2026.
During the six months ended September 30, 2021, the Company completed a series of repurchases of the Term Loan B and, in aggregate, paid $95.3 million to repurchase $96.0 million principal amount of the Term Loan B.
Cash flows used in financing activities of $48.5 million for the ninesix months ended December 31, 2019September 30, 2020 primarily reflects net production loan repayments of $236.9 million and net debt repayments of $141.5$34.1 million, and net production and related loan borrowings of $3.7 million, which consistedreflected minimal activity in the period due to the delay of early repayments of $101.9 million in principal outstanding onproductions associated with the Term Loan B and required repayments on our term loans.COVID-19 global pandemic.

Debt
See Note 45 to our unaudited condensed consolidated financial statements for a discussion of our debt.
Production and Related Loans, IP Credit Facility and Other Financing Obligations

See Note 6 to our unaudited condensed consolidated financial statements for a discussion of our production loans.and related loans, IP Credit Facility and other financing obligations.

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Table of Debt and Contractual Commitments
The following table sets forth our future annual repayment of debt, and our contractual commitments as of December 31, 2020:September 30, 2021:
 
Three Months Ending March 31,Year Ending March 31, Six Months Ending March 31,Year Ending March 31,
20212022202320242025ThereafterTotal 20222023202420252026ThereafterTotal
(Amounts in millions)(Amounts in millions)
Future annual repayment of debt recorded as of December 31, 2020 (on-balance sheet arrangements)
Future annual repayment of debt recorded as of September 30, 2021 (on-balance sheet arrangements)Future annual repayment of debt recorded as of September 30, 2021 (on-balance sheet arrangements)
Revolving credit facilityRevolving credit facility$— $— $— $— $— $— $— Revolving credit facility$— $— $— $— $— $— $— 
Term Loan ATerm Loan A13.1 75.0 585.0 — — — 673.1 Term Loan A10.8 210.3 28.9 41.1 44.5 313.6 649.2 
Term Loan BTerm Loan B3.2 12.5 12.5 12.5 915.1 — 955.8 Term Loan B6.3 12.5 12.5 819.1 — — 850.4 
5.875% Senior Notes— — — — 518.7 — 518.7 
6.375% Senior Notes— — — 545.6 — — 545.6 
Film obligations and production loans(1)
18.4 301.6 78.8 119.7 4.6 2.1 525.2 
5.500% Senior Notes5.500% Senior Notes— — — — — 1,000.0 1,000.0 
Film related and other obligations(1)
Film related and other obligations(1)
341.8 499.1 111.6 240.9 30.7 41.6 1,265.7 
Operating lease obligationsOperating lease obligations13.5 40.9 37.5 25.3 15.0 49.4 181.6 Operating lease obligations28.5 43.0 31.4 27.3 21.0 34.0 185.2 
Finance lease obligations0.4 — — — — — 0.4 
48.6 430.0 713.8 703.1 1,453.4 51.5 3,400.4 387.4 764.9 184.4 1,128.4 96.2 1,389.2 3,950.5 
Contractual commitments by expected repayment date (off-balance sheet arrangements)Contractual commitments by expected repayment date (off-balance sheet arrangements)Contractual commitments by expected repayment date (off-balance sheet arrangements)
Film obligation and production loan commitments(2)
124.4 500.1 58.1 155.9 36.8 31.8 907.1 
Film obligations commitments(2)
Film obligations commitments(2)
286.3 533.3 185.8 45.3 31.8 40.6 1,123.1 
Interest payments(3)
Interest payments(3)
34.3 136.3 134.0 115.5 72.1 — 492.2 
Interest payments(3)
61.6 119.9 106.4 97.7 61.0 178.8 625.4 
Other contractual obligationsOther contractual obligations66.8 90.4 54.8 15.2 8.4 49.0 284.6 Other contractual obligations90.5 79.9 41.4 21.6 14.5 46.7 294.6 
225.5 726.8 246.9 286.6 117.3 80.8 1,683.9 438.4 733.1 333.6 164.6 107.3 266.1 2,043.1 
Total future repayment of debt and other commitments under contractual obligations (4)
Total future repayment of debt and other commitments under contractual obligations (4)
$274.1 $1,156.8 $960.7 $989.7 $1,570.7 $132.3 $5,084.3 
Total future repayment of debt and other commitments under contractual obligations (4)
$825.8 $1,498.0 $518.0 $1,293.0 $203.5 $1,655.3 $5,993.6 
