Annual report pursuant to Section 13 and 15(d)

Adoption of ASC Topic 842 - Lease Accounting (Tables)

v3.19.3.a.u2
Adoption of ASC Topic 842 - Lease Accounting (Tables)
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Schedule of Operating and Finance Right-of-Use Assets and Lease Liabilities

The following table represents the operating and finance right-of-use assets and lease liabilities as of December 31, 2019.

 

 

 

 

As of

 

Leases

Classification

 

December 31, 2019

 

Assets (1)

 

 

 

 

 

Operating lease assets

Operating lease assets

 

$

1,383,080

 

Finance lease assets

Theatre properties and equipment, net of accumulated depreciation (2)

 

 

116,135

 

Total lease assets

 

 

$

1,499,215

 

 

 

 

 

 

 

Liabilities (1)

 

 

 

 

 

Current

 

 

 

 

 

Operating

Current portion of operating lease obligations

 

$

217,406

 

Finance

Current portion of finance lease obligations

 

 

15,432

 

Noncurrent

 

 

 

 

 

Operating

Operating lease obligations, less current portion

 

 

1,223,462

 

Finance

Finance lease obligations, less current portion

 

 

141,017

 

Total lease liabilities

 

 

$

1,597,317

 

 

(1)

The operating lease right-of-use assets and liabilities recorded on the Company’s consolidated balance sheet generally do not include renewal options that have not yet been exercised.  The Company does not consider a lease renewal as reasonably certain until immediately before the necessary notification is provided to the landlord.

(2)

Finance lease assets are net of accumulated amortization of $36,384 as of December 31, 2019.

Schedule of Aggregate Lease Costs by Lease Classification

The following table represents the Company’s aggregate lease costs, by lease classification, for the year ended December 31, 2019.

 

 

 

Year Ended

 

Lease Cost

Classification

December 31, 2019

 

Operating lease costs

 

 

 

 

Equipment (1)

Utilities and other

$

9,172

 

Real Estate (2)(3)

Facility lease expense

 

346,222

 

Total operating lease costs

 

$

355,394

 

 

 

 

 

 

Finance lease costs

 

 

 

 

Depreciation of leased assets

Depreciation and amortization

$

14,734

 

Interest on lease liabilities

Interest expense

 

7,786

 

Total finance lease costs

 

$

22,520

 

(1)

Includes approximately $4,700 of short-term lease payments for the year ended December 31, 2019.  

(2)

Includes approximately $68,799 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the year ended December 31, 2019

(3)

Approximately $1,614 of lease payments are included in general and administrative expenses primarily related to office leases for the year ended December 31, 2019.  

Schedule of Maturity of Lease Liabilities by Lease Classification

The following table represents the maturity of lease liabilities, by lease classification, as of December 31, 2019.

 

 

 

Operating

 

Finance

 

 

 

 

Years Ending

 

Leases

 

Leases

 

Total

 

2020

 

$

280,268

 

$

22,416

 

$

302,684

 

2021

 

 

263,978

 

 

22,671

 

 

286,649

 

2022

 

 

235,266

 

 

21,935

 

 

257,201

 

2023

 

 

205,210

 

 

21,246

 

 

226,456

 

2024

 

 

166,233

 

 

20,165

 

 

186,398

 

After 2024

 

 

580,852

 

 

88,913

 

 

669,765

 

Total lease payments

 

$

1,731,807

 

$

197,346

 

$

1,929,153

 

Less: Interest

 

 

290,939

 

 

40,897

 

 

331,836

 

Present value of lease liabilities

 

$

1,440,868

 

$

156,449

 

$

1,597,317

 

Estimated Future Minimum Lease Payments Under Operating Leases

The following table represents future minimum lease payments under noncancelable operating and capital leases at December 31, 2018 as presented in the Company’s Annual Report on Form 10-K filed February 28, 2019:

 

 

 

Operating

 

 

Capital

 

Years Ending

 

Leases

 

 

Leases

 

2019

 

$

253,323

 

 

$

42,434

 

2020

 

 

242,336

 

 

 

41,502

 

2021

 

 

230,396

 

 

 

34,589

 

2022

 

 

204,628

 

 

 

32,462

 

2023

 

 

176,802

 

 

 

28,534

 

Thereafter

 

 

677,091

 

 

 

166,375

 

Total

 

$

1,784,576

 

 

 

345,896

 

Amounts representing interest payments

 

 

 

 

 

 

(86,364

)

Present value of future minimum payments

 

 

 

 

 

 

259,532

 

Current portion of capital lease obligations

 

 

 

 

 

 

(27,065

)

Capital lease obligations, less current portion

 

 

 

 

 

$

232,467

 

Schedule of Weighted-Average Remaining Lease Term and Discount Rate

The following table represents the weighted-average remaining lease term and discount rate, disaggregated by lease classification, as of December 31, 2019.

 

 

As of

 

Lease Term and Discount Rate

 

December 31, 2019

 

Weighted-average remaining lease term (years) (1)

 

 

 

 

Operating leases - equipment

 

 

3.9

 

Operating leases - real estate

 

 

7.9

 

Finance leases - equipment

 

 

5.3

 

Finance leases - real estate

 

 

10.0

 

 

 

 

 

 

Weighted-average discount rate (2)

 

 

 

 

Operating leases - equipment

 

 

4.3

%

Operating leases - real estate

 

 

4.8

%

Finance leases - equipment

 

 

4.6

%

Finance leases - real estate

 

 

4.8

%

 

(1)

The lease assets and liabilities recorded on the Company’s consolidated balance sheet generally do not include renewal options that have not yet been executed.  The Company does not consider a lease renewal exercise as reasonably certain until immediately before the necessary notification is provided to the landlord.

 

 

(2)

The discount rate for each lease represents the incremental borrowing rate at which the Company would borrow, on a collateralized basis, over a similar term and at an amount equal to the lease payments in a similar economic environment.

 

Schedule of Minimum Cash Lease Payments

The following table represents the minimum cash lease payments included in the measurement of lease liabilities and the non-cash addition of right-of-use assets for the twelve months ended December 31, 2019.

 

 

 

Year Ended

 

Other Information

 

December 31, 2019

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

Cash outflows for operating leases

 

$

281,895

 

Cash outflows for finance leases - operating activities

 

$

7,575

 

Cash outflows for finance leases - financing activities

 

$

14,600

 

Non-cash amount of leased assets obtained in exchange for:

 

 

 

 

Operating lease liabilities - real estate

 

$

113,318

 

Operating lease liabilities - equipment

 

$

795

 

Finance lease liabilities

 

$

21,535