Annual report pursuant to Section 13 and 15(d)

Lease Accounting (Tables)

v3.20.4
Lease Accounting (Tables)
12 Months Ended
Dec. 31, 2020
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 the periods indicated.

 

 

 

 

As of

 

 

As of

 

Leases

Classification

 

December 31, 2019

 

 

December 31, 2020

 

Assets (1)

 

 

 

 

 

 

 

 

 

Operating lease assets

Operating lease assets

 

$

1,383,080

 

 

$

1,278,191

 

Finance lease assets

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

 

 

116,135

 

 

 

99,195

 

Total lease assets

 

 

$

1,499,215

 

 

$

1,377,386

 

 

 

 

 

 

 

 

 

 

 

Liabilities (1)

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

 

Operating

Current portion of operating lease obligations

 

$

217,406

 

 

$

208,593

 

Finance

Current portion of finance lease obligations

 

 

15,432

 

 

 

16,407

 

Noncurrent

 

 

 

 

 

 

 

 

 

Operating

Operating lease obligations, less current portion

 

 

1,223,462

 

 

 

1,138,142

 

Finance

Finance lease obligations, less current portion

 

 

141,017

 

 

 

124,609

 

Total lease liabilities

 

 

$

1,597,317

 

 

$

1,487,751

 

 

(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 the necessary notification is provided to the landlord.

(2)

Finance lease assets are net of accumulated amortization of $36,384 and $47,961 as of December 31, 2019 and 2020, respectively.

Schedule of Aggregate Lease Costs by Lease Classification

The following table represents the Company’s aggregate lease costs, by lease classification, for the periods indicated.

 

 

 

Year Ended

 

Year Ended

 

Lease Cost

Classification

December 31, 2019

 

December 31, 2020

 

Operating lease costs

 

 

 

 

 

 

 

Equipment (1)

Utilities and other

$

9,172

 

$

3,324

 

Real Estate (2)(3)

Facility lease expense

 

346,222

 

 

275,056

 

Total operating lease costs

 

$

355,394

 

$

278,380

 

 

 

 

 

 

 

 

 

Finance lease costs

 

 

 

 

 

 

 

Depreciation of leased assets

Depreciation and amortization

$

14,734

 

$

14,662

 

Interest on lease liabilities

Interest expense

 

7,786

 

 

7,014

 

Total finance lease costs

 

$

22,520

 

$

21,676

 

(1)

Includes approximately $4,700 and $(465) of short-term lease payments for the years ended December 31, 2019 and 2020, respectively.    The amount for the year ended December 31, 2020 was impacted by i) a decrease in short term lease payments while theatres were closed and ii) rent abatements on leases that were not recalculated in accordance with the FASB guidance discussed above, which resulted in variable rent credits in the amount of the rent abatements

(2)

Includes approximately $68,799 and $7,058 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 and 2020, respectively.  The amount for the year ended December 31, 2020 was impacted by rent abatements on leases that were not recalculated in accordance with the FASB guidance discussed above, which resulted in variable rent credits in the amount of the rent abatements.

(3)

Approximately $1,614 and $1,445 of lease payments are included in general and administrative expenses primarily related to office leases for the year ended December 31, 2019 and 2020, respectively.  

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, 2020.

 

 

 

Operating

 

Finance

 

 

 

 

Years Ending

 

Leases

 

Leases

 

Total

 

2021 (1)

 

$

268,390

 

$

22,671

 

$

291,061

 

2022 (1)

 

 

250,956

 

 

21,935

 

 

272,891

 

2023

 

 

225,840

 

 

21,246

 

 

247,086

 

2024

 

 

194,197

 

 

20,165

 

 

214,362

 

2025

 

 

166,131

 

 

18,380

 

 

184,511

 

After 2025

 

 

508,104

 

 

70,533

 

 

578,637

 

Total lease payments

 

$

1,613,618

 

$

174,930

 

$

1,788,548

 

Less: Interest

 

 

266,883

 

 

33,914

 

 

300,797

 

Present value of lease liabilities

 

$

1,346,735

 

$

141,016

 

$

1,487,751

 

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, 2020.

 

 

As of

 

Lease Term and Discount Rate

 

December 31, 2020

 

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

 

 

 

 

Operating leases - equipment

 

 

2.5

 

Operating leases - real estate

 

 

7.6

 

Finance leases - equipment

 

 

4.4

 

Finance leases - real estate

 

 

9.2

 

 

 

 

 

 

Weighted-average discount rate (2)

 

 

 

 

Operating leases - equipment

 

 

4.2

%

Operating leases - real estate

 

 

4.9

%

Finance leases - equipment

 

 

4.7

%

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 periods presented.  

 

 

 

Year Ended

 

 

Year Ended

 

Other Information

 

December 31, 2019

 

 

December 31, 2020

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

Cash outflows for operating leases

 

$

281,895

 

 

$

271,787

 

Cash outflows for finance leases - operating activities

 

$

7,576

 

 

$

6,985

 

Cash outflows for finance leases - financing activities

 

$

14,600

 

 

$

15,432

 

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

 

 

 

 

 

 

 

 

Operating lease liabilities - real estate

 

$

113,318

 

 

$

132,529

 

Operating lease liabilities - equipment

 

$

795

 

 

$

188

 

Finance lease liabilities

 

$

21,535

 

 

$