UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the quarterly period ended April ~~4, 2021~~3, 2022 or

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

for the transition period from to

Commission file number: 1-13703

Six Flags Entertainment Corporation

(Exact Name of Registrant as Specified in Its Charter)


Delaware (State or Other Jurisdiction of Incorporation or Organization)		13-3995059 (I.R.S. Employer Identification No.)

1000 Ballpark Way Suite 400, Arlington, TX 76011 (Address of Principal Executive Offices, Including Zip Code)		(972) 595-5000 (Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.025 par value per share	SIX	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer¹ ⌧		Accelerated Filer ◻		Non-accelerated Filer ◻		Smaller Reporting Company ☐		Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: At ~~April 23, 2021,~~May 9, 2022, Six Flags Entertainment Corporation had ~~85,391,767~~86,443,033 outstanding shares of common stock, par value $0.025 per share.

Table of Contents

SIX FLAGS ENTERTAINMENT CORPORATION

FORM 10-Q

INDEX


Cautionary Note Regarding Forward-Looking Statements		1

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets as of April 3, 2022 (unaudited), January 2, 2022 and April 4, 2021 ~~(unaudited), December 31, 2020 and March 31, 2020~~ (unaudited)	3

	Condensed Consolidated Statements of Operations (unaudited) for the Three Months Ended April 3, 2022 and April 4, 2021 ~~and March 31, 2020~~	4

	Condensed Consolidated Statements of Comprehensive Loss (unaudited) for the Three Months Ended April 3, 2022 and April 4, 2021 ~~and March 31, 2020~~	5

	Condensed Consolidated Statements of Stockholders’ Deficit (unaudited) for the Three Months Ended April 3, 2022 and April 4, 2021 ~~and March 31, 2020~~	6

	Condensed Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended April 3, 2022 and April 4, 2021 ~~and March 31, 2020~~	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3322

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4029

Item 4.	Controls and Procedures	4029

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	4030

Item 1A.	Risk Factors	4130

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41

~~Item 5.~~	~~Other Information~~	4130

Item 6.	Exhibits	4230

Signatures		4332

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this "Quarterly Report") and the documents incorporated herein by reference contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding (i) the timing and conditions under which we may reopen our closed parks and our expectations regarding the continued operations of our reopened parks, (ii) the operation of our parks in light of the global coronavirus pandemic (“COVID-19”) following their anticipated reopening including, among other things, the effectiveness of cost-saving and health and safety measures implemented in response to COVID-19, (iii) the adequacy of our cash flows from operations, available cash and available amounts under our credit facilities to meet our liquidity needs, including in the event of a prolonged closure of one or more of our parks, (iv) our ability to improve operating results, profitability and resilience by adopting and implementing a new strategic plan, (v) our plans and ability to roll out our capital enhancements and planned initiatives in a timely and cost effective manner, and our expectations regarding the anticipated costs, benefits and results of such enhancements and initiatives, (vi) the extent to which having parks in many geographical locations protects our consolidated results against the effects of adverse weather and other events, (vii) our ongoing compliance with laws and regulations, and the effect of and cost and timing of compliance with newly enacted laws, regulations and accounting policies, (viii) our ability to obtain additional financing, (ix) our expectations regarding future interest payments, (x) our expectations regarding the effect of certain accounting pronouncements, (xi) our expectations regarding the cost or outcome of any litigation or other disputes, (xii) our annual income tax liability and the availability and effect of net operating loss carryforwards and other tax benefits, (xiii) our expectations regarding uncertain tax positions, (xiv) our expectations regarding our deferred revenue growth, (xv) our expectations regarding incremental benefits, including increased Adjusted EBITDA, from our transformation plan, and (xvi) our expectations regarding reclassification of net losses.amended. Forward-looking statements include all statements that are not historical facts and can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "may," "should," "could" and variations of such words or similar expressions. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include (i) global coronavirus (“COVID-19”) pandemic-related business disruptions and economic uncertainty, (ii) the adequacy of our cash flows from operations, available cash and available amounts under our credit facilities to meet our liquidity needs, (iii) our expectations regardig the timing, costs, benefits and results of our strategic plan, (iv) our ability to implement our capital plans in a timely and cost effective manner, and our expectations regarding the anticipated costs, benefits and results of such capital plans, (v) the extent to which having parks in diverse geographical locations protects our consolidated results against the effects of adverse weather and other events, (vi) our ongoing compliance with laws and regulations, and the effect of, and cost and timing of compliance with, newly enacted laws and regulations, (vii) our ability to obtain additional financing, (viii) our expectations regarding future interest payments, (ix) our expectations regarding the effect of certain accounting pronouncements, (x) our expectations regarding the cost or outcome of any litigation or other disputes, (xi) our annual income tax liability and the availability and effect of net operating loss carryforwards and other tax benefits, and (xii) our expectations regarding uncertain tax positions.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are, by their nature, subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. Therefore, we caution you that you should not rely on any of these forward-looking statements as statements of historical fact or as guarantees or assurances of future performance. These statements may involveAdditional risks and uncertainties that could cause actual results to differ materially from those described in such ~~statements. These risks and uncertainties~~forward-looking statements include, among others, the following:

•

factors impacting attendance, such as local conditions, contagious diseases, including COVID-19, or the perceived threat of contagious diseases, events, disturbances and terrorist activities;

•

regulations and guidance of federal, state and local governments and health officials regarding the response to the COVID-19 pandemic, including, with respect to business operations, safety protocols and public gatherings (such as voluntary and, in some cases, mandatory, quarantines, as well as shut downs and other restrictions on travel and commercial, social and other activities);

•

global economic and political ~~or military events;~~instability and conflicts, such as the conflict between Russia and Ukraine;

•

recall of food, toys and other retail products sold at our parks;

•

accidents ~~injuries~~or incidents involving the safety of guests and employees, or contagious disease outbreaks at our parks or other parks in our industry, and negative publicity about us or our industry;

•

availability of commercially reasonable insurance policies at reasonable rates;

•

inability to achieve desired improvements and financial performance targets;

•

adverse weather conditions, such as excess heat or cold, rain and storms;

•

general financial and credit market conditions, including our ability to access credit or raise capital;

•

economic conditions (including customer spending patterns);

•

changes in public and consumer tastes;

•

~~construction delays in capital improvements or ride downtime;~~

•

competition with other theme parks and entertainment alternatives;

•

dependence on a seasonal workforce;

•

unionization activities and labor disputes;

~~Table of Contents~~

•

laws and regulations affecting labor and employee benefit costs, including increases in state and federally mandated minimum wages, and healthcare reform;

•

environmental laws and regulations;

•

laws and regulations affecting corporate taxation;

•

pending, threatened or future legal proceedings and the significant expenses associated with litigation;

•

cyber security risks; and

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•

other factors or uncertainties described in "Item 1A. Risk Factors" set forth in our Annual Report on Form 10-K for the year ended ~~December 31, 2020~~January 2, 2022 (the ~~"2020~~"2021 Annual Report"), and in this Quarterly Report.

~~A more complete discussion of these factors and other risks applicable to our business is contained in "Part I, Item 1A. Risk Factors" of the 2020 Annual Report and in this Quarterly Report.~~ All forward-looking statements in this Quarterly Report, or that are made on our behalf by our directors, officers or employees related to the information contained herein, apply only as of the date of this Quarterly Report or as of the date they were made. While we believe that the expectations reflected in such forward-looking statements are reasonable, we ~~make~~can provide no assurance that such expectations will be realized, and actual results could vary materially. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation, except as required by applicable law, to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. Additionally, the continued impact of COVID-19,virus variants, and the rate of vaccinations could heighten many of the risk factors described herein.

Available Information

Copies of our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, are available free of charge through our website at investors.sixflags.com. References to our website in this Quarterly Report are provided as a convenience and do not constitute an incorporation by reference of the information contained on, or accessible through, the website. Therefore, such information should not be considered part of this Quarterly Report. These reports, and any amendments to these reports, are made available on our website as soon as reasonably practicable after we electronically file such reports with, or furnish them to, the United States Securities and Exchange Commission (the "SEC"). Copies are also available, without charge, by sending a written request to Six Flags Entertainment Corporation, 1000 Ballpark Way Suite 400, Arlington, TX 76011, Attn: Investor Relations.

* * * * *

As used herein, unless the context requires otherwise, the terms "we," "our," "Company" and "Six Flags" refer collectively to Six Flags Entertainment Corporation and its consolidated subsidiaries, and "Holdings" refers only to Six Flags Entertainment Corporation, without regard to its consolidated subsidiaries.

Table of Contents

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SIX FLAGS ENTERTAINMENT CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)

As of


April 4, 2021

December 31, 2020

March 31, 2020
(Amounts in thousands, except share data)

(unaudited)

(unaudited)
ASSETS






Current assets:






Cash and cash equivalents

$
62,905

$
157,760

$
22,811
Accounts receivable, net

46,420

36,610

71,558
Inventories

39,057

39,191

42,397
Prepaid expenses and other current assets

69,166

73,179

79,496
Total current assets

217,548

306,740

216,262
Property and equipment, net:






Property and equipment, at cost

2,427,318

2,408,690

2,364,872
Accumulated depreciation

(1,182,641)

(1,157,403)

(1,073,198)
Total property and equipment, net

1,244,677

1,251,287

1,291,674
Other assets:






Right-of-use operating leases, net

194,768

196,711

194,519
Debt issuance costs

6,501

7,034

3,413
Deposits and other assets

6,661

7,103

10,452
Goodwill

659,618

659,618

659,618
Intangible assets, net of accumulated amortization of $244, $238 and $23,824 as of April 4, 2021, December 31, 2020 and March 31, 2020, respectively

344,192

344,198

344,611
Total other assets

1,211,740

1,214,664

1,212,613
Total assets

$
2,673,965

$
2,772,691

$
2,720,549

LIABILITIES AND STOCKHOLDERS' DEFICIT






Current liabilities:






Accounts payable

$
31,771

$
26,582

$
48,994
Accrued compensation, payroll taxes and benefits

25,674

22,031

11,660
Accrued insurance reserves

27,568

31,060

33,223
Accrued interest payable

33,290

60,184

20,413
Other accrued liabilities

91,848

93,369

63,114
Deferred revenue

245,310

205,125

149,111
Short-term borrowings

—

—

40,000
Current portion of long-term debt

—

—

8,000
Short-term lease liabilities

10,547

14,054

10,490
Total current liabilities

466,008

452,405

385,005
Noncurrent liabilities:






Long-term debt

2,624,361

2,622,641

2,215,794
Long-term lease liabilities

190,362

187,432

186,062
Other long-term liabilities

35,337

43,553

43,238
Deferred income taxes

70,985

101,831

214,038
Total noncurrent liabilities

2,921,045

2,955,457

2,659,132
Total liabilities

3,387,053

3,407,862

3,044,137

Redeemable noncontrolling interests

523,376

523,376

529,276

Stockholders' deficit:






Preferred stock, $1.00 par value

—

—

—
Common stock, $0.025 par value, 280,000,000 shares authorized; 85,369,434, 85,075,901 and 84,666,505 shares issued and outstanding at April 4, 2021, December 31, 2020 and March 31, 2020, respectively

2,134

2,126

2,116
Capital in excess of par value

1,104,904

1,089,199

1,070,900
Accumulated deficit

(2,249,207)

(2,153,368)

(1,815,457)
Accumulated other comprehensive loss, net of tax

(94,295)

(96,504)

(110,423)
Total stockholders' deficit

(1,236,464)

(1,158,547)

(852,864)
Total liabilities and stockholders' deficit

$
2,673,965

$
2,772,691

$
2,720,549

~~See accompanying notes to unaudited condensed consolidated financialstatements.~~

~~Table of Contents~~

~~SIX FLAGS ENTERTAINMENT CORPORATION~~

~~Condensed Consolidated Statements of Operations~~

~~(Unaudited)~~

Three Months Ended
(Amounts in thousands, except per share data)

April 4, 2021

March 31, 2020
Park admissions

$
44,334

$
59,806
Park food, merchandise and other

31,224

29,806
Sponsorship, international agreements and accommodations

6,466

12,891
Total revenues

82,024

102,503
Operating expenses (excluding depreciation and amortization shown separately below)

92,643

105,864
Selling, general and administrative expenses (including stock-based compensation of $6,637 and $4,280 in 2021 and 2020, respectively, and excluding depreciation and amortization shown separately below)

36,126

36,190
Costs of products sold

7,215

7,760
Other net periodic pension benefit

(1,643)

(996)
Depreciation

28,827

30,063
Amortization

6

601
Loss (gain) on disposal of assets

520

(120)
Interest expense

38,460

27,486
Interest income

(40)

(329)
Loss on debt extinguishment

—

1,019
Other expense, net

7,619

1,560
Loss before income taxes

(127,709)

(106,595)
Income tax benefit

(31,870)

(22,049)
Net loss

$
(95,839)

$
(84,546)

Weighted-average common shares outstanding - basic and diluted:

85,209

84,656

Net loss per average common share outstanding - basic and diluted:

$
(1.12)

$
(1.00)

Cash dividends declared per common share

$
—

$
0.25

~~See accompanying notes to unaudited condensed consolidated financial statements.~~

~~Table of Contents~~

~~SIX FLAGS ENTERTAINMENT CORPORATION~~

~~Condensed Consolidated Statements of Comprehensive~~ ~~Loss~~

~~(Unaudited)~~

Three Months Ended
(Amounts in thousands)

April 4, 2021

March 31, 2020
Net loss

$
(95,839)

$
(84,546)
Other comprehensive (loss) income, net of tax:



Foreign currency translation adjustment ⁽¹⁾

(1,973)

(14,198)
Defined benefit retirement plan ⁽²⁾

255

193
Change in cash flow hedging ⁽³⁾

3,927

(21,708)
Other comprehensive income (loss), net of tax

2,209

(35,713)
Comprehensive loss

$
(93,630)

$
(120,259)

(1) Foreign currency translation adjustment is presented net of tax benefit of $0.4 million for the three months ended April 4, 2021, and tax benefit of $3.8 million for the three months ended March 31, 2020.

~~(2) Defined benefit retirement plan is presented net of tax expense of $0.1 million for the three months ended April 4, 2021 and March 31, 2020.~~

(3) Change in cash flow hedging is presented net of tax expense of $1.3 million for the three months ended April 4, 2021 and tax benefit of $7.2 million for the three months ended March 31, 2020, respectively.


	As of
	April 3, 2022		January 2, 2022		April 4, 2021
(Amounts in thousands, except share data)	(unaudited)				(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	252,203	$	335,585	$	62,905
Accounts receivable, net		86,461		97,722		46,420
Inventories		39,161		27,273		39,057
Prepaid expenses and other current assets		55,454		55,455		69,166
Total current assets		433,279		516,035		217,548
Property and equipment, net:
Property and equipment, at cost		2,528,135		2,501,829		2,427,318
Accumulated depreciation		(1,280,969)		(1,250,902)		(1,182,641)
Total property and equipment, net		1,247,166		1,250,927		1,244,677
Other assets:
Right-of-use operating leases, net		184,643		186,754		194,768
Debt issuance costs		4,365		4,899		6,501
Deposits and other assets		10,779		6,170		6,661
Goodwill		659,618		659,618		659,618
Intangible assets, net of accumulated amortization of $266, $261 and $244 as of April 3, 2022, January 2, 2022 and April 4, 2021, respectively		344,182		344,187		344,192
Total other assets		1,203,587		1,201,628		1,211,740
Total assets	$	2,884,032	$	2,968,590	$	2,673,965

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	65,652	$	38,251	$	31,771
Accrued compensation, payroll taxes and benefits		22,444		51,473		25,674
Accrued insurance reserves		32,423		32,182		27,568
Accrued interest payable		33,217		50,554		33,290
Other accrued liabilities		94,052		101,790		91,848
Deferred revenue		185,094		177,831		245,310
Short-term lease liabilities		11,383		11,158		10,547
Total current liabilities		444,265		463,239		466,008
Noncurrent liabilities:
Long-term debt		2,631,246		2,629,524		2,624,361
Long-term lease liabilities		180,464		178,200		190,362
Other long-term liabilities		10,502		9,469		35,337
Deferred income taxes		133,264		148,291		70,985
Total noncurrent liabilities		2,955,476		2,965,484		2,921,045
Total liabilities		3,399,741		3,428,723		3,387,053

Redeemable noncontrolling interests		522,067		522,067		523,376

Stockholders' deficit:
Preferred stock, $1.00 par value		—		—		—
Common stock, $0.025 par value, 280,000,000 shares authorized; 86,248,545, 86,162,879 and 85,369,434 shares issued and outstanding at April 3, 2022, January 2, 2022 and April 4, 2021, respectively		2,156		2,154		2,134
Capital in excess of par value		1,124,603		1,120,084		1,104,904
Accumulated deficit		(2,088,913)		(2,023,251)		(2,249,207)
Accumulated other comprehensive loss, net of tax		(75,622)		(81,187)		(94,295)
Total stockholders' deficit		(1,037,776)		(982,200)		(1,236,464)
Total liabilities and stockholders' deficit	$	2,884,032	$	2,968,590	$	2,673,965

See accompanying notes to unaudited condensed consolidated financialstatements.

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SIX FLAGS ENTERTAINMENT CORPORATION

Condensed Consolidated Statements of ~~Stockholders’ Deficit~~Operations

(Unaudited)


	Three Months Ended
(Amounts in thousands, except per share data)	April 3, 2022		April 4, 2021
Park admissions	$	72,987	$	44,334
Park food, merchandise and other		54,269		31,224
Sponsorship, international agreements and accommodations		10,851		6,466
Total revenues		138,107		82,024
Operating expenses (excluding depreciation and amortization shown separately below)		109,944		92,643
Selling, general and administrative expenses (including stock-based compensation of $4,225 and $6,637 in 2022 and 2021, respectively, and excluding depreciation and amortization shown separately below)		39,332		36,126
Costs of products sold		10,115		7,215
Other net periodic pension benefit		(1,451)		(1,643)
Depreciation		29,043		28,827
Amortization		6		6
(Gain) loss on disposal of assets		(2,100)		520
Interest expense		37,857		38,460
Interest income		(327)		(40)
Other expense, net		463		7,619
Loss before income taxes		(84,775)		(127,709)
Income tax benefit		(19,113)		(31,870)
Net loss	$	(65,662)	$	(95,839)

Weighted-average common shares outstanding - basic and diluted:		86,197		85,209

Net loss per average common share outstanding - basic and diluted:	$	(0.76)	$	(1.12)

See accompanying notes to unaudited condensed consolidated financial statements.

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Accumulated

Capital in

other

Total

Common stock

excess of

Accumulated

comprehensive

stockholders'
(Amounts in thousands, except share data)

Shares issued

Amount

par value

deficit

loss

deficit
Balances at December 31, 2019

84,633,845

$
2,116

$
1,066,223

$
(1,709,747)

$
(74,710)

$
(716,118)
Issuance of common stock

32,788

1

421

—

—

422
Stock-based compensation

—

—

4,280

—

—

4,280
Dividends declared to common shareholders

—

—

—

(21,164)

—

(21,164)
Repurchase of common stock

(155)

—

(6)

—

—

(6)
Employee stock purchase plan

27

(1)

—

—

—

(1)
Change in redemption value of partnership units

—

—

(18)

—

—

(18)
Net loss attributable to Six Flags Entertainment Corporation

—

—

—

(84,546)

—

(84,546)
Net other comprehensive loss, net of tax

—

—

—

—

(35,713)

(35,713)
Balances at March 31, 2020

84,666,505

$
2,116

$
1,070,900

$
(1,815,457)

$
(110,423)

$
(852,864)

SIX FLAGS ENTERTAINMENT CORPORATION

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)


	Three Months Ended
(Amounts in thousands)	April 3, 2022		April 4, 2021
Net loss	$	(65,662)	$	(95,839)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment ⁽¹⁾		(4,085)		(1,973)
Defined benefit retirement plan ⁽²⁾		171		255
Change in cash flow hedging ⁽³⁾		9,479		3,927
Other comprehensive income, net of tax		5,565		2,209
Comprehensive loss	$	(60,097)	$	(93,630)

(1) Foreign currency translation adjustment is presented net of tax benefit of $1.1 million for the three months ended April 3, 2022, and tax benefit of $0.4 million for the three months ended April 4, 2021.

(2) Defined benefit retirement plan is presented net of tax expense of $0.1 million for the three months ended April 3, 2022 and April 4, 2021.

(3) Change in cash flow hedging is presented net of tax expense of $3.1 million and $1.3 million for the three months ended April 3, 2022 and April 4, 2021, respectively.

See accompanying notes to unaudited condensed consolidated financial statements.

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SIX FLAGS ENTERTAINMENT CORPORATION

Condensed Consolidated Statements of Stockholders’ Deficit

(Unaudited)


								Accumulated											Accumulated
				Capital in				other		Total					Capital in				other		Total
	Common stock			excess of		Accumulated		comprehensive		stockholders'		Common stock			excess of		Accumulated		comprehensive		stockholders'
(Amounts in thousands, except share data)	Shares issued	Amount		par value		deficit		loss		deficit		Shares issued	Amount		par value		deficit		loss		deficit
Balances at December 31, 2020	85,075,901	$	2,126	$	1,089,199	$	(2,153,368)	$	(96,504)	$	(1,158,547)	85,075,901	$	2,126	$	1,089,199	$	(2,153,368)	$	(96,504)	$	(1,158,547)
Issuance of common stock	293,597		8		9,071		—		—		9,079	293,597		8		9,071		—		—		9,079
Stock-based compensation	—		—		6,637		—		—		6,637	—		—		6,637		—		—		6,637
Employee stock purchase plan	(64)		—		(3)		—		—		(3)	(64)		—		(3)		—		—		(3)
Net loss attributable to Six Flags Entertainment Corporation	—		—		—		(95,839)		—		(95,839)	—		—		—		(95,839)		—		(95,839)
Net other comprehensive income, net of tax	—		—		—		—		2,209		2,209
Net other comprehensive loss, net of tax												—		—		—		—		2,209		2,209
Balances at April 4, 2021	85,369,434	$	2,134	$	1,104,904	$	(2,249,207)	$	(94,295)	$	(1,236,464)	85,369,434	$	2,134	$	1,104,904	$	(2,249,207)	$	(94,295)	$	(1,236,464)


								Accumulated
				Capital in				other		Total
	Common stock			excess of		Accumulated		comprehensive		stockholders'
(Amounts in thousands, except share data)	Shares issued	Amount		par value		deficit		loss		deficit
Balances at January 2, 2022	86,162,879	$	2,154	$	1,120,084	$	(2,023,251)	$	(81,187)	$	(982,200)
Issuance of common stock	87,702		2		297		—		—		299
Stock-based compensation	—		—		4,225		—		—		4,225
Payment of tax withholdings on equity-based compensation through shares withheld	(2,036)		—		(3)		—		—		(3)
Net loss attributable to Six Flags Entertainment Corporation	—		—		—		(65,662)		—		(65,662)
Net other comprehensive income, net of tax	—		—		—		—		5,565		5,565
Balances at April 3, 2022	86,248,545	$	2,156	$	1,124,603	$	(2,088,913)	$	(75,622)	$	(1,037,776)

See accompanying notes to unaudited condensed consolidated financial statements.

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SIX FLAGS ENTERTAINMENT CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended
(Amounts in thousands)

April 4, 2021

March 31, 2020
Cash flows from operating activities:

Net loss

$
(95,839)

$
(84,546)
Adjustments to reconcile net loss to net cash used in operating activities:




Depreciation and amortization

28,833

30,664
Stock-based compensation

6,637

4,280
Interest accretion on notes payable

277

320
Loss on debt extinguishment

—

1,019
Amortization of debt issuance costs

1,978

856
Other, including loss (gain) on disposal of assets

(931)

1,546
Change in accounts receivable

(9,897)

35,159
Change in inventories, prepaid expenses and other current assets

3,907

(30,794)
Change in deposits and other assets

436

2,208
Change in ROU operating leases

2,113

2,437
Change in accounts payable, deferred revenue, accrued liabilities and other long-term liabilities

42,146

1,223
Change in operating lease liabilities

(1,182)

2,204
Change in accrued interest payable

(26,894)

(5,715)
Deferred income taxes

(31,982)

(21,248)
Net cash used in operating activities

(80,398)

(60,387)

Cash flows from investing activities:




Additions to property and equipment

(23,133)

(53,458)
Property insurance recoveries

—

2,042
Proceeds from sale of assets

33

—
Net cash used in investing activities

(23,100)

(51,416)

Cash flows from financing activities:




Repayment of borrowings

(2,000)

(117,510)
Proceeds from borrowings

2,000

105,000
Payment of cash dividends

(201)

(21,367)
Proceeds from issuance of common stock

9,078

421
Stock repurchases

(3)

(6)
Reduction in finance lease liability

(76)

—
Net cash provided by (used in) financing activities

8,798

(33,462)

Effect of exchange rate on cash

(155)

(6,103)

Net change in cash and cash equivalents

(94,855)

(151,368)
Cash and cash equivalents at beginning of period

157,760

174,179
Cash and cash equivalents at end of period

$
62,905

$
22,811

Supplemental cash flow information




Cash paid for interest

$
63,937

$
31,987
Cash paid for income taxes

$
268

$
1,959


	Three Months Ended
(Amounts in thousands)	April 3, 2022		April 4, 2021
Cash flows from operating activities:
Net loss	$	(65,662)	$	(95,839)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		29,049		28,833
Stock-based compensation		4,225		6,637
Interest accretion on notes payable		278		277
Loss on debt extinguishment		—		—
Amortization of debt issuance costs		1,978		1,978
Other, including loss (gain) on disposal of assets		3,120		(931)
Change in accounts receivable		11,535		(9,897)
Change in inventories, prepaid expenses and other current assets		(11,512)		3,907
Change in deposits and other assets		(4,600)		436
Change in ROU operating leases		2,585		2,113
Change in accounts payable, deferred revenue, accrued liabilities and other long-term liabilities		6,815		42,146
Change in operating lease liabilities		2,161		(1,182)
Change in accrued interest payable		(17,337)		(26,894)
Deferred income taxes		(18,347)		(31,982)
Net cash used in operating activities		(55,712)		(80,398)

Cash flows from investing activities:
Additions to property and equipment		(32,071)		(23,133)
Property insurance recoveries		3,081		—
Proceeds from sale of assets		—		33
Net cash used in investing activities		(28,990)		(23,100)

Cash flows from financing activities:
Repayment of borrowings		—		(2,000)
Proceeds from borrowings		—		2,000
Payment of cash dividends		(14)		(201)
Proceeds from issuance of common stock		299		9,078
Reduction in finance lease liability		(201)		(76)
Stock repurchases		(3)		(3)
Net cash provided by financing activities		81		8,798

Effect of exchange rate on cash		1,239		(155)

Net change in cash and cash equivalents		(83,382)		(94,855)
Cash and cash equivalents at beginning of period		335,585		157,760
Cash and cash equivalents at end of period	$	252,203	$	62,905

Supplemental cash flow information
Cash paid for interest	$	52,157	$	63,937
Cash paid for income taxes	$	885	$	268

See accompanying notes to unaudited condensed consolidated financial statements.

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1. General — Basis of Presentation

We own and operate regional theme parks and waterparks. We are the largest regional theme park operator in the world, and we are the largest operator of waterparks in North America based on the number of parks we operate. Of the 27 parks we owned or operated as of April ~~4, 2021,~~3, 2022, 24 parks are located in the United States, 2 are located in Mexico and 1 is located in Montreal, Canada. ~~Our waterpark at Six Flags Great America will open as a separate gate in 2021 as Hurricane Harbor Chicago, creating our 27~~^th ~~park.~~

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed, or omitted, pursuant to the rules and regulations of the SEC.

Holdings’ Board of Directors determined that it is in our best interest to change the method of determining our fiscal quarters and fiscal years, such that each fiscal quarter will consist of thirteen weeks ending on a Sunday and each fiscal year will consist of 52 or 53 weeks, as applicable, and will end on the Sunday closest to December 31, effective as of the commencement of our fiscal year on January 1, 2021. This change was made to align our reporting calendar with how we operate our business and improve comparability across periods. Our current fiscal year will end on January ~~2, 2022.~~1, 2023. This Quarterly Report covers the period January 3, 2022 – April 3, 2022 (“the three months ended April 3, 2022”). The comparison period in the prior year covers the dates January 1, 2021 – April 4, 2021 (“the three months ended April 4, 2021”). The ~~comparison period in the prior year covers the dates January 1, 2020 – March 31, 2020 (“the three months ended March 31, 2020”). The~~ additional ~~four~~3 days in the three months ended April 4, 2021 ~~did not make a material impact on the first quarter~~accounted for 89 thousand additional guests.

The 2021 ~~results.~~

"Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations" contains a discussion of our results of operations and our financial position and should be read in conjunction with the unaudited condensed consolidated financial statements and notes. The 2020 Annual Report includes additional information about us, our operations and our financial position, and should be referred to in conjunction with this Quarterly Report. The information furnished in this Quarterly Report reflects all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the results for the periods presented.

Results of operations for the three months ended April ~~4, 2021,~~3, 2022, are not indicative of the results expected for the full year. ~~In particular, our~~Our operations are highly seasonal, with approximately 75% of park ~~operations contribute more than half~~attendance and revenues in a typical year occurring in the second and third calendar quarters of ~~their annual revenue during~~each year, with the most significant period ~~from~~falling between Memorial Day toand Labor ~~Day each year, while expenses are incurred year-round.~~Day.

COVID-19 ~~Considerations~~

In response to the COVID-19 pandemic, federal, state and local governments implemented significant restrictions on travel, social conduct and business operations, including mass quarantine and social distancing mandates and orders. In March 2020, we temporarily suspended operations at all of our domestic theme parks and waterparks due to the COVID-19 pandemic. We have reopened or announced reopening dates for each of our parks with the exception of our park in Canada. Most parks that are currently operating have capacity and other operating limitations.

In March 2020, we quickly implemented plans to mitigate the impact of the COVID-19 pandemic on our business to ensure the health and safety of our employees and guests. In response to the challenging environment, we focused on the following actions:

●

~~Implemented immediate cost controls by right-sizing marketing and temporarily reducing salaries of all full-time employees by 25%;~~

●

Strengthened liquidity through expansion of our revolving credit facility, suspension of testing of certain maintenance covenants in our credit facility, issuance of senior secured notes, and suspension of dividend payments and stock repurchases;

●

~~Enhanced financial flexibility by delaying and reducing capital expenses related to new rides and attractions;~~

●

~~Developed measures to preserve our season pass holder and member bases;~~

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●

~~Opened parks as quickly as possible, while following governmental and public health guidelines; and~~

●

~~Created new sources of revenue by introducing animal and holiday drive-thru experiences at many parks.~~

We resumed partial operations at many of our parks on a staggered basis near the end of the second quarter of 2020 using a cautious and phased approach, including limiting attendance, in accordance with local conditions and government guidelines. Attendance trends continued to improve throughout 2020 and the first quarter of 2021 for the parks that were open.

We have taken measures to ensure sufficient liquidity to meet our cash flow needs and covenant compliance obligations for at least the next twelve months from the issuance of these financial statements. Additionally, we believe we have sufficient liquidity to meet our cash obligations through the end of 2021, even if our open parks are required to close. In addition to reducing expenses and capital expenditures, in April 2020, we increased the revolving credit commitments under the Second Amended and Restated Revolving Loan by $131.0 million, increasing the facility from $350.0 million to $481.0 million. Also, in April 2020, Six Flags Theme Parks Inc. (“SFTP”), Holdings’ indirect, wholly owned subsidiary, completed the private sale of $725.0 million in aggregate principal amount of 7.00% senior secured notes due 2025. In August 2020, we extended the increased revolving credit commitments under the Second Amended and Restated Revolving Loan through December 31, 2022, and extended the suspension of our senior secured leverage ratio financial maintenance covenant through the end of 2021. See Note 3, Long-Term Indebtedness, for more information on these transactions. In connection with the Second Amended and Restated Credit Agreement, we suspended dividend payments and stock repurchases until the earlier of December 31, 2022, or such time as SFTP reduces the incremental revolving credit commitments by $131 million and begins using actual results to test the senior secured leverage ratio financial maintenance covenant compliance.Pandemic

The COVID-19 pandemic continues to present material uncertainty and risk with respect to our performance and financial ~~results, including around our ability to keep all of our parks open to our guests. We~~results. Significant government and private sector actions have been taken since 2020 and likely will continue to ~~consider near-term exigencies~~be taken intended to control the spread and mitigate the ~~long-term financial health~~economic effects of the pandemic. Since early 2021, the availability and administration of vaccines against COVID-19 has increased, and there has been an easing of restrictions on social, business, ~~as we take steps~~travel and government activities and functions. On the other hand, infection rates and regulations continue to ~~mitigate~~fluctuate in various regions and there are ongoing global impacts resulting from the ~~consequences~~pandemic, including challenges and increases in costs for logistics and supply chains, and wage rates. The duration and severity of the impact of the COVID-19 ~~pandemic.~~pandemic are currently unknown. The ~~extent to which~~pandemic has impacted the ~~COVID-19 pandemic impacts~~Company and could materially impact our business will depend on future developments, which are highly uncertain and cannot be predicted, including any additional actions we take to contain COVID-19 or treat its impact, among others. Our business and financial results ~~could be materially and adversely impacted.~~

~~Transformation Plan~~

~~During~~in the ~~three months ended April 4, 2021, we incurred the below expenses related to our transformation plan.~~

Transformation Costs Breakout by Quarter

Three Months Ended

April 4, 2021
Amounts included in "Other expense, net"

Consultant costs

$
6,787
Technology modernization costs

2,094
Employee termination costs

815
Total transformation costs

$
9,696

~~There were no transformation plan related expenses incurred during the three months ended March 31, 2020.~~future.

a. Consolidated U.S. GAAP Presentation

Our accounting policies reflect industry practices and conform to U.S. GAAP.

The unaudited condensed consolidated financial statements include our accounts and the accounts of our wholly owned subsidiaries. We also consolidate the partnerships that own Six Flags Over Texas ("SFOT") and Six Flags Over Georgia (including Six Flags White Water Atlanta) ("~~SFOG",~~SFOG," and together with SFOT, the "Partnership Parks") as subsidiaries in our unaudited condensed consolidated financial statements, as we have determined that we have the

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power to direct the activities of the Partnership Parks that most significantly impact their economic performance and we have the obligation to absorb losses and receive benefits from the Partnership Parks that can be potentially significant to these entities. The equity interests owned by non-affiliated parties in the Partnership Parks are reflected in the accompanying unaudited condensed consolidated balance sheets as redeemable noncontrolling interests. ~~See Note 6 for a description~~

Table of ~~the partnership agreements applicable to the Partnership Parks and Note 8 for further discussion on the non-affiliated parties’ share of the earnings of the Partnership Parks.~~Contents

b. Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including net operating loss and other tax carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. We recorded a valuation allowance of ~~$129.4~~$107.8 million, ~~$128.2~~$107.4 million and ~~$132.2~~$129.4 million as of April 3, 2022, January 2, 2022 and April 4, 2021, ~~December 31, 2020 and March 31, 2020,~~ respectively, due to uncertainties related to our ability to use some of our deferred tax assets, primarily consisting of certain state net operating loss and other tax carryforwards, before they expire. The valuation allowance was based on our estimates of taxable income by jurisdiction in which we operate and the period over which our deferred tax assets were recoverable. Our projected taxable income over the foreseeable future indicates we will be able to use all of our federal net operating loss carryforwards before they expire.

In determining the effective tax rate for interim periods, we consider the expected changes in our valuation allowance from current year originating or reversing timing differences between financial accounting and tax purposes and the taxable income or loss expected for the current year. For interim periods, we also account for the tax effect of significant non-recurring items in the period in which they occur as well as changes in the valuation allowance relating to a change in the assessment of the probability of utilization of the deferred income tax assets.

Our liability for income taxes is finalized as auditable tax years pass their respective statutes of limitations in the various jurisdictions in which we are subject to tax. However, taxing authorities of these jurisdictions may audit prior years for which the statute of limitations is closed for the purpose of making an adjustment to our taxable income in a year for which the statute of limitations has not closed. Accordingly, taxing authorities of these jurisdictions may audit prior years of the Company and its predecessors for the purpose of adjusting net operating loss carryforwards to years for which the statute of limitations has not closed.

We classify interest and penalties attributable to income taxes as part of income tax expense. As of April 3, 2022, January 2, 2022 and April 4, 2021, ~~December 31, 2020 and March 31, 2020,~~ we had 0 recorded amounts for accrued interest or penalties.

Because we do not permanently reinvest foreign earnings, United States deferred income taxes have been provided on unremitted foreign earnings to the extent that such foreign earnings are expected to be taxable upon repatriation.

c. Goodwill and Intangibles

Goodwill and intangible assets with indefinite lives are tested for impairment annually, or more frequently if events or circumstances indicate that the assets might be impaired. We identify our reporting unit and determine the carrying value of the reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to the reporting unit. We then determine the fair value of the reporting unit and compare it to the carrying amount of the reporting unit. All of our parks are operated in a similar manner and have comparable characteristics in that they produce and distribute similar services and products using similar processes, have similar types of customers, are subject to similar regulations and exhibit similar economic characteristics. As such, we are a single reporting unit.

As of April ~~4, 2021,~~3, 2022, the fair value of the single reporting unit exceeded our carrying amount. We have 1 reporting unit at the same level for which Holdings common stock is traded and we believe our market capitalization is the best

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indicator of our reporting unit’s fair value. At April ~~4, 2021,~~3, 2022, we ~~determined~~did not identify any triggering events that ~~it is not more likely than not that the fair value of our intangible assets were less than their carrying amounts and there were no triggering events.~~would require a full quantitative analysis to be performed.

d. Long-Lived Assets

We review long-lived assets, including finite-lived intangible assets subject to amortization, for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the asset or group of assets may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of the asset or group of assets to the future net cash flows expected to be generated by the asset or group of assets. If such assets are not considered to be fully recoverable, any impairment to be recognized is measured by the amount by which the carrying amount of the asset or group of assets exceeds its respective fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. ~~We determined that our long-lived assets were recoverable as~~As of April ~~4, 2021.~~3, 2022, we did not identify any triggering events that would require a full quantitative analysis.

e. Earnings Per Common Share

Basic earnings per common share is computed by dividing net income attributable to Holdings’ common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is computed by dividing net income attributable to Holdings’ common stockholders by the weighted average number of common shares outstanding during the period, including the effect of all dilutive common stock equivalents using the treasury stock method. In periods for which there is a net loss, diluted loss per common share is equal to basic loss per common share, since the effect of including any common stock equivalents would be antidilutive.

We incurred a net loss for the three months ended April 3, 2022 and April 4, 2021, ~~and March 31, 2020,~~ therefore, diluted shares outstanding equaled basic shares outstanding for the purposes of determining loss per common share. The computation of diluted earnings per share excluded the effect of ~~6,199,000~~2,744,000 and ~~5,907,000~~6,199,000 antidilutive stock options, restricted stock units and performance stock units for the three months ended April 3, 2022 and April 4, 2021, ~~and March 31, 2020,~~ respectively.

f~~. Derivative Instruments and Hedging Activities~~

We recognize all derivatives as either assets or liabilities on the condensed consolidated balance sheet and measure those instruments at fair value. If certain conditions are met, a derivative may be specifically designated as a hedge for accounting purposes. The accounting for changes in the fair value of a derivative (e.g., gains and losses) depends on the intended use of the derivative and the resulting designation.

We formally document all relationships between hedging instruments and hedged items, as well as our risk-management objective and our strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges to forecasted transactions. We also assess, both at the hedge’s inception and on an ongoing basis throughout the contract term, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items.

Changes in the fair value of interest rate derivatives that are effective and that are designated and qualify as cash flow hedges are recorded in “Other comprehensive loss” until operations are affected by the variability in cash flows of the designated hedged item, at which point they are reclassified to “interest expense”. Changes in the fair value of derivatives that do not qualify for hedge accounting or that are de-designated are recorded in “Other expense, net” in the unaudited condensed consolidated statements of operations.

~~g. Fair Value of Financial Instruments~~

The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. We use a market approach for our recurring fair value measurements, and we endeavor to use the best information available. Accordingly, valuation techniques that maximize the use of observable impacts are favored. We present the estimated fair values and classifications of our financial instruments in accordance with U.S. GAAP.

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~~We use the following methods and assumptions to estimate the fair value of each class of financial instruments:~~

●

The carrying values of cash and cash equivalents, accounts receivable, notes receivable, accounts payable and accrued liabilities approximate fair value because of the short maturity of these instruments.

