XML 23 R13.htm IDEA: XBRL DOCUMENT
v3.22.1

Long Term Debt | 3 Months Ended
--- | ---
Mar. 31, 2022
Debt Disclosure [Abstract] |
Long Term Debt Activity | 7. Long Term Debt Long-term debt consisted of the following for the periods presented:
| March 31, |  |  | December 31, |
| 2022 |  |  | 2021 |
Cinemark Holdings, Inc. 4.500% convertible senior notes due 2025 | $ | 460.0 |  |  | $ | 460.0 |
Cinemark USA, Inc. term loan due 2025 |  | 631.5 |  |  |  | 633.1 |
Cinemark USA, Inc. 8.750% senior secured notes due 2025 |  | 250.0 |  |  |  | 250.0 |
Cinemark USA, Inc. 5.875% senior notes due 2026 |  | 405.0 |  |  |  | 405.0 |
Cinemark USA, Inc. 5.250% senior notes due 2028 |  | 765.0 |  |  |  | 765.0 |
Other |  | 32.4 |  |  |  | 30.2 |
Total carrying value of long-term debt | $ | 2,543.9 |  |  | $ | 2,543.3 |
Less: Current portion |  | 27.2 |  |  |  | 24.3 |
Less: Debt issuance costs, net of accumulated amortization |  | 40.1 |  |  |  | 42.7 |
Long-term debt, less current portion, net of unamortized debt issuance costs | $ | 2,476.6 |  |  | $ | 2,476.3 |
Senior Secured Credit Facility Cinemark USA, Inc. has a senior secured credit facility that includes a $700.0 term loan and a $100.0 revolving credit line (the “Credit Agreement”). As of March 31, 2022, there was $631.5 outstanding under the term loan and no borrowings were outstanding under the revolving credit line. As of March 31, 2022, $100.0 was available for borrowing under the revolving credit line. Quarterly principal payments of $1.6 are due on the term loan through December 31, 2024, with a final principal payment of $613.4 due on March 29, 2025. The revolving credit line matures on November 28, 2024. The average interest rate applicable to outstanding term loan borrowings under the Credit Agreement as of March 31, 2022 was approximately 3.4% per annum, after giving effect to the interest rate swap agreements discussed below. Interest Rate Swap Agreements Below is a summary of the Company’s interest rate swap agreements, which are designated as cash flow hedges, as of March 31, 2022:
|  |  |  |  |  |  |  |  |  |  | Estimated |
|  |  |  |  |  |  |  |  |  |  | Fair Value at |
Notional |  |  |  |  |  |  |  |  |  |  | March 31, |
Amount |  |  | Effective Date |  | Pay Rate |  | Receive Rate |  | Expiration Date |  | 2022 (1) |
$ | 137.5 |  |  | December 31, 2018 |  | 2.12% |  | 1-Month LIBOR |  | December 31, 2024 |  | $ | 1.3 |
$ | 175.0 |  |  | December 31, 2018 |  | 2.12% |  | 1-Month LIBOR |  | December 31, 2024 |  |  | 1.6 |
$ | 137.5 |  |  | December 31, 2018 |  | 2.19% |  | 1-Month LIBOR |  | December 31, 2024 |  |  | 1.0 |
|  |  |  |  |  |  |  |  | Total |  | $ | 3.9 |
(1) Approximately $(1.7) of the total is included in accounts payable and accrued expenses and $5.6 is included in deferred charges and other assets, net on the condensed consolidated balance sheet as of March 31, 2022. Effective March 31, 2020, the Company amended and extended its three then existing interest rate swap agreements and entered into a fourth interest rate swap agreement, all of which are used to hedge a portion of the interest rate risk associated with the variable interest rates on the Company’s term loan debt and qualify for cash flow hedge accounting. Upon amending the interest rate swap agreements effective March 31, 2020, the Company determined that the interest payments hedged with the agreements are still probable to occur, therefore the loss that accumulated on the swaps prior to the amendments of $29.4 is being amortized to interest expense through December 31, 2022, the original maturity dates of the swaps. Approximately $1.1 was recorded in interest expense in the condensed consolidated income statement for the three months ended March 31, 2022 and the three months ended March 31, 2021. The fair values of the interest rate swaps are recorded on the Company’s condensed consolidated balance sheets as an asset or liability with the related gains or losses reported as a component of accumulated other comprehensive loss. The changes in fair value are reclassified from accumulated other comprehensive loss into earnings in the same period that the hedged items affect earnings. The valuation technique used to determine fair value is the income approach and, under this approach, the Company uses projected future interest rates as provided by counterparties to the interest rate swap agreements and the fixed rates that the Company is obligated to pay under the agreement. Therefore, the Company’s measurements use significant unobservable inputs, which fall in Level 2 of the U.S. GAAP hierarchy as defined by FASB ASC Topic 820-10-35. The Company is assessing the impact of reference rate reform, as well as the impact of ASU 2020-04 and ASU 2021-01, on the Company's interest rate swaps. See further discussion at Note 3. Fair Value of Long-Term Debt The Company estimates the fair value of its long-term debt primarily using quoted market prices, which fall under Level 2 of the U.S. GAAP fair value hierarchy as defined by ASC 820, Fair Value Measurement (“ASC Topic 820”). The table below presents the carrying value and fair value of the Company's long-term debt as of the periods presented:
|  | As of |
|  | March 31, 2022 |  |  | December 31, 2021 |
Carrying value (1) |  | $ | 2,543.9 |  |  | $ | 2,543.3 |
Fair value (2) |  | $ | 2,678.3 |  |  | $ | 2,749.8 |
(1) The carrying value excludes unamortized debt issuance costs. (2) Includes the fair value of the 4.500% convertible senior notes of $684.5 and $691.9 as of March 31, 2022 and December 31, 2021, respectively.

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

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration