| REVENUE RECOGNITION |
NOTE 2—REVENUE RECOGNITION Disaggregation of Revenue. Revenue is disaggregated in the following tables by major revenue types and by timing of revenue recognition: | | | | | | | | | | | | Year Ended | (In millions) | | December 31, 2025 | | December 31, 2024 | | December 31, 2023 | Major revenue types | | | | | | | | Admissions | | $ | 2,652.8 | | $ | 2,560.5 | | $ | 2,690.5 | Food and beverage | | | 1,671.3 | | | 1,624.9 | | | 1,669.8 | Other theatre: | | | | | | | | | | Advertising | | | 152.1 | | | 132.9 | | | 129.5 | Other theatre | | | 372.7 | | | 318.9 | | | 322.8 | Other theatre | | | 524.8 | | | 451.8 | | | 452.3 | Total revenues | | $ | 4,848.9 | | $ | 4,637.2 | | $ | 4,812.6 |
| | | | | | | | | | | | Year Ended | (In millions) | | December 31, 2025 | | December 31, 2024 | | December 31, 2023 | Timing of revenue recognition | | | | | | | Products and services transferred at a point in time | | $ | 4,362.5 | | $ | 4,224.7 | | $ | 4,424.1 | Products and services transferred over time (1) | | | 486.4 | | | 412.5 | | | 388.5 | Total revenues | | $ | 4,848.9 | | $ | 4,637.2 | | $ | 4,812.6 |
| (1) | Amounts primarily include subscription and advertising revenues. |
The following tables provide the balances of receivables, net and deferred revenues and income: | | | | | | | (In millions) | | December 31, 2025 | | December 31, 2024 | Current assets | | | | | | | Receivables related to contracts with customers | | $ | 95.1 | | $ | 86.0 | Miscellaneous receivables | | | 60.9 | | | 82.1 | Receivables, net | | $ | 156.0 | | $ | 168.1 |
| | | | | | | (In millions) | | December 31, 2025 | | December 31, 2024 | Current liabilities | | | | | | | Deferred revenues related to contracts with customers | | $ | 462.4 | | $ | 425.6 | Miscellaneous deferred income | | | 3.1 | | | 6.8 | Deferred revenues and income | | $ | 465.5 | | $ | 432.4 |
The significant changes in contract liabilities with customers included in deferred revenues and income are as follows: | | | | | | Deferred Revenues | | | Related to Contracts | (In millions) | | with Customers | Balance December 31, 2023 | | $ | 415.3 | Cash received in advance (1) | | | 354.1 | Customer loyalty rewards accumulated, net of expirations: | | | | Admission revenues (2) | | | 22.6 | Food and beverage revenues (2) | | | 39.5 | Other theatre revenues (2) | | | (2.6) | Reclassification to revenue as the result of performance obligations satisfied: | | | | Admission revenues (3) | | | (254.1) | Food and beverage revenues (3) | | | (75.8) | Other theatre revenues (4) | | | (73.2) | Foreign currency translation adjustment | | | (0.2) | Balance December 31, 2024 | | $ | 425.6 | Cash received in advance (1) | | | 393.8 | Customer loyalty rewards accumulated, net of expirations: | | | | Admission revenues (2) | | | 19.7 | Food and beverage revenues (2) | | | 55.1 | Reclassification to revenue as the result of performance obligations satisfied: | | | | Admission revenues (3) | | | (256.9) | Food and beverage revenues (3) | | | (91.0) | Other theatre revenues (4) | | | (88.6) | Foreign currency translation adjustment | | | 4.7 | Balance December 31, 2025 | | $ | 462.4 |
| (1) | Includes movie tickets, food and beverage, gift cards, exchange tickets, subscription membership fees, and other loyalty membership fees. |
| (2) | Amount of rewards accumulated, net of expirations, that are attributed to loyalty programs. |
| (3) | Amount of revenue recognized from redemption of gift cards, exchange tickets, movie tickets, and rewards related to loyalty programs. |
| (4) | Amounts relate to income from non-redeemed or partially redeemed gift cards, non-redeemed exchange tickets, subscription membership fees, and loyalty programs membership fees. |
The significant changes to contract liabilities included in the exhibitor services agreement in the consolidated balance sheets are as follows: | | | | | | Exhibitor Services | (In millions) | | Agreement (1) | Balance December 31, 2023 | | $ | 486.6 | Other theatre revenue recognized, net of adjustments, as performance obligations are satisfied | | | (22.6) | Balance December 31, 2024 | | $ | 464.0 | Contract modification consideration (1) | | | 5.3 | Other theatre revenue recognized as performance obligations are satisfied | | | (10.2) | Balance December 31, 2025 | | $ | 459.1 |
| (1) | The exhibitor services agreement contract liability relates to NCM common units that were previously received under the exhibitor services agreement dated February 13, 2007 and amended and restated as of December 13, 2013. On April 17, 2025, NCM entered into the Amended ESA with the Company. The term of the Amended ESA has been extended by five years through February 13, 2042. The Company treated the Amended ESA as a contract modification pursuant to ASC 606 – Revenue from Contracts with Customers. Accordingly, the Company has allocated the additional consideration received from the contract modification to the exhibitor services agreement contract liability and updated the discount rate used to account for the significant financing component to 16.12%. Prior to the contract modification, the weighted average discount rate used to account for the significant financing component was approximately 7.5%. The contract liability will be reclassified to other theatre revenue over the new term of the Amended ESA as the remaining performance obligations are satisfied. |
NCM Bankruptcy. On April 11, 2023, NCM filed a petition under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of Texas. The Chapter 11 plan of reorganization became effective on August 7, 2023 (the “Plan”). The Company appealed certain terms of the Plan and rulings of the bankruptcy court with the United States District Court for the Southern District of Texas, which affirmed the rulings of the bankruptcy court, and subsequently with the United States Court of Appeals for the Fifth Circuit. On April 17, 2025, concurrently with entering into the Amended ESA, NCM and the Company reached an agreement to, among other things, dismiss with prejudice the ongoing litigation between the parties. Transaction Price Allocated to the Remaining Performance Obligations. The following table includes the amount of the exhibitor services agreement contract liability that is expected to be recognized as revenues in the future related to performance obligations that are unsatisfied as of December 31, 2025: | | | | (In millions) | | Exhibitor Services Agreement | Year ended 2026 | | $ | 6.5 | Year ended 2027 | | | 7.6 | Year ended 2028 | | | 8.9 | Year ended 2029 | | | 10.5 | Year ended 2030 | | | 12.3 | Years ended 2031 through February 2042 | | | 413.3 | Total | | $ | 459.1 |
Gift Cards and Exchange Tickets. The total amount of non-redeemed gift cards and exchange tickets included in deferred revenues and income as of December 31, 2025 was $341.8 million. This will be recognized as revenues as the gift cards and exchange tickets are redeemed, as the estimated non-redeemed gift card and exchange ticket revenues are recognized in proportion to the pattern of actual redemptions which is estimated to occur over the next one to 36 months, or as the gift cards or exchange tickets expire. Loyalty Programs. As of December 31, 2025, the amount of deferred revenues related to loyalty programs included in deferred revenues and income was $94.4 million. The earned points will be recognized as revenue as the points are redeemed or expire. Subscription membership fees and loyalty membership fees are recognized ratably over their respective membership periods. The Company applies the practical expedient in ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.
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