●

The measurement of the fair value of long-term debt is based on market prices that generally are observable for similar liabilities at commonly quoted intervals and is considered a Level 2 fair value measurement.

●

The measurement of the fair value of derivative assets and liabilities is based on market prices that generally are observable for similar assets and liabilities at commonly quoted intervals and is considered a Level 2 fair value measurement. Derivative assets and liabilities that have maturity dates equal to or less than twelve months from the balance sheet date are included in prepaid and other current assets and other accrued liabilities, respectively. Derivative assets and liabilities that have maturity dates greater than twelve months from the balance sheet date are included in deposits and other assets and other long-term liabilities, respectively.

h.f. Stock Benefit Plans

Pursuant to the Six Flags Entertainment Corporation Long-Term Incentive Plan (the "Long-Term Incentive Plan"), Holdings may grant stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, deferred stock units, performance stock units, performance and cash-settled awards and dividend equivalent rights ("DERs") to select employees, officers, directors and consultants of Holdings and its affiliates.

~~We recognize the fair value of each~~Periodically, we will grant as compensation expense on a straight-line basis over the vesting period using the graded vesting terms of the respective grant. The fair value of stock option grants is estimated using the Black-Scholes option pricing valuation model. The fair value of stock, restrictedperformance stock units ~~and restricted stock~~to key employees. These awards ~~is the quoted market price~~vest on attainment of ~~Holdings’ common stock on the date of grant.~~

specific objectives most often related to Adjusted EBITDA or recognized revenue over a defined period. During the three months

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ended April 4,3, 2022, it was determined that our March 8, 2021 performance stock units were granted to key employees that will vest upon the achievement of Adjusted EBITDA and Revenue performance targets by 2023. The aggregate payout under these awards if the targets are achieved in 2023 would be 186,000, but could be more or less depending on the levelgrant was probable of achievement at the threshold level and ~~timing thereof. There has been 0 stock-based~~stock compensation expense recorded for the performance stock units because, as of April 4, 2021, it is not deemed probable that we will achieve the specified performance targets in 2023. Based on the grant date fair value of these performance stock units as determined by the closing market price of Holdings' common stock on the date of grant, the total unrecognized compensation cost related to these performance stock units at target achievement in 2023 is $9.3 million that will be expensed over the service period if achievement of the performance conditions becomes probable. We will continue to evaluate the probability of achieving the performance conditions going forward and will record the appropriate expense as necessary.was recognized totaling $0.9 million.

During the three months ended April 3, 2022 and April 4, 2021, ~~and March 31, 2020,~~ stock-based compensation expense consisted of the following:


	Three Months Ended				Three Months Ended
(Amounts in thousands)	April 4, 2021		March 31, 2020		April 3, 2022		April 4, 2021
Long-Term Incentive Plan	$	6,562	$	4,205	$	4,150	$	6,562
Employee Stock Purchase Plan		75		75		75		75
Total Stock-Based Compensation	$	6,637	$	4,280	$	4,225	$	6,637

During the three months ended April 3, 2022 and April 4, 2021, we paid a nominal amount and $0.2 million, respectively, to employees with dividend equivalent rights for previously declared dividends due upon the vesting of the related ~~shares.~~shares of Holdings’ common stock. These dividends were declared prior to the suspension of dividend payments in connection with the increase in the Second Amended and Restated Revolving Loan in April 2020.

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~~i. Revenue Recognition~~

We account for revenue from contracts with customers based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We recognize revenue upon admission into our parks, provision of our services, or when products are delivered to our guests. Revenues are presented in the accompanying condensed consolidated statements of operations net of sales taxes collected from our guests that are remitted or payable to government taxing authorities. For season passes, memberships in the initial twelve-month term and other multi-use admissions, we estimate a redemption rate based on historical experience and other factors and assumptions we believe to be customary and reasonable and recognize a pro-rata portion of the revenue as the guests visit our parks. Amounts owed or received for multi-use admissions in excess of redemptions are recognized in deferred revenue. In contrast to our season pass and other multi-use offerings (such as our all season dining pass program, which enables season passholders and members to eat meals and snacks any day they visit the park for 1 upfront payment) that expire at the end of each operating season, the membership program continues on a month-to-month basis after the initial twelve-month membership term and can be canceled any time after the initial term pursuant to the terms of the membership program. Guests enrolled in the membership program can visit our parks an unlimited number of times whenever the parks are open as long as the guest remains enrolled in the membership program. We review the estimated redemption rate on an ongoing basis and revise it as necessary throughout the year, including the impact of changes to our season pass and memberships described above. For any bundled products with multiple performance obligations, revenue is allocated using the retail price of each distinct performance obligation and products that are not sold on a stand-alone basis are treated as residual.

For active memberships after the initial twelve-month term, we recognize revenue monthly as payments are received, with the exception of those payments related to the parks that remain temporarily closed due to COVID-19. In connection with the temporary closure of our parks due to COVID-19, we added one additional month of membership privileges for every month a member paid but could not visit their home park. Any membership payments received while parks were temporarily closed due to the pandemic were deferred and will be recognized as revenue when these additional months are utilized at the end of the respective membership periods or when they exchange their additional months for a Six Flags gift card pursuant to our gift card exchange program, whichever is sooner. Season pass holders were granted an additional year of admission to the parks due to the COVID-19 pandemic. All 2020 passes now expire at the end of the 2021 season.

As of April 4, 2021, deferred revenue was primarily comprised of (i) unredeemed season pass and all-season dining pass revenue, (ii) unredeemed portions of the membership program, member dining program and member flash pass program that will primarily be recognized in 2021, (iii) pre-sold single day admissions revenue for the 2021 operating season and (iv) pre-sold single-day admissions revenue for the 2020 operating season which now expire at the end of the 2021 season.

Certain contracts with customers, primarily memberships, may include bundled products with multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the observable retail prices charged to customers and use residual for any products not sold on a stand-alone basis. We generally expense (i) sales commissions when incurred, and (ii) certain costs to obtain a contract where the amortization period would have been one year or less. These costs are recognized in "Selling, general and administrative expenses." We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less or (ii) contracts for which we recognize revenue at the amount for which we have the right to invoice for services performed. For certain of our contracts that have an original expected length of one year or less, we use the practical expedient applicable to such contracts and do not consider the time value of money.

We have entered into international agreements to assist a third party in the planning, design, development and operation of a Six Flags-branded park outside of North America. These agreements consist of a brand licensing agreement, project services agreement, and management services agreement. We treat these agreements as 1 contract because they were negotiated with a single commercial objective. We have identified 3 distinct promises within the agreement with the third-party partner as brand licensing, project services and management services. Each of these

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promises is its own performance obligation and distinct, as the third party could benefit from each service on its own with other readily available resources, and each service is separately identifiable from other services in the context of the contract. We recognize revenue under our international agreements over the relevant service period of each performance obligation based on its relative stand-alone selling price, as determined by our best estimate of selling price. We review the service period of each performance obligation on an ongoing basis and revise it as necessary throughout the year. Revisions to the relevant service periods of the performance obligations may result in revisions to revenue in future periods and are recognized in the period in which the change is identified.

~~j. Leases~~

We or certain of our subsidiaries are a lessee in various noncancelable operating and finance (formerly “capital”) leases, primarily for operating rights to amusement parks, land, office space, warehouses, office equipment and machinery. We account for leases in accordance with the Financial Accounting Standards Board (“FASB”) ASC 842, ~~Leases~~ (“Topic 842”); see below for additional information on recently adopted accounting pronouncements and Note 7 for additional information regarding our leases. We determine if an arrangement is or contains a lease at contract inception and recognize a right-of-use ("ROU") asset and lease liability at the lease commencement date.

For both our operating and finance leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. Key estimates and judgments include how we determine (i) the discount rate used to discount the unpaid lease payments to present value, (ii) the lease term and (iii) the lease payments. Topic 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate ("IBR"). Generally, we cannot determine the interest rate implicit in the lease and therefore we use the IBR as a discount rate for our leases. The IBR reflects the rate of interest we would pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The lease term for all of our leases includes the noncancelable period of the lease plus any additional periods covered by an option to extend the lease that are reasonably certain to be executed by us. Lease payments included in the measurement of the lease liability comprise fixed payments owed over the lease term, variable lease payments that depend on an index or rate, and the exercise price of an option to purchase the underlying asset if it is reasonably certain that we will exercise the option.

The ROU asset is initially measured at cost, which comprises the initial amount of lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred, less any lease incentives received. For our operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, and adjusted for any prepaid or accrued lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the term of the operating lease.

Variable lease payments associated with our leases are recognized upon the occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed. Variable lease payments for operating leases are presented as operating expense in our condensed consolidated statements of operations in the same line item as expense arising from fixed lease payments. Property taxes and insurance paid on behalf of our lessors is included within variable lease payments.

Operating lease ROU assets net of accumulated amortization are presented as "Right-of-use operating leases, net" on the condensed consolidated balance sheets. The current portion of operating lease liabilities is presented as "Short-term lease liabilities" and the long-term portion is presented separately as "Long-term lease liabilities" on the condensed consolidated balance sheets.

Finance lease ROU assets are presented within “Property and equipment, at cost” and the related lease amortization within “Accumulated depreciation” on our condensed consolidated balance sheets. The current portion of the finance lease liabilities is presented as “Short-term lease liabilities” and the long-term portion is presented separately as “Long-term lease liabilities” on our condensed consolidated balance sheets.

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We have elected not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. We recognize the lease payments associated with short-term leases as an expense on a straight-line basis over the lease term. Variable lease payments associated with short-term leases are recognized and presented in the same manner as for all other leases.

The ROU assets for operating leases may be periodically reduced by impairment losses. We use the long-lived assets impairment guidance to determine whether an ROU asset is impaired and if so, the amount of the impairment loss to recognize. We monitor for events or changes in circumstances that require a reassessment of one of our leases. When a reassessment results in the remeasurement of a lease liability, an adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in our condensed consolidated statements of operations.

k.g. Accounts Receivable, Net

Accounts receivable are reported at net realizable value and consist primarily of amounts due from guests for the sale of group outings and multi-use admission products, such as season passes and ~~the membership program.~~memberships. We are not exposed to a significant concentration of credit risk; however, based on the age of the receivables, our historical experience and other factors and assumptions we believe to be customary and reasonable, we record an allowance for doubtful accounts. As of April 3, 2022, January 2, 2022 and April 4, 2021, ~~December 31, 2020 and March 31, 2020,~~ we have recorded an allowance for doubtful accounts of ~~$8.5~~$5.7 million, ~~$3.1~~$13.8 million and ~~$7.6~~$8.5 million, respectively, which is primarily comprised of estimated payment defaults under our membership program. To the extent that payments under our membership program have not been recognized in revenue, the allowance for doubtful accounts recorded against our membership program is offset with a corresponding reduction in deferred revenue.

l.h. Recently Adopted Accounting Pronouncements

~~In December 2019, FASB issued ASU 2019-12,~~ ~~Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“Update 2019-12”),~~ which removes certain exceptions for investments, intraperiod allocations and interim tax calculations and adds guidance to reduce complexity in accounting for income taxes. Update 2019-12 is effective for annual periods beginning after December 15, 2020, with early adoption permitted. The various amendments in Update 2019-12 are applied on a retrospective basis, modified retrospective basis and prospective basis, depending on the amendment. Our adoption of Update 2019-12 did not have a material impact on our condensed consolidated financial statements and related disclosures.

~~m. Recent Accounting Pronouncements Not Yet Adopted~~

In August 2018, FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans: (“Update 2018-14”), which modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. Update 2018-14 is effective for annual periods beginning after January 1, 2021, with early adoption permitted. Adoption is required to be applied on a retrospective basis to all periods presented. ~~We are in the process~~Our adoption of ~~evaluating the~~ASU 2018-14 did not have a material impact ~~of this amendment~~ on our condensed consolidated financial ~~statements; however, we~~statements and related disclosures.

i. Recent Accounting Pronouncements Not Yet Adopted

In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“Update 2020-04”), which provides optional expedients and exceptions for applying U.S. GAAP principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in Update 2020-04 apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected optional expedients for and that are retained through the end of the hedging relationship. The provisions in Update 2020-04 are effective upon issuance and can be applied prospectively through December 31, 2022. Interest on the Second Amended and Restated Credit Facility accrues at an annual rate based on LIBOR. We do not expect Update 2020-04 to have a material ~~impact.~~effect on our condensed consolidated financial statements.

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2. Revenue

Revenues are recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense.

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The following tables present our revenues disaggregated by contract duration for the three months ended April 3, 2022 and April 4, 2021, ~~and March 31, 2020,~~ respectively. Long-term and short-term contracts consist of our contracts with customers with terms greater than one year and less than or equal to one year, respectively. Sales and usage-based taxes are excluded from revenues.


	Three Months Ended April 4, 2021								Three Months Ended April 3, 2022
					Sponsorship,								Sponsorship,
			Park Food,		International						Park Food,		International
			Merchandise		Agreements and						Merchandise		Agreements and
(Amounts in thousands)	Park Admissions		and Other		Accommodations		Consolidated		Park Admissions		and Other		Accommodations		Consolidated
Long-term contracts	$	7,010	$	997	$	4,163	$	12,170	$	3,951	$	782	$	6,528	$	11,261
Short-term contracts and other^(a)		37,324		30,227		2,303		69,854		69,036		53,487		4,323		126,846
Total revenues	$	44,334	$	31,224	$	6,466	$	82,024	$	72,987	$	54,269	$	10,851	$	138,107


	Three Months Ended March 31, 2020								Three Months Ended April 4, 2021
					Sponsorship,								Sponsorship,
			Park Food,		International						Park Food,		International
			Merchandise		Agreements and						Merchandise		Agreements and
(Amounts in thousands)	Park Admissions		and Other		Accommodations		Consolidated		Park Admissions		and Other		Accommodations		Consolidated
Long-term contracts	$	5,762	$	820	$	9,270	$	15,852	$	7,010	$	997	$	4,163	$	12,170
Short-term contracts and other ^(a)		54,044		28,986		3,621		86,651		37,324		30,227		2,303		69,854
Total revenues	$	59,806	$	29,806	$	12,891	$	102,503	$	44,334	$	31,224	$	6,466	$	82,024

(a)	Other revenues primarily include sales of single-use tickets and short-term transactional sales for which we have the right to invoice.

Long-term Contracts

Our long-term contracts consist of season passes purchased by customers in the year preceding the operating season to which they relate, sponsorship contracts and international agreements with third parties. Due to the COVID-19 pandemic, we have extended all 2020 season passes through the 2021 season. Due to the extension of term on the 2020 season passes, all 2020 season passes have a length greater than one year and are thus considered long-term contracts. We earn season pass revenue when our customers purchase a season pass for a fixed fee, which entitles the customer to visit our parks, including certain waterparks, throughout the duration of the parks’ operating season. We earn sponsorship revenue from separately-priced contracts with third parties pursuant to which we sell and advertise the third party’s products within the parks in exchange for consideration. Advertisements may include, but are not limited to, banners, signs, radio ads, association with certain events, sponsorship of rides within our parks and retail promotions. We earn international agreements revenue pursuant to arrangements in which we assist in the development and management of Six Flags-branded parks outside of North America. Within our international agreements, we have identified 3 distinct performance obligations as brand licensing, project services and management services. We do not consider revenue recognized for the performance obligations related to our international agreements to be significant, neither individually nor in the aggregate, to any period presented.

~~The transaction price for our~~At January 2, 2022, $58.7 million of unearned revenue associated with outstanding long-term contracts is explicitly stated within the contracts. Our sponsorship contracts and international agreements may include estimated variable consideration such as penalties for delay in performance of contract terms, and certain volume-based discounts and rebates. We do not believe there will be significant changes to our estimates of variable consideration. Our brand licensing and management services performance agreements include royalty payments and management fees, respectively, based on gross sales from Six Flags-branded parks once opened. We have elected to apply the sales-based royalty exemption to the brand licensing performance obligation, and accordingly, do not estimate revenue attributable to the gross sales-based royalty. We have also elected to apply the direct allocation exemption to the management services performance obligation, and accordingly, do not estimate revenue attributable to the gross sales-based management fee.

We recognize season pass revenue in "Park admissions" over the estimated redemption rate, as we believe this appropriately depicts the transfer of service to our customers. We estimate the redemption rate based on historical experience and other factors and assumptions that we believe to be customary and reasonable. We review the estimated redemption rate regularly, on an ongoing basis, and revise it as necessary throughout the year. Amounts received for

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~~multi-use admissions in excess of redemptions are recognized~~was reported in "Deferred ~~revenue.~~revenue," ~~We recognize sponsorship and international agreements~~of which $12.2 million was recognized as revenue ~~over~~for long-term contracts during the ~~term~~three months ended April 3, 2022. As of April 3, 2022, the ~~agreements using the passage~~total unearned amount of ~~time as a measure of complete satisfaction of the~~revenue for remaining long-term contract performance obligations ~~in "Sponsorship, international agreements and accommodations." Amounts received for unsatisfied sponsorship and international agreements performance obligations are recognized in "Deferred revenue."~~

was $59.0 million. At January 1, 2021, $77.6 million of unearned revenue associated with outstanding long-term contracts was reported in "Deferred revenue," of which $8.4 million was recognized as revenue for long-term contracts during the three months ended April 4, 2021. As of April 4, 2021, the total unearned amount of revenue for remaining long-term contract performance obligations was $86.7 million. ~~At January 1, 2020, $85.1 million~~

Table of unearned revenue associated with outstanding long-term contracts was reported in "Deferred revenue," of which $10.2 million was recognized as revenue for long-term contracts during the three months ended March 31, 2020. As of March 31, 2020, the total unearned amount of revenue for remaining long-term contract performance obligations was $70.6 million.Contents

As of April ~~4, 2021,~~3, 2022, we expect to recognize estimated revenue for partially or wholly unsatisfied performance obligations on long-term contracts of approximately ~~$100.8~~$75.9 million in the remainder of ~~2021, $18.5 million in~~ 2022, ~~$8.9~~$8.7 million in 2023, ~~$2.3~~$1.9 million in 2024, ~~and $0.8~~$0.1 million in 2025, and $0.2 million in 2026 and thereafter.

Short-term Contracts and Other

Our short-term contracts consist primarily of season passes and memberships with customers, certain sponsorship contracts and international agreements with third parties. We earn revenue from a customer’s purchase of our season pass and membership products, which entitles the customer to visit our parks, including certain waterparks, throughout the duration of the parks’ operating season for a fixed fee. ~~Some membership products include other benefits and discounts for our guests during their visits.~~ We earn sponsorship and international agreements revenue from contracts with third parties, pursuant to which we sell and advertise the third party’s products within our parks on a short-term basis that generally coincides with our annual operating season, and pursuant to certain activities in connection with our international agreements. The transaction price for our short-term contracts is explicitly stated within the contracts.

We generally recognize revenue from short-term contracts over the passage of time, with the exception of season pass and membership revenues. We recognize season pass and membership revenues in "Park admissions" over the estimated redemption rate, as we believe this appropriately depicts the transfer of service to our customers. We estimate the redemption rate based on historical experience and other factors and assumptions we believe to be customary and reasonable. We review the estimated redemption rate regularly and on an ongoing basis and revise it as necessary throughout the year. Amounts received for multi-use admissions in excess of redemptions are recognized in "Deferred ~~revenue."~~revenue".

Other revenues consist primarily of revenues from single-use tickets for entrance to our parks, in-park services (such as the sale of food and beverages, merchandise, games and attractions, standalone parking sales and other services inside our parks), accommodations revenue, and other miscellaneous products and services. Due to the short-term transactional nature of such purchases, we apply the practical expedient to recognize revenue for single-use ticket sales, in-park services, accommodations, and other miscellaneous services and goods for which we have the right to invoice.

~~Arrangements with Multiple Performance Obligations~~

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3. Long-Term Indebtedness

Credit Facility

As of April ~~4, 2021,~~3, 2022, our credit facility consisted of a $481.0 million revolving credit loan facility (the “Second Amended and Restated Revolving Loan”) and a $479.0 million Tranche B Term Loan facility (the “Second Amended and Restated Term Loan B”) pursuant to the amended and restated credit facility that we entered into in 2019 (the “Second Amended and Restated Credit Facility”) and further amended in both April 2020 and August ~~2020 as discussed below.~~

On October 18, 2019, we entered into an amendment to the Second Amended and Restated Credit Facility which reduced the overall borrowing rate on the Second Amended and Restated Term Loan B by 25 basis points by reducing the applicable margin from LIBOR plus 2.00% to LIBOR plus 1.75%. We recognized a loss on debt extinguishment of $0.3 million related to the transaction.

