Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 03, 2022 | May 09, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Apr. 3, 2022 | |
Entity Registrant Name | Six Flags Entertainment Corporation | |
Entity File Number | 1-13703 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3995059 | |
Entity Address, Address Line One | 1000 Ballpark Way Suite 400, | |
Entity Address, City or Town | Arlington | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76011 | |
City Area Code | 972 | |
Local Phone Number | 595-5000 | |
Title of 12(b) Security | Common stock, $0.025 par value per share | |
Trading Symbol | SIX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 86,443,033 | |
Entity Central Index Key | 0000701374 | |
Current Fiscal Year End Date | --01-01 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 | Apr. 04, 2021 |
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, $260 and $243 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 |
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 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 | Apr. 04, 2021 |
Condensed Consolidated Balance Sheets | |||
Accumulated amortization of intangible assets | $ 266 | $ 261 | $ 244 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 | $ 0.025 |
Common stock, shares authorized (in shares) | 280,000,000 | 280,000,000 | 280,000,000 |
Common stock, shares issued (in shares) | 86,248,545 | 86,162,879 | 85,369,434 |
Common stock, shares outstanding (in shares) | 86,248,545 | 86,162,879 | 85,369,434 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
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 |
Loss (gain) 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 (in shares) | 86,197 | 85,209 |
Weighted-average common shares outstanding - diluted (in shares) | 86,197 | 85,209 |
Net loss per average common share outstanding - basic (in dollars per share) | $ (0.76) | $ (1.12) |
Net loss per average common share outstanding - diluted (in dollars per share) | $ (0.76) | $ (1.12) |
Park admissions | ||
Total revenues | $ 72,987 | $ 44,334 |
Park food, merchandise and other | ||
Total revenues | 54,269 | 31,224 |
Sponsorship, international agreements and accommodations | ||
Total revenues | $ 10,851 | $ 6,466 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Condensed Consolidated Statements of Operations | ||
Stock-based compensation | $ 4,225 | $ 6,637 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2022 | Apr. 04, 2021 | ||
Condensed Consolidated Statements of Comprehensive Loss | |||
Net loss | $ (65,662) | $ (95,839) | |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation adjustment (1) | [1] | (4,085) | (1,973) |
Defined benefit retirement plan (2) | [2] | 171 | 255 |
Change in cash flow hedging (3) | [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 $1.3 million for the three months ended April 3, 2022 and April 4, 2021, respectively. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Condensed Consolidated Statements of Comprehensive Loss | ||
Foreign currency translation adjustment, tax expense (benefit) | $ (1.1) | $ (0.4) |
Defined benefit retirement plan, tax expense (benefit) | 0.1 | 0.1 |
Change in cash flow hedging, tax expense (benefit) | $ 3.1 | $ 1.3 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands | Common stock | Capital in excess of par value | Accumulated deficit | Accumulated Other Comprehensive Loss | Total |
Beginning balance at Dec. 31, 2020 | $ 2,126 | $ 1,089,199 | $ (2,153,368) | $ (96,504) | $ (1,158,547) |
Beginning balance (in shares) at Dec. 31, 2020 | 85,075,901 | ||||
Increase (Decrease) in Equity (Deficit) | |||||
Issuance of common stock | $ 8 | 9,071 | 9,079 | ||
Issuance of common stock (in shares) | 293,597 | ||||
Stock-based compensation | 6,637 | 6,637 | |||
Employee stock purchase plan | (3) | (3) | |||
Employee stock purchase plan (in shares) | (64) | ||||
Net loss attributable to Six Flags Entertainment Corporation | (95,839) | (95,839) | |||
Net other comprehensive income (loss), net of tax | 2,209 | 2,209 | |||
Ending balance at Apr. 04, 2021 | $ 2,134 | 1,104,904 | (2,249,207) | (94,295) | (1,236,464) |
Ending balance (in shares) at Apr. 04, 2021 | 85,369,434 | ||||
Beginning balance at Jan. 02, 2022 | $ 2,154 | 1,120,084 | (2,023,251) | (81,187) | (982,200) |
Beginning balance (in shares) at Jan. 02, 2022 | 86,162,879 | ||||
Increase (Decrease) in Equity (Deficit) | |||||
Issuance of common stock | $ 2 | 297 | 299 | ||
Issuance of common stock (in shares) | 87,702 | ||||
Stock-based compensation | 4,225 | 4,225 | |||
Payment of tax withholdings on equity-based compensation through shares withheld | (3) | (3) | |||
Payment of tax withholdings on equity-based compensation through shares withheld (in shares) | (2,036) | ||||
Net loss attributable to Six Flags Entertainment Corporation | (65,662) | (65,662) | |||
Net other comprehensive income (loss), net of tax | 5,565 | 5,565 | |||
Ending balance at Apr. 03, 2022 | $ 2,156 | $ 1,124,603 | $ (2,088,913) | $ (75,622) | $ (1,037,776) |
Ending balance (in shares) at Apr. 03, 2022 | 86,248,545 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
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 | |
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 | |
Stock repurchases | (201) | (76) | |
Reduction in finance lease liability | (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 | $ 157,760 |
Cash and cash equivalents at end of period | 252,203 | 62,905 | $ 335,585 |
Supplemental cash flow information | |||
Cash paid for interest | 52,157 | 63,937 | |
Cash paid for income taxes | $ 885 | $ 268 |
General - Basis of Presentation
General - Basis of Presentation | 3 Months Ended |
Apr. 03, 2022 | |
General - Basis of Presentation | |
