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INVESTMENTS IN AFFILIATES
12 Months Ended
Dec. 31, 2024
Financial Support for Nonconsolidated Legal Entity [Abstract]  
INVESTMENTS IN AFFILIATES
9.
INVESTMENTS IN AFFILIATES

Below is a summary of activity for each of the Company’s affiliates for the periods indicated:

 

 

AC JV,
LLC

 

 

DCDC

 

 

FE Concepts

 

 

Other (1)

 

 

Total

 

Balance at January 1, 2022

 

$

3.7

 

 

$

1.8

 

 

$

19.3

 

 

$

0.4

 

 

$

25.2

 

Equity in income

 

 

3.4

 

 

 

 

 

 

1.2

 

 

 

 

 

 

4.6

 

Cash distributions received

 

 

(2.9

)

 

 

 

 

 

(4.0

)

 

 

 

 

 

(6.9

)

Other (1)

 

 

 

 

 

 

 

 

 

 

 

(0.3

)

 

 

(0.3

)

Balance at December 31, 2022

 

$

4.2

 

 

$

1.8

 

 

$

16.5

 

 

$

0.1

 

 

$

22.6

 

Equity in income

 

 

4.9

 

 

 

0.3

 

 

 

1.6

 

 

 

 

 

 

6.8

 

Cash distributions received

 

 

(5.7

)

 

 

 

 

 

 

 

 

 

 

 

(5.7

)

Other (1)

 

 

 

 

 

 

 

 

 

 

 

(0.1

)

 

 

(0.1

)

Balance at December 31, 2023

 

$

3.4

 

 

$

2.1

 

 

$

18.1

 

 

$

 

 

$

23.6

 

Equity in income

 

 

10.0

 

 

 

0.5

 

 

 

1.4

 

 

 

 

 

 

11.9

 

Cash distributions received

 

 

(9.3

)

 

 

 

 

 

 

 

 

 

 

 

(9.3

)

Balance at December 31, 2024

 

$

4.1

 

 

$

2.6

 

 

$

19.5

 

 

$

 

 

$

26.2

 

(1)
Consists primarily of mark-to-market adjustment on an investment in marketable securities.

AC JV, LLC

AC JV, LLC (“ACJV”) is a joint venture that owns “Fathom Events” (consisting of Fathom Events and Fathom Consumer Events), of which the Company owns 32%. The Company accounts for its investment in ACJV under the equity method of accounting. The Fathom Events business focuses on the marketing and distribution of live and pre-recorded entertainment programming to various theater operators to provide additional programs to augment their feature film schedule. The Company paid event fees to ACJV of $13.3, $16.0 and $25.9 for the years ended December 31, 2022, 2023 and 2024, respectively, which are included in film rentals and advertising costs on our consolidated statements of income (loss).

Digital Cinema Distribution Coalition

The Company is a party to a joint venture with certain exhibitors and distributors called Digital Cinema Distribution Coalition (“DCDC”), which operates a satellite distribution network that distributes all digital content to U.S. theaters via satellite. The Company has an approximate 14.6% ownership in DCDC. The Company accounts for its investment in DCDC under the equity method of accounting. The Company paid approximately $0.5, $0.6 and $0.5 to DCDC during the years ended December 31, 2022, 2023 and 2024, respectively, related to content delivery services, which is included in film rentals and advertising costs on our consolidated statements of income (loss).

FE Concepts, LLC

During April 2018, the Company, through its wholly-owned indirect subsidiary CNMK Texas Properties, LLC (“CNMK”), formed a joint venture, FE Concepts, LLC (“FE Concepts”) with AWSR Investments, LLC (“AWSR”), an entity owned by Lee Roy Mitchell and Tandy Mitchell. In December 2019, FE Concepts opened a family entertainment center that offers bowling, gaming, movies and other amenities. The Company and AWSR each invested approximately $20 and each have a 50% voting interest in FE Concepts. The Company accounts for its investment in FE Concepts under the equity method of accounting. The Company has a theater services agreement with FE Concepts under which it receives service fees for providing film booking and equipment monitoring services for the facility. The Company recorded $0.1 of related service fees for each of the years ended December 31, 2022, 2023 and 2024.

Additional Considerations

The Company performs a qualitative impairment analysis for each of these equity investments annually during the fourth quarter. Based on the analysis performed, no impairment was recorded for the years ended December 31, 2022, 2023 and 2024