NOTE 2—LEASES The following table reflects the lease costs for the periods presented: | | | | | | | | | | | | | Three Months Ended | | | | | March 31, | | March 31, | (In millions) | | Consolidated Statements of Operations | | 2025 | | 2024 | Operating lease cost | | | | | | | | Theatre properties | | Rent | | $ | 190.2 | | $ | 197.7 | Theatre properties | | Operating expense | | | 1.2 | | | 0.2 | Equipment | | Operating expense | | | 9.7 | | | 6.7 | Office and other | | General and administrative: other | | | 1.3 | | | 1.3 | Finance lease cost | | | | | | | | | Amortization of finance lease assets | | Depreciation and amortization | | | 0.7 | | | 0.5 | Interest expense on lease liabilities | | Interest expense | | | 0.8 | | | 0.9 | Variable operating and finance lease cost | | | | | | | | | Theatre properties | | Rent | | | 27.9 | | | 26.8 | Theatre properties | | Interest expense | | | 0.4 | | | — | Equipment | | Operating expense | | | 9.4 | | | 13.4 | Total lease cost | | | | $ | 241.6 | | $ | 247.5 |
Cash flow and supplemental information is presented below: | | | | | | | | | Three Months Ended | | | March 31, | | March 31, | (In millions) | | 2025 | | 2024 | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | Operating cash flows used in finance leases | | $ | (0.8) | | $ | (0.9) | Operating cash flows used in operating leases | | | (220.4) | | | (234.4) | Financing cash flows used in finance leases | | | (0.8) | | | (1.2) | | | | | | | | Lease incentives: | | | | | | | Operating cashflows provided by operating leases | | | 4.2 | | | 4.6 | Supplemental disclosure of noncash leasing activities: | | | | | | | Right-of-use assets obtained in exchange for new operating lease liabilities (1) | | | 142.3 | | | 32.8 |
| (1) | Includes lease extensions and option exercises. |
The following table represents the weighted-average remaining lease term and discount rate as of March 31, 2025: | | | | | | | | | Weighted Average | | Weighted Average | | | Remaining | | Discount | Lease Term and Discount Rate | | Lease Term (years) | | Rate | Operating leases | | | 8.1 | | | 10.8% | Finance leases | | | 12.8 | | | 6.4% |
Minimum annual payments and the net present value thereof as of March 31, 2025, are as follows: | | | | | | | | | Operating Lease | | Finance Lease | (In millions) | | Payments | | Payments | Nine months ending December 31, 2025 | | $ | 699.9 | | $ | 5.8 | 2026 | | | 902.8 | | | 7.8 | 2027 | | | 837.5 | | | 7.7 | 2028 | | | 750.4 | | | 7.7 | 2029 | | | 646.5 | | | 7.6 | 2030 | | | 549.7 | | | 6.9 | Thereafter | | | 1,875.0 | | | 32.3 | Total lease payments | | | 6,261.8 | | | 75.8 | Less imputed interest | | | (2,047.2) | | | (25.8) | Total operating and finance lease liabilities, respectively | | $ | 4,214.6 | | $ | 50.0 |
As of March 31, 2025, the Company had signed additional operating lease agreements for three theatres that have not yet commenced. The leases have terms ranging from 10 to 15 years and total lease payments of approximately $26.0 million. The timing of the lease commencement is dependent on the landlord providing the Company with control and access to the theatre.
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