NOTE 3—LEASES The following table reflects the lease costs for the years indicated below: | | | | | | | | | | | | | | | | Year Ended | | | | | December 31, | | December 31, | | December 31, | (In millions) | | Consolidated Statements of Operations | | 2024 | | 2023 | | 2022 | Operating lease cost | | | | | | | | | | | | Theatre properties | | Rent | | $ | 775.3 | | $ | 788.1 | | $ | 812.0 | Theatre properties | | Operating expense | | | 5.6 | | | 2.0 | | | 5.4 | Equipment | | Operating expense | | | 31.1 | | | 17.5 | | | 8.6 | Office and other | | General and administrative: other | | | 5.4 | | | 5.4 | | | 5.3 | Finance lease cost | | | | | | | | | | | | Amortization of finance lease assets | | Depreciation and amortization | | | 2.7 | | | 2.0 | | | 2.6 | Interest expense on lease liabilities | | Interest expense | | | 3.4 | | | 3.7 | | | 4.1 | Variable lease cost | | | | | | | | | | | | Theatre properties | | Rent | | | 98.3 | | | 85.4 | | | 74.2 | Theatre properties | | Interest expense | | | 2.0 | | | — | | | — | Equipment | | Operating expense | | | 65.4 | | | 63.3 | | | 60.0 | Total lease cost | | | | $ | 989.2 | | $ | 967.4 | | $ | 972.2 |
The following table represents the weighted-average remaining lease term and discount rate as of December 31, 2024: | | | | | | | | | Weighted Average | | Weighted Average | | | Remaining | | Discount | Lease Term and Discount Rate | | Lease Term (years) | | Rate | Operating leases | | | 8.1 | | | 10.7% | Finance leases | | | 13.2 | | | 6.4% |
Cash flow and supplemental information is presented below: | | | | | | | | | | | | Year Ended | | | December 31, | | December 31, | | December 31, | (In millions) | | 2024 | | 2023 | | 2022 | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | Operating cash flows used in finance leases | | $ | (3.4) | | $ | (3.7) | | $ | (3.8) | Operating cash flows used in operating leases | | | (925.1) | | | (986.4) | | | (1,032.4) | Financing cash flows used in finance leases | | | (4.6) | | | (5.6) | | | (9.4) | | | | | | | | | | | Landlord contributions: | | | | | | | | | | Operating cash flows provided by operating leases | | | 31.8 | | | 23.9 | | | 19.9 | Supplemental disclosure of noncash leasing activities: | | | | | | | | | | Right-of-use assets obtained in exchange for new operating lease liabilities (1) | | | 196.3 | | | 214.1 | | | 277.3 | Right-of-use assets obtained in exchange for new finance lease liabilities (1) | | | 2.6 | | | — | | | — |
| (1) | Includes lease extensions and option exercises. |
Minimum annual payments required under existing operating and finance leases and the net present value thereof as of December 31, 2024 are as follows: | | | | | | | | | Operating Lease | | Finance Lease | (In millions) | | Payments | | Payments | 2025 | | | 911.2 | | | 7.4 | 2026 | | | 858.3 | | | 7.5 | 2027 | | | 796.2 | | | 7.4 | 2028 | | | 709.6 | | | 7.4 | 2029 | | | 604.8 | | | 7.3 | Thereafter | | | 2,295.6 | | | 38.0 | Total lease payments | | | 6,175.7 | | | 75.0 | Less imputed interest | | | (2,023.2) | | | (25.7) | Total operating and finance lease liabilities, respectively | | $ | 4,152.5 | | $ | 49.3 |
As of December 31, 2024, the Company had signed additional operating lease agreements for six theatres that have not yet commenced. The leases have terms ranging from 10 to 20 years and total lease payments of approximately $107.3 million. The timing of lease commencement is dependent on the landlord providing the Company with control and access to the related facility. During the year ended December 31, 2023, the Company received a $13.0 million buyout incentive from a landlord which provided the landlord the right to terminate the lease of one theatre. The incentive was treated as a reduction to rent expense in the Company’s consolidated statement of operations.
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