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OTHER INVESTMENTS | 12 Months Ended
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Dec. 31, 2021
Financial Support for Nonconsolidated Legal Entity [Abstract] |
OTHER INVESTMENTS | 9. OTHER INVESTMENTS Below is a summary of activity for each of the Company’s other investments for the periods indicated:
|  | DCIP |  |  | AC JV, LLC |  |  | DCDC |  |  | FE Concepts |  |  | Other |  |  | Total |
Balance at January 1, 2019 |  | $ | 125,252 |  |  | $ | 5,266 |  |  | $ | 2,255 |  |  | $ | 19,918 |  |  | $ | 4,075 |  |  | $ | 156,766 |
Equity in income (loss) |  |  | 23,281 |  |  |  | 3,276 |  |  |  | 1,120 |  |  |  | (399 | ) |  |  | — |  |  |  | 27,278 |
Equity in comprehensive loss |  |  | (141 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (141 | )
Cash distributions received |  |  | (23,696 | ) |  |  | (3,520 | ) |  |  | (206 | ) |  |  | — |  |  |  | — |  |  |  | (27,422 | )
Other (1) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,196 | ) |  |  | (1,196 | )
Balance at December 31, 2019 |  | $ | 124,696 |  |  | $ | 5,022 |  |  | $ | 3,169 |  |  | $ | 19,519 |  |  | $ | 2,879 |  |  | $ | 155,285 |
Equity in loss |  |  | (24,559 | ) |  |  | (1,277 | ) |  |  | (1,036 | ) |  |  | (1,246 | ) |  |  | — |  |  |  | (28,118 | )
Cash contributions |  |  | 50 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 50 |
Cash distributions received |  |  | (10,383 | ) |  |  | — |  |  |  | (878 | ) |  |  | — |  |  |  | — |  |  |  | (11,261 | )
Non-cash distribution received (2) |  |  | (89,804 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (89,804 | )
Other (3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,426 | ) |  |  | (2,426 | )
Balance at December 31, 2020 |  | $ | — |  |  | $ | 3,745 |  |  | $ | 1,255 |  |  | $ | 18,273 |  |  | $ | 453 |  |  | $ | 23,726 |
Equity in income (loss) |  |  | — |  |  |  | (34 | ) |  |  | 583 |  |  |  | 1,005 |  |  |  | — |  |  |  | 1,554 |
Other (1) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (75 | ) |  |  | (75 | )
Balance at December 31, 2021 |  | $ | — |  |  | $ | 3,711 |  |  | $ | 1,838 |  |  | $ | 19,278 |  |  | $ | 378 |  |  | $ | 25,205 |
(1) Consists primarily of mark-to-market adjustment on an investment in marketable securities. (2) Consists of projectors distributed to the Company from DCIP as discussed below. (3) Consists primarily of the impairment of a cost method investment in the year ended December 31, 2020 (see Note 11 for discussion of impairments recorded) and mark-to-market adjustment on an investment in marketable securities. Digital Cinema Implementation Partners LLC (“DCIP”) On February 12, 2007, the Company, AMC and Regal (the “Exhibitors”) entered into a joint venture known as DCIP to facilitate the implementation of digital cinema in the Company’s theatres and to establish agreements with major motion picture studios for the financing of digital cinema. On March 10, 2010, DCIP and its subsidiaries completed an initial financing transaction to enable the purchase, deployment and leasing of digital projection systems to the Exhibitors under equipment lease and installation agreements. On March 31, 2011, DCIP obtained incremental financing necessary to complete the deployment of digital projection systems. DCIP also entered into long-term Digital Cinema Deployment Agreements (“DCDAs”) with six major motion picture studios pursuant to which Kasima LLC, one of DCIP’s subsidiaries, receives a virtual print fee ("VPF") each time the studio books a film or certain other content on the leased digital projection systems. Other content distributors entered into similar DCDAs that provide for the payment of VPFs for bookings of the distributor's content on a leased digital projection system. The DCDAs end on the earlier to occur of (i) the tenth anniversary of the "mean deployment date" for all digital projection systems scheduled to be deployed over a period of up to five years, or (ii) the date DCIP achieves "cost recoupment", each as defined in the DCDAs. Cost recoupment occurs when revenues attributable to the digital projection systems exceed the financing, deployment, administration and other costs associated with the purchase of the digital projection systems. The DCDA’s expired in October 2021. Pursuant to the operating agreement between the Exhibitors and DCIP, DCIP began to distribute excess cash generated from their operations to the Exhibitors during 2019. As the DCDA’s have expired and the MELA between the Company and Kasima has been terminated, as discussed below, DCIP and its subsidiaries no longer have regular operations, and final distributions are expected to be made to the Company during the first half of 2022. Below is summary financial information for DCIP as of and for the years periods indicated:
