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Revenue Recognition | 6 Months Ended
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Jun. 30, 2023
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | 4. Revenue Recognition The Company’s patrons have the option to purchase movie tickets well in advance of a movie showtime or right before the movie showtime, or at any point in between those two timeframes depending on seat availability. The Company recognizes such admissions revenue when the showtime for a purchased movie ticket has passed. Concession revenue is recognized when products are sold to the consumer, or if purchased in advance, based on the showtime associated with the customer’s movie ticket. Other revenue primarily consists of screen advertising, screen rental revenue, promotional income, studio trailer placements, revenue from electronic video games located in our theatres, and transactional fees. Except for National CineMedia, LLC (“NCM”) screen advertising advances discussed below in Note 8, these revenues are generally recognized when the Company has met its performance obligations. The Company sells gift cards and discount ticket vouchers called Supersavers, the proceeds from which are recorded as deferred revenue. Deferred revenue for gift cards and discount ticket vouchers is recognized when they are redeemed for concession items or, if redeemed for movie tickets, when the showtime has passed. The Company generally records breakage revenue on gift cards and discount ticket vouchers based on redemption activity and historical experience with unused balances. The Company offers a subscription program in the U.S. whereby patrons can pay a monthly or annual fee to receive a monthly credit for use towards a future movie ticket purchase. The Company records the subscription program fees as deferred revenue and records admissions revenue when the showtime for a movie ticket purchased with a credit has passed. The Company has loyalty programs in the U.S. and many of its international locations that either have a prepaid annual fee or award points to customers as purchases are made. For those loyalty programs that have a prepaid annual fee, the Company recognizes the fee collected as other revenue on a straight-line basis over the annual membership period. For those loyalty programs that award points to customers based on their purchases, the Company records a portion of the original transaction proceeds as deferred revenue based on the number of reward points issued to customers and recognizes the deferred revenue when the customer redeems such points. The value of loyalty points issued is based on the estimated fair value of the rewards offered. The Company records breakage revenue generally upon the expiration of loyalty points and subscription credits as the Company does not yet have sufficient historical data related to the redemption patterns for these programs to estimate breakage. Advances collected on concession and other contracts are deferred and recognized during the period in which the Company satisfies the related performance obligations, which may differ from the period in which the advances are collected. Accounts receivable as of June 30, 2023 and December 31, 2022 included approximately $38.2 and $22.9, respectively, of receivables related to contracts with customers. The Company did no t record any assets related to the costs to obtain or fulfill a contract with customers during the six months ended June 30, 2023. Disaggregation of Revenue The following tables present revenue disaggregated based on major type of good or service and by reportable operating segment.
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2023 |  |  | June 30, 2023 |
|  | U.S. |  |  | International |  |  |  |  |  | U.S. |  |  | International |  |  |  |
|  | Operating |  |  | Operating |  |  |  |  |  | Operating |  |  | Operating |  |  |  |
|  | Segment (1) |  |  | Segment |  |  | Consolidated |  |  | Segment (1) |  |  | Segment |  |  | Consolidated |
Admissions revenue |  | $ | 373.4 |  |  | $ | 105.0 |  |  | $ | 478.4 |  |  | $ | 618.1 |  |  | $ | 171.3 |  |  | $ | 789.4 |
Concession revenue |  |  | 296.3 |  |  |  | 77.1 |  |  |  | 373.4 |  |  |  | 483.1 |  |  |  | 126.1 |  |  |  | 609.2 |
Screen advertising, screen rental and promotional revenue (2) |  |  | 24.7 |  |  |  | 13.5 |  |  |  | 38.2 |  |  |  | 46.5 |  |  |  | 22.8 |  |  |  | 69.3 |
Other revenue |  |  | 40.5 |  |  |  | 11.8 |  |  |  | 52.3 |  |  |  | 66.3 |  |  |  | 18.8 |  |  |  | 85.1 |
Total revenue |  | $ | 734.9 |  |  | $ | 207.4 |  |  | $ | 942.3 |  |  | $ | 1,214.0 |  |  | $ | 339.0 |  |  | $ | 1,553.0 |
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2022 |  |  | June 30, 2022 |
|  | U.S. |  |  | International |  |  |  |  |  | U.S. |  |  | International |  |  |  |
|  | Operating |  |  | Operating |  |  |  |  |  | Operating |  |  | Operating |  |  |  |
|  | Segment (1) |  |  | Segment |  |  | Consolidated |  |  | Segment (1) |  |  | Segment |  |  | Consolidated |
Admissions revenue |  | $ | 309.7 |  |  | $ | 72.2 |  |  | $ | 381.9 |  |  | $ | 501.5 |  |  | $ | 116.2 |  |  | $ | 617.7 |
Concession revenue |  |  | 234.6 |  |  |  | 51.4 |  |  |  | 286.0 |  |  |  | 375.7 |  |  |  | 83.3 |  |  |  | 459.0 |
Screen advertising, screen rental and promotional revenue (2) |  |  | 21.4 |  |  |  | 11.3 |  |  |  | 32.7 |  |  |  | 40.1 |  |  |  | 19.4 |  |  |  | 59.5 |
Other revenue |  |  | 35.1 |  |  |  | 8.4 |  |  |  | 43.5 |  |  |  | 55.5 |  |  |  | 12.9 |  |  |  | 68.4 |
Total revenue |  | $ | 600.8 |  |  | $ | 143.3 |  |  | $ | 744.1 |  |  | $ | 972.8 |  |  | $ | 231.8 |  |  | $ | 1,204.6 |
(1) U.S. segment revenue excludes intercompany transactions with the international operating segment. See Note 16 for the amount of intercompany eliminations for the periods presented. (2) Amount includes amortization of NCM screen advertising advances. See S creen Advertising Advances and Other Deferred Revenue below. The following tables present revenue disaggregated based on timing of recognition and by reportable operating segment.
