Summary of Activity With Equity Investee Included in the Company's Consolidated Financial Statements |
Summary of Activity with NCM
Below is a summary of activity with NCM included in the Company’s consolidated financial statements for the periods indicated. See Note 5 for discussion of revenue recognition.
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Investment in NCM
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NCM Screen Advertising Advances
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Distributions from NCM
|
|
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Equity
in (Earnings) Loss
|
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Other Revenue
|
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Interest Expense
- NCM (3)
|
|
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Cash Received
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Balance as of January 1, 2018
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|
$
|
200,550
|
|
|
$
|
(351,706
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Impact of adoption of ASC Topic 606 (2)
|
|
|
—
|
|
|
|
(9,288
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
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|
Receipt of common units due to annual common unit adjustment
|
|
|
5,012
|
|
|
|
(5,012
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
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Purchase of additional common units
|
|
|
78,393
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
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Revenues earned under ESA (1)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(31,867
|
)
|
|
|
19,724
|
|
|
|
12,143
|
|
Receipt of excess cash distributions
|
|
|
(19,786
|
)
|
|
|
—
|
|
|
|
(13,231
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
33,017
|
|
Receipt under tax receivable agreement
|
|
|
(2,419
|
)
|
|
|
—
|
|
|
|
(2,158
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,577
|
|
Equity in earnings
|
|
|
13,842
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(13,842
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
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Amortization of screen advertising advances
|
|
|
—
|
|
|
|
15,764
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(15,764
|
)
|
|
|
—
|
|
|
|
—
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Balance as of and for the twelve months ended December 31, 2018
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|
$
|
275,592
|
|
|
$
|
(350,242
|
)
|
|
$
|
(15,389
|
)
|
|
$
|
(13,842
|
)
|
|
$
|
(47,631
|
)
|
|
$
|
19,724.00
|
|
|
$
|
49,737
|
|
Receipt of common units due to annual common unit adjustment
|
|
|
1,552
|
|
|
|
(1,552
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
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Revenues earned under ESA (1) (3)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(13,782
|
)
|
|
|
—
|
|
|
|
13,782
|
|
Interest accrued related to significant financing component (2)
|
|
|
—
|
|
|
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(28,624
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
28,624
|
|
|
|
—
|
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Receipt of excess cash distributions
|
|
|
(23,452
|
)
|
|
|
—
|
|
|
|
(11,631
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
35,083
|
|
Receipt under tax receivable agreement
|
|
|
(2,492
|
)
|
|
|
—
|
|
|
|
(1,242
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,734
|
|
Equity in earnings
|
|
|
14,592
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(14,592
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
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|
Amortization of screen advertising advances
|
|
|
—
|
|
|
|
32,064
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(32,064
|
)
|
|
|
—
|
|
|
|
—
|
|
Balance as of and for the twelve months ended December 31, 2019
|
|
$
|
265,792
|
|
|
$
|
(348,354
|
)
|
|
$
|
(12,873
|
)
|
|
$
|
(14,592
|
)
|
|
$
|
(45,846
|
)
|
|
$
|
28,624
|
|
|
$
|
52,599
|
|
Receipt of common units due to annual common unit adjustment
|
|
|
3,620
|
|
|
|
(3,620
|
)
|
|
|
—
|
|
|
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—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
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Revenues earned under ESA (1)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,689
|
)
|
|
|
—
|
|
|
|
4,689
|
|
Interest accrued related to significant financing component (2)
|
|
|
—
|
|
|
|
(23,595
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
23,595
|
|
|
|
—
|
|
Receipt of excess cash distributions
|
|
|
(12,022
|
)
|
|
|
—
|
|
|
|
(5,914
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17,936
|
|
Receipt under tax receivable agreement
|
|
|
(2,146
|
)
|
|
|
—
|
|
|
|
(1,061
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,207
|
|
Equity in loss
|
|
|
(10,627
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
10,627
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Impairment of investment in NCM (4)
|
|
|
(92,655
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Amortization of screen advertising advances
|
|
|
—
|
|
|
|
31,314
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(31,314
|
)
|
|
|
—
|
|
|
|
—
|
|
Balance as of and for the twelve months ended December 31, 2020
|
|
$
|
151,962
|
|
|
$
|
(344,255
|
)
|
|
$
|
(6,975
|
)
|
|
$
|
10,627
|
|
|
$
|
(36,003
|
)
|
|
$
|
23,595
|
|
|
$
|
25,832
|
|
(1)
|
Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire. The amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire were approximately $11,965, $11,478 and $2,605 for the years ended December 31, 2018, 2019 and 2020, respectively.
|
(2)
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As a result of adoption of ASC Topic 606, the Company determined that the deferred revenue associated with the ESA and CUA agreement should be amortized on a straight-line basis versus the units of revenue method followed prior to adoption. In addition, the Company determined that a significant financing component existed for the ESA.
|
(3)
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Approximately $4,828 represents screen rental revenues earned under the amendment to the ESA. See Note 5.
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(4)
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Recorded in impairment of long-lived and other assets on the consolidated income statement for the year ended December 31, 2020. See further discussion below.
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Summary Financial Information |
The tables below present summary financial information for NCM for the periods indicated:
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
December 27, 2018
|
|
|
December 26, 2019
|
|
|
December 31, 2020
|
|
Revenues
|
|
$
|
441,400
|
|
|
$
|
444,800
|
|
|
$
|
89,887
|
|
Operating income (loss)
|
|
$
|
154,300
|
|
|
$
|
155,700
|
|
|
$
|
(59,671
|
)
|
Net income (loss)
|
|
$
|
98,400
|
|
|
$
|
98,800
|
|
|
$
|
(115,753
|
)
|
|
|
As of
|
|
|
As of
|
|
|
|
December 26, 2019
|
|
|
December 31, 2020
|
|
Current assets
|
|
$
|
185,400
|
|
|
$
|
142,566
|
|
Noncurrent assets
|
|
$
|
706,600
|
|
|
$
|
685,643
|
|
Current liabilities
|
|
$
|
125,500
|
|
|
$
|
46,872
|
|
Noncurrent liabilities
|
|
$
|
947,800
|
|
|
$
|
1,072,207
|
|
Members' deficit
|
|
$
|
(181,300
|
)
|
|
$
|
(290,870
|
)
|
|