General - Basis of Presentation | 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 3, 2022, 24 parks are located in the United States, two are located in Mexico and one is located in Montreal, Canada. 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. The 2021 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 3, 2022, are not indicative of the results expected for the full year. Our operations are highly seasonal, with approximately 75% of park attendance and revenues in a typical year occurring in the second and third calendar quarters of each year, with the most significant period falling between Memorial Day and Labor Day. COVID-19 Pandemic The COVID-19 pandemic continues to present material uncertainty and risk with respect to our performance and financial results. Significant government and private sector actions have been taken since 2020 and likely will continue to be taken intended to control the spread and mitigate the 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, travel and government activities and functions. On the other hand, infection rates and regulations continue to fluctuate in various regions and there are ongoing global impacts resulting from the 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 are currently unknown. The pandemic has impacted the Company and could materially impact our financial results in the 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," and together with SFOT, the "Partnership Parks") as subsidiaries in our unaudited condensed consolidated financial statements, as we have determined that we have the 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. b. Income Taxes We recorded a valuation allowance of $107.8 million, $107.4 million and $129.4 million as of April 3, 2022, January 2, 2022 and April 4, 2021, 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. 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, we had no recorded amounts for accrued interest or penalties. 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 3, 2022, the fair value of the single reporting unit exceeded our carrying amount. We have one reporting unit at the same level for which Holdings common stock is traded and we believe our market capitalization is the best indicator of our reporting unit’s fair value. At April 3, 2022, we did not identify any triggering events that 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. As of April 3, 2022, we did not identify any triggering events that would require a full quantitative analysis. e. Earnings Per Common Share We incurred a net loss for the three months ended April 3, 2022 and April 4, 2021, 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 2,744,000 and 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, respectively. 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. Periodically, we will grant performance stock units to key employees. These awards vest on attainment of specific objectives most often related to Adjusted EBITDA or recognized revenue over a defined period. During the three months ended April 3, 2022, it was determined that our March 8, 2021 grant was probable of achievement at the threshold level and stock compensation expense was recognized totaling $0.9 million. During the three months ended April 3, 2022 and April 4, 2021, stock-based compensation expense consisted of the following: Three Months Ended (Amounts in thousands) April 3, 2022 April 4, 2021 Long-Term Incentive Plan $ 4,150 $ 6,562 Employee Stock Purchase Plan 75 75 Total Stock-Based Compensation $ 4,225 $ 6,637 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 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, we have recorded an allowance for doubtful accounts of $5.7 million, $13.8 million and $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. h. Recently Adopted Accounting Pronouncements 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”) 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 |
Revenue
Revenue | 3 Months Ended |
Apr. 03, 2022 | |
Revenue | |
Revenue | 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. The following tables present our revenues disaggregated by contract duration for the three months ended April 3, 2022 and April 4, 2021, 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 3, 2022 Sponsorship, Park Food, International Merchandise Agreements and (Amounts in thousands) Park Admissions and Other Accommodations Consolidated Long-term contracts $ 3,951 $ 782 $ 6,528 $ 11,261 Short-term contracts and other (a) 69,036 53,487 4,323 126,846 Total revenues $ 72,987 $ 54,269 $ 10,851 $ 138,107 Three Months Ended April 4, 2021 Sponsorship, Park Food, International Merchandise Agreements and (Amounts in thousands) Park Admissions and Other Accommodations Consolidated Long-term contracts $ 7,010 $ 997 $ 4,163 $ 12,170 Short-term contracts and other (a) 37,324 30,227 2,303 69,854 Total revenues $ 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. 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 three 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. At January 2, 2022, $58.7 million of unearned revenue associated with outstanding long-term contracts was reported in "Deferred revenue," of which $12.2 million was recognized as revenue for long-term contracts during the three months ended April 3, 2022. As of April 3, 2022, the total unearned amount of revenue for remaining long-term contract performance obligations 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. As of April 3, 2022, we expect to recognize estimated revenue for partially or wholly unsatisfied performance obligations on long-term contracts of approximately $75.9 million in the remainder of 2022 , $8.7 million in 2023 , $1.9 million in 2024 , $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. 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". 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. |
Long-Term Indebtedness
Long-Term Indebtedness | 3 Months Ended |
Apr. 03, 2022 | |
Long-Term Indebtedness | |
