The Company leases theatres and equipment under operating and finance leases. The Company typically does not believe that exercise of the renewal options is reasonably certain at the lease commencement and, therefore, considers the initial base term as the lease term. Lease terms vary but generally the leases provide for fixed and escalating rentals, contingent escalating rentals based on the Consumer Price Index and other indexes not to exceed certain specified amounts and variable rentals based on a percentage of revenues. The Company often receives contributions from landlords for renovations at existing locations. The Company records the amounts received from landlords as an adjustment to the right-of-use asset and amortizes the balance as a reduction to rent expense over the base term of the lease agreement. Equipment leases primarily consist of food and beverage equipment.

The Company received rent concessions provided by the lessors that aided in mitigating the economic effects of COVID-19 during the pandemic. These concessions primarily consisted of rent abatements and the deferral of rent payments. In instances where there were no substantive changes to the lease terms, i.e., modifications that resulted in total payments of the modified lease being substantially the same or less than the total payments of the existing lease, the Company elected the relief as provided by the FASB staff related to the accounting for certain lease concessions. The Company elected not to account for these concessions as a lease modification, and therefore the Company has remeasured the related lease liability and right-of-use asset but did not reassess the lease classification or change the discount rate to the current rate in effect upon the remeasurement. The deferred payment amounts have been recorded in the Company’s lease liabilities to reflect the change in the timing of payments. The deferred payment amounts included in current maturities of operating lease liabilities and long-term operating lease liabilities are reflected in the condensed consolidated statements of cash flows as part of the change in accrued expenses and other liabilities. Those leases that did not meet the criteria for treatment under the FASB relief were evaluated as lease modifications. The deferred payment amounts included in accounts payable for contractual rent amounts due and not paid are reflected in accounts payable on the condensed consolidated balance sheets and in the condensed consolidated statements of cash flows as part of the change in accounts payable. In addition, the Company included deferred lease payments in operating lease right-of-use assets as a result of lease remeasurements.

A summary of deferred payment amounts related to rent obligations for which payments were deferred to 2021 and future years are provided below:

(1)

During the six months ended June 30, 2021, the increase in fixed operating lease deferred amounts is net of $55.0 million of decreases in the deferred balances as of December 31, 2020 related to payments and abatements.

(2)

During the six months ended June 30, 2021, decreases in variable lease deferred amounts were primarily due to resolution of contingencies, therefore, variable amounts became fixed and were reclassified to fixed operating lease deferred amounts.

The following table reflects the lease costs for the three months ended June 30, 2021 and June 30, 2020:


		Three Months Ended				Six Months Ended
	Consolidated Statement	June 30,		June 30,		June 30,		June 30,
(In millions)	of Operations	2021		2020		2021		2020
Operating lease cost
Theatre properties	Rent	$	190.7	$	203.9	$	366.2	$	420.8
Theatre properties	Operating expense (income)		(0.7)		0.1		0.1		2.3
Equipment	Operating expense		2.3		3.8		4.6		7.7
Office and other	General and administrative: other		1.3		1.3		2.7		2.6
Finance lease cost
Amortization of finance lease assets	Depreciation and amortization		1.3		1.7		2.6		3.6
Interest expense on lease liabilities	Finance lease obligations		1.4		1.5		2.8		3.1
Variable lease cost
Theatre properties	Rent		14.8		20.2		31.4		41.1
Equipment	Operating expense (income)		4.8		(0.5)		5.0		6.5
Total lease cost		$	215.9	$	232.0	$	415.4	$	487.7

Cash flow and supplemental information is presented below:


	Six Months Ended
	June 30,		June 30,
(In millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in finance leases	$	(1.2)	$	(3.1)
Operating cash flows used in operating leases		(360.4)		(249.8)
Financing cash flows used in finance leases		(3.9)		(2.3)

Landlord contributions:
Operating cashflows provided by operating leases		11.1		24.9
Supplemental disclosure of noncash leasing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities (1)		60.7		133.7

(1)

Includes lease extensions and option exercises.

The following table represents the weighted-average remaining lease term and discount rate as of June 30, 2021:


	As of June 30, 2021
	Weighted Average		Weighted Average
	Remaining		Discount
Lease Term and Discount Rate	Lease Term (years)		Rate
Operating leases		10.1		9.8%
Finance leases		14.1		6.6%

Minimum annual payments, including deferred lease payments less contractual rent amounts due and not paid that were recorded in accounts payable, that are recorded as operating and finance lease liabilities and the net present value thereof as of June 30, 2021 are as follows:


	Operating Lease		Financing Lease
(In millions)	Payments (2)		Payments (2)
Six months ending December 31, 2021 (1)	$	538.4	$	7.2
2022 (1)		1,034.5		13.6
2023		941.5		10.0
2024		816.7		9.0
2025		770.9		8.3
2026		704.6		8.2
Thereafter		3,768.1		66.0
Total lease payments		8,574.7		122.3
Less imputed interest		(3,081.3)		(42.9)
Total operating and finance lease liabilities, respectively	$	5,493.4	$	79.4

(1)

The minimum annual payments table above does not include contractual cash rent amounts that were due and not paid, which are recorded in accounts payable for deferred rent and now due as shown below, including estimated repayment dates:


	Accounts Payable
(In millions)	Lease Payments
Three months ended September 30, 2021	$	19.3
Three months ended December 31, 2021		22.9
Three months ended March 31, 2022		11.8
Three months ended June 30, 2022		15.0
Total deferred lease amounts recorded in AP	$	69.0

(2)

The minimum annual payments table above includes deferred undiscounted cash lease payments related to operating and finance leases, as shown below:


	Operating Lease		Financing Lease
(In millions)	Payments		Payments
Three months ended September 30, 2021	$	41.3	$	0.6
Three months ended December 31, 2021		42.2		0.6
Three months ended March 31, 2022		38.7		0.6
Three months ended June 30, 2022		35.7		0.4
Three months ended September 30, 2022		31.9		0.2
Three months ended December 31, 2022		31.0		0.2
2023		80.7		0.5
2024		14.8		—
2025		5.4		—
2026		4.1		—
Thereafter		22.7		—
Total deferred lease amounts	$	348.5	$	3.1

As of June 30, 2021, the Company had signed additional operating lease agreements for 6 theatres that have not yet commenced of approximately $156.6 million, which are expected to commence between the second half of 2021 and 2024 and carry lease terms of approximately 5 to 20 years. The timing of lease commencement is dependent on the landlord providing the Company with control and access to the related facility.