XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.23.3

Earnings (Loss) Per Share | 9 Months Ended
--- | ---
Sep. 30, 2023
Earnings Per Share [Abstract] |
Earnings (Loss) Per Share | 5. Earnings (Loss) Per Share The following table presents computations of basic and diluted earnings (loss) per share for Holdings:
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Numerator: |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to Cinemark Holdings, Inc. |  | $ | 90.2 |  |  | $ | (24.5 | ) |  | $ | 206.2 |  |  | $ | (171.9 | )
(Income) loss allocated to participating share-based awards (1) |  |  | (1.8 | ) |  |  | 0.4 |  |  |  | (3.6 | ) |  |  | 2.4 |
Basic net income (loss) attributable to common stockholders |  | $ | 88.4 |  |  | $ | (24.1 | ) |  | $ | 202.6 |  |  | $ | (169.5 | )
Add: Interest expense on convertible notes, net of tax (3) |  |  | 4.4 |  |  |  | — |  |  |  | 14.0 |  |  |  | — |
Diluted net income (loss) attributable to common stockholders |  | $ | 92.8 |  |  | $ | (24.1 | ) |  | $ | 216.6 |  |  | $ | (169.5 | )
Denominator: |  |  |  |  |  |  |  |  |  |  |  |
Basic weighted average shares outstanding |  |  | 119.2 |  |  |  | 118.4 |  |  |  | 119.0 |  |  |  | 118.1 |
Common equivalent shares for restricted stock units (2) |  |  | 0.8 |  |  |  | — |  |  |  | 0.8 |  |  |  | — |
Common equivalent shares for convertible notes (3) |  |  | 32.0 |  |  |  | — |  |  |  | 32.0 |  |  |  | — |
Common equivalent shares for warrants (4) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Diluted weighted average shares outstanding |  |  | 152.0 |  |  |  | 118.4 |  |  |  | 151.8 |  |  |  | 118.1 |
Basic earnings (loss) per share attributable to common stockholders |  | $ | 0.74 |  |  | $ | (0.20 | ) |  | $ | 1.70 |  |  | $ | (1.43 | )
Diluted earnings (loss) per share attributable to common stockholders |  | $ | 0.61 |  |  | $ | (0.20 | ) |  | $ | 1.43 |  |  | $ | (1.43 | )
(1) For the three months ended September 30, 2023 and 2022, a weighted average of approximately 2.42 shares and 1.90 shares of restricted stock, respectively, were considered participating securities. For the nine months ended September 30, 2023 and 2022, a weighted average of approximately 2.14 shares and 1.69 shares of restricted stock, respectively, were considered participating securities. (2) For the three and nine months ended September 30, 2022, 0.18 and 0.39 common equivalent shares for restricted stock units, respectively, were excluded because they were anti-dilutive. (3) For the three and nine months ended September 30, 2022 diluted loss per share excludes the conversion of the 4.50% Convertible Senior Notes into 32.0 shares of common stock, as they would be anti-dilutive. See further discussion below. (4) For all periods presented, diluted earnings (loss) per share excludes the warrants, as they would be anti-dilutive. Share-based awards Holdings considers its unvested share-based awards, which contain non-forfeitable rights to dividends, participating securities, and includes such participating securities in its computation of earnings (loss) per share pursuant to the two-class method. Basic earnings (loss) per share for the two classes of stock (common stock and unvested restricted stock) is calculated by dividing net income (loss) by the weighted average number of shares of common stock and unvested restricted stock outstanding during the reporting period. Diluted earnings (loss) per share is calculated using the weighted average number of shares of common stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the two-class method and the treasury stock method. Convertible notes, hedges and warrants The 4.50% Convertible Senior Notes, discussed further in Note 14 of the Company’s Annual Report on Form 10-K filed February 24, 2023, may be considered dilutive in periods in which Holdings has net income. The impact of such dilution on earnings per share is calculated under the if-converted method, which requires that all of the shares of Holdings' common stock issuable upon conversion of the 4.50% Convertible Senior Notes be included in the calculation of diluted earnings per share assuming conversion at the beginning of the reporting period. Also, the interest expense, net of tax, related to the 4.50% Convertible Senior Notes is excluded from the calculation of diluted net income (loss) attributable to common stockholders assuming conversion of the 4.50% Convertible Senior Notes at the beginning of the reporting period. The closing price of Holdings' common stock did not exceed the strike price of $18.66 per share (130% of the initial exercise price of $14.35 per share) during at least 20 of the last 30 trading days of the quarter ended September 30, 2023 and, therefore, the 4.50% Convertible Senior Notes will not be convertible during the fourth quarter of 2023. The if-converted value of the 4.50% Convertible Senior Notes, based on the weighted average closing price of Holdings common stock for the third quarter of 2023, exceeded the aggregate outstanding principal value of the notes by $16.4 as of September 30, 2023. Holdings entered into hedge transactions with counterparties in connection with the issuance of the 4.50% Convertible Senior Notes. The convertible note hedge transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the 4.50% Convertible Senior Notes, the number of shares of Holdings' common stock underlying the 4.50% Convertible Notes, which initially gives Holdings the option to purchase approximately 32.0 shares of its common stock at a price of approximately $14.35 per share. Concurrently with entering into the convertible note hedge transactions, Holdings also entered into warrant transactions with each option counterparty whereby Holdings sold to such option counterparty warrants to purchase, subject to customary anti-dilution adjustments, up to the same number of shares of Holdings' common stock, which initially gives the option counterparties the option to purchase approximately 32.0 shares at a price of approximately $22.08 per share. The economic effect of these transactions is to effectively raise the strike price of the 4.50% Convertible Senior Notes from approximately $18.66 per share of Holdings' common stock to approximately $22.08 per share.

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

X
- Definition The entire disclosure for earnings per share. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 260 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482662/260-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 260 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//260/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 260 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482662/260-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 260 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482662/260-10-50-3 + Details
Name: | us-gaap_EarningsPerShareTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration