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Adoption of ASC Topic 842 - Lease Accounting (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Operating and Finance Right-of-Use Assets and Lease Liabilities

The following table represents the operating and finance right-of-use assets and lease liabilities as of June 30, 2019.

		As of
Leases	Classification	June 30, 2019
Assets ⁽¹⁾
Operating lease assets	Operating lease assets	$	1,429,451
Finance lease assets	Theatre properties and equipment, net of accumulated depreciation and amortization ⁽²⁾		122,759
Total lease assets		$	1,552,210

Liabilities ⁽¹⁾
Current
Operating	Current portion of operating lease obligations	$	215,060
Finance	Current portion of finance lease obligations		15,233
Noncurrent
Operating	Operating lease obligations, less current portion		1,274,599
Finance	Finance lease obligations, less current portion		130,311
Total lease liabilities		$	1,635,203

(1)

The operating lease right-of-use assets and liabilities recorded on the Company’s condensed consolidated balance sheet generally do not include renewal options that have not yet been exercised. The Company does not consider a lease renewal as reasonably certain until immediately before the necessary notification is provided to the landlord.

(2)	Finance lease assets are net of accumulated amortization of $54,243 as of June 30, 2019.

Schedule of Aggregate Lease Costs by Lease Classification

The following table represents the Company’s aggregate lease costs, by lease classification, for the three and six months ended June 30, 2019.

		Three Months Ended		Six Months Ended
Lease Cost	Classification	June 30, 2019		June 30, 2019
Operating lease costs
Equipment ⁽¹⁾	Utilities and other	$	1,861	$	3,604
Theatres ⁽²⁾⁽³⁾	Facility lease expense		89,849		174,634
Total operating lease costs		$	91,710	$	178,238

Finance lease costs
Amortization of leased assets	Depreciation and amortization	$	3,739	$	7,479
Interest on lease liabilities	Interest expense		1,984		4,005
Total finance lease costs		$	5,723	$	11,484

(1)	Includes approximately $736 and $1,356 of short-term lease payments for the three and six months ended June 30, 2019, respectively.

(2)	Includes approximately $20,344 and $35,618 of variable lease payments based on a change in index, such as CPI or inflation, variable payments based on revenues or attendance and variable common area maintenance costs for the three and six months ended June 30, 2019

(3)	Approximately $382 and $784 of lease payments are included in general and administrative expenses primarily related to office leases for the three and six months ended June 30, 2019, respectively.

Schedule of Maturity of Lease Liabilities by Lease Classification

The following table represents the maturity of lease liabilities, by lease classification, as of June 30, 2019.

	Operating		Finance
Years Ending	Leases		Leases		Total
2019	$	141,043	$	11,150	$	152,193
2020		275,089		22,373		297,462
2021		257,560		18,661		276,221
2022		227,987		17,925		245,912
2023		196,942		17,236		214,178
After 2023		697,076		101,109		798,185
Total lease payments	$	1,795,697	$	188,454	$	1,984,151
Less: Interest		306,038		42,910		348,948
Present value of lease liabilities	$	1,489,659	$	145,544	$	1,635,203

Estimated Future Minimum Lease Payments Under Operating Leases

The following table represents future minimum lease payments under noncancelable operating and capital leases at December 31, 2018 as presented in the Company’s Annual Report on Form 10-K filed February 28, 2019:

	Operating		Capital
Years Ending	Leases		Leases
2019	$	253,323	$	42,434
2020		242,336		41,502
2021		230,396		34,589
2022		204,628		32,462
2023		176,802		28,534
Thereafter		677,091		166,375
Total	$	1,784,576		345,896
Amounts representing interest payments				(86,364	)
Present value of future minimum payments				259,532
Current portion of finance and capital lease obligations				(27,065	)
Capital lease obligations, less current portion			$	232,467

Estimated Future Minimum Lease Payments Under Capital Leases

	Operating		Capital
Years Ending	Leases		Leases
2019	$	253,323	$	42,434
2020		242,336		41,502
2021		230,396		34,589
2022		204,628		32,462
2023		176,802		28,534
Thereafter		677,091		166,375
Total	$	1,784,576		345,896
Amounts representing interest payments				(86,364	)
Present value of future minimum payments				259,532
Current portion of finance and capital lease obligations				(27,065	)
Capital lease obligations, less current portion			$	232,467

Schedule of Weighted-Average Remaining Lease Term and Discount Rate

The following table represents the weighted-average remaining lease term and discount rate, disaggregated by lease classification, as of June 30, 2019.

	As of
Lease Term and Discount Rate	June 30, 2019
Weighted-average remaining lease term (years) ⁽¹⁾
Operating leases - equipment		4.4
Operating leases - theatres		8.1
Finance leases - equipment		6.1
Finance leases - theatres		10.7

Weighted-average discount rate ⁽²⁾
Operating leases - equipment		4.3	%
Operating leases - theatres		4.8	%
Finance leases - equipment		5.5	%
Finance leases - theatres		5.3	%

(1)

The lease right-of-use assets and liabilities recorded on the Company’s condensed consolidated balance sheet generally do not include renewal options that have not yet been executed. The Company does not consider a lease renewal exercise as reasonably certain until immediately before the necessary notification is provided to the landlord.

(2)

The discount rate for each lease represents the incremental borrowing rate that the Company would incur to borrow on a collateralized basis over a similar term and amount equal to lease payments in a similar economic environment.

Schedule of Minimum Cash Lease Payments

The following table represents the minimum cash lease payments included in the measurement of lease liabilities and the non-cash addition of right-of-use assets for the six months ended June 30, 2019.

	Six Months Ended
Other Information	June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Cash outflows for operating leases	$	141,264
Cash outflows for finance leases - operating activities	$	3,893
Cash outflows for finance leases - financing activities	$	7,131
Non-cash amount of leased assets obtained in exchange for:
Operating lease liabilities - theatres	$	37,582
Operating lease liabilities - equipment	$	339
Finance lease liabilities	$	—