 ___________________
(1)Film related and other obligations include program rights and film obligations, production and related loans, and our IP Credit Facility and other financing obligations. Program rights and film obligations include minimum guarantees, theatrical marketing obligations, and accrued licensed program rights obligations. Production and related loans represent include individual
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loans for the production of film and television programs that we produce.produce or license and our Production Tax Credit Facility. Repayment dates of our individual production loans are based on anticipated delivery or release date of the related film or contractual due dates of the obligation. Production Tax Credit Facility amounts represent outstanding amounts under our Production Tax Credit Facility at September 30, 2021, and the repayment date represents the maturity date of the Production Tax Credit Facility (January 27, 2025), however net advances and payments under the Production Tax Credit Facility can fluctuate depending on the amount of collateral available. IP Credit Facility amounts represent outstanding amounts under our IP Credit Facility at September 30, 2021, and repayment dates are based on the projected future cash flows generated from the exploitation of the rights, subject to a minimum guaranteed payment amount, as applicable. Other financing obligations include other financing collateralized by certain contractual payments to be received in the future. See Note 6 to our unaudited condensed consolidated financial statements.
(2)Film obligationobligations commitments include distribution and marketing commitments, minimum guarantee commitments, and program rights commitments, and production loan commitments. Distribution and marketing commitments represent contractual commitments for future expenditures associated with distribution and marketing of films which we will distribute. The payment dates of these amounts are primarily based on the anticipated release date of the film. Minimum guarantee commitments represent contractual commitments related to the purchase of film rights for pictures to be delivered in the future. Program rights commitments represent contractual commitments under programming license agreements related to films that are not available for exhibition until some future date (see below for further details). Production loan commitments represent amounts committed for future film production and development to be funded through production financing and recorded as a production loan liability when incurred. Future payments under these commitments are based on anticipated delivery or release dates of the related film or contractual due dates of the commitment. The amounts include estimated future interest payments associated with the commitment.
(3)Includes cash interest payments on our debt, (including interest on finance lease obligations), excluding the interest payments on the revolving credit facility as future amounts are not fixed or determinable due to fluctuating balances and interest rates.
(4)Not included in the amounts above are $191.5$243.2 million of redeemable noncontrolling interests, as future amounts and timing are subject to a number of uncertainties such that we are unable to make sufficiently reliable estimations of future payments (see Note 8 to our unaudited condensed consolidated financial statements). In addition, in January 2021, we entered into a senior secured revolving credit facility based on our tax credit receivables. The maximum principal amount of the Facility
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is $120.0 million, subject to availability under the borrowing base, which is based on specified percentages of amounts payable to the Borrowers by governmental authorities pursuant to the tax incentive laws of certain eligible jurisdictions that arise from the production or exploitation of motion pictures and television programming in such jurisdiction. Maximum capacity under the Facility may be increased to $200.0 million through the exercise by the Borrowers of an uncommitted accordion feature through which existing and new lenders may, at their option, agree to provide additional financing. The Facility is expected to mature on January 27, 2025. See Note 18 - Subsequent Events to our unaudited condensed consolidated financial statements.