Long-Term Indebtedness | 3. Long-Term Indebtedness Credit Facility As of April 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 of April 3, 2022, January 2, 2022 and April 4, 2021, we had no 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 $20.2 million, respectively). 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 3, 2022, the Second Amended and Restated Revolving Loan unused commitment fee was 0.625%. The Second Amended and Restated Revolving Loan will mature on April 17, 2024. As of April 3, 2022, January 2, 2022 and April 4, 2021, $479.0 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 three separate interest rate swap agreements with a notional amount of $300.0 million (the “June 2019 Swap Agreements”) two 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 on the Second Amended and Restated Term Loan B by exchanging the floating LIBOR rate for a negotiated fixed rate. Swap Agreements. The June 2019 Swap Agreements expire in June 2023. 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 issued $725.0 million of 7.00% senior secured notes due 2025 (the “2025 Notes”). As of October 3, 2021, $949.5 million of the 2024 Notes, $725.0 million of the 2025 Notes, and $500.0 million of the 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 $13.8 million for the 2027 Notes are due semi-annually on April 15 and October 15 of each year. Long-Term Indebtedness Summary As of April 3, 2022, January 2, 2022 and April 4, 2021, the principal balance of our long-term debt consisted of the following: As of (Amounts in thousands) April 3, 2022 January 2, 2022 April 4, 2021 Second Amended and Restated Term Loan B $ 479,000 $ 479,000 $ 479,000 2024 Notes 949,490 949,490 949,490 2025 Notes 725,000 725,000 725,000 2027 Notes 500,000 500,000 500,000 Net discount (2,972) (3,249) (4,080) Deferred financing costs (19,272) (20,717) (25,049) Total long-term debt $ 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, the fair value of our long-term debt was $2,660.5 million, $2,703.5 million and $2,700.5 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 03, 2022 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | 4. Accumulated Other Comprehensive Loss Changes in the composition of Accumulated Other Comprehensive Loss ("AOCI") during the three months ended April 3, 2022, were as follows: 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 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Apr. 03, 2022 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 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, respectively, consisted of the following: Derivative Assets (Amounts in thousands) April 3, 2022 January 2, 2022 April 4, 2021 Derivatives Not Designated as Hedging Instruments Interest Rate Swap Agreements — other current assets — — 801 Interest Rate Swap Agreements — other non-current assets 3,996 — — $ 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, respectively, consisted of the following: Derivative Liabilities (Amounts in thousands) April 3, 2022 January 2, 2022 April 4, 2021 Derivatives Designated as Cash Flow Hedges 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 — other accrued liabilities (4,250) (4,012) (4,797) Interest rate swap agreements — other long-term liabilities (7,512) (4,581) (7,510) $ (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 3, 2022. 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: Gain (Loss) (Loss) Gain Reclassified from Recognized in AOCL AOCL into Operations (Amounts in thousands) 2022 2021 2022 2021 Interest Rate Swap Agreements $ 11,540 $ 3,883 $ (1,117) $ (1,361) Total $ 11,540 $ 3,883 $ (1,117) $ (1,361) As of April 3, 2022, we expect to reclassify net losses of $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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 03, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 6. Commitments and Contingencies Partnership Parks We have guaranteed the obligations of the general partners of those partnerships to (i) make minimum annual distributions (including rent) of approximately $80.5 million in 2022 (subject to cost of living adjustments) to the limited partners in the Partnership Parks (based on our ownership of units as of April 3, 2022, our share of the distribution will be approximately $35.8 million) and (ii) make minimum capital expenditures at each of the Partnership Parks during rolling five-year periods, based generally on 6.0% of the Partnership Parks’ revenues. Pursuant to the 2022 annual offer to purchase limited partnership units 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 in March 2020, which would have caused the value of the 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 3, 2022, is $409.7 million in the case of SFOG and $527.4 million in the case of SFOT. As of April 3, 2022, we owned approximately 31.5% and 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. We incurred $25.5 million of capital expenditures at the Partnership Parks during the 2021 season and intend to incur approximately $19.8 million of capital expenditures at these parks for the 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 generated approximately $73.8 million of cash in 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, we had total loans receivable outstanding of $288.3 million 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. 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. The majority of our current insurance policies expire on December 31, 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 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 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 future. Securities Class Action Lawsuits In February 2020, two 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 two cases were consolidated in an action captioned Electrical Workers Pension Fund Local 103 I.B.E.W. v. Six Flags Entertainment Corp., et al. 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 denying plaintiffs’ motion for leave to file a supplemental brief. Plaintiffs’ appeal is captioned Oklahoma Firefighters Pension & Ret. Sys. v. Six Flags Ent. Corp., et al. 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. 