Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition

v3.19.3
Revenue Recognition
9 Months Ended
Sep. 30, 2019
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 revenues when the showtime for a purchased movie ticket has passed.  Concession revenues are recognized when sales are made at the registers.  Other revenues primarily consist of screen advertising, promotional income, studio trailer placements and transactional fees. The Company sells gift cards and discount ticket vouchers, the proceeds from which are recorded as current liabilities.  Revenues for gift cards and discount ticket vouchers are recognized when they are redeemed for movie tickets or concession items.  The Company offers a subscription program in the U.S. whereby patrons can pay a monthly fee to receive a monthly credit for use towards a future movie ticket purchase.  The Company records the monthly subscription program fees as current liabilities and records admissions revenues when the showtime for a movie ticket purchased with a credit has passed.  The Company also has loyalty programs in many of its locations that either have a prepaid annual membership fee or award points to customers as purchases are made.  For those loyalty programs that have an annual membership fee, the Company recognizes the fee collected as other revenues on a straight-line basis over the term of the membership.  For those loyalty programs that award points to customers based on their purchases, the Company records a portion of the original transaction proceeds as liabilities based on the number of reward points issued to customers and recognizes the deferred revenues when the customer redeems such points.  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. These advances are recognized on either a straight-line basis over the term of the contracts or as the Company has met its performance obligations in accordance with the terms of the contracts.  

Screen advertising revenues for the U.S. operating segment primarily relate to the ESA with NCM and the Company’s beverage concessionaire agreement. As discussed in Note 3 and Note 8, prior to September 17, 2019, such screen advertising was accounted for under ASC Topic 606, Revenue from Contracts with Customers, and effective upon the amendment of the ESA, NCM screen advertising was accounted for under ASC Topic 842. See table at Note 8 for screen advertising revenues recorded in other revenue under ASC Topic 606 prior to the amendment of the ESA and under ASC Topic 842 subsequent to the amendment of the ESA.  

Accounts receivable as of September 30, 2019 included approximately $29,719 of receivables related to contracts with customers.  The Company did not record any assets related to the costs to obtain or fulfill a contract with customers during the nine months ended September 30, 2019.

 

Disaggregation of Revenue

The following table presents revenues for the three and nine months ended September 30, 2019 and 2018, disaggregated based on major type of good or service and by reportable operating segment.

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30, 2019

 

 

September 30, 2019

 

 

U.S.

 

International

 

 

 

 

 

U.S.

 

International

 

 

 

 

 

Operating

 

Operating

 

 

 

 

 

Operating

 

Operating

 

 

 

 

Major Goods/Services

Segment (1)

 

Segment

 

Consolidated

 

 

Segment (1)

 

Segment

 

Consolidated

 

Admissions revenues

$

351,122

 

$

103,307

 

$

454,429

 

 

$

1,066,884

 

$

304,157

 

$

1,371,041

 

Concession revenues

 

230,415

 

 

59,062

 

 

289,477

 

 

 

704,727

 

 

181,356

 

 

886,083

 

Screen advertising, screen rental and promotional revenues

 

21,114

 

 

16,448

 

 

37,562

 

 

 

63,996

 

 

49,587

 

 

113,583

 

Other revenues

 

30,394

 

 

9,955

 

 

40,349

 

 

 

95,180

 

 

28,409

 

 

123,589

 

Total revenues

$

633,045

 

$

188,772

 

$

821,817

 

 

$

1,930,787

 

$

563,509

 

$

2,494,296

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30, 2018

 

 

September 30, 2018

 

 

U.S.

 

International

 

 

 

 

 

U.S.

 

International

 

 

 

 

 

Operating

 

Operating

 

 

 

 

 

Operating

 

Operating

 

 

 

 

Major Goods/Services

Segment (1)

 

Segment

 

Consolidated

 

 

Segment (1)

 

Segment

 

Consolidated

 

Admissions revenues

$

333,274

 

$

94,342

 

$

427,616

 

 

$

1,091,489

 

$

297,621

 

$

1,389,110

 

Concession revenues

 

207,960

 

 

56,205

 

 

264,165

 

 

 

661,328

 

 

169,915

 

 

831,243

 

Screen advertising and promotional revenues

 

19,010

 

 

13,420

 

 

32,430

 

 

 

58,240

 

 

43,135

 

 

101,375

 

Other revenues

 

22,031

 

 

7,993

 

 

30,024

 

 

 

76,635

 

 

24,896

 

 

101,531

 

Total revenues

$

582,275

 

$

171,960

 

$

754,235

 

 

$

1,887,692

 

$

535,567

 

$

2,423,259

 

 

(1)

U.S. segment revenues include eliminations of intercompany transactions with the international operating segment.  See Note 16 for additional information on intercompany eliminations.

The following table presents revenues for the three and nine months ended September 30, 2019 and 2018, disaggregated based on timing of revenue recognition.

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2019

 

 

September 30, 2019

 

 

 

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

 

$

610,063

 

$

169,171

 

$

779,234

 

 

$

1,860,828

 

$

504,702

 

$

2,365,530

 

Goods and services transferred over time

 

 

22,982

 

 

19,601

 

 

42,583

 

 

 

69,959

 

 

58,807

 

 

128,766

 

Total

 

$

633,045

 

$

188,772

 

$

821,817

 

 

$

1,930,787

 

$

563,509

 

$

2,494,296

 

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2018

 

 

September 30, 2018

 

 

 

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

 

$

561,849

 

$

155,291

 

$

717,140

 

 

$

1,824,138

 

$

482,790

 

$

2,306,928

 

Goods and services transferred over time

 

 

20,426

 

 

16,669

 

 

37,095

 

 

 

63,554

 

 

52,777

 

 

116,331

 

Total

 

$

582,275

 

$

171,960

 

$

754,235

 

 

$

1,887,692

 

$

535,567

 

$

2,423,259

 

 

(1)

U.S. segment revenues include eliminations of intercompany transactions with the international operating segment.  See Note 16 for additional information on intercompany eliminations.

Deferred Revenues

The following table presents changes in the Company’s advances and deferred revenues for the nine months ended September 30, 2019.  

 

 

NCM screen advertising advances (1)

 

 

Other

Deferred

Revenues (2)

 

 

Total

 

Balance at January 1, 2019

 

$

287,349

 

 

$

106,075

 

 

$

393,424

 

Amounts recognized as accounts receivable

 

 

 

 

 

10,186

 

 

 

10,186

 

Cash received from customers in advance

 

 

 

 

 

138,927

 

 

 

138,927

 

Common units received from NCM (see Note 8)

 

 

1,552

 

 

 

 

 

 

1,552

 

Revenue recognized during period

 

 

(11,916

)

 

 

(141,684

)

 

 

(153,600

)

Foreign currency translation adjustments

 

 

 

 

 

(1,321

)

 

 

(1,321

)

Balance at September 30, 2019

 

$

276,985

 

 

$

112,183

 

 

$

389,168

 

 

(1)

See Note 8 for the maturity of balance as of September 30, 2019.

 

(2)

Includes liabilities associated with outstanding gift cards and SuperSavers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising, screen rental and other promotional activities. 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 September 30, 2019 and when the Company expects to recognize this revenue.

 

 

Twelve Months Ended September 30,

 

 

 

 

 

 

 

 

 

Remaining Performance Obligations

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

Thereafter

 

 

Total

 

Deferred revenue

 

 

102,449

 

 

 

9,488

 

 

 

200

 

 

 

46

 

 

 

 

 

 

 

 

 

112,183