OPERATING SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2022

OPERATING SEGMENTS

Schedule of financial information by reportable operating segment

	Three Months Ended				Six Months Ended
Revenues (In millions)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
U.S. markets	$	907.9	$	374.8	$	1,471.0	$	512.0
International markets		258.5		69.9		481.1		81.0
Total revenues	$	1,166.4	$	444.7	$	1,952.1	$	593.0

	Three Months Ended				Six Months Ended
Adjusted EBITDA (In millions)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
U.S. markets	$	94.4	$	(118.0)	$	51.0	$	(318.4)
International markets		12.3		(32.8)		(6.0)		(127.1)
Total Adjusted EBITDA (1)	$	106.7	$	(150.8)	$	45.0	$	(445.5)

(1) The Company presents Adjusted EBITDA as a supplemental measure of its performance. The Company defines Adjusted EBITDA as net earnings (loss) plus (i) income tax provision (benefit), (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of the Company’s ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in International markets and any cash distributions of earnings from its other equity method investees. The measure of segment profit and loss the Company uses to evaluate performance and allocate its resources is Adjusted EBITDA, which is consistent with how Adjusted EBITDA is defined in the Company’s debt indentures.

	Three Months Ended				Six Months Ended
Capital Expenditures (In millions)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
U.S. markets	$	30.3	$	13.8	$	51.4	$	20.4
International markets		10.1		4.1		23.8		9.4
Total capital expenditures	$	40.4	$	17.9	$	75.2	$	29.8

Schedule of information about the Company's revenues from continuing operations and assets by geographic area

	As of		As of
Long-term assets, net (In millions)	June 30, 2022		December 31, 2021
U.S. markets	$	6,397.9	$	6,434.5
International markets		2,209.0		2,516.7
Total long-term assets (1)	$	8,606.9	$	8,951.2

(1) Long-term assets are comprised of property, net, operating lease right-of-use assets, intangible assets, goodwill, deferred tax assets, net and other long-term assets.

Schedule of reconciliation of net earnings to Adjusted EBITDA

	Three Months Ended				Six Months Ended
(In millions)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Net loss	$	(121.6)	$	(344.0)	$	(459.0)	$	(911.2)
Plus:
Income tax provision (benefit)		0.6		(5.2)		0.7		(12.0)
Interest expense		90.3		98.9		182.7		261.7
Depreciation and amortization		97.4		105.7		196.1		219.8
Certain operating expense (1)		3.9		(4.0)		6.2		(1.7)
Equity in loss of non-consolidated entities		1.0		2.7		6.1		5.5
Cash distributions from non-consolidated entities (2)		0.9		—		1.6		0.3
Attributable EBITDA (3)		(0.2)		0.7		—		(0.1)
Investment expense (income) (4)		57.3		(6.3)		(6.1)		(8.3)
Other expense (income) (5)		(35.1)		(0.3)		104.7		(5.1)
Other non-cash rent benefit (6)		(6.9)		(11.7)		(14.0)		(19.2)
General and administrative — unallocated:
Merger, acquisition and other costs (7)		(0.3)		4.3		0.1		11.0
Stock-based compensation expense (8)		19.4		8.4		25.9		13.8
Adjusted EBITDA	$	106.7	$	(150.8)	$	45.0	$	(445.5)

(1) Amounts represent preopening expense related to temporarily closed screens under renovation, theatre and other closure expense for the permanent closure of screens, including the related accretion of interest, disposition of assets and other non-operating gains or losses included in operating expenses. The Company has excluded these items as they are non-cash in nature or are non-operating in nature.

(2) Includes U.S. non-theatre distributions from equity method investments and International non-theatre distributions from equity method investments to the extent received. The Company believes including cash distributions is an appropriate reflection of the contribution of these investments to the Company’s operations.

(3) Attributable EBITDA includes the EBITDA from equity investments in theatre operators in certain International markets. See below for a reconciliation of the Company’s equity in loss of non-consolidated entities to attributable EBITDA. Because these equity investments are in theatre operators in regions where the Company holds a significant market share, the Company believes attributable EBITDA is more indicative of the performance of these equity investments and management uses this measure to monitor and evaluate these equity investments. The Company also provides services to these theatre operators including information technology systems, certain on-screen advertising services and the Company’s gift card and package ticket program.

	Three Months Ended				Six Months Ended
(In millions)	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Equity in loss of non-consolidated entities	$	1.0	$	2.7	$	6.1	$	5.5
Less:
Equity in loss of non-consolidated entities excluding International theatre joint ventures		0.1		0.3		0.4		1.5
Equity in (loss) of International theatre joint ventures		(0.9)		(2.4)		(5.7)		(4.0)
Income tax benefit		—		0.1		—		(0.1)
Investment income		0.2		—		0.2		—
Interest expense		—		0.2		—		0.2
Impairment of long-lived assets		—		—		4.2		—
Depreciation and amortization		0.5		2.7		1.3		3.6
Other expense		—		0.1		—		0.2
Attributable EBITDA	$	(0.2)	$	0.7	$	—	$	(0.1)

(4) Investment expense (income) during the three months ended June 30, 2022 includes deterioration in estimated fair value of the Company’s investment in common shares of Hycroft Mining Holding Corporation of $27.8 million and deterioration in estimated fair value of the Company’s investment in warrants to purchase

common shares of Hycroft Mining Holding Corporation of $20.0 million. During the three months ended June 30, 2022 investment expense (income) includes deterioration in estimated fair value of the Company’s investment in NCM of $9.6 million.

Investment expense (income) during the six months ended June 30, 2022 includes appreciation in estimated fair value of the Company’s investment in common shares of Hycroft Mining Holding Corporation of $(1.0) million and appreciation in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft Mining Holding corporation of $(15.1) million. During the six months ended June 30, 2022, investment expense (income) includes deterioration in estimated fair value of the Company’s investment in NCM of $9.5 million.

(5) Other expense (income) during the three months ended June 30, 2022, included gain on debt extinguishment of $(38.6) million and foreign currency transaction losses of $3.6 million. During the three months ended June 30, 2021, other expense (income) included estimated credit income of $(3.7) million related to decreases in contingent lease guarantees, partially offset by foreign currency transaction losses of $3.4 million.

Other expense (income) during the six months ended June 30, 2022, included loss on debt extinguishment of $96.4 million and foreign currency transaction losses of $8.4 million. During the six months ended June 30, 2021, other expense (income) included foreign currency transaction gains of $(0.4) million and estimated credit income of $(5.7) million related to decreases in contingent lease guarantees, partially offset by financing fees of $1.0 million primarily related to deferred financing cost write-off for the Odeon revolving credit facility.

(6) Reflects amortization expense for certain intangible assets reclassified from depreciation and amortization to rent expense due to the adoption of ASC 842, Leases and deferred rent benefit related to the impairment of right-of-use operating lease assets.

(7) Merger, acquisition and other costs are excluded as they are non-operating in nature.

(8) Non-cash or non-recurring expense included in general and administrative: other.