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Adoption of ASC Topic 842 - Lease Accounting (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Operating and Finance Right-of-Use Assets and Lease Liabilities

The following table represents the operating and finance right-of-use assets and lease liabilities as of March 31, 2019.

		As of
Leases	Classification	March 31, 2019
Assets ⁽¹⁾
Operating lease assets	Operating lease assets	$	1,443,451
Finance lease assets	Theatre properties and equipment, net of accumulated depreciation and amortization ⁽²⁾		126,854
Total lease assets		$	1,570,305

Liabilities ⁽¹⁾
Current
Operating	Current portion of operating lease obligations	$	211,387
Finance	Current portion of finance lease obligations		14,942
Noncurrent
Operating	Operating lease obligations, less current portion		1,284,317
Finance	Finance lease obligations, less current portion		134,216
Total lease liabilities		$	1,644,862

(1)

The lease right-of-use assets and liabilities recorded on the Company’s condensed consolidated balance sheet generally do not include renewal options that have not yet been executed. The Company does not consider a lease renewal exercise as reasonably certain until immediately before the necessary notification is provided to the landlord.

(2)	Finance lease assets are net of accumulated amortization of $50,503 as of March 31, 2019.

Schedule of Aggregate Lease Costs by Lease Classification

The following table represents the Company’s aggregate lease costs, by lease classification, for the three months ended March 31, 2019.

		Three Months Ended
Lease Cost	Classification	March 31, 2019
Operating lease costs
Equipment ⁽¹⁾	Utilities and other	$	1,743
Theatres ⁽²⁾⁽³⁾	Facility lease expense		84,785
Total operating lease costs		$	86,528

Finance lease costs
Amortization of leased assets	Depreciation and amortization		3,740
Interest on lease liabilities	Interest expense		2,021
Total finance lease costs		$	5,761

(1)	Includes approximately $620 of short-term lease payments.

(2)	Includes approximately $15,934 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs.

(3)	Approximately $402 of lease payments are included in general administrative expenses primarily related to office leases.

Schedule of Maturity of Lease Liabilities by Lease Classification

The following table represents the maturity of lease liabilities, by lease classification, as of March 31, 2019.

	Operating		Finance
Years Ending	Leases		Leases		Total
2019	$	209,134	$	16,683	$	225,817
2020		265,866		22,373		288,239
2021		248,804		18,661		267,465
2022		219,925		17,925		237,850
2023		189,116		17,236		206,352
After 2023		674,349		101,109		775,458
Total lease payments	$	1,807,194	$	193,987	$	2,001,181
Less: Interest		311,490		44,829		356,319
Present value of lease liabilities	$	1,495,704	$	149,158	$	1,644,862

Estimated Future Minimum Lease Payments Under Operating Leases

The following table represents future minimum lease payments under noncancelable operating and capital leases at December 31, 2018 as presented in the Company’s Annual Report on Form 10-K filed February 28, 2019:

	Operating		Capital
Years Ending	Leases		Leases
2019	$	253,323	$	42,434
2020		242,336		41,502
2021		230,396		34,589
2022		204,628		32,462
2023		176,802		28,534
Thereafter		677,091		166,375
Total	$	1,784,576		345,896
Amounts representing interest payments				(86,364	)
Present value of future minimum payments				259,532
Current portion of finance and capital lease obligations				(27,065	)
Capital lease obligations, less current portion			$	232,467

Estimated Future Minimum Lease Payments Under Capital Leases

	Operating		Capital
Years Ending	Leases		Leases
2019	$	253,323	$	42,434
2020		242,336		41,502
2021		230,396		34,589
2022		204,628		32,462
2023		176,802		28,534
Thereafter		677,091		166,375
Total	$	1,784,576		345,896
Amounts representing interest payments				(86,364	)
Present value of future minimum payments				259,532
Current portion of finance and capital lease obligations				(27,065	)
Capital lease obligations, less current portion			$	232,467

Schedule of Weighted-Average Remaining Lease Term and Discount Rate

The following table represents the weighted-average remaining lease term and discount rate, disaggregated by lease classification, as of March 31, 2019.

	As of
Lease Term and Discount Rate	March 31, 2019
Weighted-average remaining lease term (years) ⁽¹⁾
Operating leases - equipment		4.5
Operating leases - theatres		8.2
Finance leases - equipment		6.3
Finance leases - theatres		10.9

Weighted-average discount rate ⁽²⁾
Operating leases - equipment		4.3	%
Operating leases - theatres		4.8	%
Finance leases - equipment		5.5	%
Finance leases - theatres		5.3	%

(1)

(2)

The discount rate for each lease represents the incremental borrowing rate that the Company would incur to borrow on a collateralized basis over a similar term and amount equal to lease payments in a similar economic environment.

Schedule of Minimum Cash Lease Payments

The following table represents the minimum cash lease payments included in the measurement of lease liabilities and the non-cash addition of right-of-use assets for the three months ended March 31, 2019.

	Three months ended,
Other Information	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Cash outflows for operating leases	$	69,974
Cash outflows for finance leases - operating activities	$	1,974
Cash outlfows for finance leases - financing activities	$	3,517
Non-cash amount of leased assets obtained in exchange for:
Operating lease liabilities - equipment	$	101
Finance lease liabilities	$	—