Lease Accounting

3 Months Ended

Mar. 31, 2023

The following table represents the Company’s aggregate lease costs, by lease classification, for the periods presented.


		Three Months Ended
		March 31,
Lease Cost	Classification	2023		2022
Operating lease costs
Equipment (1)	Utilities and other	$	1.4	$	0.6
Real Estate (2)(3)	Facility lease expense		82.1		75.0
Total operating lease costs		$	83.5	$	75.6

Finance lease costs
Amortization of leased assets	Depreciation and amortization	$	3.0	$	3.1
Interest on lease liabilities	Interest expense		1.2		1.4
Total finance lease costs		$	4.2	$	4.5

(1)

Includes approximately $1.3 and $0.5 of short-term lease payments for the three months ended March 31, 2023 and 2022, respectively.

(2)

Includes approximately $12.7 and $5.9 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenue or attendance and variable common area maintenance costs for the three months ended March 31, 2023 and 2022, respectively.

(3)

Approximately $0.3 and $0.3 of lease payments are included in general and administrative expense primarily related to office leases for the three months ended March 31, 2023 and 2022, respectively.

The following table represents the minimum cash lease payments included in the measurement of lease liabilities and the non-cash addition of lease right-of-use assets for the periods presented.


	Three Months Ended
	March 31,
Other Information	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Cash outflows for operating leases	$	69.6	$	69.3
Cash outflows for finance leases - operating activities	$	1.2	$	1.4
Cash outflows for finance leases - financing activities	$	3.5	$	3.6
Non-cash amount of right-of-use assets obtained in exchange for:
Operating lease liability additions, net of write-offs	$	9.5	$	11.8

As of March 31, 2023, the Company had signed lease agreements with total noncancelable lease payments of approximately $57.5 related to theatre leases that had not yet commenced. The timing of lease commencement is dependent on the completion of construction of the related theatre facility. Additionally, these amounts are based on estimated square footage and costs to construct each facility and may be subject to adjustment upon final completion of each construction project. In accordance with ASC Topic 842, Leases, fixed minimum lease payments related to these theatres are not included in the right-of-use assets and lease liabilities as of March 31, 2023.