On April 8, 2020, certain of our revolving credit lenders agreed to provide an incremental $131.0 million of revolving credit commitments to the Second Amended and Restated Revolving Loan, increasing the facility from $350.0 million to $481.0 million.

On April 15, 2020, we received sufficient consents from the continuing lenders under the Second Amended and Restated Credit Facility (the “Credit Agreement Amendment”) substantially concurrently with the closing of the $725 million 2025 Notes discussed below which, among other things, (i) permitted the issuance of the 2025 Notes, including specifically, permitted the 2025 Notes to mature inside the Second Amended and Restated Term Loan B, (ii) suspended the testing of the senior secured leverage ratio financial maintenance covenant in the Second Amended and Restated Credit Facility through the end of 2020, (iii) re-established the financial maintenance covenant thereafter (provided that for the first, second, and third quarters of 2021 that such covenant is tested, we will be permitted to use the quarterly Borrower Consolidated Adjusted EBITDA (as defined in the Second Amended and Restated Credit Facility) from the second, third and fourth quarters of 2019 in lieu of the actual Borrower Consolidated Adjusted EBITDA for the corresponding quarters of 2020) and (iv) added a minimum liquidity covenant that will apply from the date of the Credit Agreement Amendment through December 31, 2021. The Credit Agreement Amendment became effective on April 22, 2020, after giving effect to the repayment of a portion of the Second Amended and Restated Term Loan B with a portion of the proceeds from the 2025 Notes.

On April 22, 2020, SFTP completed the private sale of $725.0 million in aggregate principal amount of 7.00% senior secured notes due 2025. The net proceeds from this offering were used to repay the outstanding balance of the Second Amended and Restated Revolving Loan and $315.0 million of the Second Amended and Restated Term Loan B, and for general corporate and working capital purposes, including expenses relating to the offering. We recognized a loss on debt extinguishment of $5.1 million related to the transaction.

On August 26, 2020, we entered into an amendment to the Second Amended and Restated Credit Facility which, among other things, (i) extended the previously effectuated suspension of the senior secured leverage ratio financial maintenance covenant in the Second Amended and Restated Credit Facility through the end of 2021, (ii) re-established the senior secured leverage ratio financial maintenance covenant thereafter (provided that for each quarter in 2022 (other than the fourth quarter) that the financial maintenance covenant is tested, SFTP will be permitted to use its quarterly Borrower Consolidated Adjusted EBITDA (as defined in the credit agreement governing the Second Amended and Restated Credit Facility) from the second, third, and fourth quarters of 2019 in lieu of the actual Borrower Consolidated Adjusted EBITDA for the corresponding quarters of 2021), (iii) reduced the commitment fee on the revolving credit facility, and (iv) extended the minimum liquidity covenant that will apply through December 31, 2022. The extension of the modifications to the financial covenant and other provisions in the Second Amended and Restated Credit Facility pursuant to this amendment will be in effect from the date of the amendment until the earlier of the delivery of the compliance certificate for the fourth quarter of 2022 and the date on which SFTP, in its sole discretion, elects to calculate its compliance with the financial maintenance covenant by using its actual Borrower Consolidated Adjusted EBITDA instead of the 2019 figures as outlined above. In addition, all of SFTP’s existing incremental revolving credit

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~~lenders agreed to extend the incremental $131 million revolving credit commitments to the Second Amended and Restated Revolving Loan by one year to December 31, 2022.~~2020.

As of April 3, 2022, January 2, 2022 and April 4, 2021, ~~and December 31, 2020,~~ we had 0 amounts outstanding under the Second Amended and Restated Revolving Loan (excluding amounts reserved for letters of credit in the amount of $21.0 million, $20.2 million and ~~$21.0~~$20.2 million, respectively)~~. As of March 31, 2020, we had $40.0 million outstanding under the Second Amended and Restated Revolving Loan (excluding amounts reserved for letters of credit in the amount of $21.3 million)~~. Interest on the Second Amended and Restated Revolving Loan accrues at an annual rate of LIBOR plus an applicable margin with an unused commitment fee based on our senior secured leverage ratio. As of April ~~4, 2021,~~3, 2022, the Second Amended and Restated Revolving Loan unused commitment fee was 0.625%. The ~~principal amount of the~~ Second Amended and Restated Revolving Loan ~~is due and payable~~will mature on April 17, 2024.

As of April 3, 2022, January 2, 2022 and April 4, 2021, ~~and December 31, 2020,~~ $479.0 ~~million was outstanding under the Second Amended and Restated Term Loan B, respectively. As of March 31, 2020, $794.0~~ million was outstanding under the Second Amended and Restated Term Loan B. Interest on the Second Amended and Restated Term Loan B accrues at an annual rate of LIBOR plus 1.75%. In June 2019, we entered into ~~the June~~ 3 separate interest rate swap agreements with a notional amount of $300.0 million (the “June 2019 Swap ~~Agreements~~Agreements”) and, in August 2019, we entered into 2 separate interest rate swap agreements with a notional amount of $400.0 million (the “August 2019 Swap Agreements”). These swaps were entered into to mitigate the risk of an increase in the LIBOR interest rate in effect on the Second Amended and Restated Term Loan B. In August 2019, we entered into the August 2019 Swap Agreements to further mitigate the risk of an increase in the LIBOR interest rate in effect on the Second Amended and Restated Term Loan B. As of April 4, 2021, the applicable interest rate on the Second Amended and Restated Term Loan B ~~was 3.00%. All remaining outstanding principal of~~by exchanging the ~~Second Amended and Restated Term Loan B is due and payable on April 17, 2026.~~

~~Amounts outstanding under~~floating LIBOR rate for a negotiated fixed rate. On March 24, 2022, we terminated the Second Amended and Restated Credit Facility are guaranteed by Holdings, Six Flags Operations Inc. ("SFO") and certain of the domestic subsidiaries of SFTP (collectively, the "Loan Parties"). The Second Amended and Restated Credit Facility is secured by a first priority security interest in substantially all of the assets of the Loan Parties. The Second Amended and Restated Credit Facility agreement contains certain representations, warranties, affirmative covenants and a financial covenant (specifically, a maximum senior secured net leverage maintenance covenant). In addition, the Second Amended and Restated Credit Facility agreement contains restrictive covenants that, subject to certain exceptions, limit or restrict, among other things, the incurrence of indebtedness and liens, fundamental changes, restricted payments, investments, prepayments of certain indebtedness, transactions with affiliates, changes in fiscal periods, modifications of certain documents, and certain hedging agreements, subject, in each case, to certain carve-outs.

~~2024 Notes, 2025 Notes and 2027 Notes~~

On June 16, 2016, Holdings issued $300.0 million of 4.875% senior unsecured notes due July 31, 2024 (the "2024 Notes"). We capitalized $4.7 million of debt issuance costs directly associated with the issuance of the 2024 Notes. We used approximately $150.0 million of the proceeds from the issuance of the 2024 Notes to reduce our borrowings under the 2015 Term Loan B. We used the remaining net proceeds of the sale of the 2024 Notes for general corporate and working capital purposes, which primarily included repurchases of our common stock.

On April 13, 2017, Holdings issued an additional $700.0 million of 4.875% Senior Notes due July 31, 2024 (the "2024 Notes Add-on"). We capitalized $3.9 million of debt issuance costs directly associated with the issuance of the 2024 Notes Add-on. Interest payments of $24.4 million for the 2024 Notes and the 2024 Notes Add-on are due semi-annually on January 31 and July 31 of each year, with the exception of the first payment for the 2024 Notes on January 31, 2017, which was $9.1 million.

On April 13, 2017, Holdings issued $500.0 million of 5.50% Senior Notes due April 15, 2027 (the "2027 Notes"). We capitalized $2.6 million of debt issuance costs directly associated with the issuance of the 2027 Notes.

During March of 2020, we prepaid $50.5 million of the outstanding 2024 Notes principal reducing the outstanding amount to $949.5 million. We recognized a loss on debt extinguishment of $1.0 million. Interest payments of $23.1 million for the 2024 Notes and the 2024 Notes Add-on are due semi-annually on January 31 and July 31 of each year.August 2019

1912

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OnSwap Agreements. The June 2019 Swap Agreements expire in June 2023. The Second Amended and Restated Term Loan B now consists of only floating rate debt. As of April ~~22,~~3, 2022, the applicable interest rate on the Second Amended and Restated Term Loan B was 2.21%. The Second Amended and Restated Term Loan B will mature on April 17, 2026.

2024 Notes, 2025 Notes and 2027 Notes

In June 2016, Holdings issued $300.0 million of 4.875% senior unsecured notes due 2024 and, in April 2017, issued an additional $700.0 million of senior unsecured notes due 2024 (together, the “2024 Notes”). In April 2017, Holdings issued $500.0 million of 5.50% senior notes due 2027 (the "2027 Notes"). In April 2020, SFTP ~~completed the private sale of~~issued $725.0 million ~~in aggregate principal amount~~ of 7.00% senior secured notes due 2025 (the “2025 Notes”). ~~The net proceeds from this offering were used to repay the outstanding balance~~As of ~~the Second Amended and Restated Revolving Loan and $315.0~~October 3, 2021, $949.5 million of the ~~Second Amended and Restated Term Loan B and for general corporate and working capital purposes, including expenses relating to the offering. In conjunction with the $315.0~~2024 Notes, $725.0 million ~~repayment~~ of the ~~Second Amended~~2025 Notes, and Restated Term Loan B, certain of our hedging instruments that were entered into to mitigate the risk of an increase in the LIBOR interest rate and were de-designated. Consistent with policy, we hold and issue derivative instruments for risk management purposes only and do not utilize derivative instruments for trading or speculative purposes. Accordingly, in April 2020 we entered into counter-agreements designed to economically offset the impact$500.0 million of the ~~de-designated swap agreements.~~2027 Notes, were issued and outstanding. Interest payments of $23.1 million for the 2024 Notes are due semi-annually on January 31 and July 31 of each year. Interest payments of $25.4 million for the 2025 Notes are due semi-annually on January 1 and July 1 each year. Interest payments of ~~each year, with the exception of January 1, 2021, which included the interest from April 22, 2020 through July 1, 2020 and totaled $35.1 million.~~

~~The 2024 Notes, the 2024 Notes Add-on, the 2025 Notes and~~$13.8 million for the 2027 Notes are ~~guaranteed by the Loan Parties. The 2024 Notes, the 2024 Notes Add-on, the 2025 Notes~~due semi-annually on April 15 and ~~the 2027 Notes contain restrictive covenants that, subject to certain exceptions, limit or restrict, among other things, the ability~~October 15 of the Loan Parties to incur additional indebtedness, create liens, engage in mergers, consolidations and other fundamental changes, make investments, engage in transactions with affiliates, pay dividends and repurchase capital stock. The 2024 Notes, the 2024 Notes Add-on, 2025 Notes and the 2027 Notes contain certain events of default, including payment defaults, breaches of covenants and representations, cross defaults to other material indebtedness, judgment, and changes of control and bankruptcy events of default.each year.

Long-Term Indebtedness Summary

As of April 3, 2022, January 2, 2022 and April 4, 2021, ~~December 31, 2020 and March 31, 2020,~~the principal balance of our long-term debt consisted of the following:


	As of						As of
(Amounts in thousands)	April 4, 2021		December 31, 2020		March 31, 2020		April 3, 2022		January 2, 2022		April 4, 2021
Second Amended and Restated Term Loan B	$	479,000	$	479,000	$	794,000	$	479,000	$	479,000	$	479,000
Second Amended and Restated Revolving Loan		—		—		40,000
2024 Notes		949,490		949,490		949,490		949,490		949,490		949,490
2025 Notes		725,000		725,000		—		725,000		725,000		725,000
2027 Notes		500,000		500,000		500,000		500,000		500,000		500,000
Net discount		(4,080)		(4,357)		(6,002)		(2,972)		(3,249)		(4,080)
Deferred financing costs		(25,049)		(26,492)		(13,694)		(19,272)		(20,717)		(25,049)
Total debt	$	2,624,361	$	2,622,641	$	2,263,794
Less current portion of long-term debt		—		—		(8,000)
Less short-term borrowings		—		—		(40,000)
Total long-term debt	$	2,624,361	$	2,622,641	$	2,215,794	$	2,631,246	$	2,629,524	$	2,624,361

Fair-Value of Long-Term Indebtedness

As of April 3, 2022, January 2, 2022 and April 4, 2021, ~~December 31, 2020 and March 31, 2020,~~ the fair value of our long-term debt was ~~$2,700.5~~$2,660.5 million, ~~$2,693.3~~$2,703.5 million and ~~$1,952.4~~$2,700.5 million, respectively.

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~~4. Accumulated Other Comprehensive Loss~~

~~Changes in the composition of Accumulated Other Comprehensive Loss ("AOCI") during the three months ended April 4, 2021, were as follows:~~

Accumulated

Cumulative

Other

Translation

Cash Flow

Defined Benefit

Income

Comprehensive
(Amounts in thousands)

Adjustment

Hedges

Plans

Taxes

Loss
Balances at December 31, 2020

$
(27,412)

$
(16,819)

$
(57,642)

$
5,369

$
(96,504)
Net current period change

(2,402)

3,883

—

(546)

935
Amounts reclassified from AOCI

—

1,361

340

(427)

1,274
Balances at April 4,2021

$
(29,814)

$
(11,575)

$
(57,302)

$
4,396

$
(94,295)

The change in “Cumulative Translation Adjustment” was caused by the weakening of the United States Dollar against the Mexican Peso and the Canadian Dollar during the three months ended April 4, 2021. Our assets for our parks that we operate in Mexico and Canada are recorded in their local currencies and translated into United States Dollars on our condensed consolidated balance sheet.

~~The change in “Cash Flow Hedges” was caused by declining interest rates and continued projections of low interest rates in future interest rate forward curves.~~

~~The Company had the following reclassifications out of AOCI during the three months ended April 4, 2021 and March 31, 2020:~~

Amount of Reclassification from AOCI

Three Months Ended
Component of AOCI

Location of Reclassification into (Loss) Income

April 4, 2021

March 31, 2020

Amortization of loss on interest rate hedge

Interest Expense

$
1,361

$
(120)

Income tax benefit

(342)

30

Net of tax

$
1,019

$
(90)

Amortization of deferred actuarial loss and prior service cost

Operating expenses

$
340

$
257

Income tax expense

(85)

(64)

Net of tax

$
255

$
193

Total reclassifications



$
1,274

$
103

~~5. Derivative Financial Instruments~~

In June 2019, we entered into the June 2019 Swap Agreements with an aggregate notional amount of $300.0 million to mitigate the risk of an increase in the LIBOR interest rate in effect on the Second Amended and Restated Term Loan B. The term of the June 2019 Swap Agreements began in June 2019 and expires in June 2023. Upon execution, we designated and documented the June 2019 Swap Agreements as cash flow hedges. The June 2019 Swap Agreements serve as economic hedges and provide protection against rising interest rates.

In August 2019, we entered into the August 2019 Swap Agreements with an aggregate notional amount of $400.0 million to mitigate the risk of an increase in the LIBOR interest rate in effect on the Second Amended and Restated Term Loan B. The term of the August 2019 Swap Agreements began in August 2019 and expires in August 2024. Upon execution, we designated and documented the August 2019 Swap Agreements as cash flow hedges. The August 2019 Swap Agreements serve as economic hedges and provide protection against rising interest rates.

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In March 2020, we executed a strategy common known as a “blend and extend” on $100.0 million of the June 2019 Swap Agreements that extended the length of one of the swap agreements through April 2026. We extended the existing pay-fixed swap rate over a longer period than its original term at a lower interest rate, while maintaining the same overall value of the swap. The remaining $200.0 million of the June 2019 Swap Agreements did not change.

On April 22, 2020, we repaid $315.0 million of the Second Amended and Restated Term Loan B. In conjunction, the June 2019 Swap Agreements and the Modified June 2019 Swap Agreement were de-designated, since the hedged interest was no longer likely to occur due to the repayment of the debt. As a result, $14.9 million was reclassified from accumulated other comprehensive loss to interest expense in the condensed consolidated statement of operations. Consistent with company policy, we hold and issue derivative instruments for risk management purposes only and do not utilize derivative instruments for trading or speculative purposes. Accordingly, in April 2020 we entered into $300.0 million of notional amount counter-agreements (the “April 2020 Counter-agreements”) designed to economically offset the impact of the de-designated swap agreements.

By utilizing a derivative instrument to hedge our exposure to LIBOR rate changes, we are exposed to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. To mitigate this risk, hedging instruments are placed with counterparties that we believe pose minimal credit risk. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates, commodity prices or currency exchange rates. We manage the market risk associated with derivative instruments by establishing and monitoring parameters that limit the types and degree of market risk that we may undertake. We hold and issue derivative instruments for risk management purposes only and do not utilize derivatives for trading or speculative purposes.

We record derivative instruments at fair value on our unaudited condensed consolidated balance sheets. When in qualifying relationships, the gains and losses on cash flow designated derivatives are deferred in AOCI and are reclassified to interest expense when the forecasted transaction takes place. The fair value of derivatives that are not designated as hedging instruments are recorded directly to “interest expense, net”. Derivative assets and derivative liabilities that have maturity dates equal to or less than twelve months from the balance sheet date are included in prepaid expenses and other current assets and other accrued liabilities, respectively. Derivative assets and derivative liabilities that have maturity dates greater than twelve months from the balance sheet date are included in “Deposits and other assets” and “Other long-term liabilities”, respectively.

The table below presents the fair value of our derivative financial instruments in an asset position as well as their classification on the unaudited condensed consolidated balance sheets as of April 4, 2021, December 31, 2020 and March 31, 2020:

(Amounts in thousands)

Asset Derivatives

April 4, 2021

December 31, 2020

March 31, 2020


Balance Sheet Classifications

Fair Value

Fair Value

Fair Value
Derivatives not designated as hedging instruments under ASC 815

Interest rate contracts

Other current assets

403

877

—
Interest rate contracts

Other long-term liabilities

(157)

585

—
Total derivatives not designated as hedging instruments under ASC 815

$
246

$
1,462

$
—

Total asset derivatives

$
246

$
1,462

$
—

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~~The table below presents~~4. Accumulated Other Comprehensive Loss

Changes in the ~~fair value~~composition of ~~our derivative financial instruments in a liability position~~Accumulated Other Comprehensive Loss ("AOCI") during the three months ended April 3, 2022, were as ~~well as their classification on the unaudited condensed consolidated balance sheets as of April 4, 2021, December 31, 2020 and March 31, 2020:~~follows:

(Amounts in thousands)

Liability Derivatives

April 4, 2021

December 31, 2020

March 31, 2020


Balance Sheet Classifications

Fair Value

Fair Value

Fair Value
Derivatives designated as hedging instruments under ASC 815

Interest rate contracts

Other accrued liabilities

(5,139)

(5,251)

(7,689)
Interest rate contracts

Other long-term liabilities

(6,495)

(11,633)

(22,795)
Total derivatives designated as hedging instruments under ASC 815

$
(11,634)

$
(16,884)

$
(30,484)

Derivatives not designated as hedging instruments under ASC 815

Interest rate contracts

Other current assets

$
398

$
—

$
—
Interest rate contracts

Other accrued liabilities

(4,797)

(4,875)

—
Interest rate contracts

Other long-term liabilities

(7,353)

(9,032)

—
Total derivatives not designated as hedging instruments under ASC 815

$
(11,752)

$
(13,907)

$
—

Total liability derivatives

$
(23,386)

$
(30,791)

$
(30,484)


									Accumulated
	Cumulative								Other
	Translation		Cash Flow		Defined Benefit		Income		Comprehensive
(Amounts in thousands)	Adjustment		Hedges		Plans		Taxes		Loss
Balances at January 2, 2022	$	(31,970)	$	(4,985)	$	(44,093)	$	(139)	$	(81,187)
Net current period change		(5,171)		11,540		—		(1,812)		4,557
Amounts reclassified from AOCI		—		1,117		229		(338)		1,008
Balances at April 3, 2022	$	(37,141)	$	7,672	$	(43,864)	$	(2,289)	$	(75,622)

Reclassifications out of AOCI during the three months ended April 3, 2022 and April 4, 2021:


		Amount of Reclassification from AOCI
		Year Ended
Component of AOCI	Location of Reclassification into (Loss) Income	April 3, 2022		April 4, 2021

Amortization of loss on interest rate hedge	Interest Expense	$	1,117	$	1,361
	Income tax benefit		(281)		(342)
	Net of tax	$	836	$	1,019

Amortization of deferred actuarial loss and prior service cost	Operating expenses	$	229	$	340
	Income tax expense		(57)		(85)
	Net of tax	$	172	$	255

Total reclassifications		$	1,008	$	1,274

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5. Derivative Financial Instruments

We hold interest rate swap agreements that mitigate the risk of an increase in the LIBOR rate in effect on the Second Amended and Restated Term Loan B. We enter into derivative contracts for risk management purposes only and do not utilize derivative instruments for trading or speculative purposes. As such, in conjunction with the repayment of a portion of the Second Amended and Restated Term Loan B in April 2020, certain of our interest rate swap agreements were de-designated as the hedged interest was no longer probable to occur.

