XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.21.2

Lease Accounting | 9 Months Ended
--- | ---
Sep. 30, 2021
Leases [Abstract] |
Lease Accounting | 4. Lease Accounting Lease Deferrals and Abatements Upon the temporary closure of theatres in March 2020, the Company initiated discussions with landlords to negotiate the deferral of rent and other lease-related payments with certain of its landlords. The amendments signed with the landlords involved varying concessions, including the abatement of rent payments during closure, alternative rent terms during closure, deferral of all or a portion of rent payments to later periods and deferrals of rent payments to later periods combined with an early exercise of an existing renewal option or extension of the lease term. In some cases, the Company was entitled to rent-free periods while theatres were closed due to local regulations in certain locations. In April 2020, the FASB staff released guidance indicating that in response to the COVID-19 crisis, an entity would not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in Topic 842 to those contracts. The election is available for concessions related to the effects of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. For example, this election is available for concessions that result in the total payments required by the modified contract being substantially the same as or less than total payments required by the original contract. The Company elected to not remeasure the related lease liabilities and right-of-use assets for those leases where the concessions and deferrals did not result in a significant change in total payments under the lease and where the remaining lease term did not change as a result of the negotiation. For those leases that were renewed or extended as a result of the negotiation to defer rent payments, the Company recalculated the related lease liability and right-of-use asset based on the new terms. Total remaining deferred payments as of September 30, 2021 were $42,954, of which $37,587 were included in accounts payable and accrued expenses and $5,367 were included in other long-term liabilities in the condensed consolidated balance sheet. The following table represents the Company’s aggregate lease costs, by lease classification, for the periods presented.
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30 |  |  | September 30 |
Lease Cost | Classification | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Operating lease costs |  |  |  |  |  |  |  |  |  |  |  |
Equipment (1) | Utilities and other | $ | 699 |  |  | $ | 823 |  |  | $ | 1,567 |  |  | $ | 2,495 |
Real Estate (2)(3) | Facility lease expense |  | 69,492 |  |  |  | 65,970 |  |  |  | 200,930 |  |  |  | 211,088 |
Total operating lease costs |  | $ | 70,191 |  |  | $ | 66,793 |  |  | $ | 202,497 |  |  | $ | 213,583 |
Finance lease costs |  |  |  |  |  |  |  |  |  |  |  |
Amortization of leased assets | Depreciation and amortization | $ | 3,142 |  |  | $ | 3,665 |  |  | $ | 9,533 |  |  | $ | 11,052 |
Interest on lease liabilities | Interest expense |  | 1,449 |  |  |  | 1,725 |  |  |  | 4,510 |  |  |  | 5,333 |
Total finance lease costs |  | $ | 4,591 |  |  | $ | 5,390 |  |  | $ | 14,043 |  |  | $ | 16,385 |
(1) Inclu des approximately $566 and $(267) of short-term lease payments for the three months ended September 30, 2021 and 2020, respectively. Includes approximately $1,194 and $(839) of short-term lease payments for the nine months ended September 30, 2021 and 2020, respectively. (2) Includes approximately $1,862 and $(191) 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 for the three months ended September 30, 2021 and 2020, respectively. Includes approximately $(81) and $9,146 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 for the nine months ended September 30, 2021 and 2020, respectively. (3) Approximately $318 and $335 of lease payments are included in general and administrative expenses primarily related to office leases for the three months ended September 30, 2021 and 2020, respectively. Approximately $967 and $1,122 of lease payments are included in general and administrative expenses primarily related to office leases for the nine months ended September 30, 2021 and 2020, respectively. The following table represents the minimum cash lease payments recorded as lease expense, interest expense and a reduction of lease liabilities, as well as the non-cash addition of lease assets for the periods indicated.
|  | Nine Months Ended |
|  | September 30, |
Other Information |  | 2021 |  |  | 2020 |
Contractual cash payments included in the measurement of lease liabilities(1) |  |  |  |  |  |
Cash outflows for operating leases |  | $ | 201,384 |  |  | $ | 205,276 |
Cash outflows for finance leases - operating activities |  | $ | 4,504 |  |  | $ | 5,304 |
Cash outflows for finance leases - financing activities |  | $ | 11,045 |  |  | $ | 11,497 |
Non-cash amount of leased assets obtained in exchange for: |  |  |  |  |  |
Operating lease liability additions, net |  | $ | 109,088 |  |  | $ | 84,241 |
(1) As discussed above at Lease Deferrals and Abatements, the Company negotiated certain lease amendments to defer and/or abate contractual payments as a result of the COVID-19 pandemic and temporary closure of theatres. In accordance with FASB Staff guidance, the Company did not recalculate lease liabilities and right of use assets for amendments that did not result in a substantial increase in the rights of the lessor or the obligations of the lessee. Contractual payment amounts for the nine months ended September 30, 2021 above are prior to the impact of deferred or abated rent amounts. As of September 30, 2021, the Company had signed lease agreements with total contractual minimum lease payments of approximately $144,845 related to theatre leases that had not yet commenced. The timing of lease commencement is dependent on the completion of construction of the related theatre facility. Additionally, these amounts are often based on estimated square footage and costs to construct each facility and may be subject to adjustment upon final completion of each construction project. In accordance with ASC Topic 842, fixed minimum lease payments related to these theatre leases which have not yet commenced are excluded from the right-of-use assets and lease liabilities as of September 30, 2021.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration