The Company leases theatres and equipment under operating and finance leases. The Company typically does not believe that exercise of the renewal options is reasonably certain at the lease commencement and, therefore, considers the initial base term as the lease term. Lease terms vary but generally the leases provide for fixed and escalating rentals, contingent escalating rentals based on the Consumer Price Index and other indexes not to exceed certain specified amounts and variable rentals based on a percentage of revenues. The Company often receives contributions from landlords for renovations at existing locations. The Company records the amounts received from landlords as an adjustment to the right-of-use asset and amortizes the balance as a reduction to rent expense over the base term of the lease agreement. Equipment leases primarily consist of food and beverage equipment.

The Company received, or is in process of negotiating, rent concessions provided by the lessors that aided, or will aid, in mitigating the economic effects of COVID-19. These concessions primarily consist of rent abatements and the deferral of rent payments. In instances where there were no substantive changes to the lease terms, i.e., modifications that resulted in total payments of the modified lease being substantially the same or less than the total payments of the existing lease, the Company elected the relief as provided by the FASB staff related to the accounting for certain lease concessions. The Company elected not to account for these concessions as a lease modification, and therefore the Company has remeasured the related lease liability and right-of-use asset but did not reassess the lease classification or change the discount rate to the current rate in effect upon the remeasurement. The deferred payment amounts have been recorded in the Company’s lease liabilities to reflect the change in the timing of payments. The deferred payment amounts included in current maturities of operating lease liabilities and long-term operating lease liabilities are reflected in the condensed consolidated statements of cash flows as part of the change in accrued expenses and other liabilities. Those leases that did not meet the criteria for treatment under the FASB relief were evaluated as lease modifications. The deferred payment amounts included in accounts payable for contractual rent amounts due and not paid are reflected in accounts payable on the condensed consolidated balance sheets and in the condensed consolidated statements of cash flows as part of the change in accounts payable. In addition, the Company included deferred lease payments in operating lease right-of-use assets as a result of lease remeasurements.

A summary of deferred payment amounts related to rent obligations for which payments have been deferred to 2021 and future years are provided below:

(1)

During the three months ended March 31, 2021, the increase in fixed operating lease deferred amounts is net of $19.1 million of decreases in the deferred balances as of December 31, 2020 related to payments and abatements.

(2)

During the three months ended March 31, 2021, decreases in variable lease deferred amounts were primarily due to resolution of contingencies, therefore, variable amounts became fixed and were reclassified to fixed operating lease deferred amounts.

The following table reflects the lease costs for the three months ended March 31, 2021 and March 31, 2020:


		Three Months Ended
	Consolidated Statement	March 31,		March 31,
(In millions)	of Operations	2021		2020
Operating lease cost
Theatre properties	Rent	$	175.5	$	216.9
Theatre properties	Operating expense		0.8		2.2
Equipment	Operating expense		2.3		3.9
Office and other	General and administrative: other		1.4		1.3
Finance lease cost
Amortization of finance lease assets	Depreciation and amortization		1.3		1.9
Interest expense on lease liabilities	Finance lease obligations		1.4		1.6
Variable lease cost
Theatre properties	Rent		16.6		20.9
Equipment	Operating expense		0.2		7.0
Total lease cost		$	199.5	$	255.7

Cash flow and supplemental information is presented below:


	Three Months Ended
	March 31,		March 31,
(In millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in finance leases	$	(1.0)	$	(1.6)
Operating cash flows used in operating leases		(136.7)		(240.3)
Financing cash flows used in finance leases		(1.9)		(2.3)

Landlord contributions:
Operating cashflows provided by operating leases		3.7		16.1
Supplemental disclosure of noncash leasing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities (1)		23.5		69.7

(1)

Includes lease extensions and option exercises.

The following table represents the weighted-average remaining lease term and discount rate as of March 31, 2021:


	As of March 31, 2021
	Weighted Average		Weighted Average
	Remaining		Discount
Lease Term and Discount Rate	Lease Term (years)		Rate
Operating leases		10.2		9.9%
Finance leases		13.1		6.4%

Minimum annual payments required under existing operating and finance leases and the net present value thereof as of March 31, 2021 are as follows:


	Operating Lease		Financing Lease
(In millions)	Payments		Payments
Nine months ending December 31, 2021 (1)	$	799.5	$	13.6
2022 (1)		999.0		15.0
2023		895.9		11.6
2024		792.0		9.8
2025		756.5		9.2
2026		691.1		9.0
Thereafter		3,719.8		66.5
Total lease payments		8,653.8		134.7
Less imputed interest		(3,153.8)		(44.4)
Total	$	5,500.0	$	90.3

(1)

Does not include amounts recorded in accounts payable for deferred rent.

As of March 31, 2021, the Company had signed additional operating lease agreements for 6 theatres that have not yet commenced of approximately $150.0 million, which are expected to commence between 2021 and 2024, and carry lease terms of approximately 5 to 20 years. The timing of lease commencement is dependent on the landlord providing the Company with control and access to the related facility.