Additional Financial Information

6 Months Ended

Jun. 30, 2026

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Additional Financial Information

Additional Financial Information

The following tables present supplemental information related to the accompanying financial statements.

Accounts Receivable Monetization

Under the Company's accounts receivable monetization programs, the Company has entered into an agreement to monetize certain of its trade accounts receivable directly with a third-party purchaser (historically, the Company entered into individual agreements), as further described below.

Under the accounts receivable monetization programs, the Company transfers receivables to purchasers in exchange for cash proceeds, and the Company continues to service the receivables for the purchasers. The third-party purchasers have no recourse to other assets of the Company in the event of non-payment by the customers. 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 provided by operating activities in the unaudited condensed consolidated statements of cash flows.

The Company records a loss on the sale of these receivables reflecting the net proceeds received (net of any costs incurred), less the carrying amount of the receivables transferred. The loss is reflected in other expense on the accompanying unaudited condensed consolidated statements of operations.

The following table sets forth a summary of the receivables transferred:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
	(Amounts in millions)
Carrying value of receivables transferred and derecognized	$	199.7	$	211.4	$	397.8	$	415.8
Net cash proceeds received from third party purchasers	198.3		209.4		395.0		412.2
Loss recorded related to transfers of receivables	1.4		1.8		2.8		3.4

At June 30, 2026, receivables totaling $133.4 million had been derecognized from the Company’s accompanying unaudited condensed consolidated balance sheets but continued to be serviced by the Company. The comparable amount at December 31, 2025 was $132.9 million.

Other Assets

The composition of the Company’s other assets is as follows:

	June 30, 2026		December 31, 2025
	(Amounts in millions)
Other non-current assets
Operating lease right-of-use assets	$	38.8	$	41.7
Debt issuance costs	2.5		3.0
Accounts receivable	—		2.5
	$	41.3	$	47.2

Other Accrued Liabilities and Other Liabilities

The composition of the Company’s other accrued liabilities (current) and other liabilities (non-current) is as follows:

	June 30, 2026		December 31, 2025
	(Amounts in millions)
Other accrued liabilities (current)
Contract termination liability(1)	$	48.0	$	—
Employee related liabilities	42.7		23.5
Operating lease liabilities	11.4		11.1
Other accrued expenses and short-term liabilities	18.8		14.5
	$	120.9	$	49.1
Other liabilities (non-current)
Contract termination liability(1)	$	99.2	$	—
Operating lease liabilities	43.1		48.3
Programming related payables	23.1		19.7
Other long-term liabilities	4.6		4.7
	$	170.0	$	72.7

_____________________

(1)Represents contract termination fees accrued in connection with the April 2026 termination of certain live-action films under a post-pay-one output licensing arrangement.

Supplemental Cash Flow Information

Refer to Note 14, Activity with the LG Studios Business, for further details regarding non-cash activity with Parent.