OPERATING SEGMENTS (Tables)

(1)

The Company presents Adjusted EBITDA as a supplemental measure of its performance. The Company defines Adjusted EBITDA as net earnings (loss) plus (i) income tax provision (benefit), (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of the Company’s ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in International markets and any cash distributions of earnings from its other equity method investees. The measure of segment profit and loss the Company uses to evaluate performance and allocate its resources is Adjusted EBITDA, which is broadly consistent with how Adjusted EBITDA is defined in the Company’s debt indentures.


	Three Months Ended
Capital Expenditures (In millions)	March 31, 2023		March 31, 2022
U.S. markets	$	34.6	$	21.1
International markets		12.8		13.7
Total capital expenditures	$	47.4	$	34.8

(1)

Long-term assets are comprised of property, net, operating lease right-of-use assets, intangible assets, goodwill, deferred tax assets, net and other long-term assets.

(1)

Amounts represent preopening expense related to temporarily closed screens under renovation, theatre and other closure expense for the permanent closure of screens, including the related accretion of interest, disposition of assets and other non-operating gains or losses included in operating expenses. The Company has excluded these items as they are non-cash in nature or are non-operating in nature.

(2)

Includes U.S. non-theatre distributions from equity method investments and International non-theatre distributions from equity method investments to the extent received. The Company believes including cash distributions is an appropriate reflection of the contribution of these investments to the Company’s operations.

(3)

Attributable EBITDA includes the EBITDA from equity investments in theatre operators in certain International markets. See below for a reconciliation of the Company’s equity in loss of non-consolidated entities to attributable EBITDA. Because these equity investments are in theatre operators in regions where the Company holds a significant market share, the Company believes attributable EBITDA is more indicative of the performance of these equity investments and management uses this measure to monitor and evaluate these equity investments. The Company also provides services to these theatre operators including information technology systems, certain on-screen advertising services and the Company’s gift card and package ticket program.


	Three Months Ended
(In millions)	March 31, 2023		March 31, 2022
Equity in (earnings) loss of non-consolidated entities	$	(1.4)	$	5.1
Less:
Equity in (earnings) loss of non-consolidated entities excluding International theatre joint ventures		(1.1)		0.3
Equity in earnings (loss) of International theatre joint ventures		0.3		(4.8)
Income tax benefit		(0.1)		—
Investment expense		0.1		—
Impairment of long-lived assets		—		4.2
Depreciation and amortization		0.2		0.8
Attributable EBITDA	$	0.5	$	0.2

(4)

Investment income during the three months ended March 31, 2023 primarily includes deterioration in estimated fair value of the Company’s investment in common shares of Hycroft Mining Holding Corporation of $2.3 million, deterioration in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft Mining Holding Corporation of $2.3 million, a $(15.5) million gain on the sale of the Company’s investment in Saudi Cinema Company, LLC, and interest income of $(2.3) million.

Investment income during the three months ended March 31, 2022 includes appreciation in estimated fair

value of the Company’s investment in common shares of Hycroft Mining Holding Corporation of $28.8 million and appreciation in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft Mining Holding Corporation of $35.1 million.

(5)

Other expense during the three months ended March 31, 2023 includes a non-cash litigation contingency reserve charge of $116.6 million, partially offset by foreign currency transaction gains of $(8.7) million and gains on debt extinguishment of $(65.1) million.

Other expense during the three months ended March 31, 2022 included loss on debt extinguishment of $135.0 million and foreign currency transaction losses of $4.8 million.

(6)

Reflects amortization expense for certain intangible assets reclassified from depreciation and amortization to rent expense due to the adoption of ASC 842, Leases and deferred rent benefit related to the impairment of right-of-use operating lease assets.

(7)

Merger, acquisition and other costs are excluded as they are non-operating in nature.

(8)

Non-cash or non-recurring expense included in general and administrative: other.