NCM operates a digital in-theater network in the U.S. for providing cinema advertising. The Company has an investment in NCM’s parent National CineMedia, Inc. (“NCMI”). Below is a summary of the changes to the Company’s investment in NCMI and NCM screen advertising advances for the six months ended June 30, 2025:


	Investment in NCMI			NCM Screen Advertising Advances (1)

Balance at January 1, 2025	$	29.0		$	(318.5	)
Interest accrued related to significant financing component		—			(10.7	)
Unrealized loss on fair market value adjustment of investment in NCMI		(7.8	)		—
Amortization of screen advertising advances		—			16.3
Balance at June 30, 2025	$	21.2		$	(312.9	)

(1)

See “NCM Screen Advertising Advances and Other Deferred Revenue” in Note 4 for the remaining maturity of NCM screen advertising advances as of June 30, 2025.

As discussed in Note 8 to the Company’s Annual Report on Form 10-K filed February 19, 2025, the Company accounts for its investment in NCMI under the fair value method. The Company recognized unrealized losses of $4.3 and $7.8 on its investment in NCMI in the Company’s condensed consolidated statements of income for the three and six months ended June 30, 2025, respectively. The Company recognized an unrealized loss of $3.3 and an unrealized gain of $1.1 on its investment in NCMI in the Company’s condensed consolidated statements of income for the three and six months ended June 30, 2024, respectively.

The Company is a party to an Exhibitor Services Agreement (“ESA”) with NCM, pursuant to which NCM primarily provides screen advertising to the Company’s theaters through its branded “Noovie” pre-show entertainment program and also handles lobby promotions and displays for the Company’s theaters. The Company receives a monthly theater access fee for participation in the NCM network and also earns screen advertising or screen rental revenue on a per patron basis. During the six months ended June 30, 2025 and 2024, the Company recognized screen rental revenue under the ESA of $10.5 and $10.4, respectively, which includes the per patron and per digital screen theater access fees, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire of approximately $4.2 and $3.7, respectively. As of June 30, 2025 and December 31, 2024, the Company had a receivable from NCM of $2.2 and $2.1, respectively.

As discussed in Note 8 to the Company’s Annual Report on Form 10-K filed February 19, 2025, the Company’s ESA with NCM includes an implied significant financing component associated with the NCM screen advertising advances included above. The amortization of the screen advertising advances is recorded in “Other revenue” in the Company’s condensed consolidated statements of income. As a result of the significant financing component, the Company recognized incremental screen rental revenue and interest expense of $16.3 and $10.7, respectively, during the six months ended June 30, 2025 and incremental screen rental revenue and interest expense of $16.2 and $11.1, respectively, during the six months ended June 30, 2024.

Below is a summary of the activity for each of the Company’s investments in other affiliates for the six months ended June 30, 2025. See Note 9 to the consolidated financial statements in the Company’s Annual Report on Form 10-K filed February 19, 2025 for a further discussion of these investments.


	AC JV, LLC			DCDC		FE Concepts			Total
Balance at January 1, 2025	$	4.1		$	2.6		19.5		$	26.2
Equity income		2.6			0.3		0.6			3.5
Cash distributions received		(2.7	)		—		(4.0	)		(6.7	)
Balance at June 30, 2025	$	4.0		$	2.9	$	16.1		$	23.0

Below is a summary of transactions with each of the Company’s other affiliates for the three and six months ended June 30, 2025 and 2024:


		Three Months Ended				Six Months Ended
Investee	Transactions	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
AC JV, LLC	Event fees paid (1)	$	9.0	$	4.4	$	11.7	$	11.5
DCDC	Content delivery fees paid (1)	$	0.2	$	0.2	$	0.3	$	0.3

(1)

Included in film rentals and advertising costs on the condensed consolidated statements of income.