We are obligated to pay programming fees for all qualifying films that are released theatrically in the U.S. by Sony’s Columbia Pictures, Screen Gems, Sony Pictures Classics and TriStar labels through 2021. We do not license films produced by Sony Pictures Animation. The programming fees to be paid by us to Sony are based on the quantity and domestic theatrical exhibition receipts of qualifying films. Since the term of the output programming agreement with Sony applies to all films released theatrically through December 31, 2021, the Company is obligated to pay fees for films that have not yet been released in theaters. We are unable to estimate the amounts to be paid under these agreements for films that have not yet been released in theaters, however, such amounts are expected to be significant.  We have also entered into agreements with a number of other motion picture producers and are obligated to pay fees for the rights to exhibit certain films that are released by these producers.

Remaining Performance Obligations and Backlog

Remaining performance obligations represent deferred revenue on the balance sheet plus fixed fee or minimum guarantee contracts where the revenue will be recognized and the cash received in the future (i.e., backlog). As disclosed in Note 9 to our unaudited condensed consolidated financial statements, remaining performance obligations were $1.6 billion at December 31, 2020September 30, 2021 (March 31, 20202021 - $1.6 billion). The backlog portion of remaining performance obligations (excluding deferred revenue) related to our Motion Picture and Television Production segments was $1.2$1.0 billion at December 31, 2020September 30, 2021 (March 31, 20202021 - $1.0$1.2 billion).
Off-Balance Sheet Arrangements
We do not have any transactions, arrangements and other relationships with unconsolidated entities that will affect our liquidity or capital resources. We have no special purpose entities that provided off-balance sheet financing, liquidity or market or credit risk support, nor do we engage in leasing, hedging or research and development services that could expose us to liability that is not reflected on the face of our unaudited condensed consolidated financial statements. Our commitments to fund operating leases, minimum guarantees, production and related loans, equity method investment funding requirements and all other contractual commitments not reflected on the face of our unaudited condensed consolidated financial statements are presented in the table above.


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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Currency and Interest Rate Risk Management
Market risks relating to our operations result primarily from changes in interest rates and changes in foreign currency exchange rates. Our exposure to interest rate risk results from the financial debt instruments that arise from transactions entered into during the normal course of business. As part of our overall risk management program, we evaluate and manage our exposure to changes in interest rates and currency exchange risks on an ongoing basis. Hedges and derivative financial instruments will continue to be used in the future in order to manage our interest rate and currency exposure. We have no intention of entering into financial derivative contracts, other than to hedge a specific financial risk.
Currency Rate Risk. We enter into forward foreign exchange contracts to hedge our foreign currency exposures on future production expenses denominated in various foreign currencies. These contracts are entered into with major financial institutions as counterparties. We are exposed to credit loss in the event of nonperformance by the counterparty, which is limited to the cost of replacing the contracts, at current market rates. We do not require collateral or other security to support these contracts. See Note 16 to our unaudited condensed consolidated financial statements for additional information on our financial instruments.
Interest Rate Risk. At December 31, 2020,September 30, 2021, we had interest rate swap agreements to fix the interest rate on $1.7 billion of variable rate LIBOR-based debt. See Note 16 to our unaudited condensed consolidated financial statements for additional information. The difference between the fixed rate to be paid and the variable rate received under the terms of the interest rate
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swap agreements will be recognized as interest expense for the related debt. Changes in the variable interest rates to be paid or received pursuant to the terms of the interest rate swap agreements will have a corresponding effect on future cash flows.

Certain of our borrowings, primarily borrowings under our Senior Credit Facilities, and certain production and related loans, our Production Tax Credit Facility and our IP Credit Facility, are, and are expected to continue to be, at variable rates of interest and expose us to interest rate risk. If interest rates increase, our debt service obligations on the variable rate indebtedness would increase even though the amount borrowed remained the same, and our net income would decrease. The applicable margin with respect to loans under the revolving credit facility and Term Loan A is a percentage per annum equal to a LIBOR rate plus 1.75%. The applicable margin with respect to loans under our Term Loan B is a percentage per annum equal to a LIBOR rate plus 2.25%.  Assuming the revolving credit facility is drawn up to its maximum borrowing capacity of $1.5 billion at September 30, 2021, based on the applicable LIBOR in effect as of December 31, 2020,September 30, 2021, each quarter point change in interest rates would result in a $3.6$3.2 million change in annual net interest expense on the revolving credit facility, Term Loan A, Term Loan B and interest rate swap agreements.
The variable interest individual production and related loans incur interest at rates ranging from approximately 2.28%1.93% to 2.96% and3.11%, including applicable margins ranging from 1.75% over the one, two, or three-month LIBOR to 2.25%2.875% over the one, two, or three-monthtwelve-month LIBOR. A quarter point increase of the interest rates on the outstanding principal amount of our variable rate individual production and related loans would result in $0.8$1.7 million in additional costs capitalized to the respective film or television asset.

