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REVENUE RECOGNITION | 12 Months Ended
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Dec. 31, 2019
Revenue From Contract With Customer [Abstract] |
REVENUE RECOGNITION |
4. | REVENUE RECOGNITION
Revenue Recognition Policy The Company’s patrons have the option to purchase movie tickets well in advance of a movie showtime or right before the movie showtime, or at any point in between those two timeframes depending on seat availability. The Company recognizes such admissions revenues when the showtime for a purchased movie ticket has passed. Concession revenues are recognized when products are sold to the consumer. Other revenues primarily consist of screen advertising and screen rental revenues, promotional income, studio trailer placements and transactional fees. The Company sells gift cards and discount ticket vouchers, the proceeds from which are recorded as deferred revenues. Deferred revenues for gift cards and discount ticket vouchers are recognized when they are redeemed for movie tickets or concession items. The Company offers a subscription program in the U.S. whereby patrons can pay a monthly fee to receive a monthly credit for use towards a future movie ticket purchase. The Company records the monthly subscription program fees as deferred revenues and record admissions revenues when the showtime for a movie ticket purchased with a credit has passed. The Company has loyalty programs in the U.S. and many of its international locations that either have a prepaid annual membership fee or award points to customers as purchases are made. For those loyalty programs that have an annual membership fee, the Company recognizes the fee collected as other revenues on a straight-line basis over the term of the membership. For those loyalty programs that award points to customers based on their purchases, the Company records a portion of the original transaction proceeds as deferred revenues based on the number of reward points issued to customers and recognizes the deferred revenues when the customer redeems such points. The value of loyalty points issued is based on the estimated fair value of the rewards offered. The Company records breakage revenue on gift cards and discount ticket vouchers generally based on redemption activity and historical experience with unused balances. The Company records breakage revenue upon the expiration of loyalty points and subscription credits. Breakage revenue is recorded as other revenues on the consolidated income statements. Advances collected on concession and other contracts are deferred and recognized during the period in which we satisfy the related performance obligations, which may differ from the period in which the advances are collected. These advances are recognized on either a straight-line basis over the term of the contracts or as the Company meets its performance obligations in accordance with the terms of the contracts. Screen advertising and screen rental revenues for the U.S. operating segment primarily relate to the ESA with NCM and the Company’s beverage concessionaire agreement. Prior to September 17, 2019, such screen advertising was accounted for under ASC Topic 606, Revenue from Contracts with Customers, and effective upon the amendment of the ESA, NCM screen advertising was accounted for under ASC Topic 842. See table at Note 7 for screen advertising revenues recorded in other revenue under ASC Topic 606 prior to the amendment of the ESA and screen rental revenues recorded in other revenue under ASC Topic 842 subsequent to the amendment of the ESA. Accounts receivable as of December 31, 2019 included approximately $31,620 of receivables related to contracts with customers. The Company did not record any assets related to the costs to obtain or fulfill a contract with customers during the year ended December 31, 2019. Disaggregation of Revenue The following table presents revenues for the periods indicated, disaggregated based on major type of good or service and by reportable operating segment.
|  | Twelve Months Ended |  |  | Twelve Months Ended |
|  | December 31, 2018 |  |  | December 31, 2019 |
|  | U.S. |  |  | International |  |  |  |  |  |  | U.S. |  |  | International |  |  |  |  |
|  | Operating |  |  | Operating |  |  |  |  |  |  | Operating |  |  | Operating |  |  |  |  |
Major Goods/Services |  | Segment (1) |  |  | Segment |  |  | Consolidated |  |  | Segment (1) |  |  | Segment |  |  | Consolidated |
Admissions revenues |  | $ | 1,461,151 |  |  | $ | 373,022 |  |  | $ | 1,834,173 |  |  | $ | 1,431,790 |  |  | $ | 373,531 |  |  | $ | 1,805,321 |
Concession revenues |  |  | 892,391 |  |  |  | 216,402 |  |  |  | 1,108,793 |  |  |  | 936,241 |  |  |  | 224,842 |  |  |  | 1,161,083 |
Screen advertising, screen rental and promotional revenues |  |  | 78,591 |  |  |  | 61,269 |  |  |  | 139,860 |  |  |  | 128,839 |  |  |  | 35,888 |  |  |  | 164,727 |
Other revenues |  |  | 106,824 |  |  |  | 32,085 |  |  |  | 138,909 |  |  |  | 84,033 |  |  |  | 67,935 |  |  |  | 151,968 |
Total revenues |  | $ | 2,538,957 |  |  | $ | 682,778 |  |  | $ | 3,221,735 |  |  | $ | 2,580,903 |  |  | $ | 702,196 |  |  | $ | 3,283,099 |
| (1) | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 20 for additional information on intercompany eliminations.
