SEGMENT INFORMATION

We operate in four reportable segments: Phase I Deployment, Phase II Deployment, Services and Content & Entertainment or CEG. Our segments were determined based on the economic characteristics of our products and services, our internal organizational structure, the manner in which our operations are managed and the criteria used by our Chief Operating Decision Maker to evaluate performance, which is generally the segment’s income (loss) from continuing operations before interest, taxes, depreciation and amortization. Certain Corporate assets, liabilities and operating expenses are not allocated to our reportable segments.



Operations of:	Products and services provided:
Phase I Deployment	Financing vehicles and administrators for our 3,724 Systems installed nationwide, for which we retain ownership of the Systems and the residual cash flows related to the Systems after the repayment of all non-recourse debt at the expiration of exhibitor master license agreements.
Phase II Deployment	Financing vehicles and administrators for our 8,904 Systems installed domestically and internationally, for which we retain no ownership of the residual cash flows and digital cinema equipment after the completion of cost recoupment and at the expiration of the exhibitor master license agreements.
Services	Provides monitoring, collection, verification and other management services to our Phase I Deployment, Phase II Deployment, CDF2 Holdings, as well as to exhibitors who purchase their own equipment. Services also collects and disburses VPFs from motion picture studios, distributors and ACFs from alternative content providers, movie exhibitors and theatrical exhibitors.
Content & Entertainment	Leading distributor of independent content, and collaborates with producers and other content owners to market, source, curate and distribute independent content to targeted and profitable audiences in theatres and homes, and via mobile and emerging platforms.

The following tables present certain financial information related to our reportable segments and Corporate:



	As of December 31, 2015
(In thousands)	Intangible Assets, net		Goodwill		Total Assets		Notes Payable, Non-Recourse		Notes Payable		Capital Leases
Phase I Deployment	$	222	$	—	$	56,946	$	101,577	$	—	$	—
Phase II Deployment	—		—		58,720		21,534		—		—
Services	—		—		1,544		—		—		—
Content & Entertainment	27,171		8,701		108,215		—		—		86
Corporate	11		—		16,780		—		86,697		4,268
Total	$	27,404	$	8,701	$	242,205	$	123,111	$	86,697	$	4,354



	As of March 31, 2015
(In thousands)	Intangible Assets, net		Goodwill		Total Assets		Notes Payable, Non-Recourse		Notes Payable		Capital Leases
Phase I Deployment	$	252	$	—	$	74,595	$	123,722	$	—	$	—
Phase II Deployment	—		—		61,350		27,638		—		—
Services	—		—		1,084		—		—		—
Content & Entertainment	31,520		26,701		122,610		—		—		84
Corporate	12		—		13,378		—		45,294		5,411
Total	$	31,784	$	26,701	$	273,017	$	151,360	$	45,294	$	5,495



	Statements of Operations
	For the Three Months Ended December 31, 2015
	(Unaudited, in thousands)
	Phase I		Phase II		Services		Content & Entertainment			Corporate			Consolidated
Revenues	$	9,993	$	3,184	$	3,096	$	14,435		$	—		$	30,708
Direct operating (exclusive of depreciation and amortization shown below)	341		57		1		8,113			—			8,512
Selling, general and administrative	118		20		213		3,405			3,854			7,610
Allocation of Corporate overhead	—		—		405		1,357			(1,762		)	—
Restructuring, transition and acquisition expenses, net	—		—		—		102			474			576
Litigation settlement recovery, net of expenses	—		—		—		(225		)	—			(225		)
Depreciation and amortization of property and equipment	7,174		1,881		—		88			285			9,428
Amortization of intangible assets	12		—		—		1,450			1			1,463
Total operating expenses	7,645		1,958		619		14,290			2,852			27,364
Income (loss) from operations	$	2,348	$	1,226	$	2,477	$	145		$	(2,852	)	$	3,344

The following employee and director stock-based compensation expense related to the Company’s stock-based awards is included in the above amounts as follows:



	Phase I		Phase II		Services		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	1	$	2	$	—	$	3
Selling, general and administrative	—		—		—		66		281		347
Total stock-based compensation	$	—	$	—	$	1	$	68	$	281	$	350



