THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES |
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| Schedule of theatre operations |
| | | | | | | | | | | | As of | | As of | | As of | | As of | | | | January 1, | | March 31, | | June 30, | | September 30, | | Theatre Operations: | | 2021 | | 2021 | | 2021 | | 2021 | | Percentage of theatres operated - Domestic | | 66.8 | % | 99.2 | % | 99.8 | % | 99.8 | % | Percentage of theatres operated - International | | 30.3 | % | 27.3 | % | 94.9 | % | 99.2 | % | Percentage of theatres operated - Consolidated | | 52.9 | % | 72.2 | % | 98.0 | % | 99.6 | % |
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| Schedule of increase (decrease) in cash equivalents and restricted |
| | | | | | | | | | | | | | | | | | Three Months Ended | | Year Ended | | | March 31, | | June 30, | | September 30, | | December 31, | | December 31 | (In millions) | | 2022 | | 2022 | | 2022 | | 2022 | | 2022 | Cash flows from operating activities: | | | | | | | | | | | | | | | | Net cash used in operating activities | | $ | (295.0) | | $ | (76.6) | | $ | (223.6) | | $ | (33.3) | | $ | (628.5) | Cash flows from investing activities: | | | | | | | | | | | | | | | | Net cash used in investing activities | | | (54.9) | | | (48.0) | | | (50.8) | | | (70.3) | | | (224.0) | Cash flows from financing activities: | | | | | | | | | | | | | | | | Net cash provided by (used in) financing activities | | | (76.3) | | | (59.7) | | | 0.5 | | | 44.2 | | | (91.3) | Effect of exchange rate changes on cash and cash equivalents and restricted cash | | | (5.5) | | | (16.4) | | | (8.2) | | | 8.0 | | | (22.1) | Net decrease in cash and cash equivalents and restricted cash | | | (431.7) | | | (200.7) | | | (282.1) | | | (51.4) | | | (965.9) | Cash and cash equivalents and restricted cash at beginning of period | | | 1,620.3 | | | 1,188.6 | | | 987.9 | | | 705.8 | | | 1,620.3 | Cash and cash equivalents and restricted cash at end of period | | $ | 1,188.6 | | $ | 987.9 | | $ | 705.8 | | $ | 654.4 | | $ | 654.4 |
| | | | | | | | | | | | | | | | | | Three Months Ended | | Year Ended | | | March 31, | | June 30, | | September 30, | | December 31, | | December 31, | (In millions) | | 2021 | | 2021 | | 2021 | | 2021 | | 2021 | Cash flows from operating activities: | | | | | | | | | | | | | | | | Net cash provided by (used in) operating activities | | $ | (312.9) | | $ | (233.8) | | $ | (113.9) | | $ | 46.5 | | $ | (614.1) | Cash flows from investing activities: | | | | | | | | | | | | | | | | Net cash provided by (used in) investing activities | | | (16.0) | | | 13.5 | | | (28.8) | | | (36.9) | | | (68.2) | Cash flows from financing activities: | | | | | | | | | | | | | | | | Net cash provided by (used in) financing activities | | | 854.7 | | | 1,212.2 | | | (48.3) | | | (27.9) | | | 1,990.7 | Effect of exchange rate changes on cash and cash equivalents and restricted cash | | | (5.1) | | | 5.6 | | | (8.4) | | | (1.6) | | | (9.5) | Net increase (decrease) in cash and cash equivalents and restricted cash | | | 520.7 | | | 997.5 | | | (199.4) | | | (19.9) | | | 1,298.9 | Cash and cash equivalents and restricted cash at beginning of period | | | 321.4 | | | 842.1 | | | 1,839.6 | | | 1,640.2 | | | 321.4 | Cash and cash equivalents and restricted cash at end of period | | $ | 842.1 | | $ | 1,839.6 | | $ | 1,640.2 | | $ | 1,620.3 | | $ | 1,620.3 |
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| Schedule of Condensed Statements of Cash Flows |
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| Schedule of consolidated statement of cash flows |
| | | | | | | | | | | | Year Ended | | | December 31, 2022 | | December 31, 2021 | | December 31, 2020 | Cash and cash equivalents | | $ | 631.5 | | $ | 1,592.5 | | $ | 308.3 | Restricted cash | | | 22.9 | | | 27.8 | | | 13.1 | Total cash, cash equivalents and restricted cash in the statement of cash flows | | $ | 654.4 | | $ | 1,620.3 | | $ | 321.4 |
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| Schedule of impairment of assets |
| | | | | | | | | | | | Year Ended | | | December 31, | | December 31, | | December 31, | (In millions) | | 2022 | | 2021 | | 2020 | Impairment of long-lived assets | | $ | 133.1 | | $ | 77.2 | | $ | 177.9 | Impairment of definite-lived intangible assets | | | — | | | — | | | 14.4 | Impairment of indefinite-lived intangible assets | | | — | | | — | | | 15.2 | Impairment of goodwill (1) | | | — | | | — | | | 2,306.4 | Impairment of long-lived assets, definite and indefinite-lived intangible assets and goodwill | | | 133.1 | | | 77.2 | | | 2,513.9 | Impairment of equity method investments recorded in equity in (earnings) loss of non-consolidated entities | | | — | | | — | | | 8.6 | Impairment of other assets recorded in investment expense (income) | | | — | | | — | | | 15.9 | Total impairment loss | | $ | 133.1 | | $ | 77.2 | | $ | 2,538.4 |
| (1) | See Note 5—Goodwill and Intangible Assets for information regarding goodwill impairment. |
During the year ended December 31, 2022, the Company recorded non-cash impairment of long-lived assets of $73.4 million on 68 theatres in the U.S. markets with 817 screens (in Alabama, Arkansas, Arizona, California, Connecticut, District of Columbia, Florida, Georgia, Iowa, Illinois, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, North Carolina, North Dakota, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, West Virginia, and Wisconsin) and $59.7 million on 53 theatres in the International markets with 456 screens (in Germany, Italy, Spain, Sweden, and the UK), which were related to property, net and operating lease right-of-use assets, net.