The following table presents revenues for the periods indicated, disaggregated based on timing of revenue recognition (as discussed above).
|  | Twelve Months Ended |  |  | Twelve Months Ended |
|  | December 31, 2018 |  |  | December 31, 2019 |
|  | U.S. |  |  | International |  |  |  |  |  |  | U.S. |  |  | International |  |  |  |  |
|  | Operating |  |  | Operating |  |  |  |  |  |  | Operating |  |  | Operating |  |  |  |  |
|  | Segment (1) |  |  | Segment |  |  | Consolidated |  |  | Segment (1) |  |  | Segment |  |  | Consolidated |
Goods and services transferred at a point in time |  | $ | 2,453,313 |  |  | $ | 608,347 |  |  | $ | 3,061,660 |  |  | $ | 2,488,716 |  |  | $ | 621,785 |  |  | $ | 3,110,501 |
Goods and services transferred over time |  |  | 85,644 |  |  |  | 74,431 |  |  |  | 160,075 |  |  |  | 92,187 |  |  |  | 80,411 |  |  |  | 172,598 |
Total |  | $ | 2,538,957 |  |  | $ | 682,778 |  |  | $ | 3,221,735 |  |  | $ | 2,580,903 |  |  | $ | 702,196 |  |  | $ | 3,283,099 |
| (1) | U.S. segment revenues include eliminations of intercompany transactions with the international operating segment. See Note 20 for additional information on intercompany eliminations.
Screen Advertising Advances and Other Deferred Revenues The following table presents changes in the Company’s deferred revenues for the year ended December 31, 2019.
Deferred Revenues |  | NCM Screen Advertising Advances (1) |  |  | Other Deferred Revenues (2) |  |  | Total |
Balance at January 1, 2019 |  | $ | 350,242 |  |  | $ | 106,075 |  |  | $ | 456,317 |
Amounts recognized as accounts receivable |  |  | — |  |  |  | 12,767 |  |  |  | 12,767 |
Cash received from customers in advance |  |  | — |  |  |  | 227,125 |  |  |  | 227,125 |
Common units received from NCM (see Note 7) |  |  | 1,552 |  |  |  | — |  |  |  | 1,552 |
Interest accrued related to significant financing component |  |  | 28,624 |  |  |  | — |  |  |  | 28,624 |
Revenue recognized during period |  |  | (32,064 | ) |  |  | (206,367 | ) |  |  | (238,431 | )
Foreign currency translation adjustments |  |  | — |  |  |  | (1,174 | ) |  |  | (1,174 | )
Balance at December 31, 2019 |  | $ | 348,354 |  |  | $ | 138,426 |  |  | $ | 486,780 |
| (1) | See Significant Financing Component discussion below. See Note 7 for the maturity of balances as of December 31, 2019.
| (2) | Includes liabilities associated with outstanding gift cards and SuperSavers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising and other promotional activities. Classified as accounts payable and accrued expenses or other long-term liabilities on the consolidated balance sheet.
The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2019 and when the Company expects to recognize this revenue.
|  | Twelve Months Ended December 31, |  |  |  |  |  |  |  |  |
Remaining Performance Obligations |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | 2023 |  |  | 2024 |  |  | Thereafter |  |  | Total |
Deferred revenue - other |  | $ | 125,334 |  |  |  | 12,897 |  |  |  | 195 |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 138,426 |
Significant Financing Component As discussed further in Note 7, in connection with the completion of the NCM, Inc. (“NCMI”) initial public offering, the Company amended and restated its ESA with NCM and received approximately $174,000 in cash consideration from NCM. The proceeds were recorded as deferred revenue and are being amortized over the term of the modified ESA, or through February 2041. In addition to the consideration received upon the ESA modification during 2007, the Company also receives consideration in the form of common units from NCM, at each annual common unit adjustment settlement, in exchange for exclusive access to the Company’s newly opened domestic screens under the ESA. See Note 7 for additional information regarding the common unit adjustment and related accounting. Due to the significant length of time between receiving the consideration from NCM and fulfillment of the related performance obligation, the ESA includes an implied significant financing component, as per the guidance in ASC Topic 606. The interest expense was calculated using the Company’s incremental borrowing rates at the time when the cash and each tranche of common units were received from NCM, which ranged from 4.4% to 8.0%. See Note 7 for table detailing activity with NCM, which includes interest revenue and expense recorded in 2018 and 2019 related to the significant financing component.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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