NOTE 3—REVENUE RECOGNITION Disaggregation of Revenue. Revenue is disaggregated in the following tables by major revenue types and by timing of revenue recognition: | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | (In millions) | | June 30, 2021 | | June 30, 2020 | | June 30, 2021 | | June 30, 2020 | Major revenue types | | | | | | | | | | | Admissions | | $ | 233.0 | | $ | 0.9 | | $ | 302.5 | | $ | 568.9 | Food and beverage | | | 161.5 | | | 0.4 | | | 211.6 | | | 288.5 | Other theatre: | | | | | | | | | | | | | Screen advertising | | | 19.7 | | | 14.3 | | | 36.6 | | | 44.0 | Other theatre | | | 30.5 | | | 3.3 | | | 42.3 | | | 59.0 | Other theatre | | | 50.2 | | | 17.6 | | | 78.9 | | | 103.0 | Total revenues | | $ | 444.7 | | $ | 18.9 | | $ | 593.0 | | $ | 960.4 |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | (In millions) | | June 30, 2021 | | June 30, 2020 | | June 30, 2021 | | June 30, 2020 | Timing of revenue recognition | | | | | | | | | Products and services transferred at a point in time | | $ | 414.1 | | $ | 3.6 | | $ | 540.9 | | $ | 855.4 | Products and services transferred over time(1) | | | 30.6 | | | 15.3 | | | 52.1 | | | 105.0 | Total revenues | | $ | 444.7 | | $ | 18.9 | | $ | 593.0 | | $ | 960.4 |
| (1) | Amounts primarily include subscription and advertising revenues. |
The following tables provide the balances of receivables and deferred revenue income: | | | | | | | (In millions) | | June 30, 2021 | | December 31, 2020 | Current assets | | | | | | | Receivables related to contracts with customers | | $ | 31.7 | | $ | 23.1 | Miscellaneous receivables | | | 56.8 | | | 67.9 | Receivables, net | | $ | 88.5 | | $ | 91.0 |
| | | | | | | (In millions) | | June 30, 2021 | | December 31, 2020 | Current liabilities | | | | | | | Deferred revenue related to contracts with customers | | $ | 400.0 | | $ | 400.6 | Miscellaneous deferred income | | | 2.1 | | | 4.8 | Deferred revenue and income | | $ | 402.1 | | $ | 405.4 |
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, 2020 | | $ | 400.6 | Cash received in advance(1) | | | 33.7 | Customer loyalty rewards accumulated, net of expirations: | | | | Admission revenues (2) | | | 2.5 | Food and beverage (2) | | | 4.7 | Other theatre (2) | | | 0.1 | Reclassification to revenue as the result of performance obligations satisfied: | | | | Admission revenues (3) | | | (21.3) | Food and beverage (3) | | | (11.3) | Other theatre (4) | | | (6.5) | Foreign currency translation adjustment | | | (2.5) | Balance June 30, 2021 | | $ | 400.0 |
| (1) | Includes movie tickets, food and beverage, gift cards, exchange tickets, and AMC Stubs® loyalty membership fees. |
| (2) | Amount of rewards accumulated, net of expirations, that are attributed to AMC Stubs® and other loyalty programs. |
| (3) | Amount of rewards redeemed that are attributed to gift cards, exchange tickets, movie tickets, AMC Stubs® loyalty programs and other loyalty programs. |
| (4) | Amounts relate to income from non-redeemed or partially redeemed gift cards, non-redeemed exchange tickets, AMC Stubs® loyalty membership fees and other loyalty programs. |
The Company suspended the recognition of deferred revenues related to certain loyalty programs, gift cards, and exchange tickets during the period in which its operations were temporarily suspended. As the Company re-opened theatres, A-List members had the option to reactivate their subscription, which restarted the monthly charge for the program. The Company has resumed a more normal recognition pattern for deferred revenues related to certain loyalty programs, gift cards and exchange tickets during the three months ended June 30, 2021. The significant changes to contract liabilities included in the exhibitor services agreement in the condensed consolidated balance sheets, are as follows: | | | | | | Exhibitor Services | (In millions) | | Agreement (1) | Balance December 31, 2020 | | $ | 537.6 | Negative Common Unit Adjustment–reduction of common units | | | (9.2) | Reclassification of the beginning balance to other theatre revenue, as the result of performance obligations satisfied | | | (8.9) | Balance June 30, 2021 | | $ | 519.5 |
| (1) | Represents the carrying amount of the National CineMedia, LLC (“NCM”) common units that were previously received under the annual Common Unit Adjustment (“CUA”). The deferred revenues are being amortized to other theatre revenues over the remainder of the 30-year term of the Exhibitor Service Agreement (“ESA”) ending in February 2037. |
Gift cards and exchange tickets. The total amount of non-redeemed gifts cards and exchange tickets included in deferred revenues and income as of June 30, 2021 was $311.5 million. This will be recognized as revenues as the gift cards and exchange tickets are redeemed or as the non-redeemed gift card and exchange ticket revenues are recognized in proportion to the pattern of actual redemptions. Historically, the Company has estimated this to occur over the next 24 months, but due to the COVID-19 pandemic and the limited or temporary suspension of theatre operations, the pattern of actual redemptions may occur over a longer period of time. Loyalty programs. As of June 30, 2021, the amount of deferred revenues allocated to the loyalty programs included in deferred revenues and income was $65.8 million. The earned points will be recognized as revenue as the points are redeemed. Historically, the Company has estimated this to occur over the next 24 months, but due to the COVID-19 pandemic and the limited or temporary suspension of theatre operations, the recognition of points redeemed may occur over a longer period of time. The AMC Stubs® annual membership fee is recognized ratably over the one-year membership period. 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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