Derivative assets and derivative liabilities that have maturity dates equal to or less than twelve months from the balance sheet date are included in “Prepaid expenses and other current assets” and “Other accrued liabilities,” respectively. Derivative assets and derivative liabilities that have maturity dates greater than twelve months from the balance sheet date are included in “Deposits and other assets” and “Other long-term liabilities,” respectively.

On March 24, 2022, we terminated the August 2019 Swap Agreements for net cash proceeds of $7.4 million. The swap agreements were used as economic hedges against rising interest rates and had been designated as cash flow hedges prior to termination. We recorded the settlement in accumulated other comprehensive income in the amount of $7.7 million which will be amortized through September 2024 until the maturity of the Second Amended and Restated Term Loan B.

Derivative assets recorded at fair value in our condensed consolidated balance sheets as of April 3, 2022, January 2, 2022 and April 4, 2021, ~~December 31, 2020 and March 31, 2020,~~ respectively, consisted of the following:


	Derivative Assets						Derivative Assets
(Amounts in thousands)	April 4, 2021		December 31, 2020		March 31, 2020		April 3, 2022		January 2, 2022		April 4, 2021
Derivatives Designated as Cash Flow Hedges
Interest Rate Swap Agreements — Current	$	—	$	—	$	—
Interest Rate Swap Agreements — Noncurrent		—		—		—
Derivatives Not Designated as Hedging Instruments
Interest Rate Swap Agreements — Current		801		877		—
Interest Rate Swap Agreements — Noncurrent		—		585		—
Interest Rate Swap Agreements — other current assets								—		—		801
Interest Rate Swap Agreements — other non-current assets								3,996		—		—
	$	801	$	1,462	$	—	$	3,996	$	—	$	801

Derivative liabilities recorded at fair value in our condensed consolidated balance sheets as of April 3, 2022, January 2, 2022 and April 4, 2021, ~~December 31, 2020 and March 31, 2020,~~ respectively, consisted of the following:


	Derivative Liabilities						Derivative Liabilities
(Amounts in thousands)	April 4, 2021		December 31, 2020		March 31, 2020		April 3, 2022		January 2, 2022		April 4, 2021
Derivatives Designated as Cash Flow Hedges
Interest Rate Swap Agreements — Current	$	(5,139)	$	(5,251)	$	(7,689)
Interest Rate Swap Agreements — Noncurrent		(6,495)		(11,633)		(22,795)
Interest rate swap agreements — other accrued liabilities							$	—	$	(3,986)	$	(5,139)
Interest rate swap agreements — other long-term liabilities								—		(1,046)		(6,495)
Derivatives Not Designated as Hedging Instruments
Interest Rate Swap Agreements — Current		(4,797)		(4,875)		—
Interest Rate Swap Agreements — Noncurrent		(7,510)		(9,032)		—
Interest rate swap agreements — other accrued liabilities								(4,250)		(4,012)		(4,797)
Interest rate swap agreements — other long-term liabilities								(7,512)		(4,581)		(7,510)
	$	(23,941)	$	(30,791)	$	(30,484)	$	(11,762)	$	(13,625)	$	(23,941)

Losses before taxes on derivatives not designated as a cash flow hedge of $0.1 million were presented in “Interest expense” in the condensed consolidated statement of operations for the three months ended April ~~4, 2021.~~3, 2022.

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Gains and losses before taxes on derivatives designated as hedging instruments were presented in “Interest expense” in the condensed consolidated statements of operations for the three months ended April 3, 2022 and April 4, ~~2021 and March 31, 2020:~~2021:




	Gain (Loss)				(Loss) Gain Reclassified from				Gain (Loss)				(Loss) Gain Reclassified from
	Recognized in AOCL				AOCL into Operations				Recognized in AOCL				AOCL into Operations
(Amounts in thousands)	2021		2020		2021		2020		2022		2021		2022		2021
Interest Rate Swap Agreements	$	3,883	$	(28,794)	$	(1,361)	$	120	$	11,540	$	3,883	$	(1,117)	$	(1,361)
Total	$	3,883	$	(28,794)	$	(1,361)	$	120	$	11,540	$	3,883	$	(1,117)	$	(1,361)

As of April ~~4, 2021,~~3, 2022, we expect to reclassify net losses of ~~$5.1~~$3.3 million, currently recorded in AOCL, into “Interest expense, net” within the next twelve months. However, the actual amount reclassified could vary due to future changes in the fair value of these derivatives.

6. Commitments and Contingencies

Partnership Parks

On April 1, 1998, we acquired all of the capital stock of the former Six Flags Entertainment Corporation (a corporation that has been merged out of existence and that has always been a separate corporation from Holdings, "Former SFEC") for $976.0 million, paid in cash. In addition to our obligations under outstanding indebtedness and other securities issued or assumed in the Former SFEC acquisition, we also guaranteed certain contractual obligations relating to the Partnership Parks. Specifically, weWe have guaranteed the obligations of the general partners of those partnerships to (i) make minimum annual distributions (including rent) of approximately ~~$75.2~~$80.5 million in ~~2021~~2022 (subject to cost of living adjustments) to the limited partners in the Partnership Parks (based on our ownership of units as of April ~~4, 2021,~~3, 2022, our share of the distribution will be approximately ~~$33.3~~$35.8 million) and (ii) make minimum capital expenditures at each of the Partnership Parks during rolling five-year periods, based generally on 6%6.0% of the Partnership Parks’ revenues. ~~Cash flow from operations at~~Pursuant to the ~~Partnership Parks is used~~2022 annual offer to ~~satisfy these requirements first, before any funds are required from us. We also guaranteed the obligation of our subsidiaries to annually~~ purchase ~~all outstanding~~ limited partnership units ~~to the extent~~ tendered by the unit holders (the "Partnership Park Put"). in May 2022, we purchased 0.2536 limited partnership units from the Texas partnership for $0.6 million. As we purchase additional units, we are entitled to a proportionate increase in our share of the minimum annual distributions. The maximum unit purchase obligations for 2022 at both parks is approximately $522.1 million, representing approximately 68.5% of the outstanding units of SFOG and 46.0% of the outstanding units of SFOT.

The agreed price for units tendered in the Partnership Park Put is based on a valuation of each of the respective Partnership Parks (the "Specified Price") that is the greater of (a) a valuation for each of the respective Partnership Parks derived by multiplying such park’s weighted average four-year EBITDA (as defined in the agreements that govern the partnerships) by a specified multiple (8.0 in the case of SFOG and 8.5 in the case of SFOT) and (b) a valuation derived from the highest prices previously offered for the units of the Partnership Parks by certain entities. In light of the temporary suspension of operations of the parks due to the COVID-19 pandemic ~~during~~in March of 2020, which would ~~cause~~have caused the value of the ~~partnership park~~Partnership Park units to decrease in 2021 and thereafter, we adjusted our annual offer to purchase these units to set a minimum price floor for all future purchases. Pursuant to the new minimum price floor, the Specified Price for the Partnership Parks, if determined as of April ~~4, 2021,~~3, 2022, is $409.7 million in the case of SFOG and $527.4 million in the case of SFOT. As of April ~~4, 2021,~~3, 2022, we owned approximately ~~31.4%~~31.5% and ~~53.9%~~54.0% of the Georgia limited partner interests and Texas limited partner interests, respectively. Our obligations with respect to SFOG and SFOT will continue until 2027 and 2028, respectively.

In 2027 and 2028, we will have the option to purchase all remaining units in the Georgia limited partner and the Texas limited partner, respectively, at a price based on the Specified Price, increased by a cost of living adjustment. As of the date of this quarterly report, we expect to purchase units from the Georgia and Texas partnerships for $1.0 million and $1.2 million, respectively, in May 2021 pursuant to the 2021 annual offer. As we purchase additional units, we are entitled to a proportionate increase in our share of the minimum annual distributions. The maximum unit purchase obligations for 2021 at both parks is approximately $523.4 million, representing approximately 68.6% of the outstanding units of SFOG and 46.1% of the outstanding units of SFOT. An additional $350.0 million of incremental borrowing is available under the Second Amended and Restated Credit Facility for future "put" obligations, if necessary.

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In connection with our acquisition of the Former SFEC, we entered into the Subordinated Indemnity Agreement with certain of the Company’s entities, Time Warner, and an affiliate of Time Warner (an indirect subsidiary of AT&T Inc. as a result of a merger in 2018), pursuant to which, among other things, we transferred to Time Warner (which has guaranteed all of our obligations under the Partnership Park arrangements) record title to the corporations that own the entities that have purchased and will purchase limited partnership units of the Partnership Parks, and we received an assignment from Time Warner of all cash flow received on such limited partnership units, and we otherwise control such entities. In addition, we issued preferred stock of the managing partner of the partnerships to Time Warner. In the event of a default by us under the Subordinated Indemnity Agreement or of our obligations to our partners in the Partnership Parks, these arrangements would permit Time Warner to take full control of both the entities that own the limited partnership units and the managing partner. If we satisfy all such obligations, Time Warner is required to transfer to us the entire equity interests of these entities. The 2018 merger of Time Warner and AT&T Inc. did not affect the Time Warner guarantee of our obligations under the Subordinated Indemnity Agreement.

We incurred ~~$9.1~~$25.5 million of capital expenditures at the Partnership Parks during the ~~2020~~2021 season and intend to incur approximately ~~$11.0~~$19.8 million of capital expenditures at these parks for the ~~2021~~2022 season, an amount in excess of the minimum required expenditure. Cash flows from operations at the Partnership Parks will be used to satisfy the annual distribution and capital expenditure requirements, before any funds are required from us. The Partnership Parks ~~used~~generated approximately ~~$5.0~~$73.8 million of cash in ~~2020~~2021 in operating activities, after deduction of capital expenditures and excluding the impact of short-term intercompany advances from or payments to Holdings. As of April 3, 2022, January 2, 2022 and April 4, 2021, ~~December 31, 2020 and March 31, 2020,~~ we had total loans receivable outstanding of $288.3 million ~~$288.3 million and $239.3 million, respectively,~~ from the partnerships that own the Partnership Parks, primarily to fund the acquisition of Six Flags White Water Atlanta and to make capital improvements to the Partnership Parks and distributions to the limited partners in prior years.

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Redeemable noncontrolling interests represent the non-affiliated parties’ share of the assets of the Partnership Parks that are less than wholly-owned: SFOT, SFOG and Six Flags White Water Atlanta, which is owned by the partnership that owns SFOG. As of April 3, 2022, redeemable noncontrolling interests of the SFOG and SFOT partnerships was $280.2 million and $241.9 million, respectively, which approximates redemption value.

Insurance

We maintain insurance of the types and in amounts that we believe are commercially reasonable and that are available to businesses in our industry. We maintain multi-layered general liability policies that provide for excess liability coverage of up to $100.0 million per occurrence. For incidents arising on or after December 31, 2008, our self-insured retention is $2.0 million, followed by a $0.5 million deductible per occurrence applicable to all claims in the policy year for our domestic parks and our park in Canada and a nominal amount per occurrence for our parks in Mexico. Defense costs are in addition to these retentions. Our general liability policies cover the cost of punitive damages only in certain jurisdictions. Based upon reported claims and an estimate for incurred, but not reported claims, we accrue a liability for our self-insured contingencies. For workers’ compensation claims arising after November 15, 2003, our deductible is $0.75 million ($0.5 million deductible for the period from November 15, 2001 to November 15, 2003). We also maintain fire and extended coverage, business interruption, terrorism and other forms of insurance typical to businesses in our industry. Our all peril property coverage policies insure our real and personal properties (other than land) against physical damage resulting from a variety of hazards. Additionally, we maintain information security and privacy liability insurance in the amount of $10.0 million with a $0.25 million self-insured retention per event.

The majority of our current insurance policies expire on December 31, ~~2021.~~2022. We generally renegotiate our insurance policies on an annual basis. We cannot predict the level of the premiums that we may be required to pay for subsequent insurance coverage, the level of any self-insurance retention applicable thereto, the level of aggregate coverage available or the availability of coverage for specific risks.

Litigation

~~Privacy Class Action Lawsuits~~

~~On January 7, 2016,~~In the normal course of our business, we are involved from time to time in various arbitrations, class actions, commercial litigation, investigations and other legal, regulatory or governmental actions, including the matters described below. In many proceedings, including the specific matters described below, it is inherently difficult to determine whether any loss is probable or to estimate the size or range of the possible loss, and accruals for legal matters are when we believe a ~~putative class action complaint was filed against Holdings~~loss for a particular matter is considered probable and reasonably estimable. However, the outcome of such legal matters is subject to inherent uncertainties and management’s view of these matters may change in the Circuit Court of Lake County, Illinois. On April 22, 2016, Great America, LLC was added as a defendant. The complaint asserts that we violated the Illinois Biometric Information Privacy Act ("BIPA") in connection with the admission of season pass holders and members through the finger scan program that commenced in the 2014 operating season at Six Flags Great

~~Table of Contents~~

America in Gurnee, Illinois, and seeks statutory damages, attorneys’ fees and an injunction. An aggrieved party under BIPA may recover (i) $1,000 if a company is found to have negligently violated BIPA or (ii) $5,000 if found to have intentionally or recklessly violated BIPA, plus reasonable attorneys’ fees in each case. The complaint does not allege that any information was misused or disseminated. On April 7, 2017, the trial court certified 2 questions for consideration by the Illinois Appellate Court of the Second District. On June 7, 2017, the Illinois Appellate Court granted our motion to appeal. Accordingly, 2 questions regarding the interpretation of BIPA were certified for consideration by the Illinois Appellate Court. On December 21, 2017, the Illinois Appellate Court found in our favor, holding that the plaintiff had to allege more than a technical violation of BIPA and had to be injured in some way in order to have a right of action. On March 1, 2018, the plaintiff filed a petition for leave to appeal to the Illinois Supreme Court. On May 30, 2018, the Illinois Supreme Court granted the plaintiff’s leave to appeal and oral arguments were heard on November 20, 2018. On January 25, 2019, the Illinois Supreme Court found in favor of the plaintiff, holding that the plaintiff does not need to allege an actual injury beyond the violation of his rights under BIPA in order to proceed with a complaint. We intend to continue to vigorously defend ourselves against this litigation. The amount we have recorded is based on our estimate of the probable outcome of this litigation.

During 2017, 4 putative class action complaints were filed against Holdings or one of its subsidiaries. Complaints were filed on August 11, 2017, in the Circuit Court of Lake County, Illinois; on September 1, 2017, in the United States District Court for the Northern District of Georgia; on September 11, 2017, in the Superior Court of Los Angeles County, California; and on November 30, 2017, in the Superior Court of Ocean County, New Jersey. The complaints allege that we, in violation of federal law, printed more than the last five digits of a credit or debit card number on customers’ receipts and/or the expiration dates of those cards. A willful violation may subject a company to liability for actual damages or statutory damages between $100 and $1,000 per person, punitive damages in an amount determined by a court and reasonable attorneys’ fees, all of which are sought by the plaintiffs. The complaints do not allege that any information was misused. On October 20, 2020, the parties entered into a settlement agreement to resolve the lawsuits, ~~for an immaterial amount, and preliminary approval was granted by the court on December 3, 2020. All 4 lawsuits are stayed pending final approval of the settlement by the court.~~future.

Securities Class Action Lawsuits

In February 2020, 2 putative securities class action complaints were filed against Holdings and certain of its former executive officers (collectively, the “defendants”) in the U.S. District Court for the Northern District of Texas. On March 2, 2020, the 2 cases were consolidated in an action captioned Electrical Workers Pension Fund Local 103 I.B.E.W. v. Six Flags Entertainment Corp., et al., Case No. 4:20-cv-00201-P (N.D. Tex.) (the “Electrical Workers litigation”), and an amended complaint was filed on March 20, 2020. On May 8, 2020, Oklahoma Firefighters Pension and Retirement System and Electrical Workers Pension Fund Local 103 I.B.E.W. were appointed as lead plaintiffs, Bernstein Litowitz Berger & Grossman LLP was appointed as lead counsel, and McKool Smith PC was appointed as liaison counsel. On July 2, 2020, lead plaintiffs filed a consolidated complaint. The consolidated complaint alleges, among other things, that the defendants made materially false or misleading statements or omissions regarding the Company’s business, operations and growth prospects, specifically with respect to the development of its Six Flags branded parks in China and the financial health of its former partner, Riverside Investment Group Co. Ltd., in violation of the federal securities laws. The consolidated complaint seeks compensatory damages and other relief on behalf of a putative class of purchasers of Holdings’ publicly traded common stock during the period between April 24, 2018 and February 19, 2020. On August 3, 2020, defendants filed a motion to dismiss the consolidated complaint. On March 3, 2021, the district court granted defendants’ motion, dismissing the complaint in its entirety and with prejudice. Plaintiffs filed a motion to amend or set aside judgment and for leave to file an amended complaint on March 31, 2021, which the district court denied on July 26, 2021. Plaintiffs filed a motion for leave to file a supplemental brief on June 17, 2021, which the district court denied on June 18, 2021.

On August 25, 2021, plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Fifth Circuit from the district court’s decisions granting defendants’ motion to dismiss, denying plaintiffs’ motion to amend or set aside judgment, and ~~defendants filed an opposition~~denying plaintiffs’ motion for leave to ~~that motion~~file a supplemental brief. Plaintiffs’ appeal is captioned Oklahoma Firefighters Pension & Ret. Sys. v. Six Flags Ent. Corp., et al., No. 21-10865 (5th Cir.). The appeal is fully briefed and oral argument was held on ~~April 21, 2021.~~ March 7, 2022.

We believe that these lawsuits are without merit and intend to defend this litigation vigorously. However, there can be no assurance regarding the ultimate outcome of the lawsuit.

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Stockholder Derivative Lawsuits

On March 20, 2020, a putative stockholder derivative lawsuit was filed on behalf of nominal defendant Holdings, by Mr. Mark Schwartz in the U.S. District Court for the Northern District of Texas against certain of its current and former executive officers and directors (the “individual defendants”) in an action captioned Schwartz v. Reid-Anderson, et al., Case No. 4:20-cv-00262-P (N.D. Tex.). In April 2020, 2 additional stockholder derivative lawsuits, making

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substantially identical allegations as the Schwartz complaint, were filed on behalf of nominal defendant Holdings by Trustees of the St. Clair County Employees’ Retirement System and Mr. Mehmet Ali Albayrak in the U.S. District Court for the Northern District of Texas in actions captioned Martin, et al. v. Reid-Anderson, et al., Case No. 4:20-cv-00311-P (N.D. Tex.) and Albayrak v. Reid-Anderson, et al., Case No. 4:20-cv-00312-P (N.D. Tex.), respectively. On April 8, 2020, plaintiffs in all 3 of these putative derivative actions moved to consolidate the 3 actions and to appoint lead counsel. On May 8, 2020, the district court granted the plaintiffs’ motion to consolidate. The consolidated action is captioned In re Six Flags Entertainment ~~Corporation~~Corp. Derivative Litigation, Case No. 4:20-cv-00262-P (N.D. Tex.). On August 10, 2020, plaintiffs filed a consolidated derivative complaint. The consolidated derivative complaint alleges breach of fiduciary duty, insider selling, waste of corporate assets, unjust enrichment, and contribution for violations of federal securities laws. The consolidated derivative complaint references, and makes many of the same allegations as are set forth in, the Electrical Workers litigation, alleging, among other things, that the individual defendants breached their fiduciary duties, committed waste, are liable for contribution for, or were unjustly enriched by making, failing to correct, or failing to implement adequate internal controls relating to alleged materially false or misleading statements or omissions regarding the Company’s business, operations and growth prospects, specifically with respect to the prospects of the development of its Six Flags branded parks in China and the financial health of its former partner, Riverside Investment Group Co. Ltd.

