The COVID-19 pandemic has had an unprecedented impact on the world and the movie exhibition industry. The social and economic effects have been widespread. The Company temporarily closed its theatres in the U.S. and Latin America during March of 2020 at the onset of the COVID-19 outbreak. Additionally, the Company implemented various cash preservation strategies, including, but not limited to, temporary personnel and salary reductions, halting non-essential operating and capital expenditures, negotiating modified timing and/or abatement of contractual payments with landlords and other major suppliers, and the suspension of its quarterly dividend.

Throughout 2020 and 2021 the Company reopened theatres as soon as local restrictions and the status of the COVID-19 pandemic would allow. As of December 31, 2021, all of the Company's domestic and international theatres were open. The industry’s recovery to historical levels of new film content, both in terms of the number of new films and box office performance, is still underway, as the industry also continues to adjust to evolving theatrical release windows, competition from streaming and other delivery platforms, supply chain delays, inflationary pressures, labor shortages, wage rate pressures and other economic factors.

Based on the Company’s current estimates of recovery, it believes it has, and will generate, sufficient cash to sustain operations. Nonetheless, the COVID-19 pandemic has had, and continues to have, adverse effects on the Company’s business, results of operations, cash flows and financial condition.

During June 2020, Company management announced a restructuring plan to realign its operations to create a more efficient cost structure (referred to herein as the “Restructuring Plan”) in response to the COVID-19 pandemic.

The Restructuring Plan primarily included a headcount reduction at its domestic corporate office and the permanent closure of certain domestic and international theatres.

The following table summarized activity recorded during the years ended December 31, 2020 and 2021:


	U.S. Operating Segment									International Operating Segment									Consolidated
	Employee-related Costs			Facility Closure Costs			Total Charges			Employee-related Costs			Facility Closure Costs			Total Charges			Employee-related Costs			Facility Closure Costs			Total Charges
Restructuring charges recorded during the year ended December 31, 2020	$	8,964		$	7,645		$	16,609		$	814		$	2,946		$	3,760		$	9,778		$	10,591		$	20,369
Amounts paid		(7,603	)		(1,649	)		(9,252	)		(814	)		(590	)		(1,404	)		(8,417	)		(2,239	)		(10,656	)
Noncash write-offs		(521	)		(256	)		(777	)		—			(2,195	)		(2,195	)		(521	)		(2,451	)		(2,972	)
Reserve balance at December 31, 2020		840			5,740			6,580			—			161			161			840			5,901			6,741
Amounts paid		(350	)		(3,930	)		(4,280	)		—			(27	)		(27	)		(350	)		(3,957	)		(4,307	)
Reserve adjustments (1)		(94	)		(887	)		(981	)		—			(20	)		(20	)		(94	)		(907	)		(1,001	)
Reserve balance at December 31, 2021	$	396		$	923		$	1,319		$	—		$	114		$	114		$	396		$	1,037		$	1,433

(1)

Amounts are primarily adjustments based on final facility lease payments for certain closed theatres as compared with original estimates recorded.