Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 06, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | CINEMARK USA INC /TX | |
Entity Central Index Key | 0000885975 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 33-47040 | |
Entity Tax Identification Number | 75-2206284 | |
Entity Address, Address Line One | 3900 Dallas Parkway | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75093 | |
City Area Code | 972 | |
Local Phone Number | 665-1000 | |
Entity Incorporation, State or Country Code | TX | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,500 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 182,648 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 314.3 | $ 442.7 | |
Inventories | 16.8 | 15.5 | |
Accounts receivable | 52.9 | 68.8 | |
Current income tax receivable | 46.5 | 46.6 | |
Prepaid expenses and other | 35 | 36.2 | |
Accounts receivable from parent | 49.2 | 46.7 | |
Total current assets | 514.7 | 656.5 | |
Theatre properties and equipment | 3,415.8 | 3,368.8 | |
Less: accumulated depreciation and amortization | 2,066.8 | 1,985.9 | |
Theatre properties and equipment, net | 1,349 | 1,382.9 | |
Operating lease right-of-use assets, net | 1,201.6 | 1,230.8 | |
Other assets | |||
Goodwill | [1] | 1,256.9 | 1,248.8 |
Intangible assets, net | 310.8 | 310.8 | |
Investments in affiliates | 25.8 | 25.2 | |
Deferred charges and other assets, net | 28.5 | 22.3 | |
Total other assets | 1,753.9 | 1,742.5 | |
Total assets | 4,819.2 | 5,012.7 | |
Current liabilities | |||
Current portion of long-term debt | 27.2 | 24.3 | |
Current portion of operating lease obligations | 219.4 | 217.1 | |
Current portion of finance lease obligations | 14.7 | 14.6 | |
Accounts payable and accrued expenses | 381.2 | 504.6 | |
Total current liabilities | 642.5 | 760.6 | |
Long-term liabilities | |||
Long-term debt, less current portion | 2,028.2 | 2,028.7 | |
Operating lease obligations, less current portion | 1,044.1 | 1,078.3 | |
Finance lease obligations, less current portion | 98.8 | 102.6 | |
Long-term deferred tax liability | 56 | 57.8 | |
Long-term liability for uncertain tax positions | 46.4 | 45.9 | |
Other long-term liabilities | 30.5 | 37.9 | |
Total long-term liabilities | 3,647.8 | 3,697.2 | |
Cinemark USA, Inc.'s stockholder's equity: | |||
Treasury stock, 57,245 Class B shares at cost | (24.2) | (24.2) | |
Additional paid-in-capital | 1,463.9 | 1,459 | |
Retained earnings | (606.5) | (544) | |
Accumulated other comprehensive loss | (366.9) | (397) | |
Total Cinemark USA, Inc.'s stockholder's equity | 515.8 | 543.3 | |
Noncontrolling interests | 13.1 | 11.6 | |
Total equity | 528.9 | 554.9 | |
Total liabilities and equity | 4,819.2 | 5,012.7 | |
NCM | |||
Current assets | |||
Accounts receivable | 6.2 | ||
Other assets | |||
Investment in NCM | 131.9 | 135.4 | |
Long-term liabilities | |||
NCM screen advertising advances | 343.8 | 346 | |
Class A common stock | |||
Cinemark USA, Inc.'s stockholder's equity: | |||
Common stock | 0 | 0 | |
Class B common stock | |||
Cinemark USA, Inc.'s stockholder's equity: | |||
Common stock | $ 49.5 | $ 49.5 | |
[1] | Balances are presented net of accumulated impairment losses of $ 214.0 for the U.S. operating segment and $ 43.8 for the international operating segment. See discussion of the qualitative impairment analysis performed by the Company as of March 31, 2022 at Note 12. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Treasury stock, shares | 57,245 | 57,245 |
Class A common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 1,500 | 1,500 |
Common stock, shares outstanding | 1,500 | 1,500 |
Class B common stock | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 239,893 | 239,893 |
Common stock, shares outstanding | 182,648 | 182,648 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF LOSS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Revenues | |||
Total revenues | $ 460.5 | $ 114.4 | |
Cost of operations | |||
Film rentals and advertising | 127.6 | 23.2 | |
Concession supplies | 30 | 7.2 | |
Salaries and wages | 79.8 | 31.2 | |
Facility lease expense | 73.7 | 64.8 | |
Utilities and other | 86.9 | 49.1 | |
General and administrative expenses | 39.9 | 35.1 | |
Depreciation and amortization | 61.7 | 68.2 | |
Restructuring costs | 0 | (0.2) | |
(Gain) loss on disposal of assets and other | (6.9) | 4.5 | |
Total cost of operations | 492.7 | 283.1 | |
Operating loss | (32.2) | (168.7) | |
Other income (expense) | |||
Interest expense | [1] | (32.1) | (30.5) |
Interest income | 1.6 | 0.6 | |
Loss on extinguishment of debt | 0 | (2.6) | |
Foreign currency exchange gain (loss) | 3.2 | (3) | |
Equity in loss of affiliates | (2.2) | (6.8) | |
Total other expense | (35.3) | (48) | |
Loss before income taxes | (67.5) | (216.7) | |
Income tax benefit | (6.5) | (13.2) | |
Net loss | (61) | (203.5) | |
Less: Net income (loss) attributable to noncontrolling interests | 1.5 | (0.6) | |
Net loss attributable to Cinemark USA, Inc. | (62.5) | (202.9) | |
Admissions | |||
Revenues | |||
Total revenues | 235.8 | 56.1 | |
Concession | |||
Revenues | |||
Total revenues | 173 | 39.5 | |
Other | |||
Revenues | |||
Total revenues | 51.7 | 18.8 | |
NCM | |||
Other income (expense) | |||
Distributions from NCM | 0.1 | ||
Interest expense - NCM | $ 5.8 | $ 5.8 | |
[1] | Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (61) | $ (203.5) |
Other comprehensive income (loss), net of tax | ||
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes and settlements | 14.6 | 5.7 |
Foreign currency translation adjustments | 14.4 | (9.5) |
Total other comprehensive income (loss), net of tax | 29 | (3.8) |
Total comprehensive loss, net of tax | (32) | (207.3) |
Comprehensive (income) loss attributable to noncontrolling interests | (1.5) | 0.6 |
Comprehensive loss attributable to Cinemark USA, Inc. | $ (33.5) | $ (206.7) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
Net loss | $ (61) | $ (203.5) |
Adjustments to reconcile net loss to cash used for operating activities: | ||
Depreciation | 61.1 | 67.5 |
Amortization of intangible and other assets | 0.6 | 0.7 |
Amortization of debt issue costs | 1.9 | 1.7 |
Amortization of accumulated losses for amended swap agreements | 1.1 | 1.1 |
Share based awards compensation expense | 4.9 | 4.4 |
(Gain) loss on disposal of assets and other | (6.9) | 4.5 |
Loss on extinguishment of debt | 0 | 2.6 |
Non-cash rent expense | (2.3) | 0.1 |
Equity in loss of affiliates | 2.2 | 6.8 |
Deferred income tax expense (benefit) | (7.9) | (17.9) |
Distributions from equity investees | 0.6 | 0.2 |
Changes in assets and liabilities and other | (100.4) | 9.9 |
Net cash used for operating activities | (108.5) | (124) |
Investing activities | ||
Additions to theatre properties and equipment | (18.7) | (17.7) |
Proceeds from sale of theatre properties and equipment and other | 10.6 | 0 |
Net cash used for investing activities | (8.1) | (17.7) |
Financing activities | ||
Restricted stock withholdings for payroll taxes | (1.6) | 0 |
Contributions from parent | 0 | 120 |
Proceeds from issuance of senior notes | 0 | 405 |
Proceeds from other borrowings | 0 | 9 |
Redemption of senior notes | 0 | (400) |
Repayments of long-term debt | (3.4) | (2) |
Payment of debt issue costs | 0 | (6) |
Fees paid related to debt refinancing | 0 | (1.5) |
Payments on finance leases | (3.6) | (3.7) |
Net cash provided by (used for) financing activities | (8.6) | 120.8 |
Effect of exchange rate changes on cash and cash equivalents | (3.2) | (1.6) |
Decrease in cash and cash equivalents | (128.4) | (22.5) |
Cash and cash equivalents: | ||
Beginning of period | 442.7 | 260.6 |
End of period | 314.3 | 238.1 |
NCM | ||
Adjustments to reconcile net loss to cash used for operating activities: | ||
Interest accrued on NCM screen advertising advances | 5.8 | 5.8 |
Amortization of NCM screen advertising advances and other deferred revenues | $ (8.2) | $ (7.9) |
The Company and Basis of Presen
The Company and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
The Company and Basis of Presentation | 1. The Company and Basis of Presentation Cinemark USA, Inc., a wholly-owned subsidiary of Cinemark Holdings, Inc., and its subsidiaries operate in the motion picture exhibition industry, with theatres in the United States (“U.S.”), Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. The accompanying condensed consolidated balance sheet as of December 31, 2021, which was derived from audited financial statements, and the unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from these estimates. Majority-owned subsidiaries of which the Company has control are consolidated while those affiliates of which the Company owns between 20 % and 50 % and does not control are accounted for under the equity method. Those affiliates of which the Company owns less than 20 % are generally accounted for under the cost method, unless the Company is deemed to have the ability to exercise significant influence over the affiliate, in which case the Company would account for its investment under the equity method. The results of these subsidiaries and affiliates are included in the condensed consolidated financial statements effective with their formation or from their dates of acquisition. Intercompany balances and transactions are eliminated in consolidation . These condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and the notes thereto for the year ended December 31, 2021, included in the Annual Report on Form 10-K filed March 9, 2022 by the Company under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results to be achieved for the full year. Amounts included in the condensed consolidated financial statements of this Quarterly Report on Form 10-Q are rounded in millions. The amounts reported in the consolidated financial statements, and the notes thereto, of the Annual Report on Form 10-K for the year ended December 31, 2021 filed March 9, 2022 are rounded in thousands. |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 3 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Impact of COVID-19 Pandemic | 2. Impact of the COVID-19 Pandemic The COVID-19 pandemic has had an unprecedented impact on the world and the movie exhibition industry with widespread social and economic effects. The Company temporarily closed its theatres in the U.S. and Latin America during March of 2020 at the onset of the COVID-19 outbreak. During that time, the Company implemented various cash preservation strategies, including, but not limited to, temporary personnel and salary reductions, halting non-essential operating and capital expenditures, negotiating modified timing and/or abatement of contractual payments with landlords and other major suppliers and the suspension of dividends to Cinemark Holdings, Inc. Throughout 2020 and 2021 the Company reopened theatres as local restrictions and the status of the COVID-19 pandemic would allow. All of the Company's domestic and international theatres were reopened by the end of the fourth quarter of 2021. The industry’s recovery from the COVID-19 pandemic is still underway and is contingent upon the volume of new film content available, as well as the box office performance of new film content released, consumer sentiment in returning to move theaters and government restrictions. The industry is also adjusting to the evolution of the exclusive theatrical window, competition from streaming platforms, supply chain constraints, inflationary impacts and other economic factors. Restructuring Charges During June 2020, Company management approved and announced a restructuring plan to realign its operations to create a more efficient cost structure (referred to herein as the “Restructuring Plan”) in response to the COVID-19 pandemic. The Restructuring Plan primarily included a headcount reduction at its domestic corporate office and the permanent closure of certain domestic and international theatres. The Company paid approximately $ 0.5 related to previously accrued restructuring costs during the three months ended March 31, 2022. The remaining accrued restructuring costs of $ 1.0 , which are primarily related to facility closure costs, are reflected in accounts payable and accrued expenses on the condensed consolidated balance sheet as of March 31, 2022. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 3. New Accounting Pronouncements Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , (“ASU 2020-04”) and ASU 2021-01, Reference Rate Reform (Topic 848): Scope , (“ASU 2021-01”) . The purpose of ASU 2020-04 is to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. More specifically, the amendments in ASU 2020-04 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2021-01 clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The amendments in ASU 2020-04 and ASU 2021-01 are effective as of March 12, 2020 through December 31, 2022. The Company does not expect ASU 2020-04 and ASU 2021-01 to have a material impact on its condensed consolidated financial statements. ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance , (“ASU 2021-10”). The purpose of ASU 2021-10 is to provide annual disclosure guidance about transactions with a government for which the entity is applying a grant or contribution accounting model by analogy. More specifically, the amendments in ASU 2021-10 require disclosure of a) the nature of the transactions and the related accounting policy used to account for the transactions, b) the line items on the balance sheet and income statement, including the amounts applicable to each line item, that are affected by the transactions and c) significant terms and conditions of the transactions, including commitments and contingencies. The amendments in ASU 2021-10 are effective for annual periods beginning after December 15, 2021. The amendments in ASU 2021-10 should be applied either a) prospectively to all transactions at the date of initial application and new transactions that are entered into after the date of initial application or b) retrospectively to those transactions. The Company will provide the disclosures required by ASU 2021-10 in its Form 10-K for the year ended December 31, 2022. |
Lease Accounting
Lease Accounting | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease Accounting | 4. Lease Accounting Lease Deferrals and Abatements Upon the temporary closure of theatres in March 2020, the Company began negotiating the deferral of rent and other lease-related payments with its landlords while theatres remained closed. These discussions and negotiations have remained ongoing as the Company continues to be impacted by the COVID-19 pandemic. These negotiations resulted in amendments to the leases that involve varying concessions, including the abatement of rent payments during closure, deferral of all or a portion of rent payments to later periods and deferrals of rent payments combined with an early exercise of an existing renewal option or extension of the lease term. Total remaining deferred payments as of March 31, 2022 and December 31, 2021 were $ 22.1 and $ 31.9 , respectively, and are included in accounts payable and accrued expenses in the condensed consolidated balance sheets. The following table represents the Company’s aggregate lease costs, by lease classification, for the periods presented. Three Months Ended March 31, Lease Cost Classification 2022 2021 Operating lease costs Equipment (1) Utilities and other $ 0.6 $ 0.4 Real Estate (2)(3) Facility lease expense 75.0 63.8 Total operating lease costs $ 75.6 $ 64.2 Finance lease costs Amortization of leased assets Depreciation and amortization $ 3.1 $ 3.2 Interest on lease liabilities Interest expense 1.4 1.6 Total finance lease costs $ 4.5 $ 4.8 (1) Includes approximately $ 0.5 and $ 0.3 of short-term lease payments for the three months ended March 31, 2022 and 2021 , respectively. (2) Includes approximately $ 5.9 and $ ( 2.3 ) 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 months ended March 31, 2022 and 2021, respectively. The credit amount for the three months ended March 31, 2022 is due to the abatement of certain lease payments as discussed at Lease Deferrals and Abatements above. (3) Approximately $ 0.3 and $ 0.4 of lease payments are included in general and administrative expenses primarily related to office leases for the three months ended March 31, 2022 and 2021 , respectively. 