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Lease Accounting
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Lease Accounting
3.
Lease Accounting

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

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

Lease Cost

Classification

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating lease costs

 

 

 

 

 

 

 

 

 

 

 

 

Equipment (1)

Utilities and other

$

1.3

 

 

$

1.0

 

 

$

2.7

 

 

$

1.6

 

Real Estate (1)

Facility lease expense

 

90.8

 

 

 

81.9

 

 

 

172.9

 

 

 

156.9

 

Total operating lease costs

 

$

92.1

 

 

$

82.9

 

 

$

175.6

 

 

$

158.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance lease costs

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of leased assets

Depreciation and amortization

$

3.0

 

 

$

3.2

 

 

$

6.0

 

 

$

6.3

 

Interest on lease liabilities

Interest expense

 

1.3

 

 

 

1.3

 

 

 

2.5

 

 

 

2.7

 

Total finance lease costs

 

$

4.3

 

 

$

4.5

 

 

$

8.5

 

 

$

9.0

 
(1)
Includes short-term lease payments, variable lease payments and office lease payments reflected in general and administrative expense as set forth in the following table for the periods presented:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

Lease Cost

Classification

2023

 

 

2022

 

 

2023

 

 

2022

 

Operating lease costs

 

 

 

 

 

 

 

 

 

 

 

 

Equipment - Short-term lease payments

Utilities and other

$

1.2

 

 

$

0.9

 

 

$

2.5

 

 

$

1.4

 

Real Estate - Variable lease payments (1)

Facility lease expense

$

20.1

 

 

$

12.2

 

 

$

32.8

 

 

$

18.1

 

Real Estate - Office leases

General and administrative

$

0.3

 

 

$

0.4

 

 

$

0.6

 

 

$

0.7

 

(1) Represents lease payments that are based on a change in index, such as CPI or inflation, variable payments based on revenue or attendance and variable common area maintenance costs

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.

 

 

Six Months Ended

 

 

 

June 30,

 

Other Information

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Cash outflows for operating leases

 

$

140.3

 

 

$

139.1

 

Cash outflows for finance leases - operating activities

 

$

2.5

 

 

$

2.7

 

Cash outflows for finance leases - financing activities

 

$

7.1

 

 

$

7.2

 

Non-cash amount of right-of-use assets obtained in exchange for:

 

 

 

 

 

 

Operating lease liability additions, net of write-offs

 

$

46.3

 

 

$

57.0

 

As of June 30, 2023, the Company had signed lease agreements with total noncancelable lease payments of approximately $56.4 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 June 30, 2023.