The consolidated derivative complaint also alleges that a former officer and director sold shares of the Company while allegedly in possession of material non-public information concerning the same. On September 9, 2020, Holdings and the individual defendants filed a motion to dismiss the consolidated complaint. On April 28, 2021, the district court granted defendants’ motion, dismissing the consolidated complaint in its entirety and with prejudice and denying leave to amend. ~~We believe that these complaints are without merit~~Plaintiffs’ time to appeal the judgment dismissing this action in its entirety and ~~intend~~with prejudice and denying leave to ~~defend these lawsuits vigorously. However, there can be no assurance regarding the ultimate outcome of these lawsuits.~~amend lapsed in May 2021.

On May 5, 2020, a putative stockholder derivative lawsuit was filed on behalf of nominal defendant Holdings, by Mr. Richard Francisco in the District Court for Dallas County, Texas, 160th Judicial District, against certain of its current and former executive officers and directors (the “individual defendants”) in an action captioned Francisco v. Reid-Anderson, et al., Case No. DC-20-06425 (160th Dist. Ct., Dallas Cty., Tex.) (the “Francisco action”). The petition in the Francisco action alleges breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets. The petition in the Francisco action references, and makes many of the same allegations, as are set forth in the Electrical Workers litigation, alleging, among other things, that the individual defendants breached their fiduciary duties, were unjustly enriched by, abused their control, committed gross mismanagement, and committed waste by making, failing to correct, or failing to implement adequate internal controls relating to alleged materially false or misleading statements or omissions regarding the Company’s business, operations and growth prospects, specifically with respect to the prospects of the development of its Six Flags branded parks in China and the financial health of its former partner, Riverside Investment Group Co, Ltd. The petition also alleges that a former officer and director engaged in insider trading. On May 28, 2020, the parties in the Francisco action filed a joint motion to stay proceedings through the resolution of the forthcoming motion to dismiss the Electrical Workers litigation. On June 3, 2020, the district court granted the joint motion to stay proceedings. On June 12, 2020, an additional stockholder derivative lawsuit, making substantially identical allegations as the Francisco petition, was filed on behalf of nominal defendant Holdings in the District Court for Dallas County, Texas, 298th Judicial District ~~on behalf of~~by putative stockholder Mr. Cliff Bragdon in an action captioned Bragdon v. Reid-Anderson, et al., Case No. DC-20-08180 (298th Dist. Ct., Dallas Cty., Tex.) (the “Bragdon action”). On July 10, 2020, the district court granted an agreed motion filed by the parties in the Francisco and Bragdon actions to consolidate cases, to accept service and an unopposed motion to appoint co-lead and liaison counsel, and to stay both the Francisco and Bragdon actions through final resolution of the motion to dismiss the Electrical Workers litigation. The consolidated state derivative action iswas captioned In re Six Flags Entertainment Corp. Derivative Litigation, Case No. DC-20-06425 (160th Dist. Ct., Dallas Cty., Tex.). On September 8, 2020, the parties to the consolidated state derivative action filed an agreed motion to transfer the case from Dallas County to Tarrant County,

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which motion was so ordered on September 27, 2020. The consolidated action is now captioned In re Six Flags Ent.Corp. ~~Deriv. Litig.~~Derivative Litigation, No. 096-320958-20 (Tex. Dist. Ct., Tarrant Cty.)., and remains stayed. We believe that these complaints are without merit and intend to defend these lawsuits vigorously. However, there can be no assurance regarding the ultimate outcome of these lawsuits.

Wage and Hour Class Action Lawsuits

On March 8, 2016, certain plaintiffs filed a complaint against one of our subsidiaries in the Superior Court of Massachusetts, Suffolk County, on behalf of a purported class of current and former employees of Six Flags New

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England. The complaint alleges violations of Massachusetts law governing employee overtime and rest breaks, and seeks damages in the form of unpaid wages for overtime and meal breaks and related penalties. On November 12, 2020, the parties entered into a settlement agreement to resolve the lawsuit, ~~for an immaterial amount, and final approval was granted by the court on March 31, 2021.~~

On April 20, 2018, a complaint was filed against Holdings and Six Flags Concord, LLC in the Superior Court of Solano County, California, on behalf of a purported class of current and former employees of Six Flags Discovery Kingdom. On June 15, 2018, an amended complaint was filed adding Park Management Corp. as a defendant. The amended complaint alleges violations of California law governing, among other things, employee overtime, meal and rest breaks, wage statements, and seeks damages in the form of unpaid wages and related penalties, and attorneys’ fees and costs. ~~Following mediation on November 30, 2020,~~In September 2021, the parties ~~agreed to~~entered into a settlement ~~in principle~~agreement to resolve the lawsuit, for an immaterial ~~amount. The settlement is subject to~~amount, and the court granted preliminary ~~and final~~ approval ~~by the court~~on March 30, 2022..

On September 18, 2019, a complaint was filed against Magic Mountain LLC in the Superior Court of Los Angeles County, California, on behalf of a purported class of current and former employees of Six Flags Magic Mountain. An amended complaint was filed on November 24, 2019. ~~On May 27, 2020, a copycat~~The complaint ~~was filed by the same law firm on behalf of a different named plaintiff alleging nearly identical causes of action. The complaints allege~~alleges violations of California law governing payment of wages, wage statements, ~~and background checks,~~ and seeks unpaid wages and statutory damages under California law as well as under the Private Attorneys General Act, and attorneys’ fees and costs. We intend to vigorously defend ourselves against this ~~litigation. Since this litigation is in an early stage, the~~lawsuit. The outcome is currently not determinable and a reasonable estimate of loss or range of loss cannot be made.

On April 6, 2020, a complaint was filed against Magic Mountain LLC in the Superior Court of Los Angeles County, California, on behalf of a purported class of current and former employees of Six Flags Magic Mountain. The complaint alleges violations of California law governing background checks, and seeks statutory damages under California law as well as under the Private Attorneys General Act, and attorneys’ fees and costs. In January 2022, the parties entered into a settlement agreement to resolve the lawsuit, for an immaterial amount. The settlement is subject to preliminary and final approval by the court.

On February 14, 2020, a complaint was filed against Magic Mountain, LLC in the Superior Court of Los Angeles County, California, on behalf of a purported class of current and former employees of Six Flags Magic Mountain. The complaint alleges one cause of action for failure to furnish accurate, itemized wage statements in violation of California labor law, and seeks statutory damages under California law as well as under the Private Attorneys General Act, and attorneys’ fees and costs. ~~Following mediation on January 13,~~In October 2021, the parties ~~agreed to~~entered into a settlement ~~in principle~~agreement to resolve the lawsuit, for an immaterial ~~amount. The settlement is subject to~~amount, and the court granted preliminary ~~and final~~ approval ~~by the court.~~on April 5, 2022.

On February ~~20,~~21, 2020, a complaint was filed against Park Management Corp. in the Superior Court of Solano County, California, on behalf of a purported class of current and former employees of Six Flags Discovery Kingdom. The complaint alleges violations of California law governing payment of wages, wage statements, and background checks, and seeks statutory damages under federal and California law and attorneys’ fees and costs. The claims related to wages and wage statements will be resolved under the settlement of the April 2018 litigation above. With respect to the remaining background check claims, we intend to vigorously defend ourselves against this litigation. Since this litigation is in an early stage, the outcome is currently not determinable and a reasonable estimate of loss or range of loss cannot be made.

~~COVID-19 Park Closure Lawsuits~~

Since COVID-19 began affecting the operations of our parks in mid-March 2020, 3 similar purported class action complaints were filed against Holdings or one of its subsidiaries in the United States District Court for the Central District of California on April 10, 2020, April 13, 2020, and April 21, 2020. These complaints allege that we, in violation of California law, charged members and season passholders while the parks were closed and did not provide refunds for the amounts charged. The complaints seek compensatory damages, punitive damages, restitution, and unspecified injunctive relief. On September 9, 2020,In January 2022, the parties ~~agreed to~~entered into a settlement ~~in principle~~agreement to resolve the ~~lawsuits,~~lawsuit, for an immaterial ~~amount, which~~amount. The settlement is subject to preliminary and final approval by the ~~court~~.court.

~~7. Leases~~

Personal Injury Lawsuit

On November 18, 2021, the Texas Judicial Panel on Multidistrict Litigation consolidated numerous lawsuits filed against Six Flags Splashtown, LLC d/b/a Six Flags Hurricane Harbor Splashtown asserting claims arising from an alleged chemical vapor release on July 17, 2021 at Six Flags Splashtown. A third party equipment installer is also named as a defendant in the litigation. The consolidated multidistrict litigation is captioned In re Six Flags Splashtown Litigation (Master File No. 2021-77214), and is pending in the 295^th Judicial District. Plaintiffs are seeking compensatory and punitive damages. We ~~have operating~~intend to defend this litigation vigorously. The outcome of this litigation is currently not determinable and ~~finance leases for amusement parks, land, vehicles, machinery and certain equipment. Our leases have remaining lease terms~~we cannot reasonably estimate any loss or range of less than one year to 44 years, some of which include options to extend leases up to 20 years, and some of which include options to terminate the lease within one year. For our noncancelable operating leases with options to extend, because weloss that may ~~determine it is not reasonably certain we will exercise the option, the~~arise from these matters

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~~options are not considered~~ in determining the lease term, and associated potential option payments are excluded from lease payments. Our leases generally do not include restrictive financial or other covenants. Payments due under the lease contracts include fixed payments and, for certain of our leases, variable payments.

~~The components of lease cost for the three months ended April 4, 2021 and March 31, 2020 are as follows:~~

Three Months Ended
(Amounts in thousands)

April 4, 2021

March 31, 2020
Finance lease expense

Amortization of ROU assets

$
157

$
—
Interest on lease liabilities

19

—
Operating lease cost

6,130

6,263
Short-term lease cost

1,465

1,602
Variable lease cost

1,338

1,466
Total lease cost

$
9,109

$
9,331

~~Lease costs for the three months ended April 4, 2021 and March 31, 2020 included minimum rental payments under operating leases recognized on a straight-line basis over the term~~excess of the ~~lease.~~

~~Other information related to leases~~amount that we have recorded for ~~the three months ended April 4, 2021 and March 31, 2020~~this litigation, which amount is ~~as follows:~~

Three Months Ended

(Amounts in thousands)

April 4, 2021

March 31, 2020

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows for operating leases

$
5,208

$
1,587

Operating cash flows for finance leases

76

—

Financing cash flows for finance leases

19

—

Operating Leases

ROU assets obtained in exchange for lease liabilities

79

329

Finance Leases

ROU assets obtained in exchange for lease liabilities

439

—

~~Additional information related~~not material to our ~~operating leases for the three months ended April 4, 2021 is as follows:~~


~~Weighted-average remaining lease term (in years)~~	~~18.77~~
~~Weighted-average discount rate~~	~~6.89~~	%

~~Additional information related to our finance leases for the three months ended April 4, 2021 is as follows:~~


~~Weighted-average remaining lease term (in years)~~	~~3.43~~
~~Weighted-average discount rate~~	~~3.83~~	%

~~The following tables set forth supplemental balance sheet information related to operating and finance leases as of April 4, 2021, December 31, 2020 and March 31, 2020.~~

As of
(Amounts in thousands)

April 4, 2021

December 31, 2020

March 31, 2020
Operating Leases

Right of use assets, net

$
194,768

$
196,711

$
194,519

Short-term lease liabilities

10,037

13,727

10,490
Long-term lease liabilities

188,573

185,823

186,062
Total operating lease obligation

$
198,610

$
199,550

$
196,552

Finance Leases

Property and equipment, at cost

$
2,867

$
2,428

$
—
Accumulated depreciation

(405)

(248)

—
Total property and equipment, net

2,462

2,180

—

Short-term lease liabilities

$
510

$
327

$
—
Long-term lease liabilities

1,789

1,609

—

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~~Total finance lease obligation~~

~~2,299~~

~~1,936~~

—

~~Maturities of noncancelable operating and finance lease liabilities under Topic 842 as of April 4, 2021 are summarized in the table below:~~

(Amounts in thousands)

As of April 4, 2021

Finance Leases

Operating Leases
Remaining in 2021

$
398

$
21,685
2022

767

22,417
2023

769

21,955
2024

502

20,206
2025

24

18,127
Thereafter

—

259,490
Total

$
2,460

$
363,880
Less: present value discount

(161)

(165,270)
Lease liability

$
2,299

$
198,610

consolidated financial statements.

~~8. Redeemable Noncontrolling Interests~~

Redeemable noncontrolling interests represent the non-affiliated parties’ share of the assets of the Partnership Parks that are less than wholly-owned: SFOT, SFOG and Six Flags White Water Atlanta, which is owned by the partnership that owns SFOG. As of April 4, 2021, redeemable noncontrolling interests of the SFOT and SFOG partnerships was $242.6 million and $280.8 million, respectively which approximates redemption value.

9.7. Business Segments

We have only 1 reportable segment – parks. All of our owned or managed parks are located in the United States with the exception of 2 parks in Mexico and 1 park in Montreal, Canada. We also have revenue and expenses related to the development of a Six Flags-branded park outside of North America.

The following information reflects our goodwill and long-lived assets (which consists of property and equipment, right-of-use operating leases and intangible assets) as of April 3, 2022, January 2, 2022 and April 4, ~~2021, December 31, 2020 and March 31, 2020:~~2021:


	As of						As of
(Amounts in thousands)	April 4, 2021		December 31, 2020		March 31, 2020		April 3, 2022		January 2, 2022		April 4, 2021
Domestic	$	2,312,048	$	2,317,009	$	2,368,183	$	2,321,053	$	2,324,420	$	2,312,048
Foreign		131,207		134,805		122,239		114,556		117,066		131,207
Total		2,443,255		2,451,814		2,490,422		2,435,609		2,441,486		2,443,255

Revenues and loss before income taxes by domestic and foreign categories as of or for the three months ended April 3, 2022 and April 4, ~~2021 and March 31, 2020:~~2021:


	Domestic		Foreign		Total		Domestic		Foreign		Total
2022							(Amounts in thousands)
Revenues							$	125,903	$	12,204	$	138,107
Loss before income taxes								(83,048)		(1,727)		(84,775)
2021	(Amounts in thousands)
Revenues	$	78,673	$	3,351	$	82,024	$	78,673	$	3,351	$	82,024
Loss before income taxes		(121,192)		(6,517)		(127,709)		(121,192)		(6,517)		(127,709)
2020
Revenues	$	89,496	$	13,007	$	102,503
Loss before income taxes		(102,362)		(4,233)		(106,595)

~~10. Pension Benefits~~

We froze our pension plan effective March 31, 2006, pursuant to which most participants no longer earned future pension benefits. Effective February 16, 2009, the remaining participants in the pension plan no longer earned future

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8. Pension Benefits

We froze our pension plan effective March 31, 2006 and effective February 16, 2009, the remaining participants in the pension plan no longer earned future benefits. The following summarizes our pension costs during the three months ended April 3, 2022 and April 4, 2021, ~~and March 31, 2020,~~ respectively:


	Three Months Ended				Three Months Ended
(Amounts in thousands)	April 4, 2021		March 31, 2020		April 3, 2022		April 4, 2021
Service cost	$	275	$	325	$	300	$	275
Interest cost		1,275		1,623		1,384		1,275
Expected return on plan assets		(3,069)		(3,279)		(3,059)		(3,069)
Amortization of net actuarial loss		340		257		229		340
Total net periodic benefit	$	(1,179)	$	(1,074)	$	(1,146)	$	(1,179)

The components of net periodic pension benefit other than the service cost component were included in "Other net periodic pension benefit" in the condensed consolidated statements of operations.

Weighted-Average Assumptions Used To Determine Net Cost


	Three Months Ended				Three Months Ended
	April 4, 2021		March 31, 2020		April 3, 2022		April 4, 2021
Discount rate	2.20	%	3.00	%	2.60	%	2.20
Rate of compensation increase	N/A		N/A		N/A		N/A
Expected return on plan assets	5.75	%	6.50	%	5.75	%	5.75

Employer Contributions

~~During the three month period ended March 31, 2020, we made pension contributions of $1.5 million.~~ We did ~~not~~0t make any pension contributions during the three month period ended April 3, 2022 or April 4, 2021.

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~~11.~~9. Stock Repurchase Plans ~~and Shareholder Rights Plan~~

On March 30, 2017, Holdings announced that its Board of Directors approved a stock repurchase plan that permits Holdings to repurchase an incremental $500.0 million in shares of Holdings’ common stock (the "March 2017 Stock Repurchase Plan"). As of April ~~23, 2021,~~3, 2022, Holdings had repurchased 4,607,000 shares at a cumulative cost of approximately $268.3 million and an average price per share of $58.25 under the March 2017 Stock Repurchase Plan, leaving approximately $231.7 million available for permitted repurchases.

The amount of ~~share~~stock repurchases is limited by the covenants in the Second Amended and Restated Credit Facility, the 2024 Notes, ~~the 2024 Notes Add-on,~~ the 2025 Notes and the 2027 Notes. In April 2020 and August 2020, in connection with amendments to the Second Amended and Restated Credit ~~Agreement,~~Facility, we suspended ~~dividend payments and~~ stock repurchases due to the impact of the COVID-19 pandemic until the earlier of December 31, 2022, or such time as SFTP reduces the incremental revolving credit commitments by $131 ~~million and begins using actual results to test the senior secured leverage ratio financial maintenance covenant compliance.~~million. However, given the uncertainty associated with the ultimate impact of the COVID-19 pandemic on our business and operations, we may determine that it is prudent not to ~~continue these suspensions~~engage in stock repurchases for a longer duration. Investors may have an expectation that we will resume our dividend at a certain time and at certain levels or repurchase shares available under Holdings’ repurchase program. The stock price of Holdings’ common stock could be adversely affected if our cash dividend rate or common stock repurchase activity differs from investors’ expectations.

~~On March 31, 2020, Holdings entered into a Rights Agreement (the “Rights Agreement”).~~ ~~In accordance with the terms of the Rights Agreement, the rights issued thereunder expired on March 30, 2021~~. On April 1, 2021, Holdings filed with the office of the Secretary of State of the State of Delaware a Certificate of Elimination (the “Certificate of Elimination”), which, effective upon filing, eliminated from Holdings’ Restated Certificate of Incorporation, as amended, all matters set forth in Holdings’ Certificate of Designation of Series B Junior Preferred Stock, as filed with the Secretary of State of the State of Delaware on March 31, 2020. The 200,000 shares of preferred stock previously designated as Series B Junior Preferred Stock were eliminated and returned to the status of authorized but unissued shares of preferred stock, without designation.

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~~12. Subsequent Event~~

In April 2021, we received $11.3 million pursuant to one of our terminated international development agreements in China. We currently do not anticipate any further payments related to any of the remaining terminated international development agreements.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis contains forward-looking statements relating to future events or our future financial performance, which involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements. Please see the discussion regarding forward-looking statements included under the caption "Cautionary Note Regarding Forward-Looking Statements" included elsewhere in this Quarterly Report and "Item 1A. Risk Factors" in ~~our 2020~~the 2021 Annual Report and in this Quarterly Report for further discussion of the uncertainties, risks and assumptions associated with these statements.

The following discussion and analysis presents information that we believe is relevant to an assessment and understanding of our condensed consolidated balance sheets and results of operations. This information should be read in conjunction with the condensed consolidated financial statements and the notes thereto, and other financial data included elsewhere in this Quarterly Report. The following information should also be read in conjunction with our audited consolidated financial statements, and the notes thereto, and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in ~~our 2020~~the 2021 Annual Report.

Overview

General

We are the largest regional theme park operator in the world and the largest operator of waterparks in North America based on the number of parks we operate. Of our 27 regional theme parks and waterparks, 24 are located in the United States, two are located in Mexico and one is located in Montreal, Canada. Our ~~waterpark at Six Flags Great America will open as a separate gate in 2021 as Hurricane Harbor Chicago, our 27~~^th ~~park. Our~~ parks are located in geographically diverse markets across North America and generally offer a broad selection of state-of-the-art and traditional thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues and retail outlets, ~~thereby~~ providing a complete family-oriented entertainment experience. We work continuously to improve our parks and our guests’ experiences and to meet our guests’ evolving needs and preferences.