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. Three Months Ended March 31, Other Information 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Cash outflows for operating leases $ 69.3 $ 66.2 Cash outflows for finance leases - operating activities $ 1.4 $ 1.6 Cash outflows for finance leases - financing activities $ 3.6 $ 3.7 Non-cash amount of right-of-use assets obtained in exchange for: Operating lease liability additions, net of write-offs $ 11.8 $ 24.9 As of March 31, 2022 , the Company had signed lease agreements with total noncancelable lease payments of approximately $ 90.8 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, fixed minimum lease payments related to these theatres are not included in the right-of-use assets and lease liabilities as of March 31, 2022 . |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 5. Revenue Recognition The Company’s patrons have the option to purchase movie tickets well in advance of a movie showtime or right before the movie showtime, or at any point in between those two timeframes depending on seat availability. The Company recognizes such admissions revenue when the showtime for a purchased movie ticket has passed. Concession revenue is recognized when products are sold to the consumer. Other revenues primarily consist of screen advertising and screen rental revenues, promotional income, studio trailer placements and transactional fees. Except for National CineMedia, LLC. ("NCM") screen advertising advances discussed below in Note 8, these revenues are generally recognized when the Company has performed the related services. The Company sells gift cards and discount ticket vouchers, the proceeds from which are recorded as deferred revenue. Deferred revenue for gift cards and discount ticket vouchers is recognized when they are redeemed for concession items or, if redeemed for movie tickets, when the showtime has passed. The Company generally records breakage revenue on gift cards and discount ticket vouchers based on redemption activity and historical experience with unused balances. The Company offers a subscription program in the U.S. whereby patrons can pay a monthly or annual fee to receive a monthly credit for use towards a future movie ticket purchase. The Company records the subscription program fees as deferred revenue and records admissions revenue when the showtime for a movie ticket purchased with a credit has passed. The Company has loyalty programs in the U.S. and many of its international locations that either have a prepaid annual fee or award points to customers as purchases are made. For those loyalty programs that have a prepaid annual fee, the Company recognizes the fee collected as other revenue on a straight-line basis. For those loyalty programs that award points to customers based on their purchases, the Company records a portion of the original transaction proceeds as deferred revenue based on the number of reward points issued to customers and recognizes the deferred revenue when the customer redeems such points. The value of loyalty points issued is based on the estimated fair value of the rewards offered. The Company records breakage revenue on its loyalty and subscription programs generally upon the expiration of loyalty points or subscription credits. Advances collected on other contracts are deferred and recognized during the period in which the Company satisfies the related performance obligations, which may differ from the period in which the advances are collected. Accounts receivable as of March 31, 2022 and December 31, 2021 included approximately $ 22.6 and $ 23.5 respectively , of receivables related to contracts with customers. The Company did no t record any assets related to the costs to obtain or fulfill a contract with customers during the three months ended March 31, 2022. Disaggregation of Revenue The following tables represent revenues, disaggregated based on major type of good or service and by reportable operating segment, for the periods presented. Three Months Ended March 31, 2022 U.S. International Operating Operating Segment (1) Segment Consolidated Admissions revenues $ 191.8 $ 44.0 $ 235.8 Concession revenues 141.1 31.9 173.0 Screen advertising, screen rental and promotional revenues (2) 18.7 8.1 26.8 Other revenues 20.4 4.5 24.9 Total revenues $ 372.0 $ 88.5 $ 460.5 Three Months Ended March 31, 2021 U.S. International Operating Operating Segment (1) Segment Consolidated Admissions revenues $ 48.5 $ 7.6 $ 56.1 Concession revenues 33.0 6.5 39.5 Screen advertising, screen rental and promotional revenues (2) 11.2 2.2 13.4 Other revenues 4.4 1.0 5.4 Total revenues $ 97.1 $ 17.3 $ 114.4 (1) U.S. segment revenues exclude intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. (2) Amount includes amortization of NCM screen advertising advances. See Screen Advertising Advances and Deferred Revenues below. The following tables represent revenues, disaggregated based on timing of recognition and by reportable operating segment, for the periods presented. Three Months Ended March 31, 2022 U.S. International Operating Operating Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 348.3 $ 78.6 $ 426.9 Goods and services transferred over time (2) 23.7 9.9 33.6 Total $ 372.0 $ 88.5 $ 460.5 Three Months Ended March 31, 2021 U.S. International Operating Operating Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 80.5 $ 14.3 $ 94.8 Goods and services transferred over time (2) 16.6 3.0 19.6 Total $ 97.1 $ 17.3 $ 114.4 (1) U.S. segment revenues exclude intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. (2) Amount includes amortization of NCM screen advertising advances. See Screen Advertising Advances and Deferred Revenues below. Screen Advertising Advances and Other Deferred Revenues The following table presents changes in the Company’s NCM screen advertising advances and other deferred revenues for the three months ended March 31, 2022. NCM screen advertising advances (1) Other (2) Balance at January 1, 2022 $ 346.0 $ 160.3 Amounts recognized as accounts receivable — 0.5 Cash received from customers in advance — 49.6 Interest accrued related to significant financing component 5.8 — Revenue recognized during period ( 8.0 ) ( 40.2 ) Foreign currency translation adjustments — 1.5 Balance at March 31, 2022 $ 343.8 $ 171.7 (1) See Note 8 for the maturity of NCM screen advertising advances as of March 31, 2022 . (2) Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues collected but not yet earned for screen advertising, screen rental and other promotional activities. Amounts are classified as accounts payable and accrued expenses or other long-term liabilities on the condensed consolidated balance sheet . The table below summarizes the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied as of March 31, 2022 and when the Company expects to recognize this revenue. Twelve Months Ended March 31, Remaining Performance Obligations 2023 2024 Thereafter Total Other deferred revenues $ 152.1 $ 19.6 $ — $ 171.7 |
Long Term Debt
Long Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long Term Debt | 6. Long Term Debt Long-term debt consisted of the following for the periods presented: March 31, December 31, 2022 2021 Cinemark USA, Inc. term loan due 2025 $ 631.5 $ 633.1 Cinemark USA, Inc. 8.750% senior secured notes due 2025 250.0 250.0 Cinemark USA, Inc. 5.875% senior notes due 2026 405.0 405.0 Cinemark USA, Inc. 5.250% senior notes due 2028 765.0 765.0 Other 32.4 30.2 Total carrying value of long-term debt $ 2,083.9 $ 2,083.3 Less: Current portion 27.2 24.3 Less: Debt issuance costs, net of accumulated amortization 28.5 30.3 Long-term debt, less current portion, net of unamortized debt issuance costs $ 2,028.2 $ 2,028.7 Senior Secured Credit Facility Cinemark USA, Inc. has a senior secured credit facility that includes a $ 700.0 , term loan and a $ 100.0 revolving credit line (the “Credit Agreement”). As of March 31, 2022 , there was $ 631.5 outstanding under the term loan and no borrowings were outstanding under the revolving credit line. As of March 31, 2022, $ 100.0 was available for borrowing under the revolving credit line. Quarterly principal payments of $ 1.6 are due on the term loan through December 31, 2024 , with a final principal payment of $ 613.4 due on March 29, 2025 . The revolving credit line matures on November 28, 2024 . The average interest rate applicable to outstanding term loan borrowings under the Credit Agreement as of March 31, 2022 was approximately 3.4 % per annum, after giving effect to the interest rate swap agreements discussed below . Interest Rate Swap Agreements Below is a summary of the Company’s interest rate swap agreements, which are designated as cash flow hedges, as of March 31, 2022: Estimated Fair Value at Notional March 31, Amount Effective Date Pay Rate Receive Rate Expiration Date 2022 (1) $ 137.5 December 31, 2018 2.12 % 1-Month LIBOR December 31, 2024 $ 1.3 $ 175.0 December 31, 2018 2.12 % 1-Month LIBOR December 31, 2024 1.6 $ 137.5 December 31, 2018 2.19 % 1-Month LIBOR December 31, 2024 1.0 Total $ 3.9 (1) Approximately $ ( 1.7 ) of the total is included in accounts payable and accrued expenses and $ 5.6 is included in deferred charges and other assets, net on the condensed consolidated balance sheet as of March 31, 2022 . Effective March 31, 2020, the Company amended and extended its three then existing interest rate swap agreements and entered into a fourth interest rate swap agreement, all of which are used to hedge a portion of the interest rate risk associated with the variable interest rates on the Company’s term loan debt and qualify for cash flow hedge accounting. Upon amending the interest rate swap agreements effective March 31, 2020, the Company determined that the interest payments hedged with the agreements are still probable to occur, therefore the loss that accumulated on the swaps prior to the amendments of $ 29.4 is being amortized to interest expense through December 31, 2022, the original maturity dates of the swaps. Approximately $ 1.1 was recorded in interest expense in the condensed consolidated income statement for the three months ended March 31, 2022 and the three months ended March 31, 2021. The fair values of the interest rate swaps are recorded on the Company’s condensed consolidated balance sheets as an asset or liability with the related gains or losses reported as a component of accumulated other comprehensive loss. The changes in fair value are reclassified from accumulated other comprehensive loss into earnings in the same period that the hedged items affect earnings. The valuation technique used to determine fair value is the income approach and, under this approach, the Company uses projected future interest rates as provided by counterparties to the interest rate swap agreements and the fixed rates that the Company is obligated to pay under the agreement. Therefore, the Company’s measurements use significant unobservable inputs, which fall in Level 2 of the U.S. GAAP hierarchy as defined by FASB ASC Topic 820-10-35. The Company is assessing the impact of reference rate reform, as well as the impact of ASU 2020-04 and ASU 2021-01, on the Company's interest rate swaps. See further discussion at Note 3. Fair Value of Long-Term Debt The Company estimates the fair value of its long-term debt primarily using quoted market prices, which fall under Level 2 of the U.S. GAAP fair value hierarchy as defined by ASC 820, Fair Value Measurement (“ASC Topic 820”) . The table below presents the carrying value and fair value of the Company's long-term debt as of the periods presented: As of March 31, 2022 December 31, 2021 Carrying value (1) $ 2,083.9 $ 2,083.3 Fair value $ 1,993.8 $ 2,058.0 (1) The carrying value excludes unamortized debt issuance costs. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Equity | 7. Equity Below is a summary of changes in stockholders’ equity attributable to Cinemark USA, Inc., noncontrolling interests and total equity for the three months ended March 31, 2022 and 2021: Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings (Deficit) Accumulated Other Comprehensive Loss Total Cinemark USA, Inc. Stockholder's Equity Noncontrolling Interests Total Equity Balance at January 1, 2022 $ 49.5 $ ( 24.2 ) $ 1,459.0 $ ( 544.0 ) $ ( 397.0 ) $ 543.3 $ 11.6 $ 554.9 Share based awards compensation expense — — 4.9 — — 4.9 — 4.9 Net loss — — — ( 62.5 ) — ( 62.5 ) 1.5 ( 61.0 ) Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes and settlements — — — — 14.6 14.6 — 14.6 Amortization of accumulated losses for amended swap agreements — — — — 1.1 1.1 — 1.1 Foreign currency translation adjustments — — — — 14.4 14.4 — 14.4 Balance at March 31, 2022 $ 49.5 $ ( 24.2 ) $ 1,463.9 $ ( 606.5 ) $ ( 366.9 ) $ 515.8 $ 13.1 $ 528.9 Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings (Deficit) Accumulated Other Comprehensive Loss Total Cinemark USA, Inc. Stockholder's Equity Noncontrolling Interests Total Equity Balance at January 1, 2021 $ 49.5 $ ( 24.2 ) $ 1,310.6 $ ( 163.3 ) $ ( 398.6 ) $ 774.0 $ 11.0 $ 785.0 Share based awards compensation expense — — 4.4 — — 4.4 — 4.4 Contributions from parent — — 120.0 — — 120.0 — 120.0 Net loss — — — ( 202.9 ) — ( 202.9 ) ( 0.6 ) ( 203.5 ) Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes and settlements — — — — 5.7 5.7 — 5.7 Amortization of accumulated losses for amended swap agreements — — — — 1.1 1.1 — 1.1 Foreign currency translation adjustments — — — — ( 9.5 ) ( 9.5 ) — ( 9.5 ) Balance at March 31, 2021 $ 49.5 $ ( 24.2 ) $ 1,435.0 $ ( 366.2 ) $ ( 401.3 ) $ 692.8 $ 10.4 $ 703.2 |
Investment in National CineMedi
Investment in National CineMedia LLC | 3 Months Ended |
Mar. 31, 2022 | |
NCM | |
Investment in National CineMedia LLC | 8. Investment in National CineMedia LLC Below is a summary of activity with NCM included in the Company’s condensed consolidated financial statements: Investment NCM Screen Advertising Advances Equity in Other Interest Cash (2) Balance as of January 1, 2022 $ 135.4 $ ( 346.0 ) Screen rental revenues earned under ESA (1) — — $ — $ ( 4.2 ) $ — $ 4.2 Interest accrued related to significant financing component — ( 5.8 ) — — 5.8 — Equity in loss ( 3.5 ) — 3.5 — — — Amortization of screen advertising advances — 8.0 — ( 8.0 ) — — Balance as of and for the three months ended March 31, 2022 $ 131.9 $ ( 343.8 ) $ 3.5 $ ( 12.2 ) $ 5.8 $ 4.2 (1) Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire of approximately $ 1.5 . (2) The Company had a receivable from NCM of $ 6.2 as of March 31, 2022. Investment in National CineMedia NCM operates a digital in-theatre network in the U.S. for providing cinema advertising. The Company entered into an Exhibitor Services Agreement with NCM (“ESA”), pursuant to which NCM primarily provides advertising to our theatres. See Note 6 to the Company's Annual Report on Form 10-K filed March 9, 2022 for additional discussion of the Company's investment in NCM as well as the accounting for its original NCM membership units and subsequent common unit adjustments. Common Unit Adjustments The Company also periodically receives consideration in the form of common units from NCM. Annual adjustments to the common membership units are made primarily based on increases or decreases in the number of theatre screens operated and theatre attendance generated. The common units received are recorded at estimated fair value as an increase in the Company’s investment in NCM with an offset to NCM screen advertising advances. As of March 31, 2022, the Company owned a total of 43.2 common units of NCM representing an ownership interest of approximately 26 %. Each of the Company’s common units in NCM is convertible into one share of National Cinemedia, Inc. ("NCM, Inc.") common stock. As of March 31, 2022, the estimated fair value of the Company’s investment in NCM was approximately $ 109.6 based on NCM, Inc.’s stock price as of March 31, 2022 of $ 2.54 per share (Level 1 input as defined in FASB ASC Topic 820). The estimated fair value was below the Company’s carrying value of $ 131.9 . The Company believes the recent decline in NCMI’s stock price is a result of the continued impacts of the COVID-19 pandemic along with the market’s reaction to inflation and interest rate developments as well as global events. The Company continues to recover from the impacts of the COVID-19 pandemic, and the Company believes NCM will continue to recover as well, as new film content continues to be released on a consistent basis. Additionally, NCM, Inc.’s stock price was only below the Company's carrying value of NCM for less than two consecutive months as of March 31, 2022. During March 2022, NCM performed its annual common unit adjustment calculation under the Common Unit Adjustment Agreement. As a result of the calculation, the Company will receive an additional 0.5 common units of NCM during the second quarter of 2022. The Company will record the additional common units received in April 2022 at their estimated fair value with a corresponding adjustment to NCM screen advertising advances. Exhibitor Services Agreement As discussed above, the Company’s domestic theatres are part of the in-theatre digital network operated by NCM, the terms of which are defined in the ESA. NCM provides advertising to its theatres through its branded “ Noovie ” pre-show entertainment program and also handles lobby promotions and displays for our theatres. The Company receives a monthly theatre access fee for participation in the NCM network and also earns screen advertising or screen rental revenue on a per patron basis. See Note 6 to the Company's Annual Report on Form 10-K filed March 9, 2022 for further discussion of the accounting for revenues earned under the ESA as well as the accounting related to NCM screen advertising advances. The deferred NCM screen advertising advances are recorded on a straight-line basis over the term of the amended ESA through February 2041. The table below summarizes when the Company expects to recognize these revenues: Twelve Months Ended March 31, Remaining Maturity 2023 2024 2025 2026 2027 Thereafter Total NCM screen advertising advances (1) $ 9.3 $ 9.9 $ 10.6 $ 11.3 $ 12.1 $ 290.6 $ 343.8 (1) Amounts are net of the estimated interest to be accrued for the periods presented. See discussion of significant financing component below. Significant Financing Component As discussed in Note 6 to the Company's Annual Report on Form 10-K filed March 9, 2022, the Company's ESA with NCM includes an implied significant financing component, as per the guidance in ASC Topic 606. As a result of the significant financing component, the Company recognized incremental screen rental revenue and interest expense of $ 8.0 and $ 5.8 , respectively, during the three months ended March 31, 2022 and incremental screen rental revenue and interest expense of $ 7.9 and $ 5.8 , respectively, during the three months ended March 31, 2021. The interest expense was calculated using the Company’s incremental borrowing rates at the time when the cash was received from the NCM, Inc. IPO and each tranche of common units was received from NCM, which ranged from 4.4 % to 8.3 % . NCM Financial Information Below is summary financial information for NCM for the periods indicated: Three Months Ended Three Months ended March 31, 2022 April 1, 2021 Gross revenues $ 35.9 $ 5.4 Operating loss $ ( 22.5 ) $ ( 28.3 ) Net loss $ ( 39.5 ) $ ( 43.5 ) As of As of March 31, 2022 December 30, 2021 Current assets $ 125.9 $ 115.4 Noncurrent assets $ 656.8 $ 658.0 Current liabilities $ 56.7 $ 67.2 Noncurrent liabilities $ 1,163.1 $ 1,114.7 Members equity $ ( 437.1 ) $ ( 408.5 ) |
Other Investments
Other Investments | 3 Months Ended |
Mar. 31, 2022 | |
Financial Support for Nonconsolidated Legal Entity [Abstract] | |
