IMPAIRMENT OF LONG-LIVED AND OTHER ASSETS

12 Months Ended

Dec. 31, 2021

Impairment or Disposal of Tangible Assets Disclosure [Abstract]

IMPAIRMENT OF LONG-LIVED AND OTHER ASSETS

11.IMPAIRMENT OF LONG-LIVED AND OTHER ASSETS

The Company reviews for impairment indicators related to its long-lived assets on a quarterly basis and goodwill on an annual basis or whenever events or changes in circumstances indicate the carrying amount of those assets may not be fully recoverable. Due to the continuing impacts of the COVID-19 pandemic (see Note 3), the Company

performed asset impairment evaluations during each quarter during the year ended December 31, 2021. The following table is a summary of the evaluations performed for each quarter by asset classification.

	Asset	Impairment	Valuation	Valuation
	Category	Test	Approach	Multiple
First and second quarters
	Goodwill	Qualitative	N/A	N/A
	Tradename intangible assets	Qualitative	N/A	N/A
	Other long-lived assets	Qualitative	N/A	N/A
Third quarter
	Goodwill	Qualitative	N/A	N/A
	Tradename intangible assets	Qualitative	N/A	N/A
	Other long-lived assets	Quantitative	Market	3.1 to 6 times
Fourth quarter
	Goodwill	Quantitative	Market	3.7 to 7 times
	Tradename intangible assets	Quantitative	Income	N/A
	Other long-lived assets	Quantitative	Market	3.7 to 6 times

See Note 1 for a discussion of the Company’s impairment policy and a description of qualitative and quantitative impairment assessments.

The Company’s impairment charges were as follows for the periods indicated:

	Year Ended
	December 31,
	2019	2020	2021
U.S. segment
Theatre properties	$36,005	$12,398	$6,371
Theatre operating lease right-of-use assets	10,457	13,216	6,804
Investment in NCM (1)	—	92,655	—
Cost method investment	—	2,500	—
U.S. total	46,462	120,769	13,175
International segment
Theatre properties	8,821	9,951	4,002
Theatre operating lease right-of-use assets	1,718	5,025	3,210
Goodwill	—	16,128	—
Intangible assets, net	—	833	458
International total	10,539	31,937	7,670
Total impairment	$57,001	$152,706	$20,845

(1)See Note 8 for discussion of investment in NCM.

For the year ended December 31, 2019, the long-lived asset impairment charges recorded during each of the periods presented were for certain new concept theatres being developed and tested by the Company and other theatres that were individually impacted by increased competition, adverse changes in market demographics, or adverse changes in the development or the conditions of the areas surrounding the theatre. For the years ended December 31, 2020 and 2021, impairment charges were primarily due to the prolonged impact of the COVID-19 pandemic, as discussed in Note 3. Additionally, impairment charges recorded for the year ended December 31, 2021 reflected the continued uncertainty of industry recovery levels and the impact on estimated cash flows for specific assets.