| Schedule of financial information by reportable operating segment |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | Revenues (In millions) | | June 30, 2021 | | June 30, 2020 | | June 30, 2021 | | June 30, 2020 | U.S. markets | | $ | 374.8 | | $ | 15.7 | | $ | 512.0 | | $ | 677.0 | International markets | | | 69.9 | | | 3.2 | | | 81.0 | | | 283.4 | Total revenues | | $ | 444.7 | | $ | 18.9 | | $ | 593.0 | | $ | 960.4 |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | Adjusted EBITDA (In millions) | | June 30, 2021 | | June 30, 2020 | | June 30, 2021 | | June 30, 2020 | U.S. markets | | $ | (118.0) | | $ | (241.6) | | $ | (318.4) | | $ | (245.4) | International markets | | | (32.8) | | | (98.7) | | | (127.1) | | | (91.8) | Total Adjusted EBITDA (1) | | $ | (150.8) | | $ | (340.3) | | $ | (445.5) | | $ | (337.2) |
| (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 consistent with how Adjusted EBITDA is defined in the Company’s debt indentures. |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | Capital Expenditures (In millions) | | June 30, 2021 | | June 30, 2020 | | June 30, 2021 | | June 30, 2020 | U.S. markets | | $ | 13.8 | | $ | 24.9 | | $ | 20.4 | | $ | 81.8 | International markets | | | 4.1 | | | 10.1 | | | 9.4 | | | 44.9 | Total capital expenditures | | $ | 17.9 | | $ | 35.0 | | $ | 29.8 | | $ | 126.7 |
|
| Schedule of information about the Company's revenues from continuing operations and assets by geographic area |
| | | | | | | | | As of | | As of | Long-term assets, net (In millions) | | June 30, 2021 | | December 31, 2020 | U.S. markets | | $ | 6,613.5 | | $ | 6,895.3 | International markets | | | 2,703.3 | | | 2,894.1 | Total long-term assets (1) | | $ | 9,316.8 | | $ | 9,789.4 |
| (1) | Long-term assets are comprised of property, operating lease right-of-use assets, intangible assets, goodwill, deferred tax assets, and other long-term assets. |
|
| Schedule of reconciliation of net earnings to Adjusted EBITDA |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | (In millions) | | June 30, 2021 | | June 30, 2020 | | June 30, 2021 | | June 30, 2020 | Net loss | | $ | (344.0) | | $ | (561.2) | | $ | (911.2) | | $ | (2,737.5) | Plus: | | | | | | | | | | | | | Income tax provision (benefit) | | | (5.2) | | | (6.1) | | | (12.0) | | | 62.1 | Interest expense | | | 98.9 | | | 91.2 | | | 261.7 | | | 174.0 | Depreciation and amortization | | | 105.7 | | | 119.7 | | | 219.8 | | | 242.2 | Impairment of long-lived assets, definite and indefinite-lived intangible assets and goodwill (1) | | | — | | | — | | | — | | | 1,851.9 | Certain operating expense (income) (2) | | | (4.0) | | | (1.5) | | | (1.7) | | | 0.6 | Equity in loss of non-consolidated entities | | | 2.7 | | | 12.4 | | | 5.5 | | | 15.3 | Cash distributions from non-consolidated entities (3) | | | — | | | 6.1 | | | 0.3 | | | 13.7 | Attributable EBITDA (4) | | | 0.7 | | | 0.6 | | | (0.1) | | | 0.5 | Investment expense (income) | | | (6.3) | | | (1.3) | | | (8.3) | | | 8.1 | Other expense (income) (5) | | | (0.3) | | | (1.9) | | | (5.1) | | | 25.0 | Other non-cash rent benefit (6) | | | (11.7) | | | (3.8) | | | (19.2) | | | (1.5) | General and administrative — unallocated: | | | | | | | | | | | | | Merger, acquisition and other costs (7) | | | 4.3 | | | 1.8 | | | 11.0 | | | 2.0 | Stock-based compensation expense (8) | | | 8.4 | | | 3.7 | | | 13.8 | | | 6.4 | Adjusted EBITDA | | $ | (150.8) | | $ | (340.3) | | $ | (445.5) | | $ | (337.2) |
| (1) | During the six months ended June 30, 2020, the Company recorded non-cash impairment charges of $1,124.9 million and $619.4 million related to the enterprise fair values of its Domestic Theatres and International Theatres reporting units, respectively. The Company recorded non-cash impairment charges during the six months ended June 30, 2020 related to its long-lived assets of $81.4 million on 57 theatres in the U.S. markets with 658 screens, which were related to property, net, operating lease right-of-use assets, net and other long-term assets and $9.9 million on 23 theatres in the International markets with 213 screens, which were related to property, net and operating lease right-of-use assets, net. The Company recorded non-cash impairment charges related to its indefinite-lived intangible assets of $5.9 million and $2.4 million related to the Odeon and Nordic trade names, respectively, during the six months ended June 30, 2020. The Company also recorded non-cash impairment charges of $8.0 million related to its definite-lived intangible assets. |
| (2) | 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, non-cash deferred digital equipment rent expense, and 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. |
| (3) | 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. |
| (4) | 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 (earnings) 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 | | Six Months Ended | (In millions) | | June 30, 2021 | | June 30, 2020 | | June 30, 2021 | | June 30, 2020 | Equity in loss of non-consolidated entities | | $ | 2.7 | | $ | 12.4 | | $ | 5.5 | | $ | 15.3 | Less: | | | | | | | | | | | | | Equity in loss of non-consolidated entities excluding International theatre joint ventures | | | 0.3 | | | 12.2 | | | 1.5 | | | 14.3 | Equity in loss of International theatre joint ventures | | | (2.4) | | | (0.2) | | | (4.0) | | | (1.0) | Income tax provision (benefit) | | | 0.1 | | | — | | | (0.1) | | | (0.1) | Investment income | | | — | | | — | | | — | | | (0.2) | Interest expense | | | 0.2 | | | — | | | 0.2 | | | — | Depreciation and amortization | | | 2.7 | | | 0.7 | | | 3.6 | | | 1.5 | Other expense | | | 0.1 | | | 0.1 | | | 0.2 | | | 0.3 | Attributable EBITDA | | $ | 0.7 | | $ | 0.6 | | $ | (0.1) | | $ | 0.5 |
| (5) | Other expense (income) during the three months ended June 30, 2021, included income related to contingent lease guarantees of $(3.7) million, partially offset by foreign currency transaction losses of $3.4 million. Other expense (income) during the three months ended June 30, 2020, included a gain of $(6.4) million for the fair value adjustment of the derivative asset related to the contingent call option related to the Class B common stock purchase and cancellation agreement and the foreign currency transaction gains of $(2.1) million, partially offset by credit losses related to contingent lease guarantees of $3.9 million and financing fees of $2.8 million related to debt modification. |
During the six months ended June 30, 2021, other expense (income) primarily consisted of income related to contingent lease guarantees of $(5.7) million and foreign currency transaction gains of $(0.4) million, partially offset by financing fees of $1.0 million primarily related to deferred financing cost write-off for the Odeon revolving credit facility. During the six months ended June 30, 2020, other expense (income) primarily related to a loss of $13.7 million for the fair value adjustment of the derivative asset related to the contingent call option related to the Class B common stock purchase and cancellation agreement, credit losses related to contingent lease guarantees of $9.2 million, and financing fees of $2.8 million related to debt modification, partially offset by a gain of $(0.5) million for the fair value adjustment of the derivative liability related to the Convertible Notes due 2026 and foreign currency transaction losses of approximately $(0.1) 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 expense included in general and administrative: other. |
|