Other Investments | 9. Other Investments Digital Cinema Implementation Partners LLC (“DCIP”) On February 12, 2007, the Company, AMC and Regal (the “Exhibitors”) entered into a joint venture known as DCIP to facilitate the implementation of digital cinema in the Company’s theatres and to establish agreements with major motion picture studios for the financing of digital cinema. As of March 31, 2022, the Company had a 33 % voting interest in DCIP and a 24.3 % economic interest in DCIP. DCIP also entered into long-term Digital Cinema Deployment Agreements (“DCDAs”) with six major motion picture studios pursuant to which Kasima LLC, one of DCIP’s subsidiaries, received a virtual print fee ("VPF") each time the studio booked a film or certain other content on the leased digital projection systems. Other content distributors entered into similar DCDAs that provided for the payment of VPFs for bookings of the distributor's content on a leased digital projection system. The DCDAs expired in October 2021. Pursuant to the operating agreement between the Exhibitors and DCIP, DCIP began to distribute excess cash generated from their operations to the Exhibitors during 2019. As the DCDAs have expired and the MELA between the Company and Kasima has been terminated, as discussed below, DCIP and its subsidiaries no longer have regular operations, and final distributions are expected to be made to the Company during 2022. Effective November 1, 2020, the Company amended the master equipment lease agreement (“MELA”) with Kasima LLC, which is an indirect subsidiary of DCIP, resulting in the termination of the MELA. Upon termination of the MELA, the Company received a distribution of the digital projection equipment that it previously leased. As the fair value of the distributed projectors was greater than the Company’s investment in DCIP at the time of the distribution, the investment in DCIP was reduced to zero at the time of the distribution. The Company does not recognize undistributed equity in the earnings or loss of its investment in DCIP until such time that future net earnings, less distributions received, surpass the amount of the excess distribution. The investment in DCIP on the condensed consolidated balance sheets as of December 31, 2021 and March 31, 2022 was $ 0 . Below is summary financial information for DCIP for the periods indicated: Three Months Ended March 31, 2022 March 31, 2021 Gross revenues $ 0.5 $ 5.6 Operating income (loss) $ ( 0.5 ) $ 4.0 Net income (loss) $ ( 0.6 ) $ 3.9 As of March 31, 2022 December 31, 2021 Current assets $ 22.1 $ 22.9 Current liabilities $ 11.4 $ 11.6 Members' equity $ 10.7 $ 11.3 Other Investment Activity Below is a summary of activity for each of the Company’s other investees and corresponding changes to the Company's investment balances during the three months ended March 31, 2022: AC JV, DCDC FE Concepts Other Total Balance at January 1, 2022 $ 3.7 $ 1.8 $ 19.3 $ 0.4 $ 25.2 Cash distributions received ( 0.6 ) — — — ( 0.6 ) Equity income 1.0 0.1 0.2 — 1.3 Other — — — ( 0.1 ) ( 0.1 ) Balance at March 31, 2022 $ 4.1 $ 1.9 $ 19.5 $ 0.3 $ 25.8 Transactions with Other Investees Below is a summary of transactions with each of the Company’s other investees for the three months ended March 31, 2022 and 2021: Three Months Ended Investee Transactions March 31, 2022 March 31, 2021 DCIP Equipment lease payments (1) $ — $ 1.0 DCIP Warranty reimbursements (2) $ — $ ( 0.3 ) AC JV, LLC Event fees paid (3) $ 1.8 $ 0.2 DCDC Content delivery fees paid (3) $ 0.2 $ 0.1 (1) As a result of the MELA amendment noted above, the Company recorded a lease termination liability during 2020. Lease termination payments of $ 1.0 made to DCIP during the three months ended March 31, 2021 reduced the liability outstanding, which was fully paid by October 2021. (2) Included in utilities and other costs on the condensed consolidated statements of loss. (3) Included in film rentals and advertising costs on the condensed consolidated statements of loss. 10. Share Based Awards Restricted Stock Below is a summary of restricted stock activity for the three months ended March 31, 2022: Shares of Weighted Restricted Grant Date Stock Fair Value Outstanding at January 1, 2022 2.00 $ 21.73 Granted 0.74 $ 16.64 Vested ( 0.33 ) $ 30.59 Forfeited ( 0.03 ) $ 19.99 Outstanding at March 31, 2022 2.38 $ 18.96 Unvested restricted stock at March 31, 2022 2.38 Three Months Ended 2022 2021 Compensation expense recognized by the Company during the period $ 4.0 $ 4.0 Additional compensation expense recognized by Cinemark Holdings, Inc. during the period $ 0.2 $ 0.2 Fair value of restricted shares held by Company employees that vested during the period $ 5.6 $ 1.2 Income tax benefit (cost) related to restricted stock awards held by Company employees $ 0.8 $ ( 0.1 ) During the three months ended March 31, 2022, Cinemark Holdings, Inc. granted 0.74 shares of restricted stock to employees of the Company. The fair value of the restricted stock granted was determined based on the closing price of the Cinemark Holdings, Inc.’s common stock, which ranged from $ 15.10 to $ 16.65 per share. The Company assumed forfeiture rates for the restricted stock awards that ranged from 0 % to 10 %. The restricted stock granted during the three months ended March 31, 2022 vest over periods ranging from one to four years . The recipients of restricted stock are entitled to receive non-forfeitable dividends and to vote their respective shares, however, the sale and transfer of the restricted shares is prohibited during the restriction period. As of March 31, 2022 , the estimated remaining unrecognized compensation expense related to unvested restricted stock awards was $ 30.0 , of which $ 29.8 will be recognized by the Company and $ 0.2 will be recognized by Cinemark Holdings, Inc. The weighted average period over which this remaining compensation expense will be recognized is approximately two years . Restricted Stock Units Below is a summary of restricted stock unit activity for the periods presented: Three Months Ended March 31, 2022 2021 Number of restricted stock unit awards that vested during the period 0.10 0.01 Fair value of restricted stock unit awards that vested during the period $ 1.7 $ 0.3 Accumulated dividends paid upon vesting of restricted stock unit awards $ 0.3 $ 0.1 Compensation expense recognized during the period $ 0.9 $ 0.5 Income tax benefit (cost) related to stock unit awards $ 0.3 $ ( 0.1 ) During the three months ended March 31, 2022, the Company granted performance awards in the form of restricted stock units. The maximum number of shares issuable under the performance awards is 0.80 shares of Cinemark Holdings, Inc.'s common stock. The performance metrics for these awards are based upon the achievement of pre-established criteria that consists of revenue and consolidated cash flows as defined in the award agreement. The performance measurement period for these performance awards is one year with an additional service requirement to the third anniversary of the date of grant. Each performance target underlying the performance award has a threshold, target and maximum level, with the maximum level equal to 175 % of the target award. If the performance metrics meet the threshold level, approximately 29 % of the maximum restricted stock units vest. If the performance metrics for the one-year period are at target, approximately 57 % of the maximum restricted stock units vest. If the performance metrics are at the maximum, 100 % of the maximum restricted stock units vest. Grantees are eligible to receive a ratable portion of the common stock issuable if the achievement of the performance goals is within the targets previously noted. All restricted stock units granted during 2022 will be paid in the form of common stock if the participant continues to provide services through the third anniversary of the grant date. Restricted stock unit award participants are eligible to receive dividend equivalent payments from the grant date to the extent declared by the Company if, and at the time that, the restricted stock unit awards vest . Company estimated that the most likely outcome is the achievement of the target level. The fair value of the restricted stock unit awards was determined based on the closing price of the Company’s common stock on the date of grant, which was $ 16.65 per share. The Company assumed a forfeiture rate of 5 % for the restricted stock unit awards. If during the service period, additional information becomes available to lead the Company to believe a different achievement level will be reached for the one-year performance period, the Company will reassess the number of units that are expected to vest for the grant and adjust its compensation expense accordingly over the remaining service period. As of March 31, 2022 , the estimated remaining unrecognized compensation expense related to outstanding restricted stock unit awards was $ 10.3 . The weighted average period over which this remaining compensation expense will be recognized is approximately two years . As of March 31, 2022 , the Company had restricted stock units outstanding that represented a total of 1.1 hypothetical shares of common stock, net of forfeitures, reflecting actual certified performance levels for restricted stock units granted during 2019 and 2020 and the maximum performance level for the 2022 grant discussed above. 11. Goodwill and Other Intangible Assets A summary of the Company’s goodwill is as follows: U.S. International Total Balance at January 1, 2022 (1) $ 1,182.9 $ 65.9 $ 1,248.8 Foreign currency translation adjustments — 8.1 8.1 Balance at March 31, 2022 (1) $ 1,182.9 $ 74.0 $ 1,256.9 (1) Balances are presented net of accumulated impairment losses of $ 214.0 for the U.S. operating segment and $ 43.8 for the international operating segment. See discussion of the qualitative impairment analysis performed by the Company as of March 31, 2022 at Note 12. A summary of the Company’s intangible assets is as follows: Balance at Amortization Foreign Currency Translation Adjustments Balance at March 31, 2022 Intangible assets with finite lives: Gross carrying amount $ 81.8 $ — $ 0.3 $ 82.1 Accumulated amortization ( 71.1 ) ( 0.6 ) — ( 71.7 ) Total net intangible assets with finite lives $ 10.7 $ ( 0.6 ) $ 0.3 $ 10.4 Intangible assets with indefinite lives: Tradename and other 300.1 — 0.3 300.4 Total intangible assets, net $ 310.8 $ ( 0.6 ) $ 0.6 $ 310.8 The estimated aggregate future amortization expense for intangible assets is as follows: Estimated Amortization For the nine months ended December 31, 2022 $ 2.0 For the twelve months ended December 31, 2023 2.5 For the twelve months ended December 31, 2024 2.5 For the twelve months ended December 31, 2025 1.9 For the twelve months ended December 31, 2026 1.5 Thereafter — Total $ 10.4 12. Impairment of Long-Lived Assets The Company performed a qualitative impairment analysis on its long-lived assets as of March 31, 2022. The Company’s qualitative analysis considered economic and market conditions, industry trading multiples and the impact of recent industry developments and events on the estimated fair values as determined during its most recent quantitative assessments as of December 31, 2021. The Company’s consideration of economic and market conditions included the status of the COVID-19 pandemic and its impact on the Company’s anticipated recovery as well as future film release schedules. As a result of the qualitative assessment, the Company noted no impairment indicators as of March 31, 2022. Further description of the Company's qualitative impairment analysis, by asset class, is as follows: • Goodwill – The Company’s qualitative assessment of goodwill for each reporting unit considers economic and market conditions, industry trading multiples and the impact of recent developments and events on the Company's estimated fair values as compared with its most recent quantitative assessment. • Tradename Intangible Assets – The Company’s qualitative assessment considers recent developments that may impact the Company's revenue forecasts and other estimates as compared with its most recent quantitative assessment. • Other Long-lived Assets – The Company’s qualitative assessment considers relevant market transactions, industry trading multiples and recent developments that would impact the Company's estimates of future cash flows, which are the primarily measure of estimated fair value, as compared with its most recent quantitative impairment assessment. 13. Fair Value Measurements The Company determines fair value measurements in accordance with ASC Topic 820, which establishes a fair value hierarchy under which an asset or liability is categorized based on the lowest level of input significant to its fair value measurement. The levels of input defined by ASC Topic 820 are as follows: Level 1 – quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date; Level 2 – other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable and should be used to measure fair value to the extent that observable inputs are not available. Below is a summary of assets and liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of March 31, 2022 and December 31, 2021: Carrying Fair Value Hierarchy Description As of, Value Level 1 Level 2 Level 3 Interest rate swap assets (1) March 31, 2022 $ 3.9 $ — $ 3.9 $ — Interest rate swap liabilities (1) December 31, 2021 $ 14.6 $ — $ 14.6 $ — (1) See further discussion of interest rate swaps at Note 6. The Company uses the market approach for fair value measurements on a nonrecurring basis in the impairment evaluations of its goodwill, intangible assets and long-lived assets (see Note 11 and Note 12). See additional explanation of fair value measurement techniques used for long-lived assets, goodwill and intangible assets in “Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed March 9, 2022. There were no changes in valuation techniques. There were no transfers into or out of Level 1, Level 2 or Level 3 during the three months ended March 31, 2022 . 14. Foreign Currency Translation The accumulated other comprehensive loss account in stockholders’ equity of $ 366.9 and $ 397.0 as of March 31, 2022 and December 31, 2021, respectively, primarily includes cumulative foreign currency net losses of $ 380.1 and $ 394.5 , respectively, from translating the financial statements of the Company’s international subsidiaries and the cumulative changes in fair value of the Company’s interest rate swap agreements that are designated as hedges. As of March 31, 2022, all foreign countries where the Company has operations are non-highly inflationary, other than Argentina. In non-highly inflationary countries, the local currency is the same as the functional currency and any fluctuation in the currency results in a cumulative foreign currency translation adjustment recorded to accumulated other comprehensive loss. The Company deemed Argentina to be highly inflationary beginning July 1, 2018. A highly inflationary economy is defined as an economy with a cumulative inflation rate of 100 percent or more over a three-year period. If a country’s economy is classified as highly inflationary, the financial statements of the foreign entity operating in that country must be remeasured to the functional currency of the reporting entity. The financial information of the Company’s Argentina subsidiaries was remeasured in U.S. dollars in accordance with ASC Topic 830, Foreign Currency Matters , effective July 1, 2018. Below is a summary of the impact of translating the March 31, 2022 and March 31, 2021 financial statements of the Company’s international subsidiaries: Other Comprehensive Income (Loss) for Exchange Rate as of Three Months Ended Country March 31, 2022 December 31, 2021 March 31, 2022 March 31, 2021 Brazil 4.8 5.6 $ 8.0 $ ( 6.9 ) Chile 788.6 852.0 4.8 ( 1.0 ) Peru 3.8 4.0 1.6 ( 1.2 ) All other — ( 0.4 ) $ 14.4 $ ( 9.5 ) As noted above, beginning July 1, 2018, Argentina was deemed highly inflationary. A foreign currency exchange gain of $ 0.5 and $ 0.2 was recorded for the three months ended March 31, 2022 and 2021, respectively, as a result of translating Argentina's financial results to U.S. dollars. 15. Supplemental Cash Flow Information The following is provided as supplemental information to the condensed consolidated statements of cash flows: Three Months Ended March 31, 2022 2021 Cash paid for interest $ 42.6 $ 22.3 Cash paid (refunds received) for income taxes, net $ 0.7 $ ( 1.9 ) Cash deposited in restricted accounts (1) $ — $ 7.3 Noncash operating activities: Interest expense - NCM (see Note 8) $ ( 5.8 ) $ ( 5.8 ) Noncash investing activities: Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment (2) $ ( 1.2 ) $ ( 7.0 ) (1) Represents cash deposited in a collateral account during the period to support the issuance of letters of credit to lenders. See further discussion at Note 6. (2) Additions to theatre properties and equipment included in accounts payable as of March 31, 2022 and December 31, 2021 were $ 7.0 and $ 8.2 , respectively. 16. Segments The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report total assets by segment because that information is not used to evaluate the performance of or allocate resources between segments. Below is a breakdown of selected financial information by reportable operating segment: Three Months Ended March 31, 2022 2021 Revenues U.S. $ 373.7 $ 97.3 International 88.5 17.3 Eliminations ( 1.7 ) ( 0.2 ) Total revenues $ 460.5 $ 114.4 Adjusted EBITDA U.S. $ 15.0 $ ( 76.5 ) International 10.8 ( 15.0 ) Total Adjusted EBITDA $ 25.8 $ ( 91.5 ) Capital expenditures U.S. $ 14.0 $ 13.7 International 4.7 4.0 Total capital expenditures $ 18.7 $ 17.7 The following table sets forth a reconciliation of net loss to Adjusted EBITDA: Three Months Ended March 31, 2022 2021 Net loss $ ( 61.0 ) $ ( 203.5 ) Add (deduct): Income taxes ( 6.5 ) ( 13.2 ) Interest expense (1) 32.1 30.5 Other expense, net (2) 3.2 15.0 Cash distributions from other equity investees (3) 0.6 0.1 Depreciation and amortization 61.7 68.2 Restructuring costs — ( 0.2 ) (Gain) loss on disposal of assets and other ( 6.9 ) 4.5 Loss on extinguishment of debt — 2.6 Non-cash rent expense ( 2.3 ) 0.1 Share based awards compensation expense 4.9 4.4 Adjusted EBITDA $ 25.8 $ ( 91.5 ) (1) Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements. (2) Includes interest income, foreign currency exchange (gain) loss, equity in loss of affiliates and interest expense - NCM and excludes distributions from NCM. (3) Reflects cash distributions received from equity investees that were recorded as a reduction of the respective investment balances (see Note 9). These distributions are reported entirely within the U.S. operating segment. Financial Information About Geographic Areas Below is a breakdown of selected financial information by geographic area: Three Months Ended March 31, Revenues 2022 2021 U.S. $ 373.7 $ 97.3 Brazil 33.1 $ 4.4 Other international countries 55.4 $ 12.9 Eliminations ( 1.7 ) $ ( 0.2 ) Total $ 460.5 $ 114.4 As of As of Theatre Properties and Equipment-net March 31, 2022 December 31, 2021 U.S. $ 1,166.8 $ 1,208.7 Brazil 62.9 56.8 Other international countries 119.3 117.4 Total $ 1,349.0 $ 1,382.9 17. Related Party Transactions The Company manages a theatre for Laredo Theatre, Ltd. (“Laredo”). The Company is the sole general partner and owns 75 % of the limited partnership interests of Laredo. Lone Star Theatres, Inc. owns the remaining 25 % of the limited partnership interests in Laredo and is 100 % owned by Mr. David Roberts, Lee Roy Mitchell’s son-in-law. Lee Roy Mitchell is Cinemark Holdings, Inc.’s Chairman of the Board of Directors and directly and indirectly owns approximately 9 % of Cinemark Holdings, Inc.’s common stock. Under the agreement, management fees are paid by Laredo to the Company at a rate of 5 % of annual theatre revenues. The Company recorded $ 0.1 and $ 0.0 of management fee revenues during the three months ended March 31, 2022 and 2021, respectively. All such amounts are included in the Company’s condensed consolidated financial statements with the intercompany amounts eliminated in consolidation. Walter Hebert, Mr. Mitchell’s brother-in-law, previously served as the Executive Vice President – Purchasing of the Company and retired in July 2021. Mr. Hebert now serves as a consultant to the Company until July 2022. During the three months ended March 31, 2022, the Company has paid Mr. Hebert $ 0.1 related to consulting services. The Company has an Aircraft Time Sharing Agreement with Copper Beech Capital, LLC (“Copper Beech”) to use, on occasion, a private aircraft owned by Copper Beech. Copper Beech is owned by Mr. Mitchell and his wife, Tandy Mitchell. The private aircraft is used by Mr. Mitchell and other executives who accompany Mr. Mitchell to business meetings for the Company. The Company reimburses Copper Beech for the actual costs of fuel usage and the expenses of the pilots, landing fees, storage fees and similar expenses incurred during the trip. For the three months ended March 31, 2022 and 2021, the Company did not make any payments to Copper Beech for the use of the aircraft. The Company leases 13 theatres from Syufy Enterprises, LP (“Syufy”) or affiliates of Syufy. Raymond Syufy is one of the directors of Cinemark Holdings, Inc. and is an officer of the general partner of Syufy. For the three months ended March 31, 2022 and 2021, the Company paid total rent of $ 5.6 and $ 6.0 , respectively, to Syufy. During 2019, the Company began providing digital equipment support to drive-in theatres owned by Syufy. The Company did not record any management fees related to these services during the three months ended March 31, 2022 and 2021. The Company has a 50 % voting interest in FE Concepts, a joint venture with AWSR, an entity owned by Lee Roy Mitchell and Tandy Mitchell. FE Concepts operates a family entertainment center that offers bowling, gaming, movies and other amenities. See Note 9 for further discussion. The Company has a theatre services agreement with FE Concepts under which the Company receives service fees for providing film booking and equipment monitoring services for the facility . The Company has paid certain fees on behalf of its parent, Cinemark Holdings, Inc., and Cinemark Holdings, Inc. has paid income taxes and other expenses on behalf of the Company. The net receivable from Cinemark Holdings, Inc. as of March 31, 2022 and December 31, 2021 was $ 49.2 and $ 46.7 , respectively. The Company received contributions from Cinemark Holdings, Inc. of $ 120.0 during the three months ended March 31, 2021. 