|  | Year ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
Revenues |  | $ | 171,531 |  |  | $ | 30,561 |  |  | $ | 54,383 |
Operating income (loss) |  | $ | 99,812 |  |  | $ | (105,691 | ) |  | $ | 43,062 |
Net income (loss) |  | $ | 95,820 |  |  | $ | (114,243 | ) |  | $ | 45,323 |
|  | As of |
|  | December 31, 2020 |  |  | December 31, 2021 |
Current assets |  | $ | 36,372 |  |  | $ | 22,947 |
Noncurrent assets |  | $ | 205 |  |  | $ | — |
Current liabilities |  | $ | 39,844 |  |  | $ | 11,631 |
Noncurrent liabilities |  | $ | 687 |  |  | $ | — |
Members' equity (deficit) |  | $ | (3,954 | ) |  | $ | 11,316 |
As of December 31, 2021, the Company had a 33% voting interest in DCIP and a 24.3% economic interest in DCIP. Prior to the distribution received during November 2020, as discussed below, the Company accounted for its investment in DCIP and its subsidiaries under the equity method of accounting. Distribution of Digital Projectors from DCIP Through October 31, 2020, the Company leased digital projection systems under a master equipment lease agreement with Kasima LLC (“Kasima”), which is an indirect subsidiary of DCIP and a related party to the Company. The Company amended the master equipment lease agreement (“MELA”) with Kasima effective November 1, 2020, which resulted in the termination of the MELA and a lease termination fee to be paid by the Company on a monthly basis until a) cost recoupment is met or b) the DCDA agreements between DCIP and the major studios have been terminated. Upon termination of the MELA, DCIP distributed the digital projection equipment to the Company. The Company paid the monthly lease termination fee through October 2021. The Company accounted for the lease termination and projector distribution during the year ended December 31, 2020 as follows: • The Company wrote off the operating lease right of use assets and lease liabilities of $7,468 and $14,102, respectively, and recorded a gain of $6,634 in gain (loss) on sale of assets and other. • The Company recorded a lease termination liability of $4,169 and a corresponding loss in gain (loss) on sale of assets and other. The lease termination payments were paid in full during the year ended December 31, 2021. • The Company recorded the fair value of the projectors received from DCIP of $102,719 as equipment, with a corresponding reduction in its investment in DCIP of $89,804 and a $12,915 non-cash distribution reflected in non-cash distributions from DCIP on the consolidate statements of income (loss). In accordance with ASC 323-10-35, since the non-cash distribution exceeded the book value of its investment in DCIP, the Company suspended equity method accounting. The Company will resume equity method accounting if the value of its investment in DCIP exceeds the sum of the excess noncash distribution noted above and any future excess cash distributions. Cash distributions prior to the suspension of equity method accounting were recorded as a reduction of the Company's investment in DCIP during the years ended December 31, 2019 and 2020. Additional distributions received after the suspension of equity method accounting were recorded as cash distributions from DCIP on the consolidated statement of income for the year ended December 31, 2021. Summary of DCIP Transactions In addition to the activity presented in the other investments table above, the Company had the following transactions with DCIP during the periods indicated:
|  | Year Ended December 31, |
|  | 2019 |  |  | 2020 |  |  | 2021 |
Equipment lease payments (1)(2) |  | $ | 4,399 |  |  | $ | 1,729 |  |  | $ | — |
Warranty reimbursements from DCIP (2) |  | $ | (11,800 | ) |  | $ | (6,997 | ) |  | $ | (798 | )
Management services fees (2) |  | $ | 596 |  |  | $ | 208 |  |  | $ | 49 |
Cash distributions from DCIP (3) |  | $ | 23,696 |  |  | $ | 10,383 |  |  | $ | 13,139 |