The results of operations for the three months ended April 3, 2022 and April 4, 2021 ~~and March 31, 2020~~ are not indicative of the results expected for the full year. Typically, our park operations generate more than half of their annual revenue during the period from Memorial Day to Labor Day each year while expenses are incurred year-round. ~~In March 2020, we temporarily suspended operations at all~~During the first quarter of ~~our domestic theme parks and waterparks due to the COVID-19 pandemic. Many~~2021, many of our parks ~~currently have~~remained closed or had capacity limits or other restrictions affecting attendance. ~~We continue to monitor government guidelines and requirements in each geographic region in which we operate and resumed operations on a park-by-park basis based on local conditions.~~

Our revenue is derived from (i) the sale of tickets (including season passes and memberships) for entrance to our parks (which accounted for approximately ~~54%~~53% and ~~58%~~54% of total revenue during the three months ended April 3, 2022 and April 4, 2021, ~~and March 31, 2020,~~ respectively), (ii) the sale of food and beverages, merchandise, games and attractions, parking and other services inside our parks, and (iii) sponsorship, international agreements and accommodations. ~~Revenues~~Revenue from ticket sales and in-park sales are primarily impacted by park attendance. ~~Revenues~~Revenue from sponsorship, international agreements and accommodations can be impacted by the term, timing and extent of services and fees under these arrangements, which can result in fluctuations from quarter to quarter and year to year. During the ~~first~~ three months ~~of 2021,~~ended April 3, 2022, our ~~park~~ earnings before interest, taxes, depreciation and amortization ~~("Park EBITDA") decreased relative~~increased $30 million compared to the ~~comparable period~~prior year. The increase was driven by higher attendance and guest spending per capita, benefiting from more parks being open in the prior year, primarily as a result of temporary pandemic-related suspension of operations at several of our parks, and capacity restrictions at most of the parks that were open. In March 2020, we temporarily suspended operations at all of our parks2022 than in 2021 due to the ~~COVID-19~~ pandemic.

Our principal costs of operations include salaries and wages, employee benefits, advertising, third party services, repairs and maintenance, utilities, rent and insurance. A large portion of our expenses is relatively fixed when our parks are operating, as our costs for full-time employees, maintenance, utilities, rent, ~~advertising~~ and insurance do not vary significantly with attendance. ~~During 2020, while all of our parks were temporarily closed due to the COVID-19~~

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pandemic, we reduced a significant portion of these expenses, including eliminating the majority of our seasonal labor and advertising expense. These cost-saving measures remain in effect with respect to parks that continue to be temporarily closed. These cost-savings were partially offset by the increased costs related to enhanced sanitization and preventative measures initiated at the reopened parks to help minimize the spread of COVID-19. We may face additional costs in the future in complying with any new federal, state or local regulations or industry best practices established in response to the COVID-19 pandemic.

~~Transformation Plan~~

Prior to the pandemic, we initiated a transformation plan. The transformation plan consists of five revenue initiatives and three cost initiatives designed to improve our core operational effectiveness and to support our strategy, delivering sustainable value creation over time. Our strategy is to create thrilling, memorable experiences at our regional parks, delivered by a diverse and empowered team, through industry-leading innovation and technology. The strategy is driven by three focus areas: (i) modernizing the guest experience through technology, (ii) continuously improving operational efficiency, and (iii) driving financial excellence. We plan to focus on our core business over the next two to three years; during this time, we will be cautious about expanding into adjacent domestic markets or entering into new international agreements.

Due to the outbreak of the COVID-19 pandemic in early 2020 and the resulting park closures, management redirected its focus on steering us through this crisis, causing a delay in our transformation plan. However, in the latter half of 2020, we made significant progress on each of the transformation initiatives. For example, in October 2020, we reduced our full-time headcount costs by approximately 10%. From a cost perspective, we closed two satellite offices, initiated centralized negotiations with several vendors to reduce procurement costs, and piloted a program to use our variable labor more efficiently and effectively. From a revenue perspective, we improved our menu assortment, pricing and merchandizing strategy, developed a new tool to optimize media spending, improved our website, and made progress on optimizing our ticket revenue by adjusting the relative prices of our tickets and executing dynamic pricing, allowing us to attract incremental single day visitors and increasing park utilization.

We expect the transformation plan to generate an incremental $80 to $110 million in annual run-rate Adjusted EBITDA. We expect to realize $30 to $35 million of benefits in 2021, independent of attendance levels, and to achieve the remaining benefits through incremental revenue opportunities and lower variable costs once the plan is fully implemented and we are operating in a normal business environment.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of

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assets and liabilities and the disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenues and expenses earned and incurred during the reporting period. Critical accounting estimates are fundamental to the portrayal of both our financial condition and results of operations and often require difficult, subjective and complex estimates and judgments. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from the continuing changes in the economic environment will be reflected in the financial statements in future periods. With respect to our critical accounting policies and estimates, there have been no material developments or changes from the policies and estimates discussed in ~~our 2020~~the 2021 Annual Report.

Recent Events

~~Management~~Effective March 27, 2022, Sandeep Reddy resigned as Executive Vice President and ~~Board Changes~~

~~In February 2021, Holdings’ board~~Chief Financial Officer to accept a position at another company. Stephen Purtell assumed the role of ~~directors determined that Selim Bassoul would succeed Richard Roedel as Non-Executive Chairman~~interim Chief Financial Officer effective ~~immediately,~~upon Mr. Reddy’s departure. We are conducting a search process, including internal and ~~Nancy Krejsa, a director since 2017, advised us of her intention~~external candidates, to identify the next Chief Financial Officer.

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~~retire from Holdings’ board of directors at the end of her current term and that she will not stand for re-election at our 2021 annual meeting of stockholders.~~

~~In March 2021, Holdings nominated Denise M. Clark as an independent director nominee to stand for election at our 2021 annual meeting of stockholders.~~

~~Fiscal Year Change~~

Holdings’ Board of Directors determined that it is in the best interests of the Company to change the method of determining its fiscal quarters and fiscal years, such that each fiscal quarter will consist of thirteen weeks ending on a Sunday and each fiscal year will consist of 52 or 53 weeks, as applicable, and shall end on the Sunday closest to December 31, effective as of the commencement of the Company’s fiscal year on January 1, 2021. This change was made to align the Company’s reporting calendar with how the Company operates its business and improve comparability across periods. The Company’s current fiscal year will end on January 2, 2022.

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Results of Operations

Three Months Ended April 3, 2022 Compared to Three Months Ended April 4, 2021 ~~Compared to Three Months Ended March 31, 2020 and the Three Months Ended March 31, 2019~~

The following table sets forth financial information for the three months ended April 3, 2022 and April 4, ~~2021, March 31, 2020 and March 31, 2019.~~2021.

Three Months Ended

Percentage Change (%)
(Amounts in thousands, except percentage and per capita data)

April 4, 2021

March 31, 2020

March 31, 2019

2021 to 2020

2021 to 2019
Total revenue

$
82,024

$
102,503

$
128,193

(20)
%

(36)
%
Operating expenses

92,643

105,864

114,522

(12)
%

(19)
%
Selling, general and administrative expenses

36,126

36,190

40,110

(0)
%

(10)
%
Cost of products sold

7,215

7,760

10,275

(7)
%

(30)
%
Other net periodic pension benefit

(1,643)

(996)

(1,055)

65
%

56
%
Depreciation and amortization

28,833

30,664

29,073

(6)
%

(1)
%
Loss (gain) on disposal of assets

520

(120)

1,136

N/M

(54)

Interest expense, net

38,420

27,157

28,348

41
%

36
%
Loss on extinguishment of debt

—

1,019

—

N/M

NM

Other expense (income), net

7,619

1,560

(427)

N/M

NM

Loss before income taxes

(127,709)

(106,595)

(93,789)

20
%

36
%
Income tax benefit

(31,870)

(22,049)

(24,657)

45
%

29
%
Net loss

$
(95,839)

$
(84,546)

$
(69,132)

13
%

39
%

Other Data:







Attendance

1,346

1,583

2,167

(15)
%

(38)
%
Total revenue per capita

$
60.96

$
64.75

$
59.15

(6)
%

3
%


	Three Months Ended				Percentage Change (%)
(Amounts in thousands, except percentage and per capita data)	April 3, 2022		April 4, 2021		2022 to 2021
Total revenue	$	138,107	$	82,024	68	%
Operating expenses		109,944		92,643	19	%
Selling, general and administrative expenses		39,332		36,126	9	%
Cost of products sold		10,115		7,215	40	%
Other net periodic pension benefit		(1,451)		(1,643)	(12)	%
Depreciation and amortization		29,049		28,833	1	%
(Gain) loss on disposal of assets		(2,100)		520	N/M
Interest expense, net		37,530		38,420	(2)	%
Other expense, net		463		7,619	(1)	%
Loss before income taxes		(84,775)		(127,709)	(34)	%
Income tax benefit		(19,113)		(31,870)	(40)
Net loss	$	(65,662)	$	(95,839)	(31)	%

Other Data:
Attendance		1,686		1,346	25	%
Total guest spending per capita	$	75.46	$	56.16	34	%

Revenue

Revenue for the three months ended April ~~4, 2021,~~3, 2022, totaled ~~$82.0~~$138.1 million, ~~a decrease~~an increase of ~~$20.5~~$56.1 million, or ~~20%~~68%, compared to ~~$102.5~~$82.0 million for the three months ended ~~March 31, 2020~~April 4, 2021. The increase in revenue was driven by a 25% increase in attendance and a ~~decrease of $46.2 million, or 36%~~34% increase in total guest spending per capita. The increase in attendance was driven by increased operating days in three months ended April 3, 2022 compared to ~~$128.2 million for~~ the three months ended ~~March 31, 2019.~~April 4, 2021, which was negatively impacted by pandemic-related closures and restrictions. The ~~difference~~increase in ~~revenue~~operating days was ~~primarily driven~~offset by a ~~15% and 38% decrease in attendance, respectively,~~visitation shift of approximately 200 thousand guests from the first quarter to the second quarter 2022 compared to the first quarter 2021 due to the ~~temporary pandemic-related suspension of operations at several of our parks, and capacity restrictions at most~~timing of the ~~parks that~~Easter holiday. In addition, there were ~~open. In 2020, we suspended operations at all of our domestic parks on March 13 and our parks~~three additional days included in ~~Mexico on March 14~~first quarter 2021 compared to first quarter 2022 due to the ~~COVID-19 pandemic. The decrease~~previously announced fiscal calendar reporting change that began with the quarter commencing January 1, 2021, which accounted for 89 thousand additional guests in ~~revenue was also attributable to a $6.4 million and $16.7 million reduction in sponsorship, international agreements and accommodations revenues, due primarily to~~ the suspension of most sponsorship revenue while certain parks were not operating, and the pandemic-related suspension of the majority of our accommodations operations and the termination of our international agreements in both China and Dubai.first quarter 2021.

Total guest spending per capita, which excludes sponsorship, international agreements and accommodations revenue, for the three months ended April ~~4, 2021, decreased~~3, 2022, increased by ~~$0.44,~~$19.30, to ~~$56.16,~~$75.46, compared to the three months ended ~~March 31, 2020, primarily as a result of a $4.82, or 13%, decrease in admissions revenue per capita which was offset~~April 4, 2021, driven by a ~~$4.38,~~$10.33, or ~~23% increase in non-admissions revenue per capita. Total guest spending per capita improved by $7.68 compared to the three months ended March 31, 2019, primarily as a result of a $5.47, or 17%~~31%, increase in non-admissions revenue per capita. Since the beginning of the membership program, we have allocated a portion of the membership revenue to “Non-admissions revenue.” Beginning with memberships in October 2020, we prospectively began allocating an incremental portion of revenue between “Park admissions” and “Park food, merchandise and other.” This resulted in a reduction in admissions revenue per capita and ana $8.97, or 39% increase in ~~non-admissions revenue~~In-park spending per capita. The higher admissions per capita ~~compared~~reflects higher realized ticket pricing and additional revenue from memberships beyond their initial 12-month commitment period that was recognized in first quarter 2022 but not recognized in first quarter 2021 due to ~~what previously would have been reported, but~~ the ~~increased allocation has no impact on “Total guest~~pandemic-related closure of parks. The increase in In-park spending per ~~capita.” Non-admissions~~capita reflects the benefits of our revenue ~~per capita also benefitted from an increase in the mix of single-day guests, who tend~~management initiatives related to ~~spend more per visit.~~its premiumization strategy and in-park initiatives.

Operating expenses

Operating expenses for the three months ended April ~~4, 2021, decreased $13.2~~3, 2022, increased $17.3 million, or ~~12%~~19%, compared to the three months ended ~~March 31, 2020~~April 4, 2021. These increases were primarily as a result of increased operating days at our California and ~~decreased $21.9 million, or 19% compared~~Mexico parks in the first quarter 2022 which were closed due to COVID-19 during the three months ended ~~March 31,~~April 4, 2021. The additional operating days contributed to the increase in salaries, wages, utilities and maintenance.

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2019. These decreases were primarily as a result of cost savings during the quarter driven by our transformation plan, and lower salaries, wages, utilities and other costs related to the fact that several of our parks that were operating in the first quarters of 2019 and 2020 were not operating in the first quarter of 2021. These savings were partially offset by the increased costs related to increased sanitization and additional preventative measures to help minimize the spread of COVID-19.

Selling, general and administrative expenses

Selling, general and administrative expenses for the three months ended April ~~4, 2021 decreased $0.1 million, compared to the three months ended March 31, 2020 and decreased $4.0~~3, 2022 increased $3.2 million, or ~~30%~~9%, compared to the three months ended ~~March 31, 2019. Our~~April 4, 2021. The increase was primarily related to our centralization initiative which shifted a portion of costs from operating expenses to selling, general and administrative ~~costs would have further decreased if not for our centralization initiative within our transformation plan.~~expenses. All corporate ~~costs~~expenses are included in selling, general and administrative expenses rather than operating costs. This centralization initiative was offset by a reduction in advertising expense and other costs related to the reduced number of operating days and reduced operating hours due to the COVID-19 pandemic impact on our operations.expenses.

Cost of products sold

Cost of products sold in the three months ended April ~~4, 2021, decreased $0.5~~3, 2022, increased $2.9 million, or 7%40%, compared to the three months ended ~~March 31, 2020 and decreased $3.1 million, or 30%, for~~April 4, 2021. The increase was primarily the ~~three months ended March 31, 2019. The decreases were primarily as a~~ result of ~~reduced sales of food and merchandise due to the continued suspension of operations at several of our parks and reduced~~increased attendance at our parks ~~that were operating due~~compared to the ~~COVID-19 pandemic.~~prior year period, which was negatively impacted by pandemic-related closures and restrictions. Costs of products sold as a percentage of ~~non-admissions~~in-park revenue for the three months ended April ~~4, 2021~~3, 2022 decreased slightly relative to the ~~both~~ prior ~~periods,~~year period, primarily as a result of an increase in retail prices, the mix of ~~non-admissions revenues~~in-park revenue and a reduction in membership ~~discounts driven by the increased mix of single-day guests.~~discounts.

Depreciation and amortization expense

Depreciation and amortization expense for the three months ended April ~~4, 2021, decreased $1.8 million, or 6%, compared to the three months ended March 31, 2020, and decreased~~3, 2022, increased $0.2 million, or 1%, compared to the three months ended ~~March 31, 2019.~~April 4, 2021. The ~~decrease~~increase in depreciation and amortization expense iswas primarily the result of ~~asset retirements, and reduced capital expenditures~~the capitalization of new assets during 2022, implementation of which had previously been delayed due to the COVID-19 ~~reductions implemented in 2020.~~pandemic.

~~Loss (gain)~~(Gain) loss on disposal of assets

We recognized a ~~$0.5~~$2.1 million ~~loss~~gain on disposal of assets for the three months ended April ~~4, 2021,~~3, 2022, compared to a gain on disposal of assets of $0.1 million for the three months ended March 31, 2020. The gain in the prior year period was primarily driven by insurance proceeds from a flood at Six Flags Over Texas in September 2018.

~~We recognized~~ a loss on disposal of assets of $1.1 million for the three months ended March 31, 2019. The difference between the three months ended April 4, 2021 and March 31, 2019 relates to fewer asset disposals in conjunction with the execution of our ongoing capital program during the current year.

~~Interest expense, net~~

Interest expense, net increased $11.3 million, or 41%, for the three months ended April 4, 2021, compared to the three months ended March 31, 2020, and increased $10.1 million, or 36%, compared to the three months ended March 31, 2019. The increase was primarily as a result of increased interest expense related to the 2025 Notes issued in April 2020. This increase was partially offset by lower borrowings under the Second Amended and Restated Revolving Loan and the Second Amended and Restated Term Loan B, and the interest savings related to the prepayment of $50.5 million of the outstanding 2024 Notes in March 2020.

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~~Income tax benefit~~

~~Income tax benefit increased $9.8 million and $7.2~~$0.5 million for the three months ended April 4, ~~2021~~2021. The $2.1 million gain on disposal of assets for the three months ended April 3, 2022 was driven by insurance proceeds from prior year losses at multiple parks.

Interest expense, net

Interest expense, net decreased $0.9 million, or 2%, for the three months ended April 3, 2022 compared to the three months ended ~~March 31, 2020 and March 31, 2019, respectively. Because~~April 4, 2021. The decrease is primarily attributable to lower interest rates on the unhedged portion of the ~~magnitude of unfavorable permanent book-tax differences~~Second Amended and Restated Term Loan B.

Income tax benefit

Income tax benefit decreased $12.8 million for the three months ended April 3, 2022 compared to a marginal forecasted, annual pre-tax loss, the annual effective tax rate approach does not provide a reliable estimate of the income tax benefit. As a result, the Company has computed its income tax benefit for the three months ended April 4, 2021 ~~using its actual effective tax rate.~~largely as a result of a lower pre-tax loss. The effective tax rates for the three months ended April 3, 2022 and April 4, 2021 ~~March 31, 2020~~were 23.0% and ~~March 31, 2019 were~~ 24.9%~~, 20.7% and 24.7%~~, respectively. The difference between the Company’s effective tax rate and the federal statutory rate primarily results from state and foreign income taxes and nondeductible expenses, including nondeductible executive compensation.

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Calculation of EBITDA for the three months ended April 3, 2022 compared to the three months ended April 4, 2021

We manage our business primarily with three different metrics; Modified EBITDA, Adjusted EBITDA and Adjusted EBITDA minus capex.

“Modified EBITDA,” a non-GAAP measure, is defined as our consolidated income (loss) from continuing operations: excluding the following: the cumulative effect of changes in accounting principles, discontinued operations gains or losses, income tax expense or benefit, restructure costs or recoveries, reorganization items (net), other income or expense, gain or loss on early extinguishment of debt, equity in income or loss of investees, interest expense (net), gain or loss on disposal of assets, gain or loss on the sale of investees, amortization, depreciation, stock-based compensation, and fresh start accounting valuation adjustments. Modified EBITDA, as defined herein, may differ from similarly titled measures presented by other companies. Management uses non-GAAP measures for budgeting purposes, measuring actual results, allocating resources and in determining employee incentive compensation. We believe that Modified EBITDA provides relevant and useful information for investors because it assists in comparing our operating performance on a consistent basis, makes it easier to compare our results with those of other companies in our industry as it most closely ties our performance to that of our competitors from a park-level perspective and allows investors to review performance in the same manner as our management.

"Adjusted EBITDA," a non-GAAP measure, is defined as Modified EBITDA minus the interests of third parties in the Modified EBITDA of properties that are less than wholly owned (consisting of Six Flags Over Georgia, Six Flags White Water Atlanta and Six Flags Over Texas). Adjusted EBITDA is approximately equal to “Parent Consolidated Adjusted EBITDA” as defined in our secured credit agreement, except that Parent Consolidated Adjusted EBITDA excludes Adjusted EBITDA from equity investees that is not distributed to us in cash on a net basis and has limitations on the amounts of certain expenses that are excluded from the calculation. Adjusted EBITDA as defined herein may differ from similarly titled measures presented by other companies. Our board of directors and management use Adjusted EBITDA to measure our performance and our current management incentive compensation plans are based largely on Adjusted EBITDA. We believe that Adjusted EBITDA is frequently used by all our sell-side analysts and most investors as their primary measure of our performance in the evaluation of companies in our industry. In addition, the instruments governing our indebtedness use Adjusted EBITDA to measure our compliance with certain covenants and, in certain circumstances, our ability to make certain borrowings. Adjusted EBITDA, as computed by us, may not be comparable to similar metrics used by other companies in our industry.

