| Schedule of financial information by reportable operating segment |
| | | | | | | | | | | | Year Ended | Revenues (In millions) | | December 31, 2021 | | December 31, 2020 | | December 31, 2019 | U.S. markets | | $ | 1,875.8 | | $ | 826.7 | | $ | 4,023.2 | International markets | | | 652.1 | | | 415.7 | | | 1,447.8 | Total revenues | | $ | 2,527.9 | | $ | 1,242.4 | | $ | 5,471.0 |
| | | | | | | | | | | | Year Ended | Adjusted EBITDA (In millions) | | December 31, 2021 | | December 31, 2020 | | December 31, 2019 | U.S. markets | | $ | (250.6) | | $ | (768.2) | | $ | 575.6 | International markets | | | (41.1) | | | (231.0) | | | 195.8 | Total Adjusted EBITDA | | $ | (291.7) | | $ | (999.2) | | $ | 771.4 |
| (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. |
| | | | | | | | | | | | Year Ended | Capital Expenditures (In millions) | | December 31, 2021 | | December 31, 2020 | | December 31, 2019 | U.S. markets | | $ | 63.9 | | $ | 109.9 | | $ | 369.4 | International markets | | | 28.5 | | | 63.9 | | | 148.7 | Total capital expenditures | | $ | 92.4 | | $ | 173.8 | | $ | 518.1 |
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| Schedule of information about the Company's revenues from continuing operations and assets by geographic area |
| | | | | | | | | | | | Year Ended | Revenues (In millions) | | December 31, 2021 | | December 31, 2020 | | December 31, 2019 | United States | | $ | 1,875.8 | | $ | 826.7 | | $ | 4,023.2 | United Kingdom | | | 283.6 | | | 127.9 | | | 500.4 | Spain | | | 81.8 | | | 52.1 | | | 200.3 | Sweden | | | 82.3 | | | 63.2 | | | 177.5 | Italy | | | 57.5 | | | 47.5 | | | 200.0 | Germany | | | 54.4 | | | 38.2 | | | 135.0 | Finland | | | 49.1 | | | 43.4 | | | 103.0 | Ireland | | | 16.9 | | | 9.3 | | | 37.9 | Other foreign countries | | | 26.5 | | | 34.1 | | | 93.7 | Total | | $ | 2,527.9 | | $ | 1,242.4 | | $ | 5,471.0 |
| | | | | | | | | As of | | As of | Long-term assets, net (In millions) | | December 31, 2021 | | December 31, 2020 | U.S. markets | | $ | 6,434.5 | | $ | 6,895.3 | International markets | | | 2,516.7 | | | 2,894.1 | Total long-term assets (1) | | $ | 8,951.2 | | $ | 9,789.4 |
| (1) | Long-term assets are comprised of property, operating lease right-of-use assets, intangible assets, goodwill, deferred tax asset, net and other long-term assets. |
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| Schedule of reconciliation of net earnings to Adjusted EBITDA |
The following table sets forth a reconciliation of net loss to Adjusted EBITDA: | | | | | | | | | | | | Year Ended | (In millions) | | December 31, 2021 | | December 31, 2020 | | December 31, 2019 | Net loss | | $ | (1,269.8) | | $ | (4,589.4) | | $ | (149.1) | Plus: | | | | | | | | | | Income tax provision (benefit) (1) | | | (10.2) | | | 59.9 | | | (22.5) | Interest expense | | | 458.1 | | | 356.9 | | | 340.8 | Depreciation and amortization | | | 425.0 | | | 498.3 | | | 450.0 | Impairment of long-lived assets, definite and indefinite-lived intangible assets and goodwill (2) | | | 77.2 | | | 2,513.9 | | | 84.3 | Certain operating expense (income) (3) | | | 0.2 | | | (9.4) | | | 14.8 | Equity in (earnings) loss of non-consolidated entities (4) | | | (11.0) | | | 30.9 | | | (30.6) | Cash distributions from non-consolidated entities (5) | | | 12.5 | | | 17.4 | | | 35.8 | Attributable EBITDA (6) | | | 3.7 | | | 0.2 | | | 5.0 | Investment expense (income) | | | (9.2) | | | 10.1 | | | (16.0) | Other expense (income) (7) | | | (0.1) | | | 66.9 | | | 13.3 | Other non-cash rent expense (benefit) (8) | | | (24.9) | | | (4.9) | | | 25.7 | General and administrative — unallocated: | | | | | | | | | | Merger, acquisition and other costs (9) | | | 13.7 | | | 24.6 | | | 15.5 | Stock-based compensation expense (10) | | | 43.1 | | | 25.4 | | | 4.4 | Adjusted EBITDA | | $ | (291.7) | | $ | (999.2) | | $ | 771.4 |
| (1) | For information regarding the income tax provision (benefit), see Note 10—Income Taxes. |
| (2) | During the year ended December 31, 2021, the Company recorded non-cash impairment charges related to its long-lived assets of $61.3 million on 77 theatres in the U.S. markets with 805 screens which were related to property, net, operating lease right-of-use assets, net and other long-term assets and $15.9 million on 14 theatres in the International markets with 118 screens which were related to property, net and operating lease right-of-use assets, net. |