18. Commitments and Contingencies From time to time, the Company is involved in various legal proceedings arising from the ordinary course of its business operations, such as personal injury claims, employment matters, patent claims, landlord-tenant disputes, contractual disputes with landlords over certain termination rights or the right to discontinue rent payments due to the COVID-19 pandemic and other contractual disputes, some of which are covered by insurance. The Company believes its potential liability with respect to proceedings currently pending is not material, individually or in the aggregate, to the Company’s financial position, results of operations and cash flows. Cinemark Holdings, Inc., et al vs Factory Mutual Insurance Company . The Company filed suit on November 18, 2020, in the District Court, 471st Judicial District, Collin County, Texas. On December 22, 2020, the case was moved to the US District Court for the Eastern District of Texas, Sherman Division. The Company submitted a claim under its property insurance policy issued by Factory Mutual Insurance Company (the “FM Policy”) for losses sustained as a result of the closure of the Company’s theatres due to the COVID-19 pandemic. Factory Mutual Insurance Company (“FM”) denied the Company’s claim. The Company is seeking damages resulting from FM’s breach of contract, FM’s bad faith conduct and a declaration of the parties’ rights under the FM Policy. The Company cannot predict the outcome of this litigation. Lakeenya Neal, et al v. Cinemark Holdings, Inc., et al. This class action lawsuit was filed against the Company on December 10, 2021, in the Central District of Los Angeles County Superior Court of the State of California alleging certain violations of the Fair and Accurate Credit Transactions Act. We firmly maintain that the allegations are without merit and will vigorously defend this lawsuit. The Company cannot predict the outcome of this litigation. Intertrust Technologies Corporation (“Intertrust”) v. Cinemark Holdings, Inc., Regal, AMC, et al. This case was filed against the Company on August 7, 2019 in the Eastern District of Texas – Marshall Division alleging patent infringement. The Company firmly maintains that the contentions of the Plaintiff are without merit. In December 2021, the parties reached a settlement and announced the settlement to the court. The settlement was recorded in (gain) loss on disposal of assets and other on the consolidated statement of income (loss) for the year ended December 31, 2021. The parties entered into definitive settlement agreements, and the court has dismissed the lawsuit with prejudice. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis should be read in conjunction with our condensed consolidated financial statements and related notes and schedules included elsewhere in this report. Amounts included in the following discussion, except for screens, average screens, average ticket price and concessions per patron, are rounded in millions. We are a leader in the motion picture exhibition industry, with theatres in the U.S., Brazil, Argentina, Chile, Colombia, Ecuador, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. As of March 31, 2022, we managed our business under two reportable operating segments – U.S. markets and international markets. See Note 16 to our condensed consolidated financial statements. Recent Developments The COVID-19 pandemic has had an unprecedented impact on the world and the movie exhibition industry with widespread social and economic effects. We temporarily closed our theatres in the U.S. and Latin America during March of 2020 at the onset of the COVID-19 outbreak. During that time, we implemented various cash preservation strategies, including, but not limited to, temporary personnel and salary reductions, halting non-essential operating and capital expenditures, negotiating modified timing and/or abatement of contractual payments with landlords and other major suppliers, and the suspension of dividends to Cinemark Holdings, Inc. Throughout 2020 and 2021 we reopened theatres as local restrictions and the status of the COVID-19 pandemic would allow. All of our domestic and international theatres were reopened by the end of the fourth quarter of 2021. The industry’s recovery from the COVID-19 pandemic is still underway and is contingent upon the volume of new film content available, as well as the box office performance of new film content released, consumer sentiment in returning to move theaters and government restrictions. The industry is also adjusting to the evolution of the exclusive theatrical window, competition from streaming platforms, supply chain constraints, inflationary impacts pressures and other economic factors. Revenues and Expenses We generate revenue primarily from filmed entertainment box office receipts and concession sales with additional revenue from screen advertising, screen rental and other revenue streams, such as transactional fees, vendor marketing promotions, studio trailer placements, meeting rentals and electronic video games located in some of our theatres. We also offer alternative entertainment, such as the Metropolitan Opera, concert events, in-theatre gaming, live and pre-recorded sports programs and other special events in our theatres through Fathom Entertainment (operated by AC JV, LLC). NCM provides our domestic theatres with various forms of in-theatre advertising. Our Flix Media subsidiaries provide screen advertising and alternative content for our international circuit and to other international exhibitors. Films leading the box office during the three months ended March 31, 2022 included the carryover of Spider-Man: No Way Home as well as new releases including The Batman, Uncharted, The Lost City and Scream . Films currently scheduled for release during the remainder of 2022 include Sonic the Hedgehog 2, Doctor Strange in the Multiverse of Madness, Top Gun: Maverick, Jurassic World: Dominion, Lightyear, Minions: The Rise of Gru, Thor: Love and Thunder, Black Adam, Black Panther: Wakanda Forever and the highly anticipated sequel, Avatar: The Way of Water, among other films. There are several key factors impacting the industry box office's recovery from the COVID-19 pandemic, including the availability and quality of new films released, the duration of the exclusive theatrical windows and evolving consumer behavior with competition from streaming and other forms of entertainment. Film rental costs are variable in nature and fluctuate with our admissions revenue. Film rental costs as a percentage of revenue are generally higher for periods in which more blockbuster films are released. The Company received virtual print fees from studios for certain of its international locations, which are included as a contra-expense in film rental and advertising costs on the condensed consolidated statements of income. However, these costs were fully recovered during 2021 and virtual print fees will not be received in future periods. Advertising costs, which are expensed as incurred, are primarily related to our loyalty and subscription programs, brand advertising, reengaging our audiences as our theatres reopened and new film content was released as well as campaigns for new and remodeled theatres. These expenses vary depending on the timing and length of such campaigns. Concession supplies expense is variable in nature and fluctuates with our concession revenue and product mix. Supply chain interruptions and inflationary pressures have impacted, and may continue to impact, product costs and product availability in the near term. We source products from a variety of partners around the world to minimize supply chain interruptions and price increases, wherever possible. Although salaries and wages include a fixed cost component (i.e., the minimum staffing costs to operate a theatre facility during non-peak periods), salaries and wages tend to move in relation to revenue as theatre staffing is adjusted to respond to changes in attendance. Staffing levels may vary based on the amenities offered at a location, such as full-service restaurants, bars or expanded food and beverage options. In certain international locations, staffing levels are also subject to local regulations. Labor market conditions and inflationary pressures have driven increases in wages across our labor base and increases may continue in the future. Facility lease expense is primarily a fixed cost at the theatre level as most of our facility leases require a fixed monthly minimum rent payment. Certain leases are subject to percentage rent only, while others are subject to percentage rent in addition to their fixed monthly rent if a target annual performance level is achieved. Facility lease expense as a percentage of revenue is also affected by the number of theatres under operating leases, the number of theatres under f |
Share Based Awards
Share Based Awards | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Awards | 10. Share Based Awards Restricted Stock Below is a summary of restricted stock activity for the three months ended March 31, 2022: Shares of Weighted Restricted Grant Date Stock Fair Value Outstanding at January 1, 2022 2.00 $ 21.73 Granted 0.74 $ 16.64 Vested ( 0.33 ) $ 30.59 Forfeited ( 0.03 ) $ 19.99 Outstanding at March 31, 2022 2.38 $ 18.96 Unvested restricted stock at March 31, 2022 2.38 Three Months Ended 2022 2021 Compensation expense recognized by the Company during the period $ 4.0 $ 4.0 Additional compensation expense recognized by Cinemark Holdings, Inc. during the period $ 0.2 $ 0.2 Fair value of restricted shares held by Company employees that vested during the period $ 5.6 $ 1.2 Income tax benefit (cost) related to restricted stock awards held by Company employees $ 0.8 $ ( 0.1 ) During the three months ended March 31, 2022, Cinemark Holdings, Inc. granted 0.74 shares of restricted stock to employees of the Company. The fair value of the restricted stock granted was determined based on the closing price of the Cinemark Holdings, Inc.’s common stock, which ranged from $ 15.10 to $ 16.65 per share. The Company assumed forfeiture rates for the restricted stock awards that ranged from 0 % to 10 %. The restricted stock granted during the three months ended March 31, 2022 vest over periods ranging from one to four years . The recipients of restricted stock are entitled to receive non-forfeitable dividends and to vote their respective shares, however, the sale and transfer of the restricted shares is prohibited during the restriction period. As of March 31, 2022 , the estimated remaining unrecognized compensation expense related to unvested restricted stock awards was $ 30.0 , of which $ 29.8 will be recognized by the Company and $ 0.2 will be recognized by Cinemark Holdings, Inc. The weighted average period over which this remaining compensation expense will be recognized is approximately two years . Restricted Stock Units Below is a summary of restricted stock unit activity for the periods presented: Three Months Ended March 31, 2022 2021 Number of restricted stock unit awards that vested during the period 0.10 0.01 Fair value of restricted stock unit awards that vested during the period $ 1.7 $ 0.3 Accumulated dividends paid upon vesting of restricted stock unit awards $ 0.3 $ 0.1 Compensation expense recognized during the period $ 0.9 $ 0.5 Income tax benefit (cost) related to stock unit awards $ 0.3 $ ( 0.1 ) During the three months ended March 31, 2022, the Company granted performance awards in the form of restricted stock units. The maximum number of shares issuable under the performance awards is 0.80 shares of Cinemark Holdings, Inc.'s common stock. The performance metrics for these awards are based upon the achievement of pre-established criteria that consists of revenue and consolidated cash flows as defined in the award agreement. The performance measurement period for these performance awards is one year with an additional service requirement to the third anniversary of the date of grant. Each performance target underlying the performance award has a threshold, target and maximum level, with the maximum level equal to 175 % of the target award. If the performance metrics meet the threshold level, approximately 29 % of the maximum restricted stock units vest. If the performance metrics for the one-year period are at target, approximately 57 % of the maximum restricted stock units vest. If the performance metrics are at the maximum, 100 % of the maximum restricted stock units vest. Grantees are eligible to receive a ratable portion of the common stock issuable if the achievement of the performance goals is within the targets previously noted. All restricted stock units granted during 2022 will be paid in the form of common stock if the participant continues to provide services through the third anniversary of the grant date. Restricted stock unit award participants are eligible to receive dividend equivalent payments from the grant date to the extent declared by the Company if, and at the time that, the restricted stock unit awards vest . Company estimated that the most likely outcome is the achievement of the target level. The fair value of the restricted stock unit awards was determined based on the closing price of the Company’s common stock on the date of grant, which was $ 16.65 per share. The Company assumed a forfeiture rate of 5 % for the restricted stock unit awards. If during the service period, additional information becomes available to lead the Company to believe a different achievement level will be reached for the one-year performance period, the Company will reassess the number of units that are expected to vest for the grant and adjust its compensation expense accordingly over the remaining service period. As of March 31, 2022 , the estimated remaining unrecognized compensation expense related to outstanding restricted stock unit awards was $ 10.3 . The weighted average period over which this remaining compensation expense will be recognized is approximately two years . As of March 31, 2022 , the Company had restricted stock units outstanding that represented a total of 1.1 hypothetical shares of common stock, net of forfeitures, reflecting actual certified performance levels for restricted stock units granted during 2019 and 2020 and the maximum performance level for the 2022 grant discussed above. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 11. Goodwill and Other Intangible Assets A summary of the Company’s goodwill is as follows: U.S. International Total Balance at January 1, 2022 (1) $ 1,182.9 $ 65.9 $ 1,248.8 Foreign currency translation adjustments — 8.1 8.1 Balance at March 31, 2022 (1) $ 1,182.9 $ 74.0 $ 1,256.9 (1) Balances are presented net of accumulated impairment losses of $ 214.0 for the U.S. operating segment and $ 43.8 for the international operating segment. See discussion of the qualitative impairment analysis performed by the Company as of March 31, 2022 at Note 12. A summary of the Company’s intangible assets is as follows: Balance at Amortization Foreign Currency Translation Adjustments Balance at March 31, 2022 Intangible assets with finite lives: Gross carrying amount $ 81.8 $ — $ 0.3 $ 82.1 Accumulated amortization ( 71.1 ) ( 0.6 ) — ( 71.7 ) Total net intangible assets with finite lives $ 10.7 $ ( 0.6 ) $ 0.3 $ 10.4 Intangible assets with indefinite lives: Tradename and other 300.1 — 0.3 300.4 Total intangible assets, net $ 310.8 $ ( 0.6 ) $ 0.6 $ 310.8 The estimated aggregate future amortization expense for intangible assets is as follows: Estimated Amortization For the nine months ended December 31, 2022 $ 2.0 For the twelve months ended December 31, 2023 2.5 For the twelve months ended December 31, 2024 2.5 For the twelve months ended December 31, 2025 1.9 For the twelve months ended December 31, 2026 1.5 Thereafter — Total $ 10.4 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 3 Months Ended |
Mar. 31, 2022 | |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |