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, two additional stockholder derivative lawsuits, making 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 three of these putative derivative actions moved to consolidate the three 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 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. Plaintiffs’ time to appeal the judgment dismissing this action in its entirety and with prejudice and denying leave to 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 by putative stockholder Mr. Cliff Bragdon in an action captioned Bragdon v. Reid-Anderson, et al. (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 was 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, which motion was so ordered on September 27, 2020. The consolidated action is now captioned In re Six Flags Ent. Corp. 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 Wage and Hour Class Action Lawsuits 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. In September 2021, the parties entered into a settlement agreement to resolve the lawsuit, for an immaterial amount, and the court granted preliminary approval 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. The complaint alleges violations of California law governing payment of wages, wage statements, 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 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. In October 2021, the parties entered into a settlement agreement to resolve the lawsuit, for an immaterial amount, and the court granted preliminary approval on April 5, 2022. On February 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. 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. 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 intend to defend this litigation vigorously. The outcome of this litigation is currently not determinable and we cannot reasonably estimate any loss or range of loss that may arise from these matters in excess of the amount that we have recorded for this litigation, which amount is not material to our consolidated financial statements. |
Business Segments
Business Segments | 3 Months Ended |
Apr. 03, 2022 | |
Business Segments | |
Business Segments | 7. Business Segments We have only one reportable segment – parks. All of our owned or managed parks are located in the United States with the exception of two parks in Mexico and one 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: As of (Amounts in thousands) April 3, 2022 January 2, 2022 April 4, 2021 Domestic $ 2,321,053 $ 2,324,420 $ 2,312,048 Foreign 114,556 117,066 131,207 Total 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: 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 Revenues $ 78,673 $ 3,351 $ 82,024 Loss before income taxes (121,192) (6,517) (127,709) |
Pension Benefits
Pension Benefits | 3 Months Ended |
Apr. 03, 2022 | |
Pension Benefits | |
Pension Benefits | 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, respectively: Three Months Ended (Amounts in thousands) April 3, 2022 April 4, 2021 Service cost $ 300 $ 275 Interest cost 1,384 1,275 Expected return on plan assets (3,059) (3,069) Amortization of net actuarial loss 229 340 Total net periodic benefit $ (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 April 3, 2022 April 4, 2021 Discount rate 2.60 % 2.20 Rate of compensation increase N/A N/A Expected return on plan assets 5.75 % 5.75 Employer Contributions We did not make any pension contributions during the three month period ended April 3, 2022 or April 4, 2021. |
Stock Repurchase Plans
Stock Repurchase Plans | 3 Months Ended |
Apr. 03, 2022 | |
Stock Repurchase Plans | |
Stock Repurchase Plans | 9. Stock Repurchase Plans 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 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 stock repurchases is limited by the covenants in the Second Amended and Restated Credit Facility, the 2024 Notes, the 2025 Notes and the 2027 Notes. In April 2020 and August 2020, in connection with amendments to the Second Amended and Restated Credit Facility, we suspended 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. 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 engage in stock repurchases for a longer duration. |
General - Basis of Presentati_2
General - Basis of Presentation (Policies) | 3 Months Ended |
Apr. 03, 2022 | |
General - Basis of Presentation | |
Consolidated U.S. GAAP Presentation | 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," and together with SFOT, the "Partnership Parks") as subsidiaries in our unaudited condensed consolidated financial statements, as we have determined that we have the 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. |
Income Taxes | b. Income Taxes We recorded a valuation allowance of $107.8 million, $107.4 million and $129.4 million as of April 3, 2022, January 2, 2022 and April 4, 2021, 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. 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, we had no recorded amounts for accrued interest or penalties. |
Goodwill and Intangibles | 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 3, 2022, the fair value of the single reporting unit exceeded our carrying amount. We have one reporting unit at the same level for which Holdings common stock is traded and we believe our market capitalization is the best indicator of our reporting unit’s fair value. At April 3, 2022, we did not identify any triggering events that would require a full quantitative analysis to be performed. |
Long-Lived Assets | 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. As of April 3, 2022, we did not identify any triggering events that would require a full quantitative analysis. |
Earnings Per Common Share | e. Earnings Per Common Share We incurred a net loss for the three months ended April 3, 2022 and April 4, 2021, 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 2,744,000 and 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, respectively. |
