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LEASE ACCOUNTING (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Operating and Finance Right-of-Use Assets and Lease Liabilities

The following table represents the operating and finance right-of-use assets and lease liabilities as of the periods indicated.


		As of		As of
Leases	Classification	December 31, 2021		December 31, 2022
Assets (1)
Operating lease assets	Operating lease right-of-use assets	$	1,230.8	$	1,102.7
Finance lease assets	Theatre properties and equipment, net of accumulated depreciation (2)		80.5		67.8
Total lease assets		$	1,311.3	$	1,170.5

Liabilities (1)
Current
Operating	Current portion of operating lease obligations	$	217.1	$	219.3
Finance	Current portion of finance lease obligations		14.6		14.4
Noncurrent
Operating	Operating lease obligations, less current portion		1,078.3		970.6
Finance	Finance lease obligations, less current portion		102.6		88.0
Total lease liabilities		$	1,412.6	$	1,292.3

(1)

The operating lease right-of-use assets and liabilities recorded on the Company’s consolidated balance sheets generally do not include renewal options that have not yet been exercised. The Company does not consider a lease renewal exercise as reasonably certain until immediately before the necessary notification is provided to the landlord after consideration of market conditions and performance of the theatre.

(2)

Finance lease assets are net of accumulated amortization of $57.8 and $62.5 as of December 31, 2021 and 2022, respectively.

Schedule of Aggregate Lease Costs by Lease Classification

The following table represents the Company’s aggregate lease costs, by lease classification, for the periods indicated.


		Year Ended		Year Ended		Year Ended
Lease Cost	Classification	December 31, 2020		December 31, 2021		December 31, 2022
Operating lease costs
Equipment (1)	Utilities and other	$	3.3	$	2.3	$	4.4
Real Estate (2)(3)	Facility lease expense		275.1		281.0		315.7
Total operating lease costs		$	278.4	$	283.3	$	320.1

Finance lease costs
Depreciation of leased assets	Depreciation and amortization	$	14.7	$	12.6	$	12.4
Interest on lease liabilities	Interest expense		7.0		5.9		5.3
Total finance lease costs		$	21.7	$	18.5	$	17.7

(1)

Includes approximately $(0.1), $1.8 and $3.9 of short-term lease payments for the years ended December 31, 2020, 2021 and 2022, respectively. The amount for the year ended December 31, 2020 was impacted by i) a decrease in short term lease payments while theatres

were closed and ii) rent abatements on leases that were not recalculated in accordance with the FASB guidance discussed above, which resulted in variable rent credits in the amount of the rent abatements.

(2)

Includes approximately $7.1, $11.8 and $36.4 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 years ended December 31, 2020, 2021 and 2022, respectively.

Approximately $1.4, $1.3 and $1.3 of lease payments are included in general and administrative expenses primarily related to office leases for the years ended December 31, 2020, 2021 and 2022, respectively.

Schedule of Maturity of Lease Liabilities by Lease Classification

The following table represents the maturity of lease liabilities, by lease classification, as of December 31, 2022.


	Operating		Finance
Years Ending	Leases		Leases
2023 (1)	$	276.6	$	19.0
2024		243.2		18.1
2025		216.2		16.4
2026		179.6		12.0
2027		137.3		12.0
Thereafter		382.0		46.7
Total lease payments	$	1,434.9	$	124.2
Less: Interest		245.0		21.8
Present value of lease liabilities	$	1,189.9	$	102.4

(1) Amounts do not include rent payments deferred under amendments as discussed at Lease Deferrals and Abatements above.

Schedule of Weighted-Average Remaining Lease Term and Discount Rate

The following table represents the weighted-average remaining lease term and discount rate, disaggregated by lease classification, as of December 31, 2022.


	As of
Lease Term and Discount Rate	December 31, 2022
Weighted-average remaining lease term (years) (1)
Operating leases - equipment		2.3
Operating leases - real estate		6.9
Finance leases - equipment		3.3
Finance leases - real estate		8.2

Weighted-average discount rate (2)
Operating leases - equipment		3.7	%
Operating leases - real estate		5.7	%
Finance leases - equipment		4.0	%
Finance leases - real estate		4.9	%

(1)

The lease assets and liabilities recorded on the Company’s consolidated balance sheets generally do not include renewal options that have not yet been executed. The Company does not consider a lease renewal exercise as reasonably certain until immediately before the necessary notification is provided to the landlord after consideration of market conditions and performance of the theatre.

(2)

The discount rate for each lease represents the incremental borrowing rate at which the Company would borrow, on a collateralized basis, over a similar term and at an amount equal to the lease payments in a similar economic environment.

Schedule of Minimum Cash Lease Payments

The following table represents the minimum cash lease payments included in the measurement of lease liabilities and the non-cash addition of right-of-use assets for the periods presented.


	Year Ended		Year Ended		Year Ended
Other Information	December 31, 2020		December 31, 2021		December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities
Cash outflows for operating leases	$	271.8	$	269.7	$	279.8
Cash outflows for finance leases - operating activities	$	7.0	$	5.9	$	5.3
Cash outflows for finance leases - financing activities	$	15.4	$	14.7	$	14.3
Non-cash amount of leased assets obtained in exchange for:
Operating lease liabilities	$	132.7	$	180.1	$	114.1
Finance lease liabilities	$	—	$	0.7	$	—