Non-cash distributions from DCIP (4) |  | $ | — |  |  | $ | 12,915 |  |  | $ | — |
(1) Excludes lease termination payments of $695 and $3,895 made during the years ended December 31, 2020 and 2021, respectively. See discussion of MELA termination at Distribution of Digital Projectors above. (2) Amounts reflected in utilities and other costs on the consolidated statements of income (loss). (3) Recorded as a reduction in the Company's investment in DCIP for the years ended December 31, 2019 and 2020. Recorded in cash distributions from DCIP on the consolidated statements of income (loss) for the year ended December 31, 2021. See discussion at Distribution of Projectors from DCIP above. (4) Recorded as non-cash distributions from DCIP on the consolidated statements of income (loss). See discussion at Distribution of Projectors from DCIP above. AC JV, LLC During December 2013, the Company, Regal, AMC (the “AC Founding Members”) and NCM entered into a series of agreements that resulted in the formation of AC JV, LLC (“AC”), a joint venture that owns “Fathom Events” (consisting of Fathom Events and Fathom Consumer Events) formerly operated by NCM. The Fathom Events business focuses on the marketing and distribution of live and pre-recorded entertainment programming to various theatre operators to provide additional programs to augment their feature film schedule. The Company paid event fees to AC of $15,376, $3,740 and $6,161 for the years ended December 31, 2019, 2020 and 2021, respectively, which are included in film rentals and advertising costs on the consolidated statements of income (loss). The Company accounts for its investment in AC under the equity method of accounting. Digital Cinema Distribution Coalition The Company is a party to a joint venture with certain exhibitors and distributors called Digital Cinema Distribution Coalition (“DCDC”). DCDC operates a satellite distribution network that distributes all digital content to U.S. theatres via satellite. The Company has an approximate 14.6% ownership in DCDC. The Company paid approximately $896, $428 and $574 to DCDC during the years ended December 31, 2019, 2020 and 2021, respectively, related to content delivery services, which is included in film rentals and advertising costs on the consolidated statements of income (loss). The Company accounts for its investment in DCDC under the equity method of accounting. FE Concepts, LLC During April 2018, the Company, through its wholly-owned indirect subsidiary CNMK Texas Properties, LLC (“CNMK”), formed a joint venture, FE Concepts, LLC (“FE Concepts”) with AWSR Investments, LLC (“AWSR”), an entity owned by Lee Roy Mitchell and Tandy Mitchell. In December of 2019, FE Concepts opened a family entertainment center that offers bowling, gaming, movies and other amenities. The Company and AWSR each invested approximately $20,000 and each have a 50% voting interest in FE Concepts. The Company accounts for its investment in FE Concepts under the equity method of accounting. The Company has a theatre services agreement with FE Concepts under which it receives service fees for providing film booking and equipment monitoring services for the facility. The Company recorded $64, $34 and $62 of related service fees during the years ended December 31, 2019, 2020 and 2021, respectively. Additional Considerations Each of the investments above have been adversely impacted by the COVID-19 pandemic (see Note 3). The Company does not believe that any resulting decline in value of the underlying investments is other than temporary as the Company and other industry participants, who also have equity ownership interests in certain of the above investments, have reopened theatres and new film content has been released on a more consistent basis and theatre attendance has improved. The Company expects the industry to recover gradually over time. The Company performed a qualitative impairment analysis for its equity investments during the fourth quarter of 2021. Based on the analysis performed, no impairment was recorded for the year ended December 31, 2021

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- Definition The entire disclosure for the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 + Details
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