The applicable margin with respect to advances under the Production Tax Credit Facility is a percentage per annum equal to a LIBOR rate plus 1.50%. Assuming the Production Tax Credit Facility is utilized up to its maximum capacity of $220.0 million, based on the applicable LIBOR in effect as of September 30, 2021, each quarter point change in interest rates would result in a $0.5 million change in annual net interest expense on the Production Tax Credit Facility.
The applicable margin with respect to advances under the IP Credit Facility is a percentage per annum equal to a LIBOR rate plus 2.25%. Assuming the IP Credit Facility is utilized up to its maximum capacity of $140.0 million, based on the applicable LIBOR in effect as of September 30, 2021, each quarter point change in interest rates would result in a $0.4 million change in annual net interest expense on the IP Credit Facility.
At December 31, 2020,September 30, 2021, our 5.875% Senior Notes and 6.375%5.500% Senior Notes had an outstanding carrying value of $1,046.5$963.8 million, and an estimated fair value of $1,085.8$1,027.5 million. A 1% increase in the level of interest rates would decrease the fair value of the 5.875% Senior Notes and 6.375%5.500% Senior Notes by approximately $19.3$46.6 million, and a 1% decrease in the level of interest rates would increase the fair value of the 5.875% Senior Notes and 6.375%5.500% Senior Notes by approximately $12.0$37.6 million.

The following table presents information about our financial instruments that are sensitive to changes in interest rates. The table also presents the cash flows of the principal amounts of the financial instruments, or the cash flows associated with the notional amounts of interest rate derivative instruments, and related weighted-average interest rates by expected maturity or required principal payment dates and the fair value of the instrument as of December 31, 2020:September 30, 2021:
 
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Three Months Ending March 31,Year Ending March 31,Fair Value Six Months Ending March 31,Year Ending March 31,Fair Value
20212022202320242025ThereafterTotalDecember 31,
2020
20222023202420252026ThereafterTotalSeptember 30,
2021
(Amounts in millions)(Amounts in millions)
Debt and Production Loans
Variable Rates:Variable Rates:Variable Rates:
Revolving Credit Facility(1)
Revolving Credit Facility(1)
$— $— $— $— $— $— $— $— 
Revolving Credit Facility(1)
$— $— $— $— $— $— $— $— 
Average Interest RateAverage Interest Rate— — — — — — Average Interest Rate— — — — — — 
Term Loan A(1)
Term Loan A(1)
13.1 75.0 585.0 — — — 673.1 652.9 
Term Loan A(1)
10.8 210.3 28.9 41.1 44.5 313.6 649.2 620.8 
Average Interest RateAverage Interest Rate1.89 %1.89 %1.89 %— — — Average Interest Rate1.83 %1.83 %1.83 %1.83 %1.83 %1.83 %
Term Loan B(1)
Term Loan B(1)
3.2 12.5 12.5 12.5 915.1 — 955.8 931.9 
Term Loan B(1)
6.3 12.5 12.5 819.1 — — 850.4 844.0 
Average Interest RateAverage Interest Rate2.39 %2.39 %2.39 %2.39 %2.39 %— Average Interest Rate2.33 %2.33 %2.33 %2.33 %— — 
Production loans— 160.4 53.3 106.4 — — 320.1 320.1 
Production and related loans(2)
Production and related loans(2)
136.2 467.2 62.8 205.8 — — 872.0 872.0 
Average Interest RateAverage Interest Rate2.12 %2.41 %2.31 %1.58 %— — 
IP Credit Facility and other financing obligations(3)
IP Credit Facility and other financing obligations(3)
90.0 11.1 26.3 26.3 26.3 35.0 215.0 215.0 
Average Interest RateAverage Interest Rate— 2.82 %2.46 %2.39 %— — Average Interest Rate1.40 %2.50 %2.50 %2.50 %2.50 %2.50 %
Fixed Rates:Fixed Rates:Fixed Rates:
5.875% Senior Notes— — — — 518.7 — 518.7 526.5 
5.500% Senior Notes5.500% Senior Notes— — — — — 1,000.0 1,000.0 1,027.5 
Interest RateInterest Rate— — — — 5.875 %— Interest Rate— — — — — 5.500 %
6.375% Senior Notes— — — 545.6 — — 545.6 559.3 
Interest Rate— — — 6.375 %— — 
Interest Rate Swaps(2)
Interest Rate Swaps(3)
Interest Rate Swaps(3)
Variable to fixed notional amountVariable to fixed notional amount— — — — 300.0 1,400.0 1,700.0 165.5 Variable to fixed notional amount— — — — — 1,700.0 1,700.0 89.1 
 ____________________
(1)The effective interest rate in the table above is before the impact of interest rate swaps.
(2)Production and related loans include individual loans for the production of film and television programs that the Company produces or licenses and the Company's Production Tax Credit Facility. Production Tax Credit Facility amounts represent outstanding amounts under our Production Tax Credit Facility at September 30, 2021, and the repayment date represents the maturity date of the Production Tax Credit Facility (January 27, 2025), however net advances and payments under the Production Tax Credit Facility can fluctuate depending on the amount of collateral available.
(3)IP Credit Facility amounts represent outstanding amounts under our IP Credit Facility at September 30, 2021, and repayment dates are based on the projected future cash flows generated from the exploitation of the rights, subject to a minimum guaranteed payment amount, as applicable. Other financing obligations include other financing collateralized by certain contractual payments to be received in the future.
(4)Represents interest rate swap agreements on certain of our LIBOR-based floating-rate debt with fixed rates paid ranging from 1.840% to 2.915% with maturities beginning in March 2025 through March 2030. See Note 16 to our unaudited condensed consolidated financial statements.

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Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
The term “disclosure controls and procedures” is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 as amended (the “Exchange Act”). These rules refer to the controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within required time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
As of December 31, 2020,September 30, 2021, the end of the period covered by this report, the Company carried out an evaluation under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer of the effectiveness of our disclosure controls and procedures, as defined in Exchange Act Rule 13a-15(e). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that such controls and procedures were effective as of December 31, 2020.September 30, 2021.
Changes in Internal Control over Financial Reporting
As required by Rule 13a-15(d) of the Exchange Act, the Company, under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, has evaluated whether any changes occurred to the Company’s internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, such control. Based on that evaluation, there has been no such change during the period covered by this report. We have not experienced any material impact to our internal controls over financial reporting despite the fact that most of our employees are working remotely due to disruptions related to the COVID-19 global pandemic, but we are continually monitoring and assessing the COVID-19 situation on our internal controls.




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PART II

Item 1.  Legal Proceedings.

From time to time, the Company is involved in certain claims and legal proceedings arising in the normal course of business. Due to the inherent difficulty of predicting the outcome of litigation and claims, the Company often cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, if any, related to each pending matter may be.

For a discussion of certain claims and legal proceedings, see Note 15 - Contingencies to our unaudited condensed consolidated financial statements, which discussion is incorporated by reference into this Part II, Item 1, Legal Proceedings.


Item 1A.  Risk Factors.

Other than as set forth below, thereThere were no other material changes to the risk factors previously reported in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020.

The impact of the COVID-19 global pandemic could materially and adversely affect our business, financial condition and results of operations.

The impacts associated with the ongoing COVID-19 global pandemic and measures to prevent its spread, and the resulting economic uncertainty, continue to affect our business in a number of ways. We continue to experience delays in theatrical distribution of our films, both domestically and internationally, as well as delays in the production of film and television content (resulting in continued changes in future release dates for some titles and series). While we have begun (and have, in certain instances, completed) production of a number of films and television series, and theaters have begun to reopen in certain locations with reduced capacity, we are not able to accurately predict when theaters will re-open at scale, at what level consumers will return to movie theaters, when film production will fully resume, whether productions that have resumed will be paused again, the impact of incremental costs required to adhere to new health and safety protocols, or if and when certain of our content will be released. The full extent of impacts related to the COVID-19 global pandemic on our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict. See Part I, Item 1A. “Risk Factors” found in our Annual Report on Form 10-K filed with the SEC on May 27, 2020.

Conversely, television and streaming consumption around the globe continues to increase, as well as home entertainment demand. STARZ continues to achieve an increase in viewership of its content across all platforms as well as an increase in subscribers to its OTT services, both domestically and internationally. However, it is too early to say whether this increase is indicative of future results and whether growth may slow as governmental and other restrictions are relaxed, and as a result of the current and possible longer term negative economic impact of the pandemic. We continue, however, to adapt to these new circumstances. For instance, we have changed the release strategies of several of our theatrical films by releasing solely and/or earlier on streaming platforms, initially releasing in the premium video-on-demand ("Premium VOD") market, or by licensing directly to streaming platforms. We have also begun and completed post-production of a number of our television series and continue the development of film properties and television series.

