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INVESTMENT IN NATIONAL CINEMEDIA, INC/NATIONAL CINEMEDIA LLC (Tables)
 12 Months Ended
Dec. 31, 2023
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, 2023 and when the Company expects to recognize this revenue.

 

 

Year Ended December 31,

 

 

 

 

 

 

 

Remaining Performance Obligations

 

2024

 

 

2025

 

 

Thereafter

 

 

Total

 

Other deferred revenue

 

$

195.2

 

 

 

26.4

 

 

 

—

 

 

$

221.6

 
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 NCM screen advertising advances is recorded on a straight-line basis over the new term of the amended ESA through February 2041.

 

 

Year Ended December 31,

 

 

 

 

 

 

 

Remaining Maturity

 

2024

 

 

2025

 

 

2026

 

 

2027

 

 

2028

 

 

Thereafter

 

 

Total

 

NCM screen advertising advances (1)

 

$

10.5

 

 

$

11.2

 

 

$

12.0

 

 

$

12.8

 

 

$

13.7

 

 

$

268.2

 

 

$

328.4

 
(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 NCMI/NCM

Below is a summary of activity with NCMI and NCM included in each of Holdings’ and CUSA’s consolidated financial statements for the periods indicated. See Note 5 for discussion of revenue recognition.

 

 

Investment
 in NCMI/NCM

 

 

NCM Screen Advertising Advances

 

 

Distributions from NCM (5)

 

 

Equity
in Loss (3)

 

 

Other Revenue

 

 

Interest Expense
- NCM

 

 

Cash Received

 

Balance as of January 1, 2021

 

$

152.0

 

 

$

(344.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Receipt of common units due to annual common unit adjustment

 

 

10.2

 

 

 

(10.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Screen rental revenues earned under ESA (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(12.0

)

 

 

—

 

 

 

12.0

 

Interest accrued related to significant financing component

 

 

—

 

 

 

(23.6

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23.6

 

 

 

—

 

Receipt under tax receivable agreement

 

 

(0.2

)

 

 

—

 

 

 

(0.1

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.3

 

Equity in loss

 

 

(26.6

)

 

 

—

 

 

 

—

 

 

 

26.6

 

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of screen advertising advances

 

 

—

 

 

 

32.1

 

 

 

—

 

 

 

—

 

 

 

(32.1

)

 

 

—

 

 

 

—

 

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

 

$

135.4

 

 

$

(346.0

)

 

$

(0.1

)

 

$

26.6

 

 

$

(44.1

)

 

$

23.6

 

 

$

12.3

 

Receipt of common units due to annual common unit adjustment

 

 

1.3

 

 

 

(1.3

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Screen rental revenues earned under ESA (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(19.9

)

 

 

—

 

 

 

19.9

 

Interest accrued related to significant financing component

 

 

—

 

 

 

(23.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23.2

 

 

 

—

 

Equity in loss

 

 

(13.9

)

 

 

—

 

 

 

—

 

 

 

13.9

 

 

 

—

 

 

 

—

 

 

 

—

 

Impairment of investment in NCM (2)

 

 

(113.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of screen advertising advances

 

 

—

 

 

 

32.3

 

 

 

—

 

 

 

—

 

 

 

(32.3

)

 

 

—

 

 

 

—

 

Balance as of and for the year ended December 31, 2022

 

$

9.6

 

 

$

(338.2

)

 

$

—

 

 

$

13.9

 

 

$

(52.2

)

 

$

23.2

 

 

$

19.9

 

Screen rental revenues earned under ESA (1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(20.9

)

 

 

—

 

 

 

20.9

 

Interest accrued related to significant financing component

 

 

—

 

 

 

(22.6

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

22.6

 

 

 

—

 

Redemption of common units of NCM for common stock of NCMI (2)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Equity in loss (3)

 

 

(3.2

)

 

 

—

 

 

 

—

 

 

 

3.2

 

 

 

—

 

 

 

—

 

 

 

—

 

Impairment of investment in NCMI (4)

 

 

(0.7

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Unrealized gain on fair market value adjustment of investment in NCMI (2)

 

 

12.4

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of screen advertising advances

 

 

—

 

 

 

32.4

 

 

 

—

 

 

 

—

 

 

 

(32.4

)

 

 

—

 

 

 

—

 

Balance as of and for the year ended December 31, 2023

 

$

18.1

 

 

$

(328.4

)

 

$

—

 

 

$

3.2

 

 

$

(53.3

)

 

$

22.6

 

 

$

20.9

 
(1)
Amounts include the per patron and per digital screen theatre access fees, 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 $4.9, $7.5 and $8.9 for the years ended December 31, 2021, 2022 and 2023, respectively. Amounts unpaid and reflected in accounts receivable were $4.9 and $4.9 as of December 31, 2022 and 2023, respectively.
(2)
See Investment in National CineMedia below.
(3)
Equity in loss was recorded through April 11, 2023, the date NCM filed its bankruptcy petition, after which the Company applied the fair value accounting method as discussed below.
(4)
Reflected in impairment of long-lived and other assets on the consolidated income statement for the year indicated. See further discussion at Investment in National CineMedia below.
(5)
Excess cash distributions from NCM to its members were restricted through December 2023 in accordance with the credit agreement amendment NCM entered into with its lenders and as a result of their bankruptcy filing. NCMI also suspended its dividend.
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, 2021 and 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Event

 

Date Common Units Received

 

Number of Common Units Received

 

 

Fair Value of Common Units Received (1)

 

2021 annual common unit adjustment

 

4/14/2021

 

 

2.3

 

 

$

10.2

 

2022 annual common unit adjustment

 

4/13/2022

 

 

0.5

 

 

$

1.3

 

(1) The fair value of the common units received was estimated based on the market price of NCMI common stock (Level 1 input as defined in FASB ASC Topic 820) at the time the common units were determined, adjusted for volatility associated with the estimated time period it would take to convert the common units and register the respective shares.
Summary Financial Information

Summary Financial Information for NCMI/NCM

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

 

 

 

Year Ended

 

 

Three Months Ended

 

 

 

December 30, 2021

 

 

December 29, 2022

 

 

March 30, 2023 (1)

 

Revenue

 

$

114.6

 

 

$

249.2

 

 

$

34.9

 

Operating income (loss)

 

$

(68.6

)

 

$

10.9

 

 

$

(30.6

)

Net loss

 

$

(134.6

)

 

$

(69.8

)

 

$

(54.0

)
(1)
Financial information for NCMI is presented for the latest reporting period available through which the Company accounted for its investment in NCMI under the equity method.

 

 

 

As of

 

 

 

December 29, 2022

 

 

March 30, 2023 (1)

 

Current assets

 

$

148.6

 

 

$

121.7

 

Noncurrent assets

 

$

628.2

 

 

$

618.5

 

Current liabilities

 

$

97.5

 

 

$

1,204.8

 

Noncurrent liabilities

 

$

1,161.6

 

 

$

67.2

 

Members'/Total deficit

 

$

(482.3

)

 

$

(531.8

)
(1)
Financial information for NCMI is presented for the latest reporting period available through which the Company accounted for its investment in NCMI under the equity method.