During the year ended December 31, 2020, the Company recorded goodwill non-cash impairment charges of $1,276.1 million and $1,030.3 million related to the enterprise fair values of the Domestic Theatres and International Theatres reporting units, respectively. During the year ended December 31, 2020, the Company recorded non-cash impairment charges related to its long-lived assets of $152.5 million on 101 theatres in the U.S. markets with 1,139 screens which were related to property, net, operating lease right-of-use assets, net and other long-term assets and $25.4 million on 37 theatres in the International markets with 340 screens which were related to property, net and operating lease right-of-use assets, net. The Company recorded non-cash impairment charges related to indefinite-lived intangible assets of $12.5 million and $2.7 million related to the Odeon and Nordic trade names, respectively, in the International Theatres reporting unit during the year ended December 31, 2020. The Company also recorded non-cash impairment charges of $14.4 million related to its definite-lived intangible assets in the Domestic Theatres reporting unit during the year ended December 31, 2020. During the year ended December 31, 2019, the Company recorded non-cash impairment of long-lived assets of $84.3 million on 40 theatres in the U.S. markets with 512 screens, 14 theatres in the International markets with 148 screens, and a U.S. property held and not used. | (3) | 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. |
| (4) | Equity in (earnings) loss of non-consolidated entities primarily consisted of equity in earnings (loss) from DCIP of $12.2 million, $(14.5) million and $25.4 million, during the year ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively. In addition, the Company recorded impairment losses in the International markets during the year ended December 31, 2020 related to equity method investments of $8.6 million in equity in (earnings) loss of non-consolidated entities. |
| (5) | 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. |
| (6) | 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. |
| | | | | | | | | | | | Year Ended | (In millions) | | December 31, 2021 | | December 31, 2020 | | December 31, 2019 | Equity in (earnings) loss of non-consolidated entities | | $ | (11.0) | | $ | 30.9 | | $ | (30.6) | Less: | | | | | | | | | | Equity in (earnings) loss of non-consolidated entities excluding International theatre joint ventures | | | (13.5) | | | 27.4 | | | (29.2) | Equity in earnings (loss) of International theatre joint ventures | | | (2.5) | | | (3.5) | | | 1.4 | Income tax expense | | | 0.3 | | | 0.1 | | | 0.4 | Investment income | | | (0.1) | | | (0.4) | | | (0.7) | Interest expense | | | 0.2 | | | 0.1 | | | — | Depreciation and amortization | | | 5.6 | | | 3.2 | | | 3.4 | Other expense | | | 0.2 | | | 0.7 | | | 0.5 | Attributable EBITDA | | $ | 3.7 | | $ | 0.2 | | $ | 5.0 |
| (7) | Other expense (income) during the year ended December 31, 2021, primarily consisted of a loss on debt extinguishment of $14.4 million and financing fees of $1.0 million, partially offset by income related to the foreign currency transaction gains of $(9.8) million and contingent lease guarantees of $(5.7) million. |
Other expense (income) for the year ended December 31, 2020 included a loss of $109.0 million related to the fair value adjustments of the Company’s derivative liability and derivative asset for the Convertible Notes, financing fees related to the Exchange Offer of $39.3 million, and credit losses related to contingent lease guarantees of $15.0 million, partially offset due to a gain on extinguishment of the Second Lien Notes due 2026 of $(93.6) million. During the year ended December 31, 2019, the Company recorded a loss on repayment of indebtedness of $16.6 million and the financing related foreign currency transaction losses, partially offset by a gain of $5.8 million as a result of the decrease in fair value of its derivative liability and asset for the Convertible Notes. | (8) | Reflects amortization of 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. |
| (9) | Merger, acquisition and other costs are excluded as they are non-operating in nature. |
| (10) | Non-cash or non-recurring expense included in general and administrative: other. |
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