Impairment of Long-Lived Assets | 12. Impairment of Long-Lived Assets The Company performed a qualitative impairment analysis on its long-lived assets as of March 31, 2022. The Company’s qualitative analysis considered economic and market conditions, industry trading multiples and the impact of recent industry developments and events on the estimated fair values as determined during its most recent quantitative assessments as of December 31, 2021. The Company’s consideration of economic and market conditions included the status of the COVID-19 pandemic and its impact on the Company’s anticipated recovery as well as future film release schedules. As a result of the qualitative assessment, the Company noted no impairment indicators as of March 31, 2022. Further description of the Company's qualitative impairment analysis, by asset class, is as follows: • Goodwill – The Company’s qualitative assessment of goodwill for each reporting unit considers economic and market conditions, industry trading multiples and the impact of recent developments and events on the Company's estimated fair values as compared with its most recent quantitative assessment. • Tradename Intangible Assets – The Company’s qualitative assessment considers recent developments that may impact the Company's revenue forecasts and other estimates as compared with its most recent quantitative assessment. • Other Long-lived Assets – The Company’s qualitative assessment considers relevant market transactions, industry trading multiples and recent developments that would impact the Company's estimates of future cash flows, which are the primarily measure of estimated fair value, as compared with its most recent quantitative impairment assessment. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. Fair Value Measurements The Company determines fair value measurements in accordance with ASC Topic 820, which establishes a fair value hierarchy under which an asset or liability is categorized based on the lowest level of input significant to its fair value measurement. The levels of input defined by ASC Topic 820 are as follows: Level 1 – quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date; Level 2 – other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 – unobservable and should be used to measure fair value to the extent that observable inputs are not available. Below is a summary of assets and liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of March 31, 2022 and December 31, 2021: Carrying Fair Value Hierarchy Description As of, Value Level 1 Level 2 Level 3 Interest rate swap assets (1) March 31, 2022 $ 3.9 $ — $ 3.9 $ — Interest rate swap liabilities (1) December 31, 2021 $ 14.6 $ — $ 14.6 $ — (1) See further discussion of interest rate swaps at Note 6. The Company uses the market approach for fair value measurements on a nonrecurring basis in the impairment evaluations of its goodwill, intangible assets and long-lived assets (see Note 11 and Note 12). See additional explanation of fair value measurement techniques used for long-lived assets, goodwill and intangible assets in “Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed March 9, 2022. There were no changes in valuation techniques. There were no transfers into or out of Level 1, Level 2 or Level 3 during the three months ended March 31, 2022 . |
Foreign Currency Translation
Foreign Currency Translation | 3 Months Ended |
Mar. 31, 2022 | |
Foreign Currency [Abstract] | |
Foreign Currency Translation | 14. Foreign Currency Translation The accumulated other comprehensive loss account in stockholders’ equity of $ 366.9 and $ 397.0 as of March 31, 2022 and December 31, 2021, respectively, primarily includes cumulative foreign currency net losses of $ 380.1 and $ 394.5 , respectively, from translating the financial statements of the Company’s international subsidiaries and the cumulative changes in fair value of the Company’s interest rate swap agreements that are designated as hedges. As of March 31, 2022, all foreign countries where the Company has operations are non-highly inflationary, other than Argentina. In non-highly inflationary countries, the local currency is the same as the functional currency and any fluctuation in the currency results in a cumulative foreign currency translation adjustment recorded to accumulated other comprehensive loss. The Company deemed Argentina to be highly inflationary beginning July 1, 2018. A highly inflationary economy is defined as an economy with a cumulative inflation rate of 100 percent or more over a three-year period. If a country’s economy is classified as highly inflationary, the financial statements of the foreign entity operating in that country must be remeasured to the functional currency of the reporting entity. The financial information of the Company’s Argentina subsidiaries was remeasured in U.S. dollars in accordance with ASC Topic 830, Foreign Currency Matters , effective July 1, 2018. Below is a summary of the impact of translating the March 31, 2022 and March 31, 2021 financial statements of the Company’s international subsidiaries: Other Comprehensive Income (Loss) for Exchange Rate as of Three Months Ended Country March 31, 2022 December 31, 2021 March 31, 2022 March 31, 2021 Brazil 4.8 5.6 $ 8.0 $ ( 6.9 ) Chile 788.6 852.0 4.8 ( 1.0 ) Peru 3.8 4.0 1.6 ( 1.2 ) All other — ( 0.4 ) $ 14.4 $ ( 9.5 ) As noted above, beginning July 1, 2018, Argentina was deemed highly inflationary. A foreign currency exchange gain of $ 0.5 and $ 0.2 was recorded for the three months ended March 31, 2022 and 2021, respectively, as a result of translating Argentina's financial results to U.S. dollars. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 15. Supplemental Cash Flow Information The following is provided as supplemental information to the condensed consolidated statements of cash flows: Three Months Ended March 31, 2022 2021 Cash paid for interest $ 42.6 $ 22.3 Cash paid (refunds received) for income taxes, net $ 0.7 $ ( 1.9 ) Cash deposited in restricted accounts (1) $ — $ 7.3 Noncash operating activities: Interest expense - NCM (see Note 8) $ ( 5.8 ) $ ( 5.8 ) Noncash investing activities: Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment (2) $ ( 1.2 ) $ ( 7.0 ) (1) Represents cash deposited in a collateral account during the period to support the issuance of letters of credit to lenders. See further discussion at Note 6. (2) Additions to theatre properties and equipment included in accounts payable as of March 31, 2022 and December 31, 2021 were $ 7.0 and $ 8.2 , respectively. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments | 16. Segments The Company manages its international market and its U.S. market as separate reportable operating segments, with the international segment consisting of operations in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curacao and Paraguay. Each segment’s revenue is derived from admissions and concession sales and other ancillary revenues. The Company uses Adjusted EBITDA, as shown in the reconciliation table below, as the primary measure of segment profit and loss to evaluate performance and allocate its resources. The Company does not report total assets by segment because that information is not used to evaluate the performance of or allocate resources between segments. Below is a breakdown of selected financial information by reportable operating segment: Three Months Ended March 31, 2022 2021 Revenues U.S. $ 373.7 $ 97.3 International 88.5 17.3 Eliminations ( 1.7 ) ( 0.2 ) Total revenues $ 460.5 $ 114.4 Adjusted EBITDA U.S. $ 15.0 $ ( 76.5 ) International 10.8 ( 15.0 ) Total Adjusted EBITDA $ 25.8 $ ( 91.5 ) Capital expenditures U.S. $ 14.0 $ 13.7 International 4.7 4.0 Total capital expenditures $ 18.7 $ 17.7 The following table sets forth a reconciliation of net loss to Adjusted EBITDA: Three Months Ended March 31, 2022 2021 Net loss $ ( 61.0 ) $ ( 203.5 ) Add (deduct): Income taxes ( 6.5 ) ( 13.2 ) Interest expense (1) 32.1 30.5 Other expense, net (2) 3.2 15.0 Cash distributions from other equity investees (3) 0.6 0.1 Depreciation and amortization 61.7 68.2 Restructuring costs — ( 0.2 ) (Gain) loss on disposal of assets and other ( 6.9 ) 4.5 Loss on extinguishment of debt — 2.6 Non-cash rent expense ( 2.3 ) 0.1 Share based awards compensation expense 4.9 4.4 Adjusted EBITDA $ 25.8 $ ( 91.5 ) (1) Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements. (2) Includes interest income, foreign currency exchange (gain) loss, equity in loss of affiliates and interest expense - NCM and excludes distributions from NCM. (3) Reflects cash distributions received from equity investees that were recorded as a reduction of the respective investment balances (see Note 9). These distributions are reported entirely within the U.S. operating segment. Financial Information About Geographic Areas Below is a breakdown of selected financial information by geographic area: Three Months Ended March 31, Revenues 2022 2021 U.S. $ 373.7 $ 97.3 Brazil 33.1 $ 4.4 Other international countries 55.4 $ 12.9 Eliminations ( 1.7 ) $ ( 0.2 ) Total $ 460.5 $ 114.4 As of As of Theatre Properties and Equipment-net March 31, 2022 December 31, 2021 U.S. $ 1,166.8 $ 1,208.7 Brazil 62.9 56.8 Other international countries 119.3 117.4 Total $ 1,349.0 $ 1,382.9 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related Party Transactions The Company manages a theatre for Laredo Theatre, Ltd. (“Laredo”). The Company is the sole general partner and owns 75 % of the limited partnership interests of Laredo. Lone Star Theatres, Inc. owns the remaining 25 % of the limited partnership interests in Laredo and is 100 % owned by Mr. David Roberts, Lee Roy Mitchell’s son-in-law. Lee Roy Mitchell is Cinemark Holdings, Inc.’s Chairman of the Board of Directors and directly and indirectly owns approximately 9 % of Cinemark Holdings, Inc.’s common stock. Under the agreement, management fees are paid by Laredo to the Company at a rate of 5 % of annual theatre revenues. The Company recorded $ 0.1 and $ 0.0 of management fee revenues during the three months ended March 31, 2022 and 2021, respectively. All such amounts are included in the Company’s condensed consolidated financial statements with the intercompany amounts eliminated in consolidation. Walter Hebert, Mr. Mitchell’s brother-in-law, previously served as the Executive Vice President – Purchasing of the Company and retired in July 2021. Mr. Hebert now serves as a consultant to the Company until July 2022. During the three months ended March 31, 2022, the Company has paid Mr. Hebert $ 0.1 related to consulting services. The Company has an Aircraft Time Sharing Agreement with Copper Beech Capital, LLC (“Copper Beech”) to use, on occasion, a private aircraft owned by Copper Beech. Copper Beech is owned by Mr. Mitchell and his wife, Tandy Mitchell. The private aircraft is used by Mr. Mitchell and other executives who accompany Mr. Mitchell to business meetings for the Company. The Company reimburses Copper Beech for the actual costs of fuel usage and the expenses of the pilots, landing fees, storage fees and similar expenses incurred during the trip. For the three months ended March 31, 2022 and 2021, the Company did not make any payments to Copper Beech for the use of the aircraft. The Company leases 13 theatres from Syufy Enterprises, LP (“Syufy”) or affiliates of Syufy. Raymond Syufy is one of the directors of Cinemark Holdings, Inc. and is an officer of the general partner of Syufy. For the three months ended March 31, 2022 and 2021, the Company paid total rent of $ 5.6 and $ 6.0 , respectively, to Syufy. During 2019, the Company began providing digital equipment support to drive-in theatres owned by Syufy. The Company did not record any management fees related to these services during the three months ended March 31, 2022 and 2021. The Company has a 50 % voting interest in FE Concepts, a joint venture with AWSR, an entity owned by Lee Roy Mitchell and Tandy Mitchell. FE Concepts operates a family entertainment center that offers bowling, gaming, movies and other amenities. See Note 9 for further discussion. The Company has a theatre services agreement with FE Concepts under which the Company receives service fees for providing film booking and equipment monitoring services for the facility . The Company has paid certain fees on behalf of its parent, Cinemark Holdings, Inc., and Cinemark Holdings, Inc. has paid income taxes and other expenses on behalf of the Company. The net receivable from Cinemark Holdings, Inc. as of March 31, 2022 and December 31, 2021 was $ 49.2 and $ 46.7 , respectively. The Company received contributions from Cinemark Holdings, Inc. of $ 120.0 during the three months ended March 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies From time to time, the Company is involved in various legal proceedings arising from the ordinary course of its business operations, such as personal injury claims, employment matters, patent claims, landlord-tenant disputes, contractual disputes with landlords over certain termination rights or the right to discontinue rent payments due to the COVID-19 pandemic and other contractual disputes, some of which are covered by insurance. The Company believes its potential liability with respect to proceedings currently pending is not material, individually or in the aggregate, to the Company’s financial position, results of operations and cash flows. Cinemark Holdings, Inc., et al vs Factory Mutual Insurance Company . The Company filed suit on November 18, 2020, in the District Court, 471st Judicial District, Collin County, Texas. On December 22, 2020, the case was moved to the US District Court for the Eastern District of Texas, Sherman Division. The Company submitted a claim under its property insurance policy issued by Factory Mutual Insurance Company (the “FM Policy”) for losses sustained as a result of the closure of the Company’s theatres due to the COVID-19 pandemic. Factory Mutual Insurance Company (“FM”) denied the Company’s claim. The Company is seeking damages resulting from FM’s breach of contract, FM’s bad faith conduct and a declaration of the parties’ rights under the FM Policy. The Company cannot predict the outcome of this litigation. Lakeenya Neal, et al v. Cinemark Holdings, Inc., et al. This class action lawsuit was filed against the Company on December 10, 2021, in the Central District of Los Angeles County Superior Court of the State of California alleging certain violations of the Fair and Accurate Credit Transactions Act. We firmly maintain that the allegations are without merit and will vigorously defend this lawsuit. The Company cannot predict the outcome of this litigation. Intertrust Technologies Corporation (“Intertrust”) v. Cinemark Holdings, Inc., Regal, AMC, et al. This case was filed against the Company on August 7, 2019 in the Eastern District of Texas – Marshall Division alleging patent infringement. The Company firmly maintains that the contentions of the Plaintiff are without merit. In December 2021, the parties reached a settlement and announced the settlement to the court. The settlement was recorded in (gain) loss on disposal of assets and other on the consolidated statement of income (loss) for the year ended December 31, 2021. The parties entered into definitive settlement agreements, and the court has dismissed the lawsuit with prejudice. |
Lease Accounting (Tables)
Lease Accounting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Aggregate Lease Costs by Lease Classification | The following table represents the Company’s aggregate lease costs, by lease classification, for the periods presented. Three Months Ended March 31, Lease Cost Classification 2022 2021 Operating lease costs Equipment (1) Utilities and other $ 0.6 $ 0.4 Real Estate (2)(3) Facility lease expense 75.0 63.8 Total operating lease costs $ 75.6 $ 64.2 Finance lease costs Amortization of leased assets Depreciation and amortization $ 3.1 $ 3.2 Interest on lease liabilities Interest expense 1.4 1.6 Total finance lease costs $ 4.5 $ 4.8 |
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 lease right-of-use assets for the periods presented. Three Months Ended March 31, Other Information 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Cash outflows for operating leases $ 69.3 $ 66.2 Cash outflows for finance leases - operating activities $ 1.4 $ 1.6 Cash outflows for finance leases - financing activities $ 3.6 $ 3.7 Non-cash amount of right-of-use assets obtained in exchange for: Operating lease liability additions, net of write-offs $ 11.8 $ 24.9 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenues Disaggregated Based on Type of Good or Service by Reportable Operating Segment and on Timing of Revenue Recognition | The following tables represent revenues, disaggregated based on major type of good or service and by reportable operating segment, for the periods presented. Three Months Ended March 31, 2022 U.S. International Operating Operating Segment (1) Segment Consolidated Admissions revenues $ 191.8 $ 44.0 $ 235.8 Concession revenues 141.1 31.9 173.0 Screen advertising, screen rental and promotional revenues (2) 18.7 8.1 26.8 Other revenues 20.4 4.5 24.9 Total revenues $ 372.0 $ 88.5 $ 460.5 Three Months Ended March 31, 2021 U.S. International Operating Operating Segment (1) Segment Consolidated Admissions revenues $ 48.5 $ 7.6 $ 56.1 Concession revenues 33.0 6.5 39.5 Screen advertising, screen rental and promotional revenues (2) 11.2 2.2 13.4 Other revenues 4.4 1.0 5.4 Total revenues $ 97.1 $ 17.3 $ 114.4 (1) U.S. segment revenues exclude intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. (2) Amount includes amortization of NCM screen advertising advances. See Screen Advertising Advances and Deferred Revenues below. The following tables represent revenues, disaggregated based on timing of recognition and by reportable operating segment, for the periods presented. Three Months Ended March 31, 2022 U.S. International Operating Operating Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 348.3 $ 78.6 $ 426.9 Goods and services transferred over time (2) 23.7 9.9 33.6 Total $ 372.0 $ 88.5 $ 460.5 Three Months Ended March 31, 2021 U.S. International Operating Operating Segment (1) Segment Consolidated Goods and services transferred at a point in time $ 80.5 $ 14.3 $ 94.8 Goods and services transferred over time (2) 16.6 3.0 19.6 Total $ 97.1 $ 17.3 $ 114.4 (1) U.S. segment revenues exclude intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. (2) Amount includes amortization of NCM screen advertising advances. See Screen Advertising Advances and Deferred Revenues below. |
Changes in NCM Screen Advertising Advances and Deferred Revenues | The following table presents changes in the Company’s NCM screen advertising advances and other deferred revenues for the three months ended March 31, 2022. NCM screen advertising advances (1) Other (2) Balance at January 1, 2022 $ 346.0 $ 160.3 Amounts recognized as accounts receivable — 0.5 Cash received from customers in advance — 49.6 Interest accrued related to significant financing component 5.8 — Revenue recognized during period ( 8.0 ) ( 40.2 ) Foreign currency translation adjustments — 1.5 Balance at March 31, 2022 $ 343.8 $ 171.7 (1) See Note 8 for the maturity of NCM screen advertising advances as of March 31, 2022 . (2) Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues collected but not yet earned for screen advertising, screen rental and other promotional activities. Amounts are classified as accounts payable and accrued expenses or other long-term liabilities on the condensed consolidated balance sheet . |
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 as of March 31, 2022 and when the Company expects to recognize this revenue. Twelve Months Ended March 31, Remaining Performance Obligations 2023 2024 Thereafter Total Other deferred revenues $ 152.1 $ 19.6 $ — $ 171.7 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Components of Long-Term Debt | Long-term debt consisted of the following for the periods presented: March 31, December 31, 2022 2021 Cinemark USA, Inc. term loan due 2025 $ 631.5 $ 633.1 Cinemark USA, Inc. 8.750% senior secured notes due 2025 250.0 250.0 Cinemark USA, Inc. 5.875% senior notes due 2026 405.0 405.0 Cinemark USA, Inc. 5.250% senior notes due 2028 765.0 765.0 Other 32.4 30.2 Total carrying value of long-term debt $ 2,083.9 $ 2,083.3 Less: Current portion 27.2 24.3 Less: Debt issuance costs, net of accumulated amortization 28.5 30.3 Long-term debt, less current portion, net of unamortized debt issuance costs $ 2,028.2 $ 2,028.7 |