Stock Benefit Plans | 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. Periodically, we will grant performance stock units to key employees. These awards vest on attainment of specific objectives most often related to Adjusted EBITDA or recognized revenue over a defined period. During the three months ended April 3, 2022, it was determined that our March 8, 2021 grant was probable of achievement at the threshold level and stock compensation expense was recognized totaling $0.9 million. During the three months ended April 3, 2022 and April 4, 2021, stock-based compensation expense consisted of the following: Three Months Ended (Amounts in thousands) April 3, 2022 April 4, 2021 Long-Term Incentive Plan $ 4,150 $ 6,562 Employee Stock Purchase Plan 75 75 Total Stock-Based Compensation $ 4,225 $ 6,637 |
Accounts Receivable, Net | 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 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, we have recorded an allowance for doubtful accounts of $5.7 million, $13.8 million and $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. |
Recently Adopted Accounting Pronouncements | h. Recently Adopted Accounting Pronouncements 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”) |
Recent Accounting Pronouncements Not Yet Adopted | 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 |
General - Basis of Presentati_3
General - Basis of Presentation (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
General - Basis of Presentation | |
Schedule of stock-based compensation expense | Three Months Ended (Amounts in thousands) April 3, 2022 April 4, 2021 Long-Term Incentive Plan $ 4,150 $ 6,562 Employee Stock Purchase Plan 75 75 Total Stock-Based Compensation $ 4,225 $ 6,637 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Revenue | |
Schedule of revenues disaggregated by contract duration | The following tables present our revenues disaggregated by contract duration for the three months ended April 3, 2022 and April 4, 2021, 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 3, 2022 Sponsorship, Park Food, International Merchandise Agreements and (Amounts in thousands) Park Admissions and Other Accommodations Consolidated Long-term contracts $ 3,951 $ 782 $ 6,528 $ 11,261 Short-term contracts and other (a) 69,036 53,487 4,323 126,846 Total revenues $ 72,987 $ 54,269 $ 10,851 $ 138,107 Three Months Ended April 4, 2021 Sponsorship, Park Food, International Merchandise Agreements and (Amounts in thousands) Park Admissions and Other Accommodations Consolidated Long-term contracts $ 7,010 $ 997 $ 4,163 $ 12,170 Short-term contracts and other (a) 37,324 30,227 2,303 69,854 Total revenues $ 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 Indebtedness (Tables)
Long-Term Indebtedness (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Long-Term Indebtedness | |
Schedule of long-term debt | As of April 3, 2022, January 2, 2022 and April 4, 2021, the principal balance of our long-term debt consisted of the following: As of (Amounts in thousands) April 3, 2022 January 2, 2022 April 4, 2021 Second Amended and Restated Term Loan B $ 479,000 $ 479,000 $ 479,000 2024 Notes 949,490 949,490 949,490 2025 Notes 725,000 725,000 725,000 2027 Notes 500,000 500,000 500,000 Net discount (2,972) (3,249) (4,080) Deferred financing costs (19,272) (20,717) (25,049) Total long-term debt $ 2,631,246 $ 2,629,524 $ 2,624,361 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Accumulated Other Comprehensive Loss. | |
Schedule of components of AOCI | Changes in the composition of Accumulated Other Comprehensive Loss ("AOCI") during the three months ended April 3, 2022, were as follows: 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) |
Schedule of reclassifications out of accumulated other comprehensive income (loss) | 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 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Derivative Financial Instruments | |
Schedule of derivative assets at fair value | Derivative Assets (Amounts in thousands) April 3, 2022 January 2, 2022 April 4, 2021 Derivatives Not Designated as Hedging Instruments Interest Rate Swap Agreements — other current assets — — 801 Interest Rate Swap Agreements — other non-current assets 3,996 — — $ 3,996 $ — $ 801 |
Schedule of derivative liabilities at fair value | Derivative Liabilities (Amounts in thousands) April 3, 2022 January 2, 2022 April 4, 2021 Derivatives Designated as Cash Flow Hedges 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 — other accrued liabilities (4,250) (4,012) (4,797) Interest rate swap agreements — other long-term liabilities (7,512) (4,581) (7,510) $ (11,762) $ (13,625) $ (23,941) |
Schedule of gains and losses before taxes on derivatives designated as cash flow hedges | Gain (Loss) (Loss) Gain Reclassified from Recognized in AOCL AOCL into Operations (Amounts in thousands) 2022 2021 2022 2021 Interest Rate Swap Agreements $ 11,540 $ 3,883 $ (1,117) $ (1,361) Total $ 11,540 $ 3,883 $ (1,117) $ (1,361) |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Business Segments | |
Schedule of information reflecting long-lived assets, revenues and income (loss) before income taxes by domestic and foreign categories | 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: As of (Amounts in thousands) April 3, 2022 January 2, 2022 April 4, 2021 Domestic $ 2,321,053 $ 2,324,420 $ 2,312,048 Foreign 114,556 117,066 131,207 Total 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: 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 Revenues $ 78,673 $ 3,351 $ 82,024 Loss before income taxes (121,192) (6,517) (127,709) |
Pension Benefits (Tables)
Pension Benefits (Tables) | 3 Months Ended |
Apr. 03, 2022 | |
Pension Benefits | |
Summary of pension costs | Three Months Ended (Amounts in thousands) April 3, 2022 April 4, 2021 Service cost $ 300 $ 275 Interest cost 1,384 1,275 Expected return on plan assets (3,059) (3,069) Amortization of net actuarial loss 229 340 Total net periodic benefit $ (1,146) $ (1,179) |
Schedule of weighted average assumptions used to determine benefit obligations and net cost | Weighted-Average Assumptions Used To Determine Net Cost Three Months Ended April 3, 2022 April 4, 2021 Discount rate 2.60 % 2.20 Rate of compensation increase N/A N/A Expected return on plan assets 5.75 % 5.75 |