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 most theaters, international travel restrictions and the pausing of motion picture and television productions, during the three and nine months ended December 31, 2020 we have incurred $14.8 million and $54.3 million, respectively, in incremental costs which were expensed in the period. These costs include $8.6 million and $36.6 million, respectively, reflected in direct operating expense, which include incremental costs associated with the pausing and restarting of productions including certain cast and crew, idle facilities and equipment costs, and in the nine months ended December 31, 2020 include film impairment due to changes in performance expectations resulting from circumstances associated with the COVID-19 global pandemic. In addition, these costs include $5.4 million and $16.1 million, respectively, reflected in distribution and marketing expense, which primarily consists of contractual marketing spends for film releases and events that have been canceled or delayed and will provide no economic benefit, and $0.8 million and $1.6 million in restructuring and other costs primarily due to transitioning the Company to a remote-work environment and other incremental costs associated with the COVID-19 global pandemic during these periods. We expect to incur additional incremental costs in future periods. We are 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 our consolidated financial statements.

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We expect that the ultimate impact of these disruptions, including the extent of any adverse impact on our business, results of operations and financial condition, will depend on, among other things, the duration and spread of the pandemic, the impact of governmental regulations that have been, and may continue to be, imposed in response to the pandemic, the effectiveness of actions taken to contain or mitigate the outbreak (including the availability, effectiveness and/or public acceptance of any FDA-approved COVID-19 vaccines), and global economic conditions related to the COVID-19 global pandemic. All of these impacts could place limitations on our ability to execute on our business plan and materially and adversely affect our business, financial condition and results of operations. We have implemented policies, procedures and protocols to address the situation and expect to continue to adjust our current policies and procedures as more information and guidance become available. In addition, recent resurgences of COVID-19 in certain parts of the world, including the United States and parts of Europe, and the discovery of new variants of the virus, have resulted in the re-imposition of certain restrictions and may lead to more restrictions being implemented again to reduce the spread of COVID-19. These measures could result in further interruptions to our operations. Due to the evolving and uncertain nature of this situation, we are not able to estimate the full extent of the impact on our operating results, cash flows and financial position, particularly over the near to medium term.

2021.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

Issuer Purchases of Securities

On May 31, 2007, our Board of Directors authorized the repurchase of up to $50 million of our common shares. On each of May 29, 2008 and November 6, 2008, our Board of Directors authorized additional repurchases up to an additional $50 million of our common shares. On December 17, 2013, our Board of Directors authorized the Company to increase its stock repurchase plan to $300 million and on February 2, 2016, our Board of Directors authorized the Company to further increase its stock repurchase plan to $468 million. To date, approximately $288.1 million (or 16,608,796) of our common shares have been purchased, leaving approximately $179.9 million of authorized potential repurchases. The remaining $179.9 million of our common shares may be purchased from time to time at the Company’s discretion, including quantity, timing and price thereof, and will be subject to market conditions. Such purchases will be structured as permitted by securities laws and other legal requirements. The share repurchase program has no expiration date.

No common shares were purchased by us during the three months ended December 31, 2020.September 30, 2021.

Additionally, during the three months ended December 31, 2020, 4,719September 30, 2021, no Class A voting shares and 195,5401,380,130 Class B non-voting shares were withheld upon the vesting of restricted share units and restricted awards, share issuances and stock option exercises to satisfy minimum statutory federal, state and local tax withholding obligations.


Item 3. Defaults Upon Senior Securities.
None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.
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Item 6. Exhibits.
Exhibit Number Exhibit DescriptionIncorporated by Reference
FormExhibitFiling Date/
Period End Date
3.18-K3.112/8/2016
3.28-K/A3.112/9/2016
10.40*8-K10.112/21/2020
10.41*x
31.1x
31.2x
32.1x
101xThe following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2020, formatted in Inline XBRL: (i) Consolidated Balance Sheets (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
104xThe cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2020 (formatted as Inline XBRL and contained in Exhibit 101).
Exhibit Number Exhibit DescriptionIncorporated by Reference
FormExhibitFiling Date/
Period End Date
3.18-K3.112/8/2016
3.210-K3.25/28/2021
10.20*8-K10.19/15/2021
31.1x
31.2x
32.1x
101xThe following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted in Inline XBRL: (i) Consolidated Balance Sheets (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
104xThe cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 (formatted as Inline XBRL and contained in Exhibit 101).
__________________________
*Management contract or compensatory plan or arrangement.
xFiled herewith

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
     
 
LIONS GATE ENTERTAINMENT CORP.
 
 
 By:  
/s/ JAMES W. BARGE
 
  Name:James W. Barge 
DATE: FebruaryNovember 4, 2021 Title:Duly Authorized Officer and Chief Financial Officer 



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