Summary of Company's Interest Rate Swap Agreements Designated as Cash Flow Hedges | Below is a summary of the Company’s interest rate swap agreements, which are designated as cash flow hedges, as of March 31, 2022: Estimated Fair Value at Notional March 31, Amount Effective Date Pay Rate Receive Rate Expiration Date 2022 (1) $ 137.5 December 31, 2018 2.12 % 1-Month LIBOR December 31, 2024 $ 1.3 $ 175.0 December 31, 2018 2.12 % 1-Month LIBOR December 31, 2024 1.6 $ 137.5 December 31, 2018 2.19 % 1-Month LIBOR December 31, 2024 1.0 Total $ 3.9 (1) Approximately $ ( 1.7 ) of the total is included in accounts payable and accrued expenses and $ 5.6 is included in deferred charges and other assets, net on the condensed consolidated balance sheet as of March 31, 2022 . |
Carrying values and estimated fair values of long-term debt | The table below presents the carrying value and fair value of the Company's long-term debt as of the periods presented: As of March 31, 2022 December 31, 2021 Carrying value (1) $ 2,083.9 $ 2,083.3 Fair value $ 1,993.8 $ 2,058.0 (1) The carrying value excludes unamortized debt issuance costs. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Changes in Stockholder's Equity | Below is a summary of changes in stockholders’ equity attributable to Cinemark USA, Inc., noncontrolling interests and total equity for the three months ended March 31, 2022 and 2021: Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings (Deficit) Accumulated Other Comprehensive Loss Total Cinemark USA, Inc. Stockholder's Equity Noncontrolling Interests Total Equity Balance at January 1, 2022 $ 49.5 $ ( 24.2 ) $ 1,459.0 $ ( 544.0 ) $ ( 397.0 ) $ 543.3 $ 11.6 $ 554.9 Share based awards compensation expense — — 4.9 — — 4.9 — 4.9 Net loss — — — ( 62.5 ) — ( 62.5 ) 1.5 ( 61.0 ) Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes and settlements — — — — 14.6 14.6 — 14.6 Amortization of accumulated losses for amended swap agreements — — — — 1.1 1.1 — 1.1 Foreign currency translation adjustments — — — — 14.4 14.4 — 14.4 Balance at March 31, 2022 $ 49.5 $ ( 24.2 ) $ 1,463.9 $ ( 606.5 ) $ ( 366.9 ) $ 515.8 $ 13.1 $ 528.9 Common Stock Treasury Stock Additional Paid-In-Capital Retained Earnings (Deficit) Accumulated Other Comprehensive Loss Total Cinemark USA, Inc. Stockholder's Equity Noncontrolling Interests Total Equity Balance at January 1, 2021 $ 49.5 $ ( 24.2 ) $ 1,310.6 $ ( 163.3 ) $ ( 398.6 ) $ 774.0 $ 11.0 $ 785.0 Share based awards compensation expense — — 4.4 — — 4.4 — 4.4 Contributions from parent — — 120.0 — — 120.0 — 120.0 Net loss — — — ( 202.9 ) — ( 202.9 ) ( 0.6 ) ( 203.5 ) Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes and settlements — — — — 5.7 5.7 — 5.7 Amortization of accumulated losses for amended swap agreements — — — — 1.1 1.1 — 1.1 Foreign currency translation adjustments — — — — ( 9.5 ) ( 9.5 ) — ( 9.5 ) Balance at March 31, 2021 $ 49.5 $ ( 24.2 ) $ 1,435.0 $ ( 366.2 ) $ ( 401.3 ) $ 692.8 $ 10.4 $ 703.2 |
Investment in National CineMe_2
Investment in National CineMedia LLC (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 as of March 31, 2022 and when the Company expects to recognize this revenue. Twelve Months Ended March 31, Remaining Performance Obligations 2023 2024 Thereafter Total Other deferred revenues $ 152.1 $ 19.6 $ — $ 171.7 |
NCM | |
Summary of Activity With Equity Investee Included in the Company's Condensed Consolidated Financial Statements | Below is a summary of activity with NCM included in the Company’s condensed consolidated financial statements: Investment NCM Screen Advertising Advances Equity in Other Interest Cash (2) Balance as of January 1, 2022 $ 135.4 $ ( 346.0 ) Screen rental revenues earned under ESA (1) — — $ — $ ( 4.2 ) $ — $ 4.2 Interest accrued related to significant financing component — ( 5.8 ) — — 5.8 — Equity in loss ( 3.5 ) — 3.5 — — — Amortization of screen advertising advances — 8.0 — ( 8.0 ) — — Balance as of and for the three months ended March 31, 2022 $ 131.9 $ ( 343.8 ) $ 3.5 $ ( 12.2 ) $ 5.8 $ 4.2 |
Summary Financial Information | Below is summary financial information for NCM for the periods indicated: Three Months Ended Three Months ended March 31, 2022 April 1, 2021 Gross revenues $ 35.9 $ 5.4 Operating loss $ ( 22.5 ) $ ( 28.3 ) Net loss $ ( 39.5 ) $ ( 43.5 ) As of As of March 31, 2022 December 30, 2021 Current assets $ 125.9 $ 115.4 Noncurrent assets $ 656.8 $ 658.0 Current liabilities $ 56.7 $ 67.2 Noncurrent liabilities $ 1,163.1 $ 1,114.7 Members equity $ ( 437.1 ) $ ( 408.5 ) |
NCM Screen Advertising Advances | |
Aggregate Amount of Transaction Price Allocated to Performance Obligation That are Unsatisfied and Expected to be Recognized | Twelve Months Ended March 31, Remaining Maturity 2023 2024 2025 2026 2027 Thereafter Total NCM screen advertising advances (1) $ 9.3 $ 9.9 $ 10.6 $ 11.3 $ 12.1 $ 290.6 $ 343.8 Amounts are net of the estimated interest to be accrued for the periods presented. See discussion of significant financing component below. |
Other Investments (Tables)
Other Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Activity for Each of Company's Other Investments | Below is a summary of activity for each of the Company’s other investees and corresponding changes to the Company's investment balances during the three months ended March 31, 2022: AC JV, DCDC FE Concepts Other Total Balance at January 1, 2022 $ 3.7 $ 1.8 $ 19.3 $ 0.4 $ 25.2 Cash distributions received ( 0.6 ) — — — ( 0.6 ) Equity income 1.0 0.1 0.2 — 1.3 Other — — — ( 0.1 ) ( 0.1 ) Balance at March 31, 2022 $ 4.1 $ 1.9 $ 19.5 $ 0.3 $ 25.8 Below is a summary of transactions with each of the Company’s other investees for the three months ended March 31, 2022 and 2021: Three Months Ended Investee Transactions March 31, 2022 March 31, 2021 DCIP Equipment lease payments (1) $ — $ 1.0 DCIP Warranty reimbursements (2) $ — $ ( 0.3 ) AC JV, LLC Event fees paid (3) $ 1.8 $ 0.2 DCDC Content delivery fees paid (3) $ 0.2 $ 0.1 (1) As a result of the MELA amendment noted above, the Company recorded a lease termination liability during 2020. Lease termination payments of $ 1.0 made to DCIP during the three months ended March 31, 2021 reduced the liability outstanding, which was fully paid by October 2021. (2) Included in utilities and other costs on the condensed consolidated statements of loss. (3) Included in film rentals and advertising costs on the condensed consolidated statements of loss. |
Digital Cinema Implementation Partners | |
Summary Financial Information | Below is summary financial information for DCIP for the periods indicated: Three Months Ended March 31, 2022 March 31, 2021 Gross revenues $ 0.5 $ 5.6 Operating income (loss) $ ( 0.5 ) $ 4.0 Net income (loss) $ ( 0.6 ) $ 3.9 As of March 31, 2022 December 31, 2021 Current assets $ 22.1 $ 22.9 Current liabilities $ 11.4 $ 11.6 Members' equity $ 10.7 $ 11.3 |
Share Based Awards (Tables)
Share Based Awards (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Restricted Stock Activity | Below is a summary of restricted stock activity for the three months ended March 31, 2022: Shares of Weighted Restricted Grant Date Stock Fair Value Outstanding at January 1, 2022 2.00 $ 21.73 Granted 0.74 $ 16.64 Vested ( 0.33 ) $ 30.59 Forfeited ( 0.03 ) $ 19.99 Outstanding at March 31, 2022 2.38 $ 18.96 Unvested restricted stock at March 31, 2022 2.38 |
Restricted Stock | |
Summary of Restricted Stock Award Activity | Three Months Ended 2022 2021 Compensation expense recognized by the Company during the period $ 4.0 $ 4.0 Additional compensation expense recognized by Cinemark Holdings, Inc. during the period $ 0.2 $ 0.2 Fair value of restricted shares held by Company employees that vested during the period $ 5.6 $ 1.2 Income tax benefit (cost) related to restricted stock awards held by Company employees $ 0.8 $ ( 0.1 ) |
Restricted Stock Units (RSUs) | |
Summary of Restricted Stock Unit Award Activity | Below is a summary of restricted stock unit activity for the periods presented: Three Months Ended March 31, 2022 2021 Number of restricted stock unit awards that vested during the period 0.10 0.01 Fair value of restricted stock unit awards that vested during the period $ 1.7 $ 0.3 Accumulated dividends paid upon vesting of restricted stock unit awards $ 0.3 $ 0.1 Compensation expense recognized during the period $ 0.9 $ 0.5 Income tax benefit (cost) related to stock unit awards $ 0.3 $ ( 0.1 ) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | A summary of the Company’s goodwill is as follows: U.S. International Total Balance at January 1, 2022 (1) $ 1,182.9 $ 65.9 $ 1,248.8 Foreign currency translation adjustments — 8.1 8.1 Balance at March 31, 2022 (1) $ 1,182.9 $ 74.0 $ 1,256.9 (1) Balances are presented net of accumulated impairment losses of $ 214.0 for the U.S. operating segment and $ 43.8 for the international operating segment. See discussion of the qualitative impairment analysis performed by the Company as of March 31, 2022 at Note 12. |
Intangible Assets | A summary of the Company’s intangible assets is as follows: Balance at Amortization Foreign Currency Translation Adjustments Balance at March 31, 2022 Intangible assets with finite lives: Gross carrying amount $ 81.8 $ — $ 0.3 $ 82.1 Accumulated amortization ( 71.1 ) ( 0.6 ) — ( 71.7 ) Total net intangible assets with finite lives $ 10.7 $ ( 0.6 ) $ 0.3 $ 10.4 Intangible assets with indefinite lives: Tradename and other 300.1 — 0.3 300.4 Total intangible assets, net $ 310.8 $ ( 0.6 ) $ 0.6 $ 310.8 |
Estimated Aggregate Future Amortization Expense for Intangible Assets | The estimated aggregate future amortization expense for intangible assets is as follows: Estimated Amortization For the nine months ended December 31, 2022 $ 2.0 For the twelve months ended December 31, 2023 2.5 For the twelve months ended December 31, 2024 2.5 For the twelve months ended December 31, 2025 1.9 For the twelve months ended December 31, 2026 1.5 Thereafter — Total $ 10.4 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |
Summary of Evaluations Performed by Asset Classification | The Company performed a qualitative impairment analysis on its long-lived assets as of March 31, 2022. The Company’s qualitative analysis considered economic and market conditions, industry trading multiples and the impact of recent industry developments and events on the estimated fair values as determined during its most recent quantitative assessments as of December 31, 2021. The Company’s consideration of economic and market conditions included the status of the COVID-19 pandemic and its impact on the Company’s anticipated recovery as well as future film release schedules. As a result of the qualitative assessment, the Company noted no impairment indicators as of March 31, 2022. Further description of the Company's qualitative impairment analysis, by asset class, is as follows: • Goodwill – The Company’s qualitative assessment of goodwill for each reporting unit considers economic and market conditions, industry trading multiples and the impact of recent developments and events on the Company's estimated fair values as compared with its most recent quantitative assessment. • Tradename Intangible Assets – The Company’s qualitative assessment considers recent developments that may impact the Company's revenue forecasts and other estimates as compared with its most recent quantitative assessment. • Other Long-lived Assets – The Company’s qualitative assessment considers relevant market transactions, industry trading multiples and recent developments that would impact the Company's estimates of future cash flows, which are the primarily measure of estimated fair value, as compared with its most recent quantitative impairment assessment. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Below is a summary of assets and liabilities measured at fair value on a recurring basis by the Company under FASB ASC Topic 820 as of March 31, 2022 and December 31, 2021: Carrying Fair Value Hierarchy Description As of, Value Level 1 Level 2 Level 3 Interest rate swap assets (1) March 31, 2022 $ 3.9 $ — $ 3.9 $ — Interest rate swap liabilities (1) December 31, 2021 $ 14.6 $ — $ 14.6 $ — (1) See further discussion of interest rate swaps at Note 6. |
Foreign Currency Translation (T
Foreign Currency Translation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Impact of Translating Financial Statements of Company's International Subsidiaries | Below is a summary of the impact of translating the March 31, 2022 and March 31, 2021 financial statements of the Company’s international subsidiaries: Other Comprehensive Income (Loss) for Exchange Rate as of Three Months Ended Country March 31, 2022 December 31, 2021 March 31, 2022 March 31, 2021 Brazil 4.8 5.6 $ 8.0 $ ( 6.9 ) Chile 788.6 852.0 4.8 ( 1.0 ) Peru 3.8 4.0 1.6 ( 1.2 ) All other — ( 0.4 ) $ 14.4 $ ( 9.5 ) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Information to Condensed Consolidated Statements of Cash Flows | The following is provided as supplemental information to the condensed consolidated statements of cash flows: Three Months Ended March 31, 2022 2021 Cash paid for interest $ 42.6 $ 22.3 Cash paid (refunds received) for income taxes, net $ 0.7 $ ( 1.9 ) Cash deposited in restricted accounts (1) $ — $ 7.3 Noncash operating activities: Interest expense - NCM (see Note 8) $ ( 5.8 ) $ ( 5.8 ) Noncash investing activities: Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment (2) $ ( 1.2 ) $ ( 7.0 ) (1) Represents cash deposited in a collateral account during the period to support the issuance of letters of credit to lenders. See further discussion at Note 6. (2) Additions to theatre properties and equipment included in accounts payable as of March 31, 2022 and December 31, 2021 were $ 7.0 and $ 8.2 , respectively. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Selected Financial Information by Reportable Operating Segment | Below is a breakdown of selected financial information by reportable operating segment: Three Months Ended March 31, 2022 2021 Revenues U.S. $ 373.7 $ 97.3 International 88.5 17.3 Eliminations ( 1.7 ) ( 0.2 ) Total revenues $ 460.5 $ 114.4 Adjusted EBITDA U.S. $ 15.0 $ ( 76.5 ) International 10.8 ( 15.0 ) Total Adjusted EBITDA $ 25.8 $ ( 91.5 ) Capital expenditures U.S. $ 14.0 $ 13.7 International 4.7 4.0 Total capital expenditures $ 18.7 $ 17.7 |
Reconciliation of Net Loss to Adjusted EBITDA | The following table sets forth a reconciliation of net loss to Adjusted EBITDA: Three Months Ended March 31, 2022 2021 Net loss $ ( 61.0 ) $ ( 203.5 ) Add (deduct): Income taxes ( 6.5 ) ( 13.2 ) Interest expense (1) 32.1 30.5 Other expense, net (2) 3.2 15.0 Cash distributions from other equity investees (3) 0.6 0.1 Depreciation and amortization 61.7 68.2 Restructuring costs — ( 0.2 ) (Gain) loss on disposal of assets and other ( 6.9 ) 4.5 Loss on extinguishment of debt — 2.6 Non-cash rent expense ( 2.3 ) 0.1 Share based awards compensation expense 4.9 4.4 Adjusted EBITDA $ 25.8 $ ( 91.5 ) (1) Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements. (2) Includes interest income, foreign currency exchange (gain) loss, equity in loss of affiliates and interest expense - NCM and excludes distributions from NCM. (3) Reflects cash distributions received from equity investees that were recorded as a reduction of the respective investment balances (see Note 9). These distributions are reported entirely within the U.S. operating segment. |
Selected Financial Information by Geographic Area | Below is a breakdown of selected financial information by geographic area: Three Months Ended March 31, Revenues 2022 2021 U.S. $ 373.7 $ 97.3 Brazil 33.1 $ 4.4 Other international countries 55.4 $ 12.9 Eliminations ( 1.7 ) $ ( 0.2 ) Total $ 460.5 $ 114.4 As of As of Theatre Properties and Equipment-net March 31, 2022 December 31, 2021 U.S. $ 1,166.8 $ 1,208.7 Brazil 62.9 56.8 Other international countries 119.3 117.4 Total $ 1,349.0 $ 1,382.9 |
The Company and Basis of Pres_2
The Company and Basis of Presentation - Additional Information (Detail) | Mar. 31, 2022 |
Minimum | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Equity method investment, ownership percentage | 20.00% |
Maximum | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Cost method investment, ownership Percentage | 20.00% |
Impact of COVID-19 Pandemic - A
Impact of COVID-19 Pandemic - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Unusual Or Infrequent Item [Line Items] | ||
Restructuring costs | $ 0 | $ (0.2) |
Impact of COVID-19 | ||
Unusual Or Infrequent Item [Line Items] | ||
Remaining accrued restructuring costs | 1 | |
Restructuring costs | $ 0.5 |
Lease Accounting - Additional I
Lease Accounting - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Lease [Line Items] | ||
Total deferred payment | $ 22.1 | $ 31.9 |
Theatres | ||
Lease [Line Items] | ||
Contractual minimum lease payments payable under operating lease, lease not yet commenced | $ 90.8 |
Schedule of Aggregate Lease Cos
Schedule of Aggregate Lease Costs by Lease Classification (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Operating lease costs | |||
Total operating lease costs | $ 75.6 | $ 64.2 | |
Finance lease costs | |||
Total finance lease costs | 4.5 | 4.8 | |
Depreciation and Amortization | |||
Finance lease costs | |||
Amortization of leased assets | 3.1 | 3.2 | |
Interest Expense | |||
Finance lease costs | |||
Interest on lease liabilities | 1.4 | 1.6 | |
Equipment | Utilities and Other | |||
Operating lease costs | |||
Total operating lease costs | [1] | 0.6 | 0.4 |
Real Estate | Facility Lease Expense | |||
Operating lease costs | |||
Total operating lease costs | [2],[3] | $ 75 | $ 63.8 |
[1] | Includes approximately $ 0.5 and $ 0.3 of short-term lease payments for the three months ended March 31, 2022 and 2021 , respectively. | ||
[2] | Approximately $ 0.3 and $ 0.4 of lease payments are included in general and administrative expenses primarily related to office leases for the three months ended March 31, 2022 and 2021 , respectively. | ||
[3] | Includes approximately $ 5.9 and $ ( 2.3 ) 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 months ended March 31, 2022 and 2021, respectively. The credit amount for the three months ended March 31, 2022 is due to the abatement of certain lease payments as discussed at Lease Deferrals and Abatements above. |
Schedule of Aggregate Lease C_2
Schedule of Aggregate Lease Costs by Lease Classification (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease Cost [Line Items] | ||
Lease payments | $ 69.3 | $ 66.2 |
Equipment | Utilities and Other | ||
Lease Cost [Line Items] | ||
Short term lease payments | 0.5 | 0.3 |
Real Estate | Facility Lease Expense | ||
Lease Cost [Line Items] | ||
Variable lease payments | 5.9 | (2.3) |
Lease payments | $ 0.3 | $ 0.4 |
Schedule of Minimum Cash Lease