	Statements of Operations
	For the Three Months Ended December 31, 2014
	(Unaudited, in thousands)
	Phase I			Phase II			Services		Content & Entertainment			Corporate			Consolidated
Revenues	$	8,995		$	3,078		$	3,039	$	16,164		$	—		$	31,276
Direct operating (exclusive of depreciation and amortization shown below)	287			105			4		8,714			—			9,110
Selling, general and administrative	19			28			176		4,007			3,254			7,484
Allocation of Corporate overhead	—			—			470		1,380			(1,850		)	—
Provision for doubtful accounts	(300		)	(78		)	—		—			—			(378		)
Restructuring, transition and acquisition expenses, net	61			—			—		350			76			487
Litigation and related expenses	—			—			—		578			—			578
Depreciation and amortization of property and equipment	7,137			1,881			53		49			280			9,400
Amortization of intangible assets	11			—			—		1,450			1			1,462
Total operating expenses	7,215			1,936			703		16,528			1,761			28,143
Income (loss) from operations	$	1,780		$	1,142		$	2,336	$	(364	)	$	(1,761	)	$	3,133

The following employee and director stock-based compensation expense related to the Company’s stock-based awards is included in the above amounts as follows:



	Phase I		Phase II		Services		Content & Entertainment		Corporate		Consolidated
Direct operating	$	—	$	—	$	4	$	2	$	—	$	6
Selling, general and administrative	—		—		—		86		355		441
Total stock-based compensation	$	—	$	—	$	4	$	88	$	355	$	447



	Statements of Operations
	For the Nine Months Ended December 31, 2015
	(Unaudited, in thousands)
	Phase I		Phase II		Services		Content & Entertainment			Corporate			Consolidated
Revenues	27,856		9,252		8,898		35,234			—			81,240
Direct operating (exclusive of depreciation and amortization shown below)	899		257		8		23,028						24,192
Selling, general and administrative	456		84		648		14,401			10,348			25,937
Allocation of Corporate overhead	—		—		1,212		4,058			(5,270		)	—
Provision for doubtful accounts	241		98		—		—			—			339
Restructuring, transition and acquisition expenses, net	—		—		—		102			670			772
Litigation settlement recovery, net of expenses	—		—		—		(635		)	—			(635		)
Goodwill impairment	—		—		—		18,000			—			18,000
Depreciation and amortization of property and equipment	21,478		5,643		—		239			852			28,212
Amortization of intangible assets	31		—		—		4,349			5			4,385
Total operating expenses	23,105		6,082		1,868		63,542			6,605			101,202
Income (loss) from operations	$	4,751	$	3,170	$	7,030	$	(28,308	)	$	(6,605	)	$	(19,962	)

The following employee and director stock-based compensation expense related to the Company’s stock-based awards is included in the above amounts as follows:



	Phase I	Phase II	Services	Content & Entertainment	Corporate	Consolidated
Direct operating	—	—	9	5	—	14
Selling, general and administrative	—	—	1	202	1,207	1,410
Total stock-based compensation	—	—	10	207	1,207	1,424



	Statements of Operations
	For the Nine Months Ended December 31, 2014
	(Unaudited, in thousands)
	Phase I		Phase II		Services	Content & Entertainment		Corporate		Consolidated
Revenues	27,291		9,287		8,962	32,314		—		77,854
Direct operating (exclusive of depreciation and amortization shown below)	752		379		56	19,738		—		20,925
Selling, general and administrative	297		101		588	13,107		9,202		23,295
Allocation of Corporate overhead	—		—		1,395	4,069		(5,464	)	—
Provision for doubtful accounts	(204	)	(23	)	21	—		—		(206	)
Restructuring, transition and acquisition expenses, net	61		—		—	1,768		421		2,250
Litigation and related expenses	—		—		—	780		—		780
Depreciation and amortization of property and equipment	21,412		5,643		159	141		812		28,167
Amortization of intangible assets	34		—		—	4,774		3		4,811
Total operating expenses	22,352		6,100		2,219	44,377		4,974		80,022
Income (loss) from operations	4,939		3,187		6,743	(12,063	)	(4,974	)	(2,168	)

The following employee and director stock-based compensation expense related to the Company’s stock-based awards is included in the above amounts as follows:



	Phase I	Phase II	Services	Content & Entertainment	Corporate	Consolidated
Direct operating	—	—	4	8	—	12
Selling, general and administrative	—	—	10	215	1,235	1,460
Total stock-based compensation	—	—	14	223	1,235	1,472