v3.19.3.a.u2
REVENUE RECOGNITION (Tables)
12 Months Ended
Dec. 31, 2019
REVENUE RECOGNITION  
Summary of cumulative effect of the changes made for the adoption of the new revenue standard

(In millions)

Balance at
December 31, 2017 Without Adoption of ASC 606

Adjustments Due to ASC 606

Balance at
January 1, 2018

Assets:

Other long-term assets

$

475.9

$

11.1

$

487.0

Current liabilities:

Deferred revenues and income

401.0

(10.0)

391.0

Long-term liabilities:

Exhibitor services agreement

530.9

52.9

583.8

Stockholders' equity:

Accumulated deficit

(207.9)

(31.8)

(239.7)

The disclosure of the impact of the adoption of ASC 606 on the Company’s consolidated statement of operations is as follows:

Year Ended December 31, 2018

(In millions)

Without Adoption of ASC 606

Adjustments

As Reported

Revenues:

Admissions

$

3,386.4

$

(1.4)

$

3,385.0

Food and beverage

1,671.9

(0.4)

1,671.5

Other theatre

356.8

47.5

404.3

Total revenues

5,415.1

45.7

5,460.8

Operating costs and expenses:

Operating expense, excluding depreciation and amortization

1,636.7

18.0

1,654.7

Non-cash interest expense related to NCM exhibitor service agreement

41.5

41.5

Net earnings

123.9

(13.8)

110.1

Schedule of disaggregated revenue

Year Ended

(In millions)

December 31, 2019

December 31, 2018

Major revenue types

Admissions

$

3,301.3

$

3,385.0

Food and beverage

1,719.6

1,671.5

Other theatre:

Advertising

143.0

142.2

Other theatre

307.1

262.1

Other theatre

450.1

404.3

Total revenues

$

5,471.0

$

5,460.8

Year Ended

(In millions)

December 31, 2019

December 31, 2018

Timing of revenue recognition

Products and services transferred at a point in time

$

5,071.0

$

5,218.7

Products and services transferred over time (1)

400.0

242.1

Total revenues

$

5,471.0

$

5,460.8

(1)Amounts primarily include subscription and advertising revenues.

Schedule of receivables and deferred revenue income

(In millions)

December 31, 2019

December 31, 2018

Current assets:

Receivables related to contracts with customers

$

160.3

$

183.2

Miscellaneous receivables

93.9

76.3

Receivables, net

$

254.2

$

259.5

(In millions)

December 31, 2019

December 31, 2018

Current liabilities:

Deferred revenue related to contracts with customers

$

447.1

$

412.8

Miscellaneous deferred income

2.1

2.0

Deferred revenue and income

$

449.2

$

414.8

Schedule of changes in contract liabilities

Deferred Revenues

Related to Contracts

(In millions)

with Customers

Ending balance at December 31, 2017

$

376.1

Cumulative effect of initially applying ASC 606

(10.0)

Cash received in advance (1)

463.4

Customer loyalty rewards accumulated, net of expirations:

Admission revenues (2)

30.0

Food and beverage (2)

55.2

Other theatre (2)

8.9

Reclassification to revenue as the result of performance obligations satisfied:

Admission revenues (3)

(329.9)

Food and beverage (3)

(82.3)

Other theatre (4)

(97.0)

Business combination - Nordic purchase price allocation

(2.3)

Foreign currency translation adjustment

0.7

Ending balance at December 31, 2018

$

412.8

Cash received in advance (1)

457.1

Customer loyalty rewards accumulated, net of expirations:

Admission revenues (2)

29.4

Food and beverage (2)

69.7

Other theatre (2)

2.8

Reclassification to revenue as the result of performance obligations satisfied:

Admission revenues (3)

(307.8)

Food and beverage (3)

(116.7)

Other theatre (4)

(95.6)

Disposition of Austria theatres

(1.2)

Foreign currency translation adjustment

(3.4)

Ending balance at December 31, 2019

$

447.1

(1)Includes movie tickets, food and beverage, gift cards, exchange tickets, and AMC Stubs® loyalty membership fees.
(2)Amount of rewards accumulated, net of expirations, that are attributed to AMC Stubs® and other loyalty programs.
(3)Amount of rewards redeemed that are attributed to gift cards, exchange tickets, movie tickets, AMC Stubs® loyalty programs and other loyalty programs.
(4)Amounts relate to income from non-redeemed or partially redeemed gift cards, non-redeemed exchange tickets, AMC Stubs® loyalty membership fees and other loyalty programs.

The significant changes to contract liabilities included in the exhibitor services agreement (“ESA”), classified as long-term liabilities in the consolidated balance sheets, are as follows:

Exhibitor Services

(In millions)

Agreement

Balance as of December 31, 2017

$

530.9

Cumulative effect of initially applying ASC 606

52.9

Common Unit Adjustment – surrender of common units (1)

(5.2)

Reclassification of the beginning balance to other theatre revenue, as the result of performance obligations satisfied

(14.6)

Beginning balance

$

564.0

Common Unit Adjustment–additions of common units (1)

1.4

Reclassification of the beginning balance to other theatre revenue, as the result of performance obligations satisfied

(15.7)

Balance as of December 31, 2019

$

549.7

(1)Represents the fair value amount of the NCM common units that were surrendered due to the annual Common Unit Adjustment. Such amount will increase the deferred revenues that are being amortized to other theatre revenues over the remainder of the 30-year term of the ESA ending in February 2037. See Note 6Investments for further information.
Schedule of components of liabilities included in the exhibitor services agreement

(In millions)

Exhibitor services agreement

Year Ended 2020

$

16.9

Year Ended 2021

18.1

Year Ended 2022

19.5

Year Ended 2023

20.9

Year Ended 2024

22.5

Years Ended 2025 through February 2037

451.8

Total

$

549.7