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| Schedule of benefit obligations and plan assets and the accrued liability |
| | | | | | | | | | | | | | | U.S. Pension Benefits | | International Pension Benefits | | | Year Ended | | Year Ended | (In millions) | | December 31, 2022 | | December 31, 2021 | | December 31, 2022 | | December 31, 2021 | Aggregated projected benefit obligation at end of period (1) | | $ | (79.7) | | $ | (111.5) | | $ | (66.8) | | $ | (125.0) | Aggregated fair value of plan assets at end of period | | | 59.2 | | | 84.3 | | | 73.1 | | | 126.0 | Net (liability) asset for benefit cost - funded status | | $ | (20.5) | | $ | (27.2) | | $ | 6.3 | | $ | 1.0 |
| (1) | At December 31, 2022 and December 31, 2021, U.S. aggregated accumulated benefit obligations were $79.7 million and $111.5 million, respectively, and International aggregated accumulated benefit obligations were $66.8 million and $125.0 million, respectively. |
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| Schedule of weighted-average assumptions used to determine benefit obligations |
The weighted-average assumptions used to determine benefit obligations are as follows: | | | | | | | | | | | U.S. Pension Benefits | | International Pension Benefits | | | December 31, 2022 | | December 31, 2021 | | December 31, 2022 | | December 31, 2021 | Discount rate | | 4.97% | | 2.66% | | 4.82% | | 1.79% | Rate of compensation increase | | N/A | | N/A | | 2.19% | | 2.28% |
The weighted-average assumptions used to determine net periodic benefit cost are as follows: | | | | | | | | | | | | | | | U.S. Pension Benefits | | International Pension Benefits | | | Year Ended | | Year Ended | | | December 31, | | December 31, | | December 31, | | December 31, | | December 31, | | December 31, | | | 2022 | | 2021 | | 2020 | | 2022 | | 2021 | | 2020 | Discount rate | | 2.66% | | 2.26% | | 3.07% | | 1.79% | | 1.78% | | 1.97% | Weighted average expected long-term return on plan assets | | 6.56% | | 6.57% | | 6.70% | | 1.57% | | 1.28% | | 2.15% | Rate of compensation increase | | N/A | | N/A | | N/A | | 2.28% | | 2.29% | | 2.27% |
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| Schedule of expected benefit payments |
| | | | | | | (In millions) | | U.S. Pension Benefits | | International Pension Benefits | 2023 | | $ | 4.6 | | $ | 3.0 | 2024 | | | 4.5 | | | 3.1 | 2025 | | | 4.7 | | | 3.1 | 2026 | | | 4.9 | | | 3.2 | 2027 | | | 5.0 | | | 3.3 | Years 2028 - 2031 | | | 26.9 | | | 17.8 |
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| Schedule components of other expense (income) |
| | | | | | | | | | | | Year Ended | | | December 31, | | December 31, | | December 31, | (In millions) | | 2022 | | 2021 | | 2020 | Derivative liability fair value adjustment for embedded conversion feature in the Convertible Notes | | $ | — | | $ | — | | $ | 89.4 | Derivative asset fair value adjustment for contingent call option related to the Class B common stock purchase and cancellation agreement | | | — | | | — | | | 19.6 | Credit losses (income) related to contingent lease guarantees | | | (0.2) | | | (5.7) | | | 15.0 | Governmental assistance due to COVID-19 - International markets | | | (23.0) | | | (81.5) | | | (38.6) | Governmental assistance due to COVID-19 - U.S. markets | | | (2.8) | | | (5.6) | | | — | Foreign currency transaction gains | | | (12.3) | | | (9.8) | | | (2.8) | Non-operating components of net periodic benefit cost (income) | | | (0.6) | | | (0.7) | | | 1.1 | Loss on extinguishment - First Lien Notes due 2025 | | | 47.7 | | | — | | | — | Loss on extinguishment - First Lien Notes due 2026 | | | 54.4 | | | — | | | — | Loss on extinguishment - First Lien Toggle Notes due 2026 | | | 32.9 | | | 14.4 | | | — | Gain on extinguishment - Second Lien Notes due 2026 | | | (75.0) | | | — | | | (93.6) | Gain on extinguishment - Senior Subordinated Notes due 2027 | | | (3.7) | | | — | | | — | Loss on debt extinguishment - Odeon Term Loan Facility | | | 36.5 | | | — | | | — | Financing fees related to modification of debt | | | — | | | 1.0 | | | 39.3 | Business interruption insurance recoveries | | | (0.3) | | | — | | | (0.5) | Other expense (income) | | $ | 53.6 | | $ | (87.9) | | $ | 28.9 |
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