Schedule of Minimum Cash Lease Payments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Contractual cash payments included in the measurement of lease liabilities | ||
Cash outflows for operating leases | $ 69.3 | $ 66.2 |
Cash outflows for finance leases - operating activities | 1.4 | 1.6 |
Cash outflows for finance leases - financing activities | 3.6 | 3.7 |
Non-cash amount of leased assets obtained in exchange for: | ||
Operating lease liability additions, net | $ 11.8 | $ 24.9 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Receivables related to contracts with customers | $ 22,600,000 | $ 23,500,000 |
Assets related to costs to obtain or fulfill contract with customers | $ 0 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenues Disaggregated Based on Type of Good or Service by Reportable Operating Segment and on Timing of Revenue Recognition (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 460.5 | $ 114.4 | |
U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 372 | 97.1 |
International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 88.5 | 17.3 | |
Admissions Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 235.8 | 56.1 | |
Admissions Revenues | U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 191.8 | 48.5 |
Admissions Revenues | International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 44 | 7.6 | |
Concession Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 173 | 39.5 | |
Concession Revenues | U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 141.1 | 33 |
Concession Revenues | International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 31.9 | 6.5 | |
Screen Advertising Screen Rental And Promotional Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [2] | 26.8 | 13.4 |
Screen Advertising Screen Rental And Promotional Revenues | U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1],[2] | 18.7 | 11.2 |
Screen Advertising Screen Rental And Promotional Revenues | International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [2] | 8.1 | 2.2 |
Other Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 24.9 | 5.4 | |
Other Revenues | U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 20.4 | 4.4 |
Other Revenues | International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 4.5 | $ 1 | |
[1] | U.S. segment revenues exclude intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. | ||
[2] | Amount includes amortization of NCM screen advertising advances. See Screen Advertising Advances and Deferred Revenues below. |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Revenues Disaggregated Based on Timing of Revenue Recognition (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 460.5 | $ 114.4 | |
U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [1] | 372 | 97.1 |
International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 88.5 | 17.3 | |
Goods and Services Transferred at a Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 426.9 | 94.8 | |
Goods and Services Transferred at a Point in Time | U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [2] | 348.3 | 80.5 |
Goods and Services Transferred at a Point in Time | International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 78.6 | 14.3 | |
Goods and Services Transferred Over Time | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [3] | 33.6 | 19.6 |
Goods and Services Transferred Over Time | U.S. Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [2],[3] | 23.7 | 16.6 |
Goods and Services Transferred Over Time | International Operating Segment | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | [3] | $ 9.9 | $ 3 |
[1] | U.S. segment revenues exclude intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. | ||
[2] | U.S. segment revenues exclude intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. | ||
[3] | Amount includes amortization of NCM screen advertising advances. See Screen Advertising Advances and Deferred Revenues below. |
Revenue Recognition - Changes i
Revenue Recognition - Changes in NCM Screen Advertising Advances and Deferred Revenues (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | ||
NCM Screen Advertising Advances | ||
Change in Contract with Customer Liability [Line Items] | ||
Balance at January 1, 2022 | $ 346 | [1] |
Amounts recognized as accounts receivable | 0 | [1] |
Cash received from customers in advance | 0 | [1] |
Interest accrued related to significant financing component | 5.8 | [1] |
Revenue recognized during period | (8) | [1] |
Foreign currency translation adjustments | 0 | [1] |
Balance at March 31, 2022 | 343.8 | [1] |
Other Deferred Revenues | ||
Change in Contract with Customer Liability [Line Items] | ||
Balance at January 1, 2022 | 160.3 | [2] |
Amounts recognized as accounts receivable | 0.5 | [2] |
Cash received from customers in advance | 49.6 | [2] |
Interest accrued related to significant financing component | 0 | [2] |
Revenue recognized during period | (40.2) | [2] |
Foreign currency translation adjustments | 1.5 | [2] |
Balance at March 31, 2022 | $ 171.7 | [2] |
[1] | See Note 8 for the maturity of NCM screen advertising advances as of March 31, 2022 . | |
[2] | Includes liabilities associated with outstanding gift cards and discount ticket vouchers, points or rebates outstanding under the Company’s loyalty and membership programs and revenues collected but not yet earned for screen advertising, screen rental and other promotional activities. Amounts are classified as accounts payable and accrued expenses or other long-term liabilities on the condensed consolidated balance sheet . |
Revenue Recognition - Aggregate
Revenue Recognition - Aggregate Amount of Transaction Price Allocated to Performance Obligation That are Unsatisfied and Expected to be Recognized (Detail) $ in Millions | Mar. 31, 2022USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 171.7 |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 152.1 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Other Deferred Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 19.6 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue Recognition - Aggrega_2
Revenue Recognition - Aggregate Amount of Transaction Price Allocated to Performance Obligation That are Unsatisfied and Expected to be Recognized (Detail 1) $ in Millions | Mar. 31, 2022USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 171.7 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) | 3 Months Ended | ||||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($)Agreement | Dec. 31, 2021USD ($) | ||
Debt Instrument [Line Items] | |||||
Amount outstanding under the term loan | $ 631,500,000 | $ 633,100,000 | |||
Interest expense | [1] | 32,100,000 | $ 30,500,000 | ||
Debt issue cost paid | 28,500,000 | 30,300,000 | |||
Carrying value | [2] | 2,083,900,000 | 2,083,300,000 | ||
Long term debt, fair value | 1,993,800,000 | $ 2,058,000,000 | |||
Subsidiaries | COLOMBIA | |||||
Debt Instrument [Line Items] | |||||
Number of interest rate swap agreements | Agreement | 3 | ||||
Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Interest expense | 1,100,000 | $ 1,100,000 | |||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Debt Instrument [Line Items] | |||||
Loss accumulated on swaps prior to the amendments | $ 29,400,000 | ||||
Term Loan Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding under the term loan | 631,500,000 | ||||
Term Loan Credit Facility | Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of add-on to Senior Notes | 700,000,000 | ||||
Quarterly principal payments due | $ 1,600,000 | ||||
Last quarterly payment date | Dec. 31, 2024 | ||||
Final principal payment | $ 613,400,000 | ||||
Final principal payment due date | Mar. 29, 2025 | ||||
Term Loan Credit Facility | Amended Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Average interest rate on outstanding borrowings | 3.40% | ||||
Revolving Credit Line | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding under the revolving credit line | $ 0 | ||||
Available borrowing capacity | $ 100,000,000 | ||||
Line of credit, maturity date | Nov. 28, 2024 | ||||
Revolving Credit Line | Senior Secured Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of add-on to Senior Notes | $ 100,000,000 | ||||
[1] | Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements. | ||||
[2] | The carrying value excludes unamortized debt issuance costs. |
Long Term Debt - Components of
Long Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Cinemark USA, Inc. term loan due 2025 | $ 631.5 | $ 633.1 |
Other | 32.4 | 30.2 |
Total | 2,083.9 | 2,083.3 |
Less current portion | 27.2 | 24.3 |
Less: Debt debt issuance costs, net of accumulated amortization | 28.5 | 30.3 |
Long-term debt, less current portion | 2,028.2 | 2,028.7 |
8.750% senior secured notes due 2025 | ||
Debt Instrument [Line Items] | ||
Senior notes | 250 | 250 |
5.875% senior notes due 2026 | ||
Debt Instrument [Line Items] | ||
Senior notes | 405 | 405 |
5.250% senior notes due 2028 | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 765 | $ 765 |
Long Term Debt - Summary of Com
Long Term Debt - Summary of Company's Interest Rate Swap Agreements Designated as Cash Flow Hedges (Detail) - Designated as Hedging Instrument - Cash Flow Hedging | 3 Months Ended | |
Mar. 31, 2022USD ($) | ||
Debt Instrument [Line Items] | ||
Estimated Fair Value | $ 3,900 | [1] |
Interest Rate Swap Agreement 1 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 137,500 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.12% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2024 | |
Estimated Fair Value | $ 1,300 | [1] |
Interest Rate Swap Agreement 2 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 175,000 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.12% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2024 | |
Estimated Fair Value | $ 1,600 | [1] |
Interest Rate Swap Agreement 3 | ||
Debt Instrument [Line Items] | ||
Notional Amount | $ 137,500 | |
Effective Date | Dec. 31, 2018 | |
Pay Rate | 2.19% | |
Receive Rate | 1-Month LIBOR | |
Expiration Date | Dec. 31, 2024 | |
Estimated Fair Value | $ 1,000 | [1] |
[1] | Approximately $ ( 1.7 ) of the total is included in accounts payable and accrued expenses and $ 5.6 is included in deferred charges and other assets, net on the condensed consolidated balance sheet as of March 31, 2022 . |
Long Term Debt - Summary of C_2
Long Term Debt - Summary of Company's Interest Rate Swap Agreements Designated as Cash Flow Hedges (Parenthetical) (Detail) $ in Millions | Mar. 31, 2022USD ($) |
Accounts Payable and Accrued Liabilities | |
Debt Instrument [Line Items] | |
Estimated Fair Value | $ (1.7) |
Other Noncurrent Liabilities | |
Debt Instrument [Line Items] | |
Estimated Fair Value | $ 5.6 |
Long Term Debt - Carrying value
Long Term Debt - Carrying values and estimated fair values of long-term debt (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Carrying value | [1] | $ 2,083.9 | $ 2,083.3 |
Fair value | $ 1,993.8 | $ 2,058 | |
[1] | The carrying value excludes unamortized debt issuance costs. |
Equity - Summary of Changes in
Equity - Summary of Changes in Stockholders Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Shareholders Equity [Line Items] | ||
Total Equity, Beginning Balance | $ 554.9 | $ 785 |
Share based awards compensation expense | 4.9 | 4.4 |
Contributions from parent | 0 | 120 |
Net loss | (61) | (203.5) |
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes and settlements | 14.6 | 5.7 |
Amortization of accumulated losses for amended swap agreements | 1.1 | 1.1 |
Foreign currency translation adjustments | 14.4 | (9.5) |
Total Equity, Ending Balance | 528.9 | 703.2 |
Common Stock | ||
Shareholders Equity [Line Items] | ||
Total Equity, Beginning Balance | 49.5 | 49.5 |
Total Equity, Ending Balance | 49.5 | 49.5 |
Treasury Stock | ||
Shareholders Equity [Line Items] | ||
Total Equity, Beginning Balance | (24.2) | (24.2) |
Total Equity, Ending Balance | (24.2) | (24.2) |
Additional Paid-In-Capital | ||
Shareholders Equity [Line Items] | ||
Total Equity, Beginning Balance | 1,459 | 1,310.6 |
Share based awards compensation expense | 4.9 | 4.4 |
Contributions from parent | 120 | |
Total Equity, Ending Balance | 1,463.9 | 1,435 |
Retained Earnings (Deficit) | ||
Shareholders Equity [Line Items] | ||
Total Equity, Beginning Balance | (544) | (163.3) |
Net loss | (62.5) | (202.9) |
Total Equity, Ending Balance | (606.5) | (366.2) |
Accumulated Other Comprehensive Loss | ||
Shareholders Equity [Line Items] | ||
Total Equity, Beginning Balance | (397) | (398.6) |
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes and settlements | (14.6) | 5.7 |
Amortization of accumulated losses for amended swap agreements | 1.1 | 1.1 |
Foreign currency translation adjustments | 14.4 | (9.5) |
Total Equity, Ending Balance | (366.9) | (401.3) |
Total Cinemark USA, Inc.'s Stockholder's Equity | ||
Shareholders Equity [Line Items] | ||
Total Equity, Beginning Balance | 543.3 | 774 |
Share based awards compensation expense | 4.9 | 4.4 |
Contributions from parent | 120 | |
Net loss | (62.5) | (202.9) |
Unrealized gain due to fair value adjustments on interest rate swap agreements, net of taxes and settlements | 14.6 | 5.7 |
Amortization of accumulated losses for amended swap agreements | 1.1 | 1.1 |
Foreign currency translation adjustments | 14.4 | (9.5) |
Total Equity, Ending Balance | 515.8 | 692.8 |
Noncontrolling Interests | ||
Shareholders Equity [Line Items] | ||
Total Equity, Beginning Balance | 11.6 | 11 |
Net loss | 1.5 | (0.6) |
Total Equity, Ending Balance | $ 13.1 | $ 10.4 |
Investment in National CineMe_3
Investment in National CineMedia LLC - Summary of Activity with NCM Included in Company's Consolidated Financial Statements (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Schedule Of Equity Method Investments [Line Items] | |||
Equity in loss | $ (2.2) | $ (6.8) | |
NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Beginning Balance | 135.4 | ||
Beginning Balance | (346) | ||
Ending Balance | 131.9 | ||
Ending Balance | (343.8) | ||
Investment In NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Beginning Balance | 135.4 | ||
Equity in loss | (3.5) | ||
Ending Balance | 131.9 | ||
NCM Screen Advertising Advances | |||
Schedule Of Equity Method Investments [Line Items] | |||
Beginning Balance | (346) | ||
Interest accrued related to significant financing component | (5.8) | ||
Amortization of screen advertising advances | 8 | ||
Ending Balance | (343.8) | ||
Equity Loss | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equity in loss | 3.5 | ||
Ending Balance | 3.5 | ||
Other Revenue | |||
Schedule Of Equity Method Investments [Line Items] | |||
Screen rental revenues earned under ESA | [1] | (4.2) | |
Amortization of screen advertising advances | (8) | ||
Ending Balance | (12.2) | ||
Interest Expense - NCM | |||
Schedule Of Equity Method Investments [Line Items] | |||
Interest accrued related to significant financing component | 5.8 | ||
Ending Balance | 5.8 | ||
Cash Received | |||
Schedule Of Equity Method Investments [Line Items] | |||
Screen rental revenues earned under ESA | [1],[2] | 4.2 | |
Total Cash Recieved | [2] | $ 4.2 | |
[1] | Amounts include the per patron and per digital screen theatre access fees due to the Company, net of amounts due to NCM for on-screen advertising time provided to the Company’s beverage concessionaire of approximately $ 1.5 . | ||
[2] | The Company had a receivable from NCM of $ 6.2 as of March 31, 2022. |
Investment in National CineMe_4
Investment in National CineMedia LLC - Summary of Activity with NCM Included in Company's Consolidated Financial Statements (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable | $ 52.9 | $ 68.8 |
NCM | ||
Schedule of Equity Method Investments [Line Items] | ||
Company's beverage concessionaire advertising costs | 1.5 | |
Accounts receivable | $ 6.2 |
Investment in National CineMe_5
Investment in National CineMedia LLC - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | ||
Number of additional common units of NCM received under common unit adjustment agreement | 0.5 | |
Number of common units of NCM owned by Company | 43.2 | |
Interest in common units of NCM owned by Company | 26.00% | |
Recognized incremental interest expense | $ 5.8 | $ 5.8 |
Minimum | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage of incremental borrowing rates | 4.40% | |
Maximum | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage of incremental borrowing rates | 8.30% | |
NCM | ||
Schedule Of Equity Method Investments [Line Items] | ||
Companys Carrying Value | $ 131.9 | |
Recognized incremental screen rental revenue | 8 | $ 7.9 |
Investment In NCM | ||
Schedule Of Equity Method Investments [Line Items] | ||
Estimated fair value of investment using NCM's stock price | $ 109.6 | |
NCMI common stock price | $ 2.54 |
Investment in National CineMe_6
Investment in National CineMedia LLC - Summary of Recognition of Revenue Related to Deferred Revenue (Detail) $ in Millions | Mar. 31, 2022USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation, amount | $ 171.7 | |
NCM Screen Advertising Advances | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation, amount | 343.8 | |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation, amount | $ 9.3 | [1] |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation, amount | $ 9.9 | [1] |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation, amount | $ 10.6 | [1] |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation, amount | $ 11.3 | [1] |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation, amount | $ 12.1 | [1] |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
NCM Screen Advertising Advances | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation, amount | $ 290.6 | [1] |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
[1] | Amounts are net of the estimated interest to be accrued for the periods presented. See discussion of significant financing component below. |
Investment in National CineMe_7
Investment in National CineMedia LLC - Summary of Recognition of Revenue Related to Deferred Revenue (Detail 1) $ in Millions | Mar. 31, 2022USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 171.7 |
NCM Screen Advertising Advances | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 343.8 |
Investment in National CineMe_8
Investment in National CineMedia LLC - Summary Financial Information for National CineMedia (Detail) - NCM - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Apr. 30, 2021 | Dec. 30, 2021 | |
Schedule Of Equity Method Investments [Line Items] | |||
Gross revenues | $ 35.9 | $ 5.4 | |
Operating income (loss) | (22.5) | (28.3) | |
Net loss | (39.5) | $ (43.5) | |
Current assets | 125.9 | $ 115.4 | |
Noncurrent assets | 656.8 | 658 | |
Current liabilities | 56.7 | 67.2 | |
Noncurrent liabilities | 1,163.1 | 1,114.7 | |
Members deficit | $ (437.1) | $ (408.5) |
Other Investments - Additional
Other Investments - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Maximum | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage of voting interest | 50.00% | |