General - Basis of Presentati_4
General - Basis of Presentation (Details) | 3 Months Ended | |||
Apr. 03, 2022USD ($)itemshares | Apr. 04, 2021USD ($)itemshares | Jan. 02, 2022USD ($) | Apr. 30, 2020USD ($) | |
Summary of Significant Accounting Policies | ||||
Number of parks owned or operated | item | 27 | |||
Number of reporting units | item | 1 | |||
Number of additional days | $ | 3 | |||
Number of additional guests | item | 89,000 | |||
Percentage of park attendance and revenues | 75.00% | |||
COVID 19 Considerations | ||||
Antidilutive stock options excluded from computation of diluted shares outstanding (in shares) | shares | 2,744,000 | 6,199,000 | ||
Valuation allowance | $ | $ 107,800,000 | $ 129,400,000 | $ 107,400,000 | |
Accrued interest and penalties, income taxes | $ | 0 | 0 | 0 | |
Allowance for doubtful accounts | $ | 5,700,000 | $ 8,500,000 | $ 13,800,000 | |
Second Amended and Restated Revolving Loan | ||||
COVID 19 Considerations | ||||
Maximum borrowing capacity | $ | $ 481,000,000 | |||
Six Flags Theme Parks Inc. | 2025 Notes | ||||
COVID 19 Considerations | ||||
Debt instrument, face amount | $ | $ 725,000,000 | |||
Interest rate, stated percentage | 7.00% | |||
United States | ||||
Summary of Significant Accounting Policies | ||||
Number of parks owned or operated | item | 24 | |||
Mexico | ||||
Summary of Significant Accounting Policies | ||||
Number of parks owned or operated | item | 2 | |||
Canada | ||||
Summary of Significant Accounting Policies | ||||
Number of parks owned or operated | item | 1 |
General - Basis of Presentati_5
General - Basis of Presentation - Stock Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Stock Benefit Plans | ||
Stock-based compensation | $ 4,225 | $ 6,637 |
Payment of cash dividends | 14 | 201 |
Dividend Equivalent Rights | ||
Stock Benefit Plans | ||
Payment of cash dividends | 200 | 200 |
Long Term Incentive Plan | ||
Stock Benefit Plans | ||
Stock-based compensation | 4,150 | 6,562 |
Employee Stock Purchase Plan | ||
Stock Benefit Plans | ||
Stock-based compensation | 75 | $ 75 |
Employee Stock Purchase Plan | Performance awards | ||
Stock Benefit Plans | ||
Stock-based compensation | $ 900 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) $ in Thousands | 3 Months Ended | |||
Apr. 03, 2022USD ($)item | Apr. 04, 2021USD ($) | Jan. 02, 2022USD ($) | Jan. 01, 2021USD ($) | |
Revenue | ||||
Revenues | $ 138,107 | $ 82,024 | ||
Number of distinct obligations within international agreements | item | 3 | |||
Long-term contracts | ||||
Revenue | ||||
Revenues | $ 11,261 | 12,170 | ||
Contract with customer, liability | $ 58,700 | $ 77,600 | ||
Contract with customer, liability, revenue recognized | 12,200 | 8,400 | ||
Short-term contracts and other | ||||
Revenue | ||||
Revenues | 126,846 | 69,854 | ||
Park admissions | ||||
Revenue | ||||
Revenues | 72,987 | 44,334 | ||
Park admissions | Long-term contracts | ||||
Revenue | ||||
Revenues | 3,951 | 7,010 | ||
Park admissions | Short-term contracts and other | ||||
Revenue | ||||
Revenues | 69,036 | 37,324 | ||
Park food, merchandise and other | ||||
Revenue | ||||
Revenues | 54,269 | 31,224 | ||
Park food, merchandise and other | Long-term contracts | ||||
Revenue | ||||
Revenues | 782 | 997 | ||
Park food, merchandise and other | Short-term contracts and other | ||||
Revenue | ||||
Revenues | 53,487 | 30,227 | ||
Sponsorship, international agreements and accommodations | ||||
Revenue | ||||
Revenues | 10,851 | 6,466 | ||
Sponsorship, international agreements and accommodations | Long-term contracts | ||||
Revenue | ||||
Revenues | 6,528 | 4,163 | ||
Sponsorship, international agreements and accommodations | Short-term contracts and other | ||||
Revenue | ||||
Revenues | $ 4,323 | $ 2,303 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) - Long-term contracts - USD ($) $ in Millions | Apr. 03, 2022 | Apr. 04, 2021 |
Revenue | ||
Performance obligation | $ 59 | $ 86.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-04 | ||
Revenue | ||
Performance obligation | $ 75.9 | |
Expected timing of satisfaction, period | 9 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-02 | ||
Revenue | ||
Performance obligation | $ 8.7 | |
Expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue | ||
Performance obligation | $ 1.9 | |
Expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue | ||
Performance obligation | $ 0.1 | |
Expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | ||
Revenue | ||
Performance obligation | $ 0.2 | |
Expected timing of satisfaction, period | 1 year |
Long-Term Indebtedness - Additi
Long-Term Indebtedness - Additional Information (Details) $ in Thousands | Oct. 03, 2021USD ($) | Apr. 03, 2022USD ($) | Jan. 02, 2022USD ($) | Apr. 04, 2021USD ($) | Apr. 30, 2020USD ($) | Aug. 31, 2019USD ($)agreement | Jun. 30, 2019USD ($)agreement | Apr. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Estimate of Fair Value Measurement | |||||||||
Summary of Long-term debt | |||||||||
Long-term debt, fair value | $ 2,660,500 | $ 2,703,500 | $ 2,700,500 | ||||||
Unmodified June 2019 Swap Agreements | |||||||||
Summary of Long-term debt | |||||||||
Number of agreements | agreement | 3 | ||||||||
Notional amount | $ 300,000 | ||||||||
August 2019 Swap Agreements | |||||||||
Summary of Long-term debt | |||||||||
Number of agreements | agreement | 2 | ||||||||
Notional amount | $ 400,000 | ||||||||
Second Amended and Restated Revolving Loan | |||||||||
Summary of Long-term debt | |||||||||
Maximum borrowing capacity | 481,000 | ||||||||
Long-term line of credit | 0 | 0 | 0 | ||||||
Letters of credit outstanding, amount | $ 21,000 | 20,200 | 20,200 | ||||||
Commitment fee percentage | 0.625% | ||||||||
Second Amended and Restated Term Loan B | |||||||||
Summary of Long-term debt | |||||||||
Maximum borrowing capacity | $ 479,000 | ||||||||
Long-term debt | $ 479,000 | 479,000 | 479,000 | ||||||
Interest rate, stated percentage | 2.21% | ||||||||
Second Amended and Restated Term Loan B | LIBOR | |||||||||
Summary of Long-term debt | |||||||||
