Annual report pursuant to Section 13 and 15(d)

REVENUE RECOGNITION

v3.20.4
REVENUE RECOGNITION
12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Revenue Recognition

5.

REVENUE RECOGNITION

Revenue Recognition Policy

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 when tickets are put on sale and seat availability.  The Company recognizes such admissions revenues when the showtime for a purchased movie ticket has passed.  Concession revenues are recognized when products are sold to the consumer or, if pre-ordered, after the associated pick-up date has passed.  Other revenues primarily consist of screen advertising and screen rental revenues, promotional income, studio trailer placements and transactional fees. The Company sells gift cards and discount ticket vouchers, the proceeds from which are recorded as deferred revenues.  Deferred 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 deferred revenues and records admissions revenues when the showtime for a movie ticket purchased with a credit has passed.  The Company has loyalty programs in the U.S. and many of its international 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 deferred revenues based on the number of reward points issued to customers and recognizes the deferred revenues when the customer redeems such points.  The value of loyalty points issued is based on the estimated fair value of the rewards offered.  The Company generally records breakage revenue on gift cards and discount ticket vouchers generally based on redemption activity and historical experience with unused balances.  The Company records breakage revenue upon the expiration of loyalty points and subscription credits.  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 meets its performance obligations in accordance with the terms of the contracts.

Screen advertising and screen rental revenues for the U.S. operating segment primarily relate to the ESA with NCM and the Company’s agreement with its beverage concessionaire.  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 screen rental revenues recorded in other revenue under ASC Topic 842 subsequent to the amendment of the ESA.  

 

Accounts receivable included approximately $31,620 and  $6,232 of receivables related to contracts with customers as of December 31, 2019 and 2020, respectively.  The Company did not record any assets related to the costs to obtain or fulfill a contract with customers during the year ended December 31, 2020.

 

Disaggregation of Revenue

The following tables present revenues for the periods indicated, disaggregated based on major type of good or service and by reportable operating segment.

 

 

Twelve Months Ended

 

 

 

December 31, 2020

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

 

Operating

 

 

Operating

 

 

 

 

 

Major Goods/Services

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Admissions revenues

 

$

291,636

 

 

$

64,872

 

 

$

356,508

 

Concession revenues

 

 

189,561

 

 

 

41,485

 

 

 

231,046

 

Screen advertising, screen rental and promotional revenues

 

 

46,199

 

 

 

16,332

 

 

 

62,531

 

Other revenues

 

 

29,513

 

 

 

6,712

 

 

 

36,225

 

Total revenues

 

$

556,909

 

 

$

129,401

 

 

$

686,310

 

 

 

 

 

Twelve Months Ended

 

 

 

December 31, 2019

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

 

Operating

 

 

Operating

 

 

 

 

 

Major Goods/Services

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Admissions revenues

 

$

1,431,790

 

 

$

373,531

 

 

$

1,805,321

 

Concession revenues

 

 

936,241

 

 

 

224,842

 

 

 

1,161,083

 

Screen advertising, screen rental and promotional revenues

 

 

128,839

 

 

 

35,888

 

 

 

164,727

 

Other revenues

 

 

84,033

 

 

 

67,935

 

 

 

151,968

 

Total revenues

 

$

2,580,903

 

 

$

702,196

 

 

$

3,283,099

 

 

 

 

Twelve Months Ended

 

 

 

December 31, 2018

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

 

Operating

 

 

Operating

 

 

 

 

 

Major Goods/Services

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Admissions revenues

 

$

1,461,151

 

 

$

373,022

 

 

$

1,834,173

 

Concession revenues

 

 

892,391

 

 

 

216,402

 

 

 

1,108,793

 

Screen advertising, screen rental and promotional revenues

 

 

78,591

 

 

 

61,269

 

 

 

139,860

 

Other revenues

 

 

106,824

 

 

 

32,085

 

 

 

138,909

 

Total revenues

 

$

2,538,957

 

 

$

682,778

 

 

$

3,221,735

 

 

(1)

U.S. segment revenues exclude intercompany transactions with the international operating segment.  See Note 21 for additional information on intercompany eliminations.

The following tables present revenues for the periods indicated, disaggregated based on timing of revenue recognition (as discussed above).

 

 

Twelve Months Ended

 

 

 

December 31, 2020

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

 

Operating

 

 

Operating

 

 

 

 

 

 

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Goods and services transferred at a point in time

 

$

497,338

 

 

$

109,997

 

 

$

607,335

 

Goods and services transferred over  time

 

 

59,571

 

 

 

19,404

 

 

 

78,975

 

Total

 

$

556,909

 

 

$

129,401

 

 

$

686,310

 

 

 

 

Twelve Months Ended

 

 

 

December 31, 2019

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

 

Operating

 

 

Operating

 

 

 

 

 

 

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Goods and services transferred at a point in time

 

$

2,488,716

 

 

$

621,785

 

 

$

3,110,501

 

Goods and services transferred over time

 

 

92,187

 

 

 

80,411

 

 

 

172,598

 

Total

 

$

2,580,903

 

 

$

702,196

 

 

$

3,283,099

 

 

 

 

Twelve Months Ended

 

 

 

December 31, 2018

 

 

 

U.S.

 

 

International

 

 

 

 

 

 

 

Operating

 

 

Operating

 

 

 

 

 

 

 

Segment (1)

 

 

Segment

 

 

Consolidated

 

Goods and services transferred at a point in time

 

$

2,453,313

 

 

$

608,347

 

 

$

3,061,660

 

Goods and services transferred over time

 

 

85,644

 

 

 

74,431

 

 

 

160,075

 

Total

 

$

2,538,957

 

 

$

682,778

 

 

$

3,221,735

 

 

 

(1)

U.S. segment revenues exclude intercompany transactions with the international operating segment.  See Note 21 for additional information on intercompany eliminations.

Screen Advertising Advances and Other Deferred Revenues

The following table presents changes in the Company’s deferred revenues for the year ended December 31, 2020.  

Deferred Revenues

 

NCM Screen Advertising Advances (1)

 

 

Other

Deferred

Revenues (2)

 

 

Total

 

Balance at January 1, 2020

 

$

348,354

 

 

$

138,426

 

 

$

486,780

 

Amounts recognized as accounts receivable

 

 

 

 

 

2,915

 

 

 

2,915

 

Cash received from customers in advance

 

 

 

 

 

56,772

 

 

 

56,772

 

Common units received from NCM (see Note 8)

 

 

3,620

 

 

 

 

 

 

3,620

 

Interest accrued related to significant financing component

 

 

23,595

 

 

 

 

 

 

23,595

 

Revenue recognized during period

 

 

(31,314

)

 

 

(57,625

)

 

 

(88,939

)

Foreign currency translation adjustments

 

 

 

 

 

(1,658

)

 

 

(1,658

)

Balance at December 31, 2020

 

$

344,255

 

 

$

138,830

 

 

$

483,085

 

 

(1)

See Significant Financing Component discussion below.  See Note 8 for the maturity of balances as of December 31, 2020.  

 

(2)

Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues not yet recognized for screen advertising and other promotional activities. Amount is classified as accounts payable and accrued expenses or other long-term liabilities on the consolidated balance sheet.

The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2020 and when the Company expects to recognize this revenue.

 

 

Twelve Months Ended December 31,

 

 

 

 

 

 

 

 

 

Remaining Performance Obligations

 

2021

 

 

2022

 

 

2023

 

2024

 

 

2025

 

 

Thereafter

 

 

Total

 

Deferred revenue - other

 

$

124,326

 

 

 

14,504

 

 

 

 

 

 

 

 

 

 

 

 

 

$

138,830