IMPAIRMENT OF LONG-LIVED AND OTHER ASSETS

12 Months Ended

Dec. 31, 2022

Impairment or Disposal of Tangible Assets Disclosure [Abstract]

IMPAIRMENT OF LONG-LIVED AND OTHER ASSETS

12.

IMPAIRMENT OF LONG-LIVED AND OTHER ASSETS

The Company reviews for impairment indicators related to its long-lived assets on a quarterly basis and goodwill on an annual basis or whenever events or changes in circumstances indicate the carrying amount of those assets may not be fully recoverable. The following table is a summary of the evaluations performed during 2022 by asset classification.


	Asset	Impairment	Valuation	Valuation
	Category	Test	Approach	Multiple
First and second quarters
	Goodwill	Qualitative	N/A	N/A
	Tradename intangible assets	Qualitative	N/A	N/A
	Other long-lived assets	Qualitative	N/A	N/A

Third quarter
	Goodwill	Qualitative	N/A	N/A
	Tradename intangible assets	Qualitative	N/A	N/A
	Other long-lived assets	Qualitative	Market	2.2 to 6 times

Fourth quarter
	Goodwill	Quantitative	Market and Income	2.2 to 7 times
	Tradename intangible assets	Quantitative	Income	N/A
	Other long-lived assets	Quantitative	Market	2.2 to 6 times

See Note 1 for a discussion of the Company’s impairment policy and a description of qualitative and quantitative impairment assessments.

Below is a summary of impairment charges for the periods indicated:


	Year Ended
	December 31,
	2020	2021	2022
U.S. segment
Theatre properties	$12.4	$6.4	$19.7
Theatre operating lease right-of-use assets	13.2	6.8	34.0
Investment in NCM (1)	92.7	—	113.2
Other	2.5	—	3.9
U.S. total	120.8	13.2	170.8

International segment
Theatre properties	10.0	4.0	2.2
Theatre operating lease right-of-use assets	5.0	3.2	1.1
Goodwill	16.1	—	—
Intangible assets, net	0.8	0.4	—
International total	31.9	7.6	3.3

Total impairment	$152.7	$20.8	$174.1

(1)

See discussion at Fair Value of NCM Investment in Note 9.

For the years ended December 31, 2020, 2021 and 2022, impairment charges were primarily due to the prolonged impact of the COVID-19 pandemic, as discussed in Note 3. Additionally, impairment charges recorded for the year ended December 31, 2022 reflected the recovery levels and the impact on estimated cash flows for specific assets.