Basis spread on variable rate | 1.75% | ||||||||
Senior Unsecured 2024 Notes | |||||||||
Summary of Long-term debt | |||||||||
Long-term debt | $ 949,500 | $ 949,490 | 949,490 | 949,490 | |||||
Debt instrument, face amount | $ 700,000 | $ 300,000 | |||||||
Interest rate, stated percentage | 4.875% | ||||||||
Periodic payment of interest | 23,100 | ||||||||
2025 Notes | |||||||||
Summary of Long-term debt | |||||||||
Long-term debt | 725,000 | 725,000 | 725,000 | 725,000 | |||||
Periodic payment of interest | 25,400 | ||||||||
2025 Notes | Six Flags Theme Parks Inc. | |||||||||
Summary of Long-term debt | |||||||||
Debt instrument, face amount | $ 725,000 | ||||||||
Interest rate, stated percentage | 7.00% | ||||||||
Senior Unsecured 2027 Notes | |||||||||
Summary of Long-term debt | |||||||||
Long-term debt | 500,000 | $ 500,000 | $ 500,000 | $ 500,000 | |||||
Debt instrument, face amount | $ 500,000 | ||||||||
Interest rate, stated percentage | 5.50% | ||||||||
Periodic payment of interest | $ 13,800 |
Long-Term Indebtedness - Schedu
Long-Term Indebtedness - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Apr. 03, 2022 | Jan. 02, 2022 | Oct. 03, 2021 | Apr. 04, 2021 |
Summary of Long-term debt | ||||
Net discount | $ (2,972) | $ (3,249) | $ (4,080) | |
Deferred financing costs | (19,272) | (20,717) | (25,049) | |
Total long-term debt | 2,631,246 | 2,629,524 | 2,624,361 | |
Second Amended and Restated Term Loan B | ||||
Summary of Long-term debt | ||||
Long-term debt | 479,000 | 479,000 | 479,000 | |
Senior Unsecured 2024 Notes | ||||
Summary of Long-term debt | ||||
Long-term debt | 949,490 | 949,490 | $ 949,500 | 949,490 |
2025 Notes | ||||
Summary of Long-term debt | ||||
Long-term debt | 725,000 | 725,000 | 725,000 | 725,000 |
Senior Unsecured 2027 Notes | ||||
Summary of Long-term debt | ||||
Long-term debt | $ 500,000 | $ 500,000 | $ 500,000 | $ 500,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Accumulated other comprehensive loss, net of tax | ||
Beginning balance | $ (982,200) | $ (1,158,547) |
Ending balance | (1,037,776) | (1,236,464) |
Cumulative Translation Adjustment | ||
Accumulated other comprehensive loss, net of tax | ||
Beginning balance | (31,970) | |
Net current period change | (5,171) | |
Ending balance | (37,141) | |
Cash Flow Hedges | ||
Accumulated other comprehensive loss, net of tax | ||
Beginning balance | (4,985) | |
Net current period change | 11,540 | |
Amounts reclassified from AOCI | 1,117 | |
Ending balance | 7,672 | |
Defined Benefit Plans | ||
Accumulated other comprehensive loss, net of tax | ||
Beginning balance | (44,093) | |
Amounts reclassified from AOCI | 229 | |
Ending balance | (43,864) | |
Income Taxes | ||
Accumulated other comprehensive loss, net of tax | ||
Beginning balance | (139) | |
Net current period change | (1,812) | |
Amounts reclassified from AOCI | (338) | |
Ending balance | (2,289) | |
Accumulated Other Comprehensive Loss | ||
Accumulated other comprehensive loss, net of tax | ||
Beginning balance | (81,187) | (96,504) |
Net current period change | 4,557 | |
Amounts reclassified from AOCI | 1,008 | |
Ending balance | $ (75,622) | $ (94,295) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassification out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Reclassifications out of accumulated other comprehensive income (loss): | ||
Interest expense | $ 37,857 | $ 38,460 |
Income tax (benefit) expense | (19,113) | (31,870) |
Net of tax | (65,662) | (95,839) |
Reclassification out of Accumulated Other Comprehensive Income. | ||
Reclassifications out of accumulated other comprehensive income (loss): | ||
Total reclassifications | 1,008 | 1,274 |
Reclassification out of Accumulated Other Comprehensive Income. | Amortization of loss on interest rate hedge | ||
Reclassifications out of accumulated other comprehensive income (loss): | ||
Interest expense | 1,117 | 1,361 |
Income tax (benefit) expense | (281) | (342) |
Net of tax | 836 | 1,019 |
Reclassification out of Accumulated Other Comprehensive Income. | Amortization of deferred actuarial loss and prior service cost | ||
Reclassifications out of accumulated other comprehensive income (loss): | ||
Operating expenses | 229 | 340 |
Income tax (benefit) expense | (57) | (85) |
Net of tax | $ 172 | $ 255 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Derivative Instruments Recorded at Fair Values (Details) - USD ($) $ in Thousands | Mar. 24, 2022 | Apr. 03, 2022 | Apr. 04, 2021 | Jan. 02, 2022 | |
Derivative Financial Instruments | |||||
Settlement amount included in AOCI | [1] | $ 9,479 | $ 3,927 | ||
Interest Rate Swap | |||||
Derivative Financial Instruments | |||||
Derivative assets | 3,996 | 801 | |||
Derivative liabilities | (11,762) | (23,941) | $ (13,625) | ||
Derivatives Designated as Cash Flow Hedges | Interest Rate Swap | |||||
Derivative Financial Instruments | |||||
Derivatives - Current | (5,139) | (3,986) | |||
Derivatives - Non-current | (6,495) | (1,046) | |||
Net cash proceeds | $ 7,400 | ||||
Derivatives Designated as Cash Flow Hedges | Interest Rate Swap | Amended And Restated Term Loan B | |||||
Derivative Financial Instruments | |||||
Settlement amount included in AOCI | $ 7,700 | ||||
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap | |||||
Derivative Financial Instruments | |||||
Derivatives - Current | 801 | ||||
Derivatives - Non-current | 3,996 | ||||
Derivatives - Current | (4,250) | (4,797) | (4,012) | ||
Derivatives - Non-current | $ (7,512) | $ (7,510) | $ (4,581) | ||
[1] | Change in cash flow hedging is presented net of tax expense of $3.1 million and $1.3 million for the three months ended April 3, 2022 and April 4, 2021, respectively. |
Derivative Financial Instrume_4
Derivative Financial Instruments - Gains and Losses before Taxes on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Derivative Financial Instruments | ||
Loss to be reclassified from AOCI to operations during the next twelve months | $ 3,300 | |
Derivatives Designated as Cash Flow Hedges | ||
Derivative Financial Instruments | ||
