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INVESTMENT IN NATIONAL CINEMEDIA LLC (Tables)
 12 Months Ended
Dec. 31, 2021
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized

The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied for other deferred revenue in the table above as of December 31, 2021 and when the Company expects to recognize this revenue.

 

 

Year Ended December 31,

 

 

 

 

 

 

 

Remaining Performance Obligations

 

2022

 

 

2023

 

 

Thereafter

 

 

Total

 

Other deferred revenue

 

$

138,945

 

 

 

21,313

 

 

 

—

 

 

$

160,258

 

 
NCM Screen Advertising Advances  
Aggregate Amount of Transaction Price Allocated To Performance Obligation That Are Unsatisfied And Expected To Be Recognized

The recognition of revenue related to the deferred revenue or NCM screen advertising advances will continue to be recorded on a straight-line basis over the new term of the amended ESA through February 2041.

 

 

Year Ended December 31,

 

 

 

 

 

 

 

Remaining Maturity

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

2026

 

 

Thereafter

 

 

Total

 

NCM screen advertising advances (1)

 

$

9,119

 

 

 

9,749

 

 

 

10,424

 

 

 

11,147

 

 

 

11,922

 

 

 

293,665

 

 

$

346,026

 
(1)
Amounts are net of the estimated interest to be accrued for the periods presented.
NCM  
Summary of Activity With Equity Investee Included in the Company's Consolidated Financial Statements

Summary of Activity with NCM

Below is a summary of activity with NCM included in the Company’s consolidated financial statements for the periods indicated. See Note 5 for discussion of related revenue recognition.

 

 

Investment in NCM

 

 

NCM Screen Advertising Advances

 

 

Distributions from NCM (3)

 

 

Equity
in (Earnings) Loss

 

 

Other Revenue

 

 

Interest Expense
- NCM

 

 

Cash Received

 

Balance as of January 1, 2019

 

$

275,592

 

 

$

(350,242

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receipt of common units due to annual common unit adjustment

 

 

1,552

 

 

 

(1,552

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Revenues earned under ESA (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(13,782

)

 

 

—

 

 

 

13,782

 

Interest accrued related to significant financing component

 

 

—

 

 

 

(28,624

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28,624

 

 

 

—

 

Receipt of excess cash distributions

 

 

(23,452

)

 

 

—

 

 

 

(11,631

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

35,083

 

Receipt under tax receivable agreement

 

 

(2,492

)

 

 

—

 

 

 

(1,242

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,734

 

Equity in earnings

 

 

14,592

 

 

 

—

 

 

 

—

 

 

 

(14,592

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of screen advertising advances

 

 

—

 

 

 

32,064

 

 

 

—

 

 

 

—

 

 

 

(32,064

)

 

 

—

 

 

 

—

 

Balance as of and for the year ended December 31, 2019

 

$

265,792

 

 

$

(348,354

)

 

$

(12,873

)

 

$

(14,592

)

 

$

(45,846

)

 

$

28,624.00

 

 

$

52,599

 

Receipt of common units due to annual common unit adjustment

 

 

3,620

 

 

 

(3,620

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Revenues earned under ESA (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(4,689

)

 

 

—

 

 

 

4,689

 

Interest accrued related to significant financing component

 

 

—

 

 

 

(23,595

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,595

 

 

 

—

 

Receipt of excess cash distributions

 

 

(12,022

)

 

 

—

 

 

 

(5,914

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17,936

 

Receipt under tax receivable agreement

 

 

(2,146

)

 

 

—

 

 

 

(1,061

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,207

 

Equity in loss

 

 

(10,627

)

 

 

—

 

 

 

—

 

 

 

10,627

 

 

 

—

 

 

 

—

 

 

 

—

 

Impairment of investment in NCM (2)

 

 

(92,655

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of screen advertising advances

 

 

—

 

 

 

31,314

 

 

 

—

 

 

 

—

 

 

 

(31,314

)

 

 

—

 

 

 

—

 

Balance as of and for the year ended December 31, 2020

 

$

151,962

 

 

$

(344,255

)

 

$

(6,975

)

 

$

10,627

 

 

$

(36,003

)

 

$

23,595

 

 

$

25,832

 

Receipt of common units due to annual common unit adjustment

 

 

10,237

 

 

 

(10,237

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Revenues earned under ESA (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12,001

)

 

 

—

 

 

 

12,001

 

Interest accrued related to significant financing component

 

 

—

 

 

 

(23,612

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23,612

 

 

 

—

 

Receipt under tax receivable agreement

 

 

(156

)

 

 

—

 

 

 

(77

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

233

 

Equity in loss

 

 

(26,599

)

 

 

—

 

 

 

—

 

 

 

26,599

 

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of screen advertising advances

 

 

—

 

 

 

32,078

 

 

 

—

 

 

 

—

 

 

 

(32,078

)

 

 

—

 

 

 

—

 

 

Balance as of and for the year ended December 31, 2021

 

$

135,444

 

 

$

(346,026

)

 

$

(77

)

 

$

26,599

 

 

$

(44,079

)

 

$

23,612

 

 

$

12,234

 
(1)
Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire. The amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire were approximately $11,478, $2,605 and $4,952 for the years ended December 31, 2019, 2020 and 2021, respectively. Amounts unpaid to the Company and recorded in accounts receivable on the consolidated balance sheets were $636 and $4,498 as of the years ended December 31, 2020 and 2021, respectively.
(2)
Recorded in impairment of long-lived and other assets on the consolidated income statement for the year ended December 31, 2020. See further discussion at Fair Value of Investment in NCM below.
(3)
Excess cash distributions from NCM decreased beginning in the second quarter of 2020 primarily as a result of the impact of the COVID-19 discussed at Note 3. Excess cash distributions will be restricted through December 2023 in accordance with the credit agreement amendment NCM recently entered into with its lenders.
Summary of Common Units Received Under Common Unit Adjustment Agreement

Below is a summary of common units received by the Company under the Common Unit Adjustment (“CUA”) Agreement during the years ended December 31, 2019, 2020 and 2021:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Event

 

Date Common Units Received

 

Number of Common Units Received

 

 

Fair Value of Common Units Received

 

2019 annual common unit adjustment

 

3/31/2019

 

 

219,056

 

 

$

1,552

 

2020 annual common unit adjustment

 

3/31/2020

 

 

1,112,368

 

 

$

3,620

 

2021 annual common unit adjustment

 

4/14/2021

 

 

2,311,482

 

 

$

10,237

 
Summary Financial Information

Summary Financial Information for NCM

The tables below present summary financial information for NCM for its fiscal periods indicated:

 

 

 

Year Ended

 

 

Year Ended

 

 

Year Ended

 

 

 

December 26, 2019

 

 

December 31, 2020

 

 

December 30, 2021

 

Revenues

 

$

444,800

 

 

$

89,887

 

 

$

114,639

 

Operating income (loss)

 

$

155,700

 

 

$

(59,671

)

 

$

(68,576

)

Net income (loss)

 

$

98,800

 

 

$

(115,753

)

 

$

(134,562

)

 

 

 

 

As of

 

 

As of

 

 

 

December 31, 2020

 

 

December 30, 2021

 

Current assets

 

$

142,566

 

 

$

114,620

 

Noncurrent assets

 

$

685,643

 

 

$

658,438

 

Current liabilities

 

$

46,872

 

 

$

66,806

 

Noncurrent liabilities

 

$

1,072,207

 

 

$

1,114,712

 

Members' deficit

 

$

(290,870

)

 

$

(408,460

)