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2023 |  |  | June 30, 2023 |
|  | U.S. |  |  | International |  |  |  |  |  | U.S. |  |  | International |  |  |  |
|  | Operating |  |  | Operating |  |  |  |  |  | Operating |  |  | Operating |  |  |  |
|  | Segment (1) |  |  | Segment |  |  | Consolidated |  |  | Segment (1) |  |  | Segment |  |  | Consolidated |
Goods and services transferred at a point in time |  | $ | 714.7 |  |  | $ | 192.8 |  |  | $ | 907.5 |  |  | $ | 1,162.5 |  |  | $ | 312.0 |  |  | $ | 1,474.5 |
Goods and services transferred over time (2) |  |  | 20.2 |  |  |  | 14.6 |  |  |  | 34.8 |  |  |  | 51.5 |  |  |  | 27.0 |  |  |  | 78.5 |
Total |  | $ | 734.9 |  |  | $ | 207.4 |  |  | $ | 942.3 |  |  | $ | 1,214.0 |  |  | $ | 339.0 |  |  | $ | 1,553.0 |
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2022 |  |  | June 30, 2022 |
|  | U.S. |  |  | International |  |  |  |  |  | U.S. |  |  | International |  |  |  |
|  | Operating |  |  | Operating |  |  |  |  |  | Operating |  |  | Operating |  |  |  |
|  | Segment (1) |  |  | Segment |  |  | Consolidated |  |  | Segment (1) |  |  | Segment |  |  | Consolidated |
Goods and services transferred at a point in time |  | $ | 573.8 |  |  | $ | 129.8 |  |  | $ | 703.6 |  |  | $ | 922.1 |  |  | $ | 208.4 |  |  | $ | 1,130.5 |
Goods and services transferred over time (2) |  |  | 27.0 |  |  |  | 13.5 |  |  |  | 40.5 |  |  |  | 50.7 |  |  |  | 23.4 |  |  |  | 74.1 |
Total |  | $ | 600.8 |  |  | $ | 143.3 |  |  | $ | 744.1 |  |  | $ | 972.8 |  |  | $ | 231.8 |  |  | $ | 1,204.6 |
(1) U.S. segment revenue excludes intercompany transactions with the international operating segment. See Note 16 for the amount of intercompany eliminations for the periods presented. (2) Amount includes amortization of NCM screen advertising advances. See Screen Advertising Advances and Other Deferred Revenue below. Screen Advertising Advances and Other Deferred Revenue The following table presents changes in the Company’s deferred revenue for the six months ended June 30, 2023.
|  | NCM screen advertising advances (1) |  |  | Other Deferred Revenue (2) |
Balance at January 1, 2023 |  | $ | 338.2 |  |  | $ | 194.9 |
Amounts recognized as accounts receivable |  |  | — |  |  |  | 0.8 |
Cash received from customers in advance |  |  | — |  |  |  | 143.8 |
Interest accrued related to significant financing component |  |  | 11.4 |  |  |  | — |
Revenue recognized during period |  |  | (16.2 | ) |  |  | (145.6 | )
Foreign currency translation adjustments |  |  | — |  |  |  | (0.6 | )
Balance at June 30, 2023 |  | $ | 333.4 |  |  | $ | 193.3 |
(1) See Note 8 for the maturity of NCM screen advertising advances as of June 30, 2023. (2) Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenue not yet recognized for screen advertising and other promotional activities. Amounts are classified as accounts payable and accrued expenses or other long-term liabilities on the condensed consolidated balance sheet. The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of June 30, 2023 and when the Company expects to recognize this revenue.
|  |  | Twelve Months Ended June 30, |  |  |  |  |  |  |
Remaining Performance Obligations |  |  | 2024 |  |  | 2025 |  |  | Thereafter |  |  | Total |
Other deferred revenue |  |  | $ | 170.9 |  |  | $ | 22.4 |  |  | $ | — |  |  | $ | 193.3 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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