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.  

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.