Minimum | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage of voting interest | 20.00% | |
Digital Cinema Implementation Partners | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage of voting interest | 33.00% | |
Economic interest in Digital Cinema Implementation Partners | 24.30% | |
Investment in DCIP | $ 0 | $ 0 |
Other Investments - Summary Fin
Other Investments - Summary Financial Information for DCIP (Detail) - Other Affiliates - Digital Cinema Implementation Partners - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | |||
Gross revenues | $ 0.5 | $ 5.6 | |
Operating income (loss) | (0.5) | 4 | |
Net income (loss) | (0.6) | $ 3.9 | |
Current assets | 22.1 | $ 22.9 | |
Current liabilities | 11.4 | 11.6 | |
Members' equity | $ 10.7 | $ 11.3 |
Other Investments - Summary of
Other Investments - Summary of Activity for Each of Company's Other Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | ||
Investments, beginning balance | $ 25.2 | |
Cash distributions received | (0.6) | $ (0.2) |
Equity in loss of affiliates | (2.2) | $ (6.8) |
Investments, ending balance | 25.8 | |
Other Affiliates | ||
Schedule Of Equity Method Investments [Line Items] | ||
Investments, beginning balance | 25.2 | |
Cash distributions received | (0.6) | |
Equity in loss of affiliates | (1.3) | |
Other | 0.1 | |
Investments, ending balance | 25.8 | |
Other Affiliates | AC JV, LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
Investments, beginning balance | 3.7 | |
Cash distributions received | (0.6) | |
Equity in loss of affiliates | (1) | |
Investments, ending balance | 4.1 | |
Other Affiliates | Digital Cinema Distribution Coalition | ||
Schedule Of Equity Method Investments [Line Items] | ||
Investments, beginning balance | 1.8 | |
Equity in loss of affiliates | 0.1 | |
Investments, ending balance | 1.9 | |
Other Affiliates | FE Concepts, LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
Investments, beginning balance | 19.3 | |
Equity in loss of affiliates | 0.2 | |
Investments, ending balance | 19.5 | |
Other Affiliates | Other Investments | ||
Schedule Of Equity Method Investments [Line Items] | ||
Investments, beginning balance | 0.4 | |
Other | (0.1) | |
Investments, ending balance | $ 0.3 |
Other Investments - Transaction
Other Investments - Transactions of Other Investees (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Schedule Of Equity Method Investments [Line Items] | |||
Total revenues | $ 460,500,000 | $ 114,400,000 | |
Digital Cinema Implementation Partners | |||
Schedule Of Equity Method Investments [Line Items] | |||
Equipment lease payments | [1] | 1,000,000 | |
Warranty reimbursements | [2] | 300,000 | |
AC JV, LLC | |||
Schedule Of Equity Method Investments [Line Items] | |||
Event fees paid | [3] | 1,800,000 | 200 |
Digital Cinema Distribution Coalition | |||
Schedule Of Equity Method Investments [Line Items] | |||
Content delivery fees paid | [3] | $ 200,000 | $ 100 |
[1] | As a result of the MELA amendment noted above, the Company recorded a lease termination liability during 2020. Lease termination payments of $ 1.0 made to DCIP during the three months ended March 31, 2021 reduced the liability outstanding, which was fully paid by October 2021. | ||
[2] | Included in utilities and other costs on the condensed consolidated statements of loss. | ||
[3] | Included in film rentals and advertising costs on the condensed consolidated statements of loss. |
Other Investments - Transacti_2
Other Investments - Transactions of Other Investees (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Lease Termination Payment | $ 1 |
Share Based Awards - Additional
Share Based Awards - Additional Information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Stockholders Equity Note [Line Items] | |
Debt Instrument, convertible, threshold percentage of stock price trigger | 175.00% |
Restricted Stock | |
Stockholders Equity Note [Line Items] | |
Number of restricted shares granted | shares | 0.74 |
Market value of common stock on the dates of grant | $ / shares | $ 16.64 |
Restricted Stock | Minimum | |
Stockholders Equity Note [Line Items] | |
Forfeiture rate for restricted stock awards | 0.00% |
Award vesting period for restricted stock | 1 year |
Restricted Stock | Maximum | |
Stockholders Equity Note [Line Items] | |
Forfeiture rate for restricted stock awards | 10.00% |
Award vesting period for restricted stock | 4 years |
Restricted Stock | Cinemark Holdings, Inc. | |
Stockholders Equity Note [Line Items] | |
Number of restricted shares granted | shares | 0.74 |
Restricted Stock | Cinemark Holdings, Inc. | Minimum | |
Stockholders Equity Note [Line Items] | |
Market value of common stock on the dates of grant | $ / shares | $ 15.10 |
Restricted Stock | Cinemark Holdings, Inc. | Maximum | |
Stockholders Equity Note [Line Items] | |
Market value of common stock on the dates of grant | $ / shares | $ 16.65 |
Unvested Restricted Stock Awards | |
Stockholders Equity Note [Line Items] | |
Unrecognized compensation expense | $ | $ 30 |
Remaining Compensation Expense recognition period (in years) | 2 years |
Unvested Restricted Stock Awards | Cinemark USA, Inc. | |
Stockholders Equity Note [Line Items] | |
Unrecognized compensation expense | $ | $ 29.8 |
Unvested Restricted Stock Awards | Cinemark Holdings, Inc. | |
Stockholders Equity Note [Line Items] | |
Unrecognized compensation expense | $ | $ 0.2 |
Restricted Stock Units (RSUs) | |
Stockholders Equity Note [Line Items] | |
Debt Instrument, convertible, threshold percentage of stock price trigger | 29.00% |
Debt Instrument, Convertible, Threshold Percentage of Stock Price for One Year Period | 57.00% |
Forfeiture rate for restricted stock awards | 5.00% |
Unrecognized compensation expense | $ | $ 10.3 |
Remaining Compensation Expense recognition period (in years) | 2 years |
Number of hypothetical shares of common stock at stated IRR levels | shares | 1.1 |
Restricted Stock Units (RSUs) | Maximum | |
Stockholders Equity Note [Line Items] | |
Debt Instrument, convertible, threshold percentage of stock price trigger | 100.00% |
Restricted Stock Units (RSUs) | Cinemark Holdings, Inc. | |
Stockholders Equity Note [Line Items] | |
Market value of common stock on the dates of grant | $ / shares | $ 16.65 |
Performance Awards | Cinemark Holdings, Inc. | |
Stockholders Equity Note [Line Items] | |
Number of restricted shares granted | shares | 0.80 |
Summary of Restricted Stock Act
Summary of Restricted Stock Activity (Detail) - Restricted Stock | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Shares of Restricted Stock | |
Shares of Restricted Stock, Beginning balance | 2 |
Shares of Restricted Stock, Granted | 0.74 |
Shares of Restricted Stock, Vested | (0.33) |
Shares of Restricted Stock, Forfeited | (0.03) |
Shares of Restricted Stock, Ending balance | 2.38 |
Shares of Restricted Stock, Unvested restricted stock | 2.38 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value Outstanding, Beginning | $ / shares | $ 21.73 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 16.64 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 30.59 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 19.99 |
Weighted Average Grant Date Fair Value Outstanding, Ending | $ / shares | $ 18.96 |
Summary of Restricted Stock Awa
Summary of Restricted Stock Award Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense recognized by the Company during the period | $ 4 | $ 4 |
Number of restricted stock unit awards that vested during the period | 0.33 | |
Restricted Stock | Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of share based awards that vested during the period | $ 5.6 | 1.2 |
Income tax benefit (cost) related to restricted stock awards held by Company employees | 0.8 | (0.1) |
Restricted Stock | Cinemark Holdings, Inc. | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense recognized by the Company during the period | 0.2 | 0.2 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense recognized by the Company during the period | 0.9 | 0.5 |
Fair value of share based awards that vested during the period | 1.7 | 0.3 |
Income tax benefit (cost) related to restricted stock awards held by Company employees | $ 0.3 | $ (0.1) |
Number of restricted stock unit awards that vested during the period | 0.10 | 0.01 |
Accumulated dividends paid upon vesting of restricted stock unit awards | $ 0.3 | $ 0.1 |
Summary of Goodwill (Detail)
Summary of Goodwill (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | ||
Goodwill [Line Items] | ||
Beginning Balance | $ 1,248.8 | [1] |
Foreign currency translation adjustments | (8.1) | |
Ending Balance | 1,256.9 | [1] |
U.S. Operating Segment | ||
Goodwill [Line Items] | ||
Beginning Balance | 1,182.9 | [1] |
Ending Balance | 1,182.9 | [1] |
International Operating Segment | ||
Goodwill [Line Items] | ||
Beginning Balance | 65.9 | [1] |
Foreign currency translation adjustments | (8.1) | |
Ending Balance | $ 74 | [1] |
[1] | Balances are presented net of accumulated impairment losses of $ 214.0 for the U.S. operating segment and $ 43.8 for the international operating segment. See discussion of the qualitative impairment analysis performed by the Company as of March 31, 2022 at Note 12. |
Summary of Goodwill (Parentheti
Summary of Goodwill (Parenthetical) (Detail) $ in Millions | Mar. 31, 2022USD ($) |
U.S. Operating Segment | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 214 |
International Operating Segment | |
Goodwill [Line Items] | |
Accumulated impairment losses | $ 43.8 |
Intangible Assets (Detail)
Intangible Assets (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible assets with finite lives, Beginning balance | $ 81.8 |
Other, Gross carrying amount | (0.3) |
Intangible assets with finite lives, Ending balance | 82.1 |
Intangible assets with finite lives, Accumulated amortization, Beginning balance | (71.1) |
Accumulated amortization | (0.6) |
Intangible assets with finite lives, Accumulated amortization, Ending balance | (71.7) |
Net intangible assets with finite lives, Beginning balance | 10.7 |
Amortization, intangible assets | (0.6) |
Other, Finite lived intangible assets | (0.3) |
Net intangible assets with finite lives, Ending balance | 10.4 |
Indefinite-lived Intangible Assets, Tradename and Other, Beginning Balance | 300.1 |
Tradename and Other | (0.3) |
Indefinite-lived Intangible Assets, Tradename and Other, Ending Balance | 300.4 |
Total intangible assets - net, Beginning balance | 310.8 |
Other, Total intangible assets - net | (0.6) |
Total intangible assets - net, Ending balance | $ 310.8 |
Estimated Aggregate Future Amor
Estimated Aggregate Future Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
For the three months ended December 31, 2022 | $ 2 | |||||
For the twelve months ended December 31, 2023 | $ 2.5 | |||||
For the twelve months ended December 31, 2024 | $ 2.5 | |||||
For the twelve months ended December 31, 2025 | $ 1.9 | |||||
For the twelve months ended December 31, 2026 | $ 1.5 | |||||
Thereafter | 0 | |||||
Total | $ 10.4 | $ 10.7 |
Summary of Assets and Liabiliti
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | [1] | $ 3.9 | |
Interest rate swap liabilities | [1] | $ 14.6 | |
Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Interest rate swap assets | [1] | $ 3.9 | |
Interest rate swap liabilities | [1] | $ 14.6 | |
[1] | See further discussion of interest rate swaps at Note 6. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair value of assets transfers in or out, level 1 to level 2 | $ 0 |
Fair value of assets transfers in or out, level 2 to level 1 | 0 |
Fair value, asset transfers into Level 3 | 0 |
Fair value, asset transfers out of Level 3 | $ 0 |
Foreign Currency Translation -
Foreign Currency Translation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Foreign Currency [Abstract] | ||
Accumulated other comprehensive loss | $ (366.9) | $ (397) |
Cumulative foreign currency adjustments | $ 380.1 | $ 394.5 |
Cumulative inflation rate | 100.00% | |
Cumulative inflation period | 3 years |
Foreign Currency Translation _2
Foreign Currency Translation - Summary of Impact of Translating Financial Statements of Company's International Subsidiaries (Detail) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021 | |
Foreign Currency Translation [Line Items] | |||
Other Comprehensive Loss | $ 14.4 | $ (9.5) | |
Brazil | |||
Foreign Currency Translation [Line Items] | |||
Exchange Rate | 4.8 | 5.6 | |
Other Comprehensive Loss | $ 8 | (6.9) | |
Chile | |||
Foreign Currency Translation [Line Items] | |||
Exchange Rate | 788.6 | 852 | |
Other Comprehensive Loss | $ 4.8 | (1) | |
Peru | |||
Foreign Currency Translation [Line Items] | |||
Exchange Rate | 3.8 | 4 | |
Other Comprehensive Loss | $ 1.6 | (1.2) | |
Other foreign countries | |||
Foreign Currency Translation [Line Items] | |||
Other Comprehensive Loss | 0 | (0.4) | |
International Subsidiaries | |||
Foreign Currency Translation [Line Items] | |||
Other Comprehensive Loss | $ 14.4 | $ (9.5) |
Foreign Currency Translation _3
Foreign Currency Translation - Summary of Impact of Translating Financial Statements of Company's International Subsidiaries (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Foreign Currency Translation [Line Items] | ||
Foreign currency exchange gain (loss) | $ 3.2 | $ (3) |
Argentina | ||
Foreign Currency Translation [Line Items] | ||
Foreign currency exchange gain (loss) | $ 0.5 | $ 0.2 |
Supplemental Information to Con
Supplemental Information to Condensed Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Schedule Of Cash Flow Supplemental [Line Items] | |||
Cash paid for interest | $ 42.6 | $ 22.3 | |
Cash paid (refunds received) for income taxes, net | 0.7 | (1.9) | |
Cash deposited in restricted accounts | [1] | 0 | 7.3 |
Noncash investing and financing activities: | |||
Change in accounts payable and accrued expenses for the acquisition of theatre properties and equipment | [2] | (1.2) | (7) |
NCM | |||
Noncash investing and financing activities: | |||
Interest expense - NCM (see Note 8) | $ 5.8 | $ 5.8 | |
[1] | Represents cash deposited in a collateral account during the period to support the issuance of letters of credit to lenders. See further discussion at Note 6. | ||
[2] | Additions to theatre properties and equipment included in accounts payable as of March 31, 2022 and December 31, 2021 were $ 7.0 and $ 8.2 , respectively. |
Supplemental Information to C_2
Supplemental Information to Condensed Consolidated Statements of Cash Flows (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Additions to theatre properties and equipment included in accounts payable | $ 7,000 | $ 8,200 |
Selected Financial Information
Selected Financial Information by Reportable Operating Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 460.5 | $ 114.4 | |
Adjusted EBITDA | 25.8 | (91.5) | |
Capital expenditures | 18.7 | 17.7 | |
U.S. Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | 372 | 97.1 |
International Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 88.5 | 17.3 | |
Operating Segments | U.S. Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 373.7 | 97.3 | |
Adjusted EBITDA | 15 | (76.5) | |
Capital expenditures | 14 | 13.7 | |
Operating Segments | International Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Revenues | 88.5 | 17.3 | |
Adjusted EBITDA | 10.8 | (15) | |
Capital expenditures | 4.7 | 4 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (1.7) | $ (0.2) | |
[1] | U.S. segment revenues exclude intercompany transactions with the international operating segment. See Note 16 for additional information on intercompany eliminations. |
Reconciliation of Net Loss to A
Reconciliation of Net Loss to Adjusted EBITDA (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Segment Reporting Information [Line Items] | |||
Net loss | $ (61) | $ (203.5) | |
Add (deduct): | |||
Income taxes | (6.5) | (13.2) | |
Interest expense | [1] | 32.1 | 30.5 |
Other expense, net | [2] | 3.2 | 15 |
Distributions from equity investees | 0.6 | 0.2 | |
Depreciation and amortization | 61.7 | 68.2 | |
Restructuring costs | 0 | (0.2) | |
(Gain) loss on disposal of assets and other | (6.9) | 4.5 | |
Loss on extinguishment of debt | 0 | 2.6 | |
Non-cash rent expense | (2.3) | 0.1 | |
Share based awards compensation expense | 4.9 | 4.4 | |
Adjusted EBITDA | 25.8 | (91.5) | |
Other Equity Investees | |||
Add (deduct): | |||
Distributions from equity investees | [3] | $ 0.6 | $ 0.1 |
[1] | Includes amortization of debt issue costs and amortization of accumulated losses for amended swap agreements. | ||
[2] | Includes interest income, foreign currency exchange (gain) loss, equity in loss of affiliates and interest expense - NCM and excludes distributions from NCM. | ||
[3] | Reflects cash distributions received from equity investees that were recorded as a reduction of the respective investment balances (see Note 9). These distributions are reported entirely within the U.S. operating segment. |
Selected Financial Informatio_2
Selected Financial Information by Geographic Area (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 460,500,000 | $ 114,400,000 | |
Theatre Properties and Equipment - net | 1,349,000,000 | $ 1,382,900,000 | |
Reportable Geographical Components | U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 373,700 | 97,300 | |
Theatre Properties and Equipment - net | 1,166,800,000 | 1,208,700,000 | |
Reportable Geographical Components | Brazil | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 33,100 | 4,400 | |
Theatre Properties and Equipment - net | 62,900,000 | 56,800,000 | |
Reportable Geographical Components | Other international countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 55,400 | 12,900 | |
Theatre Properties and Equipment - net | 119,300,000 | $ 117,400,000 | |
Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ (1,700) | $ (200) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($)Theatre | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Related Party Transaction [Line Items] | |||
Consulting Services | $ 0.1 | ||
Net receivable from Cinemark Holdings, Inc. | $ 49.2 | $ 46.7 | |
FE Concepts LLC | |||
Related Party Transaction [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Laredo Theatre, Ltd | |||
Related Party Transaction [Line Items] | |||
Company's interest in Laredo | 75.00% | ||
Lone Star Theatre's interest in Laredo | 25.00% | ||
Ownership interest held by David Roberts | 100.00% | ||
Percentage of common stock held by Chairman of the Board of Directors | 9.00% | ||
Percentage of management fees based on theatre revenues | 5.00% | ||
Management fee revenues | $ 0.1 | $ 0 | |
Syufy Enterprises, LP | |||
Related Party Transaction [Line Items] | |||
Number of theatres leased | Theatre | 13 | ||
Total rent paid to Syufy | $ 5.6 | 6 | |
Cinemark Holdings, Inc. | |||
Related Party Transaction [Line Items] | |||
Contributions received from parent | $ 120 | ||
Net receivable from Cinemark Holdings, Inc. | $ 49.2 | $ 46.7 |