Gain (Loss) Recognized in AOCL | 11,540 | $ 3,883 |
(Loss) Gain Reclassified from AOCL into Operations | (1,117) | (1,361) |
Derivatives Designated as Cash Flow Hedges | Interest Rate Swap | ||
Derivative Financial Instruments | ||
Gain (Loss) Recognized in AOCL | 11,540 | 3,883 |
(Loss) Gain Reclassified from AOCL into Operations | (1,117) | $ (1,361) |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Financial Instruments | ||
Loss recognized in Interest Expense | $ 100 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Apr. 08, 2020claim | Mar. 02, 2020claim | May 31, 2022USD ($)shares | Apr. 30, 2020lawsuit | Feb. 29, 2020claim | Apr. 03, 2022USD ($)multiple | Apr. 04, 2021USD ($) | Jan. 02, 2022USD ($) |
Details of commitments and contingencies | ||||||||
Redemption value of noncontrolling interests | $ 522,100 | |||||||
Additions to property and equipment | 32,071 | $ 23,133 | ||||||
Redeemable noncontrolling interests | 522,067 | 523,376 | $ 522,067 | |||||
Securities Class Action Lawsuits | Pending Litigation | ||||||||
Details of commitments and contingencies | ||||||||
Number of claims filed | claim | 2 | 2 | ||||||
Stockholder Derivative Lawsuits | Pending Litigation | ||||||||
Details of commitments and contingencies | ||||||||
Number of claims filed | lawsuit | 2 | |||||||
Number of claims consolidated | claim | 3 | |||||||
Partnerships That Own Partnership Parks | ||||||||
Details of commitments and contingencies | ||||||||
Total loans receivable | $ 288,300 | $ 288,300 | 288,300 | |||||
Six Flags over Georgia | ||||||||
Details of commitments and contingencies | ||||||||
Remaining redeemable units (as a percent) | 68.50% | |||||||
Limited partner interests owned (as a percent) | 31.50% | |||||||
Six Flags over Texas | ||||||||
Details of commitments and contingencies | ||||||||
Remaining redeemable units (as a percent) | 46.00% | |||||||
Limited partner interests owned (as a percent) | 54.00% | |||||||
Six Flags over Texas | Subsequent Event | ||||||||
Details of commitments and contingencies | ||||||||
Units purchased in partnership parks (in units) | shares | 0.2536 | |||||||
Purchase price of partnership units | $ 600 | |||||||
Six Flags over Texas and Georgia | ||||||||
Details of commitments and contingencies | ||||||||
Annual distributions by general partners to limited partners in partnership parks | $ 80,500 | |||||||
Share of Partnership Parks' annual distributions paid to Six Flags Entertainment Corporation | $ 35,800 | |||||||
Rolling period for making minimum capital expenditure at each of the Partnership Parks | 5 years | |||||||
Percentage of capital expenditures to Partnership Parks' revenues | 6.00% | |||||||
Weighted average period of the park's EBITDA for calculation of value of purchase price | 4 years | |||||||
Additions to property and equipment | $ 19,800 | 25,500 | ||||||
Cash generated from operating activities by partnerships, after deduction of capital expenditures and excluding the impact of short-term intercompany advances | $ 73,800 | |||||||
Six Flags over Georgia | ||||||||
Details of commitments and contingencies | ||||||||
Specified multiple for purchase price valuation (in multipliers) | multiple | 8 | |||||||
Specified price for purchase of partnership parks | $ 409,700 | |||||||
Redeemable noncontrolling interests | $ 280,200 | |||||||
Six Flags over Texas | ||||||||
Details of commitments and contingencies | ||||||||
Specified multiple for purchase price valuation (in multipliers) | multiple | 8.5 | |||||||
Specified price for purchase of partnership parks | $ 527,400 | |||||||
Redeemable noncontrolling interests | $ 241,900 |
Business Segments - Information
Business Segments - Information by Geographic Region (Details) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2022USD ($)itemsegment | Apr. 04, 2021USD ($) | Jan. 02, 2022USD ($) | |
Business segment information by geographical areas | |||
Number of reportable segments | segment | 1 | ||
Number of parks owned or operated | item | 27 | ||
Goodwill and long-lived assets | $ 2,435,609 | $ 2,443,255 | $ 2,441,486 |
Revenues | 138,107 | 82,024 | |
Loss before income taxes | $ (84,775) | (127,709) | |
Mexico | |||
Business segment information by geographical areas | |||
Number of parks owned or operated | item | 2 | ||
Canada | |||
Business segment information by geographical areas | |||
Number of parks owned or operated | item | 1 | ||
Domestic | |||
Business segment information by geographical areas | |||
Goodwill and long-lived assets | $ 2,321,053 | 2,312,048 | 2,324,420 |
Revenues | 125,903 | 78,673 | |
Loss before income taxes | (83,048) | (121,192) | |
Foreign | |||
Business segment information by geographical areas | |||
Goodwill and long-lived assets | 114,556 | 131,207 | $ 117,066 |
Revenues | 12,204 | 3,351 | |
Loss before income taxes | $ (1,727) | $ (6,517) |
Pension Benefits (Details)
Pension Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2022 | Apr. 04, 2021 | |
Net periodic benefit cost: | ||
Service cost | $ 300 | $ 275 |
Interest cost | 1,384 | 1,275 |
Expected return on plan assets | (3,059) | (3,069) |
Amortization of net actuarial loss | 229 | 340 |
Total net periodic benefit | $ (1,146) | $ (1,179) |
Weighted-Average Assumptions Used To Determine Net Cost | ||
Discount rate | 2.60% | 2.20% |
Expected return on plan assets | 5.75% | 5.75% |
Employer contributions | $ 0 | $ 0 |
Stock Repurchase Plans (Details
Stock Repurchase Plans (Details) - March 2017 Stock Repurchase Plan - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Apr. 03, 2022 | Aug. 31, 2020 | Mar. 30, 2017 | |
Stock Repurchase Plans | |||
Amount authorized of shares to be repurchased under Stock Repurchase Program | $ 500 | ||
Total number of shares purchased (in shares) | 4,607,000 | ||
Value of shares repurchased | $ 268.3 | ||
Shares acquired, average cost (in dollars per share) | $ 58.25 | ||
Permitted dollar value of repurchases remaining | $ 231.7 | ||
Amount of reduction in incremental revolving credit commitments required to allow repurchase of common stock | $ 131 |