“Adjusted EBITDA minus capex,” a non-GAAP measure, is defined as Modified EBITDA minus capital expenditures net of property insurance recoveries. Our board of directors and management use Adjusted EBITDA to measure our performance and our current management incentive compensation plans are based largely on Adjusted EBITDA minus capex. Adjusted EBITDA minus capex as defined herein may differ from similarly titled measures presented by other companies.

Modified EBITDA, Adjusted EBITDA and Adjusted EBITDA minus capex are not recognized terms under US GAAP and should not be considered in isolation or as a substitute for a measure of our financial performance prepared in accordance with US GAAP. These metrics are not indicative of income or loss as determined under US GAAP. Modified EBITDA, Adjusted EBITDA and Adjusted EBITDA minus capex as presented may not be comparable to similarly titled measures of other companies due to varying methods of calculation.

The following tables set forth a reconciliation of net income (loss) to Modified EBITDA, Adjusted EBITDA and Adjusted EBITDA minus capex for the three month periods ended April 3, 2022 and April 4, 2021:

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	Three Months Ended
(Amounts in thousands, except per share data)	April 3, 2022		April 4, 2021
Net loss	$	(65,662)	$	(95,839)
Income tax benefit		(19,113)		(31,870)
Other expense, net		463		7,619
Interest expense, net		37,530		38,420
Gain (loss) on disposal of assets		(2,100)		520
Amortization		6		6
Depreciation		29,043		28,827
Stock-based compensation		4,225		6,637
Modified EBITDA		(15,608)		(45,680)
Third party interest in EBITDA of certain operations		—		—
Adjusted EBITDA	$	(15,608)	$	(45,680)
Capital expenditures, net of property insurance recovery		(28,990)		(23,133)
Adjusted EBITDA minus capex	$	(44,598)	$	(68,813)

Adjusted EBITDA minus capex for the three months ended April 3, 2022 increased $28.7 million compared to the three months ended April 4, 2021. The primary driver of this increase was an increase in revenue of $56.1 million due to the resumption of operations at our parks in California and Mexico that were not open during the first quarter 2021 due to the COVID-19 pandemic. Revenue gains were partially offset by operating and selling, general and administrative expense increases due to the increase in overall operating days and our centralization initiative. Capital expenditures, net of property insurance recovery, increased by $5.4 million due to increased certainty around operations for 2022 allowing for additional capital spending during the first quarter versus the comparable period during 2021 when COVID-19 led to more uncertainty and decreased capital spending during the first quarter.

Liquidity, Capital Commitments and Resources

On an annual basis, our principal sources of liquidity are cash generated from operations, funds from borrowings and existing cash on hand. Our principal uses of cash typically include the funding of working capital obligations, debt service, investments in parks (including infrastructure and capital projects), ~~common stock dividends,~~ payments to our partners in the Partnership Parks, and ~~common~~could include payment of stock ~~repurchases.~~

~~Holdings did not pay any~~ dividends ~~during the three months ended April 4, 2021. During the three months ended March 31, 2020, Holdings paid $21.2 million in cash dividends on its common stock.~~and stock repurchases, when permitted.

As of April ~~4, 2021,~~3, 2022, Holdings had repurchased 4,607,000 shares of common stock at a cumulative cost of approximately $268.3 million and an average cost per share of $58.25 under its previously approved stock repurchase program, leaving approximately $231.7 million available for permitted repurchases. Pursuant to amendments to the Second Amended and Restated Credit Facility in April and August 2020, we agreed to temporarily suspend the payment of dividends and the repurchase of common stock until the earlier of December 31, 2022, or such time as SFTP reduces the incremental revolving credit commitments by $131 ~~million and begins using actual results~~ million.~~to test the senior secured leverage ratio financial maintenance covenant compliance~~. However, given the present uncertainty associated with the ultimate impact of COVID-19 on our business and operations, we may determine that it is prudent to continue suspending the repurchase of Holdings’ common stock and payment of dividends after the restrictions under the Second Amended and Restated Credit Facility are terminated depending on any then-existing limitations on our working capital.

Based on historical and anticipated operating results, we believe cash flow from operations, available cash and amounts available under the Second Amended and Restated Credit Facility will be adequate to meet our liquidity needs for at least the next twelve months, including any anticipated requirements for working capital, capital expenditures, scheduled debt service and obligations under arrangements relating to the Partnership Parks. Additionally, we expect to be able to use federal net operating loss carryforwards to reduce our federal income tax liability for several years. For the years ~~2019~~2022 through 2024, we have significant federal net operating loss carryforwards subject to an annual limitation that will offset approximately $32.5 million of taxable income per year. We expect taxable income in excess of the annual limitation in those years will be offset by net operating losses generated during 2020. In accordance with the CARES Act, any net operating loss carryforwards generated in 2020 ~~and 2021~~ are not subject to expiration and will carryforward indefinitely.

On April 8, 2020, we increased the Second Amended and Restated Revolving Loan by $131.0 million, increasing the facility from $350.0 million to $481.0 million. On April 22, 2020, SFTP completed the private sale of $725 million in aggregate principal amount of 7.00% senior secured notes (the “2025 Notes”).

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the senior secured leverage ratio financial maintenance covenant thereafter (provided that for each quarter in 2022 ~~(other than the fourth quarter)~~ that the financial maintenance covenant is tested, SFTP will be permitted to use its quarterly Borrower Consolidated Adjusted EBITDA (as defined in the credit agreement governing the Second Amended and Restated Credit Facility) from the second, third, and fourth quarters of 2019 in lieu of the actual Borrower Consolidated

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Adjusted EBITDA for the corresponding quarters of 2021), (iii) reduced the commitment fee on the revolving credit facility, and (iv) extended the minimum liquidity covenant that will apply through December 31, 2022. The extension of the modifications to the financial covenant and other provisions in the Second Amended and Restated Credit Facility pursuant to the August 2020 amendment will be in effect from the date of the amendment until the earlier of the delivery of the compliance certificate for the fourth quarter of 2022 and the date on which SFTP, in its sole discretion, elects to calculate its compliance with the financial maintenance covenant by using its actual Borrower Consolidated Adjusted EBITDA instead of the 2019 figures as outlined above. In addition, all of SFTP’s existing incremental revolving credit lenders agreed to extend the incremental $131 million revolving credit commitments to the Second Amended and Restated Revolving Loan by one year to December 31, 2022. Based on our improved liquidity position and financial outlook, and to be permitted to pre-pay a portion of our debt, we voluntarily tested our senior secured leverage ratio financial maintenance covenant based on actual results beginning in the fourth quarter of 2021.

Our current and future liquidity is greatly dependent upon our operating results, which are driven largely by overall economic conditions as well as the price and perceived quality of the entertainment experience at our parks. Our liquidity could also be adversely affected by a disruption in the availability of credit as well as unfavorable weather; natural disasters; contagious diseases, such as Ebola, Zika, swine flu, COVID-19 or other diseases; accidents or the occurrence of an event or condition at our parks, including terrorist acts or threats inside or outside of our parks; negative publicity; or significant local competitive events, which could materially reduce paid attendance and revenue related to that attendance at any of our parks. While we work with local police authorities on security-related precautions to prevent certain types of disturbances, we can make no assurance that these precautions will be able to prevent these types of occurrences. However, we believe our ownership of many parks in different geographic locations reduces the effects of adverse weather and these other types of occurrences on our consolidated results. If such an adverse event were to occur, we may be unable to borrow under the Second Amended and Restated Revolving Loan or may be required to repay amounts outstanding under the Second Amended and Restated Credit Facility and/or may need to seek additional financing. In addition, we expect we may be required to seek additional financing to refinance all or a significant portion of our existing debt on or prior to maturity. ~~The~~Our degree ~~to which we are leveraged~~of indebtedness could adversely affect our ability to obtain any additional financing. See "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors" in the ~~2020~~2021 Annual Report and in this Quarterly Report.

As of April ~~4, 2021,~~3, 2022, our total indebtedness, net of discount and deferred financing costs, was approximately ~~$2,624.4~~$2,631.2 million. As of ~~April 23, 2021,~~May 9, 2022, based on (i) non-revolving credit debt outstanding on that date, (ii) anticipated levels of working capital revolving borrowings during ~~2021~~2022 and ~~2022,~~2023, (iii) estimated interest rates for floating-rate debt and (iv) the 2024 Notes, ~~the 2024 Notes Add-on,~~ the 2025 Notes and the 2027 Notes, we anticipate annual cash interest payments of approximately ~~$160~~$150 million and ~~$150~~$155 million during ~~2021~~2022 and ~~2022,~~2023, respectively.

As of April ~~4, 2021,~~3, 2022, we had approximately ~~$62.9~~$252.2 million of unrestricted cash and ~~$460.8~~$460.0 million available for borrowing under the Second Amended and Restated Revolving Loan. Our ability to borrow under the Second Amended and Restated Revolving Loan depends on compliance with certain conditions, including a maximum senior secured net leverage maintenance covenant, a minimum liquidity covenant and the absence of any material adverse change in our business or financial condition. If we were to become unable to borrow under the Second Amended and Restated Revolving Loan, and we failed to meet our projected results from operations significantly, we might be unable to pay in full our off-season obligations. A default under the Second Amended and Restated Revolving Loan could permit the lenders under the Second Amended and Restated Credit Facility to accelerate the obligations thereunder. The Second Amended and Restated Revolving Loan expires on April 17, 2024. The terms and availability of the Second Amended and Restated Credit Facility and other indebtedness are not affected by changes in the ratings issued by rating agencies in respect of our indebtedness. For a more detailed description of our indebtedness, see Note 3 to the unaudited condensed consolidated financial statements included in this Quarterly Report.

We regularly make capital investments for new rides and attractions in our parks. In addition, each year we make capital investments in the food, retail, games and other in-park areas to increase guest spending per capita. We also make

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annual enhancements to theming and landscaping of our parks in order to provide a more complete family-oriented entertainment experience; and invest in our information technology infrastructure to attain operational efficiencies. We regularly perform maintenance capital enhancements, with most expenditures made during the off-season. Repairs and maintenance costs for materials and services associated with maintaining assets, such as painting and inspecting existing rides, are expensed as incurred and are not included in capital expenditures.

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During the three months ended April ~~4, 2021,~~3, 2022, net cash used in operating activities was ~~$80.4~~$55.7 million compared to net cash used in operating activities of ~~$60.4~~$80.4 million for the three months ended ~~March 31, 2020.~~April 4, 2021. The ~~increase~~decrease in cash used in operating activities was due to ~~the decrease in operations during 2021 attributable to our reduction in operations~~increased net income due to the ~~COVID-19 pandemic.~~increase in attendance and per capita spending during the first quarter 2022 compared to the prior year period, which was negatively impacted by pandemic-related closures and restrictions. Net cash used in investing activities during the three months ended April 3, 2022 and April 4, 2021, ~~and March 31, 2020,~~ was ~~$23.1~~$29.0 million and ~~$51.4~~$23.1 million, respectively, consisting primarily of capital expenditures, net of property insurance recoveries. The ~~decrease~~increase was driven by ~~a reduction~~the delay in our capital budget in the prior year due to uncertainty surrounding the pandemic. Net cash provided by financing activities during the three months ended April 3, 2022 and April 4, 2021 was $0.1 million and $8.8 million, respectively, primarily due to the exercise of vested stock option activity. Net cash used in financing activities during the three months ended March 31, 2020 was $33.5 million, primarily attributable to the $50.5 million of the outstanding 2024 Notes principal we prepaid in March 2020 and the payment of $21.4 million in cash dividends, partially offset by the net proceeds from borrowings under the Second Amended and Restated Credit Facility and proceeds from the issuance of common stock.options.

Since our business is both seasonal in nature and involves significant levels of cash transactions, our net operating cash flows are largely driven by attendance and guest spending per capita levels. Most of our cash-based expenses are relatively fixed and do not vary significantly with either attendance or spending per capita assuming that the parks are ~~operational. During 2020, we had significant cash savings due~~operating in the normal course.

In February 2022, Russia invaded Ukraine. As military activity proceeds and sanctions, export controls and other measures are imposed against Russia, Belarus and specific areas of Ukraine, the war is increasingly affecting the global economy and financial markets, as well as exacerbating ongoing economic challenges, including rising inflation and global supply-chain disruption. We will continue to monitor the ~~suspension~~impacts of ~~park operations at~~the Russia-Ukraine war on macroeconomic conditions and continually assess the effect these matters may have on consumer demand, our ~~properties. These cash-based operating expenses include salaries~~suppliers’ ability to deliver products, cybersecurity risks and ~~wages, employee benefits, advertising, third party services, repairs~~our liquidity and ~~maintenance, utilities and insurance.~~access to capital.

Contractual Obligations

Since ~~December 31, 2020,~~January 2, 2022, there have been no material changes to ~~the~~our contractual obligations ~~of the Company~~ outside the ordinary course of ~~the Company’s~~our business.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As of April ~~4, 2021,~~3, 2022, there were no material changes in our market risk exposure from that disclosed in the ~~2020~~2021 Annual Report.

ITEM 4. CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation, as of April ~~4, 2021,~~3, 2022, of the effectiveness of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) or 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Based on this evaluation, our Chief Executive Officer and our Interim Chief Financial Officer concluded that, as of the end of such period, our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting, as such term is defined under Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act, that occurred during our fiscal quarter ended April ~~4, 2021~~3, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The nature of the industry in which we operate tends to expose us to claims by guests, generally for injuries. Accordingly, we are party to various legal actions arising in the normal course of business. Historically, the great majority of these claims have been minor. Although we believe that we are adequately insured against guests’ claims, if

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we become subject to damages that cannot by law be insured against, such as punitive damages or certain intentional misconduct by employees, there may be a material adverse effect on our operations.

For information regarding legal proceedings, see Note 15, Commitments and Contingencies, to the consolidated financial statements in the ~~2020~~2021 Annual Report, and Note 6, Commitments and Contingencies, to the unaudited condensed consolidated financial statements in this Quarterly Report.

ITEM 1A. RISK FACTORS

There have been no material changes to the principal risks that we believe are material to our business, results of operations and financial condition, from the risk factors ~~previously~~ disclosed in the ~~2020~~2021 Annual Report. For a discussion of these risk ~~facts,~~factors, please see “Item 1A. Risk Factors” contained in the ~~2020~~2021 Annual Report.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

No stock repurchases were made during the three months ended April 3, 2022. On March 30, 2017, Holdings announced that its Board of Directors approved a stock repurchase plan that permits Holdings to repurchase an incremental $500.0 million in shares of Holdings’ common stock (the "March 2017 Stock Repurchase Plan"). ~~No repurchases were made under the March 2017 Stock Repurchase Plan during the three months ended April 4, 2021.~~ As of ~~April 23, 2021,~~May 9, 2022, Holdings had repurchased 4,607,000 shares at a cumulative cost of approximately $268.3 million and an average cost per share of $58.25 under the March 2017 Stock Repurchase Plan, leaving approximately $231.7 million available for permitted repurchases.

In connection with the recent amendments to the Second Amended and Restated Credit Facility, weHoldings agreed to suspend the repurchase of ~~Holdings’~~its common stock and payment of dividends until the earlier of December 31, 2022, or such time as SFTP reduces the incremental revolving credit commitments of $131 million and begins using actual results to test compliance with the senior secured leverage ratio financial maintenance ~~covenant compliance.~~covenant.

~~ITEM 5. OTHER INFORMATION~~

On April 1, 2021, Holdings filed with the office of the Secretary of State of the State of Delaware a Certificate of Elimination (the “Certificate of Elimination”), which, effective upon filing, eliminated from Holdings’ Restated Certificate of Incorporation, as amended, all matters set forth in Holdings’ Certificate of Designations of Series B Junior Preferred Stock, as filed with the Secretary of State of the State of Delaware on March 31, 2020. The 200,000 shares of preferred stock previously designated as Series B Junior Preferred Stock were eliminated and returned to the status of authorized but unissued shares of preferred stock, without designation. The Certificate of Elimination is attached as Exhibit 3.3 to this Quarterly Report on Form 10-Q.

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ITEM 6. EXHIBITS


Exhibit ~~3.1~~	~~Restated Certificate of Incorporation, as amended—incorporated by reference to Exhibit 3.1 to Registrant's Quarterly Report on Form 10-Q (File No. 001-13703) filed on April 30, 2020~~

~~Exhibit 3.2~~	~~Amended and Restated Bylaws of Six Flags Entertainment Corporation—incorporated by reference to Exhibit 3.1 to Registrant's Current Report on Form 8-K (File No. 001-13703) filed on February 7, 2018~~

~~Exhibit 3.3~~	Certificate of Elimination of Series B Junior Preferred Stock of Six Flags Entertainment Corporation, as filed with the Secretary of State of the State of Delaware on April 1, 2021—incorporated by reference to Exhibit 3.1 to Registrant’s Registration Statement on Form 8-A/A (File No. 001-13703) filed on April 1, 2021

~~Exhibit~~ 10.1†*	Form of ~~Restricted Stock Unit Agreement Pursuant to the Six Flags Entertainment Corporation Long-Term Incentive Plan~~

Exhibit 10.2†*	~~Form of~~ Performance ~~Restricted~~ Stock Unit Agreement Pursuant to the Six Flags Entertainment Corporation Long-Term Incentive Plan

Exhibit 31.1*	Certification of Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 31.2*	Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32.1*	Certification of Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Exhibit 32.2*	Certification of Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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Exhibit 101*	The following financial statements and footnotes from the Company’s Quarterly Report on Form 10-Q for the quarter ended April ~~4, 2021~~3, 2022 formatted in Inline XBRL: (i) the Unaudited Condensed Consolidated Balance Sheets, (ii) the Unaudited Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Stockholders’ Deficit, (v) the Unaudited Condensed Consolidated Statements of Cash Flow, and (vi) related Notes to the Condensed Consolidated Financial Statements.

Exhibit 104*	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended April ~~4, 2021,~~3, 2022, formatted in Inline XBRL.

* Filed herewith


†	Management contract or compensatory plan

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		SIX FLAGS ENTERTAINMENT CORPORATION
		(Registrant)

Date:	~~April 28, 2021~~May 12, 2022	/s/ ~~Michael Spanos~~Selim Bassoul
		~~Michael Spanos~~Selim Bassoul
		President and Chief Executive Officer

Date:	~~April 28, 2021~~May 12, 2022	/s/ ~~Sandeep Reddy~~Stephen Purtell
		~~Sandeep Reddy~~Stephen Purtell
		~~Executive~~Senior Vice President and Interim Chief Financial Officer

4332


(Amounts in thousands)	Asset Derivatives
		April 4, 2021		December 31, 2020		March 31, 2020
	Balance Sheet Classifications	Fair Value		Fair Value		Fair Value
Derivatives not designated as hedging instruments under ASC 815
Interest rate contracts	Other current assets		403		877		—
Interest rate contracts	Other long-term liabilities		(157)		585		—
Total derivatives not designated as hedging instruments under ASC 815		$	246	$	1,462	$	—

Total asset derivatives		$	246	$	1,462	$	—


(Amounts in thousands)	Liability Derivatives
		April 4, 2021		December 31, 2020		March 31, 2020
	Balance Sheet Classifications	Fair Value		Fair Value		Fair Value
Derivatives designated as hedging instruments under ASC 815
Interest rate contracts	Other accrued liabilities		(5,139)		(5,251)		(7,689)
Interest rate contracts	Other long-term liabilities		(6,495)		(11,633)		(22,795)
Total derivatives designated as hedging instruments under ASC 815		$	(11,634)	$	(16,884)	$	(30,484)

Derivatives not designated as hedging instruments under ASC 815
Interest rate contracts	Other current assets	$	398	$	—	$	—
Interest rate contracts	Other accrued liabilities		(4,797)		(4,875)		—
Interest rate contracts	Other long-term liabilities		(7,353)		(9,032)		—
Total derivatives not designated as hedging instruments under ASC 815		$	(11,752)	$	(13,907)	$	—

Total liability derivatives		$	(23,386)	$	(30,791)	$	(30,484)


(Amounts in thousands)	As of April 4, 2021
	Finance Leases		Operating Leases
Remaining in 2021	$	398	$	21,685
2022		767		22,417
2023		769		21,955
2024		502		20,206
2025		24		18,127
Thereafter		—		259,490
Total	$	2,460	$	363,880
Less: present value discount		(161)		(165,270)
Lease liability	$	2,299	$	198,610