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Impairment of Long-Lived Assets | 6 Months Ended
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Jun. 30, 2023
Impairment or Disposal of Tangible Assets Disclosure [Abstract] |
Impairment of Long-Lived Assets | 12. Impairment of Long-Lived Assets The Company performed a qualitative impairment analysis on its goodwill and tradename intangible assets as of June 30, 2023. As a result of the qualitative assessment, the Company noted no impairment indicators related to these assets as of June 30, 2023. The qualitative impairment analysis, by asset class, is described below: • Goodwill – Considers economic and market conditions, industry trading multiples and the impact of recent developments and events on estimated fair values as compared with the most recent quantitative assessment. • Tradename Intangible Assets – Considers recent developments that may impact revenue forecasts and other estimates as compared with the most recent quantitative assessment. The Company also performed a qualitative impairment analysis on its other long-lived assets, including theatre properties and right of-use assets, as of June 30, 2023 to determine whether indicators of potential impairment existed at the theatre level, which is the level at which the Company tests its other long-lived assets. The qualitative analysis considers relevant market transactions, industry trading multiples and recent developments that would impact the estimates of future cash flows at the theatre level. The Company then performed a quantitative impairment analysis for those theatres for which indicators of potential impairment were identified. The Company’s quantitative evaluation at the theatre level uses estimated undiscounted cash flows from continuing use through the remainder of the theatre’s useful life. The remainder of the theatre’s useful life for leased properties correlates with the remaining lease period, which includes the probability of the exercise of available renewal periods, and for owned properties represents the lesser of twenty years or the building’s remaining useful life. If the estimated undiscounted cash flows are not sufficient to recover a long-lived asset’s carrying value, the Company then compares the carrying value of the asset group (theatre) with its estimated fair value. Significant judgment is involved in estimating fair value, including management’s estimate of future theatre level cash flows for each of the Company's theatres based on projected box office. Fair value is estimated based on a multiple of cash flows. Management’s estimates, which fall under Level 3 of the U.S. GAAP fair value hierarchy, as defined by FASB ASC Topic 820-10-35, are based on projected operating performance, market transactions and industry trading multiples. See Note 1 and Note 12 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed February 24, 2023, for a further discussion of the Company’s impairment policy and a description of the qualitative and quantitative impairment assessments performed. The Company’s impairment charges were as follows for the three and six months ended June 30, 2023 and 2022:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
U.S. Segment |  |  |  |  |  |  |  |  |  |  |  |
Theatre properties |  | $ | 3.9 |  |  | $ | 2.5 |  |  | $ | 3.9 |  |  | $ | 2.5 |
Theatre operating lease right-of-use assets |  |  | 3.4 |  |  |  | 2.0 |  |  |  | 3.4 |  |  |  | 2.0 |
Investment in NCMI (1) |  |  | — |  |  |  | 86.8 |  |  |  | 0.7 |  |  |  | 86.8 |
U.S. total |  |  | 7.3 |  |  |  | 91.3 |  |  |  | 8.0 |  |  |  | 91.3 |
International segment |  |  |  |  |  |  |  |  |  |  |  |
Theatre properties |  |  | 0.6 |  |  |  | 0.7 |  |  |  | 0.6 |  |  |  | 0.7 |
Theatre operating lease right-of-use assets |  |  | 1.5 |  |  |  | 0.3 |  |  |  | 1.5 |  |  |  | 0.3 |
International total |  |  | 2.1 |  |  |  | 1.0 |  |  |  | 2.1 |  |  |  | 1.0 |
Total Impairment |  | $ | 9.4 |  |  | $ | 92.3 |  |  | $ | 10.1 |  |  | $ | 92.3 |
(1) See discussion at Impairment of NCMI Investment in Note 8.

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- Definition The entire disclosure for the details of the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Disclosure may also include a description of the impaired asset and facts and circumstances leading to the impairment, amount of the impairment loss and where the loss is located in the income statement, method(s) for determining fair value, and the segment in which the